HB5551 104TH GENERAL ASSEMBLY

LRB104 20609 LNS 34101 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5551

Introduced 2/13/2026, by Rep. Michelle Mussman

SYNOPSIS AS INTRODUCED:

105 ILCS 5/2-3.33	from Ch. 122, par. 2-3.33
105 ILCS 5/2-3.84	from Ch. 122, par. 2-3.84
105 ILCS 5/14-7.03	from Ch. 122, par. 14-7.03
105 ILCS 5/21B-70

Amends the School Code. Provides that certain provisions concerning the recomputation and adjustment of a school district claim for general State aid or evidence-based funding shall end with Fiscal Year 2026. Provides that when a child from an orphanage, foster family home, other State agency, children's home, or State residential unit eligible for special education services is placed in a separate public day school, that school shall meet the programmatic requirements and regulations for separate public day schools. Provides that any funds appropriated for the Illinois Teaching Excellence Program must be used, among other purposes, for indirect costs necessary for Program operation. Provides that an annual retention bonus of up to $4,000 (rather than $4,000) per year for 2 consecutive years shall be awarded to National Board certified teachers employed in hard-to-staff schools and such funds must be disbursed equally on an annual basis among all qualified educators (rather than on a first-come, first-served basis). Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning education.

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

Section 5. The School Code is amended by changing Sections 2-3.33, 2-3.84, 14-7.03, and 21B-70 as follows:

(105 ILCS 5/2-3.33) (from Ch. 122, par. 2-3.33)

Sec. 2-3.33. Recomputation of claims. To recompute within 3 years from the final date for filing of a claim any claim for general State aid reimbursement to any school district and to recompute and adjust any such claims within 6 years from the final date for filing, through and ending with Fiscal Year 2026, when there has been an adverse court or administrative agency decision on the merits affecting the tax revenues of the school district. However, no such adjustment shall be made regarding equalized assessed valuation unless the district's equalized assessed valuation is changed by greater than $250,000 or 2%. Any adjustments for claims recomputed for the 2016-2017 school year and prior school years shall be applied to the apportionment of evidence-based funding in Section 18-8.15 of this Code beginning in the 2017-2018 school year and thereafter. However, the recomputation of a claim for evidence-based funding for a school district shall not require the recomputation of claims for all districts, and the State Board of Education shall only make recomputations of evidence-based funding for those districts where an adjustment is required, through and ending with Fiscal Year 2026. The State Board is authorized to and shall apply corrections to data used in evidence-based funding calculations that may result in current year adjustments and shall recover funds previously scheduled to be distributed or previously distributed to an Organizational Unit or specially funded unit during a fiscal year in accordance with Section 18-8.15 of this Code.

Except in the case of an adverse court or administrative agency decision, no recomputation of a State aid claim shall be made pursuant to this Section as a result of a reduction in the assessed valuation of a school district from the assessed valuation of the district reported to the State Board of Education by the Department of Revenue under Section 18-8.05 or 18-8.15 of this Code unless the requirements of Section 16-15 of the Property Tax Code and Section 2-3.84 of this Code are complied with in all respects.

This paragraph applies to all requests for recomputation of a general State aid or evidence-based funding claim received after June 30, 2003 and before July 1, 2026. In recomputing a general State aid or evidence-based funding claim that was originally calculated using an extension limitation equalized assessed valuation under paragraph (3) of subsection (G) of Section 18-8.05 of this Code or Section 18-8.15 of this Code, a qualifying reduction in equalized assessed valuation shall be deducted from the extension limitation equalized assessed valuation that was used in calculating the original claim.

From the total amount of general State aid or evidence-based funding to be provided to districts, adjustments as a result of recomputation under this Section together with adjustments under Section 2-3.84 must not exceed $25 million, in the aggregate for all districts under both Sections combined, of the general State aid or evidence-based funding appropriation in any fiscal year; if necessary, amounts shall be prorated among districts. If it is necessary to prorate claims under this paragraph, then that portion of each prorated claim that is approved but not paid in the current fiscal year may be resubmitted as a valid claim in the following fiscal year.

(Source: P.A. 102-699, eff. 4-19-22.)

(105 ILCS 5/2-3.84) (from Ch. 122, par. 2-3.84)

Sec. 2-3.84. In calculating the amount of State aid to be apportioned to the various school districts in this State, the State Board of Education shall incorporate and deduct the total aggregate adjustments to assessments made by the State Property Tax Appeal Board or Cook County Board of Appeals, as reported pursuant to Section 16-15 of the Property Tax Code or Section 129.1 of the Revenue Act of 1939 by the Department of Revenue, from the equalized assessed valuation that is otherwise to be utilized in the initial calculation for adjustments reported through Fiscal Year 2026.

From the total amount of general State aid or evidence-based funding to be provided to districts for adjustments reported through Fiscal Year 2026, adjustments under this Section together with adjustments as a result of recomputation under Section 2-3.33 must not exceed $25 million, in the aggregate for all districts under both Sections combined, of the general State aid or evidence-based funding appropriation in any fiscal year; if necessary, amounts shall be prorated among districts. If it is necessary to prorate claims under this paragraph, then that portion of each prorated claim that is approved but not paid in the current fiscal year may be resubmitted as a valid claim in the following fiscal year.

(Source: P.A. 100-465, eff. 8-31-17.)

(105 ILCS 5/14-7.03) (from Ch. 122, par. 14-7.03)

Sec. 14-7.03. Special education classes for children from orphanages, foster family homes, children's homes, or State residential units. If a school district maintains special education classes on the site of orphanages and children's homes, or if children from the orphanages, children's homes, foster family homes, other State agencies, or State residential units for children attend classes for children with disabilities in which the school district is a participating member of a joint agreement, or if the children from the orphanages, children's homes, foster family homes, other State agencies, or State residential units attend classes for the children with disabilities maintained by the school district, then reimbursement shall be paid to eligible districts in accordance with the provisions of this Section by the Comptroller as directed by the State Superintendent of Education.

The amount of tuition for such children shall be determined by the actual cost of maintaining such classes, using the per capita cost formula set forth in Section 14-7.01, such program and cost to be pre-approved by the State Superintendent of Education.

If a school district makes a claim for reimbursement under Section 18-3 of this Code it shall not include in any claim filed under this Section a claim for such children. Payments authorized by law, including State or federal grants for education of children included in this Section, shall be deducted in determining the tuition amount.

Nothing in this Code shall be construed so as to prohibit reimbursement for the tuition of children placed in for profit facilities. Private facilities shall provide adequate space at the facility for special education classes provided by a school district or joint agreement for children with disabilities who are residents of the facility at no cost to the school district or joint agreement upon request of the school district or joint agreement. If such a private facility provides space at no cost to the district or joint agreement for special education classes provided to children with disabilities who are residents of the facility, the district or joint agreement shall not include any costs for the use of those facilities in its claim for reimbursement.

Reimbursement for tuition may include the cost of providing summer school programs for children with severe and profound disabilities served under this Section. Claims for that reimbursement shall be filed by November 1 and shall be paid on or before December 15 from appropriations made for the purposes of this Section.

The State Board of Education shall establish such rules and regulations as may be necessary to implement the provisions of this Section.

Claims filed on behalf of programs operated under this Section housed in an orphanage, children's home, private facility, State residential unit, district or joint agreement site, jail, detention center, or county-owned shelter care facility shall be on an individual student basis only for eligible students with disabilities. These claims shall be in accordance with applicable rules.

Each district claiming reimbursement for individual students shall have the eligibility of those students verified by the State Board of Education. On September 30, December 31, and March 31, the State Board of Education shall voucher payments for individual students based upon an estimated cost calculated from the prior year's claim. Final claims for individual students for the regular school term must be received at the State Board of Education by June 15. Claims for individual students received after June 15 shall not be honored. Claims received by June 15 may be amended until August 1. Final claims for individual students shall be vouchered by August 31. However, notwithstanding any other provisions of this Section or this Code, if the amount appropriated for any fiscal year is less than the amount required for purposes of this Section, the amount required to eliminate any insufficient reimbursement for each district claim under this Section shall be reimbursed on August 31 of the next fiscal year. Payments required to eliminate any insufficiency for prior fiscal year claims shall be made before any claims are paid for the current fiscal year.

Regional superintendents may operate special education classes for children from orphanages, foster family homes, children's homes, or State residential units located within the educational services region upon consent of the school board otherwise so obligated. In electing to assume the powers and duties of a school district in providing and maintaining such a special education program, the regional superintendent may enter into joint agreements with other districts and may contract with public or private schools or the orphanage, foster family home, children's home, or State residential unit for provision of the special education program. The regional superintendent exercising the powers granted under this Section shall be reimbursed for the actual cost of providing such programs by the resident district as defined in Section 14-1.11a.

Any child who is not a resident of Illinois who is placed in a child welfare institution, private facility, foster family home, State operated program, orphanage, or children's home shall have the payment for his educational tuition and any related services assured by the placing agent.

For each student with a disability who is placed in a residential facility by an Illinois public agency or by any court in this State, the costs for educating the student are eligible for reimbursement under this Section.

The district of residence of the student with a disability as defined in Section 14-1.11a is responsible for the actual costs of the student's special education program and is eligible for reimbursement under this Section when placement is made by a State agency or the courts.

When a dispute arises over the determination of the district of residence under this Section, the district or districts may appeal the decision in writing to the State Superintendent of Education, who, upon review of materials submitted and any other items or information he or she may request for submission, shall issue a written decision on the matter. The decision of the State Superintendent of Education shall be final.

In the event a district does not make a tuition payment to another district that is providing the special education program and services, the State Board of Education shall immediately withhold 125% of the then remaining annual tuition cost from the State aid or categorical aid payment due to the school district that is determined to be the resident school district. All funds withheld by the State Board of Education shall immediately be forwarded to the school district where the student is being served.

When a child eligible for services under this Section is 14-7.03 must be placed in a nonpublic facility, that facility shall meet the programmatic requirements of Section 14-7.02 and its regulations, and the educational services shall be funded only in accordance with this Section 14-7.03.

Beginning with the 2026-2027 school year, when a child eligible for services under this Section is placed in a separate public day school, that school shall meet the definition of Section 14-1.08a and the programmatic requirements and rules for separate public day schools, and the educational services shall be funded only in accordance with this Section.

(Source: P.A. 101-17, eff. 6-14-19.)

(105 ILCS 5/21B-70)

Sec. 21B-70. Illinois Teaching Excellence Program.

(a) As used in this Section:

"Diverse candidate" means a candidate who identifies with any of the ethnicities reported on the Illinois Report Card other than White.

"Hard-to-staff school" means a public school in which no less than 30% of the student enrollment is considered low-income as reported by the report card under Section 10-17a of this Code.

"National Board certified teacher candidate cohort facilitator" means a National Board certified teacher who collaborates to advance the goal of supporting all other candidate cohorts other than diverse candidate cohorts through the Illinois National Board for Professional Teaching Standards Comprehensive Support System.

"National Board certified teacher diverse candidate cohort facilitator" means a National Board certified teacher who collaborates to advance the goal of supporting racially and ethnically diverse candidates through the Illinois National Board for Professional Teaching Standards Comprehensive Support System.

"National Board certified teacher diverse liaison" means an individual or entity that supports the National Board certified teacher leading a diverse candidate cohort.

"National Board certified teacher liaison" means an individual or entity that supports the National Board certified teacher leading candidate cohorts other than diverse candidate cohorts.

"National Board certified teacher rural or remote or distant candidate cohort facilitator" means a National Board certified teacher who collaborates to advance the goal of supporting rural or remote candidates through the Illinois National Board for Professional Teaching Standards Comprehensive Support System.

"National Board certified teacher rural or remote or distant liaison" means an individual or entity that supports the National Board certified teacher leading a rural or remote candidate cohort.

"Qualified educator" means a teacher or school counselor currently employed in a school district who is in the process of obtaining certification through the National Board for Professional Teaching Standards or who has completed certification and holds a current Professional Educator License with a National Board for Professional Teaching Standards designation or a retired teacher or school counselor who holds a Professional Educator License with a National Board for Professional Teaching Standards designation.

"Rural or remote" or "rural or remote or distant" means local codes 32, 33, 41, 42, and 43 of the New Urban-Centric Locale Codes, as defined by the National Center for Education Statistics.

"Tier 1" has the meaning given to that term under Section 18-8.15.

"Tier 2" has the meaning given to that term under Section 18-8.15.

(b) Any funds appropriated for the Illinois Teaching Excellence Program must be used to provide monetary assistance and incentives for qualified educators who are employed by or retired from school districts and who have or are in the process of obtaining licensure through the National Board for Professional Teaching Standards and for indirect costs necessary for program operation. The goal of the program is to improve instruction and student performance.

The State Board of Education shall allocate an amount as annually appropriated by the General Assembly for the Illinois Teaching Excellence Program for (i) application or re-take fees for each qualified educator seeking to complete certification through the National Board for Professional Teaching Standards, to be paid directly to the National Board for Professional Teaching Standards, and (ii) incentives under paragraphs (1), (2), and (3) of subsection (c) for each qualified educator, to be distributed to the respective school district, and incentives under paragraph (5) of subsection (c), to be distributed to the respective school district or directly to the qualified educator. The school district shall distribute this payment to each eligible teacher or school counselor as a single payment.

The State Board of Education's annual budget must set out by separate line item the appropriation for the program. Unless otherwise provided by appropriation, qualified educators are eligible for monetary assistance and incentives outlined in subsections (c) and (d) of this Section.

(c) When there are adequate funds available, monetary assistance and incentives shall include the following:

(1) A maximum of $2,000 toward the application or re-take fee for teachers or school counselors in a Tier 1 school district who apply on a first-come, first-serve basis for National Board certification.

(2) A maximum of $2,000 toward the application or re-take fee for teachers or school counselors in a school district other than a Tier 1 school district who apply on a first-come, first-serve basis for National Board certification.

(3) A maximum of $1,000 toward the National Board for Professional Teaching Standards' renewal application fee.

(4) (Blank).

(5) An annual incentive of no more than $2,250 prorated at $50 per hour, which shall be paid to each qualified educator currently employed in a school district who holds both a National Board for Professional Teaching Standards designation and a current corresponding certificate issued by the National Board for Professional Teaching Standards and who agrees, in writing, to provide up to 45 hours of mentoring or National Board for Professional Teaching Standards professional development or both during the school year to classroom teachers or school counselors, as applicable. Funds must be disbursed on a first-come, first-serve basis, with priority given to Tier 1 school districts. Mentoring shall include, either singly or in combination, the following:

(A) National Board for Professional Teaching Standards certification candidates.

(B) National Board for Professional Teaching Standards re-take candidates.

(C) National Board for Professional Teaching Standards renewal candidates.

(D) (Blank).

Funds may also be used for professional development training provided by the National Board Resource Center.

Funds may also be used for instructional leadership training for qualified educators interested in supporting implementation of the Illinois Learning Standards or teaching and learning priorities of the State Board of Education or both.

(d) In addition to the monetary assistance and incentives provided under subsection (c), if adequate funds are available, incentives shall include the following incentives for the program in rural or remote schools or school districts or for programs working with diverse candidates or for retention bonuses for hard-to-staff schools, to be distributed to the respective school district or directly to the qualified educator or entity:

(1) A one-time incentive of $3,000 payable to National Board certified teachers teaching in Tier 1 or Tier 2 rural or remote school districts or rural or remote schools in Tier 1 or Tier 2 school districts, with priority given to teachers teaching in Tier 1 rural or remote school districts or rural or remote schools in Tier 1 school districts.

(2) An annual incentive of $3,200 for National Board certified teacher rural or remote or distant candidate cohort facilitators, diverse candidate cohort facilitators, and candidate cohort facilitators. Priority shall be given to rural or remote candidate cohort facilitators and diverse candidate cohort facilitators.

(3) An annual incentive of $2,500 for National Board certified teacher rural or remote or distant liaisons, diverse liaisons, and liaisons. Priority shall be given to rural or remote liaisons and diverse liaisons.

(4) An annual retention bonus of up to $4,000 per year for 2 consecutive years shall be awarded to National Board certified teachers employed in hard-to-staff schools. Funds must be disbursed equally on an annual basis among all qualified educators on a first-come, first-served basis.

(Source: P.A. 103-122, eff. 6-30-23; 103-207, eff. 1-1-24; 103-605, eff. 7-1-24.)

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