Illinois has experienced several years of increased public school funding, thanks to steady revenue growth and the implementation of a new funding formula in 2018. However, experts warn that maintaining or increasing current funding levels may be difficult due to flat revenue growth predictions and rising costs in other budget areas, such as pensions and health care. As the state prepares for the upcoming fiscal year, the Illinois State Board of Education (ISBE) and state lawmakers face significant challenges in balancing fiscal constraints with the pressing needs of the public education system.
The Evidence-Based Funding Model
Goals and Implementation
The Evidence-Based Funding (EBF) model, introduced in 2018, aims to establish an “adequate” funding level for each school district by considering factors like student enrollment, poverty levels, and the number of English language learners. The EBF model sets a statewide target for districts to achieve at least 90% of their adequacy target and mandates annual increases in state aid by a minimum of $350 million to move toward this goal. This method represents a significant shift from the previous funding system, which often left underfunded districts with few options.
Despite the EBF model’s ambitious goals, achieving equitable funding remains a significant challenge. By taking into account diverse factors influencing educational costs, the model intends to ensure that districts with higher needs receive proportionally higher funding. However, the complexity of funding adequacy brings with it several difficulties in execution and sustainability. As the model moves into its sixth year, it continues to shape Illinois’ educational landscape while requiring persistent adjustments and improvements to meet its targets.
Current Funding Status
Illinois’ adoption of the EBF model marked a significant step forward in addressing inequities in school funding. However, the reality on the ground suggests there is still a long way to go. Despite increased efforts and the annual mandated funding increments, three out of four children in Illinois continue to attend underfunded districts. This persistent underfunding indicates that many schools fall significantly below their adequacy targets, creating widespread disparities in educational resources and opportunities across the state.
The shortfall in funding is not merely a numeric deficit but represents real-world impacts on students and teachers. From outdated textbooks and insufficient support staff to deteriorating building conditions, underfunded schools struggle to provide quality education. The gap in funding undermines the broader goals of the EBF model, highlighting the need for continued focus on ensuring adequate resources are allocated to all districts. Comprehensive and sustained investment remains crucial for improving the adequacy and equity of school funding in Illinois.
Fiscal Environment and Budget Pressures
Projected Deficit and Revenue Growth
During their December meeting, members of the Illinois State Board of Education were briefed on the upcoming fiscal challenges. The Governor’s Office of Management and Budget (GOMB) forecasted a $3.2 billion deficit for the fiscal year starting July 1, 2025. This dire projection is based on predicted flat revenue growth of around $53.4 billion, coupled with a 6% increase in spending driven by statutory requirements, which include substantial contributions to pensions, Medicaid, state employee health care, and PreK-12 education.
Flat revenue growth poses a significant constraint for the state, indicating limited new funds to accommodate increasing expenditure demands. The 6% rise in spending underscores the growing financial obligations the state faces, leaving little room for discretionary allocation. Dealing with this deficit, while maintaining adequate school funding, will require the state to explore more innovative and potentially difficult fiscal measures. Lawmakers will need to make tough decisions to sustain both the fiscal health of Illinois and the educational needs of its citizens.
Competing Budgetary Demands
The projected budget deficit highlights the competing demands on Illinois’ financial resources. The state’s obligations extend beyond education, with significant increases anticipated in healthcare expenses, which are projected to rise by $1.1 billion. Pension contributions are also expected to grow by $437 million. Education, healthcare, and pensions together represent massive financial commitments, necessitating careful prioritization and strategic planning by lawmakers to balance these critical needs.
As the state grapples with these competing budgetary demands, the $444 million increase in school spending emerges as a key component of Illinois’ financial planning. Some of this anticipated increase is driven by the EBF model’s mandated funding growth. However, the inability to adequately address all these competing needs may necessitate cuts or reallocation in other areas, further complicating the budgetary landscape. The challenge for Illinois will be to manage these diverse demands without undermining the progress made in school funding equity and adequacy.
Funding Needs and Stakeholder Requests
Mandatory Categorical Spending
Illinois allocates nearly $11 billion, roughly 20%, of its $53 billion General Revenue Fund budget to public schools. The call for increased education funding primarily stems from two essential areas: the mandated annual increases outlined by the EBF model, and the costs associated with “mandatory categorical” (MCAT) spending. MCAT covers critical services, including transportation, free meal programs, and education for children in foster care. The state frequently prorates these costs, reimbursing school districts less than their total outlay, thus necessitating additional budgetary allocations to maintain consistent levels.
The shortfall created by prorated MCAT reimbursements places significant financial strain on school districts. Without full reimbursement, districts are left to cover the gap, often at the expense of other important programs and services. Andy Krupin, ISBE’s Director of Funding and Disbursements, highlighted the need for the General Assembly to add $142.2 million to next year’s PreK-12 budget to sustain current proration levels for MCAT costs. This necessity underscores the persistent challenge of balancing mandated expenditures with the need for additional state support.
Public Requests for Increased Funding
In addition to the required funding increases under the EBF model and MCAT expenses, public requests for significantly larger budget increases have emerged. During public hearings in October, stakeholders advocated for an additional $2.2 billion in funding. These requests included a $550 million boost to EBF funding and a $10 million increase for career and technical education, emphasizing the wide demand and varied needs within the educational community.
These requests reflect a diverse set of priorities, with careers and technical education viewed as essential for preparing students for the modern workforce. The substantial advocacy for additional funding highlights the broad recognition among education stakeholders of the inadequacies in current funding levels. To address these diverse needs, the state would need to find a balance between mandated funding increases, public requests, and overall fiscal health. This task presents a significant challenge in the context of a projected $3.2 billion deficit.
Advocacy for Higher EBF Investments
Addressing Educational Challenges
Jelani Saadiq, Director of Government Relations for Advance Illinois, has been a vocal advocate for increasing the EBF investment beyond the minimum $350 million. Saadiq argues that enhancing this investment is crucial to better addressing several persistent educational challenges, including chronic absenteeism and math recovery, and compensating for the expiration of federal stimulus funds. His advocacy is part of a broader push by educational stakeholders to secure more substantial and sustainable state investments in education.
Increasing the EBF allocation would allow schools to target specific challenges that impede student success. The expiration of federal stimulus funds, which temporarily bolstered school budgets during the pandemic, has left many districts seeking ways to sustain progress made during that time. Additional state investment would help in bridging the gap, ensuring that schools do not lose momentum in improving educational outcomes. This call for higher funding underpins the critical need to continually invest in the state’s future through education.
Supporting Disadvantaged Districts
The push for higher EBF investments also centers on the need to support disadvantaged districts more effectively. Despite the gains made since the EBF model’s introduction, underfunded schools are still prevalent, with many districts lagging significantly behind their adequacy targets. Increasing the funding would help mitigate this disparity, providing more students with access to quality educational resources and opportunities, regardless of their district’s economic status.
While broader consensus among educational stakeholders supports these additional investments, translating this into actionable policy amidst fiscal constraints remains challenging. The need for equitable education warrants an ongoing commitment from the state to ensure all students receive sufficient support. This commitment is critical for fostering an inclusive educational environment that offers every child the chance to thrive. Lawmakers face the task of balancing these needs with the state’s overall budgetary limitations.
Upcoming Budget Proposals and Legislative Decisions
ISBE and Governor’s Budget Proposals
As part of the ongoing budget development process, State Superintendent of Education Tony Sanders is scheduled to present his final budget proposal to the ISBE on January 15. This presentation will outline the educational funding needs and priorities for the upcoming fiscal year, setting the stage for subsequent legislative discussions. Following this, Governor Pritzker is set to deliver his budget address to the General Assembly on February 19, which will include detailed proposals on the allocation of state funds to various sectors, including education.
These forthcoming budget proposals and legislative decisions will play a crucial role in shaping the fiscal trajectory of public education in Illinois. The state’s ability to navigate its financial challenges while ensuring adequate funding for education will be tested in these discussions. The need to address the projected budget deficit, while preserving investments in education, healthcare, and pensions, will require innovative solutions and potentially difficult fiscal trade-offs. These budgetary decisions will have lasting impacts on the state’s educational landscape.
Balancing Financial Constraints and Educational Needs
In recent years, Illinois has benefited from increased public school funding, driven by steady revenue growth and a new funding formula implemented in 2018. This has allowed for improvements and expansions within the state’s public education system. However, experts caution that continuing to maintain or enhance these funding levels could prove challenging in the future. Predictions indicate revenue growth may plateau, while costs in other significant budget areas, such as pensions and healthcare, continue to rise. As Illinois gears up for the new fiscal year, both the Illinois State Board of Education (ISBE) and state lawmakers find themselves in a tough spot. They must navigate these fiscal constraints while addressing the urgent needs of the state’s public schools. Balancing these demands will require careful planning and creative solutions to ensure that the education system continues to receive adequate funding without compromising other critical state obligations.
