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Legislative Update: School Funding Debate Involves TIF, Tax Caps

August 22, 2017 | Legislative briefs

School Funding Debate Involves TIF, Tax Caps

As a result of Governor Bruce Rauner’s amendatory veto of SB 1 (available via this link), the school funding formula debate has expanded to include the possible ramifications that Tax Increment Finance (TIF) Districts and property tax caps may have on available local revenue for schools.

The Governor’s amendatory veto message to SB 1 contains a change to the way Equalized Assessed Value (EAV) within Tax Increment Financing (TIF) Districts is factored into the education funding formula.

The Illinois Municipal League (IML) is concerned this discussion could create additional animus toward TIF, which is a valuable and necessary tool for addressing blight and revitalizing local communities. IML has not taken a position on either SB 1 or the amendatory veto.

There was no attempt to override the Governor’s amendatory veto to SB 1 when the House convened on August 16. The House is scheduled to convene on Wednesday, August 23, and may schedule a vote to attempt an override of SB 1 on that date.

House Vote on Separate School Funding Bill Fails 
The provisions of the amendatory veto to SB 1 were written into House Amendment 4 to SB 1947 (available via this link). This amendment did receive a vote on August 16, but failed 0-60-33.

Prior to the start of session on Wednesday, August 16, IML Executive Director Brad Cole sent letters to the four legislative leaders indicating IML’s opposition to the proposed changes within SB 1947 concerning TIF. A copy of those letters is linked here for your information. IML did not specifically take a position on the bill, but did express concern about the possibility of undermining the effectiveness of TIF.

Fiscal Year 2018 Estimate for Replacement Taxes 
The Illinois Department of Revenue (IDOR) has announced an estimate of the amount of Personal Property Replacement Taxes (PPRT) paid or to be paid to each taxing district. A detailed listing of the approximately 6,500 local taxing districts that are entitled to receive an allocation for Fiscal Year 2018 (July 1, 2017 through June 30, 2018) is available via this link.

IML Advocating to Reverse Comptroller’s Audit Filing Policy Change 
IML has been actively engaged in advocating to persuade the Comptroller to reverse the decision to change past practice related to audit filings by local governments. As you may be aware, the Comptroller’s office announced they would no longer be accepting audit statements prepared using cash basis accounting. Linked here are several documents (including an internal IML memo, letters from Executive Director Brad Cole to the Comptroller and a letter from Representative Anthony DeLuca to the Attorney General) for your information. This issue is still evolving, and IML is hopeful that our efforts, along with the efforts of others, will result in a more reasonable approach from the Comptroller. Again, IML will keep you informed as this progresses.

You’re Invited to Attend the IML Annual Conference 
Please use this link to register online for IML’s Annual Conference if you haven’t already. This year’s event will be held September 21-23, 2017. We are excited to have Hall of Fame football legend and sports commentator Mike Ditka at the Opening General Session on Friday, September 22 at 9:00 a.m. In addition, we have developed conference tracks – including Finance – that make it easy to choose from 75+ sessions to create a custom experience specific to your unique educational needs. We have also negotiated discounted rates via our room block at the Hilton Chicago as well as $25 overnight parking. Our room block expires August 31. Because the hotel is already sold out during our event, you need to make your reservation now via our room block. The IML Annual Conference is an outstanding opportunity for professional development and networking, and we look forward to seeing you there.

As always, IML staff will continue to monitor any prospective legislative developments and aggressively advocate on behalf of our membership. Should you have any questions, please contact our legislative team at IMLLegislation@iml.org. Thank you.


500 East Capitol Avenue | PO Box 5180 | Springfield, Illinois 62705 
phone: 217-525-1220 | fax: 217.525.7438 
email: IMLLegislation@iml.org | www.iml.org

The IGFOA thanks the IML for its ongoing commitment to providing the IGFOA with timely and relevant information on legislative issues important to the IGFOA membership.

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