SB2213 amends the Illinois Unemployment Insurance Act to create a new state aid mechanism for school districts and public institutions of higher education to help cover unemployment insurance costs. The bill makes these entities eligible for unemployment insurance aid, subject to appropriation, and sets the aid amount as the difference between each entity’s prior fiscal year net audited unemployment costs and a new base period tied to fiscal year 2024 costs. In practical terms, the bill appears designed to reimburse increases in unemployment insurance expenses above a 2024 baseline for school districts and public colleges and universities.
The bill also establishes how aid would be administered if appropriations are insufficient. If total eligible aid exceeds the annual appropriation, the State Board of Education or the Board of Higher Education must proportionately reduce payments. Each agency must also report annually to the General Assembly on account balances and changes in reimbursable unemployment costs, with cost breakdowns by district, campus, and major job classes where possible. The bill is effective January 1, 2026, and includes conforming changes to existing unemployment insurance provisions.
Impact
SB2213 would expand the Unemployment Insurance Act by adding two new sections that authorize state reimbursement for unemployment insurance costs incurred by school districts and public institutions of higher education. It would not change the underlying eligibility rules for unemployment benefits, but it would shift part of the financial burden of those benefits from local educational employers to the state, contingent on annual appropriations. The bill also amends Section 612 to make conforming changes related to educational employment and unemployment benefit rules.
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 alone, the measure appears fiscally supportive of school districts and public higher education institutions by offering reimbursement for unemployment insurance costs. The overall tone of the legislation is administrative and budget-focused rather than controversial on its face.
Contention
The main likely point of contention is fiscal: the bill makes aid contingent on appropriation and requires proportional reductions if funding is insufficient, which suggests concern about state budget exposure. Another possible issue is the choice of a fiscal year 2024 baseline, which could be viewed as either a stabilizing reference point or as locking in a cost structure that may not reflect future changes. Stakeholders most directly affected would be school districts, public universities and colleges, the State Board of Education, the Board of Higher Education, and the Department of Employment Security.
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).