Government Funding for Education in Chicago

States and school districts get federal education funding through a number of formula-based and grant competitions. The amount varies significantly from state to state. The federal government provides around 12% of direct money for schools nationally.

In addition, the government has a large role in education. In the United States, state and municipal governments are primarily in charge of education. Governments, communities, and all kinds of public and private organizations create schools and colleges. Also, create curricula, and set admissions and graduation standards. Companies can raise money in three different ways: through retained earnings, borrowed capital, and equity capital.

Equally important, of all the money spent by public and private schools on activities, 84% goes toward government funding of higher education.

Education Funding in Chicago

The district’s audited Annual Financial Report is the source of these numbers. Local, state, and federal funding are the three main sources for school districts in Illinois. The proportion from each of these sources fluctuates based on a number of variables, including the district’s property prices, and state and federal programs.

However, it is legal for all kids in Illinois to attend school for free, but most public schools also charge fees for a variety of activities. Student activity fees are one example of these. As well as specific lab courses.

Additionally, CPS imposes property taxes annually to pay for the running of the public school systems. The Consumer Price Index (CPI) change or 5%, whichever is smaller, cannot be included in the amount that CPS requests through the Board of Education.

What Chicago Spends Per Student

For the 2023 academic year, CPS expects to spend $9.4 billion on 321,000 students. This equals a record-breaking $29,307 per student. The district spent $7.5 billion on an enrollment that was 40,000 students higher just four years ago. At that time, the average taxpayer expense per student was just about $21,000.

Moreover, each year, Chicago Public Schools spends $16,418 on each student. Also, it brings in $6,643,153,000 a year. In total, the district spends $586.3 million on other expenses, $10,354.8 million on education, and $4,650.4 million on support services.

Schools Underfunded in Chicago

In fact, there are hundreds of school districts in Illinois that are 30% underfunded, including CPS Property taxes that are imposed by CPS annually to pay for the running of the public school system. The Consumer Price Index (CPI) change or 5%, whichever is smaller, cannot be included in the amount that CPS requests through the Board of Education.

Furthermore, CPS has been facing decreasing enrollment and financing issues. Also, many low-income families of color are emigrating from the district. Over the course of 2019 to 2022, CPS lost close to 37,000 students.

Amount of Funding the United States Receives for Education

The federal government supports funding programs that are specifically administered by the states to a school districts like K–12 education. These initiatives include Part B grants under the Individuals with Disabilities Education Act. Since other government entities also manage some funding for education-related activities, the Department of Education handles the bulk of the funds. The federal government spends close to $79 billion annually on elementary and secondary education programs.

In addition, the US Department of Education calculates that the federal government contributes around 8% of the total cost of operating US public schools. The government is required to provide funding for education in order to cover each student’s remaining balance.

How Is Funding Determined?

Accordingly, the amount of money the board can collect from property taxes depends on the local property values and tax rates. A district’s available local resources and the total of all educational cost variables are covered by state money.

Therefore, Chicago funding is determined by the use of the Evidence-Based Funding formula. The majority of state cash is given to CPS and other Illinois districts. The EBF model uses a tiering approach to distribute additional funds, directing increased state education budget contributions to the districts that require them the most.

Written by Kelianexis Rodriguez

Sources:

The Chicago Public Education Fund: Powering progress in Chicago’s public schools

NEW AMERICA: Federal Funding

Wirepoints: Trapped in a death spiral: Chicago Public School spending hits record $29K per student as enrollment shrinks, outcomes plummet

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