General State Aid: The Foundation Level and Poverty Grants
Each year the Illinois legislature sets a minimum per-pupil expenditure, known as the foundation level, for the next school year. This foundation level plugs into a formula that determines general state aid (GSA)—the amount of state support a school district will receive. The formula distributes funds based on:
- The ability of a school district to pay: Districts with the least ability to generate school revenues through their local property tax base receive greater aid. (Note: The formula assumes a minimal tax effort).
- The number of students in the district- This is based on the average daily attendance (ADA) in the district-- the higher the ADA , the more funds a district will receive.
- Poverty concentration of students- Districts with students in poverty receive additional funding, often referred to as the poverty grant—the greater the concentration of poverty in the district, the more the district receives per low-income student.
GSA is the major component of the state’s share of education funding. GSA provides critical state funds to school districts and is an effective method of distributing resources to districts with the greatest need. Illinois continues to have one of the worst records in the nation for providing adequate school funding, having the 49th lowest state share of school funding and the largest disparities in the nation in funding between its school districts. Increasing GSA would help ensure all Illinois schools have the necessary funds to improve and sustain academic achievement, through efforts such as providing smaller class sizes, updated textbooks, and improved teacher training and quality. Providing funding through GSA streamlines funding for school districts, alleviating administrative costs and processes associated with many of the categorical programs.
Adequacy in School Funding
Politics and the state’s budget situation have often superseded any other factor in determining the state’s foundation level. However, in 2001, the state, through the Education Funding Advisory Board (EFAB), sought to determine the actual cost of providing an adequate education by looking at fiscally efficient, high performing school districts throughout the state. Hiring a nationally recognized education research firm, Augenblick & Myers, the state found that school districts where at least two-thirds of students perform at grade level spend a minimum of $5,665 per pupil on basic education expenses. This recommendation was updated in 2005 to $6,405 per pupil.
However, EFAB has not updated the recommended foundation level since 2005. Simply adjusting for inflation using the Employment Cost Index, it is estimated to be $6,974 for fiscal year 2008.