Waukegan School Board Backs 1% County Sales Tax Referendum for November Ballot

WAUKEGAN, Ill. – The Waukegan Community Unit School District 60 Board of Education voted in late April to support a measure that would ask Lake County voters to approve a 1% sales tax increase to fund public schools, a significant step toward placing the referendum on the November 3 general election ballot. Waukegan, the largest school district in the county, joins a growing coalition of districts advocating for the tax. For the referendum to appear on the ballot, school boards representing more than 50% of the students enrolled in Lake County public schools must pass resolutions of support by August 26. These resolutions direct the Regional Superintendent of Education, Michael Karner, to certify the referendum to Lake County Clerk Anthony Vega. If the referendum is placed on the ballot and subsequently approved by voters, it is projected to generate approximately $122 million in annual revenue for the county's public schools. According to projections, Waukegan's District 60 would receive an estimated $14 million of that total. Prior to Waukegan's decision, several other districts had already approved similar resolutions. These include Barrington Community Unit School District 220, Wauconda Community Unit School District 118, Lake Zurich Community Unit School District 95, Kildeer Countryside School District 96, Lake Buff School District 65, and Big Hollow School District 98. Together, these districts represent a substantial portion of the county's student population, and Waukegan's participation brings the coalition much closer to the required 50% threshold. Proponents of the measure emphasize that the revenue generated would be restricted to specific uses. According to legal analysis presented to the school boards, proceeds from the sales tax can only be used for long-term capital improvements, such as building renovations and major repairs like new roofs. The funds could also be allocated for hiring school resource officers or mental health professionals, addressing both infrastructure and student well-being. An additional argument in favor of the tax is that a significant portion of the revenue would be paid by non-residents. An analysis suggested that 52% of the sales tax revenue would come from people living outside Lake County, including shoppers from neighboring Cook and McHenry counties, as well as from Wisconsin. Proponents point to the county's major transportation arteries, such as U.S. Highway 41, as corridors that bring in outside consumers who purchase gasoline, food, and other retail goods. To address concerns from local property owners, some school boards are considering a companion resolution that would pledge to use a portion of the new sales tax revenue for property tax relief. This dual approach aims to provide a new funding stream for schools while potentially alleviating the burden on homeowners. The Waukegan school board's decision was anticipated, as several members had publicly indicated their support prior to the official vote. During a special meeting on April 23, board members Carolina Fabian, Jeff McBride, and Rick Riddle all stated their intention to vote in favor of the resolution, setting the stage for its passage the following week. This type of funding mechanism is not unique to Lake County. In a similar move, the Sycamore school board in nearby DeKalb County recently approved a referendum for a 1% countywide sales tax to benefit its school districts, indicating a broader trend among Illinois educational bodies seeking alternative revenue sources beyond property taxes. While additional school funding and potential property tax relief are appealing outcomes for residents, business owners in Lake County must analyze the direct operational impacts of a 1% sales tax increase. Such a change requires immediate adjustments to point-of-sale systems and accounting procedures to ensure compliance. For retailers, particularly those located near county lines, this tax hike could create a competitive disadvantage if neighboring counties like Cook, McHenry, or areas across the Wisconsin border maintain lower sales tax rates. We have seen clients in similar situations struggle with customer price sensitivity and the administrative load of managing new tax liabilities. Navigating these changes is where expert guidance on tax preparation and compliance becomes critical for maintaining financial health. At C&S Finance Group LLC, we help businesses adapt to evolving local tax regulations to ensure they remain compliant and competitive; business owners can learn more at csfinancegroup.com. With Waukegan's influential support secured, the focus now shifts to the remaining school districts in Lake County. The coalition has until the August 26 deadline to gather enough resolutions to cross the 50% student population threshold. Should they succeed, the next phase will be a public campaign to persuade a majority of Lake County voters to approve the measure in the November election.