92nd General Assembly, 2002
By Guest Author- May 13, 2002
Funding Principles: Children First
Network 21's funding priority remains targeting increases to schools with the fewest resources through General State Aid, and in the short term, ensuring that these resources are protected from budget cuts. In order to provide an adequate education, the amount of money spent per student should be between $5,000 and $5,500, exclusive of categorical and other special costs. This is in keeping with the research findings on behalf of Network 21 by nationally recognized experts Augenblick and Myers, who in the fall of 2000 examined the expenditures of Illinois schools and determined this to be the range spent by schools that are fiscally efficient and high performing. Network 21 education funding principles include reducing the reliance on the local property tax, developing an adequate and stable revenue stream for schools and increasing the state's share of public school funding.
2002 Short-term Recommendations
1. Increase the foundation level for FY 2003.
Follow the recommendation of the Education Funding Advisory Board (EFAB) and Illinois State Board of Education (ISBE) to increase the foundation level by $120 per pupil to $4,680. This represents a 2.6 percent increase to cover the cost of inflation, and would cost the state $72 million (with hold harmless).
2. Replace the poverty count source with the Illinois Department of Human Services count.
Network 21 concurs with EFAB's recommendation to use an unduplicated count of low-income students that would be collected by the Illinois Department of Human Services (IDHS) based on TANF (Temporary Assistance for Needy Families), food stamps, Medicaid and KidCare recipients rather than U.S. Census numbers, which are only updated every decade. The IDHS count provides a more reliable and accurate measure and can be updated on an annual basis to adjust for the high mobility and changing economic circumstances of families and school districts.
3. Revisit the poverty grant formula so it is more responsive to the needs of low-income students and the school districts serving them.
Network 21 is reviewing its recommendations for changes to the poverty grant formula to address concerns about the threshold at which poverty grant dollars can be accessed, the amount of funding per child and allocation related to the poverty concentration of a district.
The coalition concurs with EFAB that the first-year increase to any modification in the poverty grant program should not exceed $30 million through a phased-in approach.
4. Make the continuing appropriation for education permanent.
Network 21 strongly recommends that the continuing appropriation be made permanent consistent with the principle that schools must be guaranteed an adequate and stable revenue stream.
5. Extend the hold harmless provision for one year.
Until a more stable school funding stream is in place as part of a comprehensive school reform package, extending the hold harmless provision is justified.
6. Continue full funding of mandated categoricals.
Network 21 urges the State to continue its practice of the last several years of "fully funding" mandated categoricals, and to better assess the cost of these programs to school districts so that adequate funding can be provided.
The Coalition will continue to urge the U.S. Congress to fully fund federal special education mandates as part of the reauthorization of the Individuals with Disabilities Education Act (IDEA), if not sooner.
7. Extend the State's bonding authority for school capital projects by $1.5 billion.
The State moved forward substantially in helping school districts meet critical health and life safety needs, but has an appreciable way to go to meet $8 billion in capital needs identified by the State Board of Education. Based on letters of entitlement by the state, many local districts have either passed referenda in anticipation of school construction grants or plan to run referenda. With only $70 million left in the fund, new bonds should be sold.
8. Support legislation that would allow districts to access their full rates for life/safety work that is urgent or required.
Given that school construction funding will fall far short of the $8 billion in unmet needs, giving districts access to their property tax bases through amendment of the Property Tax Extension Levy Limitation Law is critical. This would not cost the state any money. In 2001, Senate Bill 22 (Rauschenberger, R-Elgin) passed both the House and Senate, was assigned to a conference committee, but was never finalized.
9. Support an inflationary increase for education technology to develop and implement clear state technology standards and benchmarks.
Technology can enhance teacher and administrative productivity and improve student outcomes. However, in the past three years, expenditures for education technology in the past three years have been stagnant. A modest inflationary increase for technology expenditures will keep school districts from losing further ground.
10. Support the phasing-in of voluntary universal pre-kindergarten for 3- and 4-year olds, consistent with the recommendations of the Early Childhood Education Task Force.
Major recommendations include establishing the Illinois Preschool Council, led by the governor's office, and laying the groundwork for Ready, Set, Grow: Illinois Preschool, so that the following critical elements can be incorporated: professionals in the classroom; a well-designed curriculum; responsiveness to family needs; strong parent involvement; community-designed; and a two-year program (for three- and four-year olds). A pilot program for six Illinois communities is recommended for FY 2003, with enabling legislation for a permanent program to be introduced in the 2003 legislative session. While costs for FY 2003 are anticipated to be modest, long-term financing mechanisms will have to be identified. Costs at the five-year mark are estimated to be $137 million to serve 61,000 children. The goal is to have full phase-in by 2012, serving 202,000 children.
11. Support legislation allowing inter-fund transfers and other budgetary rules that promote local flexibility and more effective resource allocation.
With state revenues for education scarce and property tax caps limiting local options, Network 21 urges support for legislation providing school districts the same budgetary flexibility, subject to the limitations of the property tax cap law, granted to the Chicago Public Schools in 1995. (Also see Network 21 Quality Working Group Recommendations: 'Administrative Flexibility.')
Long-term Recommendations
1. Enact a comprehensive plan for school funding and quality reform.
The Network 21 Coalition will work with its members, the Education Funding Advisory Board and other organizations around the state to develop alternative revenue options that reduce the reliance on the local property tax to fund public schools, develop an adequate and stable revenue stream for schools, and increase the state's share of public school funding. The University of Illinois Institute for Government and Public Affairs (IGPA) is conducting follow-up research on a school expenditure model that determines the impact of changes in the state aid formula, and new proposals for generating revenue to fund public schools, for all Illinois school districts. The model will help greatly in the understanding of changes to school finance and tax policy. Network 21 will simultaneously undertake a broad-based, coalition-building and advocacy campaign to persuade public officials, candidates for office and Illinois citizens of the need to introduce a long-term comprehensive school funding and quality reform package in the 93rd General Assembly (2003).