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 Despite calls for increased education spending to make up for
learning losses associated with the COVID-19 pandemic, Illinois Gov. J.B.
Pritzker’s budget proposal keeps education funding levels flat for the coming
fiscal year.
Lawmakers have tried for years to throw more money at Illinois education to
improve academic outcomes, but funding isn’t the problem. Money is spent in the
wrong places, resulting in cuts to the classroom.
Funding earmarked for education continues to be diverted from classrooms and
spent on pensions and excess district-level administration. From 2000 through
2020, spending on teacher and administrator pensions increased by 200%, while
spending in the classroom rose just 20% for K-12 schools.
In reality, even if the governor holds education spending steady year over year
or increases spending through federal aid, fewer and fewer resources will make
their way to the classroom in the long term without structural reform.
At the state level, funding for education is allocated to both the Teachers’
Retirement System and the general education spending fund.
The state has promised to pay more than 75,000 teachers and administrator in the
TRS system over $1 million each. Of those retirees, roughly 33% will each
receive over $2 million. More than half will retire and start collecting
payments before age 60.
The problem results from less being paid into the system than is promised to
retirees. TRS only contains 40.5% of what is promised in payments, meaning the
pension debt is $80.7 billion and more than half of what Illinois owes its five
public pension systems.
Educators in the TRS system less than 30 years contribute on average just under
$90,000 but receive payouts on average of $1.5 million dollars during their
retirements. Educators with 30 years or more contribute over $113,000 on average
but receive over $2.3 million from TRS during their retirements.
To make up for the large gaps between contributions and promised payout, money
has to be diverted away from students and classrooms.
On top of the state’s pension problem, Illinois also spends too much money
employing too many administrators in charge of too many school districts.
Illinois leads the Midwest with 852 school districts. More than 9,000 school
administrators earn on average more than $100,000 annually, setting them up to
receive lifetime pensions of $3 million or more. More than half of school
districts in the state serve fewer than 1,000 students each.
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Illinoisans spend more than double the national
average per student just to cover administrative costs. In contrast,
California has three times the student population of Illinois but
spends nearly 40% less on administration.
These levels of administration redirect resources
away from students and towards administrator salaries and
retirements.
Maintaining similar levels of spending for the second year in a row
while pension obligations and administration grow effectively cuts
education spending on students.
Solutions to return this money to students and
classrooms begin with real pension reform. Pritzker has decided to
maintain “full required pension payment” obligations in the upcoming
budget, however maintaining current levels of growth of pension
payments is unsustainable for taxpayers.
Lawmakers should consider adopting a constitutional amendment to
allow for reductions in future benefit growth for current workers
and retirees which will bring future spending back in line with
realistic projections.
Second, lawmakers should support House Bill 7 which creates the
“School District Efficiency Commission.” This commission will be
tasked with creating a list of recommended district level
consolidations. Any recommendations must then be voted upon and
passed by a majority of constituents of both school districts
affected so one district cannot force consolidation on another.
Multiple levels of school district administration overburdens school
budgets and diverts money away from teachers and away from students.
Lawmakers have recognized this since 2019 when they unanimously
passed a similar measure sponsored by state Rep. Rita Mayfield,
D-Waukegan.
 Maintaining the status quo accepts increasing costs per student as
test scores underperform compared to neighboring states, and a state
rank 19th nationally for education.
Pritzker’s “increased investments in education” are going to a
pension system and district administration apparatus which causes
taxpayers more and leaves behind those who most need the money –
students and teachers.
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