School students need Illinois to invest in them, not take money away, Tony Sanders, CEO of School District U46, told a House Property Tax Subcommittee on Friday.
“We can do better as a state for our children, but it will require an investment and a better funding model,” Sanders said.
Sanders, the leader of the Elgin-based school district, joined several panelists in testifying about how a property tax freeze would affect different regions, cities and sectors of Illinois. He said that while he supports property tax relief, it could pose trouble for many schools.
“The challenge, though, is that local property taxes are the only reliable source of revenue school districts across the state of Illinois have,” Sanders said. “As a reminder, in 2009, when the economy collapsed and housing values plummeted, it affected every citizen in the state of Illinois. They suddenly saw their property value go down, and as a result, their tax rates go up because that is the system we built.”
Illinois has the second-highest property tax rates in the country, second only to New Jersey, and many argue that it has driven out businesses and residents at an alarming pace. In response, Republican lawmakers have proposed HB4066, which would implement a property tax freeze for four years that would coincide with a Democrat-supported income tax hike to provide some funding to the backlog of bills the state faces.
Sanders said a freeze is not the solution school districts need.
“If we are going to change the system, we need to unbuild what we have built, and that requires, truly, an evidence-based funding model and an investment from the state of Illinois in that model," Sanders said. "It will take time before ou can actually see us start to lower property taxes. To make a change, to freeze property taxes without that evidence-based funding model and the funding behind it, will just generate more problems for school districts across the state of Illinois.”
In fact, Republicans have proposed an education funding formula as part of a compromise package of reforms aimed at fixing and funding the state.
Sanders encouraged the state to look harder at reforms instead of freezes.
“First, fix the formula, invest in it; and secondly, I would beg you to pay us what you owe us currently,” Sanders said. “Now is the time to invest in public education, not cut it.”
Ted Dabrowski, vice president of policy at the Illinois Policy Institute, agreed, arguing that a tax freeze is merely a half measure and that the state needs true comprehensive reform at the state and local level. He urged lawmakers to empower local leaders with more control over tax negotiations.
“In the end, our local officials in Illinois don’t have true local control,” Dabrowski said. “A temporary property tax freeze without the local ability to reduce local costs is a very dangerous proposition. As long as contracts and costs continue to rise, local governments will continue to borrow, underfund pensions, find other taxes and fees until the temporary freeze is done. After the freeze, things will be worse. For that reason, we need comprehensive property tax reform. We must address all the issues; otherwise, we’ll never really get out of this mess.”
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