{"id":43876,"date":"2026-08-10T09:38:36","date_gmt":"2026-08-10T14:38:36","guid":{"rendered":"https:\/\/www.thexradio.com\/news\/?p=43876"},"modified":"2026-08-10T09:38:36","modified_gmt":"2026-08-10T14:38:36","slug":"school-funding-stretched-thin-as-costs-rise-corporate-revenue-source-shrinks","status":"publish","type":"post","link":"https:\/\/www.thexradio.com\/news\/local-news\/43876-school-funding-stretched-thin-as-costs-rise-corporate-revenue-source-shrinks\/","title":{"rendered":"School Funding Stretched Thin as Costs Rise, Corporate Revenue Source Shrinks"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-right\"><a href=\"javascript: window.print()\" class=\"pdfprnt-button pdfprnt-button-print\" target=\"_self\" ><img decoding=\"async\" src=\"https:\/\/www.thexradio.com\/news\/wp-content\/plugins\/pdf-print\/images\/print.png\" alt=\"image_print\" title=\"Print Content\" \/><span class=\"pdfprnt-button-title pdfprnt-button-print-title\">Print<\/span><\/a><\/div><p>ILLINOIS SUPERINTENDENT OF EDUCATION DR. TONY SANDERS SPEAKS AT THE GOVERNOR&#8217;S MANSION IN SPRINGFIELD IN MARCH 2026 (<em>CAPITOL NEWS ILLINOIS PHOTO BY JENNA SCHWEIKERT)<\/em><\/p>\n<p><i><span style=\"font-weight: 400;\">Despite $350M funding increases, overall \u2018adequacy gap\u2019 grows for 3<\/span><\/i><i><span style=\"font-weight: 400;\">rd<\/span><\/i><i><span style=\"font-weight: 400;\"> straight year\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">By PETER HANCOCK<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Capitol News Illinois<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><a href=\"mailto:phancock@capitolnewsillinois.com\"><span style=\"font-weight: 400;\">phancock@capitolnewsillinois.com<\/span><\/a><\/p>\n<p><b>Article Summary<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Illinois State Board of Education released details Friday of how it will distribute $9.3 billion in Evidence-Based Funding to public schools for the upcoming academic year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That\u2019s a $350 million increase above last year\u2019s funding. But it is not enough to keep pace with rising costs and declining revenue from certain corporate and business taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The figures show fewer districts will be funded at or above 90% of their adequacy target while the overall \u201cadequacy gap\u201d in school funding will grow to $6.8 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the current rate of annual increases in K-12 funding, ISBE estimates it will take at least 14 years to bring all districts up to adequate funding levels.<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">This summary was written by the reporters and editors who worked on this story.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">SPRINGFIELD \u2013 Despite a $350 million increase in base funding for public schools this year, Illinois is falling further behind in its quest to bring all school districts up to adequate funding levels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s according to new data from the Illinois State Board of Education, which announced Friday the <\/span><a href=\"https:\/\/www.isbe.net\/Pages\/ebfdistribution.aspx\"><span style=\"font-weight: 400;\">details of how it will distribute<\/span><\/a><span style=\"font-weight: 400;\"> $9.3 billion in Evidence-Based Funding dollars for public schools.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the third consecutive year, the number of districts being funded at or above 90% of their \u201cadequacy target\u201d will fall while the overall \u201cadequacy gap\u201d \u2014 the amount of additional money it would take to bring all districts up to full adequacy \u2014 will increase.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the new distribution figures, only 292 of the state\u2019s 850 elementary, high school and unit school districts will be funded at 90% or more of their adequacy target in fiscal year 2027, down from a peak of 327 in fiscal year 2024.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the overall adequacy gap this year will total $6.8 billion, up from $4.8 billion three years ago.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">State Superintendent of Education Tony Sanders said that\u2019s primarily due to three factors: rising costs; a decline in one source of corporate tax revenue; and an increase in the number of students identified as \u201clow-income.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those factors aside, however, Sanders insisted the Evidence-Based Funding formula is serving its purpose.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cEvery school district has received more school funding each year since EBF was enacted,\u201d he said Friday during a media briefing about the numbers. \u201cIn other words, EBF is working.\u201d\u00a0<\/span><\/p>\n<p><b>Outside factors<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Sanders said one of the biggest factors affecting school funding is a rapid decline since 2024 in a revenue stream known as \u201ccorporate and personal property replacement tax,\u201d or CPPRT. That\u2019s a tax the state began levying in 1979 on certain business entities. It replaced a tax on personal property such as machinery and equipment that was phased out under the 1970 Constitution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The revenue is collected by the state but distributed to local units of government, including school districts, that used to receive personal property tax revenue. It is used in the EBF formula to calculate how much revenue a district is able to raise on its own and, thus, how close it is to meeting its adequacy target.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CPPRT revenue spiked between 2022 and 2024 amid the hyperinflation that occurred immediately following the COVID-19 pandemic, which was a boon for school districts that receive that money. But it has dropped precipitously since then, resulting in many districts moving further away from their adequacy target, Sanders said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He also cited rising labor costs as another factor affecting schools. That includes increases both in the salaries teachers are paid and the number of teachers employed in Illinois schools.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis data demonstrates that in Illinois we are paying our teachers better, which we need to be doing,\u201d he said. \u201cThe increases in salary costs, though, do push districts further away from adequacy.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, Sanders said, the state started using a new method this year of counting low-income students in each district. That matters under the EBF formula, he said, because students from low-income households typically need more resources and therefore cost more to educate.<\/span><\/p>\n<p><b>Moving target<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Sanders said the EBF formula is designed to take into account changing circumstances like rising costs and demographic shifts. As a result, each district\u2019s adequacy target is always a moving figure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The net effect of all the changes this year, he said, is that most districts moved further away from their adequacy target, as did the state as a whole.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the data, the total statewide adequacy target this year \u2014 the total of all local, state and federal revenue it would take to adequately fund all schools in Illinois \u2014 grew $2.4 billion this year, to $31.5 billion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cLet me reemphasize, though, that this is how EBF is designed to work,\u201d Sanders said. \u201cIt is responsive to changing resources and increasing student needs.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Robin Steans, executive director of Advance Illinois, an education advocacy group that pushed for passage of the EBF formula in 2017, agreed that the formula is working and that schools are still far ahead of where they were before the adoption of EBF.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThere is still more dollars available, particularly for all districts and for districts that are in the most need,\u201d she said. \u201cAnd we&#8217;re closing equity gaps as we go. It&#8217;s just we got an artificial bump (from CCPRT) and now that artificial bump is going away.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But Stacy Davis Gates, president of the Illinois Federation of Teachers and the Chicago Teachers Union, said in a statement that the figures show lawmakers need to put more money into the formula above the minimum $300 million per year called for in the statute just to keep up with rising costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;Today&#8217;s report should serve as a wake-up call,&#8221;\u00a0she said. &#8220;A child entering kindergarten today will graduate from a high school that is still underfunded. Our students are about to report to crumbling buildings, without the food, special education support, and transportation that they need to meet the minimum of a functional school day, let alone the quality school day our students deserve.\u201d \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sanders, however, said he does not intend to ask lawmakers for larger annual increases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe state board of education&#8217;s commitment has always been to request the $300 million that statutorily requested for evidence-based funding,\u201d Sanders said. \u201cIt\u2019s really a function of the General Assembly and the governor to determine if there&#8217;s additional resources that could be put towards public education. But we will continue our annual ask of $300 million in tier funding every year.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other $50 million that\u2019s part of the annual increase goes to property tax relief grants.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/capitolnewsillinois.com\/\"><i><span style=\"font-weight: 400;\">Capitol News Illinois<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">\u00a0is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.\u00a0\u00a0<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ILLINOIS SUPERINTENDENT OF EDUCATION DR. TONY SANDERS SPEAKS AT THE GOVERNOR&#8217;S MANSION IN SPRINGFIELD IN MARCH 2026 (CAPITOL NEWS ILLINOIS PHOTO BY JENNA SCHWEIKERT) Despite $350M funding increases, overall \u2018adequacy [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":43887,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[19],"tags":[],"class_list":["post-43876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>School Funding Stretched Thin as Costs Rise, Corporate Revenue Source Shrinks - Effingham&#039;s News and Sports Leader, 979XFM and KJ Country 102.3<\/title>\n<meta name=\"description\" content=\"Effingham&#039;s News and Sports Leader\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thexradio.com\/news\/local-news\/43876-school-funding-stretched-thin-as-costs-rise-corporate-revenue-source-shrinks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"School Funding Stretched Thin as Costs Rise, Corporate Revenue Source Shrinks - 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