SPRINGFIELD – A measure led by State Senator Celina Villanueva to strengthen financial accountability and protect students and families when charter schools face financial instability passed the Illinois Senate Executive Committee Wednesday.

“When a school suddenly shuts its doors, it is the students, families and educators who are left scrambling,” Villanueva (D-Chicago) said. “This legislation ensures there are clear safeguards in place so communities are not blindsided by closures and public resources are properly protected.”

Senate Bill 3391 would require charter school operators to formally execute renewal agreements within 90 days of approval and 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.

This measure would 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 authority 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.

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

“In recent years, we’ve seen how sudden financial instability can disrupt entire school communities,” Villanueva said. “This bill provides accountability measures that put students, educators and taxpayers first.”

Senate Bill 3391 passed the Senate Executive Committee Wednesday.