Area schools need not worry any longer about receiving state funding for the 2017-18 school year after Gov. Bruce Rauner signed a new school funding formula into law on Thursday.

The law revamps the state’s formula for distributing aid to Illinois school districts, using an evidence based model to prioritize poorer school districts. Legislative leaders recently held closed-door meetings to outline a compromise before the House and Senate voted in favor of Senate Bill 1947.

Monroe-Randolph Regional Superintendent Kelton Davis said as many as four general state aid payments could go out to schools this month to make up for August.

“I’m excited that we can start putting this behind us and continue the focus on educating our kids,” he said.

The formula was passed before the Illinois State Board of Education could calculate how much each school district in the state would receive in general state aid. Until those numbers are determined — which will take a few months — schools will receive the same payment amounts as in fiscal year 2017 and be reimbursed any differences later, Davis said. 

Without a revamped funding formula, school districts could not begin receiving state aid payments. A hold harmless provision ensures no district will receive less under the new formula. 

Other items included under the law are $400 million for classroom costs and teacher pensions for Chicago Public Schools, $75 million in tax credits for those who donate scholarship money to private and parochial schools, and a provision allowing CPS to further raise property taxes to help with pension costs.

Local legislator statements
Jerry Costello II (D-Smithton) said he voted “no” on the new school funding formula because of the tax breaks for private and parochial school donations.

“While I have been a supporter of education funding reform, I couldn’t support giving millions of dollars of tax breaks for private schools that do not face the financial burdens public schools in Southern Illinois do,” he said. “This bill also creates a $75 million hole in the budget. Where will this money come from?

“There aren’t designated funds right now,” he added. “That’s why I ask where will the money come from.”

Costello also said the money CPS is receiving for classroom costs and teacher pensions, and the additional money coming from the ability to increase property taxes, gives Chicago more money than in Senate Bill 1. Rauner vetoed SB1 because he said it diverts too much money to CPS.

The formula did receive support from State Sen. Paul Schimpf (R-Waterloo), who said it is “far from perfect.”

“Although SB 1947 was far from perfect — and no compromise ever is — I voted for it because of three reasons,” he said. “First, SB 1947 puts us on a pathway toward equitable funding by eliminating the Chicago Block Grant that gave Chicago extra dollars before any monies were distributed to Southern Illinois schools. 

“Second, SB 1947 removes almost all of the unprecedented Chicago teacher pension payments that were included in SB1. Lastly and most important, SB 1947 provides the critical K-12 education funding to ensure that all of our schools in the 58th Senate District will remain open.”

School districts respond
Meanwhile, Waterloo school superintendent Brian Charron is skeptical the formula will actually change the system the way politicians have proposed.

“I am pleased that agreement has been reached regarding a budget for K-12 education, but I am unsure what to expect in regard to the new formula for calculating state funding,” he said. “It has been eight-plus years since schools have received in a fiscal year what the state has promised when budgets were prepared. 

“I remain hopeful that past practice will end, but I’ll believe it when we see it… and not a second sooner.”

Additionally, Columbia school superintendent Dr. Gina Segobiano said she does not foresee her district receiving any more than last school year.

“As far as the General Assembly and the Governor approving the new evidence based funding model for school districts, I know a lot of hard work went into devising the model to address equity across our diverse state and to ensure all school districts would not receive less state funding from the prior year with the neediest school districts receiving additional funds if allocated,” she said. “For Columbia, though final numbers have not been released, I am counting on the district receiving the same amount of state revenue as Fiscal Year 2017.”

Touted as a compromise
Still, Republicans and Democrats alike are boasting their success in ensuring public schools could remain open for the school year. Rauner’s office stated that the law puts children first by making lasting changes to school funding.

“The passing of this historic legislation was no easy feat, but it’s a reminder of the good things we can accomplish when we put politics aside and focus on what’s important: our children and our future,” Rauner said. “I am proud to sign this bill, which will bring more money to school districts based on the needs of the children, guaranteeing that all Illinois students have access to adequate education funding.”

House Speaker Michael Madigan (D-Chicago) referred to the new law as a sign that legislators can achieve compromise.

“Today is a victory for our schools, our students and our communities,” Madigan said. “It’s also a victory for compromise that I hope we continue to build on. By working together and in good faith, even when we do not totally agree, Democrats and Republicans have created a plan where every school district wins. 

“As we move forward, it will be vitally important that the legislature remain vigilant in protecting the funding mechanism passed and that we ensure all students throughout the state are receiving the support they need to be successful.” 

Illinois State Superintendent of Education Dr. Tony Smith also hailed the formula as a major step forward.

“We are celebrating progress today,” he said. “The evidence-based funding formula takes a historic step toward equity and ensuring every student gets the resources they need for academic excellence and postsecondary success.”