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The school funding problem you may not have known about

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Illinois

* From a reader…

Good Morning.

I read the blog often to help keep up to date on various downstate activities and enjoy the knowledge and difference of opinions everyone brings and shares.

When it comes to the budget, I am not sure if anyone has shared that while a K-12 budget may have been passed, the bigger picture of an overall budget still affects districts. The gaping revenue whole that has produced the backlog is still taking a toll on a district like mine.

As of now, we are in the 6th month of the budget year and the State still owes us over $600k from last fiscal year. As you may or may not know, School Districts get categorical money from ISBE and the State as well as the General State Aid (GSA) that is talked so much about. We get the GSA monthly, and are happy for that, but we get those categorical payments four times a year. As it stands, we are still owed that final payment from last year and have not of course seen the first payment this year.

This still puts hardships on districts and do not think that this is mentioned enough as I know that there are other districts that serve a low socioeconomically diverse population like we do. I just think that it should be noted that passing that budget did not necessarily save districts, it just saved them from shutting our doors at the beginning of the year.

Students still suffer when cash flow is this bad and we need to make decisions on what we purchase and when because our state is not only dead last in the country with education funding, but is this far behind with what they do pay.

Patrick Palbicke
Director of Business/CSBO
Beach Park District #3

posted by Rich Miller
Monday, Dec 5, 16 @ 10:38 am

Comments

Defund, make sure things don’t work, people get angry, you hand it over to private capital.

Lather, rinse, repeat.

Comment by thunderspirit Monday, Dec 5, 16 @ 10:41 am
Not all school districts are treated equally in Illinois, as far as I can tell CPS has gotten a much higher percentage of its categorical funding than Beach Park has. But possibly the envisioned solution to all of this is not the evidence based model that has been under discussion by a commission sponsored by our Governor. Rather it could be the solutions suggested by future Education Sec DeVos including vouchers for not just the poor, but for the middle class too.

Comment by Rod Monday, Dec 5, 16 @ 10:48 am
“As of know”? Yikes.

Comment by Indochine Monday, Dec 5, 16 @ 11:05 am
So the state is half a year or more in arrears on school payments and Bruce thinks the most pressing need in this state is that rich guys like him have their property taxes frozen.

Comment by hisgirlfriday Monday, Dec 5, 16 @ 11:08 am
Thank you for sharing this information. I agree that many people are not aware of this problem. Besides GSA pro-rating, this problem has also been going on for years. Our local school district “borrows” from the following year property taxes to overcome the same issue… You can imagine that is a tough cycle to escape. As long as sports and academics are excelling, many of our local residents are unaware of the funding issues. Meanwhile, the cuts in education and future opportunities continue to grow.

Comment by Fairness and Fairness Only Monday, Dec 5, 16 @ 11:18 am
How could this be?
BigBrain touts full year funding at every stop. He pushes the tax freeze and has SuperStar SECRETARY PURVIS hard at work on more “reforms”
This must be untrue

Comment by Annonin' Monday, Dec 5, 16 @ 11:25 am
Didn’t Rauner promise he’d increase K-12 funding??

Comment by Anon Monday, Dec 5, 16 @ 11:37 am
–When it comes to the budget, I am not sure if anyone has shared that while a K-12 budget may have been passed, the bigger picture of an overall budget still affects districts. The gaping revenue whole that has produced the backlog is still taking a toll on a district like mine.–

Fortunately, as many thoughtful commenters here assure us, there are no such things as “facts,” only “perceptions,” which are “reality.”

That “fully funded K-12 budget” sure looks sweet on a press release, doesn’t it? And the great majority of Illinois press will never question it.

–Students still suffer when cash flow is this bad and we need to make decisions on what we purchase and when because our state is not only dead last in the country with education funding, but is this far behind with what they do pay.–

No worries. A property tax freeze will fix that problem lickety-split.

Comment by wordslinger Monday, Dec 5, 16 @ 11:53 am
Voters in my local grammar school district recently approved a $47 million bond issue for a new building. That will add over $900/year to the property taxes for most homes. Retirees are upset, but the vote was 2 to 1 in favor.
Something needs to change.

Comment by Cook County Commoner Monday, Dec 5, 16 @ 11:53 am
The amount of overdue categorical payments owed to Elgin District U-46 is over $24 million. That is a significant portion of their budget.

Comment by Dance Band on the Titanic Monday, Dec 5, 16 @ 11:55 am
I have been commenting on this for as long as I can remember.

Regular and Vocational Transportation is the single biggest MCAT for us.

Last year the state told us we would get 46% of what were entitled to (via the transportation funding formula) but we only received 3 FY 16 payments so 75% of the 46% they said we would get.

Five years ago we received $500,000 in transportation funding from the state.

The state said that we would get $225,000 this year.

Again, we have received 0 and are owed from last year.

This year we have received no MCAT funding at all. That would go for all schools outside of CPS.

I have no idea whether or not CPS is getting MCAT money, but I do believe they get a flat % off of the top off all transportation and special ed money (versus working the formula like the rest of us).

When I mention this to legislators they are surprised as they seem to think we are fully funded as the empty narrative would have one believe.

Comment by JS Mill Monday, Dec 5, 16 @ 12:02 pm
=Retirees are upset, but the vote was 2 to 1 in favor.
Something needs to change.=

Because the outcome was not to your liking?
Maybe that is what needs to change.

Comment by JS Mill Monday, Dec 5, 16 @ 12:04 pm
To acheive “full funding” the state eliminated a special ed categorical funding item freeing $300 million dollars (made up by school districts from their GSA funding- Catch 22, you get more GSA but you have to use it to cover our shortfall= no real change). That meant only about $50 million in “new” funding wa required, essentially a rounding error in a 30 plus billion budget.

Given MCAT’s are not being paid, the net effect is less money than FY 2016 (and they still owe from that year).

Comment by JS Mill Monday, Dec 5, 16 @ 12:16 pm
=== “As of know”? Yikes.===

“The gaping revenue whole” Yikes x2

Comment by Shemp Monday, Dec 5, 16 @ 12:28 pm
Yes, it is a disaster for K-12.

But compared to the public universities they have it made in the shade,

Comment by Federalist Monday, Dec 5, 16 @ 12:35 pm
“… our state is not only dead last in the country with education funding …”

Illinois is last in education funding, and has been for many years, only if you fail to include taxpayer funding by way of the federal government and local taxpayers.

If you add together funding from all sources, state, federal, and local, together you find the Illinois funds education more than the majority of states. The latest data from the US Census Bureau, for 2014, shows that of the 50 states, plus DC, Illinois is the 14th highest in education spending on a per student basis. This puts Illinois not at the bottom in education spending but in the upper third in education spending on a per student basis.

Comment by Hit or Miss Monday, Dec 5, 16 @ 12:35 pm
=But compared to the public universities they have it made in the shade,=

Being defunded slowly (which has been happening for a looong time) versus defunded quickly.

Yes, made in the shade. Also good for the economy as thousands have lost their job or gone un hired.

You are brilliant./s

Comment by JS Mill Monday, Dec 5, 16 @ 12:40 pm
Appears Rauner is giving himself a “Complete” for school funding…

IMPROVING EDUCATION

Check- Provided record funding for elementary and secondary schools statewide.

Check- Ended the unfair practice of proration, ensuring every school receives the same funding or more as the previous year.

Check- Created a bipartisan commission to revamp Illinois’ school funding formula.

http://www.brucerauner.com/accomplishments/

Comment by Anon221 Monday, Dec 5, 16 @ 1:08 pm
@JS Mill

ISBE proposed that, but it never became law.

Comment by TCB Monday, Dec 5, 16 @ 1:49 pm
Now now, they should all know that the only priority for this state in 2016 was to bailout Exelon…Patrick read the blog, he knew that. Nothing else matters. I mean, everything is working, senators being paid, payments barely getting out for what the judges deem necessary…all is well here. Who needs a budget?

And as long as Rauner is Governor is Madigan is alive and in power, nothing changes.

Comment by MrGrumply Monday, Dec 5, 16 @ 1:57 pm
=ISBE proposed that, but it never became law.=

What are you referencing? The $300 million? It did not have to be “law” and they actually did it.

Comment by JS Mill Monday, Dec 5, 16 @ 2:15 pm
=Rather it could be the solutions suggested by future Education Sec DeVos including vouchers for not just the poor, but for the middle class too.=

Thoroughly debunked. Vouchers are a tax break/subsidy for the wealthy.

Comment by JS Mill Monday, Dec 5, 16 @ 2:41 pm
Priorities, priorities! Everyone seems to want “good schools” but also seem to not comprehend what it costs just to function. So many who think personnel could take a haircut have no clue about the vast variety of services those personnel not only provide but are required by our various laws to provide. If you thinking classroom teacher, you must be a dinosaur. In many districts they make up one of the smaller percentages of staff. Don’t understand? Go volunteer in a school and see what schools are doing these days.

Comment by Anonymous Monday, Dec 5, 16 @ 2:44 pm
–Last year the state told us we would get 46% of what were entitled to (via the transportation funding formula) but we only received 3 FY 16 payments so 75% of the 46% they said we would get.–

So 75% plus 46% equals 121% in Raunermath — that’s more than “full funding!”

=Rather it could be the solutions suggested by future Education Sec DeVos including vouchers for not just the poor, but for the middle class too.=

Federales are going to pony up for ed vouchers?
Is that before or after the trillion dollar infrastructure bill, the wall, the tax cuts and increased spending for the military — all while hands-off S.S. and Medicare, as promised by Trump?

And vouchers for what? So the kids in Waukegan can go to New Trier? The kids in Austin can go to OPRF? The kids in Lyons can go to Hinsdale Central? Good luck selling that.

Plus, the state contribute’s oogats already to the wealthier suburban districts. Its vouchers wouldn’t come close to paying the freight for an out-of-district student.

Comment by wordslinger Monday, Dec 5, 16 @ 3:13 pm
@JS Mill

Yes, I am referring to the $300mm the ISBE proposed cutting in an effort to move into GSA. Again, I state, ISBE proposed exactly what you are saying. The Governor & Legislature apparently did not agree because the bill they passed included that $300mm. As such, ISBE is required to distribute those funds as they have in past years.

Comment by TCB Monday, Dec 5, 16 @ 3:15 pm
==If you add together funding from all sources, state, federal, and local, together you find the Illinois funds education more than the majority of states.==

Bingo. I’ve seen those numbers as well. I thought IL ranked in the top quartile, but 14th out of 50 works too.

And when you take into account what states with high GDP’s (a metric many folks on this blog quote often) like Illinois spend on education, you see IL spends more per pupil than than Texas, California, and Florida. Only NY spends more. So the money’s there. Where does it go?

Comment by City Zen Monday, Dec 5, 16 @ 3:20 pm
=As such, ISBE is required to distribute those funds as they have in past years.=

My accounts receivable and FRIS says differently.

As a matter of fact- our local ROE repeated the very same thing last week.

That $300 million was moved to GSA. We are expected to make up the short fall. That is actually required based on legislation.

Not sure what you do, but the application of the funds says you are wrong.

Comment by JS Mill Monday, Dec 5, 16 @ 3:32 pm
==The kids in Austin can go to OPRF?==

Why not Fenwick? CPS spend over $12-13K per student. Fenwick costs $14,700. How much is that voucher again?

But you bring up a good point. What if everyone wanted to go to OPRF? Who gets first admission rights? Residents within the traditional school district? Do some Oak Park kids gets shipped to Morton East because there’s no room?

Comment by City Zen Monday, Dec 5, 16 @ 3:35 pm
==The kids in Austin can go to OPRF?==

Why not Fenwick?–

Unless they can bust your ankles with a crossover, dunk or run a 4.4 forty, good luck with Fenwick, too.

Parochial schools are already well-versed in selective enrollment.

Comment by wordslinger Monday, Dec 5, 16 @ 3:55 pm
In the 2016, ISBE report card for CPS the instructional spending per student was listed as $10,396 see http://webprod.isbe.net/ereportcard/publicsite/getReport.aspx?year=2016&code=150162990_e.pdf Operating expenditure per student includes debt, etc.

Comment by Rod Monday, Dec 5, 16 @ 4:21 pm
==If you add together funding from all sources, state, federal, and local, together you find the Illinois funds education more than the majority of states.==

The goal is not to argue symantics, the reference is that what the State itself contributes is dead last in the country forcing pressure on taxpayors, thus contributing to the calls for the tax freezes. There is more going on then just throwing that out there.

Comment by Happenstance Monday, Dec 5, 16 @ 5:19 pm