Governor’s budget makes significant down payment on achieving adequate education funding in Illinois: State still lacks plan to meet full adequacy level for education - Metropolitan Planning Council

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Governor’s budget makes significant down payment on achieving adequate education funding in Illinois: State still lacks plan to meet full adequacy level for education

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Facing a $5 billion budget deficit, Gov. Rod Blagojevich today announced in his budget address that he would keep his pledge to put adequate education funding at the top of his agenda. A cornerstone of the governor’s budget is a $250 increase in the per-pupil amount the state guarantees for education, raising it from $4,560 per year to $4,810, representing an increase of $235 million for general state aid. The governor's proposal exceeds the $200 per-pupil increase recommended by the Illinois State Board of Education in its fiscal year 2004 budget request.

With over 80 percent of state school districts deficit spending, one in three in financially dire straits (on the State Board’s financial watch and warning lists), and the failure of more than half of the April 1st school tax increase referenda at the local level, the Governor's proposal is a step in the right direction.

“Given the scarce budgetary resources this year, this is a meaningful down payment by the governor toward making adequate education funding a reality,” said Bindu Batchu, manager, Network 21: Quality Schools for Stronger Communities. “This budget acknowledges the precarious fiscal position of many districts, and the need to increase the state share of school funding -- which ranks 48th out of 50 states,” she added.

Despite this major first step, the state is still far short of the $5,665 annual amount state-commissioned research has proven is required to deliver a quality education for all Illinois schoolchildren. Education reform advocates will look to the governor to begin implementation of a plan to increase funding to provide an adequate education for every child, and ultimately decrease the over-reliance on the property tax to fund schools in Illinois before the end of his first term.

Ill. Sen. Miguel del Valle (D-Chicago), chair of the Senate Education Committee, said, “I commend the governor and Bureau of the Budget Director John Filan for creating the means to protect education from cuts and move Illinois a little closer to the minimum per-pupil recommendations put out by the state's Education Funding Advisory Board. However, we are still far from where we need to be on this foundation level. I am concerned that some of the measures used to plug the budget gap this year might have grave impacts on our fiscal situation in 2005. Ultimately, we still need major structural tax reform to reduce the over-reliance on the property tax and provide a quality education for every child in Illinois.”

Absent from the governor's proposal is a plan to change the amount of funds allocated for educating poorer students, nor does it change how those funds are distributed, both priorities for Network 21.

Explained Batchu, “The current poverty count system uses an outdated Census count, updated only once every 10 years, to measure the number of poor students in schools. A switch to using annual, updated numbers provided by the Department of Human Services would allow funds to reach students in the most need. HB 430, which has passed the House and is currently in the Senate, offers one way to address these issues.”

Ralph Martire, executive director, Center for Tax and Budget Accountability, said, “It's great that in a tight fiscal situation the governor has found a little extra money for schools. However, in the longer-term, we need to deal with the structural problem at the state level, and increase state-based revenues to fund education.”

Springfield School District 186 is among 183 districts in the less-severe "early warning" category on the State Board’s financial watch list. After voters rejected a tax increase last fall, the district cut $10 million from its budget. Dr. Diane K. Rutledge, Springfield Public School District 186 superintendent, said, "Our school district is committed to maintaining a balanced budget, which currently can only be accomplished by annually cutting programs and supports for students. It is encouraging to know the governor is showing effort to comply with his campaign promise to put education first. In Springfield, the governor’s actions today will have no effect. By increasing the foundation level, but reducing the ADA Block Grant and holding categoricals even, there appears to be no new dollars for our district. Although there is still a long way to go to adequately fund education in Illinois, every step towards this goal is greatly appreciated and we will remain hopeful for the future.”

Significant in the governor’s budget proposal is a $30 million increase for early childhood education. Research consistently shows important benefits early childhood education provides for young children, their families and society. The governor's investment here, especially in these difficult financial times, is laudable.

Districts will also likely benefit from increased funds for programs they are required by state and federal law to implement, known as mandated categoricals, largely in the arena of special education. Costs for implementing these programs are rising dramatically. The governor's proposed increase of $87.5 million will help districts meet these mandates.

Community Unit School District 300 i n Carpentersville, which depends heavily on funds for categorical programs, receives 65 percent of its operating budget from property tax payers. Said Dr. Ken Arndt, the district’s superintendent, “Many people in our area are requesting significant property tax relief. It’s not that they don’t support public education; it’s just that enough is enough. In order to provide relief to homeowners, there has to be an expansion of the state’s revenue base.”

While the governor's proposal includes continuation of a popular school construction program funded through bonds in FY 2004, there is no mention of extending the program into FY 2005 -- which would provide the minimum advance notice school districts require to begin planning for such initiatives. Last week, a bill to provide such bonding authority for school construction projects was defeated in the Senate.

Network 21, a statewide coalition coordinated by the Metropolitan Planning Council, launched an intensive statewide advocacy campaign in September of 2002 to reform public education funding, quality and accountability. Its top priorities are to ensure that education funding is sufficient to provide a quality education for every student in Illinois; s upport funding options that decrease reliance on local property taxes; advance quality reforms that improve education outcomes for all children; and support policies that improve access and use of technology in all public schools.

For more information contact:

Bindu Batchu — 312.307.3162 (cell)

Scott Goldstein — 312.863.6003

 

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