Equalized School Funding Senate Bill 16 Everyone Deserves a Great Education Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education Why does the school funding model in Illinois need to change and what is SB16? Why We Must Support Public Education “There is a place in America to take a stand: it is public education. It is the underpinning of our cultural and political system. It is the great common ground. Public education after all is the engine that moves us as a society toward a common destiny… It is in public education that the American dream begins to take shape. The foundation of our democracy depends on public education. If we fail to support public education our quality of life will suffer, our national security will be at risk, and we will lost the freedoms Americans take for granted.” -- Tom Brokaw

Why change how Illinois schools are funded? Everyone Deserves a Great Education Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education Available State Aid not changing Low Income Students increasing Available Local Resources decreasing Public school districts found themselves in a perfect storm of unprecedented revenue shortfalls from the two primary sources used by states to fund public education: state and local revenue. National School Report Card – January 2014 Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education Revenue Source 65% of revenue generated thru property tax and other local funding. 27% of revenue is received thru General State Aid and Low Income grants from the state. 8% of revenue is received thru Federal Aid. Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education The educational opportunity available to a child in Illinois is at least partially determined by which school district they live in. State Funding Distribution Source: Is school funding fair? - National Report Card 2014 Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education The State’s financial crisis is expected to continue to grow and revenue likely will not grow significantly for several years. State Share of Funding Education Source: Is school funding fair? - National Report Card 2010 Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education Impact on School District’s Budgets An analysis of SB 16 and the impacts to School Districts throughout the State. FY11FY12 FY13FY14 82% 40% Schools will begin to go either financially or academically bankrupt. 60% of schools submitted deficit budgets in FY 2014 (18% in 2011) Landscape (political and economic) will make it difficult to raise additional tax Revenues. % of School Districts with Balanced Budgets

What is SB16? Everyone Deserves a Great Education Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education SR 431SR 431 (Manar) created the Education Funding Advisory Committee. The purpose of the Advisory Committee is to propose a state education funding system that provides adequate, equitable, transparent, and accountable distribution of funds to school districts that will prepare students for achievement and success after high school. The Advisory Committee is required to consider the following:  the number of students in a school and school district and the level of need;  a school district’s ability to provide local resources;  transparency and accountability; revenue predictability;  the long-term implications and outcomes of the funding system. Why does the school funding model in Illinois need to change and what is SB16?

Everyone Deserves a Great Education  Increase the portion of the State’s current budget that is spent on education.  Modify the State’s revenue (taxes) to provide property tax relief while increasing and stabilizing funding to education.  Increase local revenue (taxes) to provide additional funds. Options to address the short fall of revenues to fund education An analysis of SB 16 and the impacts to School Districts throughout the State. SB16 Reallocates State aid between School Districts.  Creates a single needs based weighted formula to determine a School’s districts budget  Provides State Aid to Districts based on the community’s ability to meet their District’s need  Provides a three year phased implementation for District’s to make cuts as needed