21 Aug 2014
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Will Schools, Towns Lose State Funding?

The state legislature is considering a bill that would divert money from suburban governments and school districts in order to pay teachers' pensions, municipalities say.

Will Schools, Towns Lose State Funding?

 

The village of Morton Grove stands to lose $1.3 million under a bill the Illinois House could vote on soon.

The Northwest Municipal Conference, a coalition of many north and northwest suburban governments, warned its members yesterday that a bill that would cut state funding to municipalities, school districts, library districts and park districts could be considered as early as Wednesday.

By midafternoon, however, it sent out notice the bill would not be considered Wednesday, but it could be called soon.

Earlier:

State legislators need money to cover funding shortages for teachers' pensions in the Teachers Retirement System, according to the NMC, and they're looking to see if they can reduce the money that villages, schools, libraries, parks and townships receive. 

Ryan Horne, Morton Grove's village administrator, said Golf School District 67 could lose $387,000; Park View Elementary District 70 could lose $401,000; the Morton Grove Park District could lose $154,000 and the village of Morton Grove could lose $379,000. The total is $1.3 million.

The money comes from the Personal Property Replacement Tax, or PPRT. It's a tax corporations pay to the state, and the state pays 10 percent of the revenues it receives to the local taxing bodies.

Horne said he's concerned the state could lower that percentage from 10 percent, which would result in a significant loss of funding.

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