Funding Fundamentals:
Senate Bill 1
October, 2015
How Senate Bill 1 works
Senate Bill 1 streamlines the current funding
system to create a single equitable formula
Percent of state funding
To create an integrated formula, Illinois would combine all GSA and most categoricals1 and allocate
according to a single, transparent, integrated formula
100
Chicago block
80
Categorical
60
Supplemental
grant
40
20
0
Categorical
Integrated
formula
GSA
formula
Current system
Integrated formula
An integrated formula would ensure distributions are consistent across funding streams
1.See backup page for additional detail on categoricals included in formula
Source: ISBE 2014 Budget Book, ISBE FY13 State Disbursements
Categorical
The formula creates district-specific foundation
levels based on the needs of each districts’ students
Funding for need
will increase with
base amount
Adequacy study
will define a
district-by district
base amount
Base Amount
Current base amount is set by
current foundation levels
Additional
Student Need*
*Need includes poverty,
special education, English
language learners, etc.
Target District
Foundation Level
Additional state funding will better
serve all students with the correct
formula in place for distribution
SB1 sets the base amount based on current state funding levels. An adequacy study will define the base
amount that is truly needed to provide an adequate education.
The formula uses weights to calculate districts’
needs that are based on the students a district serves
Student Need
Additional Weight (above base amount)
Low-income
25 percent to 75 percent per student based
upon concentration of poverty
(See next slide for further explanation)
Special Education
(Students who need exceptional levels of service
will be funded separately)
100 percent
English Language Learning
20 percent
K-8 Gifted and Talented
1 percent
High School Outcomes:
AP, Dual-credit courses
2 percent
High School Outcomes:
Career Pathways Completers
3 percent
6 – 12 percent
Transportation
Source: Illinois School Funding Reform Act
(range is based upon density/square mile and type of
transportation)
Senate Bill 1 distributes dollars based on student needs and
districts’ available resources
1
The minimum level of funding for each
district will be determined by its students' needs
2
The state 2will contribute the difference
2
between what a district needs and what it can pay
Districts with few
local resources
Base Amount
Current base amount is set by
current foundation levels
Additional
Student Need*
*Need includes poverty,
special education, English
language learners, etc.
Districts with greater
local resources
State contribution
Local contribution
Additional state funding will better serve all students with
the correct formula in place for distribution
The Impact of Senate Bill 1
Most districts gain state funds under SB1,
especially Illinois’ neediest districts.
8
SB1 targets dollars to Illinois’
underrepresented students.
Dollars per pupil
Change in per pupil state funding under Senate Bill 1 with 92M adequacy grant,
compared to the current system.*
400
350
+369
300
+318
+312
250
+288
200
150
100
50
0
Black average
Latino average
ELL average
Low-income average
Note: This graph compares Senate bill with a $92M adequacy grant to FY14 disbursements at 89% appropriation.
Source: FY 14 Model Requiring $92 Million in New Funding for Adequacy Grant,” Illinois State Board of Education, 2015; Illinois State Report Card, ISBE, 2014; Financial Watch list, ILearn, 2014.
Advance Illinois analysis.
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SB1 would better target any new dollars to
underrepresented students.
Dollars per student
Underrepresented students get more under SB1 with an added $500M, than
they would under the current formula with an added $560M.
800
Current System + 560M
SB1 + 500M
700
675
600
588
578
500
400
559
413
361
300
374
365
200
100
0
Black
Latino
ELL
Low-Income
Note: This graph compares Senate bill with a $50-M additional to fully funded FY14 disbursements (which would cost the state roughly $560M. This graph assumes the $560 added to the current
system would go into the GSA formula. If some of the money went to categorical funds, underrepresented students would see receive less.
Source: FY 14 Model Requiring $500 Million in New Funding for Adequacy Grant,” Illinois State Board of Education, 2015; Illinois State Report Card, ISBE, 2014; Financial Watch list, ILearn, 2014.
Advance Illinois analysis.
10