According to newly released state information, Chicago Public Schools (CPS) requires an additional $1.6 billion in state funding to ensure students receive an adequate education.
This funding gap has widened by approximately $400 million compared to last year, raising concerns among educators and policymakers.
Adequacy is determined using the state’s evidence-based funding formula, which evaluates the essential resources school districts need, such as an appropriate number of teachers and counselors based on student enrollment.
CPS finds itself among more than 300 underfunded districts that have seen a decline in the percentage of funding received relative to their needs compared to the previous year.
While state law mandates that all schools must reach at least 90% of adequacy by 2027, the Center on Tax and Budget Accountability warns that at the current funding levels, this goal might not be realized until 2034.
For CPS, the percentage toward adequacy has decreased from 79% to 73%, while the overall average for districts statewide dropped slightly to 76.6%.
Factors contributing to this decline include a significant drop in corporate tax revenues and rising educational costs, exacerbated by inflation and increased cost-of-living adjustments.
The timing of this information release coincided with increased pressure from Chicago school board members and the Chicago Teachers Union, who are urging Governor JB Pritzker to convene a special session of the General Assembly to seek additional funding for CPS and other districts.
Currently, CPS is grappling with a substantial $734 million budget deficit and has yet to approve a budget for the upcoming school year.
State law requires a balanced budget to be presented by next week to allow for the necessary hearings before the budget approval at the end of August.
In the context of funding adequacy, the state has classified CPS as Tier 1, placing it among the districts furthest from achieving adequate funding—a designation the district managed to move away from just two years ago.
However, being categorized in this way also allows CPS to receive a larger share of state education funds.
Consequently, CPS will receive $76 million more this year than in the previous fiscal year.
Although CPS has not disclosed its budget for the upcoming school year, it is noted that last year, the district benefited from a $23 million increase through the state funding formula.
If CPS officials were anticipating a similar increase this fiscal year, the newly announced $76 million could serve to mitigate some of the existing deficit.
Pavlyn Jankov, research director with the Chicago Teachers Union, expressed surprise at the scale of the growing adequacy gap for CPS, which he asserted is disproportionately impacting the district.
He pointed out that while all Illinois districts faced a $600 million increase in adequacy gap this year, two-thirds of that increase is attributed to CPS.
This situation underscores the need for increased state funding for the district.
Jankov also highlighted the state hearing on school funding, wherein some lawmakers questioned the need for additional resources for CPS.
He emphasized that the sharp decline in revenue from the Corporate Personal Property Replacement Tax this year, following a period of increases from 2022 to 2024, necessitates a re-evaluation of Illinois’ taxation policies regarding businesses and the wealthy.
The personal property replacement tax, which generates local government revenue, is levied against the net taxable income of all businesses operating in Illinois, according to the Center on Tax and Budget Accountability.
Since the implementation of a new evidence-based funding formula in 2018, the state has aimed to define adequacy and ascertain how much financial support districts require to reach that standard.
Adequacy is measured based on essential student-to-staff ratios that include core teachers, counselors, and other essential personnel.
The state committed to allocating at least $350 million in new funding for education annually and to focus this funding on the districts most in need.
While consistent funding has persisted since then, the current year saw a reduction to $301.8 million, a decline attributed to a pause in a specific grant, the Property Tax Relief Grant.
When the new funding formula was introduced seven years ago, the average percentage toward adequacy stood at 67%, demonstrating a notable improvement over the years.
State Education Superintendent Tony Sanders expressed gratitude towards Governor Pritzker and the General Assembly for their continued support of public education, which he noted is especially crucial amid threats to federal funding.
In a recent news release, state officials asserted that the new funding formula is effective in improving state funding and directing resources where they are most desperately needed.
image source from：chicago
