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CPS gets larger share of state dollars but still $1.6B short of adequacy

Tuesday, Aug 5, 2025 - Posted by Isabel Miller

* Click here and here for some background. The Illinois State Board of Education on Friday

​The Illinois State Board of Education (ISBE) today released annual allocations for Evidence-Based Funding (EBF) for Fiscal Year 2026, reflecting continued and historic commitment to equitable school funding. Under Governor JB Pritzker, the state has increased EBF by $2.1 billion, bringing the total annual investment to $8.9 billion.

The General Assembly appropriated an additional $307 million for EBF in FY 2026. Of that amount, $5.2 million is specifically earmarked to support new alternative schools that serve students with specialized needs. The remaining $301.8 million is designated for distribution through EBF tiers, with 99% of the new funds going to the state’s highest-need districts. […]

Nine years of investments in EBF have raised the funding floor, accomplishing the main goal of EBF, which is to focus increases in state funding toward districts with the greatest need. The number of fully funded districts, those at or above 90% adequacy, has grown from 194 in FY 2018 to 313 in FY 2026. The formula considers enrollment, student demographics, local funding capacity, and 34 cost factors outlined in statute to ensure funding is responsive and equitable.

Every school district will receive at least the same amount of funding as last year through the Base Minimum Funding, with the additional FY 2026 EBF Tier appropriation of $301.8 million distributed equitably based on district need. This year’s increase in EBF investment reflects a pause in funding for the Property Tax Relief Grant, which is typically allocated $50 million.

While the FY 2026 investment reinforces Illinois’ strong trajectory toward equity, this year’s data reflects a slight dip in the average Percentage of Adequacy across Illinois school districts due to changing economic conditions. A 41.3% drop in Corporate Personal Property Replacement Tax (CPPRT) revenue, combined with rising education costs, resulted in a modest decline in the average funding adequacy for districts below 90%, from 77.1% in FY 2025 to 76.6% in FY 2026. Still, that average remains nearly 10 percentage points higher than in FY 2018, when it was just 67.1%.

* Chalkbeat Chicago

Chicago Public Schools will receive an additional $76 million from the state this fiscal year for a total of $1.9 billion, according to new data released by the state on Friday.

The new figures indicate Chicago had a significant drop in local tax revenue and an increase in the number of English learners, giving it higher priority for additional state dollars. The new calculations also show that CPS is less adequately funded under the state’s formula than it was last year and will now need about $1.6 billion to reach adequate funding.

* WBEZ’s Sarah Karp

CPS is one of more than 300 under-funded districts that is getting a smaller percentage of what it needs compared to just a year ago. State law calls for all schools to be funded to at least 90% of adequacy by 2027, but the Center on Tax and Budget Accountability says that at the current rate the state is funding education, it will take until at least 2034 to reach that level.

For CPS, the percent toward adequacy dropped from 79% to 73%. Statewide, the average percent toward adequacy decreased slightly — by about half a percentage point — to 76.6%. The state points to a significant decrease in revenue from a state tax on corporations, as well as “rising education costs,” such as inflation and cost-of-living raises, for the drop in adequacy. […]

Meanwhile, CPS is grappling with a $734 million budget deficit and has not approved a budget for the coming school year. By law, a balanced budget must be presented next week so that required hearings can take place before the budget is approved at the end of August.

In terms of adequacy levels, the state has once again categorized CPS in Tier 1 — among the districts furthest from adequacy — a position the district shed just two years ago. But the upside of being in this category is that it gets more of the state’s pot of money for education. As a result, CPS will get $76 million more this year than it got last year.

* More from Chalkbeat Chicago

The state’s second largest district serving almost 34,000 students, Elgin’s U-46, dropped from Tier 1 to Tier 2 and will receive less than last year due to a decline in average student enrollment and students from low-income households. The district will receive an additional $4.8 million, almost $14 million less than it received last year in new money.

Rockford School District 205, the state’s third largest district serving about 26,418 students, is expected to receive an additional $19.7 million in state dollars — $9.5 million more than last year. The district has seen an increase in average student enrollment, English learners, and a significant decrease in local property tax revenues.

* Related…

    * WBEZ | CPS must present a plan to close its deficit within 9 days: What are the options?: Since taking over in June, interim Chicago Public Schools CEO and Supt. Macquline King has been laser-focused on coming up with a plan to close the school district’s $734 million budget deficit. King and her team now have less than two weeks to present a budget in time for legally required hearings and a vote at the Aug. 28 Board of Education meeting.

    * Chalkbeat Chicago | Chicago Public Schools cuts 480 janitor positions as it ends all private custodial contracts: The move, which comes as the district is working to close a $734 million deficit, sparked an immediate rebuke and demand for reconsideration from the two unions representing school custodians. Starting Sept. 30, CPS will oversee 2,100 full-time custodians and end seven contracts with private custodial companies. The change will mean cutting about 1,250 private custodians and ending a longstanding practice of contracting with private companies to help clean schools.

    * ABC Chicago | IL lawmakers want Chicago Public Schools fully funded, don’t feel all funding should come from state: But while many Thursday acknowledged the state legislature will need to step in, there is also a realization that none of this will happen before the 2026 budget is voted on. There was also pushback by the very legislator who’s proposed the millionaires tax. “There’s no votes outside the city of Chicago to just send the city of Chicago money without sending money to the rest of the state,” said state Rep. Curtis Tarver, assistant majority leader and a Democrat representing Chicago.

    * Chalkbeat Chicago | Illinois lawmakers offer no quick solutions for CPS during district finances hearing: “I’m hopeful that we can move past the rhetoric, the talking points and unrealistic demands, and get down to business about how we can do better by CPS and its students,” said Illinois Democrat Rep. Ann Williams, who represents neighborhoods on the North Side of Chicago and chairs the House Executive Committee. Illinois has increased funding for K-12 schools across the state by more than $2 billion under a funding formula created eight years ago, of which $1.1 billion has gone to CPS. The state set a goal to “adequately” fund all school districts by 2027, but they’re projected to miss that deadline. According to the state’s formula last year, Chicago schools need almost $1.2 billion to be considered adequately funded.

       

6 Comments »
  1. - DuPage Saint - Tuesday, Aug 5, 25 @ 8:44 am:

    How do other states fully fund their schools? I do not think this state can continue to use real estate taxes a the main source of revenue for schools and at same time claim housing needs to be affordable. How do states with low property taxes afford schools? Is it income tax, sales tax what? Why don’t we copy them if it works?


  2. - Chicagonk - Tuesday, Aug 5, 25 @ 9:01 am:

    It’s unfortunate that Pritzker just signed a bill that is going to cost the city an additional $60M annually which could be going to schools. The sweetener bill wasn’t an emergency issue and the idea that Tier 2 is somehow illegal is a convenient union talking point. In no scenario would benefits under the Tier 2 scheme be less than under Social Security.


  3. - City Zen - Tuesday, Aug 5, 25 @ 9:01 am:

    ==$1.6B short of adequacy. percent toward adequacy dropped from 79% to 73%==

    How are other school districts managing this inadequacy? Rockford SD205’s percent toward adequacy is 65% and the adequacy funding gap is $150 million. That’s pretty big for a district of that size, but someone they manage.

    If you look at the data across the state, you’ll find dozens of school districts with similar or worse funding adequacy rates as CPS. Much smaller school districts that are tens of millions of dollars short of adequacy. Not ideal, but they’re making it work without all the CPS drama. And none of those districts have nowhere near the economic capacity of Chicago.


  4. - Horace - Tuesday, Aug 5, 25 @ 9:09 am:

    Austerity seems inevitable. The Republicans just keep too many of the federal tax dollars we send them.


  5. - P. - Tuesday, Aug 5, 25 @ 9:30 am:

    Austerity is a choice in Illinois. We have D leadership across the board and no one with the gumption to make the case, raise taxes and live with it. Sorry not sorry you can only do more with less for so long or it starts to look like the CTA, CPS, the Chicago Park District and worse. Too many people in office hold onto every percentage point from their last election like they can take it to the graves with them or use it help launch themselves to the next higher office meanwhile everything goes to pot. CPS needs to max out efficiency then go to voters for a referendum to get their aging infrastructure straight, then Chicago electeds need to do whatever it takes drive support for additional funding with help from “leadership” to achieve some sort of sustainability that will keep and attract families to the City.


  6. - Merica - Tuesday, Aug 5, 25 @ 9:53 am:

    CPS budget woes have 2 root causes that have been extensively analyzed by non political reporters: (1) using Covid funds to hire 7,000 additional staff, including a disproportionate number of central office staff, and (2) empty/underutilized schools that need to be shuttered (see Pro Publica analyses) but won’t be shuttered due to political considerations.


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