CAT Tracks for April 5, 2005

CAT Tracks for April 5, 2005

EFAB v BLAGOJEVICH

Article from today's Chicago Sun-Times...

Lift education spending, governor's panel asks

BY KATE N. GROSSMAN Education Reporter

A committee appointed by Gov. Blagojevich Monday recommended increasing education spending by $2.3 billion, or an extra $1,441 per student -- basing their figure on an analysis of spending at successful schools.

Their figure, however, is far less than the $440 million in new spending the governor hopes to drum up, primarily by more than doubling the number of slot machines and gaming tables.

The Education Funding Advisory Board recommended spending $6,405 per pupil. The per pupil, or foundation level, is $4,964 now. Blagojevich hopes to raise that by $240.

EFAB, created by the state in 2002, used a formula devised by an outside consulting firm. They analyzed school funding levels at 147 schools where the majority of students tested at grade level. Between 4 and 37 percent of students were low-income.

EFAB board members know they are asking for a lot, but insist schools need it.

"In the economic climate, it will be a challenge," said Anne Davis, an EFAB member and Illinois Education Association president.

'Gaming alone won't do it'

But new gambling money, Davis and others said, isn't enough. The governor said Thursday he hopes to generate new money for education by expanding gambling.

"The gambling money is too small to address the serious shortcomings of school funding and its reliability as a source of revenue is too uncertain," said Art Berman, an EFAB member and former state legislator who has worked on school finance reform efforts for years.

Critics also worry the gambling money may get diverted to other areas, as in the past. Between 1975 and 1985 lottery proceeds weren't earmarked for education. Some revenue went to education, but the funds went into the state's general revenue fund.

Starting in 1985, lottery revenues went directly into a school fund, but it is difficult to determine whether the money boosted education spending overall or if other government sources were simply reduced to compensate for the extra lottery money. Critics say it was the latter.

Under the governor's plan, the new gambling money would boost education spending and the governor would "be happy to look for ways to codify that," said Elliot Regenstein, the governor's director of education reform.

"The governor has no intention of moving backward or siphoning it off elsewhere," said Regenstein. But, he added "Twenty years from now, the lottery shell game could be increased."

'Reform is the answer'

Because of uncertainties like that, Davis, Berman and a growing number of advocates want to fundamentally reform the way Illinois pays for public education. In Illinois in 2004, property taxes made up 53.8 percent of the education budget. Federal revenues made up 10.3 percent; 35.9 percent came from the state, one of the nation's lowest percentages.

Berman and Davis support a reform package pending in the state Legislature that reduces the reliance on property tax -- which exacerbates inequities between rich and poor districts. They want to increase the income tax and expand the sales tax.

The governor wants to increase education funding, but is opposed to raising taxes, Regenstein said.

"EFAB's work is just education while the work of the governor is to balance against other needs," Regenstein said. "Our feeling is that the General Assembly hasn't given enough weight to education for years . . . we hope to keep that on the right trajectory."

Foundation level funding increased by $250 in Blagojevich's first year and $164 last year. To date, he is not on track to meet his campaign pledge to raise the per pupil amount by $1,000 over four years.

And the Governor responds in an article appearing in today's St. Louis Post-Dispatch...

Big increase is sought in education funding

By JOHN O'CONNOR
The Associated Press

Goal is unrealistic, says governor's office

SPRINGFIELD, Ill. - An advisory panel called Monday for a 29 percent increase in Illinois' basic level of spending for each student, a move that would cost $2.3 billion a year.

The Education Funding Advisory Board recommended spending $6,405 per pupil, up from $4,964. The board said it followed long-established guidelines to determine how much the state should spend on each child.

Gov. Rod Blagojevich's top education aide called the board's recommendation unrealistic. The Democratic governor last week proposed expanding riverboat gambling to pump $300 million into schools and increase per-pupil spending to $5,204.

"We just want to keep moving the ball forward and increasing it as much as we can within the parameters we've set of not increasing taxes," said Blagojevich's director of education reform, Elliot Regenstein. "We'd love to be able to guarantee a foundation level of $6,400 per student, but unfortunately, state government's revenue growth does not allow us to do that."

But board member Art Berman, a former state senator, called the board's action "proper, courageous and necessary." He dismissed the notion that such a huge increase is impractical given that the state will wrestle with a deficit of at least $1 billion in the budget year that begins July 1.

"The practicality that we're looking at is the needs of our children," Berman said. "We are very committed to urging the governor and the legislators to address the needs of our children to provide a basic, adequate education for every child in Illinois' public schools."

Any recommendation on school funding always stirs debate in the Legislature, which is heading into the final two scheduled months of its legislative session.

Blagojevich has said he would oppose general tax increases, including those called for by an earlier education funding advisory board. That board recommended increasing sales or income taxes and reducing property taxes as a more equitable way to fund schools.

After increases of $860 million in his first two years, Blagojevich earlier this year proposed only a $140 million increase for education because of the budget problems. His proposal last week would make the total increase $440 million by more than doubling the number of slot machines and table games allowed at Illinois' nine riverboat casinos.

Blagojevich had promised to oppose gambling expansion during his 2002 campaign.

Senate President Emil Jones and others have called for a sweeping overhaul of the way Illinois pays for education, similar to the tax swap the funding board proposed in 2002.

A spokeswoman said Jones is pleased with the new recommendation but wants to see details of the proposal before saying more.