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School Board News Bulletin
June 1997

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Lawmakers abandon school funding reform, adopt budget

School lobbyists said lawmakers "could not muster the political courage necessary to address the serious problem of inadequately funded public schools." They charged that on the final day of the session neither the legislative leaders nor the select "committee of eight" ever made an effort to meet to discuss an alternative school funding plan.

Earlier in the week the House had approved the Governor's reform proposal, a plan substantially similar to that of the Fair School Funding Coalition. The bill was defeated, however, in the Senate Revenue Committee. Repeated efforts were made to discharge the bill from committee and send it to the Senate floor for a vote. Many observers believed that, if called for a vote before the full Senate, the Governor's plan would have been approved. The motion to vote on the Governor's plan was denied, however, after Senate President James "Pate" Philip (R., Addison) personally opposed the Governor's plan.

Late in the session a counter-proposal was forwarded by Senate leaders. The Senate passed that substitute bill, which purported to add more than 400 million new dollars to public education. But the new plan allegedly was based on unreliable revenue sources (an increase in the cigarette tax and the message tax on telephones, pagers and voice mail). It contained no property tax relief component, included a "hold harmless" provision that would have lasted only two years and would have been prorated subject to appropriation. What is more, the new plan would have penalized school districts for making an extra local property tax effort. The bill was defeated in the House Revenue Committee.

In the waning hours a bill was pushed in the Senate to allow any school district to impose a local income tax. Each dollar raised by the income tax would have gone toward property tax relief. This last chance for school funding reform was handily defeated on the Senate floor.

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Related education issues stalled

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The FY 1998 budget

The $3,600 per pupil foundation level is far below the amount lawmakers believed--and most newspapers in the state reported--had been adopted. Due to an error in the last-minute rush to judgement, proponents of the budget in the House and Senate vowed that it contained adequate funds to provide a $3,950 per pupil foundation level.

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Moment of silence upheld

The unanimous opinion said: "By stating that the moment of quiet reflection shall not be conducted as a religious service or exercise, the statute indicates that Georgia is not advocating the moment of quiet reflection as a time for religious activity."

The moment of silence statute is the first such law in the nation to survive review by a federal appeals court, says Harlan Loeb of the Anti-Defamation League. An appeal to the U.S. Supreme Court is expected.

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More TIF abuses charged

Tax dollars diverted from schools in suburban Crestwood in Cook County, for example, have been used to rebate roughly 75 percent of all property taxes to local homeowners. The TIF funds also help defray the expenses of the Crestwood municipal government, according to Lee A. Harris, Palos Township school treasurer.

Harris said the Crestwood situation is but one example of rampant abuses of the TIF statutes by Illinois municipalities. TIF legislation became law in 1977 to invite redevelopment and stimulate corporate investment in economically depressed areas where development would not otherwise occur.

TIFs are financial incentives--primarily property tax abatements--that enable municipalities to use additional revenues derived from project growth for public improvements, engineering, planning and other constructive purposes. Municipal governments may use TIF funds either to retire municipal bonds sold to finance improvements or to pay for those improvements directly.

A TIF can remain in effect for up to 23 years, basically freezing the assessed valuation of the property within the TIF area for that entire time. TIFs also effectively freeze the revenues generated by the area for local governments, including school districts. All incremental growth in such revenues derived from improvements made in the TIF area are collected in a special fund used to pay for public improvements for the area.

As a recent report from the State Comptroller's Office notes, the Illinois Tax Increment Fund receives a continuing appropriation from the General Assembly of $14 million each year in sales tax revenues. Thus the state has a "vested interest financially because of the lost sales tax revenues that are dedicated to the TIF districts."

The report explains that "Illinois law requires the [TIF] area meet a statutory definition of a `blighted' or `conservation' or `industrial park conservation' area and that the municipality does not anticipate the development of the area without the adoption of the TIF. To be considered `blighted' an area must have a combination of five or more factors and it must be determined to be detrimental to the public safety, health, morals or welfare of the area."

These preconditions often are ignored in establishing TIFs. But no state agency currently has oversight authority for TIFs or serves as a watchdog against TIF abuses.

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NEWS FROM IASB

November 12 the final day for boards to meet, canvass returns, declare winners

The Open Meetings Act prohibits the calling of a special meeting for a legal holiday. Nevertheless, a school board that has a regularly scheduled meeting falling on Veterans Day may use that meeting to canvass returns and declare winners.

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IASB President named to key national post

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Schools sought for technology fair demonstrations

The School Technology Fair, sponsored by IASB, TECH 2000 and AT&T features teams of students and teachers from schools all over the state, showing how technology enhances teaching and learning in their classrooms.

The Fair will be held from 10 a.m. until 3 p.m. on Saturday, November 22, at the Sheraton.

Should your schools be a part of it? Application materials will be mailed early in September. Or, contact Jessica Billings by dialing either of IASB's offices, extension 1104; fax: 217/753-2485; e-mail, jbilling@mail.fgi.net.

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Three conference workshops planned

The marketing plan workshop on improving schools with entrepreneurial thinking will be led by John S. Haskell, president of DR. REVENUE'S marketing and sales clinics, and Raymond A. Lauk, school superintendent in Cerro Gordo. Their program will examine innovative, creative ideas for overcoming the challenges of financing schools, building community support and increasing parent and community participation. Sponsors say schools that "win" in the 21st century will have marketing plans that work.

The workshop on dealing with difficult people will be led by popular motivational humorist Tammy Hall. Hall will provide techniques for satisfying the difficult person's needs without subverting your own and assistance in determining when to "fight" and when to back away. Interpersonal styles will also be identified, including the styles of participants.

A third workshop features Patrick Dolan, noted author and presenter who is leading an effort for long-term organizational restructuring of public schools in four states. Dolan will examine the ways in which school boards, empowered to act, can move with integrity to adopt models of collaboration and shared decision making. His presentation "will challenge you to consider the rule of the board in a new light."

Workshop participants will be awarded 10 Leadership and Development points. Applicants may register for these workshops on the registration form included in the recent conference mailing. Cost is $125 per person, per workshop, which includes continental breakfast, lunch and breaks.

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Large dividend, other advantages touted for WCSIT members

A 25 percent dividend will be given to qualified WCSIT participants for the 1996-97 program year. Given under the Guaranteed Dividend Plan, qualified WCSIT participants must have been a member in the 1996-97 program year and a member of record on September 15, 1997 in order to receive this dividend. The qualified members will receive 25 percent of their annual, audited paid contribution amounts for the 1996-97 program year. This guaranteed dividend is estimated at approximately $2.7 million.

The Guaranteed Dividend Plan has pledged that a total of more than $9 million will be returned to qualified WCSIT member through the year 2000. Qualified members reportedly received roughly $2.3 million in guaranteed dividends for the 1995-96 program year.

Effective July 1, 1997, coverage for volunteers will automatically be included under the WCSIT Plan of Coverage. The coverage is provided by Voluntary Compensation Endorsement, which provides valuable protection to those authorized volunteers who commit their time and spirit to the school district.

The WCSIT Board of Trustees recently passed a resolution that no special assessments or supplemental contributions will be charged to WCSIT members from 1982 (the WCSIT's inception date) through June 30, 1998.

Further information on the WCSIT is available from local PRISM agents.

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RESEARCH REPORTS: Facts and figures for school leaders

Drug use on rise

Since 1991 the proportion of eighth graders who reported using illicit drugs in the last year more than doubled (from 11 percent to 24 percent). Since 1992, drug use has nearly doubled among tenth graders (from 20 percent to 38 percent) and has risen by about half among twelfth graders (from 27 percent to 40 percent).

"In general, when young people come to see a drug as more dangerous, or more disapproved of by their peers, they are less likely to use it," says the report. In the early `90s, when perceived risk and peer disapproval began to decline, particularly for marijuana, the use of these drugs began to rise again.

The report concludes that the increased use of marijuana and other drugs may be tied to an increase in cigarette smoking by young people.

Source: The Monitoring the Future Study is available at no charge from the Clearinghouse for Alcohol and Drug Information, 11426-28 Rockville Pk., Rockville, MD 20852. Phone: 800/729-6686.

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Breakfast boosts test scores, kids' behavior

The study found elementary students who received a good breakfast at school over a two-year period showed significant improvements in math and reading scores on standardized tests. The children in the study had fewer discipline problems, also.

"This landmark school breakfast study is the first long-term comprehensive study that links the effect of eating a nutritious breakfast to educational achievement," said Mary Begalle of the Minnesota Department of Children, Families and Learning. "It also proves what educators have known for years: Hungry children don't learn well."

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THE NATIONAL SCENE

Vouchers blocked in Ohio

The Ohio District Court of Appeals ruled 3-0 that the $5.5 million pilot program violates the First Amendment by advancing religion.

Parents of about 2,000 public school students in kindergarten through third grade received vouchers worth $2,500. Of the 53 private schools participating in the program, 80 percent are religious.

A teachers union and a taxpayer group had challenged the program in court. Ohio was the first state to start a voucher program that included religious schools. Earlier this year, a state judge in Wisconsin blocked a Milwaukee plan to expand its voucher program to include religious schools.

Source: NSBA, School Board News, May 13, 1997.

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New NSBA leaders elected

The NSBA Delegate Assembly elected IASB past-president Barbara Wheeler as president-elect. Wheeler is a member of the Community High School District 99 Board of Education in Downers Grove.

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Three Rhode Island board members fined

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With Cleveland schools losing out, teachers force vote on tax abatements

Cleveland Teachers' Union leaders believe tax abatement policies--similar to Tax Increment Financing laws in Illinois--are largely responsible for the busted school system. They say municipal tax abatements cost Cleveland schools $21 million a year.

As a result, the teachers led a successful petition drive to let voters decide in an upcoming August election whether to require that schools be reimbursed for any lost taxes resulting from tax abatements. The proposal would require full repayment either from the businesses winning the abatements or the city.

Union president Richard DeColibus said students should not shoulder the weight of Cleveland's development policy. Opponents of the proposal say the teachers' plan would place the city at a competitive disadvantage compared to wealthy towns nearby, which could offer tax incentives to tempt businesses away from Cleveland.

"Tax abatements are a two-edged sword," according to Michael Casserly, executive director of the Council of Great City Schools (as quoted in the New York Times). "They can help to create and attract the jobs that cities desperately need to remain vital. But at the same time, they can strip schools of the revenues they need to educate young people to fill those jobs," Casserly said.

The Times article explained: "There are no reliable national statistics on how much money schools lose from tax abatements. But the Corporation for Enterprise Development, in Washington, DC estimates that state and local governments give up $5 billion to $8 billion in tax incentives a year -- most, but not all, of them property tax abatements. And nationally, schools receive almost half of all property tax revenues."

Efforts are underway in some states to ban any and all abatements of property taxes that support the schools. The legislature in Texas is considering one such proposal. Recently a state senate committee found that from 1985 to 1995, Texas school districts lost roughly $480 million in revenue from local property taxes due to abatements.

Ohio adopted statutes in 1994 to limit the loss of school dollars through abatements. The state law enables school boards to veto tax abatements totaling more than 75 percent of the taxes that would otherwise be paid or those lasting more than 10 years.

"One thing that is clear, frankly, is that corporations need to understand how their rhetoric about wanting a well-educated citizenry and their demands for tax abatements are really at odds with one another," Casserly told the Times. "If you're going to have an educated citizenry, you're going to have to pay for it."

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WORKSHOPS & MEETINGS

New principals workshop set

The workshop, designed by IPA and the Illinois State Board of Education (ISBE), will address teacher evaluations, special education, crisis management, and how to calm upset parents or teachers. Legal issues, networking techniques and survival techniques will be covered. The workshop also will feature an assistant principals and deans round table, and an ISBE presentation about: how ISBE can assist the principal; the state academic standards project; the state accreditation process and IGAP; and professional standards.

The workshop fee is $200 ($150 to IPA members), which includes materials, coffee or danish, and lunches each day as well as a reception. Special room rates have been secured at the hotels (ask for the Illinois Principals Association block of rooms). For more information or to register contact IPA at 217/525-1383 or Fax: 217/525-7264.

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Election workshops planned for July

Each session will be conducted by staff from the State Board of Elections who will discuss the procedures involved in preparing for the November 4 nonpartisan elections. Copies of the 1997 Election Officials Handbook for the Nonpartisan Election and the 1997 Candidates Guide were recently sent by the state elections board to all school board secretaries. These publications can be duplicated, according to the elections board.

School election officials are invited to attend any of the workshops on the schedule that follows. For more information contact Don Schultz at the State Board of Elections at 217/782-4141.

Dates and locations

July 16, 1997--Eureka College, Melick Library
1:30-3:00 p.m.AV Room, 300 E. College, Eureka

July 16, 1997--Lincoln Land Comm. College
1:30-3:00 p.m. Stephens Room--Menard Hall, Shepherd Road, Springfield

July 17, 1997--Carl Sandburg Comm. College
1:30-3:00 p.m.Main Building, Lecture Room C-102 (Park in parking lot C), Galesburg

July 22, 1997--Champaign County, Brookens Admin. Center
1:30-3:00 p.m.County Board Room #1, 1776 E. Washington, Urbana

July 22, 1997--Sauk Valley Comm. College
1:30-3:00 p.m.Room 2K2, Rt. 2, Dixon

July 23, 1997--College of DuPage, Student Resource Center
1:30-3:00 p.m.Room 1046/1048, 22nd St. & Lambert Road, Glen Ellyn

July 24, 1997--College of Lake County
1:30-3:00 p.m.Lower Level - Main Building, Room COO3 (Park in lot 4, 5, 6), 19351 W. Washington, Grayslake

July 29, 1997--Belleville Area College
1:30-3:00 p.m.Main Building - Room 1000, Carlyle Road (Rt. 161), Belleville

July 30, 1997--Frontier Community College
1:30-3:00 p.m.Classroom West - Room #5, 2 Frontier Drive, Fairfield

July 31, 1997--John A. Logan College
1:30-3:00 p.m.Terrace Dining Room, 700 Logan Road, Carterville

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Take this chance to cover Conference panel

take a more active role in the Joint Annual Conference?

provide valuable information for your colleagues?

see your name in print?

No experience necessary; if you are willing to cover a session, we will provide detailed instructions.

To sign on, contact Marilyn Turnbull, 217/528-9688, ext. 1131; or fax, 217/753-2485.

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FEDERAL UPDATE

Congress passes special education bill

The bill mandates expanded mediation to resolve disputes between parents and schools, gives parents more input into educational decisions, and attempts to free up more local funding.

The bill also makes it easier to remove disabled students from the classroom if they pose a threat to themselves or others. It does not allow a cutoff of educational services as some lawmakers had sought.

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Illinois School District Liquid Asset Fund Plus

More than $422 million was invested in the Fixed Rate program, at rates of 5.48 percent for a 30-day certificate to 6.08 percent for a one-year certificate. For more information about ISDLAF+, call, toll-free, 1-800/221-4524.

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Classified ads

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Recent mailings from IASB

May 29: Directory of Title IX Specialists in Illinois Public Schools, 1997, mailed to district superintendents.

June 10: 1997 Joint Annual Conference announcement packet and publicity mailing, to superintendents.

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IASB School Board News Bulletin
Illinois Association of School Boards