SPRINGFIELD — The Illinois State Board of Education released details this week on how it will allocate $9.3 billion in Evidence-Based Funding to public school districts for the upcoming fiscal year, but state officials and school leaders warn that the increase will not keep pace with mounting costs.
Funding rise outpaced by costs, revenue decline
The distribution represents a $350 million increase from the prior year. Still, the new figures show the number of districts funded at or above 90% of their calculated adequacy target has fallen for the third straight year, and the statewide “adequacy gap” — the estimated additional dollars needed to bring all districts up to full adequacy — has grown to $6.8 billion.
The State Superintendent of Education, Tony Sanders, said the shortfall stems from three main pressures: rising operational costs for schools, a reduction in a corporation-related revenue source, and an increase in students classified as low-income. Sanders also said the Evidence-Based Funding formula continues to channel resources toward higher-need districts.
Fewer districts reach adequacy threshold
Under the distribution released by ISBE, only 292 of the state’s 850 elementary, high school and unit districts will be funded at 90% or more of their adequacy target in fiscal year 2027. That is down from a peak of 327 districts in fiscal year 2024.
ISBE estimates that, at the current pace of annual increases in K-12 funding, it would take at least 14 years to bring all districts to full adequacy. The agency’s figures underline a widening gulf between the level of resources districts need, as defined by the Evidence-Based Funding model, and the actual dollars available.
- Statewide funding to be distributed: $9.3 billion
- Annual increase over last year: $350 million
- Districts at ≥90% adequacy: 292 (of 850)
- Adequacy gap: $6.8 billion (up from $4.8 billion three years earlier)
What the numbers mean for local classrooms
Districts below their adequacy targets typically receive smaller per-student allocations relative to what the Evidence-Based Funding formula deems necessary to deliver the full set of services and supports tied to student success. School leaders who must balance staffing, special education, transportation and rising energy and supply costs are likely to feel the strain as available state resources fail to cover those pressures.
Administrators often must rely on local property tax revenue, federal grants, or district reserves to bridge gaps. But where property tax bases are smaller or student needs are higher, the capacity to compensate for state shortfalls is limited.
| Measure | Value |
|---|---|
| Total Evidence-Based Funding (FY2027) | $9.3 billion |
| Increase vs. prior year | $350 million |
| Districts funded ≥90% adequacy | 292 of 850 |
| Statewide adequacy gap | $6.8 billion |
| Years to full adequacy at current pace | At least 14 years |
Officials stress formula remains targeted
State education leaders maintained that the Evidence-Based Funding approach is directing resources toward the districts and students with the greatest needs. The model, adopted in recent years, ties allocations to factors such as student poverty, special education needs and the size and grade span of districts.
Still, the combination of cost pressures and a drop in a component of corporate tax revenue has reduced the capacity of the state budget to close the gap more quickly. ISBE’s figures show the adequacy shortfall has widened from about $4.8 billion three years ago to the current $6.8 billion, even as total appropriations have grown.
What comes next
Education advocates and district officials are likely to press lawmakers and the governor’s office for additional resources or changes to revenue sources that could accelerate progress. Any substantial shift would require action by the General Assembly or adjustments in the state’s fiscal priorities.
For now, districts will begin receiving guidance and allocations under ISBE’s distribution schedule as they finalize budgets for the coming school year. Local school boards will weigh how to deploy new state dollars while managing rising costs and student needs that continue to outpace funding gains.
State and local officials say the Evidence-Based Funding formula is delivering targeted support, but its authors and advocates acknowledge that without new revenues or faster growth in state funding, many districts will remain under-resourced for years to come.
