Rockford Sun

School districts across Winnebago County held a combined $215.4 million in long-term outstanding debt as of fiscal year 2024, amounting to 28.9% of the area’s total allowable borrowing capacity, according to the Illinois State Board of Education.

Under Illinois law, districts may only borrow up to a certain limit based on their Equalized Assessed Value (EAV)—a standardized measure of taxable property used to determine legal debt caps.

Based on the school district's enrollment of 42,955 students, the countywide debt translates to approximately $5,014 per student as of fiscal year 2024.

The county includes 10 school districts, of which Rockford School District 205 held the most debt, totaling $154.6 million.

Rockford School District 205 ranked 11th statewide among all 851 Illinois districts reporting outstanding debt.

Among the school districts in Winnebago County, South Beloit Community Unit School District 320 used the highest percentage of its EAV-based debt limit at 8.8%, holding $9.5 million in outstanding debt with 912 students enrolled—approximately $10,407 per student. Winnebago Community Unit School District 323 ranked second, using 5.5% of its borrowing capacity with $12 million in long-term debt and an enrollment of 1,247— $9,637 per student.

Countywide, students identifying as white comprised the largest ethnic group in Winnebago County schools, accounting for 43.1% of the total enrollment. The second-largest ethnic group was Hispanic, comprising 25.3% of the student body.

The data was obtained by Wirepoints through a Freedom of Information Act request to the Illinois State Board of Education.

Illinois has enacted a law that changes the amount of debt school districts can issue. According to an analysis by Chapman, the new rules permit school districts to borrow more money than previously allowed. At the same time, the law modifies limits on property tax extensions that fund this debt. As a result, if districts take on more debt, local property taxes could increase to cover the additional costs.

The Illinois State Board of Education’s budget for fiscal year 2026 will increase from nearly $10.8 billion to about $11.2 billion. This includes a $307 million boost for K–12 schools, marking the smallest annual increase since 2020.

The agency has paused about $50 million in funding previously allocated through the Evidence-Based Funding formula for the Property Tax Relief Grant while reviewing its impact on local tax relief. Officials say the pause could affect the timing and amount of property tax relief available to taxpayers.

The annual reporting aims to increase transparency and accountability around school debt. Future reports will include 15 years of historical data, allowing residents to track long-term financial trends.

County Rank	State Rank	School District	Outstanding Debt	Percentage of Debt Limit Used	Percentage of EAV Used	Enrollment
1	11	Rockford School District 205	$154,642,382	36.7%	5.1%	27,268
2	215	Hononegah Community High School District 207	$15,546,401	23.5%	1.6%	1,822
3	270	Winnebago Community Unit School District 323	$12,017,073	39.6%	5.5%	1,247
4	301	Harlem Unit School District 122	$10,250,000	8.8%	1.2%	6,199
5	315	South Beloit Community Unit School District 320	$9,491,634	63.9%	8.8%	912
6	410	Kinnikinnick Community Consolidated School District 131	$5,661,953	19.5%	1.3%	1,712
7	493	Prairie Hill Community Consolidated School District 133	$3,680,447	30.4%	2.1%	783
8	560	Rockton School District 140	$2,323,092	10.5%	0.7%	1,603
9	598	Pecatonica Community Unit School District 321	$1,558,938	8.7%	1.2%	878
10	726	Durand Community Unit School District 322	$211,346	1.3%	0.2%	531