Senate Bill 16 An Inequitable Funding Proposal

General State Aid (GSA)

• Intended to provide general flexible state aid to schools in an equitable manner.

• General State Aid (GSA) represents approximately 66% of state funds for elementary and secondary education.

• GSA two-part formula that consists of the Foundation Grant ($6,119), the Poverty Grant. The grant includes multiple adjustments, the largest of which is the PTELL Adjustment.

• 600+% growth in Poverty Grant Funding• Rise/Fall of PTELL Adjustment• Stagnant/Slow Growth in Foundation Support

Growth in Education Funding

FY03 FY05 FY07 FY09 FY11 FY13 FY15 $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$2,502

$2,845

$2,807 $2,830

$2,533 $2,509

$2,872

$199 $357

$624 $789

$696

$502

$202

$388 $459

$675

$941

$1,349

$1,774

$1,978 Foundation Grant

PTELL Adjustment

Poverty Grant

Proration History

FY12 - 95% FY13 - 89% FY14 - 89% FY15 - 89% $3,800,000,000

$4,000,000,000

$4,200,000,000

$4,400,000,000

$4,600,000,000

$4,800,000,000

$5,000,000,000

$5,200,000,000

$

4,6

79

,16

2,0

48

$

4,8

04

,92

8,8

70

$

5,0

04

,31

4,3

07

$

5,0

79

,24

7,7

87

$

4,4

48

,10

4,5

14

$

4,2

86

,75

2,5

00

$

4,4

42

,19

8,2

60

$

4,5

22

,53

0,5

00

GSA Entitlement

Actual Appropria-tion

Senate Republican’s Report on Education Funding Shows Current Law Heavily Favors Chicago

Senate Bill 16 - Intent• SB 16 cherry-picked recommendations of the Senate

Education Funding Advisory Committee (EFAC)

• Proposed changes are intended to equalize education funding using a school district’s ability to pay

• Currently, about 40% of education funding is equalized through the Foundation Grant

• EFAC recommendations would equalize 96% of education funding

• SB 16 equalizes 83% of funding

Senate Bill 16 - Flaws• SB 16 reallocates education funding to create winners and

losers

• SB 16 contains a generic, one-size-fits-all, way to determine local wealth

• SB 16 compromised EFAC’s report by not fully following its recommendations

• Includes a pension pick up for Chicago Teachers ($200 million in State Aid to Chicago)

• Maintains status quo on certain Block Grants that heavily favor Chicago (extra $145 million to CPS through these block grants)