Capitol - Your Illinois News Radar » One Rauner AV change would cost schools “millions of dollars” and lead to “financial ruin”
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
One Rauner AV change would cost schools “millions of dollars” and lead to “financial ruin”

Friday, Aug 11, 2017

* PJStar

A change slipped into this year’s budget, coupled with Gov. Bruce Rauner’s proposed changes to a school funding bill, could add another major financial challenge for area school districts.

As part of the spending plan in July, lawmakers approved shifting the state’s portion of pension costs for all future teachers to local school districts. And as part of his amendatory veto of Senate Bill 1, Rauner removed language that would take those added costs into account when determining districts’ financial positions — data that’s used to determine how much they receive in state aid. […]

“We’re talking about millions of dollars — additional millions of dollars — in pension costs,” Peoria Public Schools Superintendent Sharon Desmoulin-Kherat said at a news conference Wednesday to urge local lawmakers to reject Rauner’s proposed changes. “That would be very difficult.” […]

Canton District 66 Superintendent Rolf Sivertsen said he didn’t have an immediate calculation of the cost to his district, but estimated that the effect would run into the millions of dollars. […]

“If there is no levy with it, it’ll be financial ruin, and the governor will own that,” Sivertsen said. […]

If the governor’s amendatory veto is approved, efforts to move toward more adequate and equitable school funding will be “obsolete the very day that Tier 3 is created,” Michael Jacoby, executive director of the Illinois Association of School Business Officials, wrote in an emailed response.

Online criticism of this specific aspect of Gov. Rauner’s AV was what got his policy director all fired up on Wednesday, by the way.

* Related…

* 2020 Could Have School Districts Seeing Red

- Posted by Rich Miller        

  1. - Will Caskey - Friday, Aug 11, 17 @ 12:14 pm:

    I’m not without appreciation that rather than pick up pension costs for CPS Rauner just cut funds for every other school district. He’s not often this consistent and I guess deserves recognition for that.

  2. - Winnin' - Friday, Aug 11, 17 @ 12:17 pm:

    The provision to have locals pick up pension costs has had Republicans wailing in recent years…not to mention it is a Madigan-supported concept.
    Still, the Rauner Gop will follow Rauner off the cliff and blame Madigan.

  3. - Oswego Willy - Friday, Aug 11, 17 @ 12:18 pm:

    I guess this is “kinda-sorta” what Kristen McQueary was getting at?

    From her column today…

    ===Continually, Rauner’s focus seems to be at the wrong end: protecting wealthy school districts from losing what they have instead of advocating for low-income school districts and what they need.===

    This AV hurts Peoria, they claim it will ruin them.

    Rauner’s attempt to ruin CPS, CTU, actually all unionized teachers in the abstract, has a price tag.

    Districts like Peoria’s will pay the freight?

  4. - Chicago Cynic - Friday, Aug 11, 17 @ 12:22 pm:

    Thank God the #BestTeamInAmerica is on the job.

  5. - Retired Educator - Friday, Aug 11, 17 @ 12:26 pm:

    Just override this guy. Then spend the next couple years ignoring him. He has no clue what he is doing, and has surrounded himself with people who tell him he is right. Governor you are working on about 90% wrong at all times. Either hire some people who know what they are doing, or just give up and move on in 2018. If you were good at capital investment, then stick with it. You are wearing us out.

  6. - Henry Francis - Friday, Aug 11, 17 @ 12:30 pm:

    It seems the Guv’s only contributions to the legislative process are to insert poison pills.

    As a great statesman once said: Outrageous.

  7. - Rod - Friday, Aug 11, 17 @ 12:31 pm:

    Michael Jacoby could be speaking only for himself, because the Statewide School Management Alliance has yet to formally call for an override to the AV. To see their latest avoidance of taking an actual position on the SB 1 override, see

  8. - JS Mill - Friday, Aug 11, 17 @ 12:31 pm:

    I posted on this the other day on the Dusty Rhodes thread. I said then that this aspect of the AV is, by itself, enough to shut down most districts in the state. It would cost even the smallest districts hundereds of thousands of dollars.

    Cost shift is the right way to go for the annual pensions payments. It has to be done one of two ways to make it work

    A- over a long period of time.

    B- or spread over a few years and with the option for districts
    to levy for it. Then it is up to local school boards (elected so local control is followed) to decide what is right for them.

    Absent either of those options it will close schools fast.

  9. - wordslinger - Friday, Aug 11, 17 @ 12:31 pm:

    So who exactly wants to vote in favor of accepting these AV changes? Piling millions on property tax payers in districts all over the state?

    For those who won’t vote for an override, what’s the game plan for starting at square one in mid-August for a funding plan that will need a super-majority?

    For crying out loud, the state is still short $500M to the schools for last year, and has missed the first payment for the coming year.

    Like Capt. Willard told Col. Kurtz, “I don’t see a method at all, sir.”

    Unless the plan is squeeze the beast for K-12.

    Morality aside, that’s just nuts. You will reap the whirlwind.

  10. - PAM - Friday, Aug 11, 17 @ 12:35 pm:

    So, the School Districts keep getting ’state dollars’ and don’t have incentive to control pension costs, or pension money comes out of their funds and they pay more attention. The first option has all the adults in a district paying higher state taxes, the second has all the adults in the district paying higher local taxes. Seems like local control might save the taxpayers. State control hasn’t helped much.

  11. - My New Handle - Friday, Aug 11, 17 @ 12:38 pm:

    I read somewhere that a legislator believed that Rauner was operating in the extreme. Hmmm. Wush I could remember who said that, and what the criteria were for such an assessment.

  12. - ArchPundit - Friday, Aug 11, 17 @ 12:39 pm:

    ===The provision to have locals pick up pension costs has had Republicans wailing in recent years…not to mention it is a Madigan-supported concept.

    I think many people would be willing to shift some of the cost to districts. However, doing that in a way that doesn’t create a huge problem in transition is how a responsible Governor would pursue that.

  13. - Winnin' - Friday, Aug 11, 17 @ 12:39 pm:

    It is really gettin’ hard to follow the Rauner bouncin’ ball. Lets saddle local local property taxpayers with higher taxes while callin’ for property tax limits.
    Either Rauner is confused, duplicitous or he is being led by the nose by IPI. Maybe all three.

  14. - Norseman - Friday, Aug 11, 17 @ 12:40 pm:

    The GOP minions don’t care about Rauner’s AV. They know it’s dead. Unless Cullerton wants to force Senate minions to vote on it should the override fail, they get off easy. Either way, the House minions are free and clear of AV blowback.

    This leaves us back to the issue of funding reform. I see it dying an unfortunate death.

  15. - Arthur Andersen - Friday, Aug 11, 17 @ 12:42 pm:

    JSM, I bow to your expertise here, but I’m a little confused. If the cost shift includes normal costs only and applies only to new hires, doesn’t that by itself create somewhat of a phase-in of the cost?

    Ultimately though, over a billion dollars of normal cost gets shifted.

  16. - Oswego Willy - Friday, Aug 11, 17 @ 12:56 pm:

    From the article above…

    ===Canton District 66 Superintendent Rolf Sivertsen said he didn’t have an immediate calculation of the cost to his district, but estimated that the effect would run into the millions of dollars.

    He said the choices for his district would be stark — a substantial tax increase to cover the added expenses, or deep financial harm to the district.

    “If there is no levy with it, it’ll be financial ruin, and the governor will own that,” Sivertsen said.===


    Let’s break down “this”

    ===“If there is no levy with it, it’ll be financial ruin, and the governor will own that,” Sivertsen said.===

    So, a “local” tax increase would be needed to cover Rauner’s AV, or the district will be in ruins.

    There would be no need for a tax increase without Rauner’s AV.

    Rauner will own the tax increase.

    “Why would Rauner own the tax increase?”

    Only a governor can veto, or in this case, AV.

    So, to bring back before, you know, where a superintendent tells us “Governors own”…

    ===… the choices for his district would be stark — a substantial tax increase to cover the added expenses, or deep financial harm to the district.===

    … brought on… by Rauner’s AV… and Rauner owns these two options.

    And there’s a worry Rauner won’t own this?

    Superintendents know. Governors own.

  17. - Lester Holt's Mustache - Friday, Aug 11, 17 @ 1:08 pm:

    These superintendents aren’t the only ones bashing the AV lately. There was a hearing Wednesday where several supts. from Lake County schools testified that this AV would kill their districts in 2020.

    But the Gov did have Jeannie Ives there to support it, so, you know, Bruce had that going for him.

  18. - Anon221 - Friday, Aug 11, 17 @ 1:32 pm:

    Jeannie didn’t stick around to face the number crunchers though at that hearing. When Matire and the other two gentlemen were called, she made a statement on how great the AV was, then left because she had a train to catch. Would have loved to hear her try her schtick with that panel. Near the end of the second superintendent panel, they were getting tired of her act, and pushing back in her “facts” pretty hard.

  19. - RNUG - Friday, Aug 11, 17 @ 3:11 pm:

    -Sue- yesterday was actually on to how some of the school districts can afford a pension shift: phase out the school district picking up the employee portion of the pension contribution.

    If, and it is a really big IF, the local school district can do that without having to give a salary increase in exchange, a lot of districts could absorb the cost. The contract talks won’t be pretty, but maybe some non-monetary items like overly restrictive classroom and work rules could be horse traded.

    The State could help that aspect by streamlining mandatories and giving local districts some flexibility. In fact, that action is mostly within Rauner / ISBE’s control right now.

  20. - Arthur Andersen - Friday, Aug 11, 17 @ 3:27 pm:

    RNUG, what am I missing? Why is normal cost on new hires such a perceived budget-buster? Has teacher turnover increased recently?

  21. - Arthur Andersen - Friday, Aug 11, 17 @ 3:52 pm:

    RNUG, upon further reflection, I’m convinced that it’s all but impossible for these districts to know the impact of the cost shift with any certainty and, absent seeing numbers to the contrary. have to conclude the fiscal ruin remarks are premature and overstated.

  22. - PragmaticR - Friday, Aug 11, 17 @ 4:29 pm:

    It is very counterintuitive, but school districts choosing to pay the employee pension contribution, the pension pick-up, has likely lowered the state’s pension liabilities by billions of dollars. Which is worse for the state’s pension liabilities? Paying 1% of salary as a pension pickup or instead raising salaries by 1%. What if an employer trades 1% lower raises for 1% more of pension pick up in a contract negotiation every year for five years? Once everyone understands that these two options are not the same for pension liabilities and for salaries in general, it becomes obvious why the pension pick up is better than a salary increase for the employers and the state.

  23. - EchoTheBunnyman - Friday, Aug 11, 17 @ 4:38 pm:

    My best friend worked at Stevenson for about 10 years as an administrator. It was actually obscene what the pay and benefits were. The retirement of the administration even after the supposed loophole was closed still provided astronomical retirement salaries. There are many high paying districts in collar counties. Some districts are not what you would consider without research. The point is, that people think the north shore one school districts are outliers. They are not when you dig. The cost shift is truly the only way to equalize state funding. Should Peoria pay the high retirement of New Trier employees? If the local tax payers want a business manager at Stevenson that over seeing one school to make over $200,000 in retirement they should pay that cost no? Actually, they have 2 of those examples. And superintendents and and… cost shift is what Madigan has wanted and frankly, he is correct. It’s the only close to fair prospect. Even if nothing ever passes. That alone will force or consider the consolidation of far too many districts. It’s the long game he’s playing. Nobody can vote politically for consolidating but cost shift forces it. Sorry for the rant. But I’ve ranted this here for too many years. I hope that happens at least.

  24. - Arthur Andersen - Friday, Aug 11, 17 @ 4:40 pm:

    PragmaticR, wrong. Picked-up employee contributions are TRS creditable earnings, the same as regular salary. No effect on the liability. Google Illinois TRS Employer Guide if you don’t believe AA.

  25. - IllinoisBoi - Friday, Aug 11, 17 @ 4:42 pm:

    I found all this school funding rather confusing and complicated, but then I remembered: in the final analysis, everything Rauner does is designed to harm common people and cut taxes for the super-rich. He’s 100% consistent.

Sorry, comments for this post are now closed.

* Reader comments closed until April 2
* Quick hits before vacation
* Heads up!
* First-day whiplash in mayor's race
* Pritzker hit on taxes
* Even Trib tires of "Because... Madigan!"
* What goes around eventually comes around
* Londrigan turns to face Davis
* *** UPDATED x1 - DGA follows suit *** Pritzker uses Ives in new video
* Illinois House Bill HB 4900 is Unconstitutional
* Rauner on the hustings
* Quote of the week
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* The natives are getting restless
* Yesterday's stories

Visit our advertisers...








* Democrat Sexual Harrassment Suit Continues - Al.....
* Illinois governor compares foes' tactics to 'ma.....

* EXCHANGE: Group brings students around to life at Millikin
* EXCHANGE: Illinois author creates fantasy world for children
* Former UI aviation institute now a Parkland College program
* Report: Illinois high school referee shortage getting worse
* Storm forecast to bring up to 9 inches of snow to Illinois
* Man dies, officers wounded in shootout in suburban Chicago
* Report: Number of referees in Illinois continues to drop
* Workers find, return wallet 20 years after nurse lost it
* Chicago-area woman charged with murder in mother's death
* Police looking for 3 vehicles after wrestler killed in crash

* $18 million gift to benefit LLCC agriculture program
* Illinois Supreme Court won't take up Rauner's appeal of step pay case
* Former campaign worker sues Madigan fund in sexual harassment case
* Rauner says he has yet to speak to Ives after primary win
* LLCC gets $18 million donation to benefit agriculture program
* Fact check: Rauner cites own remarks as proof of outside support for Election Night claim
* Under the Dome Podcast: It's Pritzker vs. Rauner
* Marijuana referendum could strengthen movement to legalize in Illinois, but naysayers say ballot question unfair
* Illinois Democrats giddy about odds of retaking governor's office
* New exhibit at Lincoln museum honors four U.S. presidents with ties to Illinois

* Corrections
* In withdrawal: The babies of Illinois' opioid epidemic
* Cook County wants to give back $94 million in excess property taxes
* Higher Chicago heating bills fuel bonus bump for Milwaukee utility execs
* Higher Chicago heating bills fuel bonus bump for Milwaukee execs

* Police: Pair of strong-arm robberies reported near Argyle Red Line station
* Father charged with making threats against staff and students at Lyons school
* Police: 4 robberies reported this month in Marquette Park, Chicago Lawn
* Man shot, seriously wounded in West Rogers Park alley
* Synthetic pot linked to several cases of severe bleeding in NE Illinois
* Correctional officer charged in scheme to smuggle contraband into MCC
* AL Central outlook: Indians have unfinished business
* Girl, 17, charged after making threat against Elmhurst high school on Snapchat
* NL Central outlook: Foe-cus is on Brewers, Cardinals
* Man, 78, reported missing from Near North Side

* Stop feeling sorry for the Austin bomber
* Artifacts from 1893 World’s Fair found beneath Obama center site, but report signals construction can proceed
* More people are seeking out mental health care, but psychiatrists are in short supply: 'It's getting worse'
* Facebook was never free: What Mark Zuckerberg's shocking admissions reveal
* Shot on the streets of Chicago as teens, they're heading to D.C. to protest gun violence
* Boy critically injured after sticking head out of moving Red Line train
* Stephen Curry returns, then injures left knee as Warriors win
* Chris Beard, Texas Tech oust Purdue 78-65, will now face No. 1 seed Villanova
* Duke bounces Syracuse to set up Kansas showdown for Final Four
* Former Bears TE Martellus Bennett retires after 10 seasons

» March 23, 2018: Gentlemen, Start Your Engines
» Final School Funding Bill Signed Into Law
» State Week: Lessons Of The 2018 Primary
» Mural Highlights Acclaimed Artist Keith Haring's Effect On Aspiring Artists
» Future of Artificial Intelligence; Mindfulness In Schools; Teaching The Trail Of Tears
» WBEZ’s Chicago and Illinois News Roundup: March 23, 2018
» The Week in Review: General Election Already Underway
» Web Extra, The Week in Review: Arthur Jones’ Primary Win
» #643 SXSW 2018
» March 22, 2018 - Full Show

* Guest View: A renewed focus on railroad crossing safety
* Hugh Hewitt: John Bolton is a great addition to the White House
* Thumbs down to apathy on Election Day
* $18 million gift to benefit LLCC agriculture program
* Counterpoint: Kudlow's fossilized beliefs could lead Trump further astray
* Point: Kudlow's skills will keep US economy rolling in fast lane
* Eugene Robinson: We should not reward the authors of torture
* Illinois Supreme Court won't take up Rauner's appeal of step pay case
* Former campaign worker sues Madigan fund in sexual harassment case
* Rauner says he has yet to speak to Ives after primary win

* Group seeks volunteers to sell signs
* Deere & Co. in Illinois top businesses
* Gloria Dei holds community cross walk on Good Friday
* Cheryl Lynn Smillie
* William 'Bill' H. White
* James Raymond Graves
* Raymond 'Scott' Miller
* LuElla Louise Lehr
* Bonnie June Brouillette
* Synthetic pot may be causing severe bleeding, health officials say

* Willow Creek's Hybels: 'I respect women. I have never been unfaithful'
* China's economic czar tells US Beijing will defend interests
* Wayne Huizenga, who built his fortune from trash, dies at 80
* Pac-12 has solid day with Oregon State and UCLA advancing
* Bumgarner breaks hand when hit by line drive, needs surgery

* Garcia Cruises to Victory in Race to Repla...
* Rodriguez wins over Quincy native Deters i...
* This RSS feed URL is deprecated
* Nick Provenzano fired from US Rep. Randy H...
* River Town Chronicles: Randy Hultgren is T...
* Garcia Cruises to Victory in Race to Repla...
* Republican congressman fires 56-year-old a...
* Underwood coasts in Democratic primary for...
* Congressional aide fired after teen says t...
* 'I used bad judgment': 14th Congressional ...

* Trump: I'll never sign a bill like this again...
* The real reasons Congress can't act on gun......
* Border wall, DACA could stall federal fund......
* Federal funding measure approved to avoid ......
* Portman, Durbin introduce resolution marki......

* Deportation imminent for Miguel Perez Jr.,......
* Former Obama Spokesman Denounces Deportati......
* Congressional Democrats plan to join 'Marc......
* Dem senator introduces bill to publicize T......
* Deportation proceedings begin for Afghan W......

* What’s Loyola legacy for ’18 basketball team in Chicago sports history?
* Progressive?
* Hitting Left with the Klonsky Brothers. Episode 59. Summing up the Illinois primary elections.
* Universities Deploy Chatbots to Aid Students in the Admissions Process and Beyond
* 10 Resources for finding edtech jobs
* Global Boom in Private Enrollments
* Professor on online activities: They get ‘students talking more and me talking less’
* Race and Gender Bias in Online Courses
* Education needs innovation to keep it fresh. Can social learning environments provide the boost?
* Let’s make Pritzker and Rauner pay more—a lot more—in state income taxes

* February Flooding Information
* IEMA Urges People to Prepare for Severe Weather
* Governor issues state disaster proclamation for flooding in Iroquois, Kankakee, Vermilion Counties
* Winter Storm Warnings for Areas Along and North of I-80
* IEMA Encourages People to Prepare for Earthquakes

* Galaxy Note 9 likely won’t get in-display fingerprint scanner (Update: Actually, maybe it will)
* OnePlus 5T won't be officially available in North America any more
* Google Home arrives in Italy, Ireland gets Google Wifi
* Shareholders vote current Qualcomm board back in, but with skepticism
* Folding iPhone progress, Galaxy S9 responsiveness issues & more – Pocketnow Daily
* KGI: Next week’s iPad refresh will work with Apple Pencil
* HTC U12+ will be the company’s only flagship of 2018

* Renteria to use 'abundance of caution' for Abreu
* Giolito, Moncada are White Sox to watch in '18
* Giolito, Moncada are White Sox to watch in '18
* White Sox have roster battles in bullpen
* Spring Stats Glance
* Skole among 3 reassigned to Minors camp
* White Sox Top 10 Prospects for 2018: Part Two

Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

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


RSS Feed 2.0
Comments RSS 2.0

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