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TESTIMONY FOR 9/28/2000 FINANCE HEARING The Tax Cap School districts in Cook County cannot exceed a predetermined limiting rate by fund as determined by the previous years Consumer Price Index (CPI). The limiting rate is determined by the prior year extension divided by the current year Equalized Assessed Valuation (EAV) minus new property within the various capped funds. The problem that arises is that the new money must be prorated into specific funds and cannot be put into the fund most in need of the monies. A more desirable solution would be to multiply the CIP by the prior year capped extension, but then allow the allocation of that money to the fund in most need, regardless of the individual fund rate ceiling. This solution would not change the spirit of the tax caps but would allow each district the flexibility of allocating scarce resources to the fund in most need of these monies. Thus, the capped funds would be treated as one 'Super Fund." Another situation arises when a district passes a rate increase referendum. While the voters may have approved a specified increase in the tax rate for a particular fund, the district cannot access the full amount over more than a five year period because of the tax caps. For example, our district promised the voters that if they approved an Education Fund referendum increase, we would not increase the total amount of funds we requested in the levy for at least three years. We were able to accomplish this feat because we traded a decreasing dollar amount in the Bond and Interest Fund for additional dollars in the Education Fund. If the district wanted to incrementally apply the approved increase over eight years, we would loose a portion of the approved rate increase because it wasn't all implemented within five years. Conversely, if the district wanted to implement the full amount or some portion thereof of the voter approved increase in one year and it exceeded our limiting rate factor as defined by the tax caps, we would not be able to implement that amount even though it may be the understood will of the voters. In addition, to a large extent the limiting rate is effectively decreased for many districts because new property must be subtracted before the actual applied limiting rate is determined. Construction and Related Issues The statutory rate limits in the Operations and Maintenance Fund (250), the Life Safety Fund (50) and the debt limitation of a school district (6.9% of the EAV) have not kept pace with inflation and need in Southwest Cook County. There exists little disagreement over the fact that many of the public school facilities throughout the State of Illinois are deteriorating and in need of substantial renovation or replacement if we are to provide an appropriate educational program for the children of this state. Very little in the way of Construction Grant funds have come to the Southwest Suburbs. It appears that the tax money that is sent to Springfield from this area goes, in large part, to fund projects in downstate areas. Raising the rate limits, even doubling them, at least give the local school district an opportunity to provide state-of-the-art facilities in the Southwest Suburbs for our current students who will be the leaders of the twenty-first century. General State Aid State funding currently accounts for 11% of our total revenue with federal contributions totaling 2.5% and the local tax payers paying for 86.5% or the vast majority of our revenue. General State Aid accounts for $527,000 with an additional $131,000 for the Hold Harmless provision of the formula and yet there is talk of eliminating that Hold Harmless provision. We currently receive $264 per student yet the tax credit which, in practice benefits private school parents, is $500 per student. If we received if that amount per student, we would receive an increase of nearly half-a-million dollars (approximately $472,000)! If we received $1,000 per student it would generate $2,000,000 for our educational programs. Any other number in increments of $1,000 per student should be multiplied by that $2,000,000 figure to determine the total amount for our school district. As to a dollar amount to adequately educate a child, the figure of $8,000 per student would be a bare minimum, and that is only if there is equity between the different types of school districts as organized in the State of Illinois. Federal Aid and Requirements While federal revenue accounts for less than 3% of our expenditures, the requirements of IDEA- 97 and its predecessor, PL 94-142, accounts for a full 38% of our educationally-related expenditures for 16% of our student population. When we did an analysis for the twenty-year period from 1975 to 1995 as we prepared for the Education Fund Referendum in 1997, it was a very enlightening exercise. We found that, after accounting for inflation, our regular education expenditures were essentially flat and did not increase over that twenty-year period. However, during that same period, Special Education expenditures skyrocketed over 325%. In addition, our percentage of revenue from State sources went from nearly 60% ($407 per student) in 1975 to approximately 9% ($151 per student) in 1995 with the local tax payer being burdened with the difference. The academic performance of the students in our district is exceptional as measured by state- mandated assessments with four out of five of our schools exempt from the School Improvement Process because of our extraordinary academic performance. Yet when an individual asks why we in the Field of Education generally don't achieve better results with the high-potential students considering all the money that is given to education, one learns that it is irrational to make that statement because any real increases in costs are usually spent on those students in Special Education who, generally, have the least potential to vastly improve the academic performance of our schools. The amount of funds provided by the State of Illinois for Gifted Education is abysmal, appalling, shameful and embarrassing. |
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