K-12 Education

Volume XI of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy. The update for the FY 2026 Enacted budget uses the shortfall from the ISBE EBF calculations for FY 2026 (released in August of 2025). The Report looks at four different funding scenarios and explains fluctuations in local revenue for districts in the past few years. The analysis includes the full funding model based on the current minimum increase of $300 million annually both with and without considering inflation, if the state were to up the funding to $500 million annually, as well as the annual amount to fund the EBF by FY 2027 as the statute requires.

Volume X of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy. This continuation uses the shortfall from the ISBE EBF calculations for FY 2025 (released in August of 2024). The new release maintains the four scenarios, including the full funding model based on the current minimum increase of $300 million annually both with and without considering inflation, if the state were to up the funding to $500 million annually, as well as the annual amount to fund the EBF by FY 2027 as the statute requires.

The aggregate Personal Property Replacement Tax ("PPRT") revenue for all school districts has had an unprecedented surge once again in FY 2024, following the notable increase in FY 2023, outlined in Volume II of this Report, "CPPRT and K-12 Education Funding in Illinois." Between FY 2022 and FY 2024, PPRT has hit a record increase of 255 percent. While that revenue is a welcome addition to school district resources, it is projected that it will decline back to its historical levels in the FY 2025 EBF calculations. This Report takes a look at how the Personal Property Replacement Tax is a relatively odd revenue source that allocates revenue to school districts in accordance with their respective collections of Personal Property Tax revenue in either 1976 or 1977 and how this revenue source has impacted Adequacy Gaps and therefore New Tier Funding across the state.

Volume IX of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy. Volume IX uses the proposed Fiscal Year 2025 General Fund Budget appropriations for the Evidence-Based Funding formula, but uses a projected shortfall based on the ISBE EBF calculated shortfall for FY 2024 (released in August of 2023). The new release maintains the four scenarios, including the full funding model based on an increase of $500 million annually using Scenario 2: Funding the EBF on a Fully Inflation-Adjusted Basis, By Making a Nominal Minimum Target Level Increase Annually.

Volume VIII of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy, which aligns with the Illinois State Board of Education’s methodology. Volume VIII uses the new tier funding and the calculated shortfall based on the ISBE EBF calculated shortfall for FY 2024 (released in August 2023) as well as references Illinois Department of Revenue Corporate Personal Property Replacement Tax from FY 2019-FY2023.

Volume VII of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy, which aligns more closely with the Illinois State Board of Education’s methodology. Volume VII uses the propsed Fiscal Year 2024 General Fund Budget appropriations for the Evidence-Based Funding formula, but uses a projected shortfall (similar to that of Volume V), based on the ISBE EBF calculated shortfall for FY 2023 (released in August 2022). The new release maintains the four scenarios but adds the full funding model based on an increase of $500 million annually using Scenario 2: Funding the EBF on a Fully Inflation-Adjusted Basis, By Making a Nominal Minimum Target Level Increase Annually

Between FY 2022 and FY 2023, aggregate Personal Property Replacement Tax ("PPRT")revenue for all school districts increased by a record 76 percent. As things stand today, more record growth in PPRT revenue is projected for FY 2024. That revenue is a welcome addition to school district resources, however, if the projections for FY 2024 prove to be accurate, it will mean that collectively over the FY 2020 through FY 2024 sequence, the statewide Adequacy Gap under the Evidence Based Funding formula was reduced at a significantly faster rate because the local revenue increased at a faster rate over this time period compared to the increase in state-based revenue (new Tier funding).

CTBA’s most recent report highlights how the Personal Property Replacement Tax is a relatively odd revenue source that allocates revenue to school districts in accordance with their respective collections of Personal Property Tax revenue in either 1976 or 1977 and how this revenue source has big impacts on Illinois education policy,  

Volume VI of the Fully Funding the EBF series continues CTBA’s modeling of fully funding the EBF to 90% of Adequacy, which aligns more closely with the Illinois State Board of Education’s methodology. Volume VI uses the Enacted Fiscal Year 2023 General Fund Budget appropriations for the Evidence-Based Funding formula found in Volume V, but applies the ISBE EBF calculated shortfall for FY 2023 (released in August 2022), rather than a projected shortfall as provided in Volume V. The new release maintains the four scenarios found in the Fully Funding the EBF series Volume V.

Volume V of the Fully Funding the EBF series keeps adjustments to CTBA’s model to align more closely with the Illinois State Board of Education’s methodology and reporting but based on the Enacted Fiscal Year 2023 General Fund Budget appropriations for the Evidence-Based Funding formula. This change is made to the overall Adequacy Gap funding level (changes from 100% to 90% to accommodate for Federal funding). This change in methodology is applied in the same manner as it was for the four scenarios found in the Fully Funding the EBF series Volume V.