104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2936 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED: 105 ILCS 5/17-1.5 Amends the School Code. Provides that a school district shall not enter into an agreement that rescinds an employment contract entered into with an administrative employee in exchange for a payment that exceeds an amount greater than 6 time the monthly salary of the employee, due to the unsatisfactory performance of the employee's duties. LRB104 11939 LNS 22032 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2936 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED: 105 ILCS 5/17-1.5 105 ILCS 5/17-1.5 Amends the School Code. Provides that a school district shall not enter into an agreement that rescinds an employment contract entered into with an administrative employee in exchange for a payment that exceeds an amount greater than 6 time the monthly salary of the employee, due to the unsatisfactory performance of the employee's duties. LRB104 11939 LNS 22032 b LRB104 11939 LNS 22032 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2936 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED: 105 ILCS 5/17-1.5 105 ILCS 5/17-1.5 105 ILCS 5/17-1.5 Amends the School Code. Provides that a school district shall not enter into an agreement that rescinds an employment contract entered into with an administrative employee in exchange for a payment that exceeds an amount greater than 6 time the monthly salary of the employee, due to the unsatisfactory performance of the employee's duties. LRB104 11939 LNS 22032 b LRB104 11939 LNS 22032 b LRB104 11939 LNS 22032 b A BILL FOR HB2936LRB104 11939 LNS 22032 b HB2936 LRB104 11939 LNS 22032 b HB2936 LRB104 11939 LNS 22032 b 1 AN ACT concerning education. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing Section 5 17-1.5 as follows: 6 (105 ILCS 5/17-1.5) 7 Sec. 17-1.5. Limitation of administrative costs. 8 (a) It is the purpose of this Section to establish 9 limitations on the growth of administrative expenditures in 10 order to maximize the proportion of school district resources 11 available for the instructional program, building maintenance, 12 and safety services for the students of each district. 13 (b) Definitions. For the purposes of this Section: 14 "Administrative expenditures" mean the annual expenditures 15 of school districts properly attributable to expenditure 16 functions defined by the rules of the State Board of Education 17 as: 2320 (Executive Administration Services); 2330 (Special 18 Area Administration Services); 2490 (Other Support Services - 19 School Administration); 2510 (Direction of Business Support 20 Services); 2570 (Internal Services); and 2610 (Direction of 21 Central Support Services); provided, however, that 22 "administrative expenditures" shall not include early 23 retirement or other pension system obligations required by 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2936 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED: 105 ILCS 5/17-1.5 105 ILCS 5/17-1.5 105 ILCS 5/17-1.5 Amends the School Code. Provides that a school district shall not enter into an agreement that rescinds an employment contract entered into with an administrative employee in exchange for a payment that exceeds an amount greater than 6 time the monthly salary of the employee, due to the unsatisfactory performance of the employee's duties. LRB104 11939 LNS 22032 b LRB104 11939 LNS 22032 b LRB104 11939 LNS 22032 b A BILL FOR 105 ILCS 5/17-1.5 LRB104 11939 LNS 22032 b HB2936 LRB104 11939 LNS 22032 b HB2936- 2 -LRB104 11939 LNS 22032 b HB2936 - 2 - LRB104 11939 LNS 22032 b HB2936 - 2 - LRB104 11939 LNS 22032 b 1 State law. 2 "School district" means all school districts having a 3 population of less than 500,000. 4 (c) For the 1998-99 school year and each school year 5 thereafter, each school district shall undertake budgetary and 6 expenditure control actions so that the increase in 7 administrative expenditures for that school year over the 8 prior school year does not exceed 5%. School districts with 9 administrative expenditures per pupil in the 25th percentile 10 and below for all districts of the same type, as defined by the 11 State Board of Education, may waive the limitation imposed 12 under this Section for any year following a public hearing and 13 with the affirmative vote of at least two-thirds of the 14 members of the school board of the district. Any district 15 waiving the limitation shall notify the State Board within 45 16 days of such action. 17 (c-5) A school district shall not enter into an agreement 18 that rescinds an employment contract entered into with an 19 administrative employee in exchange for a payment that exceeds 20 an amount greater than 6 time the monthly salary of the 21 employee, due to the unsatisfactory performance of the 22 employee's duties. 23 (d) School districts shall file with the State Board of 24 Education by November 15, 1998 and by each November 15th 25 thereafter a one-page report that lists (i) the actual 26 administrative expenditures for the prior year from the HB2936 - 2 - LRB104 11939 LNS 22032 b HB2936- 3 -LRB104 11939 LNS 22032 b HB2936 - 3 - LRB104 11939 LNS 22032 b HB2936 - 3 - LRB104 11939 LNS 22032 b 1 district's audited Annual Financial Report, and (ii) the 2 projected administrative expenditures for the current year 3 from the budget adopted by the school board pursuant to 4 Section 17-1 of this Code. 5 If a school district that is ineligible to waive the 6 limitation imposed by subsection (c) of this Section by board 7 action exceeds the limitation solely because of circumstances 8 beyond the control of the district and the district has 9 exhausted all available and reasonable remedies to comply with 10 the limitation, the district may request a waiver pursuant to 11 Section 2-3.25g. The waiver application shall specify the 12 amount, nature, and reason for the relief requested, as well 13 as all remedies the district has exhausted to comply with the 14 limitation. Any emergency relief so requested shall apply only 15 to the specific school year for which the request is made. The 16 State Board of Education shall analyze all such waivers 17 submitted and shall recommend that the General Assembly 18 disapprove any such waiver requested that is not due solely to 19 circumstances beyond the control of the district and for which 20 the district has not exhausted all available and reasonable 21 remedies to comply with the limitation. The State 22 Superintendent shall have no authority to impose any sanctions 23 pursuant to this Section for any expenditures for which a 24 waiver has been requested until such waiver has been reviewed 25 by the General Assembly. 26 If the report and information required under this HB2936 - 3 - LRB104 11939 LNS 22032 b HB2936- 4 -LRB104 11939 LNS 22032 b HB2936 - 4 - LRB104 11939 LNS 22032 b HB2936 - 4 - LRB104 11939 LNS 22032 b 1 subsection (d) are not provided by the school district in a 2 timely manner, or are subsequently determined by the State 3 Superintendent of Education to be incomplete or inaccurate, 4 the State Superintendent shall notify the district in writing 5 of reporting deficiencies. The school district shall, within 6 60 days of the notice, address the reporting deficiencies 7 identified. 8 (e) If the State Superintendent determines that a school 9 district has failed to comply with the administrative 10 expenditure limitation imposed in subsection (c) of this 11 Section, the State Superintendent shall notify the district of 12 the violation and direct the district to undertake corrective 13 action to bring the district's budget into compliance with the 14 administrative expenditure limitation. The district shall, 15 within 60 days of the notice, provide adequate assurance to 16 the State Superintendent that appropriate corrective actions 17 have been or will be taken. If the district fails to provide 18 adequate assurance or fails to undertake the necessary 19 corrective actions, the State Superintendent may impose 20 progressive sanctions against the district that may culminate 21 in withholding all subsequent payments of general State aid 22 due the district under Section 18-8.05 of this Code or 23 evidence-based funding due the district under Section 18-8.15 24 of this Code until the assurance is provided or the corrective 25 actions taken. 26 (f) The State Superintendent shall publish a list each HB2936 - 4 - LRB104 11939 LNS 22032 b HB2936- 5 -LRB104 11939 LNS 22032 b HB2936 - 5 - LRB104 11939 LNS 22032 b HB2936 - 5 - LRB104 11939 LNS 22032 b HB2936 - 5 - LRB104 11939 LNS 22032 b