Illinois

Funding priorities for p-12: funding mechanism and changes to funding formula for p-12

Illinois uses a modified foundation level approach for its funding formula. Each year, the Illinois General Assembly sets the state foundation. This is done with input from a legislatively established funding advisory board (the Illinois Education Funding Advisory Board or IEFAB).

After the foundation level is set, that figure is compared to the amount of money (per pupil) that an individual school district can raise locally through the assessment of property taxes. Depending on the percentage of the foundation level that can be raised locally, school districts are categorized into three different funding tiers: flat grant districts (districts that can raise more than 175% of the foundation level, per-pupil, locally), alternative formula districts (districts that can raise between 93–175% of the foundation level), or foundation formula districts (district that can raise less than 93% of the foundation amount).

Although the General Assembly sets the state foundation level each year, it has not been fully funded since 2011.¹ The lack of full funding has resulted in a proration of 95% in 2012 and 89% in 2013, 2014, and 2015. The 2016 budget proposal from the Illinois State Board of Education, which, at time of writing, has not yet been approved, includes a proposal to adequately fund to the foundation level. The ISBE has requested a 2016 budget of $10.6 billion, which represents a 10.7% increase in funds from the 2015 budget. In contrast, the Governor of Illinois’ 2016 budget package calls for a 2.8% decrease in funding for K-12 schools. ²

Pressing state issues affecting p-12

In 2014, Senate Bill 16 was introduced in the Illinois Senate. The purpose of the bill was to replace the current general state aid funding mechanism with a needs-based formula. However, the bill did not pass out of committee. In 2015, Senate Bill 1, also called the School Funding Reform Act of 2015, was introduced. As part of SB1, legislators are asking for an additional $500 million, part of which is an “adequacy grant” to provide additional revenue to inadequately funded districts with an above average property tax rate. As of the writing of this, the bill is currently stalled, awaiting committee assignment.

Exclusive to p-12

Forces Diverting Funds from Traditional Public School Districts and/or Exclusive to Higher Education: Trends in State Funding for Public Institutions

Charter schools and virtual schools are current forces diverting funds away from traditional K-12 institutions. The Illinois Virtual School (IVS) is the Illinois State Board of Education’s statewide virtual school. They have an aggressive media campaign to attract students by informing them that they get a free computer, customized instruction, and fee-waived tuition. However, that is not the case for all students. Home-school students are entirely fee-paying and all other students may have to pay fees depending on the agreement between IVS and the local school district.

P-12 Per-pupil expenditure

In 2014, per pupil instructional spending was $7,094.³ With respect to revenue sources for local school districts in 2013, on average, 66% of revenue came from local sources, 26.1% was from state sources, and 7.9% was from federal sources.⁴

Allocation of State dollars and percent of the State Budget for P-12 and HE (just a figure and percentage)

The Governor’s 2016 proposed budget package is $61.8 billion, of which $10.1 billion is proposed for K-12 education. The ISBE requested $10.6 billion. It is unclear what the final amount budgeted to K-12 education will be.