School Funding in Illinois and DC

Abstract
This paper compares and contrasts the school funding approaches of the state of Illinois and the District of Columbia. It shows that in Illinois there is a far greater problem of how to achieve a more equitable distribution of funds, though the state is currently setting a course to try to make this happen with its evidence-based model funding formula recently passed this year. In DC on the other hand, a foundation formula is used to disperse funds equitably throughout the District and private investment is obtained to help develop programs that can assist in closing the achievement gap. DC is thus better structured and its school funding approach better supported to achieve success over the long run.
Keywords: school funding, dc, Illinois, education
School Funding Investigation:
Comparing and Contrasting Illinois and Washington, D.C.
Introduction
Funding for schools is a controversial topic for many mainly because of the lack of discernible equitability evident throughout the system. This paper takes a close look at two school systems in particular—the Illinois state school system and the Washington, D.C., school system to see how they approach the issue of school funding respectively. The paper shows that there are unique challenges faced by each and that new formulas are being tried currently to address specific issues—such as inequity.
How Schools are Funded in Illinois and Washington, D.C.
Schools in Illinois are funded by taxes, which vary from district to district. Poor districts receive little funding while affluent districts receive much more. A new funding formula passed in 2018, however, intends to change that and to make sure every school district receives the funding it needs to provide a fair education to all. Using a model that looks at individual school districts and provides funds meant to improve them, Illinois hopes to close the equitability gap in short order.
Schools in Washington, D.C., are funded by local and federal funds. School districts receive federal funds according to how many teachers they have, the teachers’ experience, and several other variables. Local money goes to supply the basics for education, and local money goes to supply the “extras”—technology, after school programs, etc. There are also a number of DC public school funds like Excellence through Equity, which is designed to help close the achievement gap, and the Empowering Males of Color and Reign initiative. Currently, $1.74 billion is budgeted for DC schools by the Mayor (District of Columbia Public Schools, 2017).
Challenges to the State’s Funding Formula for Illinois and Washington, D.C.
Challenges to Illinois’ funding formula is that the state is essentially bankrupt and simply does not have the funds to pay public employees or distribute money evenly among the various districts, although it intends to do so at least in the near term. The long term outlook is far less optimistic, however, as Stettler, Msall, Grossman & Hinz (2017) indicate when they point out that the state’s bankrupt school system sends a terrible message to markets and that the state’s leaders are not prepared to enter into bankruptcy though this is inevitable according to Stettler et al. (2017). The fact that there are so many impoverished school districts banking on receiving funds from the new evidence-based formula while wealthier school districts are just trying to maintain their advantage as people flee the state and its increasing tax rate shows how deep these challenges go for Illinois. There is no easy solution to these problems.
Challenges to D.C.’s funding formula include maintaining positive investment in the area as private funds for school raise capital that will go to support the school infrastructure throughout the District. As D.C. divides up funds according to the weighted needs of the levels of education, the District has also sought investment from private donors to boost the excellence of the schools through various programs and initiatives and the challenge is to maintain interest in these initiatives and to show investors that they are paying off.
Percentages of Local, State and Federal Aid for Illinois and Washington, D.C.
Illinois’s general state aid percentage was 16.4% while 9.7% came from other state funding. Local funding totaled 65.9% with 61.1% coming from local property taxes and 4.8% from other local revenues. Federal aid was 8.1% (Malin & Noppe, 2015).
10% of D.C.’s funding comes from federal funds while approximately 90% of it comes from local funds. The District has no funds from a state since it is not one of the 50 states of the U.S. (U.S. Department of Education, 2013).
Types of Taxes Relied on for Illinois and Washington, D.C.
The main types of taxes relied upon for Illinois are property taxes, which make up well over half of the funding for schools in its districts. However, the fact that Illinois is losing people every year, driving property values down and tax rates up indicates that the system is broken and that the state is sinking further into debt just to service its existing obligations.
The main type of taxes relied upon for D.C. are local taxes—i.e., property taxes which, like in Illinois, serve to fund the bulk of school district operations. As D.C. is a neighborhood much smaller than the state of Illinois and with much more concentrated income streams, the challenge of dispersing funds is less of a problem here than in Illinois.
Type of State Aid Formula for Illinois and Washington, D.C.
Illinois recently adopted an “evidence-based model” for distributing state aid to schools throughout the state (Korecki, 2017). This model allows low-income school districts to receive more funding and replaces the old formula which relied upon local property taxes for funding local school districts. The amount that schools received is calculated by using various metrics to identify the exact amount of money each school district requires to ensure that its schools can give students a solid educational experience. Chicago also has a private scholarship fund of $75 million which is to be a pilot program that lasts for five years and which allows “individuals and corporations to earn tax credits for donating to a scholarship fund that benefits eligible families who send their children to private schools” (Korecki, 2017). The new Tax Credit Scholarship program also allows district-authorized charter schools to obtain equal funding and for families of low economic status to have access to private schools.
The District of Columbia uses a “foundation” or base formula for aid, with grade levels K-3, 4-8, and 5-12 all receiving roughly a fair and even weight of the percentage of distribution (Griffith, 2015). This method allows D.C. to distribute aid according to perceived need. It is different from a modified foundation, which many other states have in that a modified foundation is similar to a traditional formula except it is modified in some way—i.e., there is no common base funding used for all schools but rather it varies from one school district to the next.
Equity/Equality Issues for Illinois and Washington, D.C.
Equity and equality issues are a major problem for Illinois as many school districts are impoverished and suing for funds, while other school districts are very wealthy because of the concentration of wealthy families in these areas that want to pour their money into developing their own regions as opposed to seeing a more equitable distribution of funds, which are, ultimately, non-existent in the first place as the state of Illinois borrows badly to cover its costs.
Equity and equality issues in D.C. are being addressed through a number of different initiatives that are designed to help minority students focus on achieving academic success, while local leaders develop funding formulas for closing the achievement gap.
Reflection
Illinois faces a host of problems with its impossible financial situation, declining credit worthiness, and the exodus of tax payers from the state, putting the government in a serious bind. Any attempt to rescue impoverished schools with idealistic funding formulas will fail in the long run as funds run short, as tax rates continuously climb, and as investors see dwindling returns on investment. The problem of education in Illinois is one that cannot be easily solved and the end result is likely to be a closure of many schools as they simply lack the funds to keep them open and running and sufficiently staffed.
Illinois is also in crisis mode politically and culturally with Chicago, where most of the state’s population densely resides, is in a mode of self-destruction, with violence escalating to levels never before seen. The very fabric of society appears to be twisting in the wind, slashed at from multiple directions with no salvation in sight. To continue to kick the can down the road, financially speaking, is to close one’s eyes and hope for the best, which is what Illinois’ and Chicago’s leaders appear to be doing—but the reality is that this experiment in monetary and fiscal policy will not end well. Illinois is likely to enter into a period of austerity and school districts will suffer beyond what they are currently experiencing.
The District of Columbia on the other hand appears to be moving in the right direction—but it also has far less dispersion to worry about. It is a much smaller region geographically speaking, and its importance on the national and even the world’s stage is well-established thanks to it being the seat of power at the federal level. The District’s local revenues therefore are substantial and help to contribute to keeping the schools running. Local investment also aids in various programs designed to address issues of equitability and equal opportunity in education, which attract more investment and financial support in the long run when these programs are able to show the social improvement is indeed taking place. In short, D.C. is in a much better position with respect to education than the state of Illinois.
Conclusion
Illinois has not managed its financial duties well over recent decades. It is leveraged quite extensively and there is an enormous gap between school districts as much of the state’s wealth is concentrated in specific communities where the population wants to keep its money going to schools that will benefit its own families and neighbors. This presents a problem for other parts of the state that depend on local funds for running their schools: as they earn very little revenue from poor communities, these communities in turn have very poor schools. In the past this has led to a widening of the achievement gap and a stark reminder of the problem of equitability in the state. However, this year the state is attempting to implement a new funding formula that will disperse funds more equitably. How it works out remains to be seen, but tensions are sure to rise as various communities demand their fair share from a government already stretched thin in multiple directions. The District of Columbia on the other hand, has numerous investment streams from local supporters who want the District to close its achievement gap and help minorities obtain a brighter future. DC’s problems are far less compounded than Illinois’ for this reason—and size has something to do with it.

References
District of Columbia Public Schools. (2017). Excellence through equity. Retrieved from
https://dcps.dc.gov/release/mayor-bowser-and-dc-public-schools-launch-excellence-through-equity-funding-26-million-all
Griffith, M. (2015). State education funding formulas. Retrieved from
https://www.ecs.org/clearinghouse/59/81/5981.pdf
Korecki, N. (2017). Illinois overhauls system for funding public schools. Retrieved
from https://www.politico.com/story/2017/08/29/illinois-public-schools-funding-242144
Malin, J. R., & Noppe Jr, R. J. (2015). Illinois. Journal of Education Finance, 40(3), 314-
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Stettler, P., Msall, L., Grossman, K., & Hinz, G. (2017). Illinois Politics and Public
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U.S. Department of Education. (2013). Revenues and expenditures. Retrieved from
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