IL
Illinois House Bill HB2966

Illinois 2025-2026 Regular Session

Illinois House Bill HB2966 Compare Versions

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1+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2966 Introduced , by Rep. Tracy Katz Muhl SYNOPSIS AS INTRODUCED: 105 ILCS 5/2-3.206 new Amends the School Code. Requires the State Board of Education to analyze the use of grant fund requests for a consolidation analysis or consolidation expenses in relation to the School District Reorganization Feasibility Studies. Requires the State Board to create a list of overlapping or bordering school districts with the most similar operating tax rates and percentage of adequacy funding per pupil. Requires the State Board to communicate to the superintendents and school boards of those school districts on the list that the State Board's analysis makes the school district a good candidate for the grant funds. Requires the school board to hold a public hearing to review the State Board's written communication and decide whether to apply for the grant funds. Requires the State Board to report to the General Assembly as to whether the school districts on the list applied for the grant funds, whether a grant was awarded, and what, if any, State Board action was taken in response to the grant-funded consolidation analysis. Requires the State Board to also provide to interested school districts a list of neutral parties to conduct an independent consolidation analysis with the grant funds. LRB104 11974 LNS 22068 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2966 Introduced , by Rep. Tracy Katz Muhl SYNOPSIS AS INTRODUCED: 105 ILCS 5/2-3.206 new 105 ILCS 5/2-3.206 new Amends the School Code. Requires the State Board of Education to analyze the use of grant fund requests for a consolidation analysis or consolidation expenses in relation to the School District Reorganization Feasibility Studies. Requires the State Board to create a list of overlapping or bordering school districts with the most similar operating tax rates and percentage of adequacy funding per pupil. Requires the State Board to communicate to the superintendents and school boards of those school districts on the list that the State Board's analysis makes the school district a good candidate for the grant funds. Requires the school board to hold a public hearing to review the State Board's written communication and decide whether to apply for the grant funds. Requires the State Board to report to the General Assembly as to whether the school districts on the list applied for the grant funds, whether a grant was awarded, and what, if any, State Board action was taken in response to the grant-funded consolidation analysis. Requires the State Board to also provide to interested school districts a list of neutral parties to conduct an independent consolidation analysis with the grant funds. LRB104 11974 LNS 22068 b LRB104 11974 LNS 22068 b A BILL FOR
2+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2966 Introduced , by Rep. Tracy Katz Muhl SYNOPSIS AS INTRODUCED:
3+105 ILCS 5/2-3.206 new 105 ILCS 5/2-3.206 new
4+105 ILCS 5/2-3.206 new
5+Amends the School Code. Requires the State Board of Education to analyze the use of grant fund requests for a consolidation analysis or consolidation expenses in relation to the School District Reorganization Feasibility Studies. Requires the State Board to create a list of overlapping or bordering school districts with the most similar operating tax rates and percentage of adequacy funding per pupil. Requires the State Board to communicate to the superintendents and school boards of those school districts on the list that the State Board's analysis makes the school district a good candidate for the grant funds. Requires the school board to hold a public hearing to review the State Board's written communication and decide whether to apply for the grant funds. Requires the State Board to report to the General Assembly as to whether the school districts on the list applied for the grant funds, whether a grant was awarded, and what, if any, State Board action was taken in response to the grant-funded consolidation analysis. Requires the State Board to also provide to interested school districts a list of neutral parties to conduct an independent consolidation analysis with the grant funds.
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311 1 AN ACT concerning education.
412 2 Be it enacted by the People of the State of Illinois,
513 3 represented in the General Assembly:
614 4 Section 5. The School Code is amended by adding Section
715 5 2-3.206 as follows:
816 6 (105 ILCS 5/2-3.206 new)
9-7 Sec. 2-3.206. School district reorganization feasibility
10-8 studies; grant program.
11-9 (a) The State Board of Education may award grants to
12-10 school districts for the purpose of incentivizing those
13-11 districts to conduct reorganization feasibility studies.
14-12 (b) To be eligible for a grant under this Section, the
15-13 board of the school district that is applying for the grant
16-14 shall:
17-15 (1) negotiate a proposed agreement to secure the
18-16 services of a third party consultant who will conduct the
19-17 reorganization feasibility study;
20-18 (2) adopt a resolution that is signed by the board
21-19 president of the district and calls for the initiation of
22-20 a school district reorganization feasibility study in
23-21 accordance with the terms of the proposed agreement and
24-22 any rules adopted by the State Board of Education; and
25-23 (3) submit the completed agreement form, the signed
17+7 Sec. 2-3.206. School district consolidation analysis. The
18+8 State Board of Education shall analyze the use of grant fund
19+9 requests for a consolidation analysis or consolidation
20+10 expenses in relation to the School District Reorganization
21+11 Feasibility Studies. The State Board shall create a list of
22+12 overlapping or bordering school districts with the most
23+13 similar operating tax rates and percentage of adequacy funding
24+14 per pupil. This list shall be long enough to use the available
25+15 grant funds, with an alternate list available.
26+16 The State Board shall communicate, in writing, to the
27+17 superintendents and school boards of those school districts on
28+18 the list that the State Board's analysis makes the school
29+19 district a good candidate for the grant funds. The school
30+20 board shall hold a public hearing, which may occur during a
31+21 regular or special meeting, to review the State Board's
32+22 written communication and decide whether to apply for the
33+23 grant funds. The State Board shall report to the General
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34-1 board resolution, and such other information as the State
35-2 Board of Education may, by administrative rule, require,
36-3 to the regional office of education or the executive
37-4 director of the intermediate service center for the
38-5 district for approval.
39-6 (c) Upon receipt of a complete application from a
40-7 district, the regional office of education or the executive
41-8 director of the intermediate service center shall either (i)
42-9 approve the agreement and send the agreement to the State
43-10 Board of Education or (ii) disapprove the agreement and return
44-11 the agreement to the district with a letter of explanation.
45-12 (d) From funds appropriated to it for that purpose, the
46-13 State Board of Education may award grants under this Section
47-14 to districts for which it receives an approved agreement under
48-15 subsection (c) for costs incurred by those districts to
49-16 conduct a reorganization feasibility study.
50-17 (e) To ensure that eligible districts are aware of the
51-18 grant-funding opportunities provided under this Section, the
52-19 State Board of Education shall annually notify the board and
53-20 superintendent of each school district in the State of the
54-21 availability of grant funds for the purpose of conducting
55-22 school district reorganization feasibility studies and shall
56-23 provide with that notice all of the following information:
57-24 (1) information concerning the procedures for applying
58-25 for grant funding under this Section during the next award
59-26 cycle;
37+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2966 Introduced , by Rep. Tracy Katz Muhl SYNOPSIS AS INTRODUCED:
38+105 ILCS 5/2-3.206 new 105 ILCS 5/2-3.206 new
39+105 ILCS 5/2-3.206 new
40+Amends the School Code. Requires the State Board of Education to analyze the use of grant fund requests for a consolidation analysis or consolidation expenses in relation to the School District Reorganization Feasibility Studies. Requires the State Board to create a list of overlapping or bordering school districts with the most similar operating tax rates and percentage of adequacy funding per pupil. Requires the State Board to communicate to the superintendents and school boards of those school districts on the list that the State Board's analysis makes the school district a good candidate for the grant funds. Requires the school board to hold a public hearing to review the State Board's written communication and decide whether to apply for the grant funds. Requires the State Board to report to the General Assembly as to whether the school districts on the list applied for the grant funds, whether a grant was awarded, and what, if any, State Board action was taken in response to the grant-funded consolidation analysis. Requires the State Board to also provide to interested school districts a list of neutral parties to conduct an independent consolidation analysis with the grant funds.
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70-1 (2) a description of the total dollar value of grant
71-2 funds that are available to be awarded during the next
72-3 award cycle; and
73-4 (3) a list of third-party consultants who have
74-5 experience conducting feasibility studies in Illinois.
75-6 (f) Every 2 years, each board that receives a notice under
76-7 subsection (e) may include the question of whether to pursue
77-8 grant funding under this Section as an action item on the
78-9 agenda at one of its meetings.
79-10 (g) When issuing grants under this Section, the State
80-11 Board of Education may provide a school district up to the
81-12 maximum reimbursement amount set by the State Board of
82-13 Education, for the purpose of covering all or part of the costs
83-14 borne by the school district to conduct a reorganization
84-15 feasibility study. In awarding grants under this Section, the
85-16 State Board of Education shall prioritize the awarding of
86-17 grants to districts that are contiguous with one another,
87-18 districts that have similar property tax rates, districts with
88-19 similar per-pupil adequacy funding, and, beginning in State
89-20 fiscal year 2030, other districts that have been identified as
90-21 priority districts by the State Board of Education pursuant to
91-22 rules adopted under subsection (i).
92-23 (h) No school district may be awarded a grant under this
93-24 Section in any 2 consecutive award cycles.
94-25 (i) The State Board of Education may adopt any rules it
95-26 deems necessary to implement and administer the program of
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106-1 grant funding established under this Section, including, but
107-2 not limited to, rules establishing the criteria that must be
108-3 met by the third-party consultants who will perform the
109-4 feasibility studies described in this Section, rules
110-5 describing minimum criteria to be included in agreements
111-6 executed with the third-party consultants who will perform the
112-7 feasibility studies described in this Section, and, beginning
113-8 in State fiscal year 2030, rules identifying additional types
114-9 of school districts to be prioritized for grant funding under
115-10 this Section. In State fiscal year 2035, and every 5 years
116-11 thereafter, the State Board of Education shall reevaluate and,
117-12 if necessary, amend the rules identifying additional types of
118-13 school districts to be prioritized for grant funding under
119-14 this Section.
120-15 Section 99. Effective date. This Act takes effect upon
121-16 becoming law.
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