Even while calling his proposed budget “austere” and speaking plainly about the yawning deficit he inherited, Illinois’ new governor, J.B. Pritzker, struck an optimistic chord when describing how he plans to plow more money into schools.
His fiscal year 2020 budget would allocate a total of $7.2 billion for K-12 funding, including an extra $25 million in addition to the mandated $350 million annual minimum increase under the state’s funding formula.
“There’s a focus here on trying to not only rebuild from the damage that was done over the last four years but also to set us up for growing the economy, which happens in part because of our investments in education,” Pritzker said, nodding to a nearly two-year budget stalemate under his predecessor, Republican Bruce Rauner, that left the state with billions in unpaid bills.
During Wednesday’s speech, the governor said the long-term solution to the state’s budget deficits was a progressive income tax that would take more money from Illinois’ wealthiest residents.
In the shorter term, though, Pritzker’s budget proposal includes an additional $25 million for Illinois schools, an increase of $21 million in special education grants, and a $5 million boost for career and technical education programs for high school students.
Also in the proposal: $50 million in need-based college grants, another $35 million in university scholarships, and $2 million to cover waived fees for low-income students taking Advanced Placement tests.
Pritzker’s budget would allocate an additional $100 million to the Early Childhood Block Grant. That would bring the state investment in early childhood education to $594 million next year.
The governor Wednesday also proposed freezing a tax credit for businesses and individuals who contributed scholarships for private schools. Critics argued the program cut into state income taxes that would otherwise help fund public schools. Supporters, including Rauner, said it was one of the few ways struggling families could afford private schools.
Pritzker noted that given Illinois’ economic reality, there is a limit to how much cost-cutting alone could do. Instead, he promised to pass a budget that would include an increase in funding across the board as a way to invest in the state’s future, with a particular focus on education.
“We must stop slashing programs that build future prosperity,” Pritzker said in his budget address. “Over the long term, we must make investments in education, livable wages, innovative human service programs and job training.”
In unveiling his budget, the governor spoke plainly about the state’s dire fiscal situation: a $3.2 billion budget deficit and $15 billion in debt from unpaid bills — an amount that is equal to funding “free four-year university tuition for more than 12,000 students,” he said.
Nearly two years without a state budget under the previous governor prompted a massive backlog of funding in the K-12 education budget that the state is still struggling to fill, on top of an $8.1 billion backlog of unpaid bills across state agencies.
A 2017 overhaul in the formula Illinois uses to fund schools put the state on a 10-year path to closing the more than $6.8 billion gap between what it spends on K-12 public schools and the projected cost of adequate school funding. In January, the state board of education asked for $15 billion in public schools funding.
“It’s a very teensy step and better an increase than not,” Wendy Katten with Raise Your Hand Action, a parent group advocating for public education, said of the increased funding for K-12 schools. “But that’s nowhere near the $7 billion that’s needed for basic adequacy, let alone the $2 billion needed for [Chicago Public Schools].”
Pritzker’s proposed additions are modest, to be sure, but unions representing teachers in Chicago and statewide, as well as disability advocates, said any additional investment in education is most welcome.
“It’s clear that he understands the importance of great public schools and higher education and is committed to fulfilling the state’s responsibility to invest in them,” the president of the Illinois Federation of Teachers, Dan Montgomery, said.
And the Chicago Teachers Union asked that Chicago Public Schools to use any extra state funding to lower class sizes and increase special education staffing.
“The increase in evidence-based funding over the statutory minimum recognizes that Illinois’ challenges with education funding equity are fundamentally rooted in the need to drive more resources to students, like those in CPS, who have suffered from decades of insufficient and unequal school funding,” Jesse Sharkey, president of the union, said.
Chris Yun, the education policy analyst with Access Living, which advocates for people with disabilities, said she was heartened to see a bump for special education funding, noting: “Students with disabilities are often forgotten because the number is much less than general education students. We have a long way to go, but this is just step one.”
Pritzker told Chalkbeat in October that contributing more money to education would require solving the state’s longstanding budget woes. At that time, Illinois was expected to enter fiscal year 2019 with a budget deficit of more than $1 billion. That figure has now more than tripled.
Its problems are compounded significantly by its pension responsibilities, making it increasingly difficult to allocate money to other needs, said Ralph Martire, director of the Center for Tax and Budget Accountability.
“The payments are jumping at levels our system can’t afford,” Martire said.
Pritzker on Wednesday said he would “smooth the pension ramp by modestly extending it,” which hints at a plan to push payments off further.
While Pritzker’s progressive taxation plan has a steady thrum of support from Democratic lawmakers, the measure has not yet passed the state legislature.
Pritzker acknowledged that his 2020 budget was built on a tax structure that he still considered regressive and said he hoped to change that going forward.
“Not only is our tax system unfair, it’s also inadequate to solve our long-term financial challenges,” he said. “Make no bones about it, I choose to stand up for working families and will lead the charge to finally enact a fair tax system in Illinois.”
Cassie Creswell, a board member of public education advocacy group Raise Your Hand Action, said the budget address was a positive indicator of Pritzker’s support for revamping taxation, but feared “the rates that will be proposed to make it politically palatable won’t make it the rate we need to fund stuff in the state.”