Illinois School Funding Reform August 2014

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Agenda

What’s wrong with education funding in Illinois?

How does IL School Funding Reform Act of 2014

help?

Understanding the law’s impact

Funding coalition

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Note: Appropriations adjusted for inflation

Source: Illinois State Board of Education, Enacted Budgets 2006-2015

$8,194

$6,805

$7,330

5,000

6,000

7,000

8,000

9,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ap

pro

pri

atio

n (2

01

4 $

M)

Funding is down

17% from 2009

Illinois has cut $1.4 billion from the education budget since 2009

3

128

102

83

77

0 20 40 60 80 100 120 140

Equity ratio (percent)

IL

Bottom 10 average (most regressive)

US Average

Top 10 average (most progressive)

-40%

Equity ratio is the ratio of cost adjusted (predicted) state plus local funding per pupil for the highest quintile poverty districts to the lowest quintile poverty districts (where poverty is measured by the Census). the local equity ratio includes only local revenues. Note: IL ranks 5th overall for local equity Source: Center for American Progress, "The Stealth Inequities of School Funding", APA report to EFAC

Illinois generally spends less on low-income students than their peers (in fact, it is the second worse in the US)

Top states invest 25% more in the education of their neediest students, while IL invests 25% less.

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Illinois’s education foundation level falls short of the state’s own recommendation of adequacy…

Source: Education Funding Advisory Board, Illinois State Board of Education; Advance Illinois analysis of FY2013 General State Aid entitlement calculations, February 2013

8672

6119

3000

4000

5000

6000

7000

8000

9000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fou

nd

atio

n L

evel

of

Fun

din

g Pe

r St

ud

ent

Foundation level of funding recommended by EFAB

Foundation level of funding set by Illinois Legislature

-2,553 Gap

5

8672

6119

5700*

3000

4000

5000

6000

7000

8000

9000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Fou

nd

atio

n L

evel

of

Fun

din

g Pe

r St

ud

ent

Foundation level of funding recommended by EFAB

Foundation level of funding set by Illinois Legislature

Foundation level allocated by Illinois Legislature, thus triggering proration

Proration

…and is further reduced when the state prorates

*Estimate of foundation level based on current funding levels Source: Education Funding Advisory Board, Illinois State Board of Education; Advance Illinois analysis of FY2013 General State Aid entitlement calculations, February 2013

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Districts with the lowest property wealth lose 5.5% vs. 0.5% for those with the highest property wealth

Districts with the most low-income students lose 4.8% vs. 0.8% of those with the least low income students

0

-50

-100

-150

-200 FY1

3 G

SA f

un

din

g lo

ss (

M)

CPS¹ Q5 Q4 Q3 Q2 Q1

$100 per student

$519 per student

Proration disproportionately hurts the state’s most disadvantaged students

1Chicago Public Schools (CPS) is its own category as it represents 22 percent of the state’s enrollment; CPS is not included within the other quintiles.

$394 per student

Most low-income

Least low-income

Illinois education funding does not meet the State’s current definition of adequacy and is getting worse

Each quintile represents ≈ 20% of the

Illinois students1

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SB16 would direct state dollars where they are most needed

12.9 11.9

11.2 10.2

11.6

13.8

12.4 11.5

11.0 10.6

12.4

13.7

6

8

10

12

14

16

Q1 Q2 Q3 Q4 Q5 CPS

Op

erat

ing

Exp

end

itu

re P

er P

up

il ($

K)

Current System SB16

0

93%

Least low-income Most low-income

11% Average DHS% 23% 39% 56% 80%

SB16 ensures that state funds will be distributed based on student need, making a more equitable system

Note: funding excludes capital spending 1Chicago Public Schools (CPS) is its own category as it represents 22 percent of the state’s enrollment; CPS is not included within the other quintiles. Source: ISBE FY13 state disbursements & ILearn FY13

1

8

Taking into consideration local ability to pay would direct state dollars where they are needed most

Note: funding excludes capital spending 1Chicago Public Schools (CPS) is its own category as it represents 22 percent of the state’s enrollment; CPS is not included within the other quintiles. Source: ISBE FY13 state disbursements & ILearn FY13

Total district funding is not directed towards IL’s neediest students, despite increased needs for adequate funding

93%

Least low-income

12.1 11.6

11.0 10.9

11.6

13.4

4

6

8

10

12

14

16

1 2 3 4 5 CPS

Tota

l fu

nd

ing

per

pu

pil

($K

)

0

Q2 Q1 Q3 Q4 Q5

Most low-income

CPS1

11% Average DHS%

0

23% 39% 56% 80%

Each quintile represents ≈ 20% of the

Illinois students1

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2 2

How the Illinois School Funding Reform Act of 2014 works

The minimum level of funding for each district will be determined by its students' needs

The state will contribute the difference between what is needed and what the district is able to pay

1 2

Base Amount

Current base amount is set by current foundation levels

Additional Student Need*

*Need includes poverty, special education, English language learners, etc.

District Funding

State Funding

*Resources are based on local property values

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Included in formula Variable across category Not included in formula

% low income (DHS)

District property wealth (EAV)

*The Chicago Block grant does have student need factors, but relies on data from 1985 in its formula. Note: Categoricals include some competitive grants. Additional competitive grants represent very small portion of total spend.

Supplemental grants

Chicago block grants*

Funding component

Formula grants

Early childhood

All other categoricals

% of state funding

45%

23%

8%

4%

20%

Despite low-spending from the state, less than half of State education dollars consider a district’s ability to support its schools

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80

60

40

20

0

100

Current system

Perc

ent

of

sta

te f

un

din

g

Integrated formula

GSA formula

Categorical

Supplemental grant

Chicago block

1.See backup page for additional detail on categoricals included in formula Source: ISBE 2014 Budget Book, ISBE FY13 State Disbursements

Categorical

To create an integrated formula, Illinois would combine all GSA and most categoricals1 and allocate according to a single, transparent, integrated formula

An integrated formula can simplify how state dollars are distributed…

Integrated formula

Categorical

An integrated formula would ensure distributions are consistent across funding streams

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Student Need Additional Weight (above base amount)

Poverty 25 percent to 75 percent per student based upon concentration of poverty (See next slide for further explanation)

Special Education (Students who need exceptional levels of service will be funded separately)

100 percent

English Language Learning 20 percent

K-8 Gifted and Talented 1 percent

High School Outcomes: AP, Dual-credit courses

2 percent

High School Outcomes: Career Pathways Completers

3 percent

Transportation 6 – 12 percent (range is based upon density/square mile and type of transportation)

Source: Illinois School Funding Reform Act

The legislation recommends additional weights for poverty, Special Education, English language learning and other student needs

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• A district with a poverty concentration that is less than 30 percent, will receive an additional weight of 25 percent above the base amount for every low-income student.

• A district with a poverty concentration above 30 percent will receive an additional weight between 25 and 75 percent above the base amount for every low-income student, based on the district’s concentration of poverty

SB 16 proposes a poverty concentration amount that would be the highest nationwide

0

1,000

2,000

3,000

4,000

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Stat

e fu

nd

ing

per

pu

pil

($)

Poverty concentration (percent of low-income students)

SB16 Current System

NOTE: Senate Bill 16 makes clear that poverty counts are based upon students who receive a free or reduced-price meal rather than the percent of students who receive services from the Department of Health and Human Services.

The poverty weight would be determined based upon a district’s concentration of student poverty

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Local Impact Based on SB16

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The road to the Illinois School Funding Reform Act of 2014

The Illinois Senate unanimously voted to create an Education Funding Advisory Committee, recognizing that Illinois public education funding was ripe for review

Jul. 2013

Feb. 2014 The bipartisan Committee released its recommendations for a new state education funding system

Apr. 2014 The Illinois School Funding Reform Act of 2014 (SB 16) was filed, building upon this groundwork

May 2014 The Illinois Senate passed the Illinois School Funding Reform Act of 2014 with 32 Yeas, 19 Nays and 6 present votes

Summer & Fall 2014

Build a coalition of organizations that will support the passage of the Illinois

School Funding Reform Act into law

Winter 2015

SB16 may come under consideration in the Illinois House

7 public hearings were held between July, 2013 and February, 2014

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Map of Coalition Members

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List of Coalition Members

• Advance Illinois • Affinity Community Services • Business and Professional People for the Public Interest • Bronzeville Community Action Council • Chicago Urban League • Faith Coalition for the Common Good (Springfield) • Illinois Business Roundtable • Illinois Federation for Community Schools • Illinois Network of Charter Schools • Instituto del Progreso Latino • John Rico, CEO of Rico Enterprises, Inc. • Lake County Community Foundation • League of United Latin American Citizens-Illinois • Metropolitan Family Services • Mid-Illinois Network of District Schools • North Chicago Chamber of Commerce • Ounce of Prevention • Quad County Urban League (DuPage, Kane, Kendall,

and Will Counties) • Rainbow Push Coalition • Stand for Children • Tri-County Urban League (Peoria, Tazewell, Woodford

and McLean Counties) • Urban Education Institute • UMMA Center (Waukegan) Superintendents: • John Ahlgrim, Zion Elementary School District 6 • Chad Allison, Illinois Valley Central Unit School District

321 • Bart Arthur, Galesburg Community Unit School District

205 • Donaldo Batiste, Waukegan Community Unit School

District 60 • Larry Beattie, Sparta Community Unit School District

140 • Ray Bergles, Silvis School District 34 • Victor Buehler, Bunker Hill Community Unit School

District 8 • Denise Bence, Shelbyville Community Unit School

District 4 • Constance Collins, Round Lake Community Unit School

District 116 • Art Culver, East St. Louis School District 189 • Doug Daugherty, Lawrence County Community Unit

District 20 • Brad Detering, Salem Community High School District

600 • Scott Doerr, Nokomis Community Unit School District 22 • Stanley Fields, Berwyn South School District 100 • Scott Fisher, County of Winnebago School District 320 • Edward Fletcher, Monmouth-Roseville Community Unit

School District 238 • Jeffrey Fritchtnitch, Altamont Community Unit School

District 10 • Gregg Fuerstenau, Taylorville Community Unit School

District 3 • Jennifer Garrison, Sandoval Community Unit School

District 501 • Mike Gauch, Harrisburg Community School District 3 • Jennifer Gill, Springfield School District 186 • Jay Goble, Benton Community Consolidated School

District 47 • Scott Goselin, Bradley School District 61 • Ron Graham, South Fork School District 14 • Robert Green, Collinsville Community Unit School

District 10 • Jim Greenwald, Granite City Community Unit School

District 9 • Christopher Grode, Murphysboro Community Unit

School District 186 • Aaron Hopper, Panhandle Community Unit School

District 2 • Kristin Humphries, East Moline School District 37 • Ehren Jarrett, Rockford Community Unit School District

205 • Damian Jones, Argenta-Oreana Community Unit School

District 1 • Michael Juenger, Dixon Unit School District 170 • Michael Kelly, Carlinville Community School District 1 • Chuck Lane, Centralia High School District 200 • David Lett, Pana School District 8 • Jim Littleford, Charleston Community Unit School

District 1 • Dan Marenda, La Salle Elementary School District 122 • Craig Mathers, West Carroll Community Unit School

District 314 • Ben Martindale, North Chicago School District 187 • Patrick McDermott, Freeport School District 145 • Jeff Mitchell, Wayne City Community Unit District 100 • James Mitchem, Valley View School District 365U • Julie Morris, Harlem Unit District 122 • John Mullett, Litchfield Community School District 12 • Joe Novsek, Carlyle Community School District 1 • Donald Owen, Urbana School District 116 • Mathew Plater, Havana Community Unit School District

126 • David Powell, Hillsboro Community School District 3 • Todd Prusator, Rochelle Consolidated Community

School District 231 • Steve Ptacek, Jacksonville School District 117 • Jayne Purcell, Dolton School District 148 • David Rogers, Prophetstown-Lyndon-Tampico

Community Unit School District 3 • Kristen School, Mendota Consolidated Community

School District 289 • Dee Scott, Casey-Westfield Community Unit School

District 4C • Brad Skertich, Southwestern Community School District

9 • Charles Stegall, Bethalto Community Unit School District

8 • Jeffrey Strieker, Bond County Community Unit School

District 2 • Lisa Taylor, Decatur School District 61 • David Thieman, Steger School District 194 • Joe Tieman, Gillespie Community Unit School District 7 • Brad Turner, Mulberry Grove Community Unit School

District 1 • Brad Tuttle, Sullivan Community Unit School District 300 • Rich Well, Vandalia Community School District 203 • Leslie Varble, Century School District 100

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• The Illinois School Funding Reform Act of 2014 (SB 16) drives state resources where they are needed to better support all Illinois students to achieve. This levels the playing field in a state with one of the largest equity gaps in the nation.

• Funding IL’s Future is a coalition of organizations and individuals committed to improving how Illinois supports its students and schools.

– Over 25 Local and Statewide Community-Based Organizations

– Over 50 School District Superintendents

• Get involved!

• Join the funding coalition to support school funding reform. To learn more, visit www.fundingilfuture.org.

Funding IL’s Future Coalition

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Lend your organization’s name to coalition publications and statements

Inform, engage and urge your elected officials to support the funding reform legislation

Publicize your involvement within our networks and communities

Participate in monthly calls

Recruit additional members

Funding IL’s Future Coalition Asks

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Questions?

Contact Information

Advance Illinois

Advanceillinois.org