Gaming, Tax Reform on Table in Illinois School Aid Debate

In search of more money for schools, elected officials in Illinois are weighing two markedly different funding strategies, both of which have proved popular in other states: raising income taxes while cutting property taxes, or tapping into more gambling revenues.

Some members of the Illinois Senate back the idea of swapping higher income taxes for lower property taxes, a trade-off they say would bring a more stable source of cash, and greater equity, to school districts across the state.

But that proposal faces a major obstacle in Gov. Rod R. Blagojevich, who says he will not support any kind of a tax increase. The governor considers the proposed tax swap to be a tax hike,...