Schools a step closer to state aid

January 9th, 2008 at 04:18pm Aaron Chambers

The Senate voted 54-0 Wednesday to accept Gov. Rod Blagojevich’s changes to the budget implementation bill, which is necessary for the state to release $617 million in general state aid to schools.

The House will now consider the governor’s veto of the bill and may vote as early as Thursday.

The dollars for schools were appropriated as part of the budget Blagojevich approved in August. That budget earmarked $554 million in new dollars for schools, including $315 million in general state aid, reimbursement for state-mandated services and other state support.

However, the State Board of Education won’t release the general state aid until Blagojevich and lawmakers also agree on a change in the foundation level. In fact, the state is actually doling out less in general state aid than it doled out last year.

The foundation level is the minimum amount that schools must spend on each pupil. It drives the state’s allocation of general state aid, particularly with respect to schools in districts with lower property tax bases. When local property tax payers contribute less money to schools, then the state must contribute more to help the schools reach the foundation level.

The budget implementation bill, commonly known as the BIMP, would hike the foundation level by $400 per pupil to $5,734 from $5,334.

Some background from the Register Star:

Without the change in foundation level, the State Board of Education says schools statewide will lose $302 million this year, compared to last year, thanks to other factors that adversely affect general state aid such as reduced attendance and higher property values.

With the change in the foundation level, the board says schools will gain $315 million, compared to last year. The difference is $617 million — cash the state board will withhold until the governor and lawmakers agree on the $400-per-pupil change.

In other words, the $617 million represents new money for schools, as compared to last school year, as well as money that schools did get last year. The state is giving schools fewer general state aid dollars then it gave them last year.

The difference between the amount of general state aid the state is now providing (less than last year) and the amount they would receive once the BIMP is approved (more than last year) is $617 million. If the BIMP is approved, and the foundation level is increased by $400, schools therefore stand to gain $617 million over their current, negative position.

State Board spokesman Matt Vanover adds in an e-mail:

The $617 million you reference is the swing from BIMP vs. non-BIMP for GSA. Because it takes less state funding to maintain the foundation level when local resources rise, about $300 million fewer dollars from the state would be paid out to school districts to keep them at FY 2007 level. However, it can not be said that it’s an increase of $617 million from 2007 to 2008, because the $300 million was already in last year’s budget.

Blagojevich proposed a series of technical changes to BIMP in his veto issued Friday. Among other points, the governor wants to expedite the distribution of special education dollars.

From the governor’s press release:

Under the BIMP bill, districts will get an additional $1,000 for each certified teacher and $700 for each non-certified staff member. Because of a drafting error, districts were not scheduled to begin receiving that money until FY 2009. If accepted by state lawmakers, Gov. Blagojevich’s amendatory veto means districts will get that money beginning in the next few weeks.

Vanover says the governor’s change on this point would mean another $50 million in special ed dollars for schools.

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