School Funding and Tax Reform Compromise Bill Summary & Comparison: HB755, Senate Amendment 2 - Metropolitan Planning Council

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School Funding and Tax Reform Compromise Bill Summary & Comparison: HB755, Senate Amendment 2

Chart summarizes and compares latest version of school funding and property tax reform with previous versions

What does House Bill 755 do?

  • Increases school funding to a level that experts believe necessary to ensure a quality education for all children. Increases the minimum per child amount the state pays to educate a child to $6,100, from the 2004-2005 level of $4,964, and provides a guarantee to continually increase appropriations to this level for years to come.
  • Relieves the property tax burden for school funding by 30% for all Illinois property owners and creates a tax credit for renters.
  • Improves funding for property-poor districts by “bringing the bottom up” without taking money away from districts with more local resources, ensuring that a child’s address does not determine the quality of their education.
  • Improves funding for all districts by fully funding all mandated special education programs at 100%.
  • Provides an additional $370 million for state universities and community colleges.
  • Creates a fairer tax system by reducing Illinois ’ regressive tax burden on the poor and working class families of Illinois by increasing the Earned Income Tax Credit.
  • Provides an additional $30 million for investments in early childhood education for children and their families.
  • Allocates an additional $190 million to counties and municipalities through the Local Governmental Distributive Fund.
  • Doubles the amount (to $1,000) eligible for families to deduct for educational expenses, including payment of tuition to private or parochial schools.

How does House Bill 755 do this?

House Bill 755 raises revenues for these important investments in education and property tax relief by:

  • Increasing the individual tax rate from 3% to 5% and increasing the corporate tax rate from 4.8% to 8%.

How much revenue does House Bill 755 generate?

  • It is estimated that by raising the individual and corporate tax rate, House Bill 755 will generate an additional $5.8 billion to fund education and decrease the property tax burden by at least 30%.

Click here to view a chart that compares the provisions of House Bill 755 with Senate Bill 750 and Senate Bill 1484.

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