Rep. Sandra Pihos Files Bills to Improve Accountability for Issuance of Block Grant Funds for Chicago Schools

In response to learning the Chicago Public School System (CPS) was overpaid by nearly $235 million in Block Grant funds for the 2011-2012 school year, State Representative Sandy Pihos (R-Glen Ellyn) has filed a package of accountability bills that will prohibit the mistake from happening in the future, and ensure that CPS does not receive preferential treatment when it comes to the receipt and reporting requirements for the funds.

“I was shocked to learn of this gigantic error in grant funding,” said Pihos, who sits on the Appropriations Committee for Elementary & Secondary Education. “With education dollars in short supply and high demand, it troubles me greatly to know that CPS received almost double the amount of grant funds that their report claimed was deserved.” 

According to Pihos, the root of the problem can be traced to a lack of accountability with how grant money is sent to CPS and a failure within CPS to comply with reporting mandates required within the Illinois School Code. “Whereas every other public school district in the state gets reimbursed for services delivered, the law today allows CPS to receive their block grant money up front,” said Pihos. “For 2011-2012 CPS received $483.7 million in block grants, but provided only $249 million in student benefits. Whether it was an overpayment of funds or a situation where promised services were never delivered, the taxpayers of Illinois and the students from every other Illinois school district were shortchanged.”

For the last 18 years, CPS was not obligated to report Block Grant spending, which made it very difficult for the State Board of Education to track the efficiency of how CPS was spending the money. Two years ago the Legislature ordered CPS to begin reporting grant expenditures, but CPS failed to comply with reporting mandates. It was only recently that the report was received and the discrepancy was discovered.

“The stark contrast between CPS’s grant allocation and the actual submitted claims highlight the need for CPS grant funding reform,” Pihos said. “These bills address the apparent overfunding for educational services within CPS at its source, which is overfunding, a lack of compliance with reporting requirements, and special treatment given to CPS regarding Block Grant funds.”

Bills included in the Pihos package include:

Make CPS Submit Claims for Special Education Funding

HB3691: Removing special education services from the Chicago Block Grant would require the district to submit claims for annual reimbursement just like every other school district in Illinois. CPS received $222.8 million more for Special Education than actual claims in 2011-2012.

Hold CPS Accountable for Refusal to Submit Claims in a Timely Manner

HB3692: This proposal would withhold all federal and state funding due to CPS in the event that the district does not comply with the reporting procedures outlined in PA 97-238, which created the reporting requirements for Block Grant funding. Funding would be restored when compliance is achieved. CPS was not compliant with the disclosure requirement, forcing the State Superintendent of Education to threaten the withholding of funds and a designation of non-recognition status for the district.

Make CPS Funding Requirement Procedures the Same as All Other School Districts

HB3690: Repealing the preset allocation that CPS receives in Block Grants would require them to submit claims for spending to the State Board of Education, thus mirroring the requirements of every other district in the state.

“Every legislator, whether they represent the City of Chicago’s schools or one of the 867 other school districts in the state, should demand that grant money be allocated fairly and equitably,” said Pihos. “It is imperative that we correct these issues so that credibility with the Block Grant process can be restored.”