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Illinois loses out in first round of federal school stimulus funds

Suburban school districts' hopes for funding relief were dashed Monday when the U.S. Department of Education announced just two states netted stimulus dollars in the first round of the Race to the Top federal education competition.

Delaware and Tennessee beat out 14 other states, including Illinois, named as finalists last month.

The first-round money would have come at a critical time for local districts struggling to prepare next year's budget amid uncertain state funding.

"If we could've been an early-round winner, it could have been good news at a critical juncture," said Robin Steans, executive director for Advance Illinois, an education policy group.

Race to the Top will reward $4.35 billion over two rounds to states that promise to implement innovative education reform plans.

President Obama has requested an additional $1.35 billion that, if approved, would create a third round of competition. Illinois, which finished fifth among 16 states, requested $510 million in the first round.

Lawmakers and state board officials have spent the past several months changing education legislation and policies in the hopes winning funds.

The state's cap on the number charter schools has been raised. Teacher and principal evaluations are now required to be tied to student performance. The state board raised the bar for the basic skills test teachers take to get into their college of education's teaching program. The governor's P-20 Council, looking at aligning standards and curriculum in preschool through college, has been reconvened.

U.S. Secretary of Education Arne Duncan described a "significant natural break" between the applications of Delaware and Tennessee and the rest of the competition, with "statewide buy-in" for implementing reforms. Tennessee will receive about $500 million, Delaware $100 million.

According to the Department of Education's application score sheet, Delaware earned 454.6 points and Tennessee 444.2 points. Illinois had 423.8 points.

With at least $3.4 billion left, 10 to 15 states are expected to win in the second round, Duncan said.

Federal officials will collect a second round of applications for the grant program in June. Illinois intends to reapply, state board spokeswoman Mary Fergus said.

The second round will come with new restrictions, and Illinois can apply for a maximum of $400 million.

If Illinois nets second-round funds, half the money would go to the state board for various programs at the state level, and 50 percent would be allocated to districts that have signed memorandums promising to implement various reforms. According to the state board, 361 of 869 districts signed onto the plan in the first round. More than 60 of those districts are in the suburbs.

Naperville 203 did not sign onto the first round. Officials felt many other districts with higher percentages of low income students would be in line to get more money. The district has, however, expressed interest in the second round.

"We're hopeful the second round produces some real progress on some of the issues that we're looking into," Assistant Superintendent Tim Wierenga said. Money would be distributed to districts based on numbers of low-income students, the lowest performing schools. Among the 181 designated "lowest performing" schools are Elgin, Larkin and Streamwood high schools in Elgin Area School District U-46, Dundee-Crown High School in Carpentersville and Round Lake High School.

"Anything that helps to fund education at this point will be welcomed," U-46 spokesman Tony Sanders said. "At the same time, Race to the Top would require additional expenditures as well. We're still unclear as to how much funds we would receive as a district."

• Staff writer Melissa Jenco contributed to this report