IL SB1956

Amends the Tax Increment Allocation Redevelopment Act to allow surplus tax revenues to be used for public school district costs including special education, social services, and other expenses.

For municipalities with a population over 1,000,000, redevelopment project costs now include qualified worker employment, special educational facilities and services, school psychological services, and school social work services.

Requires any surplus balance remaining in the special tax allocation fund at fiscal year-end for large municipalities to be entirely used for public school district costs rather than other purposes.

Removes provisions that allowed anticipated redevelopment project costs to be deemed surplus funds, tightening the definition of available surplus.

Applies specifically to Tax Increment Allocation (TIF) districts and affects how excess tax increment revenues are allocated between municipalities and school districts.