Illinois Education Officials Seek $10.9 Billion for Schools Despite Property Tax Concerns
State Board of Education Presents Budget Request Amid Fiscal Challenges
State education officials presented their case this week for a $10.9 billion budget to fund preK-12 public schools for the upcoming fiscal year, arguing that the Evidence-Based Funding formula in place for nearly a decade is now delivering results.
"Graduation rates are at a 15-year high," Steven Isoye, chair of the Illinois State Board of Education, told a House budget committee Tuesday. "Achievement gaps are narrowing. Student growth exceeds pre-pandemic levels and Illinois eighth graders now outperform national averages in reading and math."
Funding for public schools represents one of the largest single categories in the state budget, accounting for nearly one-fifth of all state general revenue fund spending.
Net Increase Despite Apparent Reduction
State Superintendent of Education Tony Sanders explained that the ISBE request for FY 2027, at $10.9 billion, appears as a reduction of $278.5 million from this year. However, this apparent decrease is primarily due to the transfer of early childhood block grants to the new Department of Early Childhood. After accounting for that shift, Sanders said the request represents a net $469.7 million increase for other areas of preK-12 education.
"We are very conscious of the state's tight fiscal environment, and so we prioritized the most crucial funding streams and those investments that will have the most direct impact on student success," Sanders said.
The Evidence-Based Funding System
The upcoming fiscal year, which begins July 1, will mark the 10th year of funding under the Evidence-Based Funding formula that lawmakers approved in 2017. That formula is designed to shift a greater share of the cost of funding public schools onto the state, and away from local property taxes.
The plan called for adding at least $300 million in new state funding to public schools each year, plus an additional $50 million in property tax relief grants for certain high-tax districts.
The system also established an adequacy target for each school district an estimate of how much it should cost to operate the district based on cost-related factors like student enrollment, poverty rates and the percentage of English language learners in the district. The bulk of new funding goes to districts with the greatest financial need.
Since enactment of that law, general revenue fund spending for public schools has grown from $8.2 billion in Fiscal Year 2018 to nearly $11.2 billion this year.
Isoye noted that out of 851 school districts in the state, the number funded at or above 90% of their adequacy target has grown from 194 to 313.
Full Request Includes Property Tax Relief Grants
ISBE's request includes the full $350 million for Evidence-Based Funding and property tax relief grants as well as increases in transportation and other mandated categories of spending that are not covered by the EBF formula.
That request exceeds Governor JB Pritzker's proposed budget, which for the second straight year did not include funding for the property tax relief grants. Speaking to reporters at a news conference in March, Pritzker said he was committed to addressing inequities in property tax rates but did not believe the relief grants called for in the EBF law were addressing the issue.
"We've got to figure, how do we do that better, and I don't think we have the answer quite yet," Pritzker said. "But it didn't seem appropriate for us to just throw the money into the program without having a better potential outcome."
Republicans Question Property Tax Results
Republicans on the appropriations panel questioned why increased spending under the EBF system has not resulted in lower property taxes throughout the state.
"I'm just wondering, if they're 90% adequate, and we've got probably 25% of the schools in the state of Illinois that are at full financial adequacy, why aren't we seeing property taxes come down?" asked Rep. Blaine Wilhour, R-Beecher City.
Sanders replied that the system still does not have all school districts at 90% or greater adequacy, and many districts remain far from full financial adequacy. He also pointed to mandated spending categories like transportation, for which the state only pays a prorated portion of the total cost.
"So as costs increase for fuel, bus driver salaries, special education salaries — when the state's share is not made up, then it has to go someplace," Sanders said. "You don't pick that up through your Evidence-Based Funding formula, so you turn to your local property taxpayers."
Next Steps
The committee took no action on the budget request. The panel's ultimate recommendation for preK-12 school funding will be included in the final budget bill that lawmakers will vote on at the end of the legislative session, which is scheduled to conclude May 31.