League of Women Voters Illinois Issues Briefing 70 East Lake Street Suite 1700 Chicago, IL 60601 www.ctbaonline.org Evidence-Based Model Saturday, March 4, 2017 League of Women Voters Illinois Issues Briefing University Center 525 S. State Street Chicago, Illinois © 2017, Center for Tax and Budget Accountability March 4, 2017

Why Switch from Current Model: NO FISCAL ACCOUNTABILITY Dollar Shortfall in State Per-Pupil K-12 Education Funding to Meet EFAB Adequate Education Standard by Fiscal Year Sources: CTBA analysis of January 2013 EFAB data. Education Funding Advisory Board, Illinois Education Funding Recommendations, (Springfield, IL: January, 2017). © 2017, Center for Tax and Budget Accountability March 4, 2017

No Real Increase in School Funding for Poverty Changes in GSA Spending, FY2008-FY2016 ($ in Millions, Inflation Adjusted) © 2017, Center for Tax and Budget Accountability March 4, 2017

Bottom Line: Bottom Feeder Funding Gaps Source: Funding Gaps 2015, The Education Trust “By far the largest gap is in Illinois, where the highest poverty districts receive nearly 20% less state and local funding than the lowest poverty districts.” © 2017, Center for Tax and Budget Accountability March 4, 2017

Key Features of the Formula Evidence-Based Adequacy Model Local Contribution Target Resource Ratio Funding Tiers Accountability & Updates © 2017, Center for Tax and Budget Accountability March 4, 2017

Adequacy Model Highlights Calculates Core Instructional Cost / Student Ratios for staffing and expenses Additional Ratios for Staffing/Expenses for Low Income students English Learning students Special Education students (mild/moderate) State Average Salaries © 2017, Center for Tax and Budget Accountability March 4, 2017

© 2017, Center for Tax and Budget Accountability March 4, 2017

Allocation of New GSA Funds Incorporates a Hold Harmless Previous year’s disbursement/student Based on Funding Target = 90% of Adequacy Hold Harmless calculation Local Contribution Target (based on EAV) © 2017, Center for Tax and Budget Accountability March 4, 2017

Hold Harmless/Base Funding To start, each District receives prior year’s per pupil state funding for: GSA (w/ Equity Grant and/or Tier Funding) Supplemental Poverty Grant Bilingual PTEL Adjustment Special Ed Personnel Special Ed Child Funding Special Ed Summer School Base Funding will be: Sum of per pupil funding for above grants, multiplied by Average Student Enrollment © 2017, Center for Tax and Budget Accountability March 4, 2017

Distribution Districts in one of 4 Tiers based on current adequacy % Adequacy % = (Adeq – Local Share – CPPRT – Base Funding Min)/Adeq Tier 1 (50% of funds) = all districts where 50% of new state appropriation can cover 50% of Tier 1 gap. Dynamic Adeq % Tier 2 (49% of funds) = all districts with less than 90% Adequacy (special override so all Tier 2 receive more than any Tier 3 districts) Tier 3 (.9% of funds) = all districts between 90 and 100% Adequacy Tier 4 (.1% of funds) = all districts over 100% Adequacy © 2017, Center for Tax and Budget Accountability March 4, 2017

Education Wage Gaps Over Time 1979 1995 2007 2011 College/high school 23.5% 42.5% 46.4% 46.9% Advanced degree/high school 32.4% 62.3% 66.6% 69.6% Source: The State of Working in America *NOTE: The gaps doubled over the 1979-2011 sequence! © 2017, Center for Tax and Budget Accountability March 4, 2017

Getting it Wrong Leads to Racial Inequities Median hourly wages for Whites increased modestly between 1980 and 2014, but: The White-Hispanic wage gap is larger in amount, growing from $4.36 per hour in 1980 to $5.98 in 2014, an increase of 37% over 1980 Median wages for African-Americans declined, in real terms. The hourly wage gap between Whites and African-Americans grew from $1.74 in 1980 to $5.18 in 2014, an increase of 197% over 1980 Getting 90% H.S. graduation rate for students of color = $246M more annually to IL state GDP © 2017, Center for Tax and Budget Accountability March 4, 2017

Ralph M. Martire Executive Director (312) 1049 martire@ctbaonline.org For More Information Ralph M. Martire Executive Director (312) 1049 martire@ctbaonline.org CTBA's principal goal is to ensure major policy systems work to promote social and economic justice. You can help strengthen our efforts by making a tax-deductible donation at www.ctbaonline.org/donate © 2017, Center for Tax and Budget Accountability March 4, 2017