97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2890

 

Introduced 2/22/2011, by Rep. Michelle Mussman

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/17-1  from Ch. 122, par. 17-1

    Amends the School Code. With respect to the annual budget of a school district with under 500,000 inhabitants, provides that, beginning with the budget for the 2012-2013 school year, 85% of State funding under the State aid formula provisions of the Code must be dedicated to objects and purposes related to classroom teaching. Provides that the State Board of Education shall, by rule, determine which objects and purposes are related to classroom teaching.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
517-1 as follows:
 
6    (105 ILCS 5/17-1)  (from Ch. 122, par. 17-1)
7    Sec. 17-1. Annual Budget. The board of education of each
8school district under 500,000 inhabitants shall, within or
9before the first quarter of each fiscal year, adopt and file
10with the State Board of Education an annual balanced budget
11which it deems necessary to defray all necessary expenses and
12liabilities of the district, and in such annual budget shall
13specify the objects and purposes of each item and amount needed
14for each object or purpose. Beginning with the budget for the
152012-2013 school year, 85% of State funding under Section
1618-8.05 of this Code must be dedicated to objects and purposes
17related to classroom teaching. The State Board of Education
18shall, by rule, determine which objects and purposes are
19related to classroom teaching.
20    The budget shall be entered upon a School District Budget
21form prepared and provided by the State Board of Education and
22therein shall contain a statement of the cash on hand at the
23beginning of the fiscal year, an estimate of the cash expected

 

 

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1to be received during such fiscal year from all sources, an
2estimate of the expenditures contemplated for such fiscal year,
3and a statement of the estimated cash expected to be on hand at
4the end of such year. The estimate of taxes to be received may
5be based upon the amount of actual cash receipts that may
6reasonably be expected by the district during such fiscal year,
7estimated from the experience of the district in prior years
8and with due regard for other circumstances that may
9substantially affect such receipts. Nothing in this Section
10shall be construed as requiring any district to change or
11preventing any district from changing from a cash basis of
12financing to a surplus or deficit basis of financing; or as
13requiring any district to change or preventing any district
14from changing its system of accounting.
15    To the extent that a school district's budget is not
16balanced, the district shall also adopt and file with the State
17Board of Education a deficit reduction plan to balance the
18district's budget within 3 years. The deficit reduction plan
19must be filed at the same time as the budget, but the State
20Superintendent of Education may extend this deadline if the
21situation warrants.
22    The board of education of each district shall fix a fiscal
23year therefor. If the beginning of the fiscal year of a
24district is subsequent to the time that the tax levy due to be
25made in such fiscal year shall be made, then such annual budget
26shall be adopted prior to the time such tax levy shall be made.

 

 

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1The failure by a board of education of any district to adopt an
2annual budget, or to comply in any respect with the provisions
3of this Section, shall not affect the validity of any tax levy
4of the district otherwise in conformity with the law. With
5respect to taxes levied either before, on, or after the
6effective date of this amendatory Act of the 91st General
7Assembly, (i) a tax levy is made for the fiscal year in which
8the levy is due to be made regardless of which fiscal year the
9proceeds of the levy are expended or are intended to be
10expended, and (ii) except as otherwise provided by law, a board
11of education's adoption of an annual budget in conformity with
12this Section is not a prerequisite to the adoption of a valid
13tax levy and is not a limit on the amount of the levy.
14    Such budget shall be prepared in tentative form by some
15person or persons designated by the board, and in such
16tentative form shall be made conveniently available to public
17inspection for at least 30 days prior to final action thereon.
18At least 1 public hearing shall be held as to such budget prior
19to final action thereon. Notice of availability for public
20inspection and of such public hearing shall be given by
21publication in a newspaper published in such district, at least
2230 days prior to the time of such hearing. If there is no
23newspaper published in such district, notice of such public
24hearing shall be given by posting notices thereof in 5 of the
25most public places in such district. It shall be the duty of
26the secretary of such board to make such tentative budget

 

 

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1available to public inspection, and to arrange for such public
2hearing. The board may from time to time make transfers between
3the various items in any fund not exceeding in the aggregate
410% of the total of such fund as set forth in the budget. The
5board may from time to time amend such budget by the same
6procedure as is herein provided for its original adoption.
7    Beginning July 1, 1976, the board of education, or regional
8superintendent, or governing board responsible for the
9administration of a joint agreement shall, by September 1 of
10each fiscal year thereafter, adopt an annual budget for the
11joint agreement in the same manner and subject to the same
12requirements as are provided in this Section.
13    The State Board of Education shall exercise powers and
14duties relating to budgets as provided in Section 2-3.27 of
15this Code and shall require school districts to submit their
16annual budgets, deficit reduction plans, and other financial
17information, including revenue and expenditure reports and
18borrowing and interfund transfer plans, in such form and within
19the timelines designated by the State Board of Education.
20    By fiscal year 1982 all school districts shall use the
21Program Budget Accounting System.
22    In the case of a school district receiving emergency State
23financial assistance under Article 1B, the school board shall
24also be subject to the requirements established under Article
251B with respect to the annual budget.
26(Source: P.A. 94-234, eff. 7-1-06.)