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.

TrackBack URI

Post your comment... And please take a half second to come up with a nickname. It makes following the posts easier for everyone... Thanks

In other words, do your best to be civilized and smart.

* I don't quite get it
* Revisionist history from the WSJ, but it could've been worse
* Today's quotable
* What's the holdup on AVR?
* Bed-and-breakfast which refused service loses another round in court
* *** UPDATED x1 *** Is Preckwinkle toast?
* "Who’s ‘bailing out’ whom?"
* Where are the other GOP candidates?
* Rauner spokesperson says Madigan claim "absolutely false"
* Republican Party calls White's decision to run again "a gift to Madigan"
* Moody's issues warning on school funding impasse
* Biss again calls on opponents to release tax returns
* Rauner feeling heat on his right flank
* US Rep. Kelly endorses Biss
* If at first you don't succeed...
* *** UPDATED x1 *** Water is wet and Jesse White is running again
* Governor's Day roundup
* Cartoon removed, racism denied
* *** LIVE *** Democrat Day coverage
* Rep. Andersson to retire
* Yesterday's stories

Visit our advertisers...





* On Dem Day, candidates stand united against Tru.....
* Democratic governor candidates say Rauner too l.....
* Feds, State to Conduct Illinois Flood Damage As.....
* Gov hopeful Daniel Biss: Faith that fuels divis.....
* House soundly rejects Rauner's school-aid chang.....
* Rauner spokesperson says Madigan claim “absolut.....

* Officers revive man overdosing at Illinois county court
* State senator suffering from cancer won't seek another term
* Feds, state to conduct Illinois flood damage assessments
* Correction: Illinois School Funding story
* Correction: Civil Unions-Religious Battle story
* Sentence next for Chicago activist with US immigration crime
* Ford to pay up to $10.1M to settle harassment allegations
* EXCHANGE: Workshop plants seed for college, careers
* 2nd co-defendant convicted in 2015 Indiana shooting deaths
* Illinois Democrats gather in Springfield, but not at fair

* Jesse White to seek sixth term as Illinois secretary of state
* Rauner: Trump's comments on Charlottesville 'damage America '
* Rauner's school funding changes fail in House
* Illinois House condemns white supremacists
* House vote on Rauner school veto defeated
* Republicans say school talks scheduled Friday in Chicago
* Rauner blasts 'special deals' for Chicago
* Regulators seek more details on state's first fracking permit
* House won't vote on education bill veto override Wednesday
* Political days bound to be raucous and eventful during Illinois State Fair

* Midlife career change? It's mission, possible
* This new restaurant's gig: Fresh pasta
* Kalamazoo Outdoor Grill is not for sale at any price
* Ford to pay up to $10.1 million to settle EEOC Chicago allegations
* Out with nursing homes, in with home health care

* LETTERS: As Trump falters on environment, some in Congress step up
* Sheriff: Prisoner threw handgun in trash can at Cook County Jail
* US men’s basketball enters a new world — without its stars
* Mitch Trubisky or Mike Glennon? Oddsmakers weigh in on Bears QB issue
* On Dem Day, candidates stand united against Trump, Rauner
* Cash family: Keep Johnny’s name away from ‘hateful ideology’
* Palatine house struck by lightning, catches fire
* Top-10 tastiest NFL stadium noms; 2 new items on Soldier Field’s menu
* Preseason is now a test of Bears QB Mike Glennon’s ‘inner confidence’
* Police: Man arrested after trying to rob Evanston CVS for second time

* Zarlengo's brings homemade Italian ice to the Southland
* Attacker drives van swerving into crowd in Barcelona; at least 13 dead, 1 arrest
* Lincolnshire under boil water advisory, forcing Stevenson to cancel classes
* White nationalists already lost
* Suspicious item at Route 59 Metra station turns out to be cooler bag
* The best way to drink whiskey, according to science
* Sources: Feds made recordings at Cinespace Chicago studios in probe of Teamsters boss
* If you still support Donald Trump
* Buncich denies wrongdoing in Day 9 of corruption trial

» Three Takeaways From Springfield’s (In)Action On School Funding
» Struggling Gary Schools Open Under New Leadership — The State
» Illinois Issues: Cairo Faces Public Housing Crisis
» Rauner Outlines 2018 Campaign Themes: Madigan, Madigan, Madigan
» U.S. Attorney General Slams Chicago (Again) Over Sanctuary Policies
» Illinois House Vote On Rauner School Veto Defeated
» Illinois House Democrats Deal Rauner Symbolic Blow In School-Funding Fight
» Hastert Officially No Longer In Custody; Probation Begins
» Professor Turned Down White Nationalist’s Email Request To Speak At University Of Chicago
» Chicago Public Schools Sinks Further Into Debt

* Jesse White to seek sixth term as Illinois secretary of state
* Bernard Schoenburg: Pritzker to release tax info soon, touts Stratton's mediator skills
* Our View: Keep those consolidation efforts coming
* Rauner: Trump's comments on Charlottesville 'damage America '
* Rauner's school funding changes fail in House
* Illinois House condemns white supremacists
* House vote on Rauner school veto defeated
* Republicans say school talks scheduled Friday in Chicago
* Rauner blasts 'special deals' for Chicago
* Regulators seek more details on state's first fracking permit

* Oops — Edwardsville Library recalls eclipse glasses
* A guide to blockbuster eclipse moments that can't be missed
* Different kind of B&B coming to Bettendorf
* 14 college scholarships awarded By CSBG Advisory Council
* East St. Louis District 189 welcomes students back to school
* ‘Celestial Narratives’ to feature the cosmic works of Michiko Itatani
* Shiloh releases video of golf carts being stolen from Yorktown
* 08-17-17 Brian Barnhart with Donna Pittman of the Champaign Public Library
* PODCAST: Donna Pittman of the Champaign Public Library 8-17-17
* 08-17-17 Brian Barnhart with Kendra Albers and Kim McQueen @ALSChicago

* Trump decries Confederate monument removals, 'history ripped apart'
* Van mows into Barcelona crowd killing several in terror attack
* Free movie matinee Aug. 25 at Vernon Hills library
* Mount Prospect, Prospect Heights, River Trails enter agreement to offer resident rates
* Final Motors on Milwaukee car show to benefit charities

* Trump just gave the most insane press conf...
* Local Legislators Speak Out on Charlottesv...
* Illinois lawmakers blast President Trump's...
* Trump's 'Both Sides' Comments Draw Harsh L...
* Hultgren backs change to Voting Rights Act...
* Genevans respond to Charlottesville event ...
* Unicarriers President James J. Radous III ...
* Oswego Pastor Gives Prayer on US House Flo...
* Trump just gave the most insane press conf...
* Naperville's Lauren Underwood to run for R...

* Durbin: Trump 'sabotaging' ACA, bipartisan......
* Durbin: Trump 'sabotaging' ACA, bipartisan......

* Senator Tammy Duckworth: "What's Wrong wit......
* Duckworth: Keep crop insurance protections......

* Consulate liaisions work together on strategy
* Morris speaks about anniversary of Fair Housing Act
* Rauner: Trump’s Charlottesville comments “damage America,’ and other Chicago news
* What's That Sound? Probably Air Show Practice
* The National Education Association needs to do better in the fight against white supremacy.
* Justifying white supremacy? Their efforts to do so further taint the concept
* George Maher Sheridan Road Mansion Sells, To Be Rehabbed
* Black, Millennial, Female and… Conservative
* U.S. Supreme Court Upholds Religious Liberty in Church Playground Case
* Roskam: Trump's comments about Charlottesville "not acceptable"

* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

* ASUS ZenFone 4 line of devices unveiled
* Facebook downranks video clickbait and fake play buttons
* Essential Phone will get 2 years of updates, new wireless accessories every few months
* Sprint ‘clarifies’ BlackBerry KEYone bloatware situation, software update coming soon
* Nokia 8, Galaxy Note 8, accessibility rate | #PNWeekly 266 (LIVE at 3pm Eastern)
* Sprint’s ‘exclusive’ Essential Phone pre-orders are underway with Flex Lease discounts
* The Nokia 8 is a 2017 flagship being released only in Europe

* Lopez faces Rangers in second start for Sox
* Terrerobytes: Trials, errors for White Sox bullpen
* White Sox Minor League Update: Aug. 16, 2017
* White Sox hit 4 homers, but Dodgers walk off
* Delmonico adds 2-homer game to historic rise
* Sox homer on 1st pitch in 2nd straight game
* White Sox hit 4 homers, but Dodgers walk off

Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

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