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Huge collateral damage caused by Rauner AV

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* The Civic Federation writes about the governor’s AV of SB1. You should read the whole thing, but let’s focus on this topic…

Therefore, school districts that are subject to PTELL [property tax caps] and school districts that have TIF districts within their borders are more likely to lose out on additional funding the State may provide in FY2018 and future years. School districts not subject to PTELL and that do not have TIF within their borders are more likely to gain some of that additional funding.

* Just one of those two changes made by the governor would cost the Peoria Public Schools a million bucks…

Rauner has said cutting subsidies for tax-caps and TIF districts would end school districts’ tendency to under-report property wealth and, subsequently, their capacity to pay for an adequate education. But TIF districts have long been a bone of contention between municipalities and school districts, with school districts saying TIF districts deprive them of revenues generated by growing property values. Ending the subsidies would be a double-whammy.

PPS officials estimate the district could lose $1 million without a state subsidy for the effects of TIF districts. [Emphasis added.]

A million bucks, just from one change in one school district.

* Now, imagine the ruckus once these other school districts do their own calculations…

Wait. Hasn’t the governor said for weeks and weeks that his AV wouldn’t take any money from any district? Hmm. That’s odd.

* So, why did Gov. Rauner make these brand new changes?…

* I explain more in my weekly newspaper column which was written before those Peoria numbers were released. Click here.

Talk to you Monday.

posted by Rich Miller
Saturday, Aug 5, 17 @ 3:13 pm

Comments

Will ISBE be able to project the TIF and PTELL losses in their district-by-district analysis? If so, will the governor let them?

Comment by Roman Monday, Aug 7, 17 @ 9:01 am
Barickman appears to be dodging the “trash can van” on some of the SB 1 and AV issues now-

From this morning on WGLT:

http://wglt.org/post/new-school-district-funding-levels-could-come-today

State Sen. Jason Barickman, a Republican from Bloomington, is assigned by the governor to work on a compromise.

“In our negotiations, the discussion about TIFs, specifically, have centered around whether we could make prospective TIF districts. In other words, TIF districts that don’t exist today, but are set up in the future,” said Barickman.

But Rauner’s veto leapfrogs his own negotiating team and recalculates how much property tax each school district can raise by simply pretending they can access full property values, like TIF restrictions don’t exist.

Barickman—who has filed multiple school funding plans—said he didn’t see the governor’s veto until it was made public.

“I’m a Republican legislator. I’m certainly not the governor,” Barickman said.

Comment by Anon221 Monday, Aug 7, 17 @ 9:06 am
Will Repubs vote for or against their affected school districts in an override attempt? After what Rauner was able to do to the state museum, as a test for larger destruction of K-16 education, it seems his disdain for the residents of Illinois may go unchecked.

Comment by My New Handle Monday, Aug 7, 17 @ 9:10 am
Is there a version of the map which names the school district when the mouse is over it?

Comment by Anyone Remember Monday, Aug 7, 17 @ 9:16 am
I’ve been looking for a direct link to that map where the sources are actually readable, but not having much luck.

Also, where does one go to understand TIF and PTELL stuff? I’m reading about it on the state revenue site, but holy moly is it confusing

Comment by JohnnyPyleDriver Monday, Aug 7, 17 @ 9:18 am
What has to be embarrassing for a Mr. Barickman and a Ms. Bourne is that they really are utterly clueless to what the real damage looks like in school districts when they both are more concerned in repeating IPI or Proft narratives… and far less concerned… about the people… students… hurt.

Taking Mr. Barickman or Ms. Bourne seriously on this is folly.

Comment by Oswego Willy Monday, Aug 7, 17 @ 9:20 am
The Map:

http://fundingilfuture.org/sb1_avdata/

Use the menu choices on the right for the different layers.

Comment by Anon221 Monday, Aug 7, 17 @ 9:22 am
Other SB1 and AV resources for comparisons:

http://fundingilfuture.org/sb1/

Comment by Anon221 Monday, Aug 7, 17 @ 9:24 am
So PTELL, which keeps property taxes low, or at least lower than they otherwise would be, something the Governor professes to really, really want, penalizes the schools in districts where the local governments try to keep property taxes down. Brilliant

Comment by SAP Monday, Aug 7, 17 @ 9:27 am
Thanks Anon221, I must have loaded that first page 3 times, but didn’t realize a map would load!

Comment by JohnnyPyleDriver Monday, Aug 7, 17 @ 9:30 am
I don’t know the exact $$, but Urbana will surely be hit hard, since we have used TIF extensively (and successfully) to build our downtown. It is very frustrating that the IPI ideological hacks with neither experience nor interest in governing should commandeer public policy in this manner.

Comment by jake Monday, Aug 7, 17 @ 9:35 am
TIF’s. Government picking winners and losers. End it now. UnAmerican.

Comment by blue dog dem Monday, Aug 7, 17 @ 9:50 am
I am no expert on TIFs, but don’t they have a temporary lifespan? And once they expire, the property taxes are then available for school districts, in which case the state funding for such school districts should decrease as they are able to tap those local revenue sources? If so, then there should be numbers run on those scenarios to project post-TIF state and local funding resources several years into the future.

Comment by My New Handle Monday, Aug 7, 17 @ 9:59 am
This is especially frustrating in School Districts that span multiple municipalities.

One is using no TIF’s and the other municipality is using copious TIF’s. For years, we have been told that this is of no consequence because the State would even it out in funding. Now, Rauner’s changes would undo that.

If this cuts funding to the shared district, we will all be on the hook for increased property taxes to make up for the loss in State funding.

Thanks.

Comment by illini97 Monday, Aug 7, 17 @ 9:59 am
Anon221, thank you.

Comment by Anyone Remember Monday, Aug 7, 17 @ 10:00 am
Kind of late in the year for this confusion.

Comment by wordslinger Monday, Aug 7, 17 @ 10:12 am
Well Brady doesn’t think the override is possible. Wonder how much damage he’s willing to let his district have in the long run. Maybe some of the districts that are going to be hurt by the AV need to put some serious pressure on him. I’m sure the one that has a “Brady Room” wouldn’t be buckin’ him. https://tinyurl.com/yctwhllr (And I’m not naïve enough to believe he would vote for an override, but he might need to think long and hard how his compliance and capitulation to Rauner is going to look when he comes up for re-election and the damage to the districts has been felt for a year or more if SB 1 fails.)

Comment by Anon221 Monday, Aug 7, 17 @ 10:19 am
Brady will vote with Rauner no matter how much harm it will do to his district.

Comment by Mama Monday, Aug 7, 17 @ 1:39 pm