The Illinois House passed a bill yesterday 74-39 that will prevent local government bodies -- like schools, cities, and counties -- from increasing property taxes in any year when housing values have dropped, unless voters approve a tax increase by referendum. The bill, which now goes to the Senate, came a day prior to Gov. Pat Quinn's budget speech, during which the governor is expected to call for major spending cuts.
While homeowners and businesses might like the bill, school districts probably do not. As the Sun-Times notes, proposed limits on property taxes, the revenue that funds school districts, come as Quinn and state legislative leaders advocate transferring teacher pension payments from the state government to individual districts. The inability to raise property taxes, then, is another potential strain on school districts.