Understanding School Finance: 12 Questions and Answers

Understanding

School Finance

12 Questions and Answers

The laws governing school finance in Illinois affect different school districts in differ-

ent ways. The 12 questions and answers that follow are stated broadly and apply to

most districts. They will provide a general picture of school finance for anyone who

has not previously studied the topic. For more specific information about a particular

school district, consult a member of the school board or administration.

First Edition: July 1983 Revised: September 2016, May 2019, July 2020, July 2024

7/24-17-C

Illinois Association of School Boards Understanding School Finance 2

Table of Contents

1. What is a school district budget? 3

2. Who decides what goes into the budget? 3

3. How is school income determined? 4

4. How is state and federal aid to schools determined? 5

5. How is state aid allocated to schools? 5

6. Where does local revenue for schools come from? 6

7. Where does school income go? 7

8. How can schools reduce costs? 8

9. How does our school budget compare with others? 8

10. How can we evaluate the financial health of our schools? 9

11. Why do some school boards find it difficult to make income cover expenses? 10

12. What do we get for the money we spend on education? 11

Sources and Further Reading 12

Illinois Association of School Boards Understanding School Finance 3

1) What is a school district budget?

Illinois law requires every board of education to budget

its income and expenses each year and to make the

budget available for public inspection before final adop-

tion. The annual budget serves three major purposes:

1. The budget represents a plan for receiving and

expending money. It tells the school board,

its employees, and the public how much the

school district can spend during the year and for

what purposes.

2. The budget provides information necessary to

determine the amount of school taxes that must

be levied on real property, and how much the

district expects to receive from state and federal

governments.

3. The budget also satisfies a minimum level

of financial and program information for

local, state, and federal governments, meets

requirements imposed by Illinois law, and

provides both spending and taxing authority.

A school district budget is actually many budgets rolled

into one. The budget consists of nine major funds or

accounts specifically defined by how the money is col-

lected, held, and spent. These are

• Education

• Operations and Maintenance

• Debt Service

• Transportation

• Municipal Retirement/Social Security

• Capital Projects

• Working Cash

• Tort Immunity

• Fire Prevention, Safety, Environmental, and

Energy

The single largest is the Education Fund. In addition to

the direct costs of instruction (teacher salaries, etc.), this

fund includes any expenditure not specifically covered

in another fund.

While the board of education may, from time to time,

make transfers between various items in any one fund,

there are limitations to these transactions. Changes may

also be made, again with board approval, to transfer

money between certain operating funds. Neither of

these actions will necessarily improve the financial

health of the district. However, they can be used to

maintain and manage cash flow, to meet timely pay-

ments, and to avert or defer costlier options.

2) Who decides what goes into the budget?

Some of what goes into the school district budget

is determined by the board of education, based on

the advice of its professional staff and local citizens.

More and more budget decisions, however, are

forced on the board by factors beyond its control.

Each year the administrative staff gathers infor-

mation from a variety of sources and presents the

school board with a proposed budget. After care-

fully reviewing the budget, the board gives tentative

approval and puts it on file for public inspection. The

board gives final approval of the budget only after a

public hearing.

The timeline for developing a tentative budget to its

adoption varies from district to district. The budget

must be adopted by September 30, after which it must

be filed with the county clerk within 30 days.

Numerous factors are at work throughout this seeming-

ly simple process. Some of these factors affect school

income; some affect expenses. Taken together, these

factors represent the financial cards dealt to each Illinois

school board, as explained in the following sections.

The budget must be adopted by

September 30, after which it must

be filed with the county clerk

within 30 days.

Illinois Association of School Boards Understanding School Finance 4

3) How is school income determined?

Four major factors determine the amount of money

available for the school budget. They are as follows:

State appropriations and federal aid — The State of

Illinois adopted a new funding formula for schools

in 2017. The funding mechanism sets state aid

through an Evidence-Based Funding formula (EBF).

EBF annually sets an Adequacy Target and a Local

Capacity Target for each school district based upon

the fiscal capacity of the district and the needs of

its students. The Adequacy Target is determined by

the cost of educating all district students, based on

over 20 cost factors, adjusted to meet the needs of

the student population, with a regional cost factor.

The EBF formula is designed to adjust the local

funding capacity by aligning it with the Adequacy

Target. The formula also contains a hold-harmless

provision that guarantees every district receives no

less state funding than the previous year, and it dis-

tributes “new money,” known as “Tier Funding,” to

help districts reach their Adequacy Targets. Thus dis-

tricts with the greatest gaps between resources and

Adequacy Targets are assigned the greater benefit

of additional funding. Districts that have resources

above their Adequacy Target receive the smallest

share of Tier Funding.

Combined with state “categorical” grants and other

funds, state payments represent about one-fourth of

the typical school budget. Federal aid contributes

another 8% to Illinois schools. This money comes in

the form of competitive “block grants,” subsidies for

school lunches and breakfasts, and special education

programs.

Property values — The total property value in a school

district determines how much revenue the district is

capable of raising from property taxes. Some school

districts have very high property values, sometimes

including utilities or industries. Others have low prop-

erty values. Property values are set by the marketplace

and the assessor.

The Illinois Evidence-Based Funding (EBF) formula is

designed to close the gap between a district’s funding

capacity and the cost of offering an adequate educa-

tion to all of its students. However, the formula was

new in 2017-2018 and it is currently funded far below

the adequacy targets. In the meantime, a school

board’s ability to raise additional income beyond the

state’s guaranteed level depends heavily on the dis-

trict’s total property wealth.

Tax rates — Like property values, tax rates play a key

role in determining the amount of a school board’s local

revenue. The school district’s tax rate determines wheth-

er the school board can spend at, above, or below the

state’s guaranteed amount, which is always less than the

actual average cost of running schools. Like property

values, tax rates are usually beyond the school board’s

control. Maximum tax rates are established by the State

of Illinois and can be raised above the maximum only

with the approval of voters at a referendum.

Pupil enrollment — State aid is based in part on the

number of students served. Per-pupil revenue established

each year by the state serves as the foundation level of

funding for the district. This amount will increase or

decrease based on changes in student enrollment.

Combined, these four factors determine how much

money a school board is capable of generating for

the schools. Local property values and tax rates

determine how much money the board can raise

from property taxes. State aid makes up the differ-

ence between a district’s available local resourc-

es and the sum of all education cost factors (its

Adequacy Target). Federal dollars don’t factor into

this formula but they complement and sometimes

confuse the process when boards and administrators

attempt to make or explain critical decisions on what

the district can afford to offer.

If approved by voters, a County School Facility

Occupation Tax is another source of revenue for school

districts, limited to school facilities expenditures. See

Question 6.

Illinois Association of School Boards Understanding School Finance 5

4) How is state and federal aid to schools determined?

Appropriations for federal and state aid to public

schools are determined by the United States Congress

and the Illinois General Assembly, respectively. In

both cases, the process is much the same.

Appropriations bills are developed in committee,

based upon the recommendations of the president or

the governor and their advisors, and upon testimony

from interested parties.

The bills that emerge from committee may be further

modified through amendments before they are voted

upon. In both the federal and state processes, the

Senate and House of Representatives must pass the

bill. It is common for the two houses to pass differ-

ent bills and for a compromise to be worked out by

a committee formed of members from both houses.

Finally, the president or governor must sign the appro-

priation bill for it to become law. At both federal and

state levels, the process is complicated by the various

political factors that accompany consideration of any

important piece of legislation. In the case of education

appropriation bills, federal and state lawmakers alike

are bombarded with information and opinion from

dozens of interest groups, and also must consider the

opinions of their constituents.

In addition, these decisions are influenced by the

amount of money available in any given fiscal year.

Lean times or economic recessions can alter state or

federal appropriations, regardless of actual need.

Most federal funds are distributed to each of the 50

states in the form of “block grants.” The amount each

state receives is based on student population and

need. Block grants in Illinois are re-distributed to

school districts in accordance with criteria that school

districts must apply and qualify for.

Other federal funds are distributed to the states to help

them provide education for handicapped children,

economically disadvantaged children, and other spe-

cial purposes. Most of these funds are re-distributed

to school districts that have special need or otherwise

qualify.

It should be noted that federal aid covers only a small

fraction of the cost of special programs for the hand-

icapped or disadvantaged. Some of these costs are

financed by special state grants, but most of the cost

must be paid from general funds in the school district

budget.

5) How is state aid allocated to schools?

State funding to schools comes in different forms.

The most substantial form of aid is through the

State Aid program, which helps to underwrite the

cost of educating all pupils.

State Aid is distributed to the schools by the State

Board of Education. The distribution of State Aid

is determined by a statutorily defined mechanism

called the Evidence-Based Funding formula (EBF).

School districts are scheduled to receive their

State Aid in equal installments distributed on the

10th and 20th of each month from September

through June.

Special Categorical Aid — The Illinois General

Assembly allocates a portion of state aid through

grants for mandated special purposes. Such grants

are called categorical grants. For some state-required

programs, a school district merely submits a claim to

the State Board of Education. Categorical grants are

earmarked for a particular purpose and must be used

only for that purpose.

Most school districts, for example, are entitled to

transportation assistance if they submit the necessary

claim. School districts must compete, however, for

the limited funds available for gifted or adult educa-

tion grants.

Illinois Association of School Boards Understanding School Finance 6

Categorical grants are subject to the amount of

money allocated and the preferences for these

programs by the state legislature and governor.

The number of categories is also subject to

change. In FY 2021, the mandated categorical

grants included:

• Free lunch/breakfast

• Orphanage tuition (regular ed and special ed)

• Special education, including extraordinary

services, personnel, tuition, summer school,

and transportation.

• Transportation (vocational and regular ed)

Other categorical grants in previous years included

programs for gifted, bilingual, reading, early child-

hood, career/tech, truant alternative, ADA block, and

summer bridge programs.

6) Where does local revenue for schools come from?

A school district budget includes revenue from many

sources. Most of those sources are relatively small in

amount and serve special purposes — school meals

money, rentals, income from school activities, insur-

ance proceeds, and interest are some examples.

The major source of local revenue for public schools

is the property tax. The property tax consists of:

• Real estate tax, which is a tax on the real

property of homeowners and businesses.

This tax represents the largest single source

of revenue for Illinois public schools. It is

collected by the county and distributed to

taxing bodies.

• Corporate Personal Property Replacement

Tax (CPPRT), which is the tax on business-

es and utilities that takes the place of the

abandoned tax on personal property. This

revenue is significant for some school dis-

tricts but not for others, depending upon

the amount of local business and industry.

It is collected by the state and distributed

to school districts and other taxing bodies.

The tax on real property also funds a variety of local

services, including county and municipal govern-

ments, libraries, parks, and others. On a statewide

average, more than half of the typical property tax

bill goes to public schools.

The amount of money a school district can realize

from the tax on real property is determined by two

factors:

• The total assessed value of all taxable proper-

ty in the district and

• The school district’s authorized tax rate.

For example, if property values total $10 million and

the authorized tax rate is 3.5%, the district can expect

to receive up to $350,000.

The amount of assessed property value is determined

by the elected assessor, who acts in accordance with

state law. The law requires that property in all Illinois

counties except Cook be assessed at one-third of its

fair market value. Cook County may establish various

classes of property, each with its own assessment fac-

tor. In Cook County, residential property is assessed

at 10% of market value and commercial property is

assessed at 25%.

The amount of the school district’s tax rate is deter-

mined by the total amount of taxes levied by the board

of education. However, the tax rate cannot exceed the

maximum rate established by law unless that maxi-

mum is increased by voters at a referendum.

In addition, for school districts in Cook, five collar

counties and 33 other counties that have adopted the

“tax cap,” a state law limits property taxes extended

to a maximum percentage increase over the prior

year’s extension — regardless of what might happen

to school enrollments or school costs.

Illinois Association of School Boards Understanding School Finance 7

Stated briefly, the school board adopts a tax levy once

each year based on its approved budget. The levy states

the amount of property tax income needed to balance

the budget.

The county clerk then applies the levy against the dis-

trict’s total assessed property value to determine whether

it falls within the authorized tax rate. (For example, a

tax levy of $350,000 applied against a total property

assessment of $10 million would produce a tax rate of

3.5%.) The county clerk reduces the school board’s levy

if it produces a tax rate that is above the authorized rate.

The property tax bill received by the individual taxpayer

typically states:

a. the assessed value of property owned by the

taxpayer, minus

b. any homestead exemptions, multiplied by

c. the combined tax rates of all local governments

and services, equals

d. the total amount of taxes due.

Your tax bill will list the amount of taxes owed to each

government entity or taxing district, including any local

school districts and related pension costs.

School districts in Illinois can access the revenue source

provided by the County School Facility Occupation

Tax. Money generated through the sales tax can only

be used for school facility purposes and school security

personnel. The tax, which can be levied at quarter-cent

intervals up to one penny on the dollar, is collected by

the State Department of Revenue and distributed to the

regional superintendent, who in turn issues the money

to any school district in a county that adopts the tax,

based on its percentage of students in that county. This

tax gives school boards an additional option to the local

property tax, but it is for limited purposes — school

facilities, school resource officers, and mental health

professionals — and must be kept in a specific, separate

account designated for that purpose. As of this writing,

58 of Illinois’ 102 counties have approved the County

School Facility Occupation Tax.

7) Where does school income go?

A school district consists of people, buildings, equip-

ment, and supplies. Thus, a typical school district in a

typical year will spend about two-thirds of its income to

compensate employees and about one-fourth to operate

and maintain its buildings. The money that remains —

usually less than 10% — goes mostly for equipment and

supplies.

Another way to look at the school district budget is

by type of program or activity. A typical school dis-

trict spends 50% of its funds on student instruction,

plus another 15% on other student and community

services. Insurance, utilities, maintenance, supplies,

and other fixed charges usually amount to more

than 20%. Capital outlay, bond retirement, interest,

administration, and other costs consume the remain-

ing five to 15%. Numerous factors affect where a

school district’s income goes. For example:

• Instructional costs vary with the number of

teachers in relation to the number of students

(class size) and the amount of compensation

(salaries and benefits) paid to teachers and

staff;

• Operating costs vary with the number, size,

age, and relative energy-efficiency of school

buildings;

• Bond retirement and interest costs, i.e., bor-

rowing and the cost of borrowing, vary with

the amount of long-term and short-term debt;

• Other costs vary with the number and kind of

programs and services offered to students and

the community.

Illinois Association of School Boards Understanding School Finance 8

8) How can schools reduce costs?

But what happens when local taxes, as well as state

and federal aid, don’t cover the cost of essential

school services? What choices does the school board

have if state or federal funding is reduced, local

property wealth declines, or voters won’t raise taxes?

Schools can realize small savings by cutting back

on supplies, postponing improvements or mainte-

nance, lowering utility expenses, cutting staff by

attrition, combining duties, eliminating extra-cur-

ricular activities, or by reducing other services

available to students or the community. However,

to make significant or broad cost reductions, a

school board must look to its major expenses —

people and buildings. Only by eliminating jobs or

closing buildings can a school board make major

budget cuts.

If the board opts to eliminate teaching jobs or close

buildings, curriculum and class sizes may be severely

impacted. Unless enrollment is declining, these cuts

will severely strain the system. Class sizes will grow;

facilities will have to be shared; equipment will

wear out faster; and maintenance needs/costs will

increase. More importantly, individual and overall

student performance could be compromised if cur-

riculum cuts are deep or long lasting.

That’s why many school administrators keep updated

reports and long-term data on population projec-

tions, community development, the job market and

labor costs, utility capacity and delivery, land values,

and housing markets. This data can be highly use-

ful in the district’s strategic planning. This may not

reduce the frequency or timing of economic down-

turns, but it can reduce the severity or duration.

In the short term, the school board can control costs

only by limiting the amount spent for each teacher,

each program, each building, its equipment and

supplies, and ultimately the amount spent on each

student. While it may find some success in limiting

expenses or negotiating wage and benefit conces-

sions, the board is still required to meet state and

federal education standards.

In addition to the needs of the regular student pop-

ulation, public schools have to provide services or

facilities for the handicapped, English Language

Learners, special education students, those that are

homeless, and children with other needs. State and

federal law also require food service, driver’s educa-

tion, pupil transportation, and other services, all with

costs not entirely subsidized with outside funds.

Before making any decisions to reduce or cut any

service, program, teacher, or building, school boards

first listen to parents and taxpayers, teachers and

administrators. The board may have a clear vision

for community wants and needs, but it is the board’s

responsibility to find support for this vision and to

deliver it. Remember, property wealth and popula-

tion (and resulting enrollment) are the key factors in

a school district’s financial resources and its ability to

raise revenue or control costs.

9) How does our school budget compare with others?

Statewide, the average operating expense per pupil

in Illinois was $16,499 in FY 2023. This average

includes districts of all types, from the smallest rural

districts to wealthy suburban districts. The highest

per-pupil expenditures were over $47,800 and lows

were less than $7,700 per pupil in FY 2023.

Statewide, the percentages of school expenditures

(averages) devoted to various purposes in FY 2023

were:

Instruction ..................................................... 47.2%

Support services ...................................................30.4%

Other expenses ....................................................20.2%

General administration ........................................... 2.3%

School district revenue (averages) for that year came

from the following sources:

Local .....................................................................63.4%

State ......................................................................24.2%

Federal ..................................................................12.3%

Illinois Association of School Boards Understanding School Finance 9

10) How can we evaluate the financial health of our schools?

Although there are some similarities, the financial health

of a public school district should not be evaluated in the

way one evaluates a private company. In the private sec-

tor, the first place to look is “the bottom line” — profits.

You would also look at the balance sheet, a listing of

assets and liabilities, to see whether the investors’ equity

has grown through long-term profitability.

The financial health of a school district is also reflect-

ed in financial reports. A statement of current income

and expenditures will show whether the district is

operating within its means. A balance sheet will show

assets, liabilities, and fund balances. It will also show

whether the district has accumulated any debt against

future income.

This essential information is contained in the school

budget. It must be available in the school district office

and on file with the county clerk. Comments or ques-

tions on the budget can be submitted at a public hearing

before its passage (no later than September 30 of each

year). Other financial information can be found in the

district’s School Report Card and in its Annual Financial

Report.

The primary difference between evaluating business-

es and public schools, however, comes in the school

district’s reasons for existence. While profitability is the

chief measure of a company’s success, a school district’s

aim is to break even financially while providing a qual-

ity educational program for every child who attends.

Generally speaking, a school district is considered finan-

cially healthy when three conditions are met:

• The schools are providing all of the programs

and services necessary to meet the needs of

students as defined by the state and the com-

munity;

• Efficient business and educational practices pro-

duce satisfactory values for each dollar spent;

• Income matches expenditures each year; or if

not in every year, then income and expense

should balance over a period of three or four

years.

In evaluating financial health of a school district, appear-

ances can be deceiving. For example, a school district

can get high marks in terms of quality programs and

services — but can’t accomplish it without spending

more than it can afford.

School boards frequently must borrow in order to pay

bills on time; this is typically a cash flow problem

caused by delays in receiving tax income or state aid.

This form of debt is repaid from current income and

does not represent a deficit budget.

However, debt incurred against future income is not

consistent with financial health, especially if it is permit-

ted to grow over a period of several years.

On the other hand, a balanced budget also can

be deceiving. In order to make expenses fall within

income, a school board may be compelled to reduce

programs or services below what the community needs

or what the state requires. Yet, by looking only at finan-

cial statements, one might conclude that the district is

“financially healthy.”

Many school boards find themselves in this dilemma.

They must lower the quality of their schools or operate

with a budget that’s out of balance. Neither alternative

is satisfactory. To get out of the dilemma, taxpayers

typically urge school boards to become more efficient.

Many school districts have introduced management sys-

tems for finding and eliminating unnecessary expenses.

Where that is not enough to balance the budget, more

radical steps must be taken. The school board has lim-

ited options:

• Adopt a deficit budget and hope a more satisfac-

tory solution will arise in the future;

• Increase each teacher’s workload (larger class

size) or eliminate courses;

• Ask voters to approve a tax increase.

While chances are good that a school district is finan-

cially healthy if it has to do none of the above, a few

school boards in Illinois find themselves having to resort

to all three just to survive.

Illinois Association of School Boards Understanding School Finance 10

11) Why do some school boards find it difficult to make

income cover expenses?

There are at least four reasons why school boards have

difficulty balancing their budgets. All districts are affect-

ed by these problems, but some are financially better

able to deal with them than are others.

a. Inflation — Inflation has about the same effect

on schools as it has on personal household bud-

gets: everything costs more each year. More than

half of the typical school district budget consists

of salaries, which need to be increased as infla-

tion reduces the purchasing power of the dollar.

b. Tax relief — The Illinois General Assembly has

enacted a number of measures over the years to

hold the line on property taxes. These measures

are designed to relieve the impact of inflation on

property values. For school districts that cannot

raise tax rates without voter approval, freezing

property values also freezes property tax income.

Previously, modest annual increases in property

values kept pace with modest annual increases

in school costs. Today, however, school costs go

up while assessed property values in many areas

are kept artificially low through special exemp-

tions and preferential assessments.

c. Tax relief measures that have eroded school

income include the following:

• A general homestead exemption for home-

owners that exempts increases in market

value from property taxes;

• A special homestead exemption for senior

citizens;

• A special exemption for disabled veterans;

• An exemption for homestead improvements

that increase market value;

• Preferential treatment for farm land that

has a high market value in relation to

productivity;

• A cap on increases in tax extensions in the

counties around Chicago and many other

counties that have adopted the Property Tax

Extension Limitation Law.

Also, numerous municipalities have adopted

enterprise zones or tax increment financing

districts (TIFs). These are economic incen-

tive programs for businesses and employers

that permit them to abate or divert some

property taxes from local taxing districts

(including many school districts) to use

for private or community development. As

of FY 2022 Illinois had 102 active com-

munity enterprise zones and in FY 2023

the state had nearly 1,500 active TIFs.

State funding — The state’s share of school

funding has fluctuated over the past 15 years.

In 2004, state funds made up 30% of the

total public school funding. In 2023, state

funds made up 24.2%. There have been

years with higher and lower percentages,

but the result is basically the same: local

taxpayers pay for local public education.

Over a 30-year period, state spending for

schools has decreased as a proportion of total

state spending, although it has increased in

recent years. In 1989, schools received 23.5

cents of every dollar in the state’s general rev-

enue budget. Spending dropped to 18.9 cents

per dollar by 2011. For FY 2020, the schools’

share of state general revenue was 23 cents

of every dollar.

d. New programs — Public school services have

been expanded and made available to many

more people over the past 25 years — presum-

ably to the benefit of the state, the nation, and

the individuals served. These new services

place new demands on the school budget.

For example: each Illinois school district

today is held legally responsible for the edu-

cation of all children in the district, regardless

of physical, mental, or emotional handicap.

Costs associated with these students tend to

be higher than the costs of regular programs.

Perhaps because the nation depends upon

an educated citizenry, education in America

has become more a right than a privi-

lege. Public schools are obligated to extend

themselves to the fullest in educating all

pupils. These measures include alternative

Illinois Association of School Boards Understanding School Finance 11

programs for students who just a few years

ago might have been expelled for disrup-

tive behavior. Others include special efforts

to guard against all forms of discrimina-

tion — racial, sexual, religious, social, or

mental ability. These responsibilities do not

necessarily involve special program costs,

but they do involve organizational efforts

that often translate into staff salary costs.

The Illinois General Assembly also has leg-

islated innumerable rules for the operation

of public schools, all of which create tasks

that must be performed to comply with state

law. The result is an increase in adminis-

trative and clerical workloads — and jobs.

Such laws increase the number of unfunded

mandates each year, always over the protests

of Illinois school boards.

These four factors — inflation, tax relief, state fund-

ing, and new required programs — create continuing

financial concerns for many Illinois school boards.

12) What do we get for the money we spend on education?

There are two ways to look at that question. One is to

look at what public schools are accomplishing. The

other is to consider what the nation would be like if

there were no public schools.

The schools often take the blame for many of soci-

ety’s ailments. People expect a great deal from

their schools because there is an unmistakable link

between education and quality of life. Educated

citizens of America provide the brain-power for

advances in science, medicine, technology, art, and

literature.

Traditionally, the public schools have always been

available for those willing to make the effort to

benefit from them. Schools today try harder to be

inclusive and equitable, reaching out to more and

more students for whom schooling presents a diffi-

cult challenge. The range of services has broadened

dramatically, too, from basic classroom instruction

to include food services, health services, counseling,

remedial learning programs, and advanced programs

in math and science.

What do taxpayers in your community get for the

money they invest in education? Here are some

places school board members can look for answers

in their own schools:

• The percentage of students who graduate,

who go on to college, or who take jobs.

• Improvements in student test scores. (Illinois

averages are higher than national averages.)

• The number of students who make it through

school without ever being in trouble with the

law, caught using drugs or alcohol, or other-

wise causing serious trouble.

• The number of students passing all their

courses or earning honor-level grades.

• The individual success stories about gradu-

ates from a few years ago who have gone on

to achieve success in college or jobs.

• School programs that show dramatic results and

staff members with outstanding achievements.

• Quality public schools benefit the entire

community and act as an anchor to attract

new growth.

Illinois Association of School Boards Understanding School Finance 12

Sources and Further Reading

Illinois Department of Commerce and Economic

Opportunity. (January 1, 2022). Enterprise Zone Listing.

Retrieved from website https://dceo.illinois.gov/con-

tent/dam/soi/en/web/dceo/expandrelocate/incentives/

taxassistance/documents/enterprise-zone-listing.pdf

Illinois State Board of Education. (July 2024) Illinois

School Report Card, Statewide Snapshot. https://www.

illinoisreportcard.com/State.aspx

Illinois State Board of Education. (August 11, 2023).

Operating expense per pupil (OEPP), per capita tuition

charge (PCTC), and 9 month average daily attendance

(ADA). Retrieved from ISBE website https://www.isbe.

net/Pages/Operating-Expense-Per-Pupil.aspx

State of Illinois Comptroller. (June 13, 2023). Upload

TIF Reports. Retrieved from Illinois Comptroller web-

site https://illinoiscomptroller.gov/constituent-services/

local-government/local-government-division/upload-

tif-reports

Effective School Board Member, published by IASB, is

an introduction to the work of boards of education in

Illinois and includes a chapter covering school finance

and responsibilities of the school board. It can be

purchased from the IASB Bookstore, www.iasb.com.

Essentials of Illinois School Finance, published by the

Illinois Association of School Boards (IASB) provides

an in-depth examination of school income, expen-

ditures, business management, and other aspects of

school finance. This book is also available from IASB.

Illinois School Law Survey, especially chapters 23

through 26 on Property Tax Income, State Aid and

Other School Income, Budgeting and Managing

School Funds, and School Board Borrowing and Debt.

This book is also available from IASB.

Mechanics of a School District Budget is available from

the Illinois State Board of Education, www.isbe.net.