The landscape of public school funding in Illinois is evolving, with both progress and challenges emerging in the state’s efforts to ensure equitable education financing. Despite a significant increase in base funding this year, new data from the Illinois State Board of Education reveals that the state is still working to bring all school districts up to adequate funding levels.
This year, the state is distributing $9.3 billion in Evidence-Based Funding (EBF) dollars, a formula designed to address funding disparities among school districts. However, the number of districts meeting or exceeding 90% of their adequacy targets has decreased, and the
Factors Influencing School Funding
Several key factors are contributing to the current funding landscape. State Superintendent of Education Tony Sanders highlighted three primary influences: rising costs, fluctuations in corporate tax revenue, and changes in the student population.
The Role of Corporate Tax Revenue
One of the most significant factors is the decline in a revenue stream known as the corporate and personal property replacement tax (CPPRT). This tax, which replaced a tax on personal property such as machinery and equipment, has seen a sharp decrease since 2026. The revenue from CPPRT is crucial in determining how much revenue a district can raise on its own, thereby affecting its adequacy target.
Rising Labor Costs
Another factor is the increase in labor costs, including higher teacher salaries and a growing number of teachers employed in Illinois schools. While Sanders noted that better teacher compensation is necessary, these increased costs are pushing districts further from their adequacy targets.
Changing Student Demographics
This year, the state began using a new method to count low-income students in each district. This change is important because students from low-income households typically require more resources, thereby increasing the cost of their education. The EBF formula takes these demographic shifts into account, adjusting each district’s adequacy target accordingly.
The Evidence-Based Funding Formula
The EBF formula, enacted in 2017, is designed to be responsive to changing circumstances such as rising costs and demographic shifts. According to Sanders, the formula is working as intended, with every school district receiving more funding each year since its enactment.
“Every school district has received more school funding each year since EBF was enacted,” Sanders stated. “In other words, EBF is working.”
Despite the challenges, advocates like Robin Steans, executive director of Advance Illinois, agree that the formula is making progress. “There is still more dollars available, particularly for all districts and for districts that are in the most need,” she said. “And we’re closing equity gaps as we go.”
Criticism and Future Steps
Critics, however, argue that more needs to be done. Stacy Davis Gates, president of the Illinois Federation of Teachers and the Chicago Teachers Union, emphasized the need for additional funding to keep up with rising costs. “Today’s report should serve as a wake-up call,” she said. “A child entering kindergarten today will graduate from a high school that is still underfunded.”
Sanders, however, indicated that he does not intend to ask lawmakers for larger annual increases beyond the statutorily requested $300 million. “The state board of education’s commitment has always been to request the $300 million that statutorily requested for evidence-based funding,” he said. “It’s really a function of the General Assembly and the governor to determine if there’s additional resources that could be put towards public education.”
The remaining $50 million of the annual increase goes to property tax relief grants, further highlighting the complex balancing act of school funding in Illinois.
