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But I think that the Daily Herald comes closest to what the governor’s education funding plan may be.
Democratic Gov. Rod Blagojevich today will unveil an election-year school funding plan that calls for leasing the state lottery for the next decade to a private firm in return for $10 billion in upfront cash.Schools would get at least $1 billion a year for the next four years from such a deal, with the remaining $6 billion going into an education trust fund governed by a board appointed by the four legislative leaders, governor, comptroller and treasurer, according to a Democratic source briefed on Blagojevich’s proposal late Monday.
The complex schools plan, hatched in the heat of a campaign as Blagojevich sought to prevent a damaging third-party challenge from state Sen. James Meeks, likely will be controversial, criticized by Republicans and leave numerous questions to be answered in the coming months.
The governor’s office, however, has tried to keep an uncharacteristically tight lid on details, declining several requests for comment ever since Meeks, the pastor of a large predominantly black South Side church, announced last Friday he would not run for governor because Blagojevich met his demand to find more money for schools.
Two of the looming questions essentially are math problems. The state figures to get at least $650 million from the lottery for the school fund next year even if it doesn’t lease the lottery to a private company. So the net increase to schools would seem to be only $350 million a year for four years. It’s possible, but unknown Monday, whether Blagojevich will propose other revenue-generating measures to boost the bottom-line figure.
The other math-centered question is what happens after four years, when the state no longer has the $1 billion per year earmarked for schools and also will no longer have the lottery money, since a private company would be reaping that cash through a lease. Blagojevich’s answer for that involves earning interest on the $6 billion trust fund, the source said. It’s unclear, however, whether the state could earn enough in investments each year to make up the potential shortfall of $1 billion.
I heard pretty much the same thing yesterday.
More here.
posted by Rich Miller
Tuesday, May 23, 06 @ 8:11 am
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It just sounds like the Governor is substituting one education funding shell game (the current Lottery) with another (the lease). Both are nothing more than budget substitutions, not “NEW” money.
If in addition to the upfront payment, the Gov included a share of the profits on a yearly basis, then maybe I would change my mind.
Isn’t that what some people have been arguing about the gambling boats, the need for the State to retain a valuable and continuing interest in the financial success of the boats?
Comment by Anon sequitur Tuesday, May 23, 06 @ 9:21 am
So we still continue to fund education on the backs of people with poor math skills. I would love to see the spread accross the State where Lottery funds come from.
Meeks aggreed to this? You’ve got to be kidding. His neighborhoods are some probably most hit by this state tax. Comeon what was really promised? Who’s going to be the next State Supt?
Comment by frustrated GOP Tuesday, May 23, 06 @ 9:35 am
I found a link to a Chicago Reader article, which is on Illinoize and McHenryCountyBlog.com, which says 33% of the lottery sales are in Chicago.
If the lottery is the source, it appears that the Rev. and State Senator James Meeks’ consitutents are disproportionately targeted to pay the additional costs.
And, there will be additional lottery sales if a private firm takes over, but, probably, not by the current employees working for the lottery.
How many current employees do you think will be still working for the lottery operation two years from now?
Comment by Cal Skinner Tuesday, May 23, 06 @ 10:16 am
Look, we all know the State is broke and was broke before the Gov got in. What is wrong with him trying to address the education funding issue with the sorely needed cash? He also should be praised for not raising income or sales taxes to do this.
Comment by the ole precinct captain Tuesday, May 23, 06 @ 10:37 am
Correct, he did not raise “sales or income” tax, and the state was in bad shape when he came in. But his raising of the licesing and fees is pretty much the same thing. Only he can say he lived up to his pledge while making businesses pass the costs along to consumers. What happens when that money goes bye-bye?
Comment by Wumpus Tuesday, May 23, 06 @ 10:51 am
Stay with the math lesson. $1B/$6B=16.7%. Four part question.
A. Where do I get that guaranteed interest?
B. Is Broadway Bank involved?
C. How soon will these funds be swept out?
D. If I run for Governor will Rod have a deal for me to stay home?
Comment by zatoichi Tuesday, May 23, 06 @ 10:54 am
I love how everyone can criticize the proposals so easily yet never seem to come up with an alternative or better solution. Would the tollway have gone any better as an option? I certainly don’t have the answers, I am just annoyed of course because no matter what there never seems to be an answer. Anyone have any better, realistic ideas and not just a wise crack?
Comment by annoyed all the time Tuesday, May 23, 06 @ 11:04 am
Yes, I have a better, realistic idea. HB 750.
Comment by Michael Tuesday, May 23, 06 @ 11:21 am
The solutions for this are long, envolved and require real leadership not an attitude of “Sell everything the State owns to get us through till the Gov. can be considered a VEEP” There have been real solutions propsoed, But to get those passed take political capital. Our current Gov spent his on make sure his contributors got theirs, instead of making sure the State runs right. He has had both houses and still hasn’t solved anything with our flawed funding system of schools.
Comment by frustrated GOP Tuesday, May 23, 06 @ 11:22 am
Better or more realistic ideas than spending an additional ratload of $$$ on school systems that have already demonstrated that they can’t handle the $$$ they already get?
How about firing every last administrator and teacher in every school system that doesn’t graduate more than 50% of its students to college-level studies?
How about a federal investigation of the concept of using state $$$ to bribe a political opponent not to run against you for a state-wide office?
Comment by Brian Tuesday, May 23, 06 @ 11:22 am
The Blagojevich plan borrows from future revenue to pay for nice-to-have things in his next term.
Blagojevich sees that Bush can pay for tax cuts by deferring obligations and he figures he can do the same.
Irresponsible gits.
Comment by Carl Nyberg Tuesday, May 23, 06 @ 11:29 am
And I have the best answer. Competitive choice. It can be done without additional money. It will deliver greater Education Value to the children. It will fund additional special ed moneys. Properly managed, it will deliver more money per student to the publc school system.
Unfortunately it breaks up the closed shop monopoly which the present public school system and their industrial union teachers have enjoyed.
Federal, state and local funding are combined and each child is vested equally. The parent will make the choice. All accedited schools are in the pool. The ISBE — after reform — sets the accreditation. Each District manages its programs. Participating schools include public, charter, private and parochial. Home schooling will receive consideration. Every school will bid a price less than or equal to the vested amount. To the extent that the sum of the prices bid is less than the sum of the vesting the public school district retains the money for the benefit of their students.
Accreditation applies to all participating schools, including public schools. Part of the process is periodic teacher testing and observation.
Comment by Truthful James Tuesday, May 23, 06 @ 11:46 am
I thought all the lottery money *did* go to education.
So does this mean he lets go all the workers who work for the state lottery?
Comment by Macbeth Tuesday, May 23, 06 @ 11:58 am
I did not support Rod Blagojevich because he would conduct a fire sale of state assets to pay for his “no taxes” pledge.
Every time I think the Governor cannot sink lower, he exceeds my expectations.
Btw, how does this proposal square with his promise not to expand gambling?
Also, keep in mind that most casinos pay out about 97-95% of the wagers made; the lottery only pays out 50%. Talk about a lucrative license. Which means, of course, that someone will be hiring John Wyma real soon.
(As for solutions: Michael is right, HB 750 is the only lasting solution that addresses school funding inequity in Illinois.)
Comment by the Other Anonymous Tuesday, May 23, 06 @ 12:05 pm