The effects of the Property Tax Extension Limitation Law upon revenue growth, bonded debt, and school business leader perceptions within selected Illinois school districts

This dissertation examined the financial effects of the Property Tax Extension Limitation Law upon Illinois school districts located in suburban Cook County and the collar counties of Will, Lake, McHenry, DuPage, and Kane. A descriptive-relational study was used to compare these school districts to other Illinois school districts where the Property Tax Extension Limitation Law was not implemented. The purpose of this study was to determine if the Property Tax Extension Limitation Law affected the revenue growth, bonded debt, and school business leader perceptions within these school districts.;An analysis of tax extension worksheets from tax years 1991–1998 found that the Property Tax Extension Limitation Law negatively affected the revenue growth of collar and suburban Cook County school districts. A significant difference was found between the collar and suburban Cook County school districts and other Illinois school districts where the Property Tax Extension Limitation Law was not implemented. No effect was found in terms of bonded debt for these school districts.;A closed-ended questionnaire was used to measure the perceptions of school business leaders in suburban Cook County and the collar counties. School business leaders perceived that the Property Tax Extension Limitation Law motivated them to pass referenda and increase bonded debt within their districts. School business leaders also perceived a significant effect of the Property Tax Extension Limitation Law upon the budget spending options, overall financial reserves, and overall wealth of their school districts.;Three different models of tax and expenditure limitation effectiveness were analyzed in this study. The Leviathan model of tax and expenditure limitation effectiveness was found to be operating in the collar counties and suburban Cook County. This model explained the high degree of effectiveness of the Property Tax Extension Limitation Law.;The findings of this study suggest that school districts should place political pressure upon the state legislature to amend the Property Tax Extension Limitation Law. School districts should also develop public relation plans to help pass referenda and use alternative sources of revenue to help mitigate the financial effects of the Property Tax Extension Limitation Law.