Illinois School Funding Overview
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Overview of Education Local, State and Federal Funding Illinois State Board of Education Illinois School Funding Reform Commission August 3, 2016
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Illinois School Funding Overview
- 1. Illinois School Funding Reform Commission Overview of Education Local, State and Federal Funding August 3, 2016
- 2. School Finance Overview for Illinois School Districts Source: FY 2015 School District Revenue by Source $15,249.60 $6,224.53 $2,005.71 Local - 64.9% State - 26.5% Federal - 8.5% State, Local, and Federal Resources for Elementary & Secondary Education in $100s 2
- 3. Local Funding for Illinois School Districts Local Revenue Sources Tuition Corporate Personal Property Tax Local Property Tax* County Sales Tax Donations Interest Income * Local property tax is the largest revenue source for public schools. There are several designated purpose levies for education. Fees 3
- 4. Examples of Designated Purpose Levies for Education: β’ Education β’ Operation & Maintenance β’ Transportation β’ IMRF & Social Security β’ Fire Prevention, Safety, Energy Conservation and School Security (Health Life Safety) β’ Working Cash β’ Bond & Interest Local Funding for Illinois School Districts β Property Taxes 4
- 5. Maximum Tax Rates with Referendum by District Type Local Funding for Illinois School Districts β Property Taxes Source: Illinois Department of Revenue District Type Education O & M Transportation* (max rate not specified) Total Unit 4.00% 0.75% 0.20% 4.95% Elementary 3.50% 0.55% 0.12% 4.17% High School 3.50% 0.55% 0.12% 4.17% 5
- 6. β’ To determine the property tax extension the Equalized Assessed Value (EAV) of the property is needed. (1/3 of Market Value) Total Tax Rate x EAV = Tax Extension β’ It is important to note exceptions: β’ Cook County β’ Farmland & Farm Buildings β’ PTELL β’ Tax Increment Finance Districts Local Funding for Illinois School Districts β Property Taxes 6
- 7. State Funding for Illinois School Districts Source: Illinois Office of the Comptroller General State Aid $5,078.6 million 68.1% MCATs $1,762.7 million 23.6% ECE/Bilingual $457.4 million 6.1% Other $162.2 million 2.2% β’ General State Aid β’ MCATS β Special Ed β Personnel Reimbursement β Special Ed β Funding β Special Ed β Orphanage Tuition β Special Ed β Private Tuition β Special Ed β Summer School β Special Ed β Transportation β Free Breakfast/Lunch β Orphanage Tuition β Regular/Voc Ed β Transportation β’ ECE/Bilingual β Early Childhood Education β Bilingual Education β’ Others β Student Assessment β Career & Technical Education β Miscellaneous FY 2017 State Funding Distribution by Grant Type 7
- 8. β’ Objective: To provide unrestricted grants to Illinois public school districts in an equitable manner β’ Consists of Two Grants: β’ Formula Grant β’ Supplemental Low-Income Grant State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 8
- 9. Formula Grant β’ Equalized β awards greater funding for districts with greater financial need based on Local Wealth. β’ Local Wealth = Property Wealth + Revenue from CPPRT β’ Property Wealth = EAV x Assumed Tax Rates in Statute Based on District Type β’ Types of Formula Grant: β’ Foundation (<93% Foundation Level) β’ Alternate Method (>93% Foundation Level but <175% = 5-7% payment) β’ Flat Grant (>= 175% Foundation Level = $218 / student) State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 9
- 10. FY 16 Summary of State Contribution for GSA Formula Grants Per Pupil Based on Full Claim State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 0 1 35 41 79 89 89 80 95 53 56 175 59 70 0 20 40 60 80 100 120 140 160 180 200 10
- 11. Supplemental Low-Income Grant β’ Uses 3 Year Average of Students Served by Department of Human Services β’ DHS Student Count / Average Daily Attendance = Low-Income % β’ 0% - 15% = $355 x Low-Income Student Count β’ >15% = ($294.25 + $2700 x (Concentration%)2) x Low-Income Students State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 11
- 12. Supplemental Low-Income Grant State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 $355.00 $402.25 $537.25 $726.25 $969.25 $1,266.25 $1,617.25 $2,022.25 $2,481.25 $2,994.25 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 15% 20% 30% 40% 50% 60% 70% 80% 90% 100% Supplemental Low-Income Payment Per Student 12
- 13. PTELL Adjustment β’ Enacted beginning with FY 2000 to create a second measure of wealth β’ For districts subject to PTELL the lesser of their actual EAV or prior year EAV inflated by amount by which their tax extension could grow State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 13
- 14. Historical Cost of PTELL Adjustment State Funding for Illinois School Districts β General State Aid Source: 105 ILCS 5/18-8.05 $46 $52 $102 $199 $205 $357 $581 $624 $805 $789 $793 $696 $629 $502 $300 $202 $141 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Cost of PTELL Adjustment 14
- 15. β’ A cluster of State programs which are appropriated for a particular statutory purpose or population. β’ Non-equalized funds. β’ Districts do not need to account for actual use of funds received. State Funding for Illinois School Districts β Mandated Categoricals 15
- 16. State Funding for Illinois School Districts β Mandated Categoricals 16 Program FY 17 Appropriation Sp Ed β Personnel $442,400,000 Sp Ed β Funding for Children Requiring Sp Ed Services $303,829,700 Sp Ed β Orphanage Tuition $95,000,000 Sp Ed β Private Facility Tuition $233,000,000 Sp Ed β Summer School $11,700,000 Sp Ed β Transportation $450,500,000 Regular/Vocational β Transportation $205,808,900 Orphanage Tuition β Regular Education $11,500,000 Illinois Free Lunch/Breakfast $9,000,000 Mandated Categorical Subtotal $1,762,738,600 ISBE FY17 General Revenue Funds Budget $7,460,971,900 Mandated Categorical Percentage of ISBE Budget 23.6%
- 17. Chicago District 299 Educational Services Block Grant β P.A. 89-15, effective May 30, 1995. District 299 receives an amount from each state program multiplied by a percentage computed from the FY95 appropriation for that program. State Funding for Illinois School Districts β Mandated Categoricals 17 Programs β Ed Services Block Grant FY17 Appropriation Block % FY17 Amt Sp Ed - Personnel $442,400,000 19.1% $84,498,400 Sp Ed β Funding for Children Requiring Sp Ed Services $303,829,700 29.2% $88,718,300 Sp Ed β Orphanage Tuition $95,000,000 35.8% $34,010,000 Sp Ed β Private Facility Tuition $233,000,000 48.4% $112,772,000 Sp Ed β Summer School $11,700,000 54.4% $6,364,800 Sp Ed β Transportation $450,500,000 30.7% $138,303,500 Regular/Vocational β Transportation $205,808,900 3.9% $8,026,500 Illinois Free Lunch/Breakfast $9,000,000 50.7% $4,563,000 Totals $1,751,238,600 $477,256,500 Total Ed Services Block Amount to Appropriation 27.3%
- 18. State Funding for Illinois School Districts General State Aid β Formula $2.87B 45.1% Supplemental General State Aid $1.74B MCATs $1.76B Compare Equalized to Non-Equalized Grants FY 2017 Non-Equalized-MCATs and SGSA Equalized-GSA MCATs and Supplemental General State Aid $3.51B 18
- 19. Federal Funding for Illinois School Districts Title I β Part A Title II β Part A Individuals with Disabilities Act Part B National School Lunch Program β’ Provides supplemental funding to LEAs with high numbers of low-income children to assist with meeting state academic standards β’ Provides funds to LEAs to increase student academic achievement by reducing class size and elevating teacher and principle quality through recruitment, hiring and retention. β’ Provides supplemental funds to all LEAs to support direct and related services to students with disabilities ages 3 β 21 in the least restrictive environment. β’ A voluntary program available to all LEAs and residential child care institutions operate a non- profit offering meals for children of families that meet federal income requirements. β’ Funds are allocated based upon low-income pupil data provided by the Federal Census Bureau. β’ Grant is allocated based on low-income pupil data provided by the Federal Census Bureau. Funds are allocated 80% on low-income and 20% on total enrollment. β’ Funds are allocated based on a guaranteed hold harmless amount from FY 2000. Remaining funds are allocated 85% on total district enrollment and 15% low-income data provided by DHS. β’ Children from families with incomes at 130% of the poverty level are eligible for free meals; those between 130% - 185% are eligible for reduced-price meals; those from families over 185% pay full price. 19
- 20. Operating Revenue Per Pupil β FY 2015 Illinois Public School Funding Statistics Minimum Maximum Mean Weighted Average $5,910 $38,489 $11,409 $12,450 Operating Tax Rate β Tax Year 2014 District Type Minimum Maximum Mean Median Elementary 1.26990 13.52350 3.51567 3.19535 High School 1.27937 5.68930 2.54348 2.97970 Unit 1.86529 9.44707 4.45934 4.27205 Available Local Resources Per Pupil Minimum Maximum Mean Median $822.48 $42,212.94 $5,174.14 $4,156.78 20
Editor's Notes
- Total Tax Rate multiplied by the Equalized Assessed Value of Real Property = Tax Extension Equalized Assessed Value of Property The required assessment level for tax purposes on any parcel of real property in any county, expect Cook County, is 33 1/3 percent of the propertyβs fair market value, excluding farmland and farm buildings. Cook County classifies property and assesses classes at different percentages of fair market value. For example, the required assessment level for the residential class is 10 percent of fair market value. The Cook County Assessorβs Office has information about other classes. Farmland and farm buildings A parcel of land used for agricultural purposes for at least two consecutive years is eligible for a preferential assessment. Farmland is assessed based on its agricultural economic value (AEV) (i.e., its ability to produce income) rather than on 33 1/3 percent of its fair market value. The AEV is a calculation of an average of prices paid for agricultural products, production costs, and interest rates that are charged by the Agri-Bank over a five-year period. Assessing officialsβ value all farmland in the county based upon its productivity, taking into account the landβs actual use, slope, erosion, flooding, and other factors that affect productivity. Farm buildings are assessed at 33 1/3 percent of their contributory value to the productivity of the farm. Farm homesites and residences are assessed at 33 1/3 percent of their fair market value. Property Tax Extension Limitation Law (PTELL) The PTELL generally restricts the growth in property tax revenue to taxing districts to 5 percent or the annual change in the U.S. Consumer Price Index, whichever is less.