How a School District Landed at the Springfield (IL) Bargaining Table

Kristen McQueary:

As chief financial officer for one of Illinois's largest school districts, Cheryl Crates watches the money.

Early this year, she was counting on $14 million more rolling in for Community Unit District 300, after the expiration of a tax break at Sears Holdings' 800-acre headquarters in Hoffman Estates; it is the Sears corporate campus, which includes an on-site auto center, walking trails and even a hair salon for employees. When Crates met with Hoffman Estates officials in March, she learned the money might not be coming after all because the tax break might not expire.

"I cried," Crates said. "The school district has cut for the last two years. We've had no wage increases, and we were planning on that revenue to bring down our class sizes. We have one algebra class with 47 students. It was devastating."

Crates and her school district had suddenly found themselves at the epicenter of Illinois's latest political and financial crisis, described by one lawmaker as round-robin blackmail among Midwestern states. Unless Illinois agreed to extend the tax break, Sears threatened to leave. The state of Ohio, for one, dangled $400 million in tax incentives as a lure.

Posted by Jim Zellmer at December 18, 2011 1:25 AM
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