Bill Text: IL HB3298 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: 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 2017-2018 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.

Spectrum: Strong Partisan Bill (Democrat 13-1)

Status: (Introduced) 2017-04-25 - House Committee Amendment No. 1 Fiscal Note Filed as Amended [HB3298 Detail]

Download: Illinois-2017-HB3298-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3298

Introduced , by Rep. Sue Scherer

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 2017-2018 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
152017-2018 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 If, as the result of an audit performed in compliance with
23Section 3-7 of this Code, the resulting Annual Financial Report
24required to be submitted pursuant to Section 3-15.1 of this
25Code reflects a deficit as defined for purposes of the
26preceding paragraph, then the district shall, within 30 days

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1after acceptance of such audit report, submit a deficit
2reduction plan.
3 The board of education of each district shall fix a fiscal
4year therefor. If the beginning of the fiscal year of a
5district is subsequent to the time that the tax levy due to be
6made in such fiscal year shall be made, then such annual budget
7shall be adopted prior to the time such tax levy shall be made.
8The failure by a board of education of any district to adopt an
9annual budget, or to comply in any respect with the provisions
10of this Section, shall not affect the validity of any tax levy
11of the district otherwise in conformity with the law. With
12respect to taxes levied either before, on, or after the
13effective date of this amendatory Act of the 91st General
14Assembly, (i) a tax levy is made for the fiscal year in which
15the levy is due to be made regardless of which fiscal year the
16proceeds of the levy are expended or are intended to be
17expended, and (ii) except as otherwise provided by law, a board
18of education's adoption of an annual budget in conformity with
19this Section is not a prerequisite to the adoption of a valid
20tax levy and is not a limit on the amount of the levy.
21 Such budget shall be prepared in tentative form by some
22person or persons designated by the board, and in such
23tentative form shall be made conveniently available to public
24inspection for at least 30 days prior to final action thereon.
25At least 1 public hearing shall be held as to such budget prior
26to final action thereon. Notice of availability for public

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1inspection and of such public hearing shall be given by
2publication in a newspaper published in such district, at least
330 days prior to the time of such hearing. If there is no
4newspaper published in such district, notice of such public
5hearing shall be given by posting notices thereof in 5 of the
6most public places in such district. It shall be the duty of
7the secretary of such board to make such tentative budget
8available to public inspection, and to arrange for such public
9hearing. The board may from time to time make transfers between
10the various items in any fund not exceeding in the aggregate
1110% of the total of such fund as set forth in the budget. The
12board may from time to time amend such budget by the same
13procedure as is herein provided for its original adoption.
14 Beginning July 1, 1976, the board of education, or regional
15superintendent, or governing board responsible for the
16administration of a joint agreement shall, by September 1 of
17each fiscal year thereafter, adopt an annual budget for the
18joint agreement in the same manner and subject to the same
19requirements as are provided in this Section.
20 The State Board of Education shall exercise powers and
21duties relating to budgets as provided in Section 2-3.27 of
22this Code and shall require school districts to submit their
23annual budgets, deficit reduction plans, and other financial
24information, including revenue and expenditure reports and
25borrowing and interfund transfer plans, in such form and within
26the timelines designated by the State Board of Education.

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1 By fiscal year 1982 all school districts shall use the
2Program Budget Accounting System.
3 In the case of a school district receiving emergency State
4financial assistance under Article 1B, the school board shall
5also be subject to the requirements established under Article
61B with respect to the annual budget.
7(Source: P.A. 97-429, eff. 8-16-11.)
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