Full Text of HR0038 100th General Assembly
HR0038ham001 100TH GENERAL ASSEMBLY |
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| 1 | | AMENDMENT TO HOUSE RESOLUTION 38
| 2 | | AMENDMENT NO. ___. Amend House Resolution 38 as follows: | 3 | | by deleting everything and replacing it with the following: | 4 | | "WHEREAS, Article X, Section 1 of the Illinois Constitution | 5 | | provides our shared principle that "A fundamental goal of the
| 6 | | People of the State is the educational development of all | 7 | | persons to the limits of their capacities; the State shall | 8 | | provide
for an efficient system of high quality public | 9 | | educational institutions and services; education in public | 10 | | schools through
the secondary level shall be free; there may be | 11 | | such other free education as the General Assembly provides by | 12 | | law; the
State has the primary responsibility for financing the | 13 | | system of public education; and | 14 | | WHEREAS, Illinois' continuing budget crisis and slow | 15 | | economic recovery has motivated discussion on how to save the |
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| 1 | | State money, including a misguided proposal to shift the | 2 | | State's funding of the normal pension cost for the State | 3 | | Universities Retirement System and the Teachers' Retirement | 4 | | System to local entities, such as school districts and | 5 | | community colleges, and to public universities; and | 6 | | WHEREAS, Decades of the State's chronic mismanagement of | 7 | | funds and failure to adequately fund its five pension systems | 8 | | has resulted in a ballooning pension payment that has been | 9 | | crowding out funding to critical State programs and services | 10 | | for education, human services, and public safety; and | 11 | | WHEREAS, The FY18 projected normal cost for the State | 12 | | Universities Retirement System will be $424.9 million and for | 13 | | the Teachers' Retirement System will be $967.5 million; and | 14 | | WHEREAS, If these costs were combined they would represent | 15 | | a pension liability shift from the State to local governments | 16 | | of $1.392 billion for FY18 alone; and | 17 | | WHEREAS, Illinois already has one of the largest | 18 | | residential property tax burdens in the nation; and | 19 | | WHEREAS, The consideration of a State cost shift of this | 20 | | magnitude, particularly when it is combined with the Property | 21 | | Tax Extension Limitation Law, will dramatically impact a school |
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| 1 | | district's and community college's ability to allocate funds to | 2 | | pay for the normal cost of pensions; and | 3 | | WHEREAS, The Property Tax Extension Limitation Law hinders | 4 | | the ability of a school district and community college to | 5 | | increase revenues to accommodate a significant cost shift of | 6 | | State obligations to local budgets; and | 7 | | WHEREAS, The proposed cost shift would force significant | 8 | | local budget reductions, which means teacher layoffs and | 9 | | reductions in curricular offerings; and | 10 | | WHEREAS, High property tax burdens in combination with the | 11 | | pervasiveness of school district financial instability, the | 12 | | unpredictability in State funds directed towards education, | 13 | | and a whole host of statutorily required unfunded mandates have | 14 | | made it especially hard for local school districts to operate | 15 | | effectively; and | 16 | | WHEREAS, It is anticipated that the cost shift for the | 17 | | State Universities Retirement System will force community | 18 | | colleges and universities to raise tuition in order to cover | 19 | | the increased costs; and | 20 | | WHEREAS, The unpredictable nature of pension costs makes it | 21 | | difficult to provide an accurate account of the total impact of |
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| 1 | | a cost shift to local taxing districts, and it is even more | 2 | | difficult to ask a school district or institution of higher | 3 | | education to plan for these unknown factors over time; and | 4 | | WHEREAS, The concept of shifting additional financial | 5 | | burdens onto the State's already cash-strapped school | 6 | | districts and institutions of higher education would | 7 | | ultimately raise property taxes and increase tuition; and | 8 | | WHEREAS, It is unfair and reckless to transfer an already | 9 | | well-established State financial responsibility onto local | 10 | | taxing districts, especially during this time of financial | 11 | | uncertainty; therefore, be it | 12 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE | 13 | | HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the | 14 | | normal cost of pensions for our State educators is the | 15 | | responsibility of the State; and be it further | 16 | | RESOLVED, That the current budget crisis should not be used | 17 | | as a reason to shift its financial responsibility for State | 18 | | pension costs to the local taxpayers."
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