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 A new Illinois law will bring more transparency to school
district finances.
Gov. Bruce Rauner signed Senate Bill 3236 into law Aug. 10. The bill, sponsored
by state Sen. Andy Manar, D-Bunker Hill, requires school districts to report
administrative costs directly to the state, effective immediately.
Illinois currently spends among the most per pupil on education in the Midwest.
However, not all of those funds reach the classroom. A large portion goes to pay
for pensions, duplicative school district administrations and executive pay.
In fact, Illinois ranks eighth in the nation in administrative spending as a
percentage of education spending. A 2017 report by the Metropolitan Planning
Council found that Illinois school districts collectively spend $518 per student
– the second-highest in the nation – on “general administration.” This includes
costs for administrators’ salaries and benefits.
State law requires education officials to file school report cards annually with
the Illinois State Board of Education. These report cards include information
such as demographics, curriculum information, student progress and costs per
pupil. It will now also include costs associated with executive, administrative
and managerial functions.
 This new measure will make more transparent the administrative spending of
Illinois’ 851 school districts – a win for taxpayers, who are ultimately the
ones footing the bill. With more financial information easily accessible, local
taxpayers will be empowered to hold their school districts accountable.
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Administrative bloat is costly. In many Illinois
communities, taxpayers are seeing several school district
administrators earn six-figure salaries to provide duplicate
services. Take the city of East Moline, for example, where three
separate school districts employ superintendents who perform
identical duties, while earning between $100,000 and $200,000
annually.
Or take Belleville, where six separate school
districts have more than 200 public school employees earning more
than $100,000 annually. Since levying property taxes is the main
source of revenue for school districts, it’s no wonder Illinois
homeowners pay among the highest property taxes in the nation.
End-of-career salary spiking boosts the cost of pensions for school
district retirees. This, in part, can explain why pension costs are
consuming an increasing portion of education spending in Illinois.
Crowding out funds meant for the classroom, rising pension costs
drive local school districts to hike property taxes, which only
worsens Illinoisans’ high property tax burden.
Making school district administrative spending more transparent is
key to identifying some of the cost drivers behind Illinoisans’
sky-high property taxes. Building on SB 3236, state and local
lawmakers should take immediate steps toward real property tax
relief. This can be delivered through school district consolidation,
reducing overhead and administrative expenses, and reforming
Illinois’ broken pension system.
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