Distributed via Email: March 31, 2009

PROPERTY TAX CAP RELIEF FOR SCHOOLS

PLEASE CALL NOW as these bills will be called for a vote in the next couple of days.

SB 2126 (Viverito, D-Burbank) and HB 2502 (Turner, D-Chicago) would create a Consumer Price Index (CPI) "floor" for calculating the extension limitation under the Property Tax Extension Limitation Law (PTELL). The bills provide that the extension limitation under PTELL may be no less than 2 percent, even if the CPI dips well below this level as it has currently.

Please contact your senator and representative and ask for their YES VOTE. Remind them that it is especially important to support this bill because schools are facing skyrocketing costs and a growth factor of less than 1 percent. CPI for next year’s extension limitation will only be 0.1 percent which will severely limit the ability of school leaders to meet the costs of providing public education in their districts. The average CPI from 1994-2009 has been 2.82 percent and in no year (before 2009) has the figure dipped below 1.6 percent.

Schools incur additional costs to operate the school just in opening the school doors each year. Automatic cost increases of 2-4 percent annually occur in teacher salary schedules; retirement benefit costs increase from 8-15 percent yearly; and increases in health care costs can range from 6-8 percent, all causing school districts to look to local resources to meet obligations. In addition, under funded mandated programs such as special education, new unfunded mandates passed on by the State and Federal governments, and increasing transportation costs further exacerbate school district budget problems.

As the State of Illinois provides less than 40 percent of the statewide cost to fund public schools, school districts must rely on local property taxes for revenue. These legislative proposals will give school districts much needed stability to meet the costs of providing safe facilities and effective educational programs to students.

Below are talking points you are urged to share with your senator and representative:

• Share, in real numbers, the financial impact of a 0.1% CPI limitation on your local property tax dollars
• Discuss the automatic increases your school district faces when you open the doors in August and any other expenses that are beyond "belt tightening" but would disrupt educational programs
• Share the impact of the cuts you would be required to make in personnel and programming

You can find the phone numbers of your legislators on the General Assembly website at: www.ilga.gov. Click on "Members", scroll down and click on your legislator’s name.

Additionally, the other organizations belonging to the Illinois Statewide School Management Alliance also support this legislation. If you have relationships with the leaders of these organizations please also contact them and ask them to call their representative and senator.

Metro Counties	IL Association of Wastewater Agencies
IL Library Association	Large Unit District Association (LUDA)
Ed-Red	Will County Governmental League
Legislative Education Network of DuPage (LEND)	South Cooperative Organization for Public Education (SCOPE)
IL Fire Chiefs Association	IL Association of Park Districts
IL Federation of Teachers (IFT)	IL Education Association (IEA)
IL Municipal League	IL Association of Fire Protection Districts

*The legislative report is written and edited by the lobbyists of the Illinois Association of School Boards to provide information to the members of the organizations that comprise the Statewide School Management Alliance.

General Assembly Bill Text/Status

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