IL SB2196

Amends public labor relations laws to prioritize employer's financial ability in arbitration disputes, requiring arbitrators to consider only existing available resources (excluding new revenue sources) when determining wages and benefits for local government and school employees.

Requires downstate teachers' employers to contribute a portion of normal pension costs starting FY 2019, with full contribution required by FY 2023, and allows reorganized districts to maintain separate salary schedules until next collective bargaining negotiation.

Allows school boards to determine physical education course frequency (minimum 3 days per week instead of daily) and permits case-by-case excusal of grades 9-12 athletes from PE requirements; removes restrictions on commercial driver training school contracts.

Allows school districts to discharge unfunded mandates (except those related to learning standards, federal requirements, health/safety, and civil rights) through public hearing and majority board vote; permits schools to contract for non-instructional services previously performed by employees with 30-day notice.

Exempts public works projects costing $250,000 or less from prevailing wage requirements and establishes fact-finding procedures for Chicago school district labor disputes with financial ability as primary consideration factor.