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Quinn vetoes measure that would boost U-46 funding

Legislation would have come at other districts' expense, governor says

The emotional roller coaster in Elgin Area School District U-46's fight for state funding appears to have come to a screeching halt.

Gov. Pat Quinn Tuesday vetoed legislation that would change the school funding formula for U-46, which believes it is being shortchanged each year because of its tri-county location.

"I cannot approve a measure that would boost state aid to one district at the expense of others," Quinn wrote to members of the Senate, noting that districts across the state are facing flat funding and millions of dollars in delayed aid payments.

The legislation, House sponsor Keith Farnham's office had estimated, would have given cash-strapped U-46 an extra $22 million in 2010-11.

In a statement, Farnham, an Elgin Democrat, said he was disappointed by the governor's decision, noting that Quinn was depriving the 41,000-student district of its fair share of funding.

"I refuse to give up this fight even in the face of Governor Quinn's veto and those people who told me that I won't win against securing funding that has been currently going to Chicago Public Schools instead of our U-46 schools," Farnham said in a statement. "When the legislature returns to Springfield in the fall, I will work with my colleagues in the General Assembly to override this veto in a speedy manner and bring U-46 the funding it deserves. I understand that all schools need more money, but our community has been unfairly losing out."

U-46 officials believe the district is losing out on millions in state aid each year by being designated a predominantly Kane County school district, though most of the district's taxable property has been in Cook County since 2004.

District officials contended that the legislation would simply cause the state to slice the educational funding pie differently and would make U-46 "whole" again.

The "limiting rate" - the maximum property tax rate allowed under the suburban property tax cap law - determines the amount of local funding a school district gets. If it is overestimated, it appears the district will receive more in local property taxes than it actually does, and the state delivers less funding.

This school year, district officials calculated they should have netted $69.7 million in general state aid. But with Kane County working as the dominant and estimating county, U-46 will get only $58.3 million.

The state board gave U-46 a $7.1 million "administrative fix" this year to help deal with the shortfall.

The legislation was filed early this year by State Sen. Michael Noland, an Elgin Democrat. After a vocal fight from school officials involving several trips to Springfield, it passed the Senate with a 40-15 vote in March, and a 113-0-1 House vote in late April.

U-46 is missing nearly $30 million in state aid payments. It expects to begin next school year with more than a $40 million deficit.

The legislation had been sitting on the governor's desk since May 29.

Superintendent Jose Torres has not yet returned calls seeking comment.

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