City of St. Charles Could Lose $80K in Tussle over Funding Regional Offices of Education

The City of St. Charles strongly opposes any diversion of state-collected municipal government revenue to pay for the salaries and benefits of ROEs.

By now, you probably know about the over funding for Regional Offices of Education (ROEs) in Illinois. The State of Illinois is attempting to determine the importance of these offices and the regional superintendents that operate them. The state is also attempting to find a source of money to fund the offices. While this issue may not appear all that important to residents of , any dispute over financial issues in state government could impact us.

Currently, the state is considering reducing revenue to local governments as a means to pay for the ROEs. Such a diversion would mean that the state is using local government revenues to pay for a financial obligation of the state.

Corporate Personal Property Replacement Tax (CPPRT) taxes are collected by the state on behalf of local governments. The revenue is used to replace money that was lost by local governments when our power to impose personal property taxes on corporations, partnerships, and other business entities was removed. This revenue stream was created when the new Illinois Constitution directed the legislature to abolish business personal property taxes and replace the revenue lost by local government units and school districts.

It has been reported that HB 3828 would amend the State Revenue Sharing Act to add "regional officials and local officials" to a section that authorizes CPPRT payments to taxing districts. We believe this would allow the diversion of the city's portion of the CPPRT in order to pay the state’s 44 regional school superintendents and expect this legislation to be addressed during the fall veto session.

The City of St. Charles strongly opposes any diversion of state-collected municipal government revenue to pay for the salaries and benefits of ROEs.

Annual revenue raised by CPPRT taxes over the past several years has varied from $1 billion to $1.5 billion per year statewide. According to the Illinois Department of Revenue, the total estimated amount of CPPRT allocations for FY2012 is $1.221 billion. Municipal governments receive 20% of CPPRT money on a statewide basis. St. Charles received approximately $90,000 in CPPRT revenue in FY 2011 and is expected to receive approximately $80,000 in FY 2012.

Any loss of revenue for the city will have consequences. Just as the state is facing a budget crisis, communities have had to make tough choices to balance their budgets. Municipalities have already reduced their expenditures commensurate to the decline in tax revenues that all jurisdictions have experienced. We believe the State of Illinois needs to do the same, without taking our share of the CPPRT funds.

I encourage you to contact your state legislator and tell them to leave the city's share of CPPRT revenue intact.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Brian Townsend October 25, 2011 at 02:00 AM
I'm not being evasive, but we really don't know. It depends on what the legislature decides to do. They could choose to take the ROE funding off the top. They could also take it from school district CPPRT proceeds. The current fiscal year total for ROEs has been reported at just over $11 million. That's a fraction of total CPPRT proceeds, so the overall impact on any one organization would be small. However, there are 2 concerns with this: 1. As ROE budgets increase in future years, more and more funds will be diverted from local governments. 2. This sets a dangerous precedent as it opens the door for CPPRT funds to be "skimmed" for other state government functions, rather than being dedicated to local governments.
Brian Townsend October 27, 2011 at 08:49 PM
The Illinois Municipal League reports that the IL House of Representatives failed to garner enough votes for passage of HB 3828. It required 71 votes for passage and received only 59. This sponsored pulled the bill out of the record and will try for another vote when the General Assembly is back in Springfield 11/8-11/10. Good news....for now.
Brian Townsend November 09, 2011 at 09:57 PM
The Illinois House approved legislation diverting proceeds from the Corporate Personal Property Replacement Tax (CPPRT) to fund salaries for Regional School Superintendents. The amendment to Senate Bill 2147 diverts revenue that would otherwise be paid to municipalities and other local governments throughout Illinois. The legislation would limit the CPPRT diversion to one year, although I'm not sure that makes me feel any better. I'm pleased to report that Rep. Tim Schmitz and Rep. Randy Ramey voted no. You can view the roll call here - http://www.ilga.gov/legislation/votehistory/97/house/09700SB2147_11092011_018000.pdf
Brian Townsend November 10, 2011 at 10:37 PM
The Senate approved legislation to divert CPPRT revenue away from local governments in order to reinstate the salaries and benefits of regional superintendents of education. The legislation now goes to the Governor. I'm pleased to report that Sen. John Millner and Sen. Chris Lauzen voted against this legislation. You can view the roll call here - http://www.ilga.gov/legislation/votehistory/97/senate/09700SB2147_11102011_001000C.pdf
Brian Townsend November 17, 2011 at 08:47 PM
Governor Quinn signed legislation authorizing a one-year diversion of approximately $13 million in CPPRT revenue into law as P.A. 97-0619.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »