Financial impact of property tax caps on school districts and the effect on the tax rates in suburban Cook and Collar counties' public school districts in Illinois

The effects of the Property Tax Extension Limitation Law upon Illinois public school districts located in suburban Cook County and the collar counties of DuPage, Kane, Lake, McHenry, and Will were studied in this dissertation. Illinois public school districts in the collar counties and in Cook County were compared and analyzed to examine how they dealt with the Property Tax Extension Limitation Law for the years 1990–2001. The issues examined were operating tax rates, bonded debt, equalized assessed valuations, financial positions, demographic problems, and the perceptions of school business leaders.;An analysis of operating tax rates from fiscal years 1990–2001 found that the Property Tax Extension Limitation Law had a negative effect on school districts' ability to attain their legal rates in the collar counties and Cook County. A significant difference was found between the collar counties and suburban Cook County school districts. An analysis of bonded debt from fiscal years 1991–2001 showed school districts in the collar counties and Cook County were significantly higher in bonded debt after the Property Tax Extension Limitation Law than before. An analysis of the Illinois State Board of Education's Financial Profile System showed that the financial position of school districts in Cook County was worse than the collar counties by fiscal year 2001–2002. Some demographic areas were impacted more than others.;A self-designed survey measured financial information provided by the school districts and perceptions of school business leaders. School business leaders perceived that the Property Tax Extension Limitation Law has adversely affected the way school districts operate. School business officials perceived that the Property Tax Extension Limitation Law was the direct cause of shrinking cash reserves, budget cuts, decreased funding, an increase of tax rate referenda, and eroding operating tax rates in their school districts.;Both the financial information provided by the school districts and the Financial Profile System of the Illinois State Board of Education supported the perceptions of the school business leaders that current financial difficulties experienced by school districts in Cook County and the collar counties are due to the effects of the Property Tax Extension Limitation Law.