ISBE’s New EBF Spending Plan Report: Here’s What to Know and Why It’s Important

Since the Evidence-Based Funding (EBF) plan was passed in 2017, Illinois has invested nearly $2 billion dollars in new state funds in K-12 public education through the formula, and now eight years later the Illinois State Board of Education (ISBE) has released the Evidence-Based Funding Spending Plan Report: July 2024, an exciting new report that adds to the growing understanding of how these new funds were spent across the state. 

Research shows that money matters in education and that evidence-based, sustained investments in our students on things like reducing class sizes, adding interventionists, and providing student wellness supports have direct impacts on students’ outcomes. So it is no surprise that advocates and lawmakers have long been eager to see how these substantial new investments through EBF are being spent in schools. We saw early indications of how strategically districts were investing these new dollars through the EBF 5 Year Evaluation released in 2022, but that report looked at a small subset of districts.  

A key part of the EBF legislation requires district to complete, as part of their annual budget submission, an EBF Spending Plan that describes the strategic investments they intend to make with state funds and their process for determining these allocations. Since their implementation in 2018, while community members could explore each individual district’s plan separately, making sense of the spending plans at the state level was not possible. 

This year’s report is the first time that we are able to see the state’s findings on how districts across the state invested the new tier funding from FY2025. A few highlights of the report: 

• School districts were most likely to prioritize improving programs, curriculum, and learning tools or expand pupil support services like social workers. 

• Districts engaged with a variety of stakeholders to inform allocation of new EBF dollars – with principals, special education program directors, and school board members as the most frequently cited. 

• District leaders most frequently used educator shortage, retention, and recruitment data to assist in prioritizing new funds. 

• Core Teachers, Specialist Teachers, and Instructional Materials were the three most common investments. 

• On average, districts spent 71% of Tier funding on core investments (i.e., core teachers, instructional facilitators, nurses, etc.) 

• District leaders most often invested funds designated for English Learners (EL) in EL Intervention Teachers and EL Pupil Support Staff (i.e., nurse, social worker, family liaison personnel, etc.) 

The Evidence-Based Funding (EBF) Formula helps the state understand what a district needs to adequately and equitably support their students and bolster student outcomes. The evidence that undergirds the formula is clear: smart investments rooted in the research can have clear and meaningful impacts on students. The EBF Spending Plan Report and individual spending plans allow for community members to identify whether districts are investing their resources in the most strategic way and engage more fully in the budgeting process.  

“The EBF Spending Plan report and individual spending plans allow for community members to identify whether districts are investing their resources in the most strategic way and engage more fully in the budgeting process. ”

 As we move into budget season, it is more important than ever to dig into the wealth of information we have at our disposal – district spending plans, statewide reports, the ISBE Report Card – and urge both state leaders to continue increasing investments in EBF and district leaders to highlight the powerful work being done with these investments.  

In a new Funding Illinois’ Future blog, learn how Illinois educators are accessing ISBE’s spending plan tool to understand how new EBF dollars are being invested in their districts. 

Kelsey Bakken is a Senior Policy Advisor for Advance Illinois.

Five Things To Know About SB3965

Illinois’ future depends on a higher education system that is adequately resourced and able to provide affordable, high-quality programs to college students from every background and corner of the state. To date, however, many institutions are dramatically underfunded, resulting in public universities having to advocate for their own funding with no transparency on the amount of funding each university receives or why they receive it. And while institutional funding often sees across-the-board increases or decreases, the current funding approach does not take into account student needs, actual costs, or institutional revenue. It is merely ensuring that all institutions receive the same percentage increase on their prior funding, further entrenching inequities rather than solving them.

The solution? SB3965, the Adequate and Equitable Funding Formula for Public Universities Act. This new bill represents the next step toward an Illinois public university funding approach that focuses both on ensuring institutions have the funding they need to support their unique missions while ensuring they have adequate funding to serve their diverse student populations and build adequacy, equity, stability, and accountability and transparency into the process. The formula centers students by considering the various factors that contribute to their success and funds institutions with those evidence-based insights in mind.

But that’s not all. Investments made through the Adequate and Equitable Funding Formula for Public Universities Act are poised to strengthen enrollment, increase completion rates, and reduce the time it takes to complete degree-obtaining programs. It is an innovative approach to postsecondary funding that will transform our system for the better. So, here are five things to know about SB3965.

1. It calculates a unique Adequacy Target for all eligible public institutions that incorporates student need. Instead of political negotiations driving distribution decisions, the formula factors in the costs needed to support individual student needs for critical academic and student support services. This ensures that students will have the programs, services, and resources they need to be successful.

2. It aims to close equity gaps. Understanding that there continues to be deep and persistent gaps among some student populations compared to their peers in the state, the formula addresses those gaps through a number of components. Adjustments throughout the formula are made in a data-driven manner that looks at the current gaps in enrollment and retention for targeted student groups and adjusts the funding needed accordingly. Through student-needs adjustments and funds for universities to provide holistic supports, the formula may help to close equity gaps in enrollment, persistence, and graduation.

3. It considers the uniqueness of our public universities. This proposed formula factors in the diverse and specific needs of different institutions through institution-level adjustments. For example, smaller institutions would get an adjustment to address the fact that they cannot take advantage of economies of scale. There are also adjustments based on the level of research each institution engages in. Additionally, universities that serve large concentrations of students who have been historically underrepresented from our university systems will receive an additional weight to support these students.

4. It embeds accountability and transparency into Illinois’ public university funding. SB3965 includes recommendations for an innovative Accountability and Transparency Framework to increase transparency from the start. Spending plans and reporting ensure that new funds are targeted towards critical academic and student support services. By creating this kind of review committee, it confirms that universities are making progress toward their goals and sees to it that new dollars are spent on resources that are shown to close equity gaps

5. It’s setting the tone for the whole country! Illinois would be the first to implement an evidence-based adequacy model that accounts for the true costs of serving the students in our state, moving away from base-plus models that perpetuate inequities and from performance-based funding models that negatively impact outcomes for students of color and students from low-income backgrounds.

Read more about SB3695

Passing and funding this bill are critical and will result in an estimated $1.4 billion in additional funding over 10-15 years to ensure all universities have adequate resources, over 29,000 additional university graduates moving through the system, and more than $6.3 billion in additional state taxes paid over the lifetime of these graduates.

Racquel Fullman is the Communications Coordinator for Women Employed, a core member of the Coalition for Transforming Higher Education Funding. 

The Coalition for Transforming Higher Education Funding is a group of like-minded individuals and organizations across Illinois who believe that by advancing a public university funding model that prioritizes racial and socioeconomic equity, then we will see statewide increases in higher education equity; through better-resourced institutions serving more representative student populations, more resources directed to colleges serving Black, Latinx, low-income, rural and first-generation college students, and increased investment in higher education. For more information, visit transformhigheredil.org.