Greater Rockford Chamber of Commerce opposes proposed 1% county school facility sales tax

The Government Affairs Committee (GAC) of the Greater Rockford Chamber of Commerce (GRCC) is chartered to advance policies that reflect and represent the collective interests of the business community and support the overall health, vitality, and competitiveness of the regional economy. Last year, the committee established four core policies that reflect this charter: education and workforce development, business development, public safety, and tax and regulation.

The GRCC’s policy statement on taxes reads, “A fair, predictable, and transparent tax and regulatory environment is essential to a strong, competitive regional economy. The Chamber supports fiscal policies that prioritize long-term economic growth, business stability, and private investment. Government spending should be efficient, accountable, and aligned to foster a strong business climate.”

As new taxes and regulations are proposed, the Government Affairs Committee considers and evaluates them based on their impact on business competitiveness, economic growth, and the overall health of the local economy. In reviewing the county-wide school facility sales tax on the ballot for March 17, the committee concluded the following:

• Winnebago County communities already face some of the highest combined sales tax rates in the region, placing additional pressure on residents, small businesses, and employers. Increasing the sales tax further risks undermining consumer spending, retail competitiveness, and the broader economic vitality of the county, particularly at a time when affordability remains a significant concern.
• While the GRCC recognizes the importance of safe, modern school facilities and supports thoughtful investment in education, a countywide sales tax is a blunt funding mechanism that disproportionately impacts working families and local businesses.
• Furthermore, the referendum does not include a sunset clause. Without a defined end date, the tax lacks a clear mechanism for accountability and denies voters the opportunity to periodically reassess whether the tax remains necessary or effective.
• The GRCC is also concerned that no detailed plan has been made public outlining how sales tax revenues would be distributed among school districts or how funds would be prioritized and spent. The lack of clear allocation criteria and transparency makes it difficult for taxpayers and businesses to understand the long-term fiscal impact or evaluate whether the proposal delivers equitable and measurable outcomes across the county.

The GRCC believes that long-term tax measures should include transparency, defined timelines, clear accountability standards, and opportunities for voter review. Absent these safeguards, the proposed tax raises concerns about ongoing cost burdens without sufficient public oversight.

The GRCC encourages continued exploration of alternative funding strategies that balance school facility needs with fiscal responsibility, equity across jurisdictions, and a competitive economic environment for businesses and families throughout Winnebago County.