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By BILL STEINBACHER-KEMP
Schools are riding on empty
Ignoring the need for a major overhaul of school finance, "We cannot afford to leave education rooted in the time-worn practices of the past," Gov. Jim Edgar said during his State of the State address in January as he unveiled a series of education reforms. "If we do not act today, we may never catch up." Yet, except for a promise to increase elementary and secondary education funding next fiscal year, Edgar ignored many of the most severe problems facing education in Illinois. He did not propose to address, let alone eliminate, the troublesome per-pupil expenditure disparities among school districts. He did not propose to substantially increase funding for the state's poorest districts. He did not propose to substantially increase the state's shrinking share of education funding. Nor did the governor propose to overhaul the antiquated school aid formula. Sen. Arthur Berman, a Chicago Democrat, likens the administration's proposals to buying a fancy hood ornament for an automobile that's out of gas. Says Berman: "The problem today is that nobody's filling up the gas tank." Reform-minded lawmakers such as Berman and Sen. John Maitland, a Bloomington Republican, are lone voices dedicated to meaningful, and thus costly, education reform. "Everybody talks about education," says Berman, minority spokesperson for the Senate Education Committee. "But how many legislators have the guts to do what they know ought to be done?" With majorities in both legislative houses. Republicans have a historic opportunity to bring about long-overdue, fundamental reform to the financing of public schools. Instead, the Republican approach, personified by Edgar's cautious tinkering, is more interested in the appearance of change than in real reform. With a governor who is not known as a visionary, a legislature riven with regional differences, and both political parties more interested in winning elections than helping schoolchildren, meaningful reform will remain as elusive as a quality education in many Illinois schools.
The reforms outlined in Edgar's fifth State of the State address center on Newt Gingrich-type concepts such as local autonomy, less bureaucracy and access to high-tech tools such as computers and the information superhighway. The first initiative seeks to create a so-called "learning zone" within the troubled Chicago public school system. The administration wanted to further the idea of community-based schools, under way since the establishment of locally elected school councils. This latest reform would create a commission that would designate a grouping of schools in a Chicago neighborhood as a learning zone. Schools within that zone would receive a lump sum of money, and then use it to create independent structures free from state and local mandates. A like-minded proposal would create 45 charter schools — 15 each in Chicago, the collar counties and downstate. These schools would exist almost wholly independent of the require- 14/March 1995/Illinois Issues ments of the school code of Illinois and their local school boards. Tailored into the first two proposals is a plan to provide waivers from mandates found in the code. The State Board of Education would grant petitioning school boards the ability to meet mandates through alternative means or even grant outright waivers. The second part of the administration's reform effort focuses on technology in the classroom. As computers become increasingly prominent in all facets of education, many struggling districts lack the resources to purchase hardware and software. Edgar proposes to make available an estimated $400 million in state and local revenue for computers and training. Under the plan, school districts would receive annual matching grants to purchase computers, software and telecommunications equipment, and to provide teacher training to incorporate the new technology into school curriculums. Funding would come partly from growth in a riverboat gaming fund. The governor also proposed increasing resources for a statewide database that features linkups with global networks such as the Internet. "By this time next year," Edgar said, "I want students in every Illinois school to be able to access the information highway that will open new worlds of knowledge and intelligence to them."
Sen. Arthur Berman, a Chicago Democrat, likens Gov. Jim Edgar's school reform proposals to buying a fancy hood ornament for an automobile that's out of gas. Says Berman: "The problem today is that nobody's filling up the gas tank." Berman is the minority spokesperson for the Senate Education Committee. "Everybody talks about education," he says. "But how many legislators have the guts to do what they know ought to be done?" Still, Berman cautiously supports Edgar's forays into cutting red tape. Joseph Spagnolo, state superintendent of education, said Edgar's reform plan "sends a strong, positive message that improving schools will be a priority in this session of the General Assembly." Sen. Patrick O'Malley, a Republican from suburban Palos Park who spearheads education reform in the upper chamber, says the governor's reforms have the strong support of the GOP legislative leadership. He says even charter schools and learning zones, measures which have been opposed by the influential Illinois Education Association, have an excellent chance of passage this session. Sen. Berman cautiously supports Edgar's forays into cutting red tape and expanding access to the information superhighway. "The proposals are fine," he says, yet in the same breath adds that these alone are wholly inadequate to address the pressing needs of Illinois school children. The myriad problems facing Illinois schools are well documented. Just under 100 of the 900-plus school districts in the state are being "watched" by the State Board of Education because of their ailing financial condition. Although the Illinois Constitution specifies that the state has the primary responsibility for financing public education, the state's share of elementary and secondary education funding has declined from 48 percent in 1974 to 33 percent today. The lack of state support means a disproportionate amount of money for schools must come from the property tax base of each district, a system that fosters gross financial and educational disparities among schools. Today, many wealthy school districts spend about four times as much money on each student as the poorest ones. The lowest-spending districts in Illinois spend as much on their students as the average school in Mississippi, a state that is virtually synonymous with inferior schooling, Berman and Maitland support a series of measures they contend eventually will solve many of these problems. The sweeping changes — including increased state support for education, a shift away from property taxes to eliminate the glaring disparity among districts and a revamping of the school aid formula — are found in the one-year-old recommendations of the Illinois Task Force on School Finance, a group chaired by both lawmakers. "The new funding process we have designed will change the face of education in Illinois for the 21st century," Berman proclaimed in January 1994 when the group's final recommendations were unveiled. But the optimism was short-lived as the recommendations were ignored. From a political perspective, the most problematic aspect of the report was the cost. Increased state funding for education coupled with a reduction in local property taxes is an expensive proposition. To solve the state's structural funding problems, the report called for an
March 1995/Illinois Issues/15
increase in state aid to public schools of more than $3.5 billion, with a linked reduction in local revenue, mostly property taxes, of more than $2 billion.
Many of Illinois' poorest districts, most of them in the state's deep southern and western regions, fail to meet the basic educational needs of their students, the task force concluded. Therefore, the group's first goal was to ensure that these districts receive enough state aid to provide at least an adequate education. The group developed a formula, based on such things as average class size and pupil-teacher ratios, to determine the cost of a so-called adequate education. Adjusted for regional cost differences, the cost of such an education was calculated at more than $3,800.
In addition, changes were made in the funding mechanism to ensure that general state aid was targeted to the districts with the greatest need. "School districts would not derive the same benefits if we simply pump more money into the old formula," Berman said. Overall, the plan would have translated into approximately $1.5 billion in new revenue for Illinois schools. "The state must take whatever steps are necessary," the report concluded, "whether it be an increase in the state income tax, an increase in the sales tax, the implementation of a state property tax, or the distribution of state resources, to ensure that sufficient revenues are available to adequately support the education of the student population." The task force included Republicans such as Sen. Aldo DeAngelis and Rep. Mary Lou Cowlishaw and Democratic Sen. Vince Demuzio and Senate Democratic Leader Emil Jones. Also included were representatives of powerful organizations such as the IEA, Illinois State Chamber of Commerce and Illinois Manufacturers' Association. Despite two years of work, 30 meetings and five public hearings, not every member was pleased with the recommendations. Some members responded with minority reports, primarily in response to the costs associated with the recommendations. Today, these minority reports better reflect the future of education funding in Illinois than the optimistic final report, demonstrating the difficulty in achieving consensus on the divisive question of school finance. Maitland acknowledges there is little chance of implementing meaningful education finance reform this session. One of the most serious roadblocks to reform is its forbidding cost, a problem exacerbated by the state's precarious fiscal condition. Despite unemployment at a 20-year low and projected revenue growth this fiscal year of more than $750 million, Illinois remains strapped for cash. The state faces escalating costs in medical care for the poor and elderly and a backlog of $1 billion in overdue Medicaid bills. "It's a pretty fragile budget," acknowledges Maitland, the former chairman of the Senate Appropriations Committee. He also says there are other time bombs waiting to derail school finance reform, such as severe prison overcrowding and the ongoing problems of the beleaguered Department of Children and Family Services. 16/March 1995/Illinois Issues
Despite the state's pressing needs and financial problems, the legislature remains steadfast against higher taxes. And without a tax increase, education finance reform is dead on arrival. "It has to take an increase," says Illinois State University's Hickrod. "Everybody knows that." Yet House Speaker Lee Daniels has ruled out higher income taxes, even with concurrent reductions in local property taxes. The Elmhurst Republican fears higher state taxes will jeopardize his newly gained GOP majority. "I think that's a big, big reason why we're not addressing the school aid formula," says Sen. Doris Karpiel, a Republican from suburban Carol Stream. "No one is willing to pass a tax increase right now." For his part, Edgar is opposed to tax increases and instead is advocating property tax caps throughout the state. Maitland generally opposes extending caps to downstate communities because it would further restrict money available to schools. Dawn Clark Netsch, the Democratic gubernatorial candidate, made higher state income taxes to offset increased education funding and property tax relief the linchpin of her losing campaign. After the November election, even Senate President James "Pate" Philip briefly advocated a similar tax swap plan. The outspoken Wood Dale Republican said the state could raise not only income taxes, but also the state sales, liquor and tobacco taxes, in exchange for the elimination of school property taxes. But after the governor's State of the State address in January, Philip backed off from such a bold proposal. State Superintendent Spagnolo's Quality Schools Initiative also includes recommendations to overhaul the education funding system and make it less reliant on local property taxes. But like the Task Force on School Finance, it's unlikely Spagnolo's tax recommendations will receive support in the legislature. Sen. O'Malley, vice chairman of the Senate Education Committee, says the GOP sweep last November makes any tax increase proposals irrelevant. "I don't want to diminish their work," O'Malley says of the Task Force on School Finance. "But the state has to move on for no other reason than the voters spoke loud and clear this November. They certainly don't want any tax increases." O'Malley says money for schools must come from sources other than raising taxes, such as reducing waste and inefficiency in government and eliminating some tax exemptions, both of which are commonplace political responses. "It's not always a question of raising taxes," he says. "We must use existing dollars more wisely than they currently are." Meanwhile, other issues also are monopolizing the limited attention span of the legislature. For instance, the Republican leadership has championed pro-business legal reforms, property tax caps and welfare reforms this legislative session. Speaker Daniels' "Illinois Agenda" does not mention education finance reform. And Senate President Philip has spent valuable time feuding with the Chicago Teachers Union over plans to require teacher testing and eliminate strikes.
March 1995/Illinois Issues/17
Regionalism, apparent in Philip's constant sniping at Chicago, still colors much of the debate over education funding. The impoverished Chicago school system, the affluent collar counties schools and rural downstate districts all have a tremendous stake in changes in the school aid formula. The formula is a "very controversial and parochial issue," says Maitland. Some downstate schools receive about 80 percent of their funding from the aid formula, while several affluent districts receive as little as 2 percent. Tinkering with the formula is less a partisan issue than a matter of geography, concedes Karpiel. And proposals to revise the formula all too often entail taking away money from some districts in order to give it to others. Maitland, one of the few lawmakers who rise above regional squabbling, says two years of hard work by the task force were almost ruined by parochial infighting. "I'm concerned about all boys and girls in the state," he says. "Not just the children in the suburbs, or those in Chicago, or even in my downstate district." The costs of diminished educational opportunities, increased poverty and dependency in inner-city Chicago are borne by taxpayers throughout Illinois, he says. He also highlights the shared problems of many school districts throughout the state. For example, about 28 percent of the students from Bloomington District 87 come from low-income families, a startling figure considering the Bloomington-Normal region consistently has the lowest unemployment rate in the state.
Nonetheless, some Republican lawmakers, such as Karpiel, remain convinced that additional state funding for education does not necessarily translate into better schools. "I really don't think it's a question of money per student," she says. "Nobody has shown that $3,500 [per pupil] is worse than $6,000." Karpiel and other conservatives argue that the Chicago public school system remains academically bankrupt despite spending more than $7,000 per student. She also maintains that most of the frequently cited statistics about disparity provide a purposely skewed view of education in Illinois- For example, only eight districts in Illinois actually spend more than $10,000 per student and the districts that spend less than $2,800 represent fewer than 1 percent of the state's student population. As former spokesperson on the Senate Education Committee, Karpiel's views are shared by many suburban Republicans. And a historic shift in power culminated in November with suburban Republicans capturing the leadership in both legislative chambers. "You cannot change the current formula without suburban support," says O'Malley, another key suburban Republican. Many suburban Republicans, especially those who live southwest of Chicago, must win elections in so-called swing districts with slim GOP majorities. Supporting higher taxes, even in exchange for lower property taxes, would spell trouble. Maitland, in comparison, has run unopposed during his last three Senate elections. This has given him leeway to advocate bold proposals that might otherwise prove worrisome in a tight race in his conservative 44th Senate district. Another missing piece of the reform puzzle is forceful executive leadership. Gov. Jim Edgar's most important accomplishment so far has been shielding education from the severe budget cuts that decimated many state programs the past several years." I sympathize with the governor," says Hickrod of both the state's budget woes and the huge costs entailed in education finance reform. "It's a huge problem. But how long can you sit there with growing disparity and not do anything about it?" One Republican lawmaker, wary of openly criticizing Edgar, says it's time for the governor to take charge. A decade ago Gov. James Thompson orchestrated a four-day summit during the last week of the legislative session to construct the 1985 education reform package. "It takes someone to steer the ship," the lawmaker says. "I hope the governor can follow Thompson's lead and take charge." Looming over the education finance debate is the historic funding lawsuit before the Illinois Supreme Court. In Committee for Educational Rights v Edgar, a group of more than 50 school districts filed suit against the state in November 1990 contending that the current funding scheme, with the gross disparities between poor and wealthy districts, violates the state Constitution. Oral arguments before the Supreme Court should begin sometime this summer. Although the plaintiffs have faced setbacks at the state circuit and appellate court levels, similar suits have been successful in other states. Maitland says the legislature should act before the court system compels the state to make unpalatable changes. "If we don't do something, sooner or later, the courts will do it for us," he says. At a time when Illinois political leaders remain unable or unwilling to tackle the issue of adequate and equitable school funding, other states have successfully shifted away from property taxes to a fairer system of statewide taxes. Kentucky uses a mix of statewide taxes including higher income taxes to pay for schools, and Kansas implemented a statewide property tax. Michigan decided to almost eliminate local school property taxes in exchange for higher state sales taxes. And the nation's two most populous states, California and Texas, have reduced the funding disparity between low- and high- spending districts with statewide taxes. Despite the many roadblocks to reform, Berman has introduced legislation this session that incorporates most of the recommendations of the task force. "I hope that I can convince my colleagues that this is the year for meaningful change," he says. Berman is not swayed by the argument that the backlog of Medicaid bills must be paid before the state embarks on costly education reform. "Every year there's some other problem," he says. "There's always going to be an excuse." * Bill Steinbacher-Kemp, a frequent contributor to Illinois Issues, is a free-lance writer living in Bloomington. 18/March 1995/Illinois Issues |
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