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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
SCHOOLS (105 ILCS 5/) School Code. 105 ILCS 5/34-32
(105 ILCS 5/34-32) (from Ch. 122, par. 34-32)
Sec. 34-32.
Resolution for bond issue-Signature-Sale.
Before issuing any bonds under Section 34-31, as amended, the board
shall adopt a resolution designating the purpose and fixing the amount of
the bonds proposed to be issued, the maturity thereof, the rate of interest
thereon and the amount of taxes to be levied annually for the purpose of
paying the principal and interest.
The bonds shall be issued in the corporate name of the school district.
They shall be signed by the president and secretary of the board, and
countersigned by the mayor and the comptroller (or city clerk if there be
no comptroller) of the city. They shall be sold by the city comptroller (or
city clerk if there be no comptroller) at not less than par upon such terms
as may be approved by the board after advertisement for bids as ordered by
and under the direction of the board and the proceeds thereof shall be
received by the city treasurer, as school treasurer, for the uses herein
provided.
(Source: Laws 1961, p. 3226.)
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105 ILCS 5/34-33
(105 ILCS 5/34-33) (from Ch. 122, par. 34-33)
Sec. 34-33.
Tax
for payment of bonds.
Before or at the time of issuing bonds under Sections 34-31 and 34-32,
as amended, the city council, upon the demand and under the direction of
the board, shall, by ordinance, provide for the collection of a direct
annual tax upon all the taxable property of the school district sufficient
to pay and discharge the principal thereof at maturity and to pay the
interest thereon as it falls due. Upon the filing in the office of the
county clerk of the county wherein the school district is located of a
certified copy of any such ordinance the county clerk shall extend the tax
therein provided for. The ordinance shall be in force upon its passage.
(Source: Laws 1961, p. 3226 .)
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105 ILCS 5/34-34
(105 ILCS 5/34-34) (from Ch. 122, par. 34-34)
Sec. 34-34.
Bond moneys set apart-Use and reimbursement of fund.
All
moneys derived from the issuance of bonds under Sections 34-31 and
34-32, or from any tax levied pursuant to Section 34-57 when received by
the city treasurer, as school treasurer, shall be set apart in the
working cash fund. The moneys in such fund shall not be regarded as
current assets available for appropriation and shall not be appropriated
by the board in the annual school budget, but in order to provide moneys
with which to meet ordinary and necessary disbursements for salaries and
other educational purposes may be transferred, in whole or in part, to
the educational purposes fund of the board and so disbursed therefrom
(a) in anticipation of the collection of any taxes lawfully levied for
educational purposes, (b) in anticipation of the receipt of moneys to be
derived from the common school fund of the State and from State
appropriations, or (c) in anticipation of such taxes, as by law now or
hereafter enacted or amended, imposed by the General Assembly of the
State of Illinois to replace revenue lost by units of local government
and school districts as a result of the abolition of ad valorem personal
property taxes, pursuant to Article IX, Section 5(c) of the Constitution
of the State of Illinois. Moneys transferred to the educational
purposes fund in anticipation of the collection of taxes shall be deemed
to have been transferred in anticipation of the collection of that part
of the taxes so levied or to be received which is in excess of the
amount or amounts thereof required to pay any warrants, and the interest
thereon, theretofore or thereafter issued under Sections 34-22 through
34-24, the amount estimated to be required to satisfy debt service and
pension or retirement obligations as set forth in Section 12 of "An Act
in relation to State revenue sharing with local government entities", approved
July 31, 1969, as amended.
Such taxes levied for educational purposes when collected
shall be applied first to the payment of any such warrants or notes and
the interest thereon and
the amount estimated to be required to satisfy debt service and pension
or retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended, and
then to the reimbursement of the working cash
fund as hereinafter provided. Upon the receipt by the city treasurer, as
school treasurer, of any taxes or other moneys, in anticipation of the
collection or receipt whereof moneys of the working cash fund have been
so transferred for disbursement, such fund shall immediately be
reimbursed therefrom until the full amount so transferred has been
re-transferred to said fund. If taxes in anticipation of the collection
of which such transfers are made are not collected in sufficient amounts
to effect a complete reimbursement of the working cash fund of the
amounts transferred from the working cash fund to the educational
purposes fund the deficiencies between the amounts thus transferred and
the amounts repaid from collections shall be general obligations of the
educational purposes fund until repaid either from taxes in anticipation
of which transfers were made or from appropriations which may be made in
annual school budgets of sums of money to apply on such general
obligations or until repaid from both the taxes in anticipation of which
such transfers were made and from appropriations which may be made in
annual school budgets of sums of money to apply on such general
obligations.
(Source: P.A. 81-1506.)
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105 ILCS 5/34-35
(105 ILCS 5/34-35) (from Ch. 122, par. 34-35)
Sec. 34-35.
Resolution for transfer from fund-Amount transferred.
Moneys shall be transferred from the working cash fund to the
educational purposes fund only upon the authority of the board, which
shall by resolution direct the school treasurer to make such transfers.
The resolution shall set forth (a) the taxes or other funds in
anticipation of the collection or receipt of which the working cash fund
is to be reimbursed, (b) the entire amount of taxes extended, or which
the board shall estimate will be extended or received, for any year in
anticipation of the collection of all or part of which such transfer is
to be made, (c) the aggregate amount of warrants or notes theretofore
issued in anticipation of the collection of such taxes under the
provisions of Sections 34-22 through 34-24 together with the amount of
interest accrued and which the board of education estimates will accrue
thereon, (d) the amount of moneys which the board of education estimates
will be derived for any year from the common school fund of the State
and from State appropriations in anticipation of the receipt of all or
part of which such transfer is to be made, (e)
the aggregate amount of receipts from taxes imposed to replace revenue
lost by units of local government and school districts as a result of the
abolition of ad valorem personal property taxes, pursuant to Article IX,
Section 5(c) of the Constitution of the State of Illinois, which the corporate
authorities estimate will be set aside for the payment of the proportionate
amount of debt service and pension or retirement obligations, as required by
Section 12 of "An Act in relation to State Revenue Sharing with local
government
entities", approved July 31, 1969, as amended, and (f)
the aggregate amount
of moneys theretofore transferred from the working cash fund to the
educational purposes fund in anticipation of the collection of such
taxes or of the receipt of such other moneys from the State. The amount
which the resolution shall direct the school treasurer so to transfer in
anticipation of the collection of taxes levied or to be received for any
year, together with the aggregate amount of such anticipation tax
warrants or notes theretofore drawn against such taxes
and the amount of
the interest accrued and estimated to accrue thereon, the amount estimated
to be required to satisfy debt service and pension or
retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended,
and the aggregate
amount of such transfers theretofore made in anticipation of the
collection of such taxes shall not exceed 90% of the actual or estimated
amount of such taxes extended or to be extended or to be received as set
forth in the resolution. The amount which the resolution shall direct
the school treasurer so to transfer in anticipation of the receipt of
moneys to be derived for any year from the common school fund of the
State or from any State appropriation, together with the aggregate
amount theretofore transferred in anticipation of the receipt of any
such moneys, shall not exceed the total amount which it is so estimated
will be received from such source. When moneys are available in the
working cash fund they shall be transferred to the educational purposes
fund and disbursed for the payment of salaries and other educational
expenses so as to avoid, whenever possible, the issuance of tax
anticipation warrants or notes.
(Source: P.A. 81-1506.)
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105 ILCS 5/34-36
(105 ILCS 5/34-36) (from Ch. 122, par. 34-36)
Sec. 34-36.
Violations of provisions-Liability.
Any member of the board or any officer thereof or of the city, or any
other person holding any other trust or employment under the board or
city, who is guilty of the wilful violation of any of the provisions of
Sections 34-30 through 34-35, shall be guilty of a business offense
and may be fined not exceeding $10,000 and shall forfeit his right to
his office, trust or employment and shall be removed therefrom. Any such
member, officer or person shall be liable for any sum that may be
unlawfully diverted from the working cash fund or otherwise used, to be
recovered by the board or by any taxpayer in the name and for the
benefit of the board in an appropriate civil action. A taxpayer so
suing shall file a bond for and shall be liable for all costs taxed
against the board in such suit. Nothing herein shall bar any other
remedies.
(Source: P.A. 79-1366.)
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105 ILCS 5/34-37
(105 ILCS 5/34-37) (from Ch. 122, par. 34-37)
Sec. 34-37.
Abolishment of working cash funds.
The board may abolish
its working cash fund, upon the adoption of a resolution so providing, and
directing the transfer of any balance in such fund to the educational purposes
fund, effective upon the adoption of such resolution. Thereafter, all outstanding
taxes of such board levied pursuant to Section 34-57 of this Article shall
be collected and paid into the educational fund. Any obligation incurred
by such board pursuant to Section 34-31 of this Article shall be discharged
as therein provided. Nothing contained herein shall affect the validity
of any existing obligations of the board.
(Source: P.A. 81-1221.)
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105 ILCS 5/34-38
(105 ILCS 5/34-38) (from Ch. 122, par. 34-38)
Sec. 34-38.
Re-creation of working cash fund.
Nothing in this Article prevents
a board which has abolished its working cash fund from again creating a
working cash fund in the manner provided in Section 34-30 of this Article;
provided, however that should the working cash fund be so recreated, the
board shall not thereby be authorized to issue working cash fund bonds in
an amount greater than the amount authorized at the time of abolition of
such fund, and no tax shall be levied for the recreated working cash fund
pursuant to Section 34-57 of this Article.
(Source: P.A. 81-1221.)
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105 ILCS 5/prec. Sec. 34-42
(105 ILCS 5/prec. Sec. 34-42 heading)
BUDGET AND APPROPRIATIONS
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105 ILCS 5/34-42
(105 ILCS 5/34-42) (from Ch. 122, par. 34-42)
Sec. 34-42.
Fiscal year.
The period commencing January 1, 1974 and ending
August 31, 1974 shall be a fiscal year. Beginning September 1, 1974, each
fiscal year of the board through fiscal year 1996 shall commence on September 1
of each year and end on August 31 of the following year. The period commencing
September 1, 1996 and ending June 30, 1997 shall be a fiscal year. Beginning
July 1, 1997 and thereafter, the fiscal year of the board shall commence on
July 1 of each year and end on June 30 of the following year.
(Source: P.A. 89-15, eff. 5-30-95.)
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105 ILCS 5/34-42.1
(105 ILCS 5/34-42.1)
Sec. 34-42.1. (Repealed).
(Source: P.A. 77-2734. Repealed by P.A. 94-1105, eff. 6-1-07.)
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105 ILCS 5/34-42.2
(105 ILCS 5/34-42.2)
Sec. 34-42.2. (Repealed).
(Source: P.A. 78-497. Repealed by P.A. 94-1105, eff. 6-1-07.)
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105 ILCS 5/34-43
(105 ILCS 5/34-43) (from Ch. 122, par. 34-43)
Sec. 34-43.
Adoption of budget and resolution.
The board shall, within the first 60 days of each fiscal year, adopt a
budget and pass a resolution to be termed the "annual school budget",
hereinafter called the "budget", in and by which the board, subject to the
limitations hereinafter contained, shall appropriate such sums of money as
may be required to defray all of its estimated expenses and liabilities to
be paid or incurred during the fiscal year.
The budget shall be balanced in each year within standards established by
the board, consistent with the provisions of this Article.
The budget may provide for the accumulation of funds for educational purposes
as the board may direct for capital improvements or in order to achieve a
balanced budget in a future year within the 4-year period of the board's
financial plan to begin in that budget year. The budget may also provide for a
reserve in the educational fund to ensure uninterrupted services in the event
of unfavorable budget variances.
The changes made to this Section by this amendatory Act of 1996 apply to
budgets and amended
and supplemental
budgets for fiscal years beginning in 1995 and subsequent
years.
(Source: P.A. 89-636, eff. 8-9-96.)
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105 ILCS 5/34-43a
(105 ILCS 5/34-43a)
Sec. 34-43a.
Post annual budget on web site.
The school district
shall post its current annual school budget, itemized by
receipts and
expenditures, on the
district's Internet web site. The school district shall notify the parents or
guardians of its students that the budget has been posted on the
district's web site and what the web site's address is.
(Source: P.A. 92-438, eff. 1-1-02.)
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105 ILCS 5/34-43.1
(105 ILCS 5/34-43.1) (from Ch. 122, par. 34-43.1)
Sec. 34-43.1. (A) Limitation of noninstructional costs. It is the
purpose of this Section to establish for the Board of Education and the
general superintendent of schools requirements and standards which maximize
the proportion of school district resources in direct support of
educational, program, and building maintenance and safety services for the
pupils of the district, and which correspondingly minimize the amount and
proportion of such resources associated with centralized administration,
administrative support services, and other noninstructional services.
The Board
of Education shall undertake budgetary and expenditure control actions which
limit the administrative expenditures of the Board of Education to levels,
as provided for in this Section, which represent an average of the
administrative expenses of all school districts in this State not subject
to Article 34.
(B) Certification of expenses by the State Superintendent of Education.
The State Superintendent of Education shall annually certify, on or before
May 1, to the Board of Education, for the
applicable school year, the following information:
(1) the annual expenditures of all school districts | | of the State not subject to Article 34 properly attributable to expenditure functions defined by the rules and regulations of the State Board of Education as: 2210 (Improvement of Instructional Services); 2300 (Support Services - General Administration) excluding, however, 2320 (Executive Administrative Services); 2490 (Other Support Services - School Administration); 2500 (Support Services - Business); 2600 (Support Services - Central);
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(2) the total annual expenditures of all school
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(3) a ratio, to be called the statewide average of
| | administrative expenditures, derived by dividing the expenditures certified pursuant to paragraph (B)(1) by the expenditures certified pursuant to paragraph (B)(2).
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For purposes of the annual certification of expenditures and ratios
required by this Section, the "applicable year" of certification shall
initially be the 1986-87 school year and, in sequent years, each
succeeding school year.
The State Superintendent of Education shall consult with the Board of
Education to ascertain whether particular expenditure items allocable to
the administrative functions enumerated in paragraph (B)(1) are
appropriately or necessarily higher in the applicable school district than
in the rest of the State due to noncomparable factors. The State
Superintendent shall also review the relevant cost proportions in other
large urban school districts. The State Superintendent shall also review
the expenditure categories in paragraph (B)(1) to ascertain whether they
contain school-level expenses. If he or she finds that adjustments to the
formula are appropriate or necessary to establish a more fair and
comparable standard for administrative cost for the Board of Education or
to exclude school-level expenses, the State Superintendent shall recommend
to the Board of Education adjusting certain costs in
determining the budget and expenditure items properly attributable to the
functions or otherwise adjust the formula.
(C) Administrative expenditure limitations. The annual budget of the
Board of Education, as adopted and implemented, and the
related annual expenditures for the school year, shall reflect a limitation
on administrative outlays as required by the following provisions, taking
into account any adjustments established by the State Superintendent of
Education: (1) the budget and expenditures of the Board of Education shall reflect
a ratio of administrative expenditures to total expenditures equal to or
less than the statewide average of administrative expenditures certified by
the State Superintendent of Education for the applicable year pursuant to
paragraph (B)(3); (2) if for any school year the budget of the Board of
Education reflects a ratio of administrative expenditures to total
expenditures which exceeds the applicable statewide average, the Board of
Education shall reduce expenditure items allocable to the administrative
functions enumerated in paragraph (B)(1) such that the Board of Education's
ratio of administrative expenditures to total expenditures is equal to or
less than the applicable statewide average ratio.
For purposes of this Section, the ratio of administrative expenditures to
the total expenditures of the Board of Education, as applied to the budget
of the Board of Education, shall mean: the budgeted expenditure items of
the Board of Education properly attributable to the expenditure functions
identified in paragraph (B)(1) divided by the total budgeted expenditures of
the Board of Education properly attributable to the Board of Education
funds corresponding to those funds identified in paragraph (B)(2),
exclusive of any monies budgeted for payment to the Public School Teachers'
Pension and Retirement System, attributable to payments due from the
General Funds of the State of Illinois.
The annual
expenditure of the Board of Education for 2320 shall be no greater than the 2320
expenditure for the immediately preceding school year or the 1988-89 school
year, whichever is less. This annual expenditure limitation may be
adjusted in each year in an amount not to exceed any change effective
during the applicable school year in salary to be paid under the collective
bargaining agreement with instructional personnel to which the Board is a
party and in benefit costs either required by law or such collective
bargaining agreement.
(D) Cost control measures. In undertaking actions to control or reduce
expenditure items necessitated by the administrative expenditure
limitations of this Section, the Board of Education shall give priority
consideration to reductions or cost controls with the least effect upon
direct services to students or instructional services for pupils, and upon
the safety and well-being of pupils, and, as applicable, with the
particular costs or functions to which the Board of Education is higher
than the statewide average.
For purposes of assuring that the cost control priorities of this
subsection (D) are met, the State Superintendent of Education shall, with
the assistance of the Board of Education, review the cost allocation
practices of the Board of Education. No position closed shall be
reopened using State or federal categorical funds.
(E) Report of Audited Information. The Board of Education shall file with the
State Board of Education the Annual Financial Report and its audit, as
required by the rules of the State Board of Education. Such reports shall
be filed no later than February 15 following the end of the school year of
the Board of Education.
As part of the required Annual Financial Report, the Board of Education
shall provide a detailed accounting of the central level, district, bureau
and department costs and personnel included within expenditure functions
included in paragraph (B)(1). The nature and detail of the reporting
required for these functions shall be prescribed by the State Board of
Education in rules and regulations. A copy of this detailed accounting
shall also be provided annually to the
public. This report shall contain a reconciliation to the board of
education's adopted budget for that fiscal year, specifically delineating
administrative functions.
If the information required under this Section is not provided by the
Board of Education in a timely manner, or is initially or subsequently
determined by the State Superintendent of Education to be incomplete or
inaccurate, the State Superintendent shall, in writing, notify the Board
of Education of reporting deficiencies. The Board of Education shall,
within 60 days of such notice, address the reporting deficiencies
identified. If the State Superintendent of Education does not receive
satisfactory response to these reporting deficiencies within 60 days, the
next payment of evidence-based funding due the Board of Education under Section 18-8.15 and all subsequent payments shall be withheld by the State
Superintendent of Education until the enumerated deficiencies have
been addressed.
Utilizing the Annual Financial Report, the State Superintendent of
Education shall certify annually on or before May 1
the Board of Education's ratio of administrative expenditures to total
expenditures. Such certification shall indicate the extent to which the
administrative expenditure ratio of the Board of Education conformed to the
limitations required in subsection (C) of this Section, taking into account
any adjustments of the limitations which may have been recommended by the
State Superintendent of Education to the Board of Education. In
deriving the administrative expenditure ratio of the Chicago Board of
Education, the State Superintendent of Education shall utilize the
definition of this ratio prescribed in subsection (C) of this Section,
except that the actual expenditures of the Board of Education shall be
substituted for budgeted expenditure items.
(Source: P.A. 102-894, eff. 5-20-22.)
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105 ILCS 5/34-44
(105 ILCS 5/34-44) (from Ch. 122, par. 34-44)
Sec. 34-44.
Budget estimates.
The budget shall set forth estimates, by
classes, of all current assets and liabilities of each fund of the board
as of the beginning of the fiscal
year, and the amounts of such assets estimated to be available for
appropriation in such year, either for expenditures or charges to be made
or incurred during such year or for liabilities unpaid at the beginning
thereof. Estimates of taxes to be received from prior levies shall be net,
after deducting amounts estimated to be sufficient to cover the loss and
cost of collecting such taxes and also deferred collections thereof and
abatements in the amount of such taxes extended or to be extended upon the
collectors' books.
Estimates of the liabilities of the respective funds shall include:
1. All final judgments, including accrued interest thereon, entered
against the board and unpaid at the beginning of such fiscal year;
2. The principal of all general obligation notes or anticipation tax
warrants and all temporary loans and all accrued interest thereon unpaid at
the beginning of such fiscal year;
3. Any amount for which the board is required to reimburse the working
cash fund from the educational purposes fund pursuant to the provisions of
Section 34-30 through 34-36 and
4. The amount of all accounts payable including estimates of audited
vouchers, participation certificates, inter fund loans and purchase orders
payable.
The budget shall also set forth detailed estimates of all accrued tax
revenues recognized for such year and of all current revenues to be
derived from sources
other than taxes, including State contributions, rents, fees, perquisites
and all other types of revenue, which will be applicable to expenditures
or charges to be made or incurred during such year.
All such estimates shall be so segregated and classified as to funds,
and in such other manner as to give effect to the requirements of law
relating to the respective purposes to which the assets and taxes and other
current revenues are applicable, so that no expenditure shall be authorized
or made for any purpose in excess of the money lawfully available therefor.
The several estimates of assets, liabilities and expenditure
requirements required or authorized to be made by this and the next
succeeding section shall be made on the basis of information known to the
board at the close of the preceding fiscal year and shall not be
invalidated or otherwise subject to attack merely because after that time
additional information is known to or could be discovered by the board that
would require a different estimate, or because the board might have amended
such estimates under any of the provisions of Section 34-47.
(Source: P.A. 84-1238.)
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105 ILCS 5/34-44.1
(105 ILCS 5/34-44.1) (from Ch. 122, par. 34-44.1)
Sec. 34-44.1.
Supplemental budget estimate.
When the value of the
taxable property in the school district is increased either by the
establishment of a new multiplier by the Department of Revenue or the
availability of a later assessment by virtue of additions
to the tax rolls or increases in assessments made by the county assessor
after the annual school budget has been adopted, the board of education
may adopt, by a 2/3 vote of the full membership of the board, a
supplemental budget to provide for the use of the added potential
revenues in an amount that shall not exceed a sum equivalent to the
product of the amount of the increase in the value of taxable property
in the district multiplied by the maximum per cent or rate of tax which
the board and the corporate authorities of the city are authorized by
law to levy for the current fiscal year for educational, building, free
textbook, agricultural science school, supervised playground outside school
hours purposes (or supervised playground outside school hours and stadia,
social center and summer swimming pool open to the public purposes, as the case
may be) or special education purposes. With respect to any supplemental budget
based upon an increase in the value of the taxable property in the school
district, such supplemental budget shall be adopted within 60 days of the date
of the final certification of the equalization rate by the Department of
Revenue to the county clerk as provided in the Property Tax Code, regardless of
whether the adoption occurs within or
after the close of the fiscal year to which the increase applies, but shall not
become effective unless approved in accordance with Article 34A of "The School
Code".
(Source: P.A. 88-670, eff. 12-2-94.)
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105 ILCS 5/34-45
(105 ILCS 5/34-45) (from Ch. 122, par. 34-45)
Sec. 34-45.
Budget appropriations.
The budget shall specify:
1. the several organization units, purposes, and | | objects for which appropriations are made;
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2. the amount appropriated for each organization
| | unit, purpose or object; and
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3. the fund from or to which each amount
| | appropriated is to be paid or charged.
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The budget shall include appropriations for:
1. all estimated current expenditures or charges to
| | be made or incurred during such fiscal year, including interest to accrue on anticipation tax warrants and temporary loans;
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2. all final judgments, including accrued interest
| | thereon, entered against the board and unpaid at the beginning of such fiscal year;
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3. any amount for which the board is required to
| | reimburse the working cash fund from the educational purposes fund pursuant to Sections 34-30 through 34-36; and
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4. all other estimated liabilities, including the
| | principal of all tax anticipation warrants and all temporary loans and all accrued interest thereon, incurred during prior years and unpaid at the beginning of such fiscal year.
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(Source: P.A. 84-1238 .)
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