McConnaughay Reports

The end of session report from State Senator Karen McConnaughay:

Senator McConnaughay’s Legislative Update: July 1, 2016

Karen McConnaughayAfter months of bipartisan negotiations, schools will open on time, human service providers will receive state funds and government services will continue operating under an affordable and responsible short-term budget agreement approved by the General Assembly on June 30.

The agreement reached June 30 reflects a historic investment in education, ending the trend of ‘proration,’ or the deliberate cuts to school aid that we’ve seen for the last seven years. Importantly, no schools will receive less money than they did last year due to a “hold harmless” provision included in the proposal.

The bipartisan compromise also included $75 million for early childhood education and created a $250 million equity grant for the state’s most underprivileged school districts.

I am also happy to share that unlike former proposals pushed by the legislative majority earlier this spring, the agreement reached yesterday does not include a “bail out” of Chicago Public Schools (CPS). Instead, Chicago was given the power to raise property taxes as a way to help fund their school system.

Schools throughout Illinois, including our local schools, have managed their budgets.

They shouldn’t be on the hook for repairing the years of mismanagement and waste now plaguing CPS—particularly when Chicago hasn’t taken the same steps to increase revenue and improve efficiencies that have been adopted by other school districts and communities throughout Illinois.

This stop-gap budget gives Chicago the authority to raise property taxes, providing the failing school system a feasible way to address their serious fiscal crisis.

While my preferred path would have been a full-year budget accompanied by economy-boosting structural reforms to state government, this is a reasonable compromise that provides certainty and stability in many vital areas of state government. It became clear that my colleagues across the aisle were not going to meet us halfway on a full-year budget until after the November election.

What was signed into law is a responsible short-term plan that offers reassurance to those who rely on state funds.

The budget compromise will also fund many other areas of state government for the next six months, including higher education, human services, public safety, and critical state government operations, among others. More information can be found at my website.

I am proud to have been a part of the negotiation process that led to the approval of a responsible and affordable stop-gap budget. Ultimately, this compromise demonstrates that lawmakers from both parties can work with each other and Governor to put the needs of the state before their political agendas.

I hope that we can translate this small bipartisan victory into responsible, long-term solutions that will place Illinois back on the path to success.

As always, I hope you will contact me or my office with any questions or concerns you may have. You can also visit my legislative website at www.senatormcconnaughay.com.

Sincerely,

Karen McConnaughay
State Senator for the 33rd District

State construction program to continue as planned

The stop-gap budget signed into law June 30 means construction workers will stay on the job and transportation infrastructure improvement and maintenance projects will continue uninterrupted. Read more

Critical response, safety projects to protected by stop-gap budget

“This spending plan is good news for IEMA and our many local public safety partners,” said IEMA Director James K. Joseph. “We sincerely appreciate the efforts of the governor and the General Assembly in ensuring that these critical public safety programs can continue, and we look forward to passage of a balanced budget with structural reforms in the near future.” Read more


Comments

McConnaughay Reports — 7 Comments

  1. Clearly not any kind of a victory.

    Same old same old, kick the can down the road politics.

  2. Woodstock school district 200 has not ‘managed it’s budget’ it has simply raised the levy beyond all ability of more than half (median income) of its community can afford.

    In the process, they have destroyed home values.

    This is severe punishment to retirees or vets on fixed income.

    One mechanism the school board uses to evade tax rate caps set up by law to protect taxpayers:

    Deliberate overtaxation in transportation fund for express purpose of interfund transfer into tax-capped funds already levying maximum allowed by law.

    Governor Rauner could stop this obscene perversion of the school code law by vetoing he 5529.

  3. Susan, I don’t agree with you.

    Most of the “downstate” (101 counties)high real estate taxes are caused by inequities in the distribution of state aid.

    Our Constitution (Article X) provides that K-12 shall be free to the public and “the State has the primary responsibility for financing the system of public education.

    Clearly, the State has not met it’s obligation and that is
    through no fault of local school boards.

    Currently, State aid to “downstate” schools is in the neighborhood of 40% while the same aid to Cook county schools is about 60%.

    On top of this, Cook County assesses it’s residential real estate around 25% of fair market value whereas “downstate” counties assess at 33% of fair market value.

    A $400K house in Cook County will pay about $10,500 in real estate taxes, while the same home in any of the collar counties will pay around $15,000.

    2/3 or more of your local tax dollars go to education, so figure it out….the “downstate” counties are paying more than their fair share and despite annual lobbying efforts by all of our local school board people, the system won’t change until a majority of downstate legislators figure it out.

    Between the Democratic legislators from St. Claire, Peoria, Winnebago, Williamson and a few other counties figure out that their constituents are getting screwed and want to do something our local taxes will be sky high, IF we want to maintain the quality of education we currently have.

    Enough said, it is and has been a very real problem.

  4. Not all Cook County school districts receive 60% of their funding from state aid. My local K – 8 district, Lyons SD 103, only received 20.8% of total revenues from state sources last year, while over 70% came from local (meaning property tax) sources.

    And this is a district in a working and lower middle class area where ISBE considers 80% of the students to be low income, with approximately 38% falling into either ESL or disabled categories.

    We’re also being harmed by that giant sucking sound that is CPS.

    Thanks to articles here – which we’ve shared on our local FB pages – many of our taxpayers are now better informed about HB 5529 and the bootscoot around tax caps…

    And these folks are also contacting our Governor to ask for a veto on that.

    Hopefully we will prevail.

  5. Woodstock D200 has created a 4.6% property tax rate in Woodstock.

    This 4.6% property tax rate will be maintained or escalated, according to D200’s own 3 year projection in its budget book.

    The average property tax rate in America is 1.4%.
    California and Indiana have property tax rates capped at 1%.

    To maintain a 4.6% property tax rate is unconscionable.
    Children of households paying over 12% of household income in property tax alone are losing their opportunity for college funds.

    And for what?

    Administrative bonuses, and an OEPP 30% higher than neighboring unit school district.

    And the reason the board CAN spend tax money with such savage indifference to the survival of over half the community is that Illinois politicians crafted a loophole to bypass statutory taxpayer protections.

  6. Here is how ISBE calculates GSA (general state aid) to each school:

    Foundation level ($6119) minus local resources per pupil times number of pupils.

    Local resources per pupil = property wealth plus CPPRT revenue

    Property wealth= EAV multiplied by assumed statutory tax rate

    As we can see, EAV is a major determining factor. Artificial diminution of true EAV means more GSA.

    TIFs create ZERO EAV.

    City of Chicago 2016 budget: $4.5 billion property tax revenue for 2014 tax year. $393.5 million TIF revenue;
    That implies that 8.74% of Chicago EAV is in TIF and therefore NOT included when calculating GSA.

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