General School Funding

General State AidIllinois School Code105 ILCS 5/18-8.05

State, Local and Federal Funding

State34.6%

Local56.6%

Federal8.8%

State, Local and Federal ResourcesFor Elementary & Secondary

($ in Millions)

Year State $ State % Local $ Local % Federal $ Federal % Total $

2007-08 8,519.6 34.6% 13,903.7 56.5% 2,165.7 8.8% 24,589.0

2006-07 7,492.1 33.1% 12,982.2 57.3% 2,174.1 9.6% 22,648.4

2005-06 6,875.5 32.3% 12,226.1 57.5% 2,163.1 10.2% 21,264.7

2004-05 6,955.7 33.7% 11,456.7 55.5% 2,219.3 10.8% 20,631.7

2003-04 7,206.1 35.9% 10,805.3 53.8% 2,073.8 10.3% 20,085.2

2002-03 6,873.2 36.1% 10,226.2 53.7% 1,952.1 10.2% 19,051.5

2001-02 7,181.1 38.8% 9,724.0 52.5% 1,623.0 8.8% 18,528.0

2000-01 6,785.1 37.7% 9,331.6 51.9% 1,868.0 10.4% 17,984.7

1999-00 6,354.0 37.8% 8,907.0 52.9% 1,565.8 9.3% 16,826.8

1998-99 5,654.4 36.1% 8,571.1 54.7% 1,434.3 9.2% 15,659.8

1997-98 4,849.3 33.9% 8,052.0 56.2% 1,417.9 9.9% 14,319.2

1996-97 4,307.1 32.7% 7,700.9 58.5% 1,152.9 8.8% 13,160.9

1995-96 3,994.8 32.1% 7,339.8 58.9% 1,123.7 9.0% 12,458.3

1994-95 3,792.6 32.4% 6,841.0 58.4% 1,080.6 9.2% 11,714.2

1993-94 3,611.5 32.9% 6,453.4 58.8% 901.0 8.2% 10,965.9

1992-93 3,475.4 33.4% 6,078.1 58.4% 862.9 8.3% 10,416.4

1991-92 3,433.9 35.2% 5,555.8 57.0% 762.5 7.8% 9,752.2

1990-91 3,499.6 37.7% 5,060.7 54.5% 718.7 7.7% 9,279.0

1989-90 3,487.5 39.3% 4,709.5 53.1% 666.8 7.5% 8,863.8

1988-89 3,000.1 37.7% 4,308.3 54.2% 639.4 8.0% 7,947.8

FY 2009 Federal ProgramsBy Appropriation

Economically Disadvantaged (Title I) $737 M Special Education (IDEA) $598 M Child Nutrition $525 M Teacher/Principal Training (Title II) $165 M Safe & Drug Free Schools (Title IV) $ 70 M Career & Technical $ 60 M Bilingual (Title III) $ 40 M Innovation (Title V) $ 14 M Others $ 40 M Total $2,249 M

Local Funding(2006 EAV & Tax Rates)

Property Taxes $ 13,110 M Debt Service $1,285 M Education $8,974 M Operations $1,528 M Transportation $ 358 M All Others $ 965 M

CPPRT $ 794 M Total $ 13,904 M

Property Tax System

Equalized Assessed Valuation – EAV Tax Rates for Various Purposes District Request for Property Tax Revenue

– Levy Payment to District for Property Taxes –

Extension Operating Tax Rate X Total EAV =

Extension Maximum that a district can receive (no bonds)

Exemptions

Non-PTELL Districts Loss of local property tax revenue at the

district tax rate A gain in General State Aid 2 – 3 years

down the road at the formula rate PTELL Districts

No local loss if tax rate below maximum Estimated that GSA would be minimally

impactedNote: The 7% cap in Cook County has a different effect on GSA

PTELL Property Tax Extension Limitation Law

Referred to as “Tax Caps” Limits the Amount the Extension can

Increase over the Previous Year Linked to the Consumer Price Index (CPI) Legislated for Collar Counties(1991)

Cook County (1994) Limiting Rate X Total EAV = Extension

Maximum that a district can receive (no bonds)

Comparison

Non-PTELL Operating Tax Rate X Total EAV = Money to District Operating Tax Rate is Fixed, EAV Varies so Money

to District Adjusts PTELL

Limiting Rate X Total EAV = Money to District Money to District is Fixed (increase limited to CPI) EAV Varies so the Limiting Rate Adjusts

In Both Cases We are Talking About the Maximum

PTELL HighlightsFiscal Year 2008

39 Counties Subject to PTELL (38%)

461 (53%) Districts 78% of the ADA

63 Counties NOT Subject to PTELL (62%)

9 - Failed Referendum 54 – No Vote

412 (47%) Districts 22% of the ADA

Double Whammy Adjustment Cost - $805.5M

Fiscal Year 2007Total State Revenues by

Source(All Funds - $’s in Millions)

Income Taxes $11,158 22.9% Sales Taxes 7,631 15.6 Federal Aid 12,999 26.6 Road Taxes 2,742 5.6 State Lottery (gross) 957 2.0 All Other 13,344 27.3 Total $48,831

100.0%

Net Lottery ProceedsNet Lottery Proceedsb

Fiscal Year Total

Appropriationsa Amount % of Total

2007 7,337.9 622.4 8.5

2006 6,808.0 670.5 9.8

2005 6,850.7 619.0 9.0

2004 6,559.1 570.0 8.7

2003 6,176.3 540.0 8.7

2002 7,249.9 555.0 7.7

2001 6,785.1 490.0 7.2

2000 6,354.0 515.0 8.1

1999 5,654.4 540.0 9.6

1998 4,849.3 565.0 11.7

1997 4,307.1 590.2 13.7

1996 3,994.8 594.1 14.9

1995 3,792.7 588.3 15.5

1994 3,611.5 552.1 15.3

1993 3,475.4 587.4 16.9

1992 3,433.9 610.0 17.8

1991 3,499.6 590.0 16.9

1990 3,487.5 594.0 17.0

1989 3,000.1 586.1 19.5

1988 2,866.4 524.4 18.3

FY 2007Appropriations by Purpose

(All Funds - $’s in Millions)

Elem & Secondary $8,749 18.0% Higher Education 2,825 5.8 Transportation 2,183 4.5 Human Services 20,747 42.8 Public Safety 2,307 4.8 Environment &Nat Res. 559 1.2 Gov’t Services 2,947 6.1 All Other 8,177 16.9 Total $48,494 100.0%

State Funding

General State Aid – provide unrestricted grants-in-aid to Illinois school districts in an equitable manner. Foundation level formula and poverty grant formula.

The objective of categorical programs is to reimburse districts for the expense associated with providing services to or for targeted populations.

FY 2009 State Funding

GRF (60 + programs) General State Aid / HH $4,616 M Mandated Categoricals $1,782 M Other $ 988 M

Non-GRF School Construction $ 0 M School Infrastructure $ 5 M Driver Education $ 18 M Others $ 12 M

Total $7,421 M

Mandated Categoricals Lunch/Breakfast $ 26.3 M Regular Orphanage $ 11.6 M SE Extraordinary $331.1 M SE Orphanage $101.8 M SE Personnel $426.1 M SE Private Tuition $151.6 M SE Summer School $ 11.0 M SE Transportation $383.3 M Regular Transportation $339.5 M Total $1,782.3 M

Other Major Categoricals Early Childhood $380.3 M Reading Improvement $ 76.1 M Bilingual Education $ 75.6 M Career & Technical Education $ 38.6 M Extended Learning Opportunities $ 22.2 M (Summer Bridges) Standards, Assessment and Accountability $ 36.3 M Alternative Learning $ 18.5 M

General State AidFoundation Formula

(Foundation Level

- Local Resources per Student- Local Resources per Student))

xx

StudentsStudents

Provisions of GSA Formula

Fixed Foundation Levels thru FY 2009 $4,225 $4,325 $4,425 $4,560 $4,560 $4,810 $4,964 $5,164

$5,334 $5,734 $5,959 No Continuing Appropriation (eliminated in FY 2003)

Unweighted ADA used as Pupil Count Greater of prior year or prior 3 year average

Calculation Rates 3.00% - 2.30% - 1.05%

Alternate Formula (7% to 5%), Flat Grant ($218) Separate Poverty Formula

Effect of EAV Increase to GSA

For every $1 Million increase to the EAV used to calculate GSA for a foundation district: Unit Districts Lose $30,000 in GSA Elementary Districts Lose $23,000 in GSA High School Districts Lose $10,500 in GSA They may have gained in local property taxes if

their local rate is higher than the formula rate The EAV is not used for GSA until 2 years after

the tax extension (2006 EAV used in 2007 tax extension is used for FY 2009 GSA)

Available Local Resources (ALR)

ALR = (GSAEAV x Rate + CPPRT) / ADA where Rate = 2.30% for elementary 1.05% for high school 3.00% for unit

Local Ratio A L R / FLEVEL

Three Formulas

Foundation (Less than .93) (FLEVEL - ALR) x ADA

Alternate Method (.93 up to 1.75) 7% to 5% of FLEVEL x ADA

Flat Grant (1.75 and greater) $218 x ADA

Complicating Issues

Cost of the Double Whammy Adjustment FY 2000 - $46M FY 2008 - $806M (over 1600%) Actual Tax Rates Falling Below Formula

Rates Complexity of PTELL in Overlap Counties Applying Audited ADAs when 3 Year Avg

has been Utilized Effects of TIFs, Enterprise Zones, Property

Tax Exemptions, etc. & PTELL vs Non-PTELL

Supplemental GSAPoverty Grant Formula

Low Income Concentration Level 3 Year Average of DHS Count divided by ADA

0% to 15%: $ 355 x Low Income Count

> 15% : (294.25 + 2700 x squared concentration) x Low Income Count

Poverty Grant (2007-2008)

2006-07 PovertyCategory # ADA Count Grant

No Grant 74 5,339 0 0

Flat Grant 230 567,325 45,631 $16,988,865

> 15% 640 1,335,534 617,117 $768,434,713

Total 944 1,908,198 662,748 $785,423,578

2007-2008 FINAL GSA

(in Millions)

Districts Pct GSA Pct Pct ADA Pct

Foundation 686686 72.7% $4,205.6 95.3% 1,500,104 77.7%

Alternate 133 14.1% $ 155.0 3.5% 346,542 18.0%

Flat Grant 51 5.4% $ 21.0 0.5% 77,123 4.0%

Lab/Alt/Safe 74 7.8% $ 31.6 0.7% 5,511 0.3%

Total 944 100.0% $4,413.2 100.0% 1,929,280 100.0%

2007-2008 FINAL GSA

(in Millions)

Districts Pct GSA Pct Pct ADA Pct

Chicago 1 0.1% $1,091.1 24.7% 366,239 19.0%

Other Cook 146146 15.5% $ 607.5 13.8% 359,850 18.7%

Collar 150 15.9% $ 700.6 15.9% 540,617 28.0%

Downstate 647 68.5% $2,014.0 45.6% 662,574 34.3%

Total 944 100.0% $4,413.2 100.0% 1,929,280 100.0%

2007-2008GSA Hold Harmless

(in Millions)

Districts Pct HH PctPct

Other Cook 5 5 6.2% $ 5.3 22.5%

Collar 18 18 22.5% $ 6.1 26.0%

Downstate 57 57 71.3% $ 12.1 51.5%

Total 80 100.0% $ 23.5 100.0%

Note: The FY 2008 Appropriation is $20.7MNote: The FY 2008 Appropriation is $20.7M

FY 1999FY 1999

FY 1999FY 1999

FY 2008FY 2008

FY 1999FY 1999

FY 2008FY 2008

FY 2008FY 2008

FY 1999FY 1999FY 2008FY 2008

FY 1999FY 1999

FY 2008FY 2008

FY 1999FY 1999

FY 2008FY 2008

DecreasesDecreases IncreasesIncreases

6%6% 5%5% 3%3% 60%60% 25%25% 1%1%

General State AidGeneral State Aid

HH BaseHH Base

5050 4545 2323 521521 219219 1212

(Districts Only)

Why is the Distribution of General State Aid Changing

Regionally?

EAV Highlights

45.9% Increase 53.5% Growth in

Cook/Collar (79% of EAV) 22.4% Growth in

Downstate (21% of EAV)

14 Counties (>35% increase)

9 Counties Increased over 50%

20 Downstate Counties Decreased

ADA Highlights

2.1% Increase 2.8% Increase in

Cook/Collar (66% ADA)

10.9% Increase in Collar Counties (Cook County decreased by 2.5%)

0.8% Increase Downstate (34% ADA)

76 Counties Decreased

8 Counties Decreased 10% or more

Per Pupil StatisticsBy District Type

Spending per Pupil by Type2006-2007

(Data Not Included for 2 Non-Operating Highs)

Elementary School Unit

N = 376 N = 100 N = 395

Maximum $23,001 $18,808 $23,726

95th% $14,011 $17,892 $10,934

75th% $10,374 $13,487 $9,083

Median $8,697 $10,777 $8,157

25th% $7,578 $9,359 $7,501

5th% $6,304 $7,534 $6,672

Minimum $5,122 $4,803 $5,486

EAV per Pupil by Type2005 EAV

High

Elementary School Unit

Maximum 1,786,000 1,731,000 435,000

95th% 671,000 928,000 185,000

75th% 319,000 601,000 107,000

Median 177,000 324,000 82,000

25th% 102,000 238,000 59,000

5th% 59,000 136,000 35,000

Minimum 38,000 91,000 7,000

Education Funding Advisory Board

Statutory Requirements for EFAB

EFAB shall make recommendations … for the foundation level …and for the supplemental general state aid grant level … for districts with high concentrations of children from poverty.

The recommended foundation level shall be based on a methodology which incorporates the basic education expenditures of low-spending schools exhibiting high academic performance.

EFAB Reports Initial report in January 2001 (FY02)

$135 increase to FLEVEL, utilize max of 3-yr avg or prior year ADA, lower poverty threshold to 15%, continuing appropriation

Interim report in January 2002 (FY03) $120 increase to FLEVEL, new poverty count and formula,

continuing appropriation Comprehensive report in October 2002 (FY04)

$1,105 increase to FLEVEL, new poverty count and formula, reinstate continuing appropriation. (Property tax abatement and income tax increase to fund formula changes)

Report of May 2005 $1,441 increase to FLEVEL, apply the Employment Cost

Index (ECI) to the Poverty Grant Formula, reinstate the Continuing Appropriation

No Report in January 2007

Adequacy Models Economic Cost Function

Attempts to determine the amount needed per pupil for the desired level of performance

Multiple Regression Model Complicated Statistical Model No state was using this model (2006 research)

Successful School District Identifies school districts at the desired performance level Calculates a weighted average from the expenditure level Outliers are eliminated so data could be skewed

Professional Consensus A group of educational professionals identify the components of

a prototype school Once the components are identified they are then “costed out” Can lead to a “maximum” rather than “adequate” level

Combination of Methods Uses the best of the 3 models School level not district

EFAB Methodology Contracted with Augenblick & Meyer for a

replicable methodology to produce an adequate funding level. Based on the Successful School District Model

First used in the October 2002 report Requested foundation level was $5,665

Criteria Used: Two Most Current Years of Test Data Low-Income Percentage Minimum % Meeting Standards – 67% Use the Per Capita Tuition charge McMahon Index used as Cost Adjustment

Updated for the May 2005 Report - $6,405

Proposed ChangesTo School Funding

Task Force on School Finance

Legislative Task Force 28 Months - Final Report January

1991 New Formula

$3,898 --- Reduced Weightings Restructure of Permissive Tax Rates Property Tax Relief based on

Education Fund Tax Rate

Governor’s Commission Business/Education Task Force 10 Months - Final Report March 1996 New Formula

$4,225 --- No weightings $1.5 Billion in Property Tax Relief

Tax Rate Roll Back $2.1 Billion Income Tax Increase Constitutional Amendment

Edgar-Madigan

Outgrowth of Governor’s Commission Final Days of FY 97 Session SB 645 Amendment #1 New Formula

$4,200 --- No weightings --- Separate Poverty $900 Million in Property Tax Relief - $ for

$ 1% Income Tax Rate Increase

Committee of Eight

Two legislators from each chamber Late Fall & Early Winter of 1997 Tons of simulations with estimated data Passed HB 452 – Effective FY 1999 Contained in spirit the GSA

recommendations of the Edgar Commission

Continuing appropriations for GSA & HH

Education Caucus

Voluntary Membership

No Time Limit

Look at Education Issues – Especially Funding

House Bill 750 $2.7 Billion Property Tax Relief 2% Increase to Personal Income Tax 3.2% Increase to Corporate Income Tax Broaden Sales Tax Base GSA Foundation Level = $5,952

Increased Annually by the ECI Poverty Grant Formula Components

Increased Annually by ECI Special Education Personnel Funding

Increase

Senate Bill 2288 $2.9 Billion for Property Tax Relief – FY 2010

Minimum Property Tax Relief – 80% Supplemental Property Tax Relief – 20%

Invest in Illinois Fund Fund Capital Programs for the State Beginning in FY 2010 $1B is to be appropriated

Early Childhood Fund Special Education Personnel Funding Increase General State Aid

Beginning in FY 2009 Increase Poverty Components by ECI

4-Year Phase-In of the Foundation Level - $6,974 FY 2010 – FY 2013 (ECI increased each year of phase-in)

Distinction Between Pre-Reform Foundation Base and Additional Base Support

School Improvement Partnership Pool Fund

Website Links

ISBE: http://www.isbe.net/

Funding: http://www.isbe.net/funding/default.htm

GSA: http://www.isbe.net/funding/html/gsa.htm

Budget: http://www.isbe.net/budget/default.htm

ILEARN: http://webprod1.isbe.net/ilearn/ASP/index.asp

School Finance: http://www.isbe.net/finance/default.htm

Contact Information

Toni Waggoner Budget Division of the Illinois State

Board of Education Email: twaggone@isbe.net Phone: 217-782-0249

Please feel free to contact me for any questions.

The EndThe End