Report examines school funding, proposes school reforms that would empower parents and students over politicians

October 3, 2013

As Illinois’ gubernatorial election is underway, candidates will no doubt promise to funnel more money into Illinois’ public schools. But a study released today by the Illinois Policy Institute shows that the real issue is not how much money is going to public education, but who controls the flow and distribution of money spent on education.

Since 1993, education spending in Illinois has grown by nearly 200 percent, and now stands at $28.7 billion. But which schools get how much money is controlled by politicians – not parents. The Institute’s report also found that loopholes, exemptions and politics have created an unfair and broken school funding system.

“Illinois’ current education funding system is not about what’s best for students,” said Ted Dabrowski, lead author of the report and vice president of policy at the nonpartisan Illinois Policy Institute. “Instead, it’s about who controls the flow and distribution of money. As long as politicians and special interests direct the system, it won’t be about accountability – it will be about dollars and who controls them.”

Here are some highlights from the Institute’s report, which is titled “Understanding Illinois’ broken education funding system; a primer on General State Aid”:

  • $28.7 billion in local, state and federal tax dollars was spent on preK-high school public education in Illinois in fiscal year 2012.
  • Education spending in Illinois has increased by nearly 200 percent since 1993, and now stands at an average of $13,748 per-student in local, state and federal funding. When adjusted for inflation, education spending has grown by more than 73 percent over this same period. Meanwhile, student population during this time has only increased by 11 percent.
  • General State Aid is the single-largest education appropriation by state government. In 2013, the state appropriated $4.8 billion in general state aid.
  • As recently as 2000, the vast majority of Illinois general state aid spending was distributed to school districts that demonstrated “financial need.” Today, only 50 cents out of every $1 in general state aid spending goes to districts that demonstrate need; the other 50 cents goes to school districts using special subsidies, loopholes or carve-outs to drive money to their districts.
  • The formula for calculating poverty among the student population has changed. In 2000, for example, 18 percent of downstate students were classified as living in poverty. Under new standards used today, 48 percent of downstate students are classified as poor. Does this mean there are dramatically more poor students? No; the new standards allow students who wouldn’t have been considered “poor” in 2000 to be considered living in poverty today. The more students in poverty, the more money the school district receives.

Before joining the Illinois Policy Institute, the lead author of this report, Ted Dabrowski, served as a lead consultant to the Education Committee for Gov. Quinn’s Taxpayer Action board. He said the only way for Illinois to fix the corrupt education-funding system is to give parents – not politicians – control over their children’s education and the money spent on their children’s education.

“The problems uncovered in this report are indicative of a system that has been manipulated and corrupted beyond repair. The decisions and money that control the future of Illinois students need to be taken out of the hands of the politicians who have created these problems,” Dabrowski said. “Parents need to be given the freedom and the funds to choose where their children can get the best education and have the most opportunities.”

TAGS: general state aid