Governor Quinn signed a bill giving the state's education nearly $9-billion in funding for the 2014 academic school year.
Lawmakers approved a measure earlier this month that would avoid cuts to elementary, secondary, and higher institutions.
The budget keeps funding for bilingual education, early childhood and transportation but the current funding is only 89% of what the state allows.
"But the bottom line is we don't have enough money for out schools in Illinois, for all our education and that's due to the fact that we've had a squeeze by the pension system that is required by law to invest in," Governor Pat Quinn said.
Quinn says education funding is suffering because of the pension crisis.