NW Illinois News

School districts across Stephenson County held a combined $63.8 million in long-term outstanding debt as of fiscal year 2024, amounting to 56.2% 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 5,795 students, the countywide debt translates to approximately $11,010 per student as of fiscal year 2024.

The county includes five school districts, of which Freeport School District 145 held the most debt, totaling $44.6 million.

Freeport School District 145 ranked 81st statewide among all 851 Illinois districts reporting outstanding debt.

Among the school districts in Stephenson County, Freeport School District 145 used the highest percentage of its EAV-based debt limit at 11.6%, holding $44.6 million in outstanding debt with 3,512 students enrolled—approximately $12,705 per student. Orangeville Community Unit School District 203 ranked second, using 7.4% of its borrowing capacity with $5.1 million in long-term debt and an enrollment of 300— $17,075 per student.

Countywide, students identifying as white comprised the largest ethnic group in Stephenson County schools, accounting for 60.9% of the total enrollment. The second-largest ethnic group was Black, comprising 15.5% 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	81	Freeport School District 145	$44,619,920	83.8%	11.6%	3,512
2	297	Dakota Community Unit School District 201	$10,473,951	51.9%	7.2%	746
3	428	Orangeville Community Unit School District 203	$5,122,528	53.9%	7.4%	300
4	568	Lena Winslow Community Unit School District 202	$2,158,951	10.6%	1.5%	825
5	610	Pearl City Community Unit School District 200	$1,427,271	14%	1.9%	412