HB3823 Summary

• Amends the School Code Section 17-2 to subject maximum property tax rates for school districts to subsection (b-10) of Section 5-35 of the School Construction Law.

• Adds new subsection (b-10) to the School Construction Law requiring school districts (except those with population exceeding 500,000) receiving construction grants must use a minimum of 80% of grant funds to defease or redeem outstanding debt on that project.

• Requires districts to reduce their debt levy by an amount equal to or greater than the grant funds used to pay off outstanding debt within the first 5 levy years of receiving the funds.

• Permits districts to use remaining funds not required for debt payoff at their discretion to fund capital improvements related to school construction projects.