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School districts feeling pinch from budget battle

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<p align="justify">In a typical year, the state increases the money it spends on public schools. But this year, government is anything but typical in Illinois.

<p align="justify">As Gov. Rod Blagojevich and lawmakers continue the budget battle they began last spring, school districts across Illinois face receiving fewer state dollars.

<p align="justify">Peoria public schools could lose $5.29 million over the school year, according to the Illinois State Board of Education. Springfield could lose $5.25 million. Rockford could lose $10 million.

<p align="justify">Lawmakers might consider the matter this week when they return for session. A bill that would rectify the problem by increasing the state's foundation level, the minimum that a school must spend on each pupil, is pending before the House.

<p align="justify">But until lawmakers approve the bill, ISBE says it will withhold $617 million in general state aid, spending authorized by the budget Gov. Rod Blagojevich approved.

<p align="justify">"This is the sad state of affairs and we're not the only ones in the boat," Rockford School Board President Nancy Kalchbrenner said. "We just continue to wait and wonder."

<p align="justify">State officials say they hope to resolve the matter by the end of October and are optimistic that schools will see their funding hikes. Lawmakers were supposed to complete the budget by May 31 so schools knew how much state funding they would get before the school year began.

<p align="justify">In late August, Blagojevich approved a spending plan authorizing Illinois to spend an additional $554 million this year on schools. But lawmakers still are debating whether to modify the foundation level, which helps determine the amount of state funding for each district.

<p align="justify">The foundation level is $5,334 a pupil. Schools reach the threshold through a combination of state and local funds. The state contributes more when a district's property tax base is relatively low, and it kicks in less when the property tax base is high.

<p align="justify">The bill pending in the House, known as a budget implementation bill, would raise the foundation level to $5,734, an increase of $400 a pupil. Until that bill passes, the state board says it can only spend last year's per-pupil amount, $5,334, even though the new budget authorizes the state to spend the additional money.

<p align="justify">If Blagojevich and lawmakers agree on the higher foundation level, the state board says districts would get the larger payments retroactive to the beginning of this fiscal year.

<p align="justify">But Friday, state Superintendent Christopher Koch wrote to local school chiefs that general state aid payments would decline beginning in November unless Blagojevich and lawmakers agree to raise the foundation level. Through October, the board intends to make general state aid payments at last year's levels.

<p align="justify">"We cannot continue to pay ... at (fiscal) 2007 levels past the second payment in October," Koch wrote.

<p align="justify">Lawmakers might contemplate the foundation level this week. All eyes will be on House Speaker Michael Madigan, D-Chicago. He will decide whether to call the budget implementation bill for a vote.

Staff writer Aaron Chambers may be reached at 217-782-2959 or achambers@rrstar.com.</font>