{"id":1999,"date":"2024-05-21T18:07:17","date_gmt":"2024-05-21T18:07:17","guid":{"rendered":"https:\/\/stand.org\/illinois\/?p=1999"},"modified":"2024-05-21T18:27:11","modified_gmt":"2024-05-21T18:27:11","slug":"confused-about-whether-illinois-owes-chicago-public-schools-1-billion","status":"publish","type":"post","link":"https:\/\/stand.org\/illinois\/our-stories\/confused-about-whether-illinois-owes-chicago-public-schools-1-billion\/","title":{"rendered":"Confused about\u2026 whether Illinois owes Chicago Public Schools $1 billion?"},"content":{"rendered":"\n

Evidence-Based Funding<\/strong><\/p>\n\n\n\n

\n
\n

If the Evidence-Based Funding (EBF) Formula were fully funded, Illinois schools would see about $4.5 billion more in State funds, of which around $1 billion would go to CPS. When EBF passed, there was a stated intention to reach full funding by 2028 and a somewhat contradictory establishment of a $350 million \u201cMinimum Funding Level\u201d that wouldn\u2019t possibly enable us to reach that full-funding-in-ten-years goal.<\/p>\n\n\n\n

It\u2019s not just Chicago \u2013 more than 600 districts are underfunded\u2026and FY25 \u201cwill be a \u2018bloodletting\u2019 for the education industry<\/a>\u2026 as it weathers the financial shock of the funding cliff.\u201d So, an increase to the $350 million Minimum Funding Level would be especially welcome in this year\u2019s budget. CPS and<\/em> the vast majority of Illinois\u2019s other school districts need the infusion of EBF this year more than ever.<\/p>\n<\/div>\n\n\n\n

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\"Political<\/figure>\n<\/div>\n<\/div>\n\n\n\n

How much of an increase? Of course, a $4.5 billion increase is out of reach in just one year. But Illinois\u2019s students cannot wait another generation to have adequately funded public schools. The $350 million floor loses its buying power every year as the cost of educating students increases. Even if we just kept pace with inflation, that $350 million from 2018 would be $437 million today. The Funding Illinois\u2019 Future Coalition is asking for $550 million<\/a>.<\/p>\n\n\n\n

Successful Outcomes<\/strong><\/p>\n\n\n\n

One more thing: just in case you\u2019re wondering whether CPS and other Illinois districts are putting their resources to good use, recent research on learning loss recovery found that Illinois is one of just three states to have surpassed its pre-COVID reading scores<\/u><\/strong>. It found CPS to have significantly outperformed other large districts across the country. The Educational Opportunity Project at Stanford University has created searchable tools<\/a> to dig deeper into where those achievement gains were greatest. The scatterplot below shows 2022-2023 achievement gains in reading by districts\u2019 low-income rates. The larger the circle, the larger the enrollment of the district. Chicago is highlighted, but there are lots of other Illinois districts beating the odds for their students and closing the learning loss gap (Rantoul, Cicero, East St. Louis, Steger, Crete Monee, Peoria, Dolton, Cahokia\u2026 ). Go poke around and find your district schools!<\/p>\n\n\n\n

\"Scatterplot<\/figure>\n\n\n\n

Teacher Pension Funding Inequities<\/strong><\/p>\n\n\n\n

I\u2019d be remiss if I ended this blog without discussing the hidden inequity in Illinois\u2019 school funding structure. Teacher pensions are inequitably funded on two fronts: first, Chicago vs. the rest of IL school districts, which have historically been funded very differently. And secondly, underfunded school districts, which generally have lower salaries and thus, benefit less than better funded districts when the state picks up everyone\u2019s employer pension tab.<\/p>\n\n\n\n

Chicago teachers participate in their own pension fund, not in the state\u2019s Teachers\u2019 Retirement System. Historically, CPS has paid the employer costs for teacher pensions that the State covered for all other districts. Evidence-Based Funding provided a partial fix for this inequity: now the school funding formula pays the current employer costs for Chicago teacher pensions.<\/p>\n\n\n\n

\n
\n

However, CPS is still covering its \u201clegacy costs\u201d (or you could call it \u201cdebt\u201d from past years of not keeping up with current payments), which the State continues to fund for all other districts. The amount CPS pays in legacy costs is deducted from the local resources counted for school funding purposes, which is a nod toward equity, but Chicago taxpayers remain on the hook for costs that the State covers for everyone else. (And CPS only netted $23 million from EBF in FY24, so that \u201cnod toward equity\u201d isn\u2019t a very substantial one.)<\/p>\n\n\n\n

How much of an inequity is this? Well, compared to \u201cTier 4\u201d district under EBF (that is, one with at least 100% of adequate funding), CPS sees about $4,000 less per pupil and districts with less than 70% of the funding they need see about $1,500 less per pupil:[1]<\/a><\/p>\n<\/div>\n\n\n\n

\n
\"Bar<\/figure>\n<\/div>\n<\/div>\n\n\n\n

\u201cSees\u201d is probably not the right choice of word \u2013 because schools don\u2019t see<\/em> it at all. It comes from the State budget \u2013 right off the top. It\u2019s invisible to schools. Especially the legacy costs. For the most part, the State pays the current employer costs of teacher pensions. But the debt? The State failed to keep up with pension costs, the debt stacked up, and it has caught up to us. Not because teacher pensions are especially generous. They\u2019re not. Particularly for newer teachers hired after 2011. It is, nevertheless, a large chunk of the state budget.<\/p>\n\n\n\n

***<\/p>\n\n\n\n

There\u2019s no easy answer to any of this. Today\u2019s leaders didn\u2019t create the problem; they inherited it. But we owe it to our children \u2013 in Chicago, the suburbs, and downstate \u2013 to figure it out and fully fund our public schools as fast as we reasonably can.  A $550 million increase to Evidence-Based Funding in FY25 would be a good place to start.<\/p>\n\n\n\n

P.S. \u2013 If you are a legislator who agrees that $350 million for EBF is a floor not a ceiling, you can share your support by taking the pledge here.<\/a><\/strong><\/p>\n\n\n\n

\n\n\n\n

[1]<\/a> Calculated using data from: our TRS FOIA for pensionable payroll by school district received November 2023, Commission on Government Forecasting and Accountability state retirement systems report December 2023 actuarial projections certifying the contribution rate of 48.7%, Chicago Teachers\u2019 Pension Fund annual financial report of state paid normal cost minus the amount to defray retiree health care, and student enrollment data from the Illinois State Board of Education\u2019s FY24 Full EBF Calculation. We included CPS\u2019s approximate EBF amount gained through the unfunded liability offset in its local resource calculation as state payment toward CTPF normal cost in this calculation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Evidence-Based Funding If the Evidence-Based Funding (EBF) Formula were fully funded, Illinois schools would see about $4.5 billion more in State funds, of which around $1 billion would go to CPS. 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