90th General Assembly
Summary of SB0616
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Senate Sponsors:
WELCH.

Short description: 
EDUCATION FUNDING REFORM                                                   

Synopsis of Bill as introduced:
        Creates the Fund Education First Act and amends the State Finance      
   Act, Illinois Income Tax Act, Property  Tax  Code,  and  School  Code.      
   Beginning  with  FY  1998  requires  appropriations  to  be  made  for      
   elementary  and secondary education that are at least equal to the sum      
   of (i) the total amount appropriated from general funds  revenues  for      
   elementary  and  secondary  education  for  the  preceding fiscal year      
   (exclusive of revenues that beginning in FY 1999 are appropriated from      
   the Education Funding Reform Fund); (ii) 50% of the growth in  general      
   funds  revenues during a current fiscal year over the preceding fiscal      
   year (exclusive of growth in revenues  deposited  into  the  Education      
   Funding  Reform  Fund);  and (iii) for FY 1999 and thereafter, 100% of      
   the amount deposited in the Education Funding Reform Fund  during  the      
   preceding  fiscal year.  Establishes a continued minimum funding level      
   after the aggregate amount appropriated  under  the  foregoing  method      
   represents  50%  of  total  revenues  available from local, State, and      
   federal  sources.   Increases  the  income  tax  rates  to  3.25%  for      
   individuals and 5.2% for  corporations  beginning  July  1,  1997  and      
   earmarks  the  increase  for deposit into the Education Funding Reform      
   Fund created in the State treasury.   Requires  the  county  clerk  to      
   abate  a  school  district's  educational purposes tax on farmland and      
   residential property in an amount that equals the amount the  district      
   receives  from  the  Education Funding Reform Fund during the calendar      
   year preceding the extension  year.   Provides  that  amounts  in  the      
   Education  Funding Reform Fund are to be used solely for appropriation      
   and distribution to  school  districts  based  on  the  ratio  of  the      
   aggregate  value of farmland and residential property in each district      
   to the aggregate value of all farmland and residential property in the      
   State.  Provides for an income tax credit equal to 2.5%  of  the  real      
   property  taxes  paid  by  a  taxpayer  on  commercial  and industrial      
   property. Provides that if the maximum rate at which a school district      
   may levy a school tax (other than to pay debt  service  on  long  term      
   obligations)  increases after the amendatory Act's effective date, the      
   voters of the district may by referendum require the tax  rate  to  be      
   reduced to a lower rate.  Effective immediately.                            
 
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   0


   END OF INQUIRY 



 Full Text  Bill Status