Two proposals to shift funding for pensions would mean big losses for District 54

Three amendments to House Bill 3637 that were filed on Friday, May 11, call for utilizing money from the Corporate Personal Property Replacement Tax to help fund public pensions – specifically the Teachers’ Retirement System (TRS).  District 54 strongly opposes this strategy. Because CPPRT funds are distributed to school districts and other units of local government, reductions in CPPRT will impact our state and local sources of funding. If House Bill 3637 were to become law, it would mean a loss of $2 million annually for School District 54.

Last year, CPPRT funds were used to fund salaries and operations of the Regional Offices of Education. At that time, concerns were expressed that this would open the door to tapping these funds in the future for other expenses that the State has responsibility for paying. This is exactly what is happening.

Another proposal being discussed by legislators calls for increasing the employer share of pension contributions from 0.58% to 7.6%. Again, this puts additional burden on the school districts and local taxpayers. This change would cost our district about $7 million.

District 54 is aware of the need for pension reform for the solvency of the pension systems and for the health of the state. However, taking money from another fund already providing resources for local government units or increasing the contributions required by the school districts is shifting responsibility to local taxpayers for State obligations that have not been met. This does not represent true reform of the pension system.

For more information, see the letter sent to local legislators by our Board of Education or contact Sherry Douglas.

Proposal to further restrict taxing authority remains a concern for School District 54

While Senate Bill 2073 does not appear to be moving forward, the same proposal to restrict the taxing authority of public bodies that are subject to the property tax cap law is now included in Senate Bill 2862. The deadline for committee action on this bill is May 11. As was the case with other bills containing this proposal, School District 54 opposes such action.

School District 54 is one of many public entities subject to the Property Tax Extension Limitation Law (PTELL). Currently, this tax cap law limits the annual increase that taxing bodies can receive to a maximum of 5% or the Consumer Price Index (CPI). The legislation under consideration would limit taxing districts to zero revenue growth if property values are declining overall. School District 54 would face a loss of approximately $2.3 million of tax revenue just for the current year. Each tax levy is based on the previous year’s levy as a percent increase. Therefore, a reduction for one year is permanent, continuous and compounding.

School District 54 is not advocating changing the current tax cap law.  However, we do oppose further restricting levy increases beyond what current law requires.

This same proposal was previously presented in House Bill 3793 and in Senate Bill 2073. For more information on the reasons for our opposition to this proposal, click here.

District 54 opposes new amendment to Senate Bill 2073

Legislation to further restrict the taxing authority of public bodies that are subject to the property tax cap law – as School District 54 is – has been sent to the Illinois Senate for consideration. It was quickly introduced and passed in the Illinois House of Representatives over the past several days. This legislation is Senate Bill 2073, Amendment #6. School District 54 strongly opposes passage of this bill and encourages our constituents to voice opposition as well.

Currently, the tax cap law – called the Property Tax Extension Limitation Law (PTELL) – limits the annual increase that taxing bodies can receive to a maximum of 5% or the Consumer Price Index (CPI). Senate Bill 2073, Amendment #6, would reduce the cap to zero percent if the equalized assessed value (EAV) of all taxable property in a taxing district for the current year is less than the previous year’s levy. The exception to this limit would be if voters approve an increase via a referendum.  Passing this law would cause School District 54 to face a loss of approximately $2.3 million of tax revenue this year.

The tax cap law in its present form provides protection for taxpayers because increases in the levy are tied to the Consumer Price Index (CPI).  The average CPI since its inception is 2.4%. For the 2011 tax year, the CPI is just 1.5%.  School District 54 is not advocating changing current law.  However, we do oppose further restricting levy increases beyond what current law requires.

In November there was legislation (House Bill 3793) which contained the same proposal. The bill was defeated but the identical proposal has now been added to another bill as an amendment. For more details on the reasons for our opposition to Senate Bill 2073, Amendment #6, click here.

ESEA/NCLB Flexibility Waiver request to be submitted

As a result of discussion at the Illinois State Board of Education (ISBE) board meeting today, Illinois will submit its application for a waiver for flexibiity from certain provisions of the No Child Left Behind Act.  The overarching goal of Illinois’ proposal is to cut in half the achievement gaps and the percent of students not making progress and to accomplish this over the next six years. The entire proposal is available on the ISBE website.  For the executive summary, click here.

Public comments on Illinois’ ESEA/NCLB Flexibility Waiver request due by 5 p.m. on Feb. 17

At a meeting held in School District 54 on February 15, five representatives from the Illinois State Board of Education (ISBE) presented information about the application that ISBE has prepared requesting flexibility from certain components of the Elementary and Secondary Education Act (ESEA), currently known as the No Child Left Behind Act (NCLB). Public stakeholder meetings have been held over the past several months to share information about the flexibility waiver being requested and to gather feedback from school administrators and staff, as well as from parent and community members.

ISBE is accepting comments until 5 p.m. on Friday, February 17, 2012. Comments and questions may be emailed to nclbwaiver@isbe.net.

ISBE plans to submit the waiver request to the U.S. Department of Education on Tuesday, February 21, 2012.

For more complete information, visit the ISBE website.

Public meeting on NCLB flexibility waiver request to be held in District 54 on Feb. 15

As the Illinois State Board of Education (ISBE) is continuing to prepare the state’s application for a waiver from some of the requirements of the No Child Left Behind Act (NCLB), public meetings for stakeholders are being held around the state. ISBE and the Illinois PTA are working together to provide some of these meetings, one of which will be held in School District 54.  The meeting is scheduled for Wednesday, February 15, at Addams Junior High School, 700 S. Springinsguth Road, Schaumburg.  The program begins at 7 p.m.  To reserve a space, please visit the Illinois PTA website http://www.illinoispta.org/ and complete the registration form. Please see the meeting invitation available here for more information.

Illinois plans to seek NCLB waiver

In September, President Obama announced a plan that would provide flexibility on certain requirements of the No Child Left Behind Act (NCLB).  Although Congress has been discussing reauthorization or changes to this federal law for quite some time, resolution of the issue is not imminent. In the meantime, the Administration is providing an opportunity for some regulatory relief.

Individual states  may apply for a waiver if the state adopts certain reforms the federal administration has identified. Eleven states submitted requests for waivers in November, which was the first opportunity to do so. A second opportunity exists for states to submit requests in early 2012.  Illinois intends to submit its request then and is currently developing its proposal.  Illinois State Board of Education Chairman Gery Chico and State Superintendent Chris Koch co-authored a letter explaining Illinois’ position. To read that letter, click here.

In preparing the proposal that will be submitted, ISBE  has been gathering feedback from around the state and welcomes further input. More information about the waiver process is available on the ISBE website.

Congress continues work on NCLB/ESEA

Each branch of the U.S. Congress has bills under consideration that would address the federal education law commonly referred to as  No Child Left Behind (NCLB). This is the latest version of the Elementary and Secondary Education Act (ESEA), a law that was due for reauthorization in 2007 but has been delayed for a variety of reasons.

The House of Representatives is approaching revision to the law in component parts. Three bills have been acted on in the House Committtee on Education and the Workforce; one having passed the House floor to date. These bills focus on  financial support for charter schools (the bill that passed the House); elimination of specific programs that have been unfunded or underfunded; and flexibility related to moving funds between particular federal programs.

The Senate Health, Education, Labor and Pensions Committee passed a more comprehensive bill that would make substantial changes to NCLB. It would eliminate the current accountability system that requires schools and districts to make Adequate Yearly Progress (AYP) and replace it with a system that relates to student academic growth. It would also focus on improvement in the schools that are in a state’s lowest 5 percent in terms of student performance. Many amendments will likely be introduced when this bill is considered on the Senate floor – some to loosen and some to tighten certain federal requirements.

After the House and the Senate each pass their bills, a committee will be convened to address the differences in the bills and come up with compromise legislation that will be presented to each chamber for final approval.

For more information about NCLB, click here.

Governor’s reduction in funding for student transportation reimbursement stands

The Illinois General Assembly met for the Fall Veto Session on six days in late October and early November.  Because certain state budget and taxation matters were not resolved, the House and Senate met on November 29 for an extended Veto Session.

One of the outstanding issues that School District 54 was monitoring was Governor Quinn’s budget cut affecting student transportation reimbursement. The Governor’s veto of that line item in the FY 2012 budget reflects a reduction of $89 million statewide. That funding was not restored.   This means the loss of revenue to School District 54 resulting from the Governor’s veto is $1.4 million.

Another issue of interest to District 54 is funding for the Regional Offices of Education. During the Veto Session, the General Assembly approved legislation that contains provisions for salaries for regional superintendents and assistant regional superintendents to be paid out of the Corporate Personal Property Replacement Tax (CPPRT) funds.  This applies to this current year – FY 2012 – only. A commission has been appointed to study and report on the services offered by the ROEs and how these might be delivered more efficiently.

House Bill 3793 defeated

House Bill 3793, which contained a proposal to further limit property tax increases, was defeated in a vote on the floor of the Illinois House of Representatives on Wednesday, November 9. The bill required 71 votes to pass out of the House and be sent to the Senate for consideration. The bill received 34 aye votes and 73 nay votes, with  5 legislators voting present.

Currently, the tax cap law – called the Property Tax Extension Limitation Law (PTELL) - limits the annual increase that taxing bodies can receive to a maximum of 5% or the Consumer Price Index (CPI). House Bill 3793 would have reduced the cap to zero percent if the equalized assessed value (EAV) of all taxable property in a taxing district for the current year is less than the previous year’s levy. The exception to this limit would be if voters approve an increase via a referendum.  Passing this law would have caused School District 54 to face a loss of approximately $2.3 million of tax revenue this year.

The tax cap law in its present form does provide protection for taxpayers and School District 54 is not advocating changing current law. The average CPI since its inception is 2.4%. For the 2011 tax year, the CPI is just 1.5%.  This year, School District 54 is proposing only a 1.2% increase in levy over last year’s rate. For more information on District 54′s proposed levy, click here.