Moline Schools Will Sue Illinois Over Elliott Aviation Tax Exemp - News and Weather For The Quad Cities -

Moline Schools Will Sue Illinois Over Elliott Aviation Tax Exemption

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Moline schools will cut 24 teaching positions from its district heading into next year.

Blaming lower tax revenues and fewer retirements for the need to cut staff.

The district will also sue the state of Illinois over a law giving a Milan company a tax break.

A break it says hurts the district's students.

The tax exemption benefits Elliott Aviation.

The company rents property at the Quad City International Airport.

With the tax exemption, it pays no property taxes, and property taxes are the lifeblood of a school district.

Moline schools opposed the law during the legislative process, saying it would cost the district at least 150-thousand dollars in tax revenue each year.

Elliott Aviation argued the exemption will allow it to create jobs by making the company more competitive.

Its property is exempt in other states where it operates.

Lawmakers told KWQC at the time the bill was sent to Governor Quinn, they needed to do all they could to create jobs in Illinois.

Because Elliott Aviation was threatening to leave the state over the tax status.

Moline superintendent David Moyer says the law is unconstitutional because it benefits only one private company.

"In light of the budgetary pressures that we're facing and the loss of 24 full time equivalent teachers alone, that the district cant stand down and accept a permanent loss of a minimum of 150 thousand plus annually," says Moyer.

The law was signed by Governor Quinn at the beginning of February.

Elliott Aviation announced it would pump nine million dollars into the Quad City economy.

It actually hasn't taken affect yet, the law will give Elliott Aviation the exemption on July first.

It's not known how long it will take this lawsuit to work its way through the courts.