HB4299 104TH GENERAL ASSEMBLY

LRB104 17055 LNS 30470 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4299

Introduced 1/14/2026, by Rep. Jed Davis

SYNOPSIS AS INTRODUCED:

New Act

Creates the School Spending Efficiency and Relief Act. Requires each school district to undertake budgetary and expenditure control actions to ensure that administrative expenditures do not exceed 15% of the school district's total operating expenditures. Requires any school district with administrative expenditures exceeding 15% of its total operating expenditures to implement a mandatory annual reduction plan that reduces administrative expenditures by 1% for such time as is required to bring the school district into compliance. Prohibits any school district that is out of compliance from hiring additional administrative personnel. Requires each school district to post an annual budget report online. Allows a school district to increase its tax levy only if the average student enrollment increases by an amount proportional to the tax levy. Requires a school district to decrease its tax levy by a proportional amount whenever the school district's average student enrollment declines. Requires any new contract for a superintendent or assistant superintendent position to be made publicly available at least 30 days prior to approval. Requires any proposal by a school district to increase expenditures on outside consultants and any consultant contract in excess of $25,000 to be made publicly available at least 30 days prior to approval. Requires each school district to enact a budget that either maintains or increases instructional spending as a percentage of total school district expenditures. Provides for a State mandate relief block grant program and a voluntary statewide purchasing consortium. Makes other changes. Repeals the Act on January 1, 2032. Effective immediately.

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the School Spending Efficiency and Relief Act.

Section 5. Findings and purpose.

(a) The General Assembly finds that (i) State property taxes are driven primarily by school district spending and (ii) administrative and nonclassroom expenditures have grown faster than enrollment statewide.

(b) It is the purpose of this Act to establish enforceable caps, efficiency requirements, transparency measures, and levy alignment based on enrollment to reduce the burden on taxpayers without harming classroom instruction.

Section 10. Administrative spending cap.

(a) For the purposes of this Section, "administrative expenditures" has the same meaning given to that term in Section 17-1.5 of the School Code. However, "administrative expenditures" does not include expenses stemming from federally mandated positions, including, but not limited to, case managers, compliance officers, or special education administrators required by the federal Individuals with Disabilities Education Act, in which employees primarily perform the job duties required under federal law, as certified in writing by a school district. "Administrative expenditures" includes consultants hired to promote cultural competency or diversity, equity, or inclusion initiatives.

(b) For the 2027-2028 school year and each school year thereafter, each school district shall undertake budgetary and expenditure control actions to ensure that administrative expenditures do not exceed 15% of the school district's total operating expenditures.

(c) For the 2027-2028 school year and each school year thereafter, any school district with administrative expenditures exceeding 15% of its total operating expenditures shall implement a mandatory annual reduction plan that reduces administrative expenditures by 1% for such time as is required to bring the school district into compliance with this Section. Any school district that is out of compliance with this Section may not hire additional administrative personnel until compliant. Vacant administrative positions may only be filled after documenting necessity and obtaining school board approval at a public meeting.

(d) Subject to State and federal law, each school district shall post an annual budget report online on the school district's Internet website. The report shall display the percentage of the budget allocated for administrative expenditures and instructional expenditures for the current fiscal year, as well as the 4 previous fiscal years.

(e) A school district may not evade administrative spending caps under this Section by:

(1) reclassifying administrative roles as instructional;

(2) moving administrative costs to cooperatives, regional offices of education, or service agreements;

(3) renaming titles or reorganizing chart structures;

(4) outsourcing administrative functions to consultants; or

(5) splitting contracts to evade reporting thresholds.

(f) A school district that is in violation of this Section and fails to abide by the terms of the annual reduction plan under subsection (c) is subject to referral to the Auditor General, who may create a corrective action plan for the school district. A corrective action plan may include a requirement that the school district reduce the next tax levy by an amount equivalent to the prohibited expenditures in the preceding fiscal year. A school district may also be required to receive the approval of its regional superintendent of schools or intermediate service center for any proposed budget prior to the school board's approval of that budget. The county clerk may not approve any tax levy that has not been approved by the regional superintendent of schools or intermediate service center for any school district subject to this restriction.

Section 15. Enrollment-adjusted levy requirement.

(a) For the 2027-2028 school year and every school year thereafter, a school district may increase its tax levy only if the average student enrollment, as defined in Section 18-8.15 of the School Code, used to calculate the school district's latest evidence-based funding under Section 18-8.15 of the School Code increases by an amount proportional to the tax levy, subject to the Property Tax Extension Limitation Law.

(b) For the 2027-2028 school year and every school year thereafter, a school district shall decrease its tax levy by a proportional amount whenever the school district's average student enrollment, as defined in Section 18-8.15 of the School Code, declines.

Section 20. Superintendent contract reform.

(a) For the 2027-2028 school year and every school year thereafter, any new contract for a school district superintendent or assistant superintendent position shall be made publicly available on the school district's Internet website for a period of at least 30 days prior to approval by the school board. If any changes are made to the contract during the negotiation process, the version of the contract to be voted on by the school board must be made available in the same manner for at least 30 days prior to approval.

(b) For the 2027-2028 school year and every school year thereafter, no new superintendent or assistant superintendent contract may contain a provision that grants a silent or midterm automatic extension, inflation escalator, automatic raise, or automatic benefit increase.

Section 25. Consultant contract limitations. For the 2027-2028 school year and every school year thereafter, any proposal by a school district to increase expenditures on outside consultants, as well as any consultant contract in excess of $25,000, shall be made publicly available on the school district's Internet website for a period of at least 30 days prior to approval by the school board.

Section 30. Instructional protection measures. For the 2027-2028 school year and every school year thereafter, each school district shall enact a budget that either maintains or increases instructional spending as a percentage of total school district expenditures, and the number of funded positions that are directly responsible for pupil instruction must not be decreased except in cases of a decline in the school district's average student enrollment, as defined in Section 18-8.15 of the School Code.

Section 35. State mandate relief block grant program. Subject to appropriation, the State Board of Education shall establish a block grant program for the purpose of offsetting the cost of State mandates to school districts. A school district that applies for funding through the program must maintain compliance with the provisions of this Act to be eligible.

Section 40. Voluntary statewide purchasing consortium. Subject to appropriation, the State Board of Education shall establish a voluntary statewide purchasing consortium for the provision of insurance, supplies, transportation, technology, curriculum materials, and energy contracts.

Section 45. Liability. A municipality, county, regional office of education, intermediate service center, regional superintendent of schools, or county clerk acting in good faith in compliance with this Act is immune from any civil liability related to the enforcement of this Act.

Section 90. Repeal. This Act is repealed on January 1, 2032.

Section 99. Effective date. This Act takes effect upon becoming law.