Finance 102 - How are schools funded in Illinois

Belvidere CUSD#100

How are we funded?

School districts in Illinois receive funding from three main sources:

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• Local Revenue (53%)

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• State Revenue (40%)

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• Federal Revenue (7%)

Local Revenue

• Property Taxes – stable and dependable
• CPPRT – replaced old personal property tax
• Student Fees – registration, athletic, events
• Cafeteria Receipts – breakfast/lunch
• Tuition from other districts
• Interest on Investments
• County Wide Sales Tax (used for tax abatements)

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State Revenue

Evidence Based Funding Formula (replaces GSA)

• Establish an Adequacy Target for all Districts in the State using 27 indicators
• Measure each District’s local resources
• Add extra dollars depending on classification
• Base Funding Minimum for FY18 based on prior year payments
• Uses enrollment vs. attendance
• Opportunity for local communities to reduce local property tax burden
• $75 million tax credit pool
• Districts accountable via spending plan that will now be required
• Funding sunsets unless reauthorized
• Still subject to annual appropriation by legislature

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State Revenue continued

Categorical Payments

• Most special education now lumped in with Base Funding
• State ELL now lumped in with Base Funding
• Transportation remained outside Base Funding

Tier Funding possible if new dollars allocated

Technology Grants if dollars are appropriated

Federal Revenue

Disadvantaged Funding includes : ESSA Programs includes:

Title I programs (Reading and now Math) Improving teachers quality (Title II)

School Improvement Language acquisition (Title III) (Dual Language and

TPI)

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Other funding includes:

Special Education (IDEA) (Blended PK, Instructional/Resource, MLP, Life Skills)

CTE grants (Perkins - administered by CEANCI)

Technology (has not recently been funded)

Homeless (McKinney-Vento - very limited dollars available)

Safe & Drug Free schools (distributed to ROEs)

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