Failure of education referenda underscores need for school funding reform - Metropolitan Planning Council

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Failure of education referenda underscores need for school funding reform

Dependence on local property taxes denies students, schools resources

CONTACT: Bindu Batchu — 312.307.3162 (cell)
Scott Goldstein — 312.863.6003

The mixed statewide results of yesterday’s education referenda demonstrate two things funding reform advocates already knew: The positive is that voters really do believe education is a top priority, and those who can afford to are willing to use their wallets to prove it. The negative lesson is too many school districts are strapped by the state’s over-reliance on the property tax to fund education, and their financial situations have now gone from dire to worse.

“The number of victories is both surprising and encouraging," said Bindu Batchu, manager of Network 21: Quality Schools for Stronger Communities, a coalition of education, business, labor and civic organizations that share a common interest in reforming the way Illinois schools are funded.

“Clearly, voters are willing to make tough choices for the sake of education, and many are skeptical the state will fulfill its constitutional obligation to fund education. Now, it’s up to the governor and General Assembly to demonstrate they indeed have the will to ante up the state’s share,” she added.

Because of the way Illinois’ education finance system works, even some of the districts whose referenda won will not see the results soon enough to stave off painful cuts. In the case of Elgin’s U-46 — which sought to raise the current level of taxing authority from 37 to 75 cents — winning would only have generated about $12 million in revenue. Unfortunately, Elgin voters defeated the referendum 60 percent to 40 percent, leaving the district with no place else to turn — 1,000 pink slips to teachers have already gone out. Connie Neale, U-46 superintendent, said, “We have already been forced to lay off teachers, and we know our costs are only going to go up. Meanwhile, the state formula penalizes districts like ours, with growing enrollment, by delaying payments by a year. The only source we have to increase revenue is the property tax. Now, we have nothing to fall back on — there is no safety net.”

For the last four years, Carlinville CUSD 1 has been awarded the state's "Bright Star," which honors districts whose students' academic performance ranks in the upper one-third of all Illinois school districts, but whose expenditure per pupil is in the lower one-fourth. Still, a referendum calling for a 1.25 percent increase in the maximum annual education tax rate failed by more than 1280 votes. Superintendent Michael A. Collins said, “ Eighty-four percent of our students meet or exceed state standards. Yet, here we are, a successful district slowly being ripped apart by Illinois’ school funding system. Unless the State steps up to its responsibilities, we will be a shell of the school district we were. All of the positive things that we've done will be gone.”

“The rejection of referenda throughout the state in the last two elections — coupled with the research that shows voters strongly support adequately funded schools — make it crystal clear the school funding system in Illinois must be reformed,” said Dan Burkhalter, director-government relations, Illinois Education Association.

Other school districts with failing referenda include: Canton Union District 66 in Fulton County; Joliet Township High School District 204 in Will County; and O’Fallon CUSD 90 in St. Clair County.

Some of the districts where voters approved referenda include New Trier Township High School District 203 in Cook County; Pleasant Plains CUSD 8 in Sangamon, Morgan and Menard counties; and West Chicago Elementary School District 33 in DuPage County.

The upshot: The rejection of education referenda is a wake-up call to the governor and General Assembly to begin serious discussion of education funding reform proposals. Last October, the Education Funding Advisory Board (EFAB) filed a school funding report calling for increasing the minimum per student funding the State guarantees to school districts, reducing property taxes, and providing incentives for school district consolidation. The proposal to raise the minimum dollar amount the State guarantees for each pupil by more than $1,100 to at least $5,665 per student, a level researchers say is necessary to provide an adequate education, would increase State school funding by $1.8 billion.

Rep. Renee Kosel (R-New Lenox), Republican spokesperson on the House Elementary & Secondary Education Committee, said, “The voters have sent a message that the property tax system in no longer able to absorb the needs of K-12 education in many areas of the state. I believe this is due in part to the current state of the economy, but also to our heavy reliance on property taxes to fund our local schools. The Cook County system of property tax is especially flawed. As we explore alternatives and efficiencies in funding public education, we need to preserve our local control of our schools.”

Rep. Larry McKeon (D-Chicago) said the defeat of the referenda must signal an end to the failed policies of the past that have seen the State apply short-term solutions to the long-term problem of school funding. “The voters won't accept excuses for having under-funded schools. They will expect action and it is incumbent upon the members of the legislature to fix, once and for all, the Illinois school funding mess.”

More than one-third of Illinois’ 893 schools districts are facing serious financial difficulties, according to the Illinois State Board of Education’s (ISBE) 2002 Financial Profile. One hundred school districts are on the Financial Watch List — a roster of school districts facing the most severe financial problems — as compared to 11 school districts last year.

Ralph Martire, executive director, Center for Tax and Budget Accountability , said, “ These referenda failed because Illinois already relies too much on property taxes to fund schools and most taxpayers know it. They also know this over-reliance is unfair and has contributed to the huge equity gap in school funding. The only way Illinois can break the bond between the affluence of a community and the quality of public education is to decrease reliance on property taxes and use more state-based revenue.”

Network 21, a statewide coalition led by the Metropolitan Planning Council, launched an intensive statewide advocacy campaign in September of 2002 to reform public education funding, quality and accountability. Its top priorities are to ensure that education funding is sufficient to provide a quality education for every student in Illinois; s upport funding options that decrease reliance on local property taxes; support quality reforms that improve education outcomes for all children; and support policies that improve access and use of technology in all public schools.

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