Eye On Illinois: Eventually state budgets should fully fund mandated spending

Eventually, hopefully, change will come.

There are plenty of takeaways from Wednesday’s Capitol News Illinois story headlined: “Budget pressures could impact K-12 funding; State Board of Education gets briefing on fiscal landscape ahead.”

This is a surprise only to those not paying attention.

All state agencies have been on notice since at least Nov. 1, when the Governor’s Office of Management and Budget submitted its annual Economic and Fiscal Policy report (tinyurl.com/GOMB2024) including a projection estimated expenditures in fiscal 2026 “would exceed revenues by $3.173 billion.”

But signs were evident at least 12 months before in a different CNI story about the State Board of Education considering funding requests in preparation for the January legislative session.

Matt Seaton, ISBE’s chief financial officer, said in November 2023 the agency had fielded requests for extra money exceeding $1.7 billion.

“It does appear that revenue will be a little bit tighter in the next four to five years,” Seaton said then. “And with other state pressures, whether that be pension payments or what have you, it would be our anticipation that the budgets are going to start to restrict a little bit.”

So of course this year ISBE fielded an ask list approaching $2.2 billion. It’s worth noting GOMB’s figures assumed some increases in school spending, health care and pensions, but the upshot is unchanged: public schools, like pretty much every aspect of state government, could use more money than they’re getting.

There’s nothing wrong with asking, and the more we understand what isn’t being funded, the better we all can understand the priorities of the people we put in charge. All good and important discussions to have, but I’d like to narrow the focus to four letters: MCAT.

That’s shorthand for mandatory categorical spending. As in: state laws dictate what districts must do (in areas like meals or transportation) but legislators don’t fully fund those obligations. Districts have to follow the laws, which means they have to cough up the difference. ISBE estimates lawmakers would need to spend $142.2 million more in the next fiscal year just to fall short by the same percentage as this cycle.

Unfunded mandates aren’t unique to Illinois. Some flow downhill from Washington. It’s especially pernicious in school settings, often because lawmakers like to take credit for implementing policies they can sell as essential to developing our children while leaving local officials holding the bag.

But eventually, hopefully, change will come. Here, that means building budgets from the mandates up: If it’s required, fund it or change the requirement. All easier said than done, surely.

There’s wide disparity on what constitutes adequacy, but hopefully agreement that we’ll never prorate our way out of this mess.

• Scott T. Holland writes about state government issues for Shaw Local News Network. Follow him on X @sth749. He can be reached at sholland@shawmedia.com.