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* My weekly syndicated newspaper column…
An oft-repeated $1.1 billion demand from Chicago’s mayor would actually wind up costing state taxpayers $5.5 billion. And Gov. JB Pritzker is turning a big thumbs down.
Chicago Public Schools made the huge mistake of putting a ton of temporary federal pandemic aid into its permanent spending base for years and that money is just about gone. It also recently over-estimated some state tax revenues. Mayor Brandon Johnson also dumped $170 million in pension costs onto the district from his own budget, and the Chicago Teachers Union is asking for the moon in its contract negotiations. The end result is deficits as far as the eye can see.
Johnson has suggested CPS borrow money in the interim, but he has said over and over again that the state “owes” CPS $1.1 billion and he wants the state to pony up.
But does the state really owe CPS that much money? “No” is the simple answer.
First, a quick primer. The state’s Evidence-Based Funding law was passed in 2017 after years of work. The idea of EBF was to move to a system based on “adequate” state and local funding levels. A lot of factors determine adequacy, like regional salaries, how much districts spend, how much they have the capacity to spend, the types of district students (with an emphasis on low income, English learners, special education), and more.
The legislation was designed to help districts eventually reach 90 percent of adequate funding. This fiscal year, the state will spend $8.6 billion on evidence-based funding. Negotiators realized from the beginning that the state didn’t have enough money to fund every school at 90 percent adequacy right away, so it’s been spending $350 million more each year (except Fiscal Year 21) in order to reach the eventual target where all districts have 90 percent adequacy. $50 million of that goes to property tax relief grants.
According to the Illinois State Board of Education, if the state had decided last fiscal year to just all of a sudden abandon the funding “ramp” and immediately reach 90 percent adequacy, the total state cost would’ve been $2.5 billion.
Of that $2.5 billion, the ISBE says, Chicago would’ve received $503 million, less than half the $1.1 billion that Mayor Johnson claims the state owes.
So, where does the $1.1 billion number come from? According to the state board, that amount would’ve been owed to Chicago last fiscal year if the state immediately funded schools at 100 percent of their adequacy levels. However, the board points out that 100 percent funding is not in state law, despite what the mayor is saying.
Johnson has always said that all Illinois schools should get what’s coming to them right away, not just Chicago. But EBF funding for all public schools at 100 percent last fiscal year would’ve cost taxpayers a whopping $4.85 billion, according to the State Board of Education.
But wait, there’s more. Mayor Johnson’s spokesperson released a statement to me saying in part: “(T)he State of Illinois provides all other school districts with nearly $3,000 more per student by fully paying their teacher pensions,” and went on to say they would work with the state to make that happen.
That’s about $969 million. Take out what the state already gives CPS for teacher pensions and you wind up with a tab of $615 million.
Add now you’re at $5.47 billion.
The mayor hasn’t mentioned that state law gives Chicago a special pension carveout. The Chicago school district’s ability to pay (known as the “local capacity target”) portion of the formula is reduced by whatever CPS spends on teacher pensions. This reduces the city’s amount that it has to pay for its own schools. Last fiscal year, CPS was given a nearly $700 million reduction in its local capacity target.
Gov. Pritzker told me this past Friday that, despite all the public rhetoric, Mayor Johnson has never once personally asked him to help fund that $1.1 billion.
I told Pritzker that I assumed other school districts also put temporary federal money into their permanent spending bases and would also be demanding more state aide. “I don’t think that that’s the job of Springfield, to rescue the school districts that might have been irresponsible with the one-time money they received.”
“Poor fiscal management on the part of a local government is not necessarily the responsibility of Springfield,” he added.
Is CPS poorly fiscally managed? Pritzker at first hedged, then, when pressed, said he’d like to answer the question his own way.
“One-time money shouldn’t be spent for ongoing operations.”
posted by Rich Miller
Monday, Jul 22, 24 @ 7:48 am
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Smart move by Pritzker. So now Mayor Photo Op has to either raise taxes or cut CPS.
Comment by Pawar Lost Monday, Jul 22, 24 @ 7:52 am
The Mayor not working with others and issuing random statements continues. He should’ve known this in February and started working on it then but that would’ve been too obvious.
Comment by Frida’s boss Monday, Jul 22, 24 @ 7:59 am
No wonder he jumped on the Harris bandwagon immediately. That just shows how incompetent Johnson is. He did that out of spite now moving forward he can see first hand how that’s going to work out.
Comment by Long Time Independent Monday, Jul 22, 24 @ 8:53 am
Does Brandon know how to do anything except ask for state money?
Comment by Alton Sinkhole Monday, Jul 22, 24 @ 8:54 am
In what world does Mayor Johnson believe it is a good idea to say that the state isn’t doing it’s job in funding CPS and then demanding that the state pony up some money? He’s winning absolutely no friends at the state level by saying they are “owed” money. He’s been told to go pound sand and rightfully so.
Comment by Demoralized Monday, Jul 22, 24 @ 8:54 am
=“(T)he State of Illinois provides all other school districts with nearly $3,000 more per student by fully paying their teacher pensions,” and went on to say they would work with the state to make that happen.=
Wait. What?
I seem to remember the state trying to integrate CTPF into the state pension system for years and CTPF/CPS refusing.
Am I misremembering?
Comment by TinyDancer(FKASue) Monday, Jul 22, 24 @ 9:07 am
I wonder how “Should the state give the Bears and White Sox 5.5 billion dollars for new stadiums or give it to CPS to cover a shortfall that will likely then be around next year” would poll.
Comment by OneMan Monday, Jul 22, 24 @ 9:12 am
==He’s winning absolutely no friends at the state level by saying they are “owed” money. He’s been told to go pound sand and rightfully so.==.
Your entire statement is spot on. Johnson’s constant “The state owes us $1B” is not winning him any friends in Springfield. He is coming off like an entitled teenager. The incompetence is incredible.
I really thought he’d be better at this given his background but instead he is making Lightfoot look like a statesman.
Comment by low level Monday, Jul 22, 24 @ 9:22 am
@Oneman - love to see that poll.
Comment by Frida's boss Monday, Jul 22, 24 @ 9:42 am
====@Oneman - love to see that poll.====
The predictable response would be “no” and “no”.
Comment by Six Degrees of Separation Monday, Jul 22, 24 @ 10:13 am