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HB 2966

Requiring certain disclosures of election expenditures

2025 Regular Session Introduced by Bill Flanigan and 6 co-sponsors

Illinois creates an SBE grant program to reimburse districts for third-party feasibility studies on reorganization/consolidation, aiming to boost efficiency, equity, and services.

To House Judiciary
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Bill Summary · HB 2966

HB 2966 — School district reorganization feasibility studies; grant program

Public Act: 104‑0257 (effective August 15, 2025)
Citation added: 105 ILCS 5/2‑3.206 (new)

Purpose

Creates a State Board of Education (SBE) grant program to incentivize Illinois school districts to commission third‑party reorganization (including potential consolidation) feasibility studies. The program is intended to encourage districts to assess whether reorganization could improve efficiency, equity, or services.

Key provisions

  • Grants: SBE may award grants, from funds appropriated for this purpose, to reimburse districts for costs of third‑party reorganization feasibility studies (up to a maximum reimbursement amount set by SBE).
  • Eligibility requirements (applicant district board must):
    1. Negotiate a proposed agreement to retain a third‑party consultant to perform the study.
    2. Adopt a board resolution (signed by the board president) initiating the reorganization feasibility study consistent with the agreement and SBE rules.
    3. Submit the completed agreement form, signed resolution, and additional information required by rule to the regional office of education or the executive director of the district’s intermediate service center for approval.
  • Regional review: The regional office or intermediate service center director must approve and forward approved agreements to SBE or return them with an explanation if disapproved.
  • Award priorities: SBE shall prioritize grants to districts that are contiguous, have similar property tax rates, or have similar per‑pupil adequacy funding. Beginning in State FY 2030, SBE may prioritize additional district types as identified by rule.
  • Limits: No district may receive a grant in two consecutive award cycles.
  • Outreach: SBE must annually notify every district board and superintendent of the program’s availability and provide (1) application procedures for the next cycle, (2) the total dollar value of funds available for that cycle, and (3) a list of consultants experienced in Illinois feasibility studies.
  • Board action cadence: Every two years, boards that received notice may place the question of pursuing grant funding on a regular or special meeting agenda.
  • Rulemaking: SBE may adopt rules to implement the program (including consultant qualifications and minimum agreement contents). SBE must reevaluate and, if necessary, amend prioritization rules in FY2035 and every five years thereafter.

Who is affected

  • Elementary districts and high school districts (as applied in amendments and practice), their boards and superintendents
  • Regional offices of education and intermediate service centers (approval role)
  • Third‑party consultants meeting SBE criteria
  • Communities and taxpayers in districts that may consider reorganization or consolidation

Timeline / procedural notes

  • Grants are contingent on appropriations to SBE; no specific funding amount is specified in the statute.
  • Effective date: upon becoming law; Public Act effective August 15, 2025.
  • Rulemaking and prioritization expansions begin in State FY 2030, with periodic reevaluations starting FY 2035.

Potential impacts (likely)

  • Lowers financial barriers for districts to obtain independent analyses of consolidation/reorganization options.
  • May increase inter‑district discussion and planning in geographically contiguous or similarly funded districts.
  • Outcomes depend on funding levels, SBE rule design (especially consultant standards and prioritization), and local receptivity to consolidation recommendations.

Compiled from official sources — confirm details with the bill’s official record.

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