Taxpayers Lack Standing to Challenge Illinois Education Funding System

In an opinion filed on October 28, 2011, the 4^th District Appellate Court held in Carr v. Koch that two taxpayers lacked standing to challenge the Illinois educational funding system found in Section 18-8.05 of the School Code.  Section 18-8.05 provides for State funding that school districts may receive in order to guarantee a minimum level of per pupil financing.

The taxpayers argued that the funding system violated the equal protection clause of the Illinois Constitution by requiring taxpayers in low property value school districts to pay a higher tax rate than taxpayers owning similarly valued property in school districts with high property values.  Meanwhile, despite paying a higher tax rate, per pupil expenditures were much lower in property-poor school districts than in property-rich school districts.  According to the plaintiffs, this system violates the equal protection clause of the Illinois Constitution because it is not rationally related to a legitimate legislative interest.

However, the appellate court did not consider the substance of the plaintiffs' argument because it determined that the plaintiffs did not have standing to challenge the funding system.  According to the court, local school districts establish tax rates independently of the funding system set forth in Section 18-8.05 of the School Code.  Thus, the funding system had no direct effect on the plaintiffs' tax rates, and the plaintiffs could not show that they were actually injured by the defendants.  Without an injury traceable to the defendants' actions, the taxpayers lacked standing to challenge the funding system.