Grundy Reporter

Illinois State Board of Education Finance and Audit Committee of the Whole met Jan. 14.

Here are the minutes provided by the committee:

Committee Chair Dr. Patricia Nugent brought the meeting to order at 2:03 p.m. Roll call was taken, and a quorum was present with six members attending in person. Dr. James Anderson attended via video conference. Roger Eddy and Dr. Anna Grassellino were absent. State Superintendent Dr. Tony Sanders also was in attendance.

Chair Steven Isoye stated that members would consider the participation of Dr. Anderson via video conference due to a personal illness. In accordance with the bylaws of the Illinois State Board of Education, the Board may permit a member to participate by other means if they cannot physically attend a meeting because of a personal illness.

Dr. Leak moved that the State Board of Education permit the participation of Dr. Anderson via video conference. Dr. Benson seconded the motion, and it passed by a unanimous roll call vote.

Members Present

Committee Chair Dr. Patricia Nugent

Dr. Steven Isoye

Dr. Donna Leak

Dr. Christine Benson

Dr. James Anderson (virtual)

Dr. Sherly Chavarria

Laura Gonzalez

Members Absent

Roger Eddy

Dr. Anna Grassellino

Staff Present

Dr. Tony Sanders, State Superintendent

Jo Ireland, Board Services Coordinator

Kim Clarke, Executive Assistant to the State Superintendent

Isabel Schoeman, Special Assistant to the State Superintendent

Kristen Kennedy, Chief Legal Officer

Dr. Kimako Patterson, Chief of Staff

Dr. Matt Seaton, Chief Financial Officer

Dr. Jason Helfer, Chief Education Officer – Instruction (virtual)

Jennifer Saba, Chief Education Officer – Operations (virtual)

Tassi Maton, Chief Internal Audit Officer

Melissa Oller, Chief Operating Officer

Edobor Efam, Chief Information Officer

Irma Snopek, Chief Policy and Communications Officer

Ann Whalen, Chief Advisor to Early Childhood Transition

Miguel Calderon, Chief Operating Officer

Dr. Nakia Douglas, Director of Special Education (virtual)

Dr. Ronda Dawson, Executive Director of Teaching and Learning

Madan Damodaran, Director of Software Solutions

Donna Schroeder, Supervisor of Software Solutions

Joyce Gronewold, Executive Director of Specialized Instruction

Emily Fox, Director of Educator Effectiveness

Marci Johnson, Director of CTE

Tom Bazan, Director of Budget and Financial Management

Michael Gum, Director of School Business Services

Dana Stoerger, Executive Director of Legislative Affairs

Dr. Nikki Combs, Director of School/District Improvement (virtual)

Derreck Langwith, Director of ROE/ISC (virtual)

Brian Houser, Principal Consultant of ROE/ISC (virtual)

Milton Leathers, Director of Accountability (virtual)

Dr. Tiffany Burnett, Executive Director of Safe and Healthy Climate (virtual)

Nick Heckel, Supervisor of School/District Improvement (virtual)

Rae Clementz, Executive Director of Data, Accountability and Assessment (virtual)

Samantha White, Co-Director of Government Relations (virtual)

Dr. Christine Paxson, Executive Director of Improvement and Innovation

2. Public Participation

Galesburg City Manager Eric Hanson spoke on Career and Technical Education (CTE) funding. He advocated for increased CTE funding as a critical factor in developing his city’s workforce. He expressed appreciation for the $10.3 million increase in funding for CTE in fiscal year 2025 and said the state needs to build on that momentum. He requested that the Board consider an annual increase of $10 million in funding to CTE as well as an additional $25 million in funding for infrastructure upgrades and the expansion of CTE facilities. Mr. Hanson explained that the Galesburg Area Vocational Center is crucial in the economic development efforts of his community and that investing in CTE offers substantial return on investment and uplifts students who grew up in poverty by increasing their likelihood of graduation and full-time employment.

Chair Nugent noted that Dr. Anderson must identify himself before speaking during the meeting as required by the Board bylaws.

3. Approval of Minutes: Dec. 17, 2024

Dr. Benson moved that the Finance and Audit Committee of the Whole hereby approve the Dec. 17, 2024, meeting minutes. Dr. Leak seconded the motion, and it passed by a unanimous roll call vote.

4. Superintendent’s Consent Agenda – January 15, 2025

Chair Nugent announced there would be a short presentation by Dr. Seaton and Tom Bazan regarding the Approval of the Fiscal Year 2026 Superintendent’s Budget Recommendation. She reviewed all consent agenda items and thanked the ISBE staff for their help in answering the questions from the last meeting. She also noted she had a suggestion for Board memos that she would make in the future.

Dr. Seaton gave a recap of the budget development process to date, including internal budget development, the Board’s budget hearings, state budget projection considerations, and now the completion of the superintendent’s budget recommendation. He stated that his team tried to balance the record number of budget requests received this year with agency needs related to strategic planning. Projections indicate that the state is entering a tight fiscal year and a $3.2 billion budget deficit for FY 2026. He added that the governor and General Assembly have historically been very supportive of funding education, even in more difficult financial times. He then gave a high level summary of the recommendations that ISBE will make for its FY 2026 budget, more specifically all of the changes in funding it will request. The asks included a $350 million statutory increase in Evidence-Based Funding (EBF), a $142.2 million increase for Mandated Categorical (MCAT) reimbursements collectively, a $75 million increase in Early Childhood Block Grants for the third year of the governor’s Smart Start initiative, a $1.3 million increase in CTE funding, a decrease of $434,000 for other programs, and the zeroing out of member initiatives as per agency practice. Overall, the FY 2026 General Funds budget recommendation will total over $11.39 billion, which is a $497 million or 4.6% increase from the FY 2025 appropriation. Dr. Seaton then presented a breakdown of how funding will be allocated amongst MCATs and noted the recommended amounts will keep proration steady, as increasing proration would cost significantly more.

Dr. Leak noted that in the chart shown that both the proration percentage and dollar amount for Illinois Free Lunch and Breakfast are the same across FY 2025 appropriations and the FY 2026 recommendation despite the total MCAT dollar amount in each year being different. She asked why that is the case. Dr. Seaton said that those claims have been fairly steady and thus the projections show them to be steady, but he said he could get more detail on what the projections look like. Dr. Leak asked again how the math works for this calculation. Dr. Seaton said he suspects this reflects an expectation that expenditures will not increase enough to change proration in this category, but he can investigate further. He added that costs of transportation MCATs are far exceeding incoming funding, which is leading to lower proration levels.

Dr. Seaton then reviewed the budget recommendation for assessments and stated that ISBE plans to keep the budget flat for assessments from FY 2025 to FY 2026. He added that there is $10.268 million in federal funding available to supplement the $40 million in state funding for assessments, so ISBE estimates spending over $50 million on assessments in FY 2026. He reminded to the Board that this is the first year that ISBE will be using the ACT and the new contract has led to increased costs, but there is adequate funding available to cover that increase. He moved on to discuss the superintendent’s recommendation of a $1.3 million increase to CTE funding, including a $5 million allocation for Education Career Pathways programs. He emphasized that this increased funding would allow ISBE to continue using the new CTE funding formula implemented in FY 2025 in order to serve districts most in need. Dr. Seaton then discussed other General Revenue Fund (GRF) programs, including that the budget recommendation includes the continuation of funding to early childhood education in line with the governor’s Smart Start initiative and the Teacher Vacancy Grant. He added that the recommendation has increased funding for Community and Residential Services Authority and District Consolidation Costs, while the budget maintains FY 2025 appropriation levels for Affinity Groups, Resilience Education to Advance Community Healing (REACH), Social-Emotional Learning (SEL) Hubs, the Student Care Department, and implementation of the Illinois Comprehensive Literacy Plan (and eventually a state numeracy/math plan). He clarified that REACH and SEL Hubs are primarily funded by Elementary and Secondary School Emergency Relief (ESSER) funds with some GRF funds; however, ESSER funds will not be available next year, and the budget recommendation only recommends the FY 2025 appropriations of GRF funds for these programs. Dr. Sanders asked for clarification that these programs will overall receive less funding this year, and Dr. Seaton said yes. Chair Nugent asked if there was information on the impact the funding decrease will have on those programs, and Dr. Seaton said he would need to investigate further. Chief of Staff Dr. Kimako Patterson said that both programs will be impacted and unable to expand further. Chair Nugent asked what the percentage decrease in funding would be, and Dr. Patterson said she could find that information. Dr. Chavarria emphasized that she would like to know the prior percentage of funding for these programs that came from ESSER funds and GRF. Dr. Leak wondered how the funding will be distributed across hubs and what factors would influence distribution. Dr. Seaton said the funding is currently distributed equally across hubs and his team did not yet have distribution models for the coming year, but he could provide that information in the future. Dr. Leak asked how the funding decrease and distribution will be communicated to districts utilizing these services. Dr. Sanders said that ISBE will work directly with the SEL Hubs to determine the best path forward.

Dr. Sanders additionally noted that the budget recommendation this year required some difficult decisions due to the tight fiscal projections. The loss of COVID-19 relief funding makes it difficult to maintain these programs at full capacity but there will be an effort to try to keep them in existence with available state funding. He acknowledged that the governor and legislature have been extremely dedicated to education funding, and it is fortunate that the Board is still able to recommend increases in the upcoming year. Dr. Seaton reviewed the CTE funding recommendation. He was asked if the lack of an inclusion of the much requested $25 million line item for CTE capital improvements is because that does not fall under ISBE’s purview or if it was simply not feasible. Dr. Seaton stated that ISBE received an abundance of budget requests for construction in general, but none were included in the superintendent’s budget request because they were not feasible this year. Dr. Benson asked if these construction requests could have been covered by ISBE had there been funds available. Dr. Seaton said that capital project funding usually comes from the Capital Development Board while the implementation is managed by ISBE. Dr. Chavarria requested a comprehensive overview of the gradual drop-off of ESSER funding and asked if there are any programs that have been completely funded by ESSER that will no longer be continued. Dr. Sanders said that there were a few programs that concluded last year and this year there are several, including teacher mentoring and principal mentoring. Dr. Seaton confirmed those are the two major ESSER-funded programs that will not be funded this year but emphasized that ISBE obtained GRF dollars for many ESSER-funded programs last year and hope to provide GRF dollars for this year as well. Dr. Chavarria said that it would be helpful at some point to receive a full list of how the ESSER funding has decreased. Dr. Seaton and Dr. Sanders said that would be possible. Ms. Gonzalez asked if there is anything to be done for successful programs like teacher and principal mentoring, should they want them to continue.

Dr. Seaton said that ISBE’s budget will not include additional funds for those purposes but he is sure there are other grant opportunities and local resources to fund those programs. Dr. Sanders added that districts that receive Teacher Vacancy Grant funds can use those dollars for mentoring purposes where they have a shortage. Chair Nugent asked if ISBE provides information to districts on grants they can complete on their own, emphasizing the importance of the REACH and SEL programs and her desire for them to continue receiving adequate funding. Dr. Patterson said that has been the practice in the past, and she promised to meet with the SEL Hubs to help determine their needs and communicate her findings with Dr. Sanders. Chair Nugent requested an update on those conversations. Dr. Chavarria asked if she understood correctly that these programs expect a decrease in funding this year. Dr. Patterson said yes and that she and Executive Director of Safe and Healthy Climate Dr. Tiffany Burnett communicated this with the programs in a meeting last month. Dr. Chavarria then asked how ISBE chose which ESSER-funded programs to continue to support with GRF dollars. Dr. Sanders said this year ESSER funding will not continue, and Dr. Chavarria clarified she is wondering why, for example, affinity groups will receive GRF dollars while teacher mentoring will not. Dr. Sanders said that anything that was shifted to GRF funding in the last fiscal year would remain with GRF this year, and that includes teacher and principal mentoring. Dr. Seaton confirmed this is accurate and that ISBE received a small amount of GRF funding for teacher and principal mentoring, REACH, SEL Hubs, and affinity groups last year. He continued that some of these programs were able to get GRF dollars and some were sustained by ESSER funding in the last year, but now anything funded by ESSER is not represented in the budget this year. Dr. Chavarria stated her desire to document how ISBE makes decisions on what programs to fund at the state level, primarily considering the question of evidence of impact.

Dr. Leak commented that she is aware of grant opportunities available to districts for teacher mentoring and wanted to be sure that individuals supporting mentoring work are still available. She shared her concern that local boards will assume they do not have funding for Illinois Education Association mentors and remove them from the system, allowing the mentors to pursue other work in lieu of this program. She stated that she is interested in clarifying what the alternative funding will look like so that districts can include funding for mentoring in their budgets and ensure mentors will be available. Ms. Gonzalez commented on the positive impact of the teacher mentoring program she has witnessed and how that influenced her earlier question.

Dr. Seaton highlighted that this is the last year that ISBE will receive COVID-19 relief funds and that the Board memo contains the amount of appropriation authority that will be requested per COVID line item. He noted that ISBE will be able to liquidate those relief funds until March so that it can continue to spend them down for the remainder of the fiscal year. He shared that there are three appropriations from other state funds that are no longer needed and have been removed. There is a new federal appropriation for electric school buses, and federal appropriations levels have been adjusted to ensure sufficient appropriation authority. He expected some changes in the federal appropriation line items and said they will be updated in the coming months based on information received from the federal government. He concluded with a timeline of the upcoming budget process, with the next step to be publishing the ISBE Budget Book in February 2025 to be shared with legislative partners.

Dr. Leak asked when ISBE will receive member initiative requests. Dr. Seaton said those requests come in late and ISBE does not usually see that information until after the budget has been published and passed.

5. Upcoming February Board Action Items

A. Contracts & Grants Over $1 Million – Approval of FY 2025 Continuation School Improvement Grants Director of School/District Improvement Dr. Nikki Combs discussed this item.

Chair Nugent asked where the $88 million requested is coming from. Dr. Combs answered that the funds come from FY 2021 and FY 2024 funds that were not expended. She added that the pandemic took place during FY 2021 so there were no newly designated schools, leaving additional funds to be spent down and this is the last year to do so. She further stated that the final expenditure reports received at the end of November and beginning December revealed funds that were not spent in FY 2024 that could be added to this upward amendment.

B. Contracts & Grants Over $1 Million – Approval of Truants’ Alternative and Optional Education Programs Grant Notice of Funding Opportunities/Request for Proposals

Director of ROE/ISC Derreck Langwith discussed this item.

Chair Nugent asked if there is data related to what entities have received these grants in the past and what their success has been using the funds. Mr. Langwith said that there is a list of who has received the grants in the past and he can pull that data based on how many years back Dr. Nugent would like to see. He stated that in each grant application applicants must set goals and report on those goals after the receipt of funds. Success also can be tracked via Illinois Report Card data. He explained that most metrics show these grants have been successful but the chronic truancy rate shows a 0.1% increase. Chair Nugent then asked if ISBE shares the successful programs with every district across the state. Mr. Langwith replied that there is no formal process in place currently but districts do reach out asking to see successful applications and ISBE will share those materials. He added that districts also are requesting the release of a professional development grant as part of this measure that would allow recipients to engage in professional development related to truancy interventions.

Dr. Chavarria requested additional information on the types of activities covered by these grant funds. Mr. Langwith articulated that how the funds are used is typically determined on a case-by-case basis based on what is causing the attendance issues. He listed examples of finding transportation for children to school, buying a student an alarm clock, and providing academic support. Dr. Chavarria asked what specifically a district that receives these grant funds would be doing to ensure a student is improving their attendance. Mr. Langwith reiterated that the interventions typically differ for each case but a common example at Regional Offices of Education (ROEs) is hiring a truancy interventionist. He offered to pull common interventions from grant applications for the Board. Chief of Staff Kimako Patterson asked Mr. Langwith to identify a list of specific activities to provide the Board within the Board Weekly Update. Dr. Chavarria clarified that she just wants to know what the money is being used for. Dr.

Leak provided a common example of districts using the funds to hire staff to make home visits and have the capacity to go into the field. Dr. Chavarria expressed an interest in connecting chronic absenteeism to truancy and better understanding how these funds are being used to address these issues. Dr. Sanders said that the agency can compile some of the best practices from school districts and ROEs that have submitted their applications and how they are monitored. Dr. Leak emphasized that there is a difference between truancy and chronic absenteeism and that these funds have targeted truancy while districts must use other funds to target chronic absenteeism. Dr. Chavarria stated it would be helpful to tease those two concepts out. Chair Nugent told Mr. Langwith that he can use his own discretion to select what years to pull this data from. Dr. Leak noted that data from 2020 and 2021 might be unique. Mr. Langwith said there might be a clearer continuum of data beginning after the pandemic ended.

Chair Nugent also wondered whether truancy issues that arose during the pandemic are still being properly addressed by ISBE.

C. Contracts & Grants Over $1 Million – Approval of Increased Funding to Illinois State University to Administer the Illinois Teaching Excellence Program

Director of Educator Effectiveness Emily Fox discussed this item.

Chair Nugent asked for a summary of expected outcomes from this funding. Ms. Fox said the expected outcome is to help Illinois State University to become more self-sustaining in administering this program. She noted that the funding amount it requested is much higher than the amount the agency is able to allot so her team is encouraging the university to seek legislative remedies to provide additional funding in future years, but she is hopeful that this additional funding will help ISU move toward self-sustainability.

Dr. Leak asked Ms. Fox to confirm that Table 2 in the memo provided to the Board shows the total number of National Board Certified Teachers for FY 2024 in the state and Table 3 showcases the number of new National Board Certified Teachers for FY 2024. Ms. Fox said yes and added that the tables provide context for the program. Dr. Leak pointed to an example comparing numbers in Tables 2 and 3 to clarify her point. Ms. Fox confirmed that Dr. Leak is reading the numbers correctly and that Table 3 only shows FY 2024 while Table 2 provides a wholistic look at the total number of National Board Certified Teachers. Dr. Leak asked if all of the teachers included in the tables are active in in the system right now, and Ms. Fox replied that this only indicates that their certification is active but they might not be actively teaching. Dr. Leak asked if some of the requested funding will go toward recruitment efforts, and Ms. Fox said yes. Dr. Leak encouraged Ms. Fox to communicate with Illinois State University that it should consider diversity in its recruitment efforts.

Dr. Nugent asked for clarification on the different categorizations included in Table 3. Ms. Fox explained that the categorizations correspond to the modules that an individual has completed to receive National Board certification: a new person has not completed any, a returning person has completed at least one module, a candidate labeled as retake is someone who has failed one of the modules and is retaking it to pass, and there are some individuals who are renewing their certificate when it is set to expire. Dr. Nugent asked if the category on the chart titled “maintenance of certification” corresponded with those renewing their certificate, and Ms. Fox said yes. Dr. Sanders confirmed there is a 10-year renewal period and clarified that Table 3 just shows teachers within certain categorizations in FY 2024 while Table 2 shows the overall number of teachers with National Board certification.

D. Contracts & Grants Over $1 Million – Approval of Intergovernmental Agreement with the Illinois Center for Transition and Work at the University of Illinois Urbana-Champaign

Director of Special Education Dr. Nakia Douglas discussed this item and the next two.

Dr. Chavarria commented that she has observed in general on materials provided to the Board that there is a list of activities under grants included without correlating expected outcomes or benchmarks that have been met or missed thus far. Dr. Douglas stated that one of the main goals of this grant would be to improve opportunities for students with disabilities and giving them real-world experience. She added that she can pull together more outcomes and goals.

E. Contracts & Grants Over $1 Million – Approval of Intergovernmental Agreement with Eastern Illinois Area Special Education for the Specific Learning Disabilities Support Project

Dr. Leak noted that the data provided to the Board reflects a significant number of special education students who additionally do not speak English as their first language, and she asked how those students are factored into the supports provided. Dr. Douglas replied that all materials in this project are being adapted into other language, and staff on the project are working hand in hand with ISBE’s English learner (EL) team members as well. Dr. Leak asked if the number of EL students in special education has increased in recent years and wondered if an increase in such students also leads to an increase in funds needed in these programs. Dr. Douglas answered that 25% of students with disabilities also receive some type of language services, and her team has seen that number increase drastically in recent years. She stated that cross-department discussions are underway to determine how to create a workforce of teachers that can effectively support these students.

Dr. Chavarria expressed appreciation for the data points provided in the memo and once again requested that original goals and benchmarks be included with these data points. She also noted that the memo states that contracts are contingent on satisfactory production of deliverables and asked if this contingency applied each year or only after FY 2028. Dr. Douglas said this contingency applies each year, deliverables are requested at the end of each three-year cycle, and the agency always has the opportunity to make a change if a contract is not meeting its standards. Dr. Chavarria requested to see the deliverables, if possible.

Chair Nugent noticed that the project provides specific resources for students with dyslexia and asked if it has considered developing resources for students with dyscalculia in line with ISBE’s upcoming numeracy/math plan, emphasizing the importance of such resources. Dr. Douglas said she is actively reviewing the project’s dyslexia guidance and will discuss whether dyscalculia fits within the scope of its work at her next meeting with the project.

F. Contracts & Grants Over $1 Million – Approval to Release and Award the Request for Sealed Proposals for the Behavior Assessment Training Project

Dr. Chavarria noted the following language in the memo: “Currently, no Local Education Agency meets the state’s criteria for significant discrepancy under Indicators 4a and 4b; however, Indicator 4 uses lagging data.” She asked Dr. Douglas for her interpretation of that statement. After requesting clarification, Dr. Douglas stated that she would need to review the data to determine the accuracy of that statement. Dr. Leak asked for more information on the districts using Indicator 4 lagging data, and Dr. Douglas said she would need to investigate further to determine their standing in the current year.

G. Contracts & Grants Over $1 Million – Approval to Enter into One-Year Intergovernmental Agreement with Northern Illinois University to Provide CTE Professional Learning Opportunities

Director of CTE Marci Johnson discussed this item.

Dr. Nugent asked Ms. Johnson to confirm that this agreement will only be active for one year to fill a gap in time before a Request for Sealed Proposals (RFSP) in 2027. Ms. Johnson said that is correct and that her team hopes to have the RFSP written this year to possibly have it awarded by fall and ensure an easy transition so there is no gap in service.

Dr. Chavarria asked if the funds are coming from federal Perkins V dollars that have been set aside, and Ms. Johnson confirmed that was so.

6. Internal Audit Updates

Chief Internal Audit Officer Tassi Maton led this discussion.

Ms. Maton said that there are no updates for the FY 2023 Statewide Single Audit but that ISBE has provided the auditing firm KPMG with all of the information it needs. She added that the FY 2024 Statewide Single Audit is progressing smoothly. She shared that her team had an exit conference regarding the FY 2024 Financial Audit and received a draft report that should be finalized by the end of the month. She promised to share any updates with the Board that arise before the next committee meeting. Ms. Maton stated that the FY 2023-24 Compliance Examination also is nearing completion and she expects a draft report for that audit within the next few weeks. She concluded with a discussion of the Internal Audit Charter, including its overall purpose and that it has been updated in compliance with the Global Internal Auditing Standards and now notes the change in the chair of the Finance and Audit Committee of the Whole. She noted that Chair Nugent and Dr. Sanders have both reviewed and approved the charter on behalf of the Board and that it is a requirement for it to be shared with the Board by June 30 each year.

Chair Nugent thanked Ms. Maton for her review and reminded Ms. Maton of their discussion regarding provision of a summary of internal audit at ISBE for incoming Board members. Ms. Maton said she will absolutely provide that and that she also provides it to new leadership within the agency.

7. New Business: Items for the Next Agenda

8. Next Meeting: Feb. 19, 2025

Dr. Leak reminded the Board that the next meeting will take place on a Wednesday. Board Services Coordinator Jo Ireland confirmed and noted that the plenary session will take place on a Thursday. Chair Nugent added that February Finance and Audit Committee of the Whole will begin at 2 p.m.

9. Adjourn

Dr. Chavarria moved to adjourn. Dr. Leak seconded the motion, and it passed by a unanimous roll call vote. Chair Nugent adjourned the committee 3:34 p.m.

https://www.isbe.net/Documents_Board_Meetings/20250114-FA-Minutes.pdf