Advance Illinois Priorities for FY27

The General Assembly is midway through a legislative session amid a rapidly shifting education landscape—long-standing federal education investments face growing uncertainty, drastic changes to the infrastructure and responsibilities of the Department of Education, and key national data and accountability systems are increasingly at risk. At the same time, changes brought on by OBBBA, rising inflation and mandated costs, and fiscal constraints continue to put pressure on the state budget.  

In this environment, Illinois cannot afford to retreat from progress. The state must step forward – protecting core investments, strengthening data systems, and ensuring that hard-won reforms are implemented with fidelity and sustained over time. The Illinois State Board of Education and the Governor put forth a strong budget proposal – one that grows the Evidence-Based Funding (EBF) formula and highlights the significant need of the Mandated Categoricals (MCATs) — it also sustains many key investments that are proven to strengthen the educator pipeline and provides additional statewide resources for Whole Child supports. At the postsecondary level, despite the fact state higher education agencies requested $50 million new dollars to expand and bolster state financial aid systems—a critical investment as federal financial aid becomes increasingly unstable – the Governor’s budget recommendation held those funds flat. Notably, IBHE and the Governor’s Office asked for a 3% increase for public universities and proposed that it be distributed equitably rather than evenly – a recommendation they have made for the last 4 years. We applaud IBHE for their continued commitment to a more equitable distribution, but after decades of disinvestment and a 1% increase in FY26 – our public universities are struggling, and these minimal investments will put even more strain on university budgets and drive up tuition. 

Over the past several years, Illinois has laid critical groundwork: a stand-alone Department of Early Childhood, sustained investments in EBF, a roadmap for rational public university funding, strategic investments in the educator pipeline, and expanded student supports. The challenge before lawmakers in 2026 is not whether these programs are necessary – but whether the state can and will continue necessary investments amidst increased federal upheaval. 

Education remains Illinois’ most powerful long-term economic and workforce strategy – and Illinois has kept equity at the core of their work. As policymakers make difficult choices about scarce resources - a projected $2 billion dollar budget shortfall - we urge the state to remain steadfast and continue its focus on the evidence-based and data driven investments that deliver lasting returns for students, communities, and the state as whole.  

Advance Illinois Priorities for FY27

ADEQUATE & EQUITABLE FUNDING ACROSS THE BIRTH–20 CONTINUUM

A strong education system requires a coherent Birth–20 (B–20) funding strategy that ensures every stage of learning—from early childhood through higher education—is adequately and equitably resourced. Each sector depends on the one before it, and decades of underinvestment and inequitable allocation have limited opportunity for far too many students. 

Early Childhood: Investing in IDEC and Closing the Gap

The creation of the Illinois Department of Early Childhood (IDEC) represents a historic opportunity to build a more equitable, efficient, and transparent early childhood system. That opportunity must now be matched with sustained investment. 

Accordingly, this legislative session, we are advocating to: 

• Secure at least a 14% increase in early childhood education and care funding in FY27, aligned with adequacy targets identified by the Governor’s Funding Commission. 

• Support and strengthen IDEC’s development of a unified, predictable, and streamlined funding model. 

Smart Start Illinois was a critical down payment. Reaching adequacy will require continued, intentional investment. 

K–12: Protecting EBF and Addressing Mandated Categorical Proration

The Evidence-Based Funding (EBF) formula remains Illinois’ most effective tool for closing historic inequities in K–12 education. While progress has been made, three out of four Illinois students still attend underfunded districts. Persistent underfunding of Mandated Categoricals—resulting in districts receiving as little as $0.32 on the dollar for free and reduced lunch and $0.72 for special education private tuition—has created nearly $1 billion in statewide gaps. This proration undermines EBF by forcing districts to divert student-centered dollars to cover basic required services. Advance Illinois urges the state to: 

• Invest $450 million in new EBF funding in FY27. 

• Increase Mandated Categorical (MCAT) funding by $100 million to reduce harmful proration in critical services. 

Higher Education: Turning a Roadmap into Reality

Illinois now has a clear blueprint for reforming public university funding through the Adequate and Equitable Public University Funding Act (SB13/HB1581). The priority in 2026 is to make this bill a reality. Advance Illinois will advocate to: 

• Pass SB13/HB1581 establishing the Adequate and Equitable Funding (AEF) formula. 

• Appropriate at least $135 million in new funding to the formula in FY27 to move universities toward adequacy over the next 10–15 years. 

• Increase MAP funding by no less than $70 million to eliminate proration and restore its ability to cover a meaningful share of tuition and fees. 

Institutional funding and student financial aid must advance together to ensure affordability and access for students statewide. 

A STRONGER, MORE DIVERSE EDUCATOR PIPELINE

Illinois has made meaningful progress in strengthening and diversifying its educator workforce, but shortages persist across regions, subject areas, and leadership roles—particularly as federal investments become increasingly unstable. 

Advance Illinois will continue advocating for a comprehensive, coordinated approach to recruitment, preparation, placement, and retention by: 

• Continuing funding for proven alternative and early pathway programs, including Golden Apple, TFA, CTE pathways, and principal recruitment. 

• Expand programs that build and diversify the early childhood workforce, including ECACE and apprenticeship pathways, while promoting fair compensation. 

• Maintaining $8 million for Teachers of Illinois scholarships. 

• Invest in critical programs to strengthen the educator workforce like teacher mentoring and induction. 

WHOLE CHILD SUPPORTS

Student mental health and trauma-responsive supports remain urgent priorities. While federal stimulus funds catalyzed progress through programs like RSSI and the SEL Hubs, Illinois has wisely preserved key initiatives beyond their expiration. Now these efforts must become systemic and sustainable. Advance Illinois will advocate to: 

• Develop a reliable statewide strategy to fund trauma-responsive supports, including investments such as $2 million for RSSI. 

• Support implementation of the Universal Mental Health Screening initiative, including $2 million in implementation funding. 

• Continue advancing expectations that all districts become trauma-informed and healing-centered environments. 

DATA AND RESEARCH

As federal data systems face uncertainty and national reporting practices evolve, Illinois must lead by strengthening its own data and research infrastructure. Sound policymaking requires timely, accessible, and actionable information and transparency builds trust, and data-driven decision-making is essential to advancing equity. We will continue to support investments in our data and research capabilities as state: 

• Invest in agency capacity and fully fund the Illinois Longitudinal Data System (ILDS). 

• Establish a long-term governance and budget strategy for ILDS, including a clear organizational home, advisory structures, staffing, and a dedicated budget line. 

• As needed - develop a state data and research agenda to safeguard and replace critical federal data sets that may lapse or become unavailable. 

Illinois has built the framework for a more equitable B-20 education system. The task now is to protect those gains, fund them responsibly, and ensure they deliver measurable results for students and communities – especially as the federal role evolves. 

With sustained commitment and strategic investments, Illinois can continue leading the nation in building an education system that prepares every learner for college, career, and civic life.