FIF Response to the FY27 State Budget  

This week, the Illinois General Assembly appropriated $350M in new funding for the Evidence-Based Funding (EBF) formula and an increase of $67.9M for Mandated Categoricals (MCATs) in the Fiscal Year 2027 Budget. A portion of the $350M for EBF includes additional funds for the Property Tax Relief Grant, which was not funded in FY26. In a year of difficult budget decisions, we commend the General Assembly for continuing to prioritize public education and investing in our students. At the same time, this year’s investment falls short of what is needed to fulfill Illinois’ commitment to fully fund schools through the Evidence-Based Funding formula.

We recognize the continued impact this investment will have across the state amid ongoing federal policy and funding changes. Stable and adequate K-12 funding is essential and more important than ever to enable schools and districts to meet students’ needs, including access to mental health support, updated instructional materials, and the staff needed to help every student be successful.  

“By investing in our students, we are investing in their future, and our own,” said Cheryl Flores, Director of Community Engagement at Advance Illinois. “Without adequate funding, students feel the impact both in and outside the classroom, with larger class sizes, delays in services, limited access to mental health supports, and fewer enrichment opportunities.” 

Continued investments in EBF have delivered meaningful progress across the state. Since 2017, the formula has reduced the number of severely underfunded districts—those receiving less than 70 percent of the resources they need—from 459 to just 56 in FY26. However, three out of four Illinois students still attend districts that are not fully funded, and the statewide adequacy gap remains greater than $3 billion. Parents, students, and educators continue to experience the consequences in the form of larger class sizes, fewer academic and enrichment opportunities, staffing shortages, and reduced access to critical supports.

As we know, rising costs have added pressure to school budgets. MCATs, which fund legally required services such as transportation and special education, remain underfunded, forcing school leaders to make tough decisions about how to allocate limited funds. While this year’s increase addresses inflation costs, it does not account for rising claims. As districts devote more local resources to cover these growing mandatory costs, fewer dollars remain available for classroom instruction and student supports. Importantly, funds for the Free Breakfast and Lunch program were increased amid federal cuts. This underscores the importance of sustained and increased investment in EBF, together with MCATs, to ensure stability of essential services and continued progress toward adequacy.  

Illinois must accelerate its efforts to close remaining funding gaps so that students are not forced to wait another generation for the resources they need today. Public school districts should not be left to manage funding shortfalls that compromise learning, mental health supports, safety, and stability.

As we approach the 10-year anniversary of Illinois lawmakers passing EBF, we cannot forget the promise to fully fund our schools by 2027. While annual increases have moved the state in the right direction, they have not been sufficient to meet that commitment. If we continue at the current rate of investment, EBF will not reach full funding until approximately 2040—more than a decade after the original target date. Today’s kindergarten students will have graduated high school before that. 

The question now is whether state leaders are willing to make the investments necessary to finish the job. While we deeply appreciate the significant progress to date, students cannot afford another decade of incremental progress while waiting for adequate resources.

Funding Illinois’ Future looks forward to working with the General Assembly, leaders, and partners to build a stronger future for all students, so that regardless of zip code, every young person has access to a well-supported, high-quality, equitable public education. 

### 

Funding Illinois’ Future is a geographically diverse coalition of parents, civic and faith leaders, and educators that remains steadfast in its mission: to ensure that every student in Illinois has access to a high-quality, fully funded education. We celebrate this progress and thank the Governor and the General Assembly, while recognizing the journey ahead. Our advocacy will not waver until every school in Illinois has the resources it needs and every student receives the education they deserve.