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Chicago Public Schools is further away from having enough money to meet its students’ needs as defined by the state, according to new data released by the Illinois State Board of Education.
Under ISBE’s calculations released Friday, CPS is now considered a little over 70% adequately funded, compared with 73% last year. CPS isn’t alone in that shift. More than 700 school districts regressed from hitting the state’s target of 90% funding adequacy, a metric reached by assessing a district’s student population and ability to pay for a variety of common cost factors.
The backslide is due, in part, to the state changing how it counted low-income students. Officials said they decided to count students “who were eligible for federal social programs as of July 1,” including Medicaid and the Supplemental Nutrition and Assistance Program, or SNAP.
The widening gap in funding adequacy for hundreds of districts, including Chicago, adds fuel to the Chicago Teachers Union’s argument that the city’s schools need lawmakers to commit more money. The Board of Education echoed this sentiment when they recently passed a budget assuming the state will increase funding during the fall veto session in November.
Illinois Federation of Teachers and Chicago Teachers Union President Stacy Davis Gates called the funding distribution a “wake-up call” to the state. However, amending the state’s budget now would be hard and require a three-fifths majority vote.
Illinois’ way of funding schools assumes students with higher-needs cost more to educate. Adequacy targets for each district fluctuate annually based on the students being served, which is why an increase in low-income students raises the cost the formula says is necessary to reach adequacy.
Identifying low-income students for the formula is likely to change further next year. Illinois lawmakers put $200,000 in this year’s budget for the state education department to come up with a new way to count low-income students in response to the Trump administration’s “Big Beautiful Bill,” which cut funding for many social programs.
There was a 43% rise in low-income students this year, according to ISBE. That coupled with lower property tax revenues and increases in teacher salaries and instructional material costs are what is driving districts away from being adequately funded, state Superintendent Tony Sanders told reporters in a webinar Friday.
Schools get at least the same amount of money they received the year prior. Districts furthest from achieving adequate funding are first in line to receive more money. Lawmakers added $350 million — the typical annual funding commitment — this year as part of the state budget.
Despite more districts faltering in their march toward adequate funding, total state spending on K-12 schools totals over $9 billion. That’s up by more than $2 billion since evidence-based funding was introduced in 2017.
Notably, that money is unrestricted. So districts do not have to use the money exactly in line with where the state identified heightened needs.
Zooming in on Chicago’s state funding this year
Chicago Public Schools remains one of the neediest districts in Illinois.
Overall, CPS will get about $1.9 billion from the state for the 2026-27 school year. That’s nearly $66 million – or about one-fifth — of the $350 million increase in state education funding. But it falls just short of the $2 billion the Chicago Board of Education hopes to get.
Last week, the school board passed an amended budget that increased the amount it expected to get from the state through the evidence-based formula, from $1.9 billion to $2 billion. Additionally, it assumes $50 million more from a separate pot of state funding that’s meant to reimburse CPS for other services, such as special education and student transportation costs.
The board also directed CPS CEO Macquline King to reverse hundreds of staff layoffs as part of its new budget.
If the funding doesn’t come through, schools may be forced to cut staff or programs in the middle of the school year. While King urged the board not to assume more funding than CPS was expecting, she and board members have said they will press the state to boost its support during the Illinois legislature’s November veto session, which would require three-fifths of lawmakers in the state House and Senate to approve.
“We will be working with our government partners at both the city and the state level to secure the additional funding that our schools need, and we really hope that you stay tuned so that we can inform you how you can help us with that advocacy for additional school funding,” King said Thursday evening during a webinar for the public.
If lawmakers agreed to give CPS more money, Sanders said ISBE would advocate that all districts get a funding increase.
Disbursements of funds to districts should start Monday, according to ISBE.
Makiya Seminera is a reporter covering how the state and federal government affect education in Chicago and across Illinois. Contact Makiya at mseminera@chalkbeat.org. Reema Amin is a reporter covering Chicago Public Schools. Contact Reema at ramin@chalkbeat.org.
