Illinois Legislative Outlook, 2007
A long-running debate in the state over how to fund education will likely continue this legislative session. Illinois has the nation’s widest gap between high spending and low spending school districts. It also has a very large deficit and serious problems with funding for the state retirement system. Incumbent Governor Rod Blagojevich (D) was re-elected and campaigned on not raising income or general sales taxes. He proposes selling the state lottery to address the state’s budget problems and to help fund schools. A “tax swap” bill has been filed in the State House; the bill would increase total income and business tax revenues and provide tax abatement for the education portion of property taxes. Illinois State University is beginning a three-year “school closing” study is being undertaken by Illinois State University. Last year the legislature passed a bill making it easier to consolidate districts and there is ongoing talk in the legislature about reducing the number of districts in the state. This could arise again this year in the funding and tax discussions.