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January/February 2026

Advocacy Angle
State and Federal Funding: Priorities are in Order

By Sarah Miller
 
Almost 10 years ago, the Evi­dence-Based Funding Formula (EBF) was passed by the Illinois General Assembly. This was a monumental step forward for the State of Illinois in prioritizing public education and funding the services that are needed by our stu­dents. EBF promised $350 million in new funding each year, with $300 million of that going direct­ly to the districts most in need through Tier Funding.

Importantly, each year since the passage of EBF, Illinois has followed through on that $300 million annual commitment in Tier Funding, with the exception of a one-year pause in new fund­ing during the pandemic. This is an important step for Illinois in creating predictability for our districts.

IASB and its partner organiza­tions reaffirmed the commitment to EBF through Vision 2030 and is committed to “protect the integ­rity and funding” of EBF. While this support of EBF must contin­ue, Illinois districts have become increasingly concerned about the insufficiency of other critical K-12 state funding sources that fall out­side of EBF, specifically the Man­dated Categoricals (also known as MCATs). Additionally, the lack of sufficient federal funding sources, including funding from the Indi­viduals with Disabilities Education Act (IDEA), has also become a concern.

Illinois districts rely heavily on three state Mandated Categoricals in particular: Regular Transpor­tation, Special Education Trans­portation, and Special Education Placements. The three represent over $1 billion in K-12 funding annually.

Reasons they are critical include:
  • Transportation – Districts are mandated to transport students who live more than 1.5 miles away to and from school. This fund­ing source is important to all school districts, but is especial­ly important to rural districts and larger districts with sig­nificant transportation needs. Additionally, with an increase in student chronic absenteeism since the pandemic, it is more important than ever to ensure students have access to safe means of getting to and from school.
  • Education Trans­portation – Many of our most vulnerable students require additional one-on-one aides to assist them on the bus routes, as well as specialized vehicles to get to and from school. Additionally, many high-needs students who are placed outside of their local districts need transportation to and from those placements, which can be over an hour commute in some instances.
  • Education Private/ Public Placements – These are the services provided to some of our highest-need stu­dents whose IEP teams have determined that they attend a private or separate public school to meet their needs.
At the national level, the fed­eral government also committed to supporting these special edu­cation services, provided to more than 15% of students. When IDEA was passed in 1975, the federal government said it would fund special education services at 40%. Now, 50 years later, that commitment has fallen to 10%. This amounts to more than $1 billion that Illinois school dis­tricts are not receiving from the federal government to support students with IEPs.

At the time these mandates were passed, they came with clear commitments by the federal and state governments to share those costs with local school districts. Because the commitments have wavered, local districts are absorb­ing more and more of these costs each year. This puts incredible pressure on local school district budgets as their communities must absorb these costs. Despite the lack of sufficient funding, these services must still be provided to ensure that all students receive a quality public education. Our districts are committed to providing those services, and we must advocate for state and federal legislators to make that same commitment to supporting those students by fund­ing the services that they need.

Vision 2030 also contains a commitment to “continue the EBF Distribution Model and Mandated Categorical payments annually to protect equitable distribution of funds. All funds to support public education in Illinois must be provided to local districts on an annual basis.” Mandated Cat­egoricals are services provided to some of the state’s most vulnerable students. Failure to fund these services impacts the entire school community. It causes increased caseloads for teachers, school social workers, school psychologists, and other staff, resulting in less pro­gramming for all students when funds are diverted from other crit­ical education programs to fill the funding gaps caused by state and federal government underfunding.

We acknowledge that these ser­vices are expensive and that there are so many other pressures on the state and federal budgets each year. However, the services provided by these Mandated Categoricals and IDEA are fundamental to ensuring access to public education for all students.

This important issue will be one of IASB’s 2026 legislative priorities. We must reaffirm our commitment to these students, the services they need to suc­ceed, and the state and federal funding needed to provide those services. 
 
Sarah Miller is Associate Executive Director for Governmental Relations at the Illinois Association of School Boards.