1. Illinois Association of School Business Officials May 19, 2010

2. Education Funding Advisory Board

3. Statutory Requirements for EFAB Illinois School Code: 105 ILCS 5/18-8.05 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.

4. 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

5. EFAB Methodology Based on the Successful School District Model Criteria in Model: Successful School Districts Low-Income Percentage District ISAT Percentages Efficient School Districts District Spends below Predicted Level Base Level of Support Calculated Based Upon Districts Meeting Both Criteria

6. Considerations of the Current EFAB

7. Supplemental Poverty Grant Should Poverty Grant be a separate component or folded into the GSA Formula? Should shortfalls in appropriations mean prorated payments only on Poverty Grants? Is the current Poverty grant sufficient? Should it be indexed by CPI or ECI? Alternatives to the DHS count to identify low- income students?

8. Adequacy Model Parameters Should parameters be revised? Should a regional cost index be applied? Alternatives for identifying and accounting for the costs of educating low-income, ELL and Special Ed pupils? Should other factors like mobility be factored into the model?

9. General State Aid Issues Should the formula rates be revised? Current rates: 1.05% for HS, 2.30% for Elem and 3.00% for Unit Are PTELL districts harmed by formula rates and does the Double Whammy adjustment account for this? Should PTELL districts have access to the GSA Hold Harmless?

10. FY 2011 Emerging Issues

11. FY 2011 GSA Issues Replacement of ARRA Funds GSA - $791M Early Childhood - $131M CPPRT Decline Hold Harmless Provisions GSA Poverty

12. FY 2011 Local Issues Decline in CPPRT Receipts Possible EAV Decline Consumer Price Index (CPI) PTELL Districts Only Only 0.1% for CY 2010 Taxes Data for GSA based upon 4.1% CPI Uncertainty of State Funding Level

13. Current GSA Funding Proposals ISBE proposed Flat F Level of $6,119 F Level and HH at ½ current approp: $7.8M, w/ no new districts. Gov proposed $614 M decrease to the approp, No HH and No Formula Grants to Flat Districts. Prelim data shows this could result in a $5,701 F Level. HB 859, amendment 3, passed Senate. It provides flat appropriation, resulting in a $6,120 F Level. HH approp at $15.7M & new districts allowed in.

14. Tools for GSA Projections Final GSA Entitlement Sheet http://webprod1.isbe.net/gsainquiry/asp/default.asp Projection Worksheet: http://www.isbe.net/funding/excel/gsa_calc_workst_11.xls Final Data: http://www.isbe.net/funding/html/gsa.htm http://www.isbe.net/funding/html/gsa.htm CPPRT Operating Tax Rate – PTELL districts only DHS Poverty Count

15. Website Links ISBE: http://www.isbe.net/ http://www.isbe.net/ Funding: http://www.isbe.net/funding/default.htm http://www.isbe.net/funding/default.htm GSA: http://www.isbe.net/funding/html/gsa.htm http://www.isbe.net/funding/html/gsa.htm Budget: http://www.isbe.net/budget/default.htm http://www.isbe.net/budget/default.htm ILEARN: http://webprod1.isbe.net/ilearn/ASP/index.asp http://webprod1.isbe.net/ilearn/ASP/index.asp School Finance: http://www.isbe.net/finance/default.htm http://www.isbe.net/finance/default.htm

16. Contact Information Toni Waggoner twaggone@isbe.nettwaggone@isbe.net Jason Hall jhall@isbe.netjhall@isbe.net Budget Division of the Illinois State Board of Education Phone: 217-782-0249 Please feel free to contact us for any questions.