2. 5 th largest population (1) 5 th highest personal income (1) 12 th highest personal income per student (1) 48 th in combined state and local tax burden (2) (1) Source: "Condition of Public Education 2003," Illinois State Board of Education, December 2003 (2) Source: “Federation of Tax Administrators” How Illinois Compares Nationally

3. So What’s the Problem? Nationally...  Illinois ranks 5 th in personal income. (1)  Illinois ranks 48 th in total state and local tax burden. (2) The result...  Illinois is a wealthy state AND a low taxed state. (1) Source: "Condition of Public Education 2003," Illinois State Board of Education, December 2003 (2) Source: “Federation of Tax Administrators”

4. The Illinois Structural Deficit (How revenue growth will not keep pace with the cost of current services)

5. Required Pension Payments for All Retirement Systems FY 2006 - FY 2045 The pensions included are: Teachers’ Retirement System, State Universities Retirement System, State Employees’ Retirement System, General Assembly Retirement System, Judges’ Retirement System.

6. Illinois Over-relies on Local Taxpayers 2 nd in local share of tax revenue for schools* 49 th in state share of tax revenue for schools * Excluding Washington, D.C. (not a state) Source: NEA Rankings and Estimates – November 2006

7. Disparity in Resources Per Pupil Equalized Assessed Valuation (value of property upon which the tax rate is calculated):  From a low of $10,920  To a high of $1,885,586  Poor areas often pay higher tax rates and generate less funding East St. Louis #189$10,920 Rondout #72$1,885,586 Source: Illinois State Board of Education “Financial Statistics 2004-2005”

8. Formula for Inequality P er Pupil Education Spending Illinois has a very large gap between highest and lowest spending districts. State’s Highest District:$28,285 (1) State’s Lowest District:$4,281 (1) (1) Source: Illinois State Board of Education “Statistics 2004-2005 (Operating Expenditures Per Pupil)”

9. A Tale of Two Schools EAV Per Pupil$1,504,040$76,314 Tax Rate$1.05/$100$5.91/$100 Instructional Expend/PP$8,831$4,526 Operational Expend/PP$15,365$7,579 Source: Illinois State Board of Education “Financial Statistics 2004-2005” Lake Forest #115 Prairie Central #8

10. Invest in Excellence To effect excellence and equity in Illinois public education and to effectively advocate for our members. IEA Mission

11. Invest in Excellence -- Principles Provide adequate resources to all pre K-12 public schools. Provide adequate resources to all public higher education institutions. Provide a long-term solution for pension system stability and funding. Do no harm to any public education entity. Incorporate positive components resulting in increased student achievement.

12. What Can You Do?