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"We have an obligation to our children. We owe them a fully-funded,
well-rounded, state-of-the-art education, and we can achieve that
with new teachers, new classrooms, new materials, and investment
that shows they are a priority and our future," Gov. Blagojevich
said. "We are not talking about a short-term fix – we are talking
generations of investment." "I want to thank Governor Blagojevich
for putting forward these proposals. He has really outlined a bold
and ambitious plan to dramatically change the state's role in terms
of school funding. If this plan goes forward, Illinois will begin to
move into the ranks of the more progressive states that have truly
made education a priority," said Arne Duncan, CEO of Chicago Public
Schools.
Helping Kids Learn continues the Governor's commitment to schools
by boosting funding by an unprecedented $1.5 billion in Fiscal Year
2008. Under the plan, general state aid to schools will increase by
$800 million, raising the Foundation Level by $686 to $6,020. With
more funds per pupil, schools can make investments to improve
textbook quality, modernize their technology, or invest in teachers.
"The IFT strongly endorses the Governor's education funding
reform plan. For the first time, a governor of this state has
pledged to fund public education in the way that is needed to give
our students world-class schools. This is a bold initiative. Kids in
Illinois will benefit for years to come once this bill becomes law,
and we intend to help make that happen," said Jim Dougherty,
President of Illinois Federation of Teachers, which endorsed the
Governor's Education Plan last week.
Under the plan, the state will give schools additional funds to
help afford special education teachers with $200 million in new
spending that will increase the state's reimbursement rate for
special education teachers -- the first increase districts have seen
since 1985. With $153 million, the Governor's plan will fully fund
'mandated categorical' programs like special education and
transportation. Chicago Public Schools will receive a 100 percent
reimbursement for these costs and a $4.6 million increase in funding
for bilingual education.
The plan will accelerate implementation of Preschool for All with
$69 million in state support and dedicate additional resources for
school districts that provide full-day kindergarten. With a $25.6
million increase in funding for early childhood education, ISBE and
CPS conservatively predict this increase will allow CPS to serve
approximately 3,000 more kids in FY08.
"I had to take time off when my kids were born, and I was just
able to go back when my kindergartener went to school. I was glad I
did it, but taking time off was a huge financial strain on me and my
family. So I am pleased with full-day kindergarten, because it
allows me to contribute to my family's well being. If I had only
half-time kindergarten, I would be behind another year financially,"
said Laura Holmes, mother of two Nettlehorst Elementary School
students.
The Helping Kids Learn plan provides $100 million to support
underperforming school districts that invest in after-school
tutoring, curriculum and textbook enhancements, longer school days,
or other proven strategies that raise student achievement.
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 The plan will also invest $1.5 billion in a capital construction
plan for projects to improve and upgrade classrooms and schools so
children can learn and teachers can teach in a more conducive
environment. In FY08, Chicago Public Schools would receive up to
$112 million for capital projects within the district.
The Governor's Tax Fairness Plan, unveiled during his budget
address Wednesday, will raise funds for schools, healthcare, and
paying down pension debt. In Illinois, the share of state revenues
coming from individual income taxes has consistently increased
during each of the last three decades. The state income tax burden
lies primarily with individuals -- many who are struggling to make
ends meet -- while the burden on businesses has gone down, even
while corporations are posting record profits. Gov. Blagojevich's
Tax Fairness Plan will reverse that trend.
"This funding plan makes corporations pay their fair share, and
it's about time. For the first time, we have a governor who's
willing to stand for the kids of Illinois, not only in the area of
providing $10 billion for the schools, but in the area of
healthcare," said Marilyn Stewart, President of CTU, to express her
support of the Governor's plan.
The Governor's Tax Fairness Plan implements a Gross Receipts Tax
(GRT) that has been embraced by many economists because of its broad
base and low rates. States including Washington, Delaware and Hawaii
have had a GRT for years, and recently, Ohio and Texas have adopted
a form of the tax. The tax will better reflect the changes in
Illinois' economy since the Corporate Income Tax was implemented
thirty years ago when goods dominated the state's economy. Today
'new economy' businesses -- primarily services -- represent the
majority of Illinois' business activity. In fact, goods-based
businesses make up only 35 percent of Illinois' economy, but pay 53
percent of the corporate income tax; services-based businesses make
up 65 percent of Illinois' economy, but pay only 47 percent of the
corporate income tax.
The GRT will only apply to businesses that make more than $1
million each year, which means that small businesses -- 75 percent
of all businesses in Illinois -- will be exempt. The GRT will tax
service industries at a low 1.8 percent, while manufacturers,
construction, retail and wholesale companies will be taxed at an
even lower .5 percent. Exports will not be taxed. The plan also
mitigates costs being passed on to consumers by excluding certain
goods, such as retail food and pharmaceuticals. By transitioning to
the GRT, Illinois will rid itself from loopholes that major
corporations have exploited and used to their advantage to avoid
paying their fair share of taxes to the state, and is expected to
generate $3 billion in new revenue in fiscal year 2008, and more
than $6 billion during its first full year in effect.
[Text copied from file received from
the
Illinois Office of
Communication and Information]
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