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The Educational Funding Advisory Board (EFAB)-What Does the Future Hold?

The Educational Funding Advisory Board (EFAB)-What Does the Future Hold?. Illinois ASBO Conference May 19, 2011. Our Panel and Topics. Jim Fritts, NEIU, Moderator History of EFAB 2001-2011 Overview of 2011 recommendations

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The Educational Funding Advisory Board (EFAB)-What Does the Future Hold?

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  1. The Educational Funding Advisory Board (EFAB)-What Does the Future Hold? Illinois ASBO Conference May 19, 2011

  2. Our Panel and Topics • Jim Fritts, NEIU, Moderator • History of EFAB 2001-2011 • Overview of 2011 recommendations • Mike Jacoby, Executive Director, IASBO and member of EFAB Advisory Committee • A future approach to defining “adequacy” • The costs and outlook for the “double whammy” • Linda Riley Mitchell, Chief Financial Officer, Illinois State Board of Education • The effects of increasing poverty on foundation aid • EFAB agenda and schedule for the next round • Overview of FY12 budget and its legislative status • Audience questions and suggestions

  3. Statutory Requirements for EFABIllinois School Code: 105 ILCS 5/18-8.05 (1997) • Consists of five members from education, business and the general public, appointed for four years by Governor with advice and consent of the Senate. • EFAB shall make recommendations … for the foundation level …and for the supplemental general state aid grant level … for districts with high concentrations of children from poverty. • The recommended foundation level shall be based on a methodology which incorporates the basic education expenditures of low-spending schools exhibiting high academic performance. • EFAB is a continuous body, to report to the General Assembly in January of odd-numbered years.

  4. Current EFAB Members • Sylvia Puente - Chicago, Executive Director, Latino Policy Forum • Dean Clark - Glen Ellyn, Graphic Chemical and Ink Co. • Arthur Culver - Champaign, Superintendent, Champaign Unit District • Ed Geppert Jr. - Westmont, President, Illinois Federation of Teacher • Ken Swanson - Springfield, President, Illinois Education Association • Assisted by ISBE staff members and an Advisory Committee drawn from professional associations, school reform groups and finance scholars.

  5. EFAB Methodology • Based on the successful school district model of defining “adequacy” • Methodology in model: • Select a sample of successful and efficient school districts • Low-income percentage close to state’s mean • State test percentages at 67% or higher proficiency • District spends below predicted level • Calculate a base level of support based upon districts meeting both success and efficiency criteria • A problem has been the small number of districts that meet these criteria • EFAB’s methodology and data build on a 1990’s study, but newer achievement measures and financial methodology exist. • Testimony to EFAB in 2010 suggested using research-based actual average costs. • Switching methodology may require future legislation.

  6. History of EFAB Recommendations • Initial report in January 2001 (FY02)-the only FLEVEL implemented • $135 increase to $4,560 • Lower poverty threshold to 15% • Interim report in January 2002 (FY03) • $120 increase to $4,680 • New poverty count and formula • Comprehensive report in October 2002 (FY04) • $1,105 increase to $5,665 • New poverty count and formula, (which were implemented.) • Property tax abatement and income tax increase to fund formula changes • Report of May 2005 • $1,441 increase to $6,405 • Apply the Employment Cost Index (ECI) to the Poverty Grant Formula • Governor Blagojevich made no appointments to EFAB. • EFAB began meeting again in July 2009, and submitted its most recent report in January 2011.

  7. January 2011 EFAB Report-I • The report stated 4 guiding principles for the future. • A Foundation Level sufficient to provide a comprehensive high quality education for all students. • A reliable, predictable, timely and accurate funding stream for the State’s share. • Sufficient, reliable categorical and targeted funds from year to year for poverty, ELL, special ed, early childhood, transportation etc. • Reduce disparities in funding and programs in order to achieve functional equity for all children.

  8. January 2011 EFAB Report-II • A Foundation Level of $8,360 to inform the 2011-12 ISBE budget process. • ISBE used $6,416 in its first budget recommendation for FY12. • The Foundation Level gap is now almost $2,000 below the EFAB figure • Raise the Poverty Grant formula • From $355 to $472 per poverty pupil at the low end (15% poverty) • From $2,994 to $3,981 at the maximum poverty level • Included testimony on rising costs of poverty grant and “double whammy,” and on a future methodology for defining “adequacy”

  9. Our Panel and Topics • Mike Jacoby, Executive Director, IASBO and member of EFAB Advisory Committee • The costs and outlook for the “double whammy” • A future approach to defining “adequacy”

  10. The Costs and Outlook for “Double Whammy” • What is the Double Whammy? • An adjusted EAV for the GSA formula created in 2000 • Intended to “compensate” for the loss of access to local EAV due to declining tax rate as a result of PTELL • How many districts are impacted? • 460 PTELL Districts • 365 (79%) in Double Whammy • Including Chicago Public Schools

  11. What Does it Cost? • Historical Costs: • 2000 (97) $45,998,029 • 2001 (255) $52,163,593 • 2002 (353) $101,536,989 • 2003 (292) $199,137,319 • 2004 (299) $205,203,690 • 2005 (299) $357,331,811 • 2006 (353) $580,582,374 • 2007 (326) $624,097,818 • 2008 (307) $805,472,389 • 2009 (348) $789,022,647 • 2010 (296) $792,666,571 2010 Downstate: $349,130, 236 Chicago: $443,536,335

  12. Relationship of Cost Components in GSA Formula

  13. Potential Policy Issues for Future • Eliminate • Reduce (SB 629 – 65% Floor) • Change Formula (ISBE discussion) • Eliminate use of actual district tax rate in the formula (addresses the multiple county issues)

  14. Measuring Adequacy • Current EFAB Model – “Successful School Model” • Alternative Approach – “Evidence Based Model

  15. Evidence Based Adequacy (National Lewis University Study) • See Latest Article in The Journal of School Business Management. • Key Factors: • Adequacy based on standard program using • Actual student demographics • Inclusive of most catgoricals • Local salary index • Regional cost differences • Based on current research (“evidence”) • Class size, school size, effective programs, etc.

  16. State-Wide Study Findings • Requires 16% increase in state funding • Many schools currently exceed recommended per pupil allocation • Proposals: • $12,572 Foundation (inclusive of poverty, not including severe and profound disabilities) • $10,856 with separate $1,716 for poverty • 5 Year Phase-in approach

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