Latest Post | Last 10 Posts | Archives
Previous Post: Open thread
Next Post: Hexaware: Your Globally Local IT Services Partner
Posted in:
* 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%.
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.
…Adding… The Chicago Teachers Union last week…
You can’t make this up.
The state that withholds money from our district held a hearing yesterday to find out why the district is in financial trouble.
State representative Curtis Tarver, who represents Chicago students and their families, called a hearing on CPS school finance to reiterate why he and his colleagues have no solutions or any political will to fund CPS and stabilize successful programs like sustainable community schools.Here are the facts: While our students go without librarians, art teachers, and basic supplies, Illinois’ wealthiest 5 percent are getting handed $8 billion in Trump tax cuts from his recent budget bill. Add in the $10 billion in tax breaks already baked into Gov. Pritzker’s budget for tech corporations and the ultra-rich, and you’re looking at $18 billion in giveaways to those who need it least.
That’s enough to eliminate CPS’s entire $1.2 billion funding gap 15 times over.
Reminder: It is 2025, not 2012, and we are no longer debating already failed arguments on retirement security versus smaller class sizes. Working families deserve both.
* Related…
* 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.
posted by Isabel Miller
Tuesday, Aug 5, 25 @ 8:36 am
Previous Post: Open thread
Next Post: Hexaware: Your Globally Local IT Services Partner
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
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?
Comment by DuPage Saint Tuesday, Aug 5, 25 @ 8:44 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.
Comment by Chicagonk 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.
Comment by City Zen Tuesday, Aug 5, 25 @ 9:01 am
Austerity seems inevitable. The Republicans just keep too many of the federal tax dollars we send them.
Comment by Horace Tuesday, Aug 5, 25 @ 9:09 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.
Comment by P. Tuesday, Aug 5, 25 @ 9:30 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.
Comment by Merica Tuesday, Aug 5, 25 @ 9:53 am
2009 CPS Enrollment (the year before CORE took over the CTU): 440,000+
Likely 2025 Enrollment (after 16 years of CORE): 310,000 or so
Correlation =/= causation, sure. But it does make one wonder. The schools became a political football to an exponential degree during that time.
Comment by Woodworth Tuesday, Aug 5, 25 @ 10:13 am
I wrote about this yesterday with regard to Brandon Johnson’s crying about money.
CPS is the only district in the state with the local capacity to raise whatever amount of money for their schools they desire. But people will be mad about taxes. Tough luck buttercup.
Close your empty schools, enact tighter fiscal controls, do a better job with bargaining with CTU (I kid, we know Johnson is there to do their bidding). Antoen hired with ESSER money should be let go, I mean who adds thousands of permanent employees with one time funds? I have had to do all of those things. It is hard. It comes with the territory.
=strong trajectory toward equity=
That is only for urban kids. My kids out here in rural Illinois don’t count. We are getting cut again in transportation, which none of the leaders care about and our elections are too busy worrying about trans athletes, all three of them. Our Tier money is less than $1000. Our base funding minimum has not changed but, well, inflation means we have lost about 25% of the value. At the same time the state has mandated minimum salaries.
Yeah, I feel super bad for CPS.
Comment by JS Mill Tuesday, Aug 5, 25 @ 10:14 am
MERICA =‘s on point!! CTU forces high schools built for 600 students to stay open with 103 kids. That would never happen in any other Illinois school district. This is all the controlling party in Illinois fault.
Comment by NotRich Tuesday, Aug 5, 25 @ 10:17 am
@Dupage Saint - they start by having a far smaller number of state and local government entities soaking up revenues. Illinois has by far the highest number of any state, yet you would think it would be the end of the world if we consolidated them. Some states have high sales taxes, some have more income taxes, some just scrimp on services and roads. Illinois missed our chance to rationalize our tax system when the graduated income tax didn’t pass. That reflected badly on JB and still does. We also have counterproductive taxes like the death tax, that influences corporate executives to move headquarters out of state.
Comment by Excessively Rabid Tuesday, Aug 5, 25 @ 10:21 am
I wonder how the millionaires tax would be inacted without a change in the Illinois state constitution? If it could be done without a change in the constitution wouldn’t it have already happened??
Comment by Steve Tuesday, Aug 5, 25 @ 10:52 am