Illinois Education Board Approves $10.9 Billion Budget Request

The Illinois State Board of Education has approved a budget request of $10.9 billion for the upcoming fiscal year, reflecting the state’s challenging financial landscape. The request, which represents a slight decrease from the current budget of just over $11 billion, includes minimal increases in K-12 education funding. A significant factor contributing to this decrease is the transfer of funding for early childhood education, amounting to nearly $750 million, to the newly established Department of Early Childhood, a move advocated by Gov. J.B. Pritzker in 2024.

The budget request proposes a $350 million increase in the Evidence-Based Funding (EBF) formula, which was established by law in 2017. This increase is essential to meet the minimum funding requirements aimed at ensuring that all school districts are funded to at least 90 percent of their adequacy target. Of the proposed increase, $300 million is allocated for direct educational expenses, while $50 million is intended for property tax relief grants for specific high-tax districts.

Progress and Challenges in Funding Adequacy

The upcoming fiscal year, beginning on July 1, 2027, marks the tenth anniversary of the EBF program. When it was introduced in fiscal year 2018, a staggering 168 out of Illinois’ 852 school districts were funded at less than 60 percent of their adequacy target. Currently, none of the districts fall below this threshold, yet 48 districts remain under 70 percent, and 532 districts are still below the 90 percent target. The proposed funding increase would elevate the total EBF funding to just under $9.3 billion for fiscal year 2027. However, according to data from the Illinois State Board of Education (ISBE), an additional $3 billion would be necessary to ensure all districts achieve at least 90 percent of their adequacy target.

In addition to EBF funding, the budget request seeks a $151 million or 13 percent increase in mandated categorical (MCAT) reimbursements. These reimbursements cover essential non-classroom expenses, including transportation and special education costs, which are not included in the EBF formula. Due to ongoing budget constraints, the state has been funding only a prorated share of these costs in recent years. For instance, state funding currently covers just 60 percent of the transportation costs for students attending special education programs, a drop from 71 percent in fiscal year 2024.

Budget Hearings and Revenue Projections

Before finalizing the budget request, the Illinois State Board of Education conducted a series of public hearings to gather input from school officials and stakeholders. The agency also reviewed economic analyses and revenue projections from both the Governor’s Office and the General Assembly. In October, the Governor’s Office of Management and Budget reported that state revenues are expected to fall below previous estimates, forecasting a $267 million deficit for the current fiscal year and a projected $2.2 billion deficit for the following year unless measures are taken to enhance revenues or reduce spending. This decline is largely attributed to changes in federal tax law enacted by Congress as part of the “One Big Beautiful Bill Act,” which is anticipated to reduce corporate income tax revenue.

Conversely, the General Assembly’s Commission on Government Forecasting and Accountability expressed confidence in the state meeting its revenue targets for the current fiscal year. Nevertheless, the Commission highlighted uncertainty in the future due to the implications of the recent federal tax law changes.

The budget request by the Illinois State Board of Education underscores the ongoing challenges faced by the state in funding education while managing fiscal constraints. As discussions continue, stakeholders will be keenly observing how the proposed measures will affect educational resources across Illinois.