1. General School Funding
General State Aid
Illinois School Code
105 ILCS 5/

2. State, Local and Federal Funding

3. State, Local and Federal Resources For Elementary & Secondary ($ in Millions)
Year
State $
State %
Local $
Local %
Federal $
Federal %
Total $
8,519.6
34.6%
13,903.7
56.5%
2,165.7
8.8%
24,589.0
7,492.1
33.1%
12,982.2
57.3%
2,174.1
9.6%
22,648.4
6,875.5
32.3%
12,226.1
57.5%
2,163.1
10.2%
21,264.7
6,955.7
33.7%
11,456.7
55.5%
2,219.3
10.8%
20,631.7
7,206.1
35.9%
10,805.3
53.8%
2,073.8
10.3%
20,085.2
6,873.2
36.1%
10,226.2
53.7%
1,952.1
19,051.5
7,181.1
38.8%
9,724.0
52.5%
1,623.0
18,528.0
6,785.1
37.7%
9,331.6
51.9%
1,868.0
10.4%
17,984.7
6,354.0
37.8%
8,907.0
52.9%
1,565.8
9.3%
16,826.8
5,654.4
8,571.1
54.7%
1,434.3
9.2%
15,659.8
4,849.3
33.9%
8,052.0
56.2%
1,417.9
9.9%
14,319.2
4,307.1
32.7%
7,700.9
58.5%
1,152.9
13,160.9
3,994.8
32.1%
7,339.8
58.9%
1,123.7
9.0%
12,458.3
3,792.6
32.4%
6,841.0
58.4%
1,080.6
11,714.2
3,611.5
32.9%
6,453.4
58.8%
901.0
8.2%
10,965.9
3,475.4
33.4%
6,078.1
862.9
8.3%
10,416.4
3,433.9
35.2%
5,555.8
57.0%
762.5
7.8%
9,752.2
3,499.6
5,060.7
54.5%
718.7
7.7%
9,279.0
3,487.5
39.3%
4,709.5
53.1%
666.8
7.5%
8,863.8
3,000.1
4,308.3
54.2%
639.4
8.0%
7,947.8

4. FY 2009 Federal Programs By 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

5. 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 $ M
All Others $ M
CPPRT $ M
Total $ 13,904 M

6. 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)

7. Exemptions Non-PTELL Districts 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 impacted
Note: The 7% cap in Cook County has a different effect on GSA

8. 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)

9. Comparison Non-PTELL 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

10. PTELL Highlights 39 Counties Subject to PTELL (38%)
Fiscal 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

11. Fiscal Year 2007 Total State Revenues by Source (All Funds - $’s in Millions)
Income Taxes $11, %
Sales Taxes ,
Federal Aid ,
Road Taxes ,
State Lottery (gross)
All Other ,
Total $48, %

12. Net Lottery Proceeds

13. FY 2007 Appropriations by Purpose (All Funds - $’s in Millions)
Elem & Secondary $8, %
Higher Education ,
Transportation ,
Human Services 20,
Public Safety ,
Environment &Nat Res
Gov’t Services ,
All Other ,
Total $48, %

14. 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.

15. FY 2009 State Funding GRF (60 + programs)
General State Aid / HH $4,616 M
Mandated Categoricals $1,782 M
Other $ M
Non-GRF
School Construction $ M
School Infrastructure $ M
Driver Education $ M
Others $ M
Total $7,421 M

16. Mandated Categoricals
Lunch/Breakfast $ M
Regular Orphanage $ 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 $ M
SE Transportation $383.3 M
Regular Transportation $339.5 M
Total $1,782.3 M

17. Other Major Categoricals
Early Childhood $380.3 M
Reading Improvement $ M
Bilingual Education $ M
Career & Technical Education $ M
Extended Learning Opportunities $ M
(Summer Bridges)
Standards, Assessment and
Accountability $ M
Alternative Learning $ M

18. General State Aid Foundation Formula
(Foundation Level
- Local Resources per Student) x
Students

19. 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% % %
Alternate Formula (7% to 5%), Flat Grant ($218)
Separate Poverty Formula

20. 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)

21. Available Local Resources (ALR)
ALR = (GSAEAV x Rate + CPPRT) / ADA
where Rate = % for elementary
1.05% for high school
3.00% for unit
Local Ratio
A L R / FLEVEL

22. 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

23. Complicating Issues Cost of the Double Whammy Adjustment
FY $46M FY $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

24. Supplemental GSA Poverty Grant Formula
Low Income Concentration Level
3 Year Average of DHS Count divided by ADA
0% to 15%: $ 355 x Low Income Count
> 15% :
( x squared concentration)
x Low Income Count

25. Poverty Grant (2007-2008) 2006-07 Poverty Category # ADA Count Grant
No Grant ,
Flat Grant , , $16,988,865
> 15% ,335, , $768,434,713
Total ,908, , $785,423,578

26. 2007-2008 FINAL GSA (in Millions)
Districts Pct GSA Pct ADA Pct
Foundation % $4, % ,500, %
Alternate % $ % , %
Flat Grant % $ % , %
Lab/Alt/Safe % $ % , %
Total % $4, % ,929, %

27. 2007-2008 FINAL GSA (in Millions)
Districts Pct GSA Pct ADA Pct
Chicago % $1, % , %
Other Cook % $ % , %
Collar % $ % , %
Downstate % $2, % , %
Total % $4, % 1,929, %

28. 2007-2008 GSA Hold Harmless (in Millions)
Districts Pct HH Pct
Other Cook % $ %
Collar % $ %
Downstate % $ %
Total % $ %
Note: The FY 2008 Appropriation is $20.7M

29. General State Aid Decreases Increases HH Base 6% 5% 3% 60% 25% 1%
(Districts Only)
Decreases
Increases
FY 1999
FY 2008
FY 2008
FY 1999
FY 1999
FY 2008
HH Base
FY 2008
FY 1999
FY 2008
FY 1999
FY 2008
FY 1999 6% 5% 3%
60%
25% 1% 50 45 23
521
219 12

30. Why is the Distribution of General State Aid Changing Regionally?

31. 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

32. 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

33. Per Pupil Statistics By District Type

34. Spending per Pupil by Type 2006-2007 (Data Not Included for 2 Non-Operating Highs)

35. EAV per Pupil by Type 2005 EAV

36. Education Funding Advisory Board

37. 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.

38. 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

39. Adequacy Models Economic Cost Function Successful School District
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

40. 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

41. Proposed Changes To School Funding

42. Task Force on School Finance
Legislative Task Force
28 Months - Final Report January 1991
New Formula
$3, Reduced Weightings
Restructure of Permissive Tax Rates
Property Tax Relief based on Education Fund Tax Rate

43. Governor’s Commission
Business/Education Task Force
10 Months - Final Report March 1996
New Formula
$4, No weightings
$1.5 Billion in Property Tax Relief
Tax Rate Roll Back
$2.1 Billion Income Tax Increase
Constitutional Amendment

44. Edgar-Madigan Outgrowth of Governor’s Commission
Final Days of FY 97 Session
SB 645 Amendment #1
New Formula
$4, No weightings --- Separate Poverty
$900 Million in Property Tax Relief - $ for $
1% Income Tax Rate Increase

45. 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

46. Education Caucus Voluntary Membership No Time Limit
Look at Education Issues – Especially Funding

47. 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

48. 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

49. Website Links ISBE: http://www.isbe.net/
Funding:
GSA:
Budget:
ILEARN:
School Finance:

50. Contact Information
Toni Waggoner
Budget Division of the Illinois State Board of Education
Phone:
Please feel free to contact me for any questions.

51. The End