SPRINGFIELD – To strengthen accountability and protect students and families when charter schools face financial instability, State Senator Celina Villanueva spearheaded a measure that would revise procedures for charter school closures.

“When charter schools shut down unexpectedly, it causes significant uncertainty on the social fabric of our communities – severing the trust residents place in these schools,” said Villanueva (D-Chicago). “By establishing clearer financial safeguards and timelines for renewal agreements, we are ensuring our families, students and teachers aren’t stuck paying the price of fiscal instability and mismanagement.”

Senate Bill 3391 would withhold public funding for a charter holder wishing to renew a charter until an initial agreement has been fully executed, which would be required within 90 days of the approval of a renewal solution. The bill aims to establish stronger financial safeguards to ensure students, staff and public resources are protected if a charter school closes. The measure comes as several charter schools in Chicago have faced financial challenges that threatened mid-year closures, raising concerns among families and educators about the lack of clear closure planning and oversight.

Villanueva’s proposal would also require charter schools to maintain a closure fund equal to at least three months of operating costs to help ensure resources are available to support students and staff if a school closes unexpectedly. The measure would also expand the ability of the local authorizing body to intervene when a school is experiencing financial distress, including requiring financial recovery plans or appointing an independent manager if necessary.

Additionally, the legislation would prioritize paying teachers and school staff wages and benefits owed through the closure date, and it would require that publicly funded assets be returned or properly accounted for if a charter school shuts down.

“Just in the last year, thousands of students and hundreds of staff have been impacted by charter school closures in Chicago, leaving families with no money and no accountability, with very little notice,” said Villanueva. “Illinois must place students, educators, school staff and taxpayers at the forefront, and this measure provides the accountability to make that possible.”

Senate Bill 3391 passed the Senate Thursday and heads to the House for further consideration.