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Education

Illinois State Education Budget Sees Cautious Optimism with $15.85 Billion Allocation for Fiscal 2026

Strategic Insights

— 2 min read

The Illinois State Board of Education's announcement of a $15.85 billion education budget for fiscal 2026 has sparked cautious optimism among Sterling Public Schools as the district prepares for the allocation of its funds under the state's evidence-based funding formula. Despite a decline in the overall state education budget due to the sunset of federal COVID-19 relief funds, the state increased General Fund support for public education by almost $279 million and added $307 million to the EBF formula. The EBF model assigns school districts to four tiers based on their funding gaps, with Tier 1 districts receiving the largest share of new state education dollars.

Key Takeaways:

  • The Illinois State Board of Education announced a $15.85 billion education budget for fiscal 2026, which includes a $307 million increase to the EBF formula.
  • Sterling Public Schools is awaiting final details of its allocation under the state's evidence-based funding formula and is preparing for the possibility of reduced funding due to shifting from Tier 2 to Tier 1.
  • The district's Director of Finance, Matthew Birdsley, noted that last year, SPS received just under $300,000 in additional Tier funding, and this year, he has projected about $250,000 in additional funding, which would result in a $50,000 surplus in the Education Fund.
  • SPS is emphasizing long-term sustainability and is preparing for uncertainty with conservative planning, focusing on a 3- to 5-year projection model.
  • The district's transportation fund is expected to have a $25,000 surplus this year despite a reduction in mandated categorical funding for transportation.
  • SPS has invested in one-time purchases, such as updated technology and specialized instructional tools, during the pandemic and has avoided layoffs or program cuts.
  • The district continues to receive federal grants from Title I and IV to support literacy, math intervention, and school safety, but is awaiting Title II funds, which it plans to cover with local funds if necessary.

Statistics:

  • $15.85 billion: Illinois State Board of Education's education budget for fiscal 2026
  • $307 million: Increase to the EBF formula
  • $279 million: Increase in General Fund support for public education
  • $50%: Share of new state education dollars allocated to Tier 1 districts
  • 49%: Share of new state education dollars allocated to Tier 2 districts
  • $300,000: Additional Tier funding received by SPS last year
  • $250,000: Projected additional Tier funding for this year
  • 80%: Proportion of the SPS budget tied to salary and benefits
  • $25,000: Expected surplus in the Transportation Fund

Sources:

  • "ISBE Announces $15.85 Billion Education Budget for Fiscal 2026" by The Daily Gazette (Sterling, Ill.)
  • "Sterling Public Schools: SPS Budgets" by The Daily Gazette (Sterling, Ill.)

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