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FUNDING QUALITY EDUCATION
Download this factsheet (PDF).
A Piece of Illinois’ School Reform Puzzle
Bring the bottom up
Currently, the state only guarantees that schools spend $4,560 per student
per year. That is only $25 per student per school day to fund
teachers, principals, counselors, textbooks, lab equipment, sports and
other expenses. Research by Augenblick and Myers, a leading national
consulting firm, shows that high quality public schools in the state spend far more. In fact,
Illinois schools with at least two-thirds of students performing at grade level in standardized tests
spend $5,500 or more per pupil on basic education costs. The state’s cost to increase this foundation
level can be phased in over time, if adjusted for inflation. But, we need to start now.
Cost: $1.4 billion.
Ensure a reliable, predictable state funding stream
This year’s state education budget was cut by $176 million—an unprecedented setback that puts
the squeeze on school districts already dealing with budget deficits and tax caps. Plus, much of
the new money to schools in recent years has not filtered down to the classroom, instead funding
pensions, school busing and special programs. From 1999 to 2001, only $82 million of $721
million new state dollars was devoted to basic classroom education. Illinois ranks 48th out of
the 50 states in its share of K–12 school funding, providing only 38 percent of the total.
Target resources to students in poverty
More than 400,000 students in poverty are not making the grade. We cannot afford to ignore
the choking cycle of poverty in which at-risk students who need the most attention in early years
receive the lowest quality education. The state is still using a formula based on 1990 poverty
counts. We need to update those numbers with an annual count, as well as increase resources
to hire more and better-prepared teachers to reach at-risk students. An overall increase of $403
million can be phased in over five years, starting with a down payment in 2003.
Cost: $28 million.
Reduce the reliance on the local property tax
Our schools receive most of their money from the local property tax. Unfortunately, many communities
do not have the property wealth to adequately fund their schools. The state is supposed
to make up for this funding gap, but does not meet its responsibility. With the state share
of education funding actually shrinking, and tax caps in many areas, schools are getting
squeezed. Meanwhile, high property taxes are making housing less affordable, particularly for
elderly households and young families. And, the high reliance on the local property tax pits
one community against another in the race for revenue for their schools. All this points to the
need to reduce property tax reliance in Illinois. Past education reform commissions have recommended
that the property taxes spent on schools be reduced 25 percent and replaced by
new state dollars.
Cost of 25 percent property tax relief: $2.1 billion.
Make sure our school buildings are safe
Illinois has a backlog of school facilities needs, including urgent ones related to health and safety
that may compromise student welfare and ability to learn. The state’s school construction
program ($500 million in 2003) must be extended, and annual school capital plan must be
developed. Districts must be assured they can depend on the resources needed to complete
critical building projects.
Cost: $35 million debt service.
For other school funding ideas, see the Education Funding Advisory Board preliminary report "Recommendations for Systemic Reform of Funding for Elementary and Secondary Education in Illinois".
September 5, 2002.
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