Capitol Fax.com - Your Illinois News Radar » CTBA: Property tax freeze would cost schools up to $830 million a year
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
CTBA: Property tax freeze would cost schools up to $830 million a year

Monday, Jun 26, 2017

* From the ILGOP…

Just yesterday, Mike Madigan called efforts to get lasting property tax relief an “extreme right-wing agenda.”

This comes as Madigan and House Democrats continue to push for massive tax hikes.

Does Rep. Natalie Manley agree with Madigan? Is property tax relief really an extreme agenda?

Manley should stand up for homeowners and speak out against Boss Madigan’s attack on the middle class.

* As you can see from this screen shot of my in-box, they put out a bunch of these…

* But this is from the Center for Tax and Budget Accountability

Cost of Property Tax Freeze to IL Schools? Up to $830 Million

CTBA analysis indicates that a two-year property tax freeze would be devastating for Illinois’ public education system, effectively cutting between $430 million and $830 million from K-12 education per year by the end of 2019.

Late last month, the Illinois Senate passed Senate Bill (SB) 484, which would freeze property tax collections for school districts across the state for two years. Such a measure has been a central demand of Governor Bruce Rauner, who has insisted that he will not sign a full state budget without a property tax freeze.

CTBA’s projection was derived by applying the property tax freeze in SB484 to property tax collections by school districts in 2014 and 2015, the most recent years for which full property tax data is available from the Illinois Department of Revenue. Because the base of collections has increased since then, a funding gap created by the freeze of the same proportion would be greater in nominal dollars today. The smaller amount, $430 million, assumes that every district will increase its levy by the full Consumer Price Index (CPI), which SB484 would allow only for debt and pension payments. The larger amount, $830 million, is the effect of the freeze if no district has debt payments for which it can increase its levy under these terms.

These cuts would hit all areas of the state. Cook County would see an annual schools funding cut of between roughly $200 million and $360 million; the collar counties, between $76 million and $214 million; and districts in the rest of the state, between $156 million and $250 million. On a per-pupil basis, these cuts amount to as much as $496 for every student in Cook County, $382 for every collar county student, and $375 for every student in the rest of Illinois. Figures 1 and 2 illustrate these cuts.

* Attachments…

- Posted by Rich Miller        

37 Comments
  1. - Dee Lay - Monday, Jun 26, 17 @ 11:57 am:

    Never let the facts stand in the way of a good story…


  2. - so... - Monday, Jun 26, 17 @ 11:59 am:

    Uh, it’s a freeze, not a cut.

    A school that levies $1 million in property taxes this year, would be able to levy $1 million in property taxes next year under a property tax freeze.

    Only in Illinois does denying government the ability to raise taxes count as a “cut.”


  3. - Holy cow - Monday, Jun 26, 17 @ 12:09 pm:

    So does this mean I can expect my already highest in the nation property tax to keep going up every year


  4. - Anonish - Monday, Jun 26, 17 @ 12:09 pm:

    @so…
    Can they pass a bill that will prohibit any vendor to a public school, library, park district, village or township from raising any of their prices for the length of time that a property tax freeze is in effect?
    Freezing the revenues from property taxes will result in cuts to services and staffing across many governing bodies outside of public schools.
    Oh and it could create problems with meeting funding requirements for IMRF, but why not put another public pension fund through the shredder.


  5. - Perid - Monday, Jun 26, 17 @ 12:09 pm:

    Wonder how much the State would make up for it in the new funding formula, if at all. In a way taxpayers would just switch from paying for local schools through property taxes to paying for all schools through higher income taxes. Assuming it all evens out of course, which doesn’t seem likely…


  6. - NeverPoliticallyCorrect - Monday, Jun 26, 17 @ 12:12 pm:

    And most of the money goes to teachers, who are in the union, and the Dems are in the pocket of the union so why is anyone surprised that Dems don’t want a freeze.


  7. - Anon221 - Monday, Jun 26, 17 @ 12:13 pm:

    “CTBA analysis indicates that a two-year property tax freeze would be devastating for Illinois’ public education system, effectively cutting between $430 million and $830 million from K-12 education per year by the end of 2019.”

    Team Rauner translation- Freezing property taxes is all about local control! Look at how many millions of dollars we will be giving the school districts in local control!


  8. - City Zen - Monday, Jun 26, 17 @ 12:14 pm:

    ==On a per-pupil basis, these cuts amount to as much as $496 for every student in Cook County, $382 for every collar county student, and $375 for every student in the rest of Illinois.==

    That would move Illinois residents in the overall per pupil funding rankings from 13th to 15th in America, a problem school districts in the 35 states below us would love to have.


  9. - Texas Red - Monday, Jun 26, 17 @ 12:16 pm:

    Since PTELL guaranteed that districts must always ask for the maximum allowable levy under the law (5% or CPI whichever is lower) it is no wonder these groups call it a “Cut”. All entities that rely on property tax should fist estimate what the income they can generate from a tax levy may be - and then learn to build their operations around that number. PTELL created a monster of an ever increasing levy with no ability to look at cost control, the 2/4 year levy freeze is a step in the right direction. Need to give the power back to individual property owners to decide what is best in their local district.


  10. - Last Bull Moose - Monday, Jun 26, 17 @ 12:18 pm:

    The point needs to be hammered home, a property tax freeze is a spending freeze. When prices rise, a freeze in dollar spending results in less being purchased. So the freeze can result in fewer teachers or police. Most people would call that a cut in services.


  11. - Anonymous - Monday, Jun 26, 17 @ 12:22 pm:

    So they’re saying property taxes should be raised by a billion more?


  12. - Lance Mannion - Monday, Jun 26, 17 @ 12:22 pm:

    Consider the source: CTBA is a union advocacy group.


  13. - alt - Monday, Jun 26, 17 @ 12:23 pm:

    work-around to grow property tax revenue is to grow the number of property owners (alternative to annually increasing rates, levies, assessments, etc.)


  14. - so... - Monday, Jun 26, 17 @ 12:27 pm:

    ==Consider the source: CTBA is a union advocacy group.==

    Oh, come on. I’m sure an organization that counts Michael Carrigan and Dan Montgomery as board members is gonna give a you a fair read of the Governor’s policy goals.


  15. - Alternative Logic - Monday, Jun 26, 17 @ 12:28 pm:

    ==Consider the source: CTBA is a union advocacy group.
    ==

    Hey, the IPI called. They need their Facebook commenters back, stat!


  16. - Anonish - Monday, Jun 26, 17 @ 12:31 pm:

    Don’t forget, not just schools are funded by property taxes!

    Non-union municipal employees also get paid from those funds too.


  17. - City Zen - Monday, Jun 26, 17 @ 12:31 pm:

    CPI has averaged 1.4% the past 5 years. Dare I ask how school district spending compares and what COLA increases have been given in recent contracts? I know my old school district agreed to 3% COLA increases in their last teachers contract, and that’s before steps/lanes.


  18. - Joe M - Monday, Jun 26, 17 @ 12:32 pm:

    ==So they’re saying property taxes should be raised by a billion more?==

    If State became the primary funder of education, as the Illinois Constitution calls for, rather than education relying on local property taxes, then property taxes could go down.

    “The State has the primary responsibility for financing the system of public education.”
    (Source: Illinois Constitution.)


  19. - Curious - Monday, Jun 26, 17 @ 12:32 pm:

    I just wonder, if it is even possible, if the tax money that is tied up in TIF funds would have been given to the schools and other agencies would be making a big difference now? I have heard all the positive things about TIFs since their inception and I do acknowledge that many things have been accomplished by them but wouldn’t it be time to possibly consider putting at least a freeze on new TIFs for a period of time?
    Just asking


  20. - Mr Peabody - Monday, Jun 26, 17 @ 12:35 pm:

    When class sizes grow, or courses are cut, or the school district can’t fix its leaking roof, they are going to blame Rauner.

    Call it a freeze, a cut, or whatever you like.


  21. - monarch - Monday, Jun 26, 17 @ 12:38 pm:

    I’m sure my school district will just go out for a referendum sooner.


  22. - Whatever - Monday, Jun 26, 17 @ 12:52 pm:

    First ==Mike Madigan called efforts to get lasting property tax relief an “extreme right-wing agenda”==

    Then ==Is property tax relief really an extreme agenda?==

    So who said a freeze is the only or even best kind of relief? And how did “lasting” get taken out?

    If the Speaker said that a permanent freeze is an extreme right-wing notion, he was right, and neither of the quotes is accurate. I despise both sides for these word games, and the media for not calling them out on it. so… @ 11:59 points out another very common game, where a slower rate of increase somehow is a cut.


  23. - Echo The Bunnyman - Monday, Jun 26, 17 @ 12:59 pm:

    The reality is, everything needs cuts. K-12 is no different. The idea that we can keep throwing money at the problem isn’t working. Start with the wealthy districts. Force Consolidation of these districts that are in the “black”. Does Lake Forest, New Trier, and Stevenson need feeder schools as separate districts? They pride themselves on working with those districts for preparation at the High School level… So, if Naperville, Geneva, St Charles and others are successful Unit K-12 districts, don’t tell me old studies that don’t show consolidation working as this current concept. All of those married a debtor school to a district in the black… Start now.


  24. - JustRight - Monday, Jun 26, 17 @ 1:15 pm:

    IL property taxes are the highest in the Nation. Proposal is for a freeze at the highest rates. Am I missing something? How is this a devastating cut? And isn’t property taxes just a percentage? Even with a freeze, if property values go up so will property tax revenue, even without a “rate” increase.


  25. - Precinct Captain - Monday, Jun 26, 17 @ 1:18 pm:

    So much for the education governor!


  26. - Roman - Monday, Jun 26, 17 @ 1:26 pm:

    == Need to give the power back to individual property owners to decide what is best in their local district. ==

    I believe we have school board elections in Illinois (except for Chicago.) If you don’t like what your local taxing bodies are doing, vote them out, or you could run for a spot on one of those boards yourself. I’m amazed by the number of uncontested village, school, park, and library board elections there are in my neck of the woods.


  27. - Joe M - Monday, Jun 26, 17 @ 1:36 pm:

    ==IL property taxes are the highest in the Nation. Proposal is for a freeze at the highest rates. Am I missing something? How is this a devastating cut?==

    It is a devastating cut because Illinois State budget support for schools is the LOWEST per pupil in the Nation.


  28. - JS Mill - Monday, Jun 26, 17 @ 1:45 pm:

    =All entities that rely on property tax should fist estimate what the income they can generate from a tax levy may be - and then learn to build their operations around that number. =

    Umm, yeah welcome to how it is done. I am guessing you have a lot of suggestions on how government should “work” but have never run for office, attended a public body meeting, been put on the agenda, made public comment, sat with local leaders to see how they actually work. It is always easier to shout from behind the bushes.

    Unfortunately for your theory there are things we are required to do by the state and federal government that also cost money. Money the state and federal government are supposed to provide but do not.

    So we should punish kids, fir teachers and other staff, and pay minimum wage because they don’t deserve since you are a ditch digger and only make minimum wage yourself.

    =PTELL created a monster of an ever increasing levy with no ability to look at cost control, the 2/4 year levy freeze is a step in the right direction.=

    PTELL is a prime example of political pandering. People wanted “tax caps” and they got them. Schools lost out when the value of real property was increasing at historic rates. Now they get CPI and their levy every year which hammers homeowners when values drop.

    =Need to give the power back to individual property owners to decide what is best in their local district.=

    You already have that. It is called an election. You elect a school board to oversee the district and they hire professionals to run day to day operations.

    I know- they are all in cahoots yada, yada, yada….


  29. - Mama - Monday, Jun 26, 17 @ 2:24 pm:

    RNUG, what are the pro’s and con’s of a Property Tax Freeze?


  30. - Anonymous - Monday, Jun 26, 17 @ 2:27 pm:

    If they don’t do something about property taxes soon you will just have a bunch of empty houses to collect from because everyone left.


  31. - MacombMike - Monday, Jun 26, 17 @ 2:52 pm:

    You know what else is costing school districts nearly $800 million o ver 2 years? TIF

    Follow California and eliminate TIF from state law.


  32. - Curl of the Burl - Monday, Jun 26, 17 @ 2:55 pm:

    Macomb Mike - and the school administrators who “testified” last Friday pretty much admitted what you typed.


  33. - Elliott Ness - Monday, Jun 26, 17 @ 3:19 pm:

    The bottom line for many districts is that between property tax freeze and potential pension cost shifts, there is less than half the amount lost going into the new evidence based formula by anyone’s best guess. So, they move one step toward adequacy and then two steps back when the property tax freeze, coupled with a cost shift hits. All the while, Chicago is exalted from the freeze- if they are exempted, all schools in similar shape based on the tier structure should be.


  34. - JS Mill - Monday, Jun 26, 17 @ 3:45 pm:

    =You know what else is costing school districts nearly $800 million o ver 2 years? TIF

    Follow California and eliminate TIF from state law.=

    Bingo!!

    But local governments love them some TIF. They are a total rip off!


  35. - Paul - Monday, Jun 26, 17 @ 5:55 pm:

    Only reason Madigan is whining is because if there is a freeze, his law firm won’t get any money from any work they provide. Honestly, it’s not that hard to connect the dots


  36. - cdog - Monday, Jun 26, 17 @ 5:59 pm:

    This is a truckload of “bs” from the Sale Barn, “assumes that every district will increase its levy by the full Consumer Price Index (CPI).”

    It’s good to see a lot of the commenters get it.

    The billions of $s spent on education in Illinois are achieving a “33% ready for the next level.”*

    Why do democrats think the only solution is throwing more money at a problem?

    Having your eye on the next billion in our wallets, is unbelievable. This Blue Mecca State is heading down the slippery slope faster than I thought.

    *https://www.illinoisreportcard.com/State.aspx?source=trends&Stateid=IL


  37. - Rich Miller - Monday, Jun 26, 17 @ 6:00 pm:

    ===his law firm won’t get any money from any work they provide===

    The freeze is on the levy. So, if you knock down your shack and build a mansion, I think you’re gonna have to suffer through a higher assessment.


Sorry, comments for this post are now closed.


* Narrow US Supreme Court decision should have no impact on Illinois' foster care program
* It's just a bill
* Marjorie Taylor Greene heading to Eastern Bloc territory for fundraiser with Mary Miller
* Not exactly the A Team lining up against Sen. Duckworth
* Thousands of veterans won't be left out of Illinois vaccine lottery program after all
* "Outlier" Illinois trying to catch up with other states on equity-based higher ed funding
* Reeder: "We need to ask how to increase public safety and minimize police shootings"
* CPS alters its botched janitorial privatization plan
* Open thread
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller