The education funding
reform bill which passed the House and Senate in May and was finally
sent to Gov. Bruce Rauner’s desk in July was the product of four years
of research, endless listening tours and lots of hard bargaining.
The
House Democrats changed some things at the last minute to benefit
Chicago and the governor didn’t like it, but his own education czar
claimed the governor still approved of “90 percent” of the legislation.
However,
when Gov. Rauner issued his amendatory veto of Senate Bill 1 last week,
he introduced a bunch of new ideas that had never been on the table,
including during endless discussions among members of his own education
funding reform commission.
These
new ideas are poisoning the already putrid Statehouse water and are
prompting some folks to suspect that the governor’s new top staffers
from the Illinois Policy Institute are attempting to sabotage the bill.
The
far-right group is on record opposing the whole idea of the
“evidence-based” school funding formula contained in the Democrats’ SB1
and endorsed by the governor’s funding reform commission and by
Republicans in both legislative chambers. Could some of those same
people who are now running Rauner’s office be out to kill off the
progress made over the years?
Historically
in Illinois, the best way to keep suburban and Downstate Republicans
from voting for a bill is to label it a “Chicago bailout.” Gov. Rauner
and the Illinois Policy Institute have done so repeatedly with SB1, even
though Politifact has rated the claim “false” and the almost always
pro- Rauner Chicago Tribune editorial board has stated it is not a bailout.
Gov.
Rauner’s amendatory veto would change the way school districts
currently calculate how much property tax revenue they can no longer
capture after other local governments create Tax Increment Financing
districts. Existing state law recognizes the reality that the school
districts won’t receive that money, but the governor’s proposal would
order the State Board of Education to ignore that reality.
Doing
that would put enormous financial pressure on schools, which might then
lead to some reforms of the TIF laws. The Illinois Policy Institute
wants to get rid of TIFs. I don’t disagree with them, but I’d rather we
not use school kids’ education as the hammer to do it.
Keeping
it Chicago-centric, the Illinois Policy Institute pointed last week to
Cook County Clerk David Orr’s claim that Chicago’s TIF money accounts
for almost 10 percent of all property tax revenue billed within the
city. In suburban Cook, Orr reports, TIF revenues equal about 3.5
percent of property tax bills.
Nobody
involved with the funding reform negotiations has ever publicly
proposed changing the way the State Board of Education projects school
districts’ potential property tax revenue collections by essentially
wishing away the impact of the state property tax cap law (known as
PTELL). Nobody, that is, until the governor issued his amendatory veto.
Partly
because Chicago is so large and has so much property wealth
(particularly in the Loop area), it benefits more than anywhere else
from the property tax cap school “subsidy,” as the Illinois Policy
Institute calls it. The group wants to get rid of that “subsidy.”
But
the political danger here is clear. By going after Chicago so hard and
making its school district look “wealthier” than it really is by
officially pretending that it can capture more tax money than it really
can, the governor’s amendatory veto would also create collateral damage
throughout the state. TIF districts have been created in a ton of
communities, Downstate and in the suburbs. And lots of school districts
also fall under the property tax cap.
Sen.
Andy Manar, the Senate Democrats’ lead education funding negotiator,
claimed last week that the governor had completely gutted “the whole
purpose”
of SB1 by changing what’s known as the “adequacy calculation.” The bill
as passed calculates need by factoring in the actual costs of things
schools do. That calculation, Manar said, is the “most profound
difference” between the status quo today and what his bill tries to fix.
So,
if Manar is right about the governor’s proposed changes, that would be
additional, um, evidence that there may be an attempt to sabotage
evidence-based funding from within Rauner’s office.
There
are other “coincidences” between Rauner’s amendatory veto (and demands
being made during negotiations) and Illinois Policy Institute dogma, but
the basic premise is that the group wants to kill this bill and
Rauner’s proposed changes could conceivably lead to that result if the
governor sticks to his guns during negotiations.
Rich Miller also publishes Capitol Fax, a daily political newsletter, and CapitolFax.com.