School funding plan unveiled
Democrats' proposal would raise income taxes, expand sales tax
Friday, February 9, 2007
SPRINGFIELD - A group of Democratic lawmakers on Thursday unveiled the latest version of a plan to revamp Illinois' education funding system: raise income taxes, expand the state sales tax to include consumer services and provide property tax relief.Legislators and interest groups have debated the issue of school funding reform for years, but they have failed to agree on the specifics. Supporters of the new plan believe they will have better luck in 2007.
"I think the political will is there," Sen. James Meeks, D-Chicago, said at a state Capitol news conference.
He and Rep. David Miller, D-Calumet City, are spearheading the effort through identical pieces of legislation, Meeks' Senate Bill 750 and Miller's House Bill 750.
Under the legislation, the individual income tax rate in Illinois would rise from the present level of 3 percent to 5 percent - a hike of 66 percent. The corporate income tax rate would rise from its present level of 4.8 percent to 8 percent - also a hike of 66 percent.
In addition, the state sales tax would be expanded to cover consumer services, such as lawn care and haircuts. The plan also calls for $2.7 billion of property tax relief throughout Illinois.
Supporters say the measure would:
- Generate a net revenue increase of more than $5 billion a year.
- Provide downstate schools with more than $700 million in additional funding every year.
- Set up a more reliable method of pay-
- Provide downstate schools with more than $700 million in additional funding every year.
- Set up a more reliable method of pay-
ing off the state's pension debt by establishing a flat-dollar amount - at least $3 billion - that would be paid annually over a 50-year period.
Meeks said the plan is "designed to reform the way we fund education here in the state of Illinois, taking the burden off of our property taxpayers."
"Education funding is a statewide problem, and it has been for a long time," Miller added. "We've had enough time to talk about it."
Even if the new proposal eventually wins approval in the Senate and House, it would face an uncertain future at the hands of Gov. Rod Blagojevich.
"The governor has been very clear in his opposition to raising the income tax or sales tax," said Blagojevich spokeswoman Rebecca Rausch.
Blagojevich agrees with Meeks, Miller and their coalition about the need to increase funding for public education, she said. The governor also agrees that Illinois' existing tax structure must be fixed, but he believes the problem is that individual taxpayers are unfairly burdened, Rausch added.
Meeks said he thinks the Senate and the House could muster enough votes to override a potential veto from Blagojevich.
Overriding any veto requires a three-fifths majority vote in the Senate and the House. Democrats hold 37 of the 59 seats in the Senate, so in theory they could override a veto without the help of Senate Republicans.
In the House, however, Republicans would have to provide some of the votes needed for an override.
House Republicans from central Illinois expressed skepticism Thursday about the newest school funding plan.
"I think all that stuff's dead on arrival because the governor has made it clear he's not going to raise any sales or income taxes," said Rep. David Leitch, R-Peoria.
"There's probably more questions than answers," said Rep. Bill Mitchell, R-Forsyth. "If it was easy, we would have done it a long time ago."
"We need to do something," said Rep. Raymond Poe, R-Springfield. But he added that he isn't sure if the Meeks-Miller legislation is the solution.
Besides Meeks, Miller and some of their fellow lawmakers, backers of their proposal include the Center for Tax and Budget Accountability, A-Plus Illinois, Voices for Illinois Children, the Illinois Federation of Teachers and Council 31 of the American Federation of State, County and Municipal Employees.
"All school districts across the state (would) get an increase in funding," said Ralph Martire, executive director of the Center for Tax and Budget Accountability. "No school district loses a penny."
Martire noted that "the bottom 60 percent of income-earners will not pay more in taxes" if the legislation becomes law. He said the remaining 40 percent of income-earners would pay more - about 1.1 percent to 1.3 percent of their income.
Adriana Colindres can be reached at 217-782-6292 or adriana.colindres@sj-r.com.com.
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