School district mergers could cost Illinois $4 billion

Consolidation of some of the 800-plus districts sees little support, a panel finds.

By Christopher Wills
Posted Jan 08, 2012 

SPRINGFIELD — Merging the state’s 800-plus school districts into a more manageable number could cost nearly $4 billion, according to a recent report that may kill any chance that a commission looking for ways to improve Illinois education will recommend a major consolidation.

Members of the Classrooms First Commission said they see little support for a sweeping consolidation of school districts, which Gov. Pat Quinn proposed last February as a way to save about $100 million. His idea to merge the state’s 868 districts into just 300 was based on the potential savings that would come from reducing the number of school administrators.

But it didn’t account for the financial incentives that state law promises to merging districts — primarily additional money for salaries.

“An across-the-board, one-size-fits-all, we’re-going-to-force-you-to-consolidate proposal is not going to happen,” said one commission member, Sen. Linda Holmes, D- Aurora.

The commission’s leader, Lt. Gov. Sheila Simon, said the estimated cost “reinforces the idea that there’s not a quick-and-easy money-saving solution” for the entire state. “If we did everything all at once, the cost would undoubtedly be prohibitive.”

Lawmakers last year agreed to form the panel to review the governor’s idea and other possible ways of increasing schools’ efficiency and effectiveness.
It looked at a hypothetical consolidation — one that is smaller than Quinn’s proposal — and calculated that it could cost state government at least $3.7 billion over four years. That assumes all of Illinois’ individual high school districts and elementary districts are forced to merge into unit districts.

The full cost would be even higher because merging districts are also entitled to financial aid related to the schools’ budgets and state aid, according to the report by commission member Linda Riley Mitchell, chief financial officer for the State Board of Education. Mitchell did not have the information needed to estimate those expenses.

The report found that if the state went solely to unit districts that governed both high schools and lower grades, the switch would merge 478 separate districts into just 101. Of those, 10 would have fewer than 1,000 students and 29 would have 10,000 or more.

Switching to unit districts isn’t the only way to handle a broad consolidation plan, of course. Other options include merging all districts below a certain size or perhaps requiring individual schools to consolidate if they’re small or outdated. But those approaches would carry large price tags of their own.

Commission member David Luechtefeld, a Republican state senator from Okawville, said that even if requiring consolidation were a good idea, Illinois simply doesn’t have the money to pay those incentives — not when the state budget is “a disaster.”

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