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*** UPDATED x1 - Cullerton responds *** Manar proposal whacked by GOP

Wednesday, May 4, 2016 - Posted by Rich Miller

* The Illinois State Board of Education has run Amendments 1 and 2 of Sen. Andy Manar’s education funding reform plan through its modeling program and has issued a report. Click here. Manar has introduced a third amendment which wasn’t looked at, however. He claims the new amendment would significantly alter the bottom lines.

*** UPDATE ***  Senate President John Cullerton…

“On May 3rd, the State Board of Education released a simulation of SB 231 (Manar), which would substantially change the current method of funding Illinois’ schools. The State Board’s simulation uses FY 15 data and compares the current school funding formula to the new formula proposed under SB 231. This morning, Floor Amendment #3 was filed to SB 231. As a result, ISBE’s model is no longer current.”

[ *** End Of Update *** ]

* From GOP Sen. Jason Barickman…

“I appreciate Senator Manar’s continued work on school funding reform, but the numbers make it clear that his proposal has taken a major step backward in the process. The data shows what many of us have feared—that his legislation has become a vehicle for a major bailout of the bankrupt Chicago school system, while wildly shifting funding around suburban communities, and creating a detrimental impact on downstate schools,” said Sen. Barickman. “To create a real solution to our broken funding mechanism, we must work with all parties at the table, including the education community, parents, lawmakers from both parties, and the Governor’s administration. In the meantime, we must immediately do what we can to provide certainty for our schools so they can open on time in the fall. We can increase the help the state is providing, by fully funding the existing formula for the first time in seven years. There is no reason that our students should be held hostage while we negotiate real reforms to the system.”

Chicago would receive an additional $352 million, according to an easier to read Senate GOP document.

* But some superintendents and others spoke on behalf of Manar’s SB231 in the House today…

Advocates who support fixing Illinois’ broken education funding system today urged a House task force on public education funding to take action on the state’s inequitable and unfair system, which has penalized students from cash-strapped districts for decades, hurting those who need help the most.

School superintendents and education advocates from throughout Illinois traveled to Springfield to testify at the House Education Task Force meeting. Participants are all members of the Funding Illinois’ Future (FIF) coalition and included: David Lett, Superintendent from Pana School District 8; Kristin Humphries, Superintendent of East Moline School District 37; Mike Gauch, Superintendent of Harrisburg School District 3; Jim Greenwald, Superintendent of Granite City School District 9; Mary Havis, Superintendent of Berwyn South School District 100; and Ginger Ostro, Executive Director of Advance Illinois.

All spoke at today’s House Education Funding Task Force in support of Better Funding for Better Schools (SB231), legislation that offers a fix to the state’s broken public education funding system. This system is a web of complicated formulas that result in less than half of all state education dollars going to school districts based on a local district’s ability to pay for local schools. More than half of state education dollars go to districts regardless of their wealth, shortchanging poor districts with students who have greater needs.

“We need action now,” said David Lett, Superintendent of Pana School District 8. “A statewide solution to our broken funding formula is what is needed. We cannot settle for anything less. Our students have waited for too long.”

Illinois has the most unfair school funding system of any state in the entire nation. Research shows that students living in poverty need additional resources in order to succeed. But, instead of giving them those resources, the state shortchanges students with the most need. This has created a system where wealthy districts in Illinois can spend as much as $30,000 per student, while the poorest barely spends $6,000. These inequities are holding generations of children back from realizing their full potential.

“There is unity and support across the state for Better Funding for Better Schools,” said Kristin Humphries, Superintendent of East Moline School District 37. “Let’s get this done for our districts, schools, and students. The time for action is now.”

  19 Comments      


*** UPDATED x1 - Mitchell won’t call it *** Graduated tax hike blasted

Wednesday, May 4, 2016 - Posted by Rich Miller

* Tribune…

A report from Gov. Rauner’s Department of Revenue found that a switch from a flat income tax rate to a graduated system would drive 43,000 workers out of state and lead to a loss of more than 20,000 jobs within the first four years. […]

Still, the report backs up opposition from Rauner, who said earlier this week that such a change in the state’s tax code would be “the straw that breaks the camel’s back for Illinois’ economic competitiveness.”

According to the revenue department, the proposal would also decrease the state’s gross domestic product by nearly $2 billion.

“The increase in the tax rate for persons in the higher income tax bracket, results in a decrease in the incentive to work for individuals in that tax bracket. Moreover, the increase in the tax rate results in such pronounced negative economic effects because this rate will also affect pass-through entities (small business income),” said the report. “Some of the tax increase will be absorbed by a decrease in personal income or business profits. Some other fraction of the tax increase will be translated into price increase (compared to the rest of the nation).”

* Meanwhile…

Illinois House Democrats delayed a measure to tax millionaires at higher rates if voters approved the plan in November.

Democratic state Rep. Christian Mitchell, the bill’s sponsor, says he plans to bring up the proposal Wednesday. Lawmakers were expected to consider the bill Tuesday but Mitchell says he’s trying to get more support and give absent members a chance to vote.

Don’t bet on it.

…Adding… From the IMA…

Speaking on behalf of thousands of manufacturing companies across the state, the Illinois Manufacturers’ Association expressed strong opposition to the graduated income tax proposals pushed by Democrat Rep. Christian Mitchell and Democrat Leader Lou Lang that will make Illinois’ top tax rate the 2nd highest in the United States.

“This is a $2 billion tax hike on successful job creators including many small and medium-sized manufacturing companies that pay taxes under the individual rate. This is exactly the wrong message to send to job creators when we need to grow our economy and create jobs for hard working men and women in Illinois,” said Greg Baise, president & CEO of the Illinois Manufacturers’ Association. “Illinois already has the highest property tax rates in the United States and now Democrats want to make our income taxes among the highest in the nation as well.”

Illinois manufacturers lost 15,000 good, high-paying jobs last year that averaged more than $70,000 in wages and benefits.

Baise added, “The IMA does support comprehensive tax reform and passage of pro-growth policies such as workers’ compensation reform that will stimulate job growth and capital investment in the state.” The IMA notes that these policies will also generate revenue for Illinois in both the short and long term.

The current flat tax is one of few economic advantages that Illinois enjoys.

    • The top tax rate under the Democrat plan is 9.75 percent
    • Businesses filing under the individual income tax rate also pay a 1.5 percent corporate personal property tax replacement tax
    • In total, the top rate on businesses and individuals will be 11.25 percent.
    • Illinois’ top tax rate will be the 2nd highest in the country trailing only California at 13.3 percent.

This is a tax increase contrary to claims by the sponsors who pretend that this is a tax cut. Under Illinois law, the individual income tax rate will be reduced to 3.25 percent in the future so their lowest rate of 3.5 percent on the graduated scale means that every single Illinois taxpayer will see an INCREASE on their tax bills.

*** UPDATE ***  As expected…

A proposal to move the state to a graduated income tax died in the Illinois House on Wednesday when the sponsor opted not to call the bill for a vote.

Rep. Christian Mitchell, D-Chicago, said he did not have enough votes to pass the proposed constitutional amendment that needed a three-fifths vote to pass the House.

Mitchell blamed Gov. Bruce Rauner for twisting arms on “three to five” Republican House members who Mitchell said were prepared to vote for the graduated income tax earlier in the week. He declined to name them.

  98 Comments      


*** LIVE *** Session Coverage

Wednesday, May 4, 2016 - Posted by Rich Miller

* Keep an eye on things via ScribbleLive…


  2 Comments      


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