HB2676 Summary: Financial Oversight Panel Law

• Creates Article 1H of the School Code establishing Financial Oversight Panels for school districts with populations not exceeding 500,000, allowing districts to petition the State Board of Education or having the State Board establish a panel without petition if in the district's best interest.

• Panel members (5 appointed by State Superintendent) exercise financial control over districts, with powers including contract negotiation, asset management, budget restructuring, and authority to appoint a chief executive officer, chief educational officer, and chief fiscal officer.

• Authorizes panels to issue bonds up to 15% of district's equalized assessed valuation, establish tax levies without referendum, and access the School District Emergency Financial Assistance Fund for loans and grants capped at $4,000 per student enrolled (loans) and $1,000 per student (grants).

• Loans must be repaid with simple interest at 50% of the one-year Constant Maturity Treasury yield, with repayment schedules established by the panel and approved by the Illinois Finance Authority, subject to default consequences under the Illinois Grant Funds Recovery Act.

• Panel must submit annual reports by March 1 to the Governor, General Assembly, and State Superintendent; panels are abolished after 10 years or one year after all obligations are paid, whichever is later, or earlier by State Board recommendation if no obligations remain outstanding.