A typical school district spends about two-thirds of its budget on compensation for employees, about one-fourth on maintaining safe and comfortable buildings, and the remainder for equipment and supplies. School budgets address the functions shown in the first chart, which cover everything from paying teachers, to heating buildings, data processing, risk management, food service, transportation, bond payments, and many other activities.

Local school boards determine their budgets in an annual process prescribed by state law. Budget-making includes public hearings, posting of proposed budgets, and discussion by the school board. Illinois state law also establishes eight school district funds for the allocation of spending and an annual schedule for reporting of school budgets and actual expenditures.

Five and ten-year trends allow you to track changes in expenditures over time. Variations from year to year may reflect local activities such as building a new school, which would be reflected in a higher amount of expenditures from the Site and Construction Fund. Other changes may result from increases or decreases in state and federal funding and program mandates, as determined by the Illinois General Assembly at the state level and the U.S. Congress at the federal level.

• Understanding School Finance (Illinois Association of School Boards)

• School Budgets 101 (American Association of School Administrators)