HR0742 104TH GENERAL ASSEMBLY

HR0742 LRB104 20802 RMO 34330 r

HOUSE RESOLUTION

WHEREAS, The State of Illinois adopted the Evidence-Based Funding (EBF) model to equitably distribute state education dollars to school districts most in need, while protecting all districts through a hold-harmless provision; and

WHEREAS, Mandated Categorical (MCAT) funding is separate from the EBF model and does not include a hold-harmless provision, despite funding a portion of state-mandated local costs; and

WHEREAS, For many school districts, MCAT funding represents the single largest source of state funding; and

WHEREAS, MCAT funding supports six critical areas of state-mandated services, including special education private tuition, special education transportation, regular and vocational transportation, special education orphanage, regular education orphanage, and free lunch and breakfast programs; and

WHEREAS, As EBF appropriations have remained constant over time, the percentage paid to districts for MCAT reimbursements has steadily declined in the last four fiscal years, resulting in significant underfunding of mandated services; and

WHEREAS, The continued underfunding of MCAT reimbursements has significantly shifted the State's financial responsibility for mandated services onto local school districts, requiring districts to absorb costs that were intended to be shared with the State; and

WHEREAS, This cost shift has resulted in an effective reduction in overall state support for many Illinois school districts; and

WHEREAS, Reductions in Mandated Categorical funding undermine the intended equity impacts of Evidence-Based Funding, as Tier 1 districts have been forced to redirect significant portions of new EBF dollars to backfill MCAT reductions, thereby diminishing the positive benefits of EBF; and

WHEREAS, Persistent underfunding of MCAT forces districts to rely more heavily on locally generated revenue, particularly property taxes, to cover transportation and other ancillary service costs; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED FOURTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the General Assembly and the Governor to restore full and sustainable funding for Mandated Categoricals, ensuring the State meets its statutory obligations without shifting costs to local taxpayers; and be it further

RESOLVED, That we urge the State to provide greater transparency and predictability in MCAT funding levels, including consideration of hold-harmless protections similar to those provided under the EBF model; and be it further

RESOLVED, That we urge all future education funding discussions to account for the cumulative impact of underfunded categoricals, particularly transportation and special education costs borne disproportionately by districts; and be it further

RESOLVED, That we encourage all school districts to respectfully urge legislators to ensure that EBF in conjunction with MCATs ensure an equitable approach to education funding, one that recognizes both varying levels of student need and the State's obligation to fully fund mandated categorical programs.