LA. A. Committee Reports On 

 School Problems " . 



Declares Compulsory Consolidation of Rural School Districts 

 / . Is Impracticable ...,,. ,. . , 



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E. E. H0T70HTBT 



APPROPRIATION of money from 

 the general fund in the state treas- 

 ury to school districts in financial 

 difficulties, and speedy enactment of H. 

 B. 803 providing for the distribution of 

 13,574,050 among downstate elementary 

 schools were advo- 

 cated for the im- 

 mediate relief of the 

 school problem by 

 the I. A. A.'s special 

 education committee 

 in its report recent- 

 ly adopted by the 

 board of directors. 



"The responsible 

 state financial of- 

 ficers," said the 

 committee report, 

 "should be re- 

 quested to present such itemized infor- 

 mation about recent and present revenues 

 by sources and amounts, and about re- 

 cent and present expenditures of same 

 as will enable the General Assembly, if 

 possible, without increase in any kinds 

 of taxes, to appropriate special funds for 

 distribution of such school districts. 



"The committee does not believe that 

 any appropriation for this purpose 

 should disturb the present state school 

 funds or any special fund as has already 

 been done too often, but should be taken 

 only from general funds in the state 

 treasury." 



The committee pointed out that in- 

 formation indicates approximatfely 220 

 school districts in the state are in such 

 financial s^jijt* as to make it difficult, 

 if not ihfljossible, for them to meet their 

 current obligations. Most of these dis- 

 tricts are in the coal mining counties, 

 particulary in the southern third of the 

 state, in Cook county, and in the metro- 

 politan area around the City of Chicago. 

 Information indicates that very few 

 country school districts are having se- 

 rious financial troubles. 



The three principal causes of shortage 

 of funds as seen by the committee are: 

 (1) delinquency qjid forfeitures in prop- 

 erty taxes, (2) failure of the state to 

 pay elementary schools their full claims 

 against the common school fund for the 

 years 1930, 1931, and 1932, and (3) 

 gross inequality in the distribution of 

 property taxes collected for payment 

 into the state distributive nchnol fund. 



••nNF.. IMS 



It is now admitted by the stat'e au- 

 ditor, said the report, that Cook county 

 regardless of tax delinquency and for- 

 feitures therein was permitted to retain 

 from state taxes the full amount of all 

 1930 claims against the state school 

 fund, whereas all other counties were 

 permitted to retain only about 71 per 

 cent. This action penalized all down- 

 state counties for all delinquencies and 

 forfeitures of taxes in the entire state, 

 including the 90 per cent of all such 

 delinquencies and forfeitures which were 

 in Chicago and Cook county. 



Similarly the metropolitan area was 

 again permitted 75 per cent of its 1931 

 claims, while all other counties only 

 got 62 per cent. In the case of 1932 

 claims. Cook once more was permitted 

 to retain 81 per cent and other counties 

 only 60 per cent. 



As a perm'anent program for an 

 equitable and adequate taxing system, 

 it was recommended that the I. A. A. 

 use every effort in co-operation with 

 other organizations representing real 

 estate to: secure the submission and 

 adoption of a proper amendment to the 

 revenue article of the state constitution 

 at the earliest possible time. 



On the subject of consolidation of 

 school districts, it was pointed out that 

 consolidation would inevitably increase 

 taxes on rural property not only for 

 new grounds, buildings and other facil- 

 ities, but also for transporting pupils, 

 and furthermore it would transfer a 

 substantial portion of such cost from 

 cities and towns to rural communities. 



"In urban areas the greater portion 

 of taxable property (intangibles) can- 

 not be reached with a property tax. 

 Lower ability of farm people and farm 

 property to pay taxes is shown by the 

 fact that Illinois farmers who comprise 

 about one-seventh to one-eighth of the 

 entire population operate property of 

 nearly one-fourth of all assessed valu- 

 ations, but their own labor and the prop- 

 erty they operate produced only about 

 one-twentieth of the net income of the 

 entire population." 



Opposing enforced consolidation it was 

 emphasized that consolidation by vote 

 of each district affected, permitted by 

 present law, is far more fair under pres- 

 ent conditions. It was further shown 

 (Continued on page 2.'>> 



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