Bill Text: IL HB4299 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the School Spending Efficiency and Relief Act. Requires each school district to undertake budgetary and expenditure control actions to ensure that administrative expenditures do not exceed 15% of the school district's total operating expenditures. Requires any school district with administrative expenditures exceeding 15% of its total operating expenditures to implement a mandatory annual reduction plan that reduces administrative expenditures by 1% for such time as is required to bring the school district into compliance. Prohibits any school district that is out of compliance from hiring additional administrative personnel. Requires each school district to post an annual budget report online. Allows a school district to increase its tax levy only if the average student enrollment increases by an amount proportional to the tax levy. Requires a school district to decrease its tax levy by a proportional amount whenever the school district's average student enrollment declines. Requires any new contract for a superintendent or assistant superintendent position to be made publicly available at least 30 days prior to approval. Requires any proposal by a school district to increase expenditures on outside consultants and any consultant contract in excess of $25,000 to be made publicly available at least 30 days prior to approval. Requires each school district to enact a budget that either maintains or increases instructional spending as a percentage of total school district expenditures. Provides for a State mandate relief block grant program and a voluntary statewide purchasing consortium. Makes other changes. Repeals the Act on January 1, 2032. Effective immediately.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2026-01-14 - Referred to Rules Committee [HB4299 Detail]

Download: Illinois-2025-HB4299-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4299 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED:
New Act
Creates the School Spending Efficiency and Relief Act. Requires each school district to undertake budgetary and expenditure control actions to ensure that administrative expenditures do not exceed 15% of the school district's total operating expenditures. Requires any school district with administrative expenditures exceeding 15% of its total operating expenditures to implement a mandatory annual reduction plan that reduces administrative expenditures by 1% for such time as is required to bring the school district into compliance. Prohibits any school district that is out of compliance from hiring additional administrative personnel. Requires each school district to post an annual budget report online. Allows a school district to increase its tax levy only if the average student enrollment increases by an amount proportional to the tax levy. Requires a school district to decrease its tax levy by a proportional amount whenever the school district's average student enrollment declines. Requires any new contract for a superintendent or assistant superintendent position to be made publicly available at least 30 days prior to approval. Requires any proposal by a school district to increase expenditures on outside consultants and any consultant contract in excess of $25,000 to be made publicly available at least 30 days prior to approval. Requires each school district to enact a budget that either maintains or increases instructional spending as a percentage of total school district expenditures. Provides for a State mandate relief block grant program and a voluntary statewide purchasing consortium. Makes other changes. Repeals the Act on January 1, 2032. Effective immediately.
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STATE MANDATES ACT MAY REQUIRE REIMBURSEMENTMAY APPLY
A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the School
Spending Efficiency and Relief Act.
Section 5. Findings and purpose.
(a) The General Assembly finds that (i) State property
taxes are driven primarily by school district spending and
(ii) administrative and nonclassroom expenditures have grown
faster than enrollment statewide.
(b) It is the purpose of this Act to establish enforceable
caps, efficiency requirements, transparency measures, and levy
alignment based on enrollment to reduce the burden on
taxpayers without harming classroom instruction.
Section 10. Administrative spending cap.
(a) For the purposes of this Section, "administrative
expenditures" has the same meaning given to that term in
Section 17-1.5 of the School Code. However, "administrative
expenditures" does not include expenses stemming from
federally mandated positions, including, but not limited to,
case managers, compliance officers, or special education
administrators required by the federal Individuals with

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Disabilities Education Act, in which employees primarily
perform the job duties required under federal law, as
certified in writing by a school district. "Administrative
expenditures" includes consultants hired to promote cultural
competency or diversity, equity, or inclusion initiatives.
(b) For the 2027-2028 school year and each school year
thereafter, each school district shall undertake budgetary and
expenditure control actions to ensure that administrative
expenditures do not exceed 15% of the school district's total
operating expenditures.
(c) For the 2027-2028 school year and each school year
thereafter, any school district with administrative
expenditures exceeding 15% of its total operating expenditures
shall implement a mandatory annual reduction plan that reduces
administrative expenditures by 1% for such time as is required
to bring the school district into compliance with this
Section. Any school district that is out of compliance with
this Section may not hire additional administrative personnel
until compliant. Vacant administrative positions may only be
filled after documenting necessity and obtaining school board
approval at a public meeting.
(d) Subject to State and federal law, each school district
shall post an annual budget report online on the school
district's Internet website. The report shall display the
percentage of the budget allocated for administrative
expenditures and instructional expenditures for the current

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fiscal year, as well as the 4 previous fiscal years.
(e) A school district may not evade administrative
spending caps under this Section by:
(1) reclassifying administrative roles as
instructional;
(2) moving administrative costs to cooperatives,
regional offices of education, or service agreements;
(3) renaming titles or reorganizing chart structures;
(4) outsourcing administrative functions to
consultants; or
(5) splitting contracts to evade reporting thresholds.
(f) A school district that is in violation of this Section
and fails to abide by the terms of the annual reduction plan
under subsection (c) is subject to referral to the Auditor
General, who may create a corrective action plan for the
school district. A corrective action plan may include a
requirement that the school district reduce the next tax levy
by an amount equivalent to the prohibited expenditures in the
preceding fiscal year. A school district may also be required
to receive the approval of its regional superintendent of
schools or intermediate service center for any proposed budget
prior to the school board's approval of that budget. The
county clerk may not approve any tax levy that has not been
approved by the regional superintendent of schools or
intermediate service center for any school district subject to
this restriction.

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Section 15. Enrollment-adjusted levy requirement.
(a) For the 2027-2028 school year and every school year
thereafter, a school district may increase its tax levy only
if the average student enrollment, as defined in Section
18-8.15 of the School Code, used to calculate the school
district's latest evidence-based funding under Section 18-8.15
of the School Code increases by an amount proportional to the
tax levy, subject to the Property Tax Extension Limitation
Law.
(b) For the 2027-2028 school year and every school year
thereafter, a school district shall decrease its tax levy by a
proportional amount whenever the school district's average
student enrollment, as defined in Section 18-8.15 of the
School Code, declines.
Section 20. Superintendent contract reform.
(a) For the 2027-2028 school year and every school year
thereafter, any new contract for a school district
superintendent or assistant superintendent position shall be
made publicly available on the school district's Internet
website for a period of at least 30 days prior to approval by
the school board. If any changes are made to the contract
during the negotiation process, the version of the contract to
be voted on by the school board must be made available in the
same manner for at least 30 days prior to approval.

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(b) For the 2027-2028 school year and every school year
thereafter, no new superintendent or assistant superintendent
contract may contain a provision that grants a silent or
midterm automatic extension, inflation escalator, automatic
raise, or automatic benefit increase.
Section 25. Consultant contract limitations. For the
2027-2028 school year and every school year thereafter, any
proposal by a school district to increase expenditures on
outside consultants, as well as any consultant contract in
excess of $25,000, shall be made publicly available on the
school district's Internet website for a period of at least 30
days prior to approval by the school board.
Section 30. Instructional protection measures. For the
2027-2028 school year and every school year thereafter, each
school district shall enact a budget that either maintains or
increases instructional spending as a percentage of total
school district expenditures, and the number of funded
positions that are directly responsible for pupil instruction
must not be decreased except in cases of a decline in the
school district's average student enrollment, as defined in
Section 18-8.15 of the School Code.
Section 35. State mandate relief block grant program.
Subject to appropriation, the State Board of Education shall

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establish a block grant program for the purpose of offsetting
the cost of State mandates to school districts. A school
district that applies for funding through the program must
maintain compliance with the provisions of this Act to be
eligible.
Section 40. Voluntary statewide purchasing consortium.
Subject to appropriation, the State Board of Education shall
establish a voluntary statewide purchasing consortium for the
provision of insurance, supplies, transportation, technology,
curriculum materials, and energy contracts.
Section 45. Liability. A municipality, county, regional
office of education, intermediate service center, regional
superintendent of schools, or county clerk acting in good
faith in compliance with this Act is immune from any civil
liability related to the enforcement of this Act.
Section 90. Repeal. This Act is repealed on January 1,
2032.
Section 99. Effective date. This Act takes effect upon
becoming law.