Illinois funding law levels the playing field for students
Signed by the governor last week, the legislation changes the funding formula for each district, but also includes a controversial $75 million scholarship tax credit program for private school tuition.
Surrounded by students and elected officials, Illinois Gov. Bruce Rauner signs education funding reform bill SB 1947 at Ebinger Elementary School in Chicago on Aug. 31.
Ashlee Rezin/Sun Times/AP
The wish list of Chicago Ridge School District superintendent Kevin Russell includes the types of things other administrators likely desire for their schools as well: smaller class sizes,聽daily gym聽classes, more art and music for the elementary students.
Dr. Russell has reason to revisit his list now, thanks to a law signed by Illinois Gov. Bruce Rauner last week 鈥 a measure that will significantly change the way the state funds its schools starting in 2018. The current system, which relies primarily on local property taxes, will be replaced by a new formula that takes into account each district鈥檚 individual needs and local funding sources when distributing state aid, prioritizing high-poverty districts that need the most financial assistance.聽
It鈥檚 a big step for a state that has lagged far behind the rest of the country in equitable funding, observers say, particularly as the change has come as the result of聽political聽compromise in the state鈥檚 legislative and executive branches after years of contentious debate. The final passage of the bill allows educators to start cautiously thinking about how they will help their students.
鈥淲e had such an inequitable funding system in districts like mine that are very heavily reliant on the state,鈥 says Russell, whose district, southwest of Chicago, has 71聽percent聽low-income students. 鈥淭his really is a lifesaver for us and should give our kids the opportunities that a lot of other districts take for granted.鈥
Along with a new evidence-based model聽鈥 which involves a formula that prioritizes high-poverty districts without reducing state funding for other districts 鈥 the legislation includes a new $75 million scholarship tax credit program for private school tuition and a provision allowing districts the option to vote to lower their property taxes.聽
The reforms, particularly the new formula, are 鈥渁n exceptionally big deal in Illinois,鈥 says聽Christine Kiracofe, professor of educational administration at Northern Illinois University in DeKalb.聽鈥滻 think it has the potential ... to really drastically change the landscape of school funding in the state.鈥澛
Hurdles to catching up
Concerns about inequity in school funding aren鈥檛 new, or unique to Illinois. The 1960s through the 鈥90s saw a wave of states assume greater responsibility for school funding, largely in response to court challenges, says David Arsen, professor of education policy at Michigan State University.聽
Since then, he says, the trend has 鈥渟lowed dramatically.鈥 In recent years, there鈥檚 been 鈥渁 very checkered, unequal progression on school funding equity across the states,鈥 with reforms occurring 鈥渋n a kind of sputtering fashion.鈥澛
While some other states have been able to enact change through judicial action, however, Illinois has not. Lawsuits have failed, with courts ruling that there is no case to be made on the basis of the Illinois constitution 鈥 leaving the fate of school funding in the hands of politically divided legislative bodies.聽
鈥淚t鈥檚 harder in Illinois than in many states because ... it鈥檚 been something that鈥檚 had to organically come from the聽political聽leadership,鈥 says聽Lawrence Picus,聽professor of school finance and education policy at the University of Southern California鈥檚 Rossier School of Education. 鈥淭here鈥檚 not a hammer saying 鈥榶ou have to do this鈥 coming from the courts.鈥
Addressing a long-standing issue
A 2015聽聽by The Education Trust found that Illinois had 鈥渂y far鈥 the largest gap in funding between poor and wealthy schools in the nation, with the report stating that 鈥渢he legislature does not distribute state funds progressively enough to counteract disparities in local dollars.鈥澛
These disparities are due in large part to Illinois鈥檚 heavy reliance on local property taxes to fund public schools, a system that has resulted in many poorer districts spending little more than the state鈥檚 longtime 鈥渇oundation level鈥 of $6,119 per student, while some wealthier districts spend as much as $30,000. Local property taxes accounted for about 聽of K-12 funding in Illinois in 2015, with the share provided by the state sitting at about 25 percent. Nationally, local sources account for聽聽of revenue for elementary and secondary schools, with an average of 46 percent coming from the state, according to 2013-14 data. 聽
A compromise, but聽still聽some dissent
After years of debate, negotiations, and setbacks 鈥 including a veto of the original legislation by Governor Rauner, who characterized the bill as a bailout of Chicago Public Schools (CPS) 鈥 lawmakers were able to reach a compromise appealing to lawmakers on both sides of the aisle.聽
Not everyone embraced the deal. Some Democrats who voted against the package did so in opposition to the tax credit program, while their Republican 鈥渘o鈥-voting counterparts cited the cost of the bill and additional money directed at CPS.聽
The $75 million tax credit provision in the law 鈥撀犅爎ecently by United States Secretary of Education Betsy DeVos for its potential to 鈥渉elp thousands of Illinois children succeed鈥 鈥 聽was strongly opposed by teachers unions in the state, who argued that the program would take tax dollars away from public schools.聽
鈥淲e鈥檙e on a better path toward equity and adequacy, and we must move forward in our classrooms and communities,鈥 said聽Illinois Federation of Teachers President聽Daniel Montgomery in a聽聽However, he wrote, those gains had come 鈥渁t a very disappointing cost.鈥澛
Still, the passage and signing of the measure聽reflects聽a shared determination worth recognizing, Professor Picus says.
鈥淎nytime you get large-enough majorities to reach agreement on matters of this sort in the legislature, it鈥檚 a pretty amazing thing,鈥 he says. 鈥淚t suggests a great deal of political will and how important it is to adequately fund schools for the children of Illinois.鈥澛
Cautious optimism
The reforms have been applauded by some of the state鈥檚 administrators in majority low-income districts, including Superintendent Ehren Jarrett of Rockford Public Schools. With of Rockford students coming from low-income families, Rockford spent $12,141 on operational costs聽and $7,145 in instructional costs per student in 2015.聽
SB 1947 鈥淸has] the聽potential to significantly impact all students,鈥 said Dr. Jarrett in a statement to the Monitor. 鈥淚llinois is now moving toward a commitment to both adequacy and equity for students in Rockford and the rest of the state.鈥澛
Russell, the聽Chicago Ridge School District聽superintendent, says he and his colleagues were 鈥渆xcited鈥 to hear that the reforms had passed. CRSD spent 聽and $6,681 on instructional spending per pupil in 2015, falling below the state averages of $12,821 and $7,712, respectively.聽
Under the evidence-based funding model, CRSD hopes to tackle its wish list 鈥 reduce class sizes and expand its offerings in subjects such as art, music, and physical education, Russell says. As things stand now, the district can鈥檛 afford full-time art and music at the elementary聽level,聽and is unable to offer daily physical education classes. Russell is optimistic that the new funding system could change that.聽
鈥淥f course,鈥 he adds, 鈥渨e鈥檙e cautiously optimistic until we see all the final details.鈥澛