| For Immediate Release
March 16, 2006
Illinois schools continue to show financial improvement
Number of school districts in deficit
spending declines for second straight year
SPRINGFIELD – The financial health of Illinois
school districts continues to improve according to data
released today by the Illinois State Board of Education.
The State Board’s Financial Profile for each Illinois
school district shows the number of Illinois school districts
in deficit spending dropping for the second year in a
row. For Fiscal Year 2005 (FY05), slightly more than 40
percent of Illinois school districts were deficit spending.
In FY03 nearly 80 percent of districts spent more than
they received.
“Governor Rod Blagojevich has worked hard to get
more money into Illinois classrooms, and that hard work
is paying off,” said State Board of Education Chairman
Jesse Ruiz. “Bolstered by the Governor’s work
at the State level, local districts are working hard to
manage resources carefully. And, when you have that combination,
the result is good for schools, good for communities and
great for students.”
The School District Financial Profile was reviewed by
the Illinois State Board of Education during its regularly
scheduled meeting today (Thursday, March 16, 2006).
The data collected for school district deficit spending
can be found in the School District Financial Profile
available at http://www.isbe.net/sfms/P/profile.htm.
The School District Financial Profile was designed to
better illustrate information on school district finances
and to establish financial designation lists for all school
districts. The designation categories are in descending
order (highest rating to lowest rating):
- Financial Recognition
- Financial Review
- Financial Early Warning
- Financial Watch
The results for FY 2006 Financial Profile (based on FY
2005 financial data) show continued improvement, with
more than half of Illinois school districts achieving
the highest ranking:
- 55.3 percent of districts in Financial Recognition,
compared to 39.8 percent in FY 2003 Financial Profile
- 25 percent of districts in Financial Review, compared
to 27.0 percent in FY 2003 Financial Profile;
- 12.3 percent of districts in Financial Early Warning,
compared to 15.7 percent in FY 2003 Financial Profile;
and
- 6.7 percent of districts in Financial Watch, compared
to 17.5 percent in FY 2003 Financial Profile.
All indicators also showed improvement from Fiscal Year
2004 levels.
This is the fourth year that it has been utilized by
the State Board of Education. The School District Financial
Profile was developed with school superintendents, school
business administrators, financial advisors, bond brokers
and educational constituent groups throughout the state.
During the first three years of his administration, Governor
Blagojevich dedicated $2.3 billion of new state funding
into Illinois schools, increasing the per-pupil foundation
level by $200 per year. This represents more new money
invested in education than any other state in the Midwest,
more than 43 other states in the nation, and more than
any administration in one term in Illinois history.
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