HB5611 104TH GENERAL ASSEMBLY

LRB104 20416 HLH 33880 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5611

Introduced 2/13/2026, by Rep. Travis Weaver

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1038 new
30 ILCS 122/20
30 ILCS 122/25
105 ILCS 5/2-3.214 new

Amends the Budget Stabilization Act. Provides additional scheduled transfers to the Pension Stabilization Fund, sets termination conditions, and clarifies allocation and applicability of payments. Amends the School Code. Establishes a property tax relief grant program for school districts beginning in Fiscal Year 2030, funded from the Education Property Tax Relief Fund. Makes conforming changes in the State Finance Act.

A BILL FOR

AN ACT concerning finance.

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

Section 5. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Education Property Tax Relief Fund.

Section 10. The Budget Stabilization Act is amended by changing Sections 20 and 25 as follows:

(30 ILCS 122/20)

(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 20. Pension Stabilization Fund.

(a) The Pension Stabilization Fund is hereby created as a special fund in the State treasury. Moneys in the fund shall be used for the sole purpose of making payments to the designated retirement systems as provided in Section 25.

(b) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Pension Stabilization Fund.

(c) For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.

(c-5) In addition to any other transfers that may be provided by law, the Comptroller shall transfer from the General Revenue Fund to the Pension Stabilization Fund the amount set forth as follows for each of the specified fiscal years:

(c-10) The transfers made beginning in State fiscal year 2030 pursuant to subsection (c-5) of this Section shall terminate at the end of State fiscal year 2045 or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first.

(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible; except that the final transfer of the fiscal year shall be made as soon as practical after the August 31 following the end of the fiscal year.

Before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that fiscal year with the actual general funds revenues for that fiscal year. The final transfer for the fiscal year shall be adjusted so that the total amount transferred under this Section for that fiscal year is equal to the percentage specified in subsection (b) or (c) of this Section, whichever is applicable, of the actual general funds revenues for that fiscal year. The actual general funds revenues for the fiscal year shall be calculated in a manner consistent with subsection (c) of Section 10 of this Act.

(Source: P.A. 94-839, eff. 6-6-06.)

(30 ILCS 122/25)

(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 25. Transfers from the Pension Stabilization Fund.

(a) As used in this Section, "designated retirement systems" means:

(1) the State Employees' Retirement System of Illinois;

(2) the Teachers' Retirement System of the State of Illinois;

(3) the State Universities Retirement System;

(4) the Judges Retirement System of Illinois; and

(5) the General Assembly Retirement System.

(b) As soon as may be practical after any money is deposited into the Pension Stabilization Fund, the State Comptroller shall apportion the deposited amount among the designated retirement systems and the State Comptroller and State Treasurer shall pay the apportioned amounts to the designated retirement systems. The amount deposited shall be apportioned among the designated retirement systems in the same proportion as their respective portions of the total actuarial reserve deficiency of the designated retirement systems, as most recently determined by the Governor's Office of Management and Budget. Amounts received by a designated retirement system under this Section shall be used for funding the unfunded liabilities of the retirement system. Payments under this Section are authorized by the continuing appropriation under Section 1.7 of the State Pension Funds Continuing Appropriation Act.

(c) At the request of the State Comptroller, the Governor's Office of Management and Budget shall determine the individual and total actuarial reserve deficiencies of the designated retirement systems. For this purpose, the Governor's Office of Management and Budget shall consider the latest available audit and actuarial reports of each of the retirement systems and the relevant reports and statistics of the Public Pension Division of the Department of Financial and Professional Regulation.

(d) Payments to the designated retirement systems under this Section shall be in addition to, and not in lieu of, any State contributions required under Section 2-124, 14-131, 15-155, 16-158, or 18-131 of the Illinois Pension Code.

Payments to the designated retirement systems under subsections (c-5) and (c-10) of Section 20 received after the effective date of this amendatory Act of the 104th General Assembly, and any investment earnings attributable to such payments, do not reduce and do not constitute payment of any portion of the required State contribution under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code in the current fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contribution under Article 2, 14, 15, 16, or 18 of the Illinois Pension Code in any future fiscal year, until the designated retirement system has reached a 100% funding ratio. Such payments may be invested in the same manner as other assets of the designated retirement system and shall be used in the calculation of the system's funding ratio for the purposes of this Section and Section 20 of this Act. Payments under this Section may be used for any associated administrative costs.

(Source: P.A. 94-839, eff. 6-6-06.)

Section 15. The School Code is amended by adding Section 2-3.214 as follows:

(105 ILCS 5/2-3.214 new)

Sec. 2-3.214. School district property tax relief grant program.

(a) As used in this Section:

"Adjusted maximum aggregate property tax extension" means the highest aggregate property tax extension that a school district is authorized by law to levy, without regard to this Section, for the taxable year for which the adjusted maximum aggregate property tax extension is calculated, minus the grant amount received by the school district for the fiscal year that ends during the taxable year for which the adjusted maximum aggregate property tax extension is calculated.

"Aggregate property tax extension" means the annual corporate extension for the school district and those special purpose extensions that are made annually for a school district.

"Taxable year" means the calendar year during which property taxes payable in the next succeeding year are levied.

(b) For State fiscal year 2030 and each State fiscal year thereafter, the State Board of Education shall establish and administer a program to award property tax relief grants to school districts in this State. In exchange for receiving a grant under this Section, a school district's maximum aggregate property tax extension for the taxable year that begins on January 1 of the fiscal year for which the grant is awarded may not exceed its adjusted maximum aggregate property tax extension for that taxable year. Grants shall be awarded from moneys appropriated for that purpose from the Education Property Tax Relief Fund created in subsection (c). Moneys awarded to school districts under this Section shall be distributed pro rata on a per pupil average daily attendance basis, as reported in the school district report card for the immediately preceding school year under Section 10-17a.

(c) The Education Property Tax Relief Fund is created as a special fund in the State treasury. By September 1, 2030, and by September 1 of each year thereafter, the Governor's Office of Management and Budget shall certify to the State Comptroller and the State Treasurer an amount equal to $300,000,000 in fiscal years 2030-2033 and $850,000,000 in fiscal year 2034 and every fiscal year thereafter. Upon receiving the certified amount from the Governor's Office of Management and Budget, the State Comptroller shall order transferred and the State Treasurer shall transfer the certified amount from the General Revenue Fund to the Education Property Tax Relief Fund. Any unexpended amounts remaining in the Education Property Tax Relief Fund on the last day of the fiscal year shall be transferred from the Education Property Tax Relief Fund to the General Revenue Fund.