HB1654 amends the Illinois Unemployment Insurance Act to create a new unemployment insurance aid program for school districts and public institutions of higher education, subject to appropriation. The bill establishes a formula under which eligible districts and campuses would receive aid equal to the difference between their prior fiscal year’s net audited unemployment costs and a fiscal year 2024 base level of those costs. In effect, it is designed to reimburse education employers for increases in unemployment insurance expenses above the 2024 baseline.
The bill also requires the State Board of Education and the Board of Higher Education to administer the aid for their respective sectors. If total claims exceed the annual appropriation, each agency must proportionately reduce payments. Both agencies must submit annual reports to the General Assembly by January 15 detailing account balances and changes in reimbursable unemployment costs, with cost breakdowns by district, campus, and major job class where possible. The bill is effective January 1, 2026.
Impact
HB1654 would add two new sections to the Unemployment Insurance Act, making school districts and public institutions of higher education eligible for state unemployment insurance aid and creating a new state reimbursement mechanism for those employers. It would not change the underlying eligibility rules for unemployment benefits in Section 612, but it would add fiscal and administrative duties for the State Board of Education, the Board of Higher Education, and the Department of Employment Security. The bill would also require conforming changes to existing law and would shift some unemployment cost burden from local education employers to the state, to the extent funds are appropriated.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text, the measure appears to be a targeted fiscal relief proposal for education employers rather than a broad policy change. Its structure suggests an intent to stabilize school and higher-education budgets by offsetting rising unemployment insurance costs, while limiting state exposure through appropriation caps and proportional reductions if funding is insufficient.
Contention
The main likely point of contention is fiscal: the bill makes the aid program contingent on appropriation, so supporters may view it as needed relief for school districts and public colleges, while opponents may question the cost to the state and the open-ended nature of reimbursing future unemployment claims. Another possible issue is the choice of a fiscal year 2024 baseline, which could advantage or disadvantage particular districts or campuses depending on their recent unemployment cost patterns. Administrative complexity may also be a concern because the bill requires annual reporting and cost calculations by district, campus, and job class.
A bill for an act relating to the eligibility of certain individuals employed by educational institutions for unemployment insurance benefits between two successive academic years or terms.
Employment security: administration; determination of whether services performed by an individual are employment; modify. Amends sec. 42 of of 1936 (Ex Sess) PA 1 (MCL 421.42).