Uncertainty is the mood around Lake County schools after President Donald Trump signed an executive order Thursday, March 20, to eliminate the U.S. Department of Education but local educators are starting to consider the economic impact.
Both Waukegan Community Unit School District 60 and North Chicago School District 187 rely on federal funds for a significant amount of their programs. They represent approximately 10.5% of revenue in District 60 — nearly $27 million — and 13% of North Chicago’s budget.
Though U.S. Secretary of Education Linda McMahon said in a Department of Education press release on Thursday, March 20, that funding for programs like special needs will stay, she was silent about how much states will receive. Illinois sends more tax dollars to Washington than it receives in return.
Local educators are now beginning to discuss the potential elimination or decline in federal funding for programs in places like Waukegan and North Chicago, so they will be prepared if and when the impact of the executive order is felt.
“We’re closely monitoring everything in the executive order and on the news feeds,” Gwen Polk, District 60’s associate superintendent for business and financial services, said Tuesday. “The board philosophy is we have community priorities and that is how we’ll respond.”
In both Waukegan and North Chicago, much of the federal funding goes to pay for the free breakfasts and lunches as well as an after-school snack in North Chicago. It is close to $9 million annually in Waukegan.
Polk said the meal funding is federal money distributed by the Illinois State Board of Education. District 187 Superintendent John Price said the meal programs were always easy to handle because of how they are organized.
“We’ve always taken it for granted, but now we will have to take it more carefully,” Price said.
Along with meals, Waukegan receives nearly $9 million in federal funding because the district is in an economically challenged area, and another approximately $4.5 million for students with special needs.
Price said his biggest worry is the impact on the aid the district receives from the Department of Education for educating children of military families at Naval Station Great Lakes. They represent approximately 11% of the student body districtwide. It is approximately $12,000 per student.
Occupying approximately a third of the land in North Chicago, the naval base generates no real estate taxes since it is federal government property. Impact aid payments help compensate for the cost of educating the children of military families.
“We are proud to educate children from the base,” Price said. “It is a core part of our mission. The reality is we need impact aid because the base is on federal land, which does not contribute to property taxes.”
While Price said he does not know the impact yet, Project 2025 — a program on which Trump bases many of his decisions — suggests giving military families vouchers to use to educate their youngsters as they see fit.
“That would be the same as a federal cut in costs because it will be a loss in funding,” Price said. “We need to have the seats ready for the military families when the school year starts.”
Price said District 187 has sufficient reserves to handle cuts in federal funding through the rest of the fiscal year, which ends June 30. Should reduced money from Washington become a reality, there will need to be reductions in future budgets.
In District 60, Polk said there are reserves to deal with the rest of the academic term. Budget discussions are already taking place for the 2025-2026 school year. The most important needs are taken first so priorities will be in place.
“The budget is a living document and we can adjust as needs change,” Polk said. “We will closely monitor the news feeds. We will serve our students with an expectation of excellence from all involved.”
