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State Board Budget Targets Funding Gap of Schools

By realigning funding for other line items, the proposed budget would ease the funding gap by

Ø     increasing General State Aid to meet the recommendations of the Education Funding Advisory Board to increase the foundation level by $120 per pupil;

Ø     fully funding mandated categorical programs, such as special education and transportation; and

Ø     funding teacher retirement at the statutorily required level.

General State Aid, including the extension of the hold harmless provision that ensures no district gets less than in 97-98, would receive a $67.6 million increase.   The foundation level moves to $4,680 per pupil from the current level of $4,560.  Mandated categorical programs would be fully funded for the fourth straight year with a $75 million increase.  General State Aid and mandated categorical line items provide the bulk of funding local school districts receive from state appropriations.  An additional increase of $123 million would fund teacher retirement at the level set by state law.

"Tight economic times challenge us even more to put scarce resources into the areas of greatest need," according to State Superintendent of Education Ernest R. Wish.  "We know this budget does not begin to address all the financial needs of our school districts and we wish this year could be different.

"There are many outstanding programs and services that add value to teaching and learning that must wait for better economic conditions.  This budget asks the Governor and General Assembly to allocate most of the available funds to bring greater equity in support for schools and to maximize districts' flexibility in spending the money," Wish said.

To address two other critical issues facing Illinois education, the State Board's budget recommends increases of $8.5 million to address the educator gap and $30 million for the achievement gap.  Mentoring, induction and recruitment would get $5 million to get and keep quality educators in Illinois classrooms.  An additional $1 million would be appropriated for National Board Certification to support teachers who achieve this important credential. Regional Offices of Education are slated for a $2.5 million increase to support increased professional development for local school staff.

Targeting the achievement gap would be accomplished by

Ø     increasing Standards, Assessment and Accountability by $4.5 million to meet required increases to maintain the current state testing program;

Ø     adding $14.5 million for Early Childhood Education to provide a cost-of-living adjustment for current providers and to reduce the waiting list; and

Ø     allocating an additional $11 million to support schools on the Academic Early Warning List and to increase the availability of Summer Bridge programs for at-risk students.

Increases to address ALL three critical gaps would total $304.1 million.  Since state revenues are projected to continue growing at a reduced rate due to the economic slow-down, only about $250 million is projected to be available for elementary and secondary education in FY03. 

The State Board's budget recommends holding the line at the $250 million level by reallocating and reducing other line items in the budget.   These adjustments include reducing by $45.4 million the $72 million block grant that is based solely on average daily attendance, reallocating $3 million from Charter Schools, $2.1 million from the Teachers Academy for Math and Science, $1.3 million from Vocational Education Staff Development, $1 million from Certificate Renewal Administrative Payment and $1.3 million from other lines, including agency operations.  

"Governor Ryan and members of the General Assembly have been generous to schools by devoting more than 51% of revenue growth to schools the last three years" said State Board Chairman Ronald J. Gidwitz.  "We are asking them to continue this commitment in Fiscal Year 2003 even though state revenues are projected to grow more slowly than previous years."