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EFAB

Ronald Ellis, CPA and candidate for the 59th State Senate seat

     Thank you for the opportunity to speak with you this afternoon about the funding of our children's education.  My name is Ron Ellis and I want to be up front with you and tell you that I am the Republican candidate for the 59th State Senate seat; but, more importantly I am a citizen, a taxpayer and the father of children in the education system today.         

     Folks, we have a very serious crisis, and I do mean crisis, in how our kids education is funded here in the State of Illinois.  The most ridiculous way to fund education is through real estate taxes.  As you hold these meeting around the state, I predict that the one common denominator is that something has to be done about real estate taxes, Period!  You cannot continue to have real estate taxes raised every year and expect to have people continue to move here, or to even have them continue to live here.       

      As long as we have a system that encourages and promotes the funding inequity between Cook and the collar counties and the rest of the State, we are ALWAYS going to have a problem in how education is funded.

     There are 3 reasons that people move into an area:

          1.  For the lifestyle that the area has to offer, 
          2.  For the jobs that are in that area, and 
          3.  Because of the school systems.         

     Here is Southern Illinois we have No. -1 nailed.  In my opinion, there is no better place to raise a family than right here in Southern Illinois.  But our problem, is numbers 2 and 3.  Jobs and Schools.         

     We do not have the job base here in Southern Illinois that will provide the wages necessary for families to move here let alone stay here.  That is why when our kids graduate they have to move away to some other part of the country to sustain their families and then move back to Southern Illinois when they are ready to retire, if the can they afford the real estate taxes.         

     And our schools--folks, when you have school districts spending as much as $16,000.00 per student and other school district spending as little as $4,425.00 per student you have a major problem.  Isn't it our job and obligation as parents and leaders to make sure that our children have the opportunity to compete not just in Illinois but the global economy we have today?  Isn't it our job and obligation as parents and leaders to put our children into a position of being the future leaders of not only Illinois but also the United States of America?  

     If the answer to those two questions was yes, when are we going to start acting?  Look around this room--the reason we are all here today is because we are fighting for our kids, the reason Governor Ryan set up this panel is he realizes there is a problem with how education is funded, and the reason you all agreed to be on this panel is that you also realize there is a problem with the way education is funded.        

     So we all realize there is a problem, what's the answer? Well, here's my idea, grab your pen or pencil and please take some notes. I will give you a copy of what I'm saying when I'm done, and if you have any questions I will be happy to answer them.

THE OBJECTIVE:  TO CUT REAL ESTATE TAXES & FUND OUR CHILDREN'S EDUCATION EQUITABLY :
To fund education equitably, we need to reorganize a few things: Savings
1. Combine the 3 education funds (Common School Fund, Education Assistance Fund, and the Common School Special Account Fund) into one account for better tracking and more control. By doing this we won't again have what happened in the 90th General Assembly-- where SB 1017 was passed.  SB 1017 had a $4 million diversion of funds from the Education Assistance Fund to pay for enhancing the Cook County criminal justice system. Now I'm still trying to figure out what the Cook County criminal justice system has to do with education, but somehow it must because the money went there.  
2.

Have the gambling and lottery monies be truly supplemental like they were sold and voted on by the people of Illinois. The money goes in on the top and goes on the bottom. It is not supplemental. States take 6/30/00

$845,000,000
3. Quit paying for the free education of prisoners. They can put some sweat equity into their education, like those of us who did not break the law.  If they had to work for their education, they might just appreciate what they have earned. They can earn money while in prison, we should never have trash along the highways.    Based upon total budget / Estimated $25,000,000
4. Combine the Comptroller and Treasurer's departments into one office.  FY0I Budget--Comptroller budget $55,717,000/ Treasurer's budget  $839,783,000 / Total budget for both depts. is $895,500,000.  By combining we would save at least 15% because of duplication of services.  Total savings

$134,325,000

 

Total Saving by Reorganizing--Billion dollars

$1,004,325,000

  NEW MONEY -- into education  
  1% income tax increase for both individuals and corporations.  Additional $2,974,000,000
  Total additional money to education by savings and new money $3,978,325,000

Per the NEA--Ranking and Estimates for the school year 1999-2000, Illinois had 2,016,409 students in public education K-12. With the additional savings and new money of $3,978,325,000 dividing that by the 2,016,409 students that would be an additional $1,973.00 per student. 

The State of Illinois is currently spending a base amount of $4,425.00 per student By increasing the spending per student by the additional $1,973.00, we would be putting a base total of $6,398.00 That's an increase of 44.6%. 

When we do this, we can then cut real estate taxes by 40% and freeze them. Every one will be in a win/win situation. Currently local real estate taxes make up at least 68% of the local real estate tax bill. We will not be touching higher education one iota, local school districts will still receive about 20% from the local residents and business' and our kids will be having $6,398.00 spent per child vs. $4,425.00 currently being spent, once again a 44.6% increase.  

Individuals and corporations will be paying 1% more in income tax, but ALL land owners  will be receiving a 40% real estate tax break. Real estate taxes will be frozen so people  and business' will be able to budget their expenses and senior citizens will not be forced to  sell their property when they retire because they can no longer afford to pay the ridiculous  and exorbitant real estate taxes as they continue to rise every year, and the General  Assembly will not be able to force the local school districts to raise the real estate tax  levee every year like they currently do. 

Folks, this is not a Republican issue or a Democrat issue. It's a right vs. wrong issue. The questions that have to be asked are, are we truly going to put our children first? And are we going to prepare them for the 2lst Century? Or are we going to play politics? 

I hope we put our children first and do what's right for them.

Thank you for your time and your allowing me to share some ideas with you about the funding of our children's education and I truly hope to be a part of the solution come January. Have a good day.