One of the many issues facing Illinois state lawmakers in the coming year is whether or not and how to restructure school funding in Illinois. Schools throughout the state currently receive their operational and instructional costs from three sources: Local property tax revenue, state funding and federal education money.
State Sen. Andy Manar introduced Senate Bill 16 in an effort to distribute school funds more evenly across the state. The bill proposes that a portion of the revenue from wealthier districts is distributed to poorer districts to make students’ education statewide more equal. The passed the Illinois Senate in May but did not get a vote in the House. It’s expected to be re-introduced when the new, 99th General Assembly convenes in January.
In Illinois, much local education funding comes from property taxes within the district. Areas with higher property values pay higher property taxes, meaning more money is then funneled into the schools in the area. SB 16 would devise a formula to move some money from the wealthier districts to less-affluent schools.
State education funding in Illinois is determined through two different grants given to the districts. The Illinois State Board of Education says that the first grant is a basic action designed to make sure each district has enough money to meet state per-pupil spending guidelines.
From the ISBE:
No district receives the full Foundation Level per pupil –instead they receive an amount that, when combined with local resources per pupil, achieves the Foundation Level.
This is what the ISBE says about the second grant, which is intended to assist low-income students in a given district:
The second grant is the supplemental GSA grant for low-income students. This grant, which is not equalized, is based on the proportion of low-income students in a district. The amount paid through this grant increases as the proportion of low-income students in a district increases.
The formula used means that the more low-income students in a district, the more money per student the state gives that district. In 2014, the Illinois government received $1.93 billion in these General State Aid poverty claims in 2014, up nealy 9 percent from 2013. Districts must meet public health, student attendance and curricular requirements to receive this money.
In fiscal year 2014, the Illinois state government spent $9.8 billion on education. Gov.-elect Bruce Rauner has said he would like to increase the state’s education budget through increased efficiency in other areas.
Even though the U.S. Constitution says that public education financial regulaitons and funding are to be managed at the state level, schools still receive federal money. The U.S. Department of Education says this is because “[t]here is also a compelling national interest in the quality of the nation’s public schools.” Congress has therefore set aside legislative mechanisms to give extra support beyond state help, such as Title I and Reading First.
The U.S. federal government spent about $141 billion, or 4 percent of the entire budget, on education in the 2014 fiscal year, says the New America Foundation. Some of this money is sent straight to the individual districts and some is sent to the state and then distributed to districts. States can decide whether or not to accept this grant money.
The New America Foundation presented this chart of the Department of Education’s 2014 allocations:
Advance Illinois says Illinois public schools have lost $1.4 billion since 2010 due to funding cuts, a fact the organization blames partly on the state’s overall economic crisis. By Illinois state law, each school must spend at least $6,000 per year on every student. Many schools were unable to meet that requirement in 2013 because only 89 percent of required state funds were disbursed.
From Advance Illinois:
The budget cut most hurts disadvantaged districts. The 20 percent of students enrolled in the poorest school districts are losing $160 million in general state education funds due to proration this year, while the 20 percent of students in school districts with the fewest poor students are losing $30 million.
But before Illinoisans can figure out what the best reform plan is, we’ve got to understand what’s happening currently. On average, Illinois schools get most of their funding from local sources–66 percent. State funding makes up 26.1 percent of Illinois districts’ money and 7.9 percent of their money comes from federal money. There are a total of 2,072,991 students enrolled in Illinois’ public schools in, according to Megan Griffin at the ISBE, 864 Category 2 public school districts.
Here are the percentages of local, state and federal funding the top 10 biggest (by enrollment), top 10 smallest and 10 median-sized school districts in the state according to the Illinois State Board of Education.
Districts with the top 10 highest enrollment during the 2013-2014 school year:
1. Chicago Public Schools
Enrollment: 400,994
2014 Budget: $5.3 billion
Local funding: $2.7 billion
State funding: $1.9 billion
Federal Funding: $800.9 million
2. SD U-46
Enrollment: 40,537
2014 budget: $450 million
Local funding: $305.5 million
State funding: $108.4 million
Federal funding: $35.5 million
3. Rockford SD 205
Enrollment: 29,160
2014 budget: $370 million
Local funding: $194.6 million
State funding: $129.9 million
Federal funding: $45.5 million
4. Indian Prairie CUSD 204
Enrollment: 28,706
2014 budget: $320 million
Local funding: $271.4 million
State funding: $38.4 million
Federal funding: $10.2 million
5. Plainfield SD 202
Enrollment: 28,560
2014 budget: $260 million
Local funding: $176.8 million
State funding: $72.3 million
Federal funding: $10.7 million
6. CUSD 300
Enrollment: 20,888
2014 budget: $220 million
Local funding: $172.2 million
State funding: $29.5 million
Federal funding: $14.3 million
7. Valley View CUSD 365U
Enrollment: 17,704
2014 budget: $220 million
Local funding: $164.3 million
State funding: $41.1 million
Federal funding: $14.3 million
8. Oswego CUSD 308
Enrollment: 17,605
2014 budget: $190 million
Local funding: $137.4 million
State funding: $48.3 million
Federal funding: $4.4 million
9. Naperville CUSD 203
Enrollment: 17,271
2014 budget: $250 million
Local funding: $218.5 million
State funding: $24.3 million
Federal funding: $7.3 million
10. Waukegan CUSD 60
Enrollment: 16,899
2014 budget: $220 million
Local funding: $82.6 million
State funding: $119.5 million
Federal funding: $18.5 million
Districts with the 10 median-biggest enrollments:
1. Hazel Crest SD 152-5
Enrollment: 957 students
2014 budget: $14 million
Local funding: $6.4 million
State funding: $6.2 million
Federal funding: $1.5 million
2. Casey-Westfield CUSD 4C
Enrollment: 954
2014 budget: $9 million
Local funding: $3.8 million
State funding: $4.5 million
Federal funding: $666,000
3. Chester CUSD 139
Enrollment: 948
2014 budget: $9 million
Local funding: $3.6 million
State funding: $4.6 million
Federal funding: $792,000
4. Illini Bluffs CUSD 327
Enrollment: 942
2014 budget: $9 million
Local funding: $6.7 million
State funding: $1.9 million
Federal funding: $351,000
5. South Holland SD 150
Enrollment: 939
2014 budget: $10 million
Local funding: $7.3 million
State funding: $1.8 million
Federal funding: $870,000
6. Hoover-Schrum Memorial SD 157
Enrollment: 938
2014 budget: $14 million
Local funding: $9.8 million
State funding: $2.9 million
Federal funding: $1.4 million
7. West Central CUSD 235
Enrollment: 934
2014 budget: $7.7 million
Local funding: $3.6 million
State funding: $3.5 million
Federal funding: $523,600
8. Putnam County CUSD 535
Enrollment: 926
2014 budget: $9.5 million
Local funding: $7.4 million
State funding: $1.6 million
Federal funding: $427,000
9. Centralia HSD 200
Enrollment: 925
2014 budget: $12 million
Local funding: $5.8 million
State funding: $5.4 million
Federal funding: $768,000
10. Pecatonica CUSD 321
Enrollment: 918
2014 budget: $10 million
Local funding: $6.8 million
State funding: $2.9 million
Federal funding: $250,000
10 smallest districts by enrollment:
1. Lostant CUSD 425
Enrollment: 70
2014 budget: $1.7 million
Local funding: $1.3 million
State funding: $351,900
Federal funding: $83,300
2. Buncombe Cons SD 43
Enrollment: 67
2014 budget: $650,000
Local funding: $208,650
State funding: $366,6000
Federal funding: $74,750
3. Farrington CCSD 99
Enrollment: 64
2014 budget: $540,000
Local funding: $122,040
State funding: $326,160
Federal funding: $91,800
4. Steward ESD 220
Enrollment: 63
2014 budget: $1.1 million
Local funding: $864,600
State funding: $160,600
Federal funding: $75,900
5. McClellan CCSD 12
Enrollment: 61
2014 budget: $460,000
Local funding: $219,880
State funding: $205,160
Federal funding: $34,960
6. Hoyleton Cons SD 29
Enrollment: 58
2014 budget: $810,000
Local funding: $478,710
State funding: $290,790
Federal funding: $41,310
7. Dalzell SD 98
Enrollment: 55
2014 budget: $610,000
Local funding: $253,760
State funding: $322,080
Federal funding: $34,160
8. Rooks Creek CCSD 425
Enrollment: 48
2014 budget: $810,000
Local funding: $633,420
State funding: $136,890
Federal funding: $39,690
9. Cherry SD 92
Enrollment: 45
2014 budget: $700,000
Local funding: $421,400
State funding: $240,100
Federal funding: $38,500
10. Ohio CHSD 505
Enrollment: 34
2014 budget: $1.3 million
Local funding: $1.1 million
State funding: $152,100
Federal funding: $24,700
Overall, it seems that larger districts are more locally funded, with some notable exceptions, such as Illini Bluffs and Waukegan. The districts with more students are more likely to be located in larger metropolitan areas where property values, and therefore property taxes, are higher. (Even in districts with small enrollments, the schools with the bigger budgets tend to see a higher portion of their funding come from local sources, such as Ohio CHSD 505.) This is especially true in the Chicago suburbs. That means that if SB 16 passes, overall, many suburban districts will be giving money to smaller districts in central or southern Illinois.
NEXT ARTICLE: Andy Manar: Zip code should not determine the quality of any child’s education
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