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 Weekly Review
Provided through the Generous Support of the McCormick Tribune Foundation
CTBA Weekly Review March 18, 2008  
CTBA Quick Links
In This Issue
Education Funding Reform
School Construction
Teacher Pay
State Budget: Attend Public Regional Hearing
Calendar
Education Funding  
Tell Your Senator to Co-Sponsor SB 2288
 
Another Senator has signed on to SB 2288!
 
Please contact your Senator and tell them to co-sponsor SB 2288!
 
Senate Bill 2288 provides a new, permanent revenue source for schools, property tax relief for homeowners and $1 billion for debt service for a state infrastructure program.
 
 
SB 2288 now has 20 co-sponsors and has received support from many education funding reform coalitions, including A+ Illinois. 
 
Please continue to call or write your Senator and tell them to co-sponsor SB 2288. 
Take Action Here. 
 
                                                            
  • SB 2288 makes significant changes to tax and school funding laws.
  • It reduces our reliance on property taxes to fund schools by mandating an annual property tax abatement of $2.9 billion (indexed to inflation for each subsequent year) with every property owner seeing a minimum of 20% property tax relief on the portion of the bill designated to education.
  • The Invest in Illinois Fund is created and funded with $1 billion each year to provide funding for debt service and fees on bonds for capital projects, such as roads and schools, throughout the State.
  • The bill also mandates a $300 million annual appropriation (indexed for inflation) for grants to institutions of Higher Education.
  • Increases for Early Childhood education are phased in, from $45 million in 2009-2010 to $180 million in 2012-2013.
  • Increases to the Foundation Level are phased in, raising it from $6,044 for the 2009-2010 school year (from $5,734) up to $6,974 for the 2012-2013 school year.  The Foundation Level and Supplemental General State Aid (Poverty Grants) are automatically tied to increases to the Employment Cost Index to control for inflation.
  • Creates a School Improvement Partnership Fund to target resources to proven programs such as smaller class sizes, literacy coaching, longer school days and teacher mentoring;
  • Maintains and expands grants for high-poverty schools
  • The personal income tax is increased to 5% (from 3%), and the corporate income tax is increased to 8% (from 4.8%).
  • Family Tax Credits are provided to single taxpayers earning less than $26,695 and married couples earning less than $53,694.
  
CTBA has numerous reports outlining the education funding problem in Illinois and how to fix it.  Visit the education page of the CTBA website for more information. 
School Construction  
 
$150 million authorized for passed over school construction needs

House Bill 4130, sponsored by Rep. Lisa Dugan (D-Kankakee), unanimously passed the House on March 11th.  The legislation authorizes $150 Million in state spending to pay for construction projects in 24 school districts that have been delayed since 2003.
 
The bill is now under consideration in the Senate.
 
However, with the state already facing a deficit for current fiscal year 2008, it is uncertain if funding will be available for these school construction grants. Progress on the building plan is likely to depend on a comprehensive revenue reform plan like that proposed in SB2288.  SB 2288 provides $1 billion for capital construction funding.
 
Teacher Pay  
Teacher Pay Continues to Decline

A new Study by the Economic Policy Institute finds that compared with workers in occupations that have similar education and skill requirements, public school teachers face a large and growing pay gap.

Over the last decade, the teacher pay gap increased 10.8 percentage points-from a 4.3 percent shortfall for teachers in 1996 to 15.1 percent in 2006.

The study, The Teaching Penalty: Teacher Pay Losing Ground provides a detailed analysis of trends in teacher pay. In 1960 women teachers had an annual wage advantage, of 14.7 percent compared to other similarly educated women. This annual pay difference was reversed to a 13.2 percent annual wage deficit by 2000.

The authors, Sylvia Allegretto, Sean Corcoran, and Lawrence Mishel also compared teachers' weekly pay to that of a core group of occupations with similar educational and skills requirements: accountants, reporters, registered nurses, computer programmers, clergy, and personnel officers.

The teacher pay penalty translates to weekly earnings that are, on average, about $154, or 14.3%, lower than those of people in the comparable occupations.

Particularly ominous for attempts to retain good teachers is the study's finding that the penalty is severest among the most experienced teachers. For early-career teachers (age 25-34), today's pay penalty is only slightly larger than in 1996 (a change of 0.5 percentage points). The brunt of the widening pay gap has fallen on senior teachers (45-54), whose pay deficit within their age group has grown by 18.0 percentage points among women (who comprise the vast majority of teachers) since 1996.

The teacher pay disadvantage grew markedly during the latter half of the 1990s. While earnings of college graduates, on average, increased by 12.7 percent, teachers' earnings did not grow at all.  

Some critics, while acknowledging the existence of the pay gap, argue that this gap isn't so much of a problem since teachers' lower pay is outweighed by more generous health insurance and pensions. The authors examined that claim and found that taking total compensation into account would have narrowed the pay gap by just three percentage points in 2006 (from 15 percent to 12 percent), and would not have altered the general trend.

The teacher pay gap is, to a great extent, a problem schools should have seen coming, as the study's breakouts of trends by gender show. From 1996 to 2006, the pay gap for male and female teachers grew pretty much in tandem - from a 0.7 percent to a 10.5 percent deficit for women and from a 15.1 to 25.5 percent shortfall for male teachers.

Even earning an advanced degree yields only a small improvement in the gap. Among those with a bachelor's degree only, teachers earned approximately 12.2 percent less than their peers in other occupations in 2006, while the gap between teachers and non-teachers with a master's degree was almost as large, 11.3 percent.

The study offers the most thorough examination to date of the trend in relative teacher pay. In addition to breaking out data by gender, seniority, and education, the authors examined and compared their results, which are based on decennial Census data, to results from other researchers. They found broad consensus on the fact of a teacher pay disadvantage that has grown over time. The only exceptions, they report, are the work of two researchers who based their findings on certain Bureau of Labor Statistics' data, which the BLS itself advises on its own web site is not appropriate to this task.

 
State Budget  

Attend Regional Budget Meetings

Last week House Speaker Michael J. Madigan began a series of 19 regional hearings on the state budget.
 
The hearings are designed to give community leaders, business owners, labor officials, service providers, advocacy organizations, health care facilities, school districts, colleges and local residents an opportunity to share their views about state budget funding priorities, ways to reduce costs and means to improve government efficiency.

"Lawmakers are very interested in learning from the past and taking a new approach to crafting the state budget," Madigan said. "They have found similar hearings held in recent years to be helpful when tackling challenging issues of statewide significance. Our hope is that these forums will increase the transparency of the budget-making process, complement the work of standing House
appropriations committees and perhaps provide a new model for us to follow in the future."

To see the full schedule click here.  You can also visit the Illinois House Democrats website at www.housedem.state.il.us
 
 
Read CTBA's analysis of the Governor's proposed Fiscal Year 2009 Budget here or visit www.ctbaonline.org
 
 
Calendar of Events  
 

WHAT? Understanding Appeals & Domestic Violence and Public Benefits

WHEN? March 18, 2008

WHERE?Naperville, IL

Presented by the DuPage Federation on Human Services

Register Here

 

WHAT? Center for Tax and Budget Accountability and the Paul Simon Institute at Southern Illinois University Annual Downstate Symposium

WHEN? April 23, 2008

Details to Follow

 

 

WHAT? Immigrants and Public Benefits & Putting the Pieces Together

WHEN? March 19, 2008

WHERE?Naperville, IL

Presented by the DuPage Federation on Human Services

Register Here

 

WHAT? Housing Action Illinois 2008 Convention:  The Changing Landscape of Affordable Housing - Finding Our Way Together

WHEN? May 1 - 2, 2008

WHERE? Naperville, Illinois

 

WHAT? Making the Connection Basic Training

WHEN? Tuesday, June 10, 2008

WHERE? Naperville, IL

Presented by the DuPage Federation on Human Services the session contains practical information in an easy to understand format regarding many programs available to assist low income persons.

Register Here

 
 
 
Do you have something to share in the Weekly Review?
 
Please email Chrissy Mancini

 

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