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Illinois School Board Journal
November/December 2005

Dark clouds hover over Illinois schools
by Gerald Chapman

Gerald Chapman is an associate dean at Roosevelt University's College of Education and former superintendent of Township HSD 211 in Palatine.

By nature, I am optimistic. During my 36 years of service to public education in Palatine and Schaumburg townships, I was known as someone who could see the silver lining for each cloud.

I am now retired, and I'm glad about that. If I were still a school superintendent, I would have a constant migraine. The clouds appear to be growing darker all the time. Why do I now find myself thinking like a pessimist?

So many negative factors affect Illinois schools that someone in government should step up and help. Unfortunately, the governor and legislative leaders appear to be wearing blinders.

What are these negative factors? How do they impact education? And what solutions might allow those dark clouds to dissipate?

The state of Illinois allows municipalities to unilaterally create TIF districts. These areas are built or rebuilt resulting in much more valuable real property. However, school districts receive no increased property taxes.

Since many TIF districts are retail areas, municipalities benefit from increased sales taxes that are not shared with other taxing bodies — a good advantage to municipalities and a serious disadvantage to schools.

The Property Tax Extension Limitation Law (PTELL) or tax caps, as they are more familiarly known, limit school districts' levy increases to the rate of inflation. This is a reasonable benefit to property taxpayers.

However, two major factors are ignored: (1) If property values increase at a rate higher than the rate of inflation, property owners benefit but schools do not; (2) No accommodations are made for increases in enrollment. So if enrollment increases, districts are forced to spend less per pupil.

The state also has made it easier for commercial property owners to appeal assessments successfully. A property owner's argument for lower assessment can be based solely on that property owner's submission of supporting documents and arguments. Since the objection is against the assessor, who loses nothing with any reduced reassessment, the process is relatively easy to "win."

Unfortunately, "winning" a lower assessment can result not only in a reduction in current and future taxes, but also can result in refunds from prior years' tax payments. These refunds are deducted from taxing bodies' current year's levies, and, because successful appeals are so widespread, the result means school districts collect significantly less than their legally authorized levies.

Are there solutions? Yes. First, the state of Illinois should modify legislation affecting TIFs, mandating that all taxing bodies — including schools, libraries and park districts — must approve. Second, PTELL should be modified to allow reasonable adjustments for enrollment growth and to make up for money lost when property assessment appeals result in levy reductions and/or property tax refunds.

Someone has to care enough about our schools and our students to seek and pursue solutions. Without changes, school districts in Illinois will continue on the steady path toward curricular and financial bankruptcy.