Illinois State Board of Education officials told the Special Education Funding Committee that the state’s evidence‑based funding (EBF) model sets an "adequacy target" for each district and directs new money to the districts furthest from that target.

ISBE Chief Financial Officer Matt Seton and Director Jason Hall described a model that began implementation in fiscal 2018 and has since consolidated five prior grants (three special‑education grants, English‑learner funding and general state aid) into a single adequacy framework. Hall said EBF now represents more than $8 billion and the General Assembly has committed roughly $300 million per year (annual appropriations vary) to move districts closer to adequacy.

How it works: ISBE determines an adequacy target for each district by summing 34 cost factors — staffing ratios, positions, and fixed per‑student investments — and adjusting for local cost differences. The system ranks districts by their ratio of available resources to the adequacy target and distributes new funding in four tiers, with 50% of new annual dollars targeted at districts furthest from adequacy (tier 1). For fiscal 2026 ISBE said 934 educational entities existed; 286 qualified for tier‑1 funding.

Special education and reporting: ISBE said special education investments are built into the adequacy targets (staff ratios and extra investments tied to student need). The agency also requires districts to report expenditures by category (low‑income, English learner, special education) and publishes data and calculation tools. ISBE staff noted that the evidence‑based model uses three‑year averaging and regionalization factors for cost differences and that tier‑cutoffs change with annual appropriations.

Categorical payments: ISBE officials also described mandated categorical appropriations that reimburse districts for specific services — for example, special‑education transportation and private facility/day‑school tuition — where appropriations sometimes require prorated payments if the total claims exceed the appropriation available that year.

Committee follow‑up: Lawmakers asked for examples of how tier cutoffs move with annual funding and for copies of ISBE’s online tools and data. ISBE said it would provide public calculation files and reporting templates.

Sources: Illinois State Board of Education presentation (Jason Hall, Matt Seton, Seth Whitworth) and committee Q&A (transcript).