ILLINOIS COUNTY SCHOOL FACILITY TAX (CFST) PUBLIC ACT

NON-TRADITIONAL APPROACH TO FUNDING PUBLIC EDUCATION  Public Act went into effect in October 2007  The law was modeled after a similar law that is currently in place in every county in Iowa.  Initially, county boards were required to approve the proposition. However, the Law was amended in August of 2011 and this step is no longer required.  The law allows county voters to approve a sales tax to fund school facility costs. 1% (1 cent) Maximum Can be implemented in ¼% increments

SEVERAL COUNTIES IN ILLINOIS HAVE ALREADY APPROVED THE MEASURE SINCE 2007  Illinois counties that have already passed the County School Facility tax include: Christian County Champaign County Jo Daviess County Macon County Greene County Williamson County Calhoun County Douglas County Jersey County Logan County

THE SCHOOL FACILITY REVENUE IS DESIGNED TO HAVE A LOW IMPACT ON KEY BUSINESSES AND PEOPLE ON A FIXED INCOME!  If a product is not currently taxed, it will not be covered under the “School Facility Tax.”  Services are not taxed  Everything in the municipal and county sales tax base is included in the tax base except for: Cars, Trucks, ATVs Boats & RVs Mobile Homes Unprepared Food Drugs (includes over-the-counter and vitamins) Farm Equipment and Parts Farm Inputs

WHAT PRODUCTS ARE ELIGIBLE UNDER THE SCHOOL FACILITY TAX?  Personal Care Items  Soft Drinks  Prepared Pizza from a Restaurant  Clothing  Jewelry  Technology Items (Phone, Computer, Tablet)  Gasoline  Etc.

APPROPRIATE USE OF REVENUES Eligible Uses  Security, Entrances, Safety, Disabled Access  Ongoing Maintenance  Architectural Planning  Durable Equipment (non-movable equipment)  Fire Prevention and Life Safety  Energy Efficiency  Roof Repairs  Parking Lots  Additions, Renovations & New Facilities Non-Eligible Uses  Direct Instructional Costs  Textbooks  Buses  Detached Furniture & Fixtures  Computers  Electronic Tablets  Movable Equipment  Operating Costs (Water, Gas & Electric)  Salaries and Benefits

HOW ARE THE FUNDS ACTUALLY USED?  Pay as you go capital projects Funds can be saved up over time  Issue new bonds for current capital needs Support bonds with projected revenues  Retire existing debt issued for capital purposes Abate property taxes Refund qualifying debt  ……… Or any combination of the above options

DISTRIBUTION OF FUNDS 2% withheld by IL. Dept. of Revenue (Same as all sales tax) R.O.E. Distributed by the Regional Office of Education on a per resident-pupil basis to all school districts in the county The money follows the student.

POTENTIAL IMPACT IN MACOUPIN COUNTY District % of District’s Equalized Assessed Valuation (EAV) located in Macoupin County Housed Enrollment (Macoupin County Residents)% of Total Estimated Annual CSFT per District Bunker Hill CUSD #899%6328.6%$188,151 Carlinville CUSD #1100%1, %$436,026 Gillespie CUSD #7100%1, %$397,010 Mount Olive CUSD #586%4596.3%$136,676 North Mac CUSD #3483%1, %$359,214 Northwestern CUSD #2100%3584.9%$106,624 Staunton CUSD #668% %$254,297 Southwestern CUSD #961% %$282,400 The following school districts have a small % of their student population who reside in Macoupin County: Greenfield, Panhandle, Litchfield, Franklin and Waverly.

EXAMPLES OF POTENTIAL PROJECTS OR RENOVATIONS FOR NORTH MAC CUSD #34

REPLACE ROOFS THROUGHOUT THE DISTRICT

UPGRADE ELECTRICAL, HVAC, PHONE, SECURITY AND TECHNOLOGY INFRASTRUCTURE IN ALL SCHOOLS

IMPROVE OUTDATED SCIENCE LABS

COMPLETE ADDITIONAL HEALTH/ LIFE & SAFETY UPGRADES

RENOVATE CLASSROOMS IN THE HIGH SCHOOL

UPGRADE DISTRICT PARKING LOTS AND GROUNDS

HOW DO YOU PLACE THE PROPOSITION BEFORE THE VOTERS?  School Boards adopt a resolution  When School Boards representing more than 50% of the resident student enrollment in the county adopt resolutions, the Regional Superintendent must certify the question to the Macoupin County Clerk.  Macoupin County Clerk, Pete Duncan, will place the County Facility Sales Tax on the ballot at the next regularly scheduled election.

REQUIRED LANGUAGE ON THE BALLOT  Ballot Language (cannot change) Shall a retailer’s occupation tax and a service occupation tax (commonly referred to as a “Sales Tax”) be imposed in Macoupin County at a rate of one (1) percent to be used exclusively for school facility purposes?  Voters who do not wish to declare a political party affiliation in the primary election may request a Non-Partisan Ballot to vote on this question only.

WHAT DOES IT TAKE TO BECOME LAW?  A simple majority of votes cast are needed for passage.  After the proposition is approved by the voters, the tax is imposed.  After the election, the ordinance and the final election results must be: Certified by the Macoupin County Clerk, and Filed with the Illinois Department of Revenue.  Money is received monthly beginning approximately four months after the tax goes into effect.  Remember, the money follows the student.

TIME LINE  MARCH 15, 2016 – Election  JULY 1, 2016 – 1 Cent Takes Effect  OCTOBER 2016 – Revenue Arrives At Local Districts