5 Things to Know About Illinois’s New School Funding Formula

Last August, Illinois adopted a new evidence-based funding (EBF) formulafor providing new state funding for schools. The new EBF formula estimates what it actually costs to provide a quality education to students in each of Illinois’s 853 school districts (called the adequacy target) as well as the local tax resources available to the district to meet that funding level (their local capacity). State funds are then distributed with more money being directed to the school districts with the largest gap between their local capacity and their adequacy target.

The Center for Tax and Budget Accountability has released a new report covering how the new EBF formula is working. Here’s what you need to know about it.

  1. Collectively, Illinois school districts are $7.37 billion short of adequate funding.The legislature and governor have verbally committed to increasing K-12 education funding by $350 million each year over 10 years. Note that this amount covers less than half of the total additional funds needed to provide a quality education to every Illinois student.
  2. Only 146 districts (17%) had resources above their adequacy target. The other 707 districts (83%) are below their adequacy target.
  3. Those districts furthest from adequacy (known as Tier 1 schools), are spending on average $5,000/student less than their adequacy target. By contrast the school districts at or above their adequacy target (Tier 4 schools) are spending about $3,000/student above adequacy.
  4. Of the $366 million of additional state funding that went through the EBF formula, 89.1% went to Tier 1 schools.This indicates that the new formula is correctly directing the most new money to the districts most in need.
  5. 63% of the new funding went to school districts that had 59% or more of their students coming from low-income homes.6% went to districts with low-income students making up 40% or more of their population. Again, this indicates that the new EBF formula is directing additional funds to those students who need additional supports.

The new funding formula represents a significant step in the right direction towards improving Illinois’s least-equitable school funding in the country. However, closing the gap between current funding and adequate funding will require continued commitment from legislators and the governor to increase state school funding. As part of the new funding law, a Professional Review Panel was created to oversee implementation, and Illinois PTA has a seat on that panel. In addition, the scholarship fund set up by the law (which Illinois PTA opposed) to get around Illinois’s constitutional ban on providing public funds to private schools will divert up to $75 million to private schools each year and it is not entirely clear how those funds are being handled.