CHICAGO - Gov. Rod Blagojevich on Tuesday proposed selling or leasing the state lottery to raise $10 billion as part of a plan to reform Illinois schools. His proposal includes $1.5 billion for school construction, performance pay for teachers and the consolidation of school districts.

"This education plan is historic, it's ambitious and it will fundamentally change the way we fund schools," Blagojevich said at a school on Chicago's South Side.

Details of the plan come just days after state Sen. James Meeks abandoned his third-party bid for governor because Blagojevich promised him increased funding for schools.

Republicans have criticized Blagojevich for focusing on education only to keep Meeks off the November ballot.

Meeks, a popular Chicago black minister, could have derailed Blagojevich's re-election bid by drawing critical black votes away from the Democratic governor.

Blagojevich's GOP rival, state Treasurer Judy Baar Topinka, on Tuesday called the plan a "stunt," saying it won't improve education and will cost the state money.

"I don't think it accomplishes what it says it's going to accomplish, and it's a big scam," she said.

The governor's proposal focuses on facilities, education programs, learning materials and school personnel.

The state also would increase the "foundation" level - the guaranteed minimum state spending on each student - by $250 million in the plan's first year. The current state budget would raise the level to just $5,334 for each student, instead of the recommended $6,405.

Under the governor's plan, $6 billion from the proceeds of any lottery deal would be set aside in a long-term trust fund and the remaining $4 billion would be mixed with other state money to provide $6 billion to schools over four years. The school construction money would come from bonds.

The governor's plan also includes improving school technology, providing $40 million to replace outdated textbooks and other initiatives such as full-day kindergarten.

The state also would be more aggressive in taking over failing school districts.

Other components in the plan include helping some schools offer after-school tutoring and helping underperforming schools extend the school year by at least a month.

Highlights of Blagojevich education proposal

Gov. Rod Blagojevich's proposal to overhaul the state education system promises to:

— Either lease or sell stock in the lottery to raise $10 billion.

— Provide $1.5 billion for school construction.

— Encourage school districts to consolidate.

— Encourage some schools to concentrate on particular themes, such as agriculture, and others to split into smaller units within the same building.

— Increase support for special education.

— Offer incentives for colleges to tailor their teacher training to fit Illinois' needs.

— Create a mentoring program to help superintendents improve.

— Work with unions and management to set up a system to reward successful teachers.

— Provide an extra $40 million to help schools replace old textbooks more often.

— Help schools buy the latest in computer equipment and software.

— Improve school libraries and hire more librarians.

— Improve vocational education.

— Continue expanding preschool and provide financial help for schools that switch to full-day kindergarten.

— Help schools with struggling students offer after-school tutoring.

— Help underperforming schools extend the school year by at least a month.

— Offer classes and programs to help parents keep track of their children's school activities.

— Raise the "foundation" level of funding guaranteed for every child.

— Require districts to publish their administrative costs on tax bills.

— Have the state take control of failing districts.

— Create a new council for long-term education planning.

Source: Governor's Office