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Bill Status of HB0208 93rd General Assembly
Short Description: EDUCATION FUNDING
House Sponsors Rep. Monique D. Davis - Charles E. Jefferson
Last Action
Date | Chamber | Action | 1/11/2005 | House | Session Sine Die |
Statutes Amended In Order of Appearance
Synopsis As Introduced Amends the State aid formula provisions of the School Code by increasing the foundation level of support, changing the amount of and how a supplemental general State aid grant is calculated, and providing that the supplementary grants in aid provisions are no longer applicable. Amends the State Aid Continuing Appropriation Law to make the Law applicable to fiscal year 2004 and each fiscal year thereafter and to provide for an irrevocable and continuing appropriation sufficient to fund general State aid and supplemental general State aid. Amends the School Code, the School Construction Law, and the Election Code to make changes concerning the reorganization of school districts, including the conduct of feasibility studies, the removal of a referendum requirement, the establishment of community unit school districts, and the provision of supplementary State aid, State funds for construction, and implementation grants. Amends the State Finance Act, the Illinois Income Tax Act, and the Property Tax Code. Beginning on July 1, 2003, increases income taxes and provides that two-thirds of the increased revenue shall be deposited into the School District Property Tax Relief Fund to fund property tax abatements and that one-third of the increased revenue shall be deposited into the Common School Fund. Provides a mechanism for property tax abatements and provides for a deduction (up to $1,200) for income tax purposes, for 5 years, equal to 15% of rent paid annually for a taxpayer's principal residence. Amends the School Code concerning certain categorical funding, including the establishment of several block grant programs and changes to the way State transportation reimbursement is calculated. Amends the School Code and the IMRF and Social Security Enabling Act Articles of the Illinois Pension Code to make changes concerning school districts other than the Chicago school district with respect to the purposes for which a district may levy taxes and the maximum rates of those taxes, a newly formed district's authority to levy taxes for certain purposes, interfund transfers, and working cash funds. Amends the State Mandates Act to require implementation without reimbursement. Some parts effective immediately; other parts effective July 1, 2003.
| Pension Note (Pension Laws Commission) | | HB 208 would not affect the accrued liabilities or annual costs of any IMRF employer. |
| Housing Affordability Impact Note (Housing Development Authority) | | The proposed property tax abatement for educational purposes may significantly reduce homeownership costs, it appears that the tax burden is being shifted to the Illinois Income Tax. Due to wide variation in income levels of homeowners as well as actual property taxes levied based on local assessed valuations, the effect of this change cannot accurately be determined. Similarly, the provision for an income tax deduction allowance for renters may potentially serve as incentive toward future homeownership, but it also cannot be calculated at this time. |
| Fiscal Note (Illinois State Board of Education) | | A 1% increase in the individual income tax rate and a 1.6% increase in corporate income tax rate will raise approximately $2.6 B in new resources to pay for the program recommendations compared to the EFAB recommendation of $5.4 B. Given the specific 2/3 - property tax relief and 1/3 - GSA allocation in HB 206, the following will be available for those purposes: (1) GSA increase (foundation level, Hold Harmless and poverty), approximately $867 M (compared to $1.8 B EFAB recommendation), and (2) Property tax abatement, approximately $1.7 B (compared to $3.6 B EFAB recommendation). |
| State Mandates Fiscal Note (Illinois State Board of Education) | | House Bill 208 changes the way local revenues are collected and held and the way the state funds education but it does not establish a state mandate for school districts in a way that necessitates additional expenditures. |
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