|
 State lawmakers keep giving ratings
agencies reasons to downgrade Illinois government: pension crises, years of bad
budgets and a two-year budget impasse are just a few examples. All have caused
the credit ratings of various Illinois governments – from cities to universities
to the state itself – to collapse. Many are now junk-rated and the state is just
one notch away from junk itself.
Now the ratings agencies have yet another reason to downgrade some Illinois
governments: the state’s failure to send education funding to school districts
like it was supposed to this week.
The state missed making its payments to districts because state money for
education has not technically been appropriated yet. The money is locked up due
to the current fight in Springfield over the state’s new education funding
formula bill and the bailout of Chicago Public Schools it contains.
Until lawmakers resolve that fight, the state won’t be able to distribute
education funding. And that means school districts are at risk of being
downgraded.
 Moody’s Investors Service warned Illinois school districts on August 16 that the
state’s failure to distribute state aid on time is a “credit negative” for
Illinois’ school districts.
The ratings agency also warned that property-poor districts will be the most
negatively affected if the school funding impasse continues.
Many districts in Illinois are heavily dependent on state education dollars in
order to function. Without state aid, several districts have warned they’ll run
out of funds in just a few months.
Illinois school districts are at risk of a downgrade and students are at risk of
missing school because of lawmakers’ willingness to play games with education
funding.
[to top of second column] |
Two months ago, the
General Assembly passed a record-spending budget – which included a
$5 billion dollar tax hike. The budget funded everything, from
social services to higher education to Medicaid, except K-12
education.
Education funding was made dependent on the passage of the new
education funding bill, Senate Bill 1. But SB 1 was withheld by the
Illlinois Senate from Gov. Bruce Rauner for nearly two months.
Lawmakers were trying to force the governor to sign the bill by
waiting until school was about to start before sending it to his
desk.
Lawmakers finally sent
SB 1 to Rauner at the beginning of August. Rauner placed an
amendatory veto on the bill, cutting out the Chicago bailout
language and creating a more level playing field for districts going
forward.
Since then, the Senate has voted to override the governor’s
amendatory veto. No vote has happened in the Illinois House yet.
The two-month delay lawmakers’ engineered has brought Illinois to
the brink of yet another crisis.
Lawmakers are arguing about the incredibly complex education funding
system – and the governor’s amendatory veto – just days before many
schools are set to open for the year.
That isn’t right. Illinois’ school children – and school district
funding – should not be used as pawns in yet another political
fight.
If politicians can’t agree on an education funding solution
immediately, they should implement the state’s existing education
funding formula – as flawed as it may be – so children can attend
school without disruption.
With funding in place, lawmakers can get back to negotiating
education funding reform without a crisis looming over them. And
school districts across the state won’t be at risk of more
downgrades.
Click here to respond to the editor about this article
|
