Distributed via Email: December 12, 2007

EDUCATION PROVISIONS IN GAMING BILL;
FUNDING, SCHOOL ACCOUNTABILITY INCLUDED

House Speaker Michael Madigan this week offered his proposal for an expansion of gaming in the state. And though the gaming receipts are to be used primarily for statewide infrastructure and capital projects, no construction details are included. However, there are provisions contained within the legislation that allow for new gaming revenues to be used for education operations and new "school accountability" provisions as well – including additional financial reporting for school districts and mandatory training for school board members. The proposal was filed as HB 4194 (Lang-Molaro); a 460-page bill that is scheduled for a committee hearing in the House of Representatives on Monday.

Because of the size of the document, it takes a couple of minutes to download the file.

The House of Representatives has scheduled session for Monday, Dec. 17, at 5 p.m. HB 4194 is set for a hearing in the House Gaming Committee that Monday at noon in Room 114 of the State Capitol. The Senate has yet to announce any session dates for next week.

The Alliance opposes the bill as currently drafted. Further modifications to the bill are anticipated. School board members, superintendents, principals, and school business officials are urged to review the language of the bill and contact your State Representative with any concerns or comments that you have. This is especially important if your State Representative sits on the Gaming Committee. The members of the Gaming Committee can be found at: http://www.ilga.gov/house/committees/members.asp?CommitteeID=402&GA=95

GAMING PROVISIONS

The bill expands gaming in the state by adding an 11^th riverboat casino license – allowing the State to establish two more riverboats by awarding the 10^th and 11^th licenses (the 10^th license has never been issued). The bill is silent on the possible locations of the two new riverboats. It also authorizes a land-based casino in the city of Chicago. The bill also allows existing riverboats to increase the number of their gaming positions and allows horse race tracks to offer electronic gaming devices (slot machines).

EDUCATION FUNDING (page 54 of the bill)

The bill will allocate 30% of the gaming receipts (up to an estimated $400 million) to public education. 70% of the education portion of the funding would be used for school construction; 30% for school operations. All school operations money would be placed in the newly created "Focusing On Children, Uplifting Schools" (FOCUS) Fund.

Twenty percent of the FOCUS funds would be allocated for Chicago Public Schools. Of the other 80% of these funds: 50% would be divided per capita to "depressed" school districts (those with the lowest 30% of "available local resources"); 30% of the dollars must be distributed through the School Safety and Educational Improvement Block Grant; and 20% would be earmarked for "fast growth districts". All FOCUS Fund money must be spent in three areas: reducing class size, reading and math specialists, and school counselors.

SCHOOL ACCOUNTABILITY (page 123 of the bill)

The bill includes "school accountability" language taken liberally from the plan offered by the Metropolitan Mayors' Caucus with some modifications suggested by the School Management Alliance. The bill:

• establishes criteria to address financial mismanagement in public school districts;
• allows for a Financial Oversight Panel for school districts in financial mismanagement difficulties as well as in financial difficulties;
• requires school districts to use a competitive request for proposal process in selecting auditors for the annual audit and adds to provisions to the annual audit;
• allows for the Regional Office of Education to investigate complaints of school board member or district employee misconduct;
• allows for the Regional Superintendent to remove school board members from office in cases of "negligent" failure to perform duties;
• prohibits school district employees or district general counsel to have a personal interest in school district financial arrangements;
• requires school boards to adopt a formal financial policy;
• requires school boards to develop a long-term financial plan and a 5-year capital improvement plan;
• requires school districts to include a "user-friendly" executive summary as part of the district's budget; and
• requires all school board members to complete at least 4 hours of training within one year of the effective date of this act or within one year after election to the board.

MANDATORY SCHOOL BOARD TRAINING

The Alliance opposes the provision that includes mandated training for school board members. We understand and appreciate the concern that school board members are custodians of large amounts of taxpayer funds. However, the same applies to other elected officials in the state: mayors, aldermen, county board members, park district board members, and legislators. It is patently unfair that such mandatory training would only apply to volunteer, unpaid, elected school board members. If fiscal training is beneficial to the state's taxpayers, all elected officials in Illinois should be required to take such training. Currently, school board members receive far more training and professional development than any other group of elected officials in the state.

The Alliance has offered alternative language to legislators that we believe will still meet their objective of continued professional development and training of school board members. The proposal raises a new expectation of training for school board members – a statutory provision that has never been in place before.

Please contact your State Representative and urge them to oppose the provision in HB 4194 that calls for mandatory training for elected school board members. Additional information and talking points on this issue can be found at: www.iasb.com/pdf/calltoaction.pdf

General Assembly Bill Text/Status

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