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