Inequity in Illinois
How Illogical School Funding Has Eroded Public Education

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A Report by People For the American Way Foundation

While there are many factors that determine the quality of a public school, inequitable and insufficient school funding is a major obstacle to improving public education for all children.

When it comes to funding public education, Illinois has a serious problem. Not only does the state limit its commitment to adequately fund public schools, but it also puts the burden of funding on local school districts. As a result, there is a wide disparity between wealthy and poor districts. Additionally, the lack of adequate funding has resulted in local school districts running up huge deficits and debts, forcing almost 80 percent of all school districts in Illinois to operate in the red today.

Because of its funding crisis and the way in which the state chooses to fund its public education, Illinois schools are struggling financially and are forced to make impossible choices that lower the quality of education they provide. Local districts have had to close schools, eliminate teaching positions, increase class sizes, eliminate support services like teachers' aides, and reduce extracurricular and athletic options for students. While these cuts are an effort to save money, they come at the cost of a quality education.

Since education in Illinois is already polarized by wealthy and poor districts, students in predominantly low-income schools are going to fall further behind. This inequity will severely impact the state in the long run, creating an ill-prepared, less-educated workforce.

Rather than addressing the funding problems and educational inequities that have plagued the
state's public schools for decades, the state continues to tragically turn its back on the majority of Illinois' school children.

Illinois' School Funding Debacle (from the Special Report)

For decades, Illinois has consistently under-funded its public schools. Illinois' constitution explicitly points out that "the State has the primary responsibility for financing the system of public education."1 However, Illinois only pays about 36 percent of all school expenses, far below the national average of 50 percent. The state relies heavily on local property taxes, and on average, local property taxpayers fund about 53 percent of school expenses. The remaining 10 percent or so comes from federal aid.2 (See Appendix A for more details.)

According to a survey conducted in the fall of 2003 by Education Week, when state officials were asked about their state's most pressing school finance issues, concerns over property taxes seemed to be an integral issue for several states. One respondent even explained that the "reliance on property taxes created perennial inequities and an overall issue of adequacy."3 This is certainly true of Illinois. The state's school funding system creates huge inequities between wealthy and poor school districts. The average per-pupil spending in some school districts is higher than $15,000 per student, while other school districts spend less than $5,000 per pupil.4 (See Appendix B for more details.)

While wealthier school districts use their strong property tax bases and other local revenues to fund quality public education, school districts in less-wealthy neighborhoods are forced to make do with fewer resources and less funding. Schools in these low property tax neighborhoods tend to have a higher poverty concentration, more minority students, and are often located in rural areas.5

Additionally, many school districts-faced with a low funding commitment from the state and an overall budget deficit6-have turned to referendum measures to provide schools with additional funding sources. Such measures usually face strong opposition and many fail, forcing school districts to cut critical programs and other support services for students.

Take for example, Thornton Township District 205. The school district is $60 million in debt and has a $9 million operating deficit. Voters recently refused a 70¢ increase in the district's educational tax rate that would have generated an additional $8.5 million in revenue each year. As a result, the school district was forced to cut costs by eliminating 90 teaching positions and 20 staff positions, and by eliminating athletic programs, extracurricular activities and other support services for students. The school district also could close down one of three high schools. These new cuts will save the district some $7.1 million, in addition to approximately $13 million in cuts that have already been made since 1998.7

Illinois' constitution calls for "an efficient system of high-quality public educational institutions and services. Education in public schools through the secondary level shall be free."8 Unfortunately, since the state's school funding methods are driven by local property taxes, only some school districts are able to provide their students with this promised high quality education.

In 1990, seventy of Illinois' school districts sued the state, challenging the constitutionality of the school funding formula. The plaintiffs argued that the average tax base in the wealthiest 10 percent of elementary schools was more than 13 times the average of that in the 10 percent of the poorest schools. Such disparities severely impacted a school's educational quality including teacher quality and academics.9 The case was heard by the state supreme court, which-while acknowledging that the present school funding scheme was unwise-felt that the issue should be handled by the state legislature and not the courts.10

The Illinois Supreme Court made its decision in 1996. Eight years later, Illinois still ranks near the bottom when it comes to equitably funding its schools. In fact, according to Education Week's annual "Quality Counts" rating, Illinois is the only state to receive a "F" grade for equalizing school funding across poor and wealthy school districts. In fact, the state has consistently been ranked with a "F" grade for funding equity since 2001 (prior to which the state was ranked "D.")11 In terms of funding its highest poverty school districts, the State Board of Education ranks Illinois 40th out of 50 states.12 As the business operations director at one school district puts it: "The problem really lies with the state's current funding formula for public education...the state does not fund the school adequately or equitably...."13

Understanding the Impact of the School Funding Gap-A Case Study

A 2002 study conducted by the U.S. General Accounting Office shows the funding disparity between two elementary school districts in Cook County, Illinois. While neither of the districts are the richest or poorest district in the county, the funding and resource gap between the two illustrates the problem of inequitable school funding in Illinois.

Glencoe, an affluent district north of Chicago, with very few minority and low-income students, spends about $10,935 per pupil. Comparatively, Midlothian, a middleclass, mixed-race district with a large number of minority and low-income students, spends only about $6,584 per pupil. Out of 115 elementary school districts, Glencoe ranks 20th from the top in terms of property wealth per student while Midlothian is ranked number 94.14

Illinois' tax system unfairly imposes a greater tax burden on low- and moderate-income families than on wealthier ones.15 As a result, the school property tax rate for Glencoe is 30¢ per dollar less than Midlothian's tax rate despite the fact that Glencoe's median household incomes and property wealth per student are three times higher than Midlothian's (see Table 1 for more
details.)

Because of its higher property wealth, Glencoe is able to provide its students with smaller class sizes, specialists in such subjects as art, music, technology and foreign languages, and has a better educated teaching force. According to the Midlothian superintendent, if the district had more money, it would spend it on smaller class sizes, increased building space, higher teacher salaries to attract and retain quality teachers, additional cafeterias, and increased gym space. (See Table 1 for a detailed breakdown in funding and resource allocation.)16

Illinois' School Funding Debacle

Understanding the Impact of the School Funding Gap-A Case Study

Consequences of a Poor School Funding System

Diversion of Critical Education Dollars

A Tax System that Gives to the Rich and Takes from the Poor

Conclusion

Appendices

Endnotes

Special Report: Inequity in Illinois: How Illogical School Funding Has Eroded Public Education (PDF)