My name is Tom Oates and I am superintendent of Marion Community Unit School District #2. Our district is also a member of the Large Unit District Association - LUDA - and we have participated in the development of an Education and Finance Plan that will be given to this committee in the near future. I appreciate the opportunity to address this committee, especially with Chairman Bob Leininger having to sit and listen to my comments.     

     I don't believe we would be here today if the public schools had the necessary funds (a) to provide the required programs and services, (b) to maintain and provide adequate facilities and (c) to compensate employees in a manner that would attract quality certified and support personnel.

     I believe a funding formula should recognize the four main components of our present formula.

• the cost to educate a student at a particular grade level and/or for a specific subject
• wealth (state, local or regional)
• the number of students served
• the number of poverty students served

     In fact, I imagine Bob even remembers our attempts in this state to define the cost of educating students, even though we didn't get the job done, this is still important information that needs to be defined.       

     I believe the poverty component must recognize the number of poverty students actually being served in a district as opposed to a questionable number generated by the ten year census count. (Other sources: a public aid count, the number of free and reduced lunches or a similar count that is generated locally.)

     I have also prepared a few brief statements (possibly solutions) pertaining to the funding of Illinois public schools.

• Fiscal equity (spending comparable dollars for the education of each Illinois student) plus adequate funding must exist. This is currently not present.
• The enactment of tax caps (PTELL) has had a negative impact on the ability of in any districts to provide necessary educational programming. This law has limited districts access to local funds, and should be revised.
• Consider implementing a three year average for ADA in the formula to soften the fiscal impact of losing students.
• If the EAV continues to be utilized there is a need to assess all property at its fair market value as required by law. 
• The main source for funding public schools should be the income tax.
• There must be a willingness to shift available dollars from wealthy to poorer geographic areas of the state if we really believe equity is important.
• Consider the merits of providing additional financial incentives for unit districts. Lowering the unit rate from .03 to .029 would require an additional 75M.       

The solution for a funding formula will require the General Assembly to respond to the following issues.

•  Willingness to shift money from wealthy to poorer geographic areas of the state if funding is not significantly increased. (Equity Issue)
• Willingness to provide the funds necessary by supporting unpopular tax increases. (Adequacy Issue)
• Willingness to fund required categorical programs or remove the requirements to provide services at present level. The inadequate funding for required special education services has had a significant negative impact on most districts.
• Willingness to consider the advantages and disadvantages of school consolidation, understanding the political consequences.

      I would also suggest we review some of our current spending habits.

• The cost to increase the foundation level (FL) in the current formula by $100 (from $4,425 to $4,525) is approximately $125M.
• This past legislative session the legislature appropriated at least $250 M for the member initiative program (money for individual legislators to spend as they desire). This could have increased the FL by $200. This would be $716,636 additional dollars for our district.
• The ADA grant spends approximately $1 10 M. This could have increased the FL by $88.
• The hold harmless provision of the formula spends approximately $65 M. This could have increased the FL by $52.

      In many cases we find that it is not politically popular to implement identified solutions.

     In closing, I would emphasize that I believe Illinois public schools, especially this on Southern Illinois, are doing a good job within the parameters they must operate.  I commend this committee for your efforts to improve the funding formula.  Thanks for your attention.