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Illinois School Funding: Modest Increase Expected for FY27

by Chief Editor December 19, 2025
written by Chief Editor

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SPRINGFIELD – Illinois Superintendent of Education Tony Sanders cautioned members of the State Board of Education Wednesday not to get their hopes up for any big increase in K-12 school funding next year.

With economic forecasts projecting little or no growth in state revenues over the next year and growing demands for increased spending in other areas of state government, Sanders said the budget proposal he plans to bring to the board in January is likely to be modest.

“I just want to level set for the board that as we bring in our budget proposal asking for an increase in education funding, it’s coming at a time there’s a lot of other fiscal pressures on state government,” Sanders said. “So we’re keeping that in mind in our preparation.”

Sanders’ comments came after the board heard a briefing on the state’s financial outlook for the year ahead as well as summary of all the requests the agency has received for increased funding.

For the current fiscal year, spending on elementary and secondary education is expected to total just under $11.2 billion, or about 20% of the state’s entire $55.1 billion General Revenue Fund Budget.

Officials from the Commission on Government Forecasting and Accountability, the nonpartisan fiscal staff of the General Assembly, told the board that economists are expecting weak job growth in the year ahead. They said that’s due in part to economic disruptions brought on by President Donald Trump’s tariff policy.

They also said lower interest rates could result in reduced revenue for the state. And there is great uncertainty about how much money the state can expect to receive from the federal government due to changes in federal budget policies.

“So, the bottom line overall is that without notable growth expected in the state’s primary resources, and with no significant one-time revenue streams on the horizon, … a relatively stagnant revenue outlook probably should be anticipated this fiscal year,” COGFA’s revenue manager Eric Noggle said. “So it’s not the best news for fiscal year ’27.”

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SPRINGFIELD – Illinois Superintendent of Education Tony Sanders cautioned members of the State Board of Education Wednesday not to get their hopes up for any big increase in K-12 school funding next year.

With economic forecasts projecting little or no growth in state revenues over the next year and growing demands for increased spending in other areas of state government, Sanders said the budget proposal he plans to bring to the board in January is likely to be modest.

“I just want to level set for the board that as we bring in our budget proposal asking for an increase in education funding, it’s coming at a time there’s a lot of other fiscal pressures on state government,” Sanders said. “So we’re keeping that in mind in our preparation.”

Sanders’ comments came after the board heard a briefing on the state’s financial outlook for the year ahead as well as summary of all the requests the agency has received for increased funding.

For the current fiscal year, spending on elementary and secondary education is expected to total just under $11.2 billion, or about 20% of the state’s entire $55.1 billion General Revenue Fund Budget.

Officials from the Commission on Government Forecasting and Accountability, the nonpartisan fiscal staff of the General Assembly, told the board that economists are expecting weak job growth in the year ahead. They said that’s due in part to economic disruptions brought on by President Donald Trump’s tariff policy.

They also said lower interest rates could result in reduced revenue for the state. And there is great uncertainty about how much money the state can expect to receive from the federal government due to changes in federal budget policies.

“So, the bottom line overall is that without notable growth expected in the state’s primary resources, and with no significant one-time revenue streams on the horizon, … a relatively stagnant revenue outlook probably should be anticipated this fiscal year,” COGFA’s revenue manager Eric Noggle said. “So it’s not the best news for fiscal year ’27.”

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