The Chicago Teachers Union lauds the move as a step in the right direction for underpaid teachers who are burdened by the expense of city living.
"Some teachers aren't making the kind of salary to be able to live in the city," spokeswoman Rosemaria Genova said.
Chicago officials, including members of the CPS and the Daley administration are not in favor of the plan because it subverts a rule that requires all municipal workers to reside in the city limits.
"I think it's a real slippery slope. . . . I really think they contribute to the stability of the communities in which they reside," said Sen. Ed Maloney (D-Chicago).
The proposal will now go to the Illinois House for a vote.