Illinois lawmakers to weigh schools change during budget debate

Illinois Senate leaders are poised to add a contentious issue to their already complicated attempt to break the budget stalemate in Springfield as they turn their attention this week to changing the formula used to funnel state tax money to schools.

Senate President John Cullerton said Monday that his Democratic lawmakers would be briefed Tuesday on the schools plan as part of the broader, 12-bill package that Cullerton and Senate Republican leader Christine Radogno have been pushing as a way out of the state’s 19-month budget impasse.

An attempt to rework Illinois’ complex education funding system comes after a panel commissioned by Republican Gov. Bruce Rauner recommended last week boosting state funding for education by at least $3.5 billion over the next decade. The group also said the state should spend money on districts with a higher population of low-income students, and it offered a framework to create a new school funding system without offering a specific formula.

The education funding issue in Illinois is fraught with regional and political hurdles, and efforts to change it have fallen flat numerous times in recent years. Adding it to a broader attempt at breaking the budget stalemate is an ambitious move that could carry political risk.

Rauner’s education panel calls for $3.5B increase in school money over next decade Monique Garcia

A state panel charged with suggesting changes to how Illinois distributes money to local school districts agrees that more money should be spent on education but left questions about how it should be doled out in a report it issued Wednesday.

The Illinois School Funding Reform Commission called…

(Monique Garcia)

Cullerton, speaking to reporters after a City Club of Chicago speech, said he was aware of the politics surrounding the issue but said the legislation he plans to unveil to fellow senators has "got the principles that we need." Cullerton outlined a game plan in which the Senate would vote this week on its wide-ranging budget plans, which also include a state income tax increase, changes to Illinois’ workers’ compensation rules and a two-year freeze on property taxes, among other things.

Sen. Andy Manar, a Democrat from Bunker Hill who has long pushed for an education funding overhaul, said that while the schools portion of the package is still in flux, it is likely to mirror the commission’s suggestion that each school district should have its own specialized funding goal. That target would be set using criteria such as the number of children living in poverty and how much money is available from local property taxes, an acknowledgment that it often takes more resources to bring many children in those areas of the state up to speed than in wealthier areas.

But the legislation also would include a so-called hold harmless provision, which means districts wouldn’t receive less state money in the future than they do now, at least at the start. Just how much more money lawmakers would pump into the education system is still up for debate, but any increase likely would have to be phased in over time given the state’s deep budget problems.

CPS freezes some school spending on nonpersonnel items Juan Perez Jr.

Hundreds of Chicago Public Schools principals face a narrow window to trim expenses on textbooks and programs after the district announced a $46 million “spending freeze” in its latest bid to cover $215 million in state assistance that didn’t come through.

The measure forces principals to re-engineer…

(Juan Perez Jr.)

Any proposed education change adds to what already was expected to be a heavy lift as the Senate leaders try to muster enough votes to pass a dozen interconnected bills in order to break the historic budget stalemate. Even if senators approve, there’s no guarantee the plans would survive the House or be approved by Rauner.

Meanwhile, S&P Global Ratings published a report suggesting Illinois’ credit rating wouldn’t be fixed quickly, despite the potential for Senate action.

"Whether the bipartisan package or budget legislation recently unveiled in the Illinois State Senate will represent the beginning of a genuine fiscal recovery remains to be seen," the agency said in a news release. "But an improvement in the state’s credit rating will not happen during the next two years."

CPS shortfall of $500 million from last year hangs over current budget woes Juan Perez Jr.

Chicago Public Schools faced a shortfall in its operations budget of roughly $500 million at the close of its past fiscal year, leaving the financially troubled district with a significant bill to cover even as it struggles to balance this year’s spending plan.

The budget shortfall was reported…

(Juan Perez Jr.)

The Senate budget package has acquired a slew of opponents, among them the Illinois Chamber of Commerce, which contends the legislation doesn’t do enough to reduce costs on businesses while also asking the same businesses to pay more in taxes. Asked on Monday if the business community would favor the Senate deal or continued state dysfunction with no spending plan at all, Chamber CEO Todd Maisch said it was a choice between "really bad scenarios."

"Nobody is enthusiastic about either one. But right now, if you tell me that employers will literally have to swallow a new tax on job creation, a new service tax, not having spending restraints, not having pro-growth job provisions, I would think they would say we need to go ahead and continue to wait," Maisch said. "But we greatly encourage legislators to make the fixes to the package that are needed so we can be in favor of a resolution that’s responsible, that’s desperately needed."

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