Bill Text: IL HB4680 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the School Code. Provides that no elementary or high school district established pursuant to the Conversion and Formation of School Districts Article may levy taxes for educational purposes at a rate greater than 2.0% of the value as equalized or assessed by the Department of Revenue or for operations and maintenance purposes at a rate greater than 0.375% of the value as equalized or assessed by the Department of Revenue. Provides that in districts maintaining grades 1 through 8 or grades 9 through 12, the maximum rate for educational purposes shall not exceed 3.5% of the value as equalized or assessed by the Department of Revenue for taxes levied for 2015 or prior years, shall not exceed 3.2% for taxes levied for 2016, shall not exceed 2.9% for taxes levied for 2017, shall not exceed 2.6% for taxes levied for 2018, shall not exceed 2.3% for taxes levied for 2019, and shall not exceed 2.0% for taxes levied for 2020 or thereafter (now, the maximum rate is 3.5%). Provides that in districts maintaining grades 1 through 8 or grades 9 through 12, the maximum rate for operations and maintenance purposes shall not exceed 0.55% for taxes levied for 2015 or prior years, shall not exceed 0.475% for taxes levied for 2016, shall not exceed 0.45% for taxes levied for 2017, shall not exceed 0.425% for taxes levied for 2018, shall not exceed 0.40% for taxes levied for 2019, and shall not exceed 0.375% for taxes levied for 2020 or thereafter (now, the maximum rate is 0.55%).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB4680 Detail]

Download: Illinois-2013-HB4680-Engrossed.html

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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Sections
11E-90, 11E-95, 17-3, and 17-5 as follows:
(105 ILCS 5/11E-90)
Sec. 11E-90. Classification of property, taxes, bonds, and
funds for combined high school - unit districts.
(a) All real property included within the boundaries of a
combined high school - unit district created in accordance with
this Article shall be classified into either a high school only
classification or elementary and high school classification as
follows:
(1) Real property included within the high school only
classification shall include all of the real property
included within both the boundaries of the combined high
school - unit district and the boundaries of a separate
school district organized and established for purposes of
providing instruction up to and including grade 8.
(2) Real property included within the elementary and
high school classification shall include all of the real
property of the combined high school - unit district not
included in the high school only classification.

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(b) The petition to establish a combined high school - unit
district shall set forth the maximum annual authorized tax
rates for the proposed district as follows:
(1) The petition to establish a combined high school -
unit district must include a maximum annual authorized tax
rate for both grade K through 8 educational purposes and
grade 9 through 12 educational purposes. The rate for grade
K through 8 educational purposes shall not exceed 3.5%. The
rate for grade 9 through 12 educational purposes shall not
exceed 3.5%. The combined rate for both grade K through 8
and grade 9 through 12 educational purposes shall not
exceed 7.0% 4.0%.
(2) The petition to establish a combined high school -
unit district must include a maximum annual authorized tax
rate for both grade K through 8 operations and maintenance
purposes and grade 9 through 12 operations and maintenance
purposes. The rate for grade K through 8 operations and
maintenance purposes shall not exceed 0.55%. The rate for
grade 9 through 12 operations and maintenance purposes
shall not exceed 0.55%. The combined rate for both grade K
through 8 and grade 9 through 12 operations and maintenance
purposes shall not exceed 1.10% 0.75%.
(3) The petition to establish a combined high school -
unit district must include a maximum annual authorized tax
rate for both grade K through 8 special education purposes
and grade 9 through 12 special education purposes. The rate

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for grade K through 8 special education purposes shall not
exceed 0.40%. The rate for grade 9 through 12 special
education purposes shall not exceed 0.40%.
(4) The petition to establish a combined high school -
unit district must include a maximum annual authorized tax
rate for transportation purposes.
(5) If it is desired to secure authority to levy other
taxes above the permissive rate applicable to unit
districts as specified elsewhere in statute, the petition
must include the maximum annual authorized tax rate at
which the district will be authorized to levy a tax for
each such purpose, not to exceed the maximum rate
applicable to unit districts as specified elsewhere in
statute.
(c) The school board of any new combined high school - unit
district created under the provisions of this Article may levy
a tax annually upon all of the taxable property of the district
at the value as equalized or assessed by the Department of
Revenue, as follows:
(1) For all real property within the district, rates
not to exceed the maximum annual authorized grade 9 through
12 educational purposes rate established in accordance
with subdivision (1) of subsection (b) of this Section, the
maximum annual authorized grade 9 through 12 operation and
maintenance purposes rate established in accordance with
subdivision (2) of subsection (b) of this Section, the

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maximum annual authorized grade 9 through 12 special
education purposes rate established in accordance with
subdivision (3) of subsection (b) of this Section, the
maximum annual authorized transportation purposes rate
established in accordance with subdivision (4) of
subsection (b) of this Section, and for all other purposes,
the statutory permissive rate for unit districts or the
maximum annual authorized rate for that purpose
established in accordance with subdivision (5) of
subsection (b) of this Section.
(2) For all real property in the district included
within the elementary and high school classification, in
addition to the rates authorized by subdivision (1) of this
subsection (c), rates not to exceed the maximum annual
authorized grade K through 8 educational purposes rate
established in accordance with subdivision (1) of
subsection (b) of this Section, the maximum annual
authorized grade K through 8 operation and maintenance
purposes rate established in accordance with subdivision
(2) of subsection (b) of this Section, and the maximum
annual authorized grade K through 8 special education
purposes rate established in accordance with subdivision
(3) of subsection (b) of this Section.
(d) The school board may, subsequent to the formation of
the district and in accordance with Sections 17-2 through 17-7
of this Code, seek to increase the maximum annual authorized

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tax rates for any statutorily authorized purpose up to the
maximum rate set forth in subsection (b) of this Section or
otherwise applicable to unit districts as specified elsewhere
in statute, whichever is less, subject to the following
approval requirements:
(1) The school board may increase the following rates
only after submitting a proper resolution to the voters of
the district at any regular scheduled election and
obtaining approval by both a majority of voters living in
the portion of the territory included within the high
school only classification voting on the proposition and a
majority of voters living in the portion of the territory
included within the elementary and high school
classification voting on the proposition:
(A) The maximum annual authorized grade 9 through
12 educational purposes rate established in accordance
with subdivision (1) of subsection (b) of this Section,
as may be increased thereafter in accordance with this
subsection (d).
(B) The maximum annual authorized grade 9 through
12 operation and maintenance purposes rate established
in accordance with subdivision (2) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this subsection (d).
(C) The maximum annual authorized grade 9 through
12 special education purposes rate established in

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accordance with subdivision (3) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this Section.
(D) The maximum annual authorized transportation
purposes rate established in accordance with
subdivision (4) of subsection (b) of this Section, as
may be increased thereafter in accordance with this
subsection (d).
(E) For all other statutorily authorized purposes,
any rate exceeding the statutory permissive rate for
unit districts established in accordance with
subdivision (5) of subsection (b) of this Section, as
may be increased thereafter in accordance with this
Section.
(2) The school board may increase the following rates
only after submitting a proper resolution to the voters of
the district living in the portion of the territory
included within the elementary and high school
classification at any regular scheduled election and
obtaining approval by a majority of voters living in the
portion of the territory included within the elementary and
high school classification voting on the proposition:
(A) The maximum annual authorized grade K through 8
educational purposes rate established in accordance
with subdivision (1) of subsection (b) of this Section,
as may be increased thereafter in accordance with this

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subsection (d).
(B) The maximum annual authorized grade K through 8
operation and maintenance purposes rate established in
accordance with subdivision (2) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this subsection (d).
(C) The maximum annual authorized grade K through 8
special education purposes rate established in
accordance with subdivision (3) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this Section.
(e) The school board may, after submitting a proper
resolution to the voters of the district at any regular
scheduled election, seek to do either of the following:
(1) Increase or decrease the maximum authorized annual
tax rate for grade K through 8 educational purposes with an
equal corresponding increase or decrease of the maximum
authorized annual tax rate for grade 9 through 12
educational purposes, such that there is no change in the
total combined maximum authorized annual tax rate for both
purposes.
(2) Increase or decrease the maximum authorized annual
tax rate for grade K through 8 operations and maintenance
purposes with an equal corresponding increase or decrease
of the maximum authorized annual tax rate for grade 9
through 12 operations and maintenance purposes, such that

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there is no change in the total combined maximum authorized
annual tax rate for both purposes.
Any modification to maximum authorized annual tax rates
pursuant to this subsection (e) must be approved by both a
majority of voters living in the portion of the territory
included within the high school only classification voting on
the proposition and a majority of voters living in the portion
of the territory included within the elementary and high school
classification voting on the proposition. No maximum tax rate
secured hereunder may exceed the maximum tax rate for a
particular purpose specified elsewhere in statute.
(f) The school board may seek to do either of the
following:
(1) Increase the maximum authorized annual tax rate for
either grade K through 8 educational purposes or grade K
through 8 operations and maintenance purposes with an equal
corresponding decrease being effected to the maximum
authorized tax rate for the other fund.
(2) Increase the maximum authorized annual tax rate for
either grade 9 through 12 educational purposes or grade 9
through 12 operations and maintenance purposes with an
equal corresponding decrease being effected to the maximum
authorized tax rate for the other fund.
A proper resolution to increase and concurrently decrease
the maximum authorized annual tax rates for grade K through 8
purposes in accordance with this subsection (f) shall be

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submitted to the voters of the district residing in the
elementary and high school classification at any regular
scheduled election and must be approved by a majority of voters
living in the portion of the territory included within the
elementary and high school classification voting on the
proposition. A proper resolution to increase and concurrently
decrease the maximum authorized annual tax rates for grade 9
through 12 purposes in accordance with this subsection (f)
shall be submitted to all of the voters of the district at any
regular scheduled election and must be approved by a majority
of voters voting on the proposition. No maximum tax rate
secured hereunder may exceed the maximum tax rate for a
particular purpose specified elsewhere in statute. The terms
and provisions of this subsection (f) shall apply instead of
the terms and provisions of Section 17-6.1 of this Code to any
concurrent equal increase and decrease in the maximum
authorized rates for educational and operations and
maintenance purposes by a combined high school - unit district.
(g) The school board may borrow money and issue bonds for
elementary or high school purposes (but not K through 12
purposes) as authorized by Articles 10 and 19 and Section
17-2.11 of this Code and as otherwise permitted by law. All
notices, resolutions, and ballots related to borrowing money
and issuing bonds in accordance with this subsection (g) shall
indicate whether the proposed action is for elementary or high
school purposes. Taxes to pay the principal of, interest on,

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and premium, if any, on bonds issued for high school purposes
shall be extended against the entire district, and taxes to pay
the principal of, interest on, and premium, if any, on bonds
issued for elementary purposes shall be extended only against
property within the elementary and high school classification.
The proposition to issue bonds for high school purposes must be
submitted to and approved by a majority of voters of the
district voting on the proposition. The proposition to issue
bonds for elementary purposes must only be submitted to and
approved by a majority of voters living in the portion of the
territory proposed to be included or included within the
elementary and high school classification voting on the
proposition. Notwithstanding the terms and provisions of
Section 19-4 of this Code, the board of a combined high school -
unit district may not seek to designate any bonds issued for
high school purposes as bonds issued for elementary purposes or
designate any bonds issued for elementary purposes as bonds
issued for high school purposes. Any petition filed in
accordance with Section 19-9 of this Code requesting that the
proposition to issue bonds for the payment of orders or claims
for elementary purposes be submitted to the voters must be
signed by 10% or more of the registered voters of the
elementary and high school classification. If required
pursuant to Section 19-9 of this Code, the proposition to issue
bonds for the payment of orders or claims for elementary
purposes must only be submitted to and approved by a majority

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of voters living in the portion of the territory included
within the elementary and high school classification voting on
the proposition. Taxes to pay the principal of, interest on,
and premium, if any, on any refunding bonds issued in
accordance with Article 19 of this Code to refund bonds,
coupons, or other evidences of indebtedness for bonds issued by
the combined high school - unit district for high school
purposes or issued by a district that dissolved to form the
combined high school - unit district shall be extended against
the entire district. Taxes to pay the principal of, interest
on, and premium, if any, on any refunding bonds issued in
accordance with Article 19 of this Code to refund bonds,
coupons, or other evidences of indebtedness for bonds issued by
the combined high school - unit district for elementary
purposes shall only be extended against the property within the
elementary and high school classification.
(h) The school board may establish, maintain, or re-create
a working cash fund for elementary or high school purposes (but
not K through 12 purposes) as authorized by Article 20 of this
Code. All notices, resolutions, and ballots related to the
establishment of a working cash fund shall indicate whether the
working cash fund shall be for elementary or high school
purposes. For purposes of Section 20-2 of this Code, taxes to
pay the principal of, interest on, and premium, if any, on
bonds issued to create a working cash fund for high school
purposes shall be extended against the entire district, and

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taxes to pay the principal of, interest on, and premium, if
any, on bonds issued to create a working cash fund for
elementary purposes shall be extended only against property
within the elementary and high school classification. Any
petition filed in accordance with Section 20-7 of this Code
requesting that the proposition to issue bonds to establish a
working cash fund for elementary purposes be submitted to the
voters must be signed by 10% or more of the registered voters
of the elementary and high school classification. If required
pursuant to Section 20-7 of this Code, the proposition to issue
bonds for a working cash fund for elementary purposes must only
be submitted to and approved by a majority of voters living in
the portion of the territory included within the elementary and
high school classification voting on the proposition. Upon the
abolishment of the working cash fund for elementary purposes in
accordance with Section 20-8 of this Code, the balance shall be
transferred to the fund established for the receipt of proceeds
from levies specified for grade K through 8 educational
purposes. Upon the abolishment of the working cash fund for
high school purposes in accordance with Section 20-8 of this
Code, the balance shall be transferred to the fund established
for the receipt of proceeds from levies specified for grade 9
through 12 educational purposes.
(i) The school board shall establish separate funds for the
receipt of tax proceeds from levies specified for grade K
through 8 purposes and grade 9 through 12 purposes in

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accordance with subdivisions (1) through (3) of subsection (b)
of this Section and the receipt of tax and other proceeds from
bond issuances for grade K through 8 purposes and grade 9
through 12 purposes in accordance with subsection (g) of this
Section. Proceeds received from any levy or bond issuance
specified for grade K through 8 purposes shall not be used to
pay for any staff, equipment, materials, facilities,
buildings, land, or services solely related to instruction in
grades 9 through 12. Proceeds received from any levy or bond
issuance specified for grade 9 through 12 purposes shall not be
used to pay for any staff, equipment, materials, facilities,
buildings, land, or services solely related to instruction in
grades K through 8. Expenses related to staff, equipment,
materials, facilities, buildings, land, or services related to
instruction in both grades K through 8 and grades 9 through 12
may be paid from proceeds received from a levy or bond issuance
specified for either grade K through 8 purposes or grade 9
through 12 purposes.
(j) The school board of a combined high school - unit
district may abate or abolish any fund in accordance with this
Code, provided that no funds may be transferred from an abated
or abolished fund specified for grade K through 8 purposes to a
fund specified for grade 9 through 12 purposes, and no funds
may be transferred from an abated or abolished fund specified
for grade 9 through 12 purposes to a fund specified for grade K
through 8 purposes.

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(k) To the extent the specific requirements for borrowing
money, levying taxes, issuing bonds, establishing,
maintaining, or re-creating a working cash fund, and
transferring funds by a combined high school - unit district
set forth in this Section conflicts with any general
requirements for school districts set forth in Article 10, 17,
19, or 20 of this Code, the requirements set forth in this
Section shall control over any such general requirements.
(Source: P.A. 94-1019, eff. 7-10-06.)
(105 ILCS 5/11E-95)
Sec. 11E-95. Classification of property, taxes, bonds, and
funds for optional elementary unit districts.
(a) All real property included within the boundaries of an
optional elementary unit district created in accordance with
this Article shall be classified into either a high school only
classification or an elementary and high school classification
as follows:
(1) Real property included within the high school only
classification shall include all of the real property
included within both the boundaries of the optional
elementary unit district and the boundaries of a separate
school district organized and established for purposes of
providing instruction up to and including grade 8 that did
not elect to join the optional elementary unit district in
accordance with this Article.

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(2) Real property included within the elementary and
high school classification shall include all real property
of the optional elementary unit district not included in
the high school only classification.
(b) The petition to establish an optional elementary unit
district shall set forth the maximum annual authorized tax
rates for the proposed district as follows:
(1) The petition must specify a maximum annual
authorized tax rate for both grade K through 8 educational
purposes and grade 9 through 12 educational purposes. The
rate for grade K through 8 educational purposes shall not
exceed 3.5%. The rate for grade 9 through 12 educational
purposes shall not exceed 3.5%. The combined rate for both
grade K through 8 and grade 9 through 12 educational
purposes shall not exceed 7.0% 4.0%.
(2) The petition must specify a maximum annual
authorized tax rate for both grade K through 8 operations
and maintenance purposes and grade 9 through 12 operations
and maintenance purposes. The rate for grade K through 8
operations and maintenance purposes shall not exceed
0.55%. The rate for grade 9 through 12 operations and
maintenance purposes shall not exceed 0.55%. The combined
rate for both grade K through 8 and grade 9 through 12
operations and maintenance purposes shall not exceed 1.10%
0.75%.
(3) The petition must specify a maximum annual

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authorized tax rate for both grade K through 8 special
education purposes and grade 9 through 12 special education
purposes. The rate for grade K through 8 special education
purposes shall not exceed 0.40%. The rate for grade 9
through 12 special education purposes shall not exceed
0.40%.
(4) The petition must specify a maximum annual
authorized tax rate for transportation purposes.
(5) If it is desired to secure authority to levy other
taxes above the permissive rate applicable to unit
districts as specified elsewhere in statute, the petition
must specify the maximum annual authorized tax rate at
which the district will be authorized to levy a tax for
each such purpose, not to exceed the maximum annual
authorized tax rate applicable to unit districts as
specified elsewhere in statute.
(6) The aggregate of all rates specified in accordance
with this subsection (b) shall not exceed the highest dual
district rate, excluding rates for bond and interest
levies, applicable to any territory within the high school
district included in the petition in the year immediately
preceding the creation of the new district.
(c) The school board of any new optional elementary unit
district created under the provisions of this Article may levy
a tax annually upon all of the taxable property of the district
at the value as equalized or assessed by the Department of

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Revenue as follows:
(1) For all real property within the district, rates
not to exceed the maximum annual authorized grade 9 through
12 educational purposes rate established in accordance
with subdivision (1) of subsection (b) of this Section, the
maximum annual authorized grade 9 through 12 operation and
maintenance purposes rate established in accordance with
subdivision (2) of subsection (b) of this Section, the
maximum annual authorized grade 9 through 12 special
education purposes rate established in accordance with
subdivision (3) of subsection (b) of this Section, the
maximum annual authorized transportation purposes rate
established in accordance with subdivision (4) of
subsection (b) of this Section, and, for all other
purposes, the statutory permissive rate for unit districts
or the maximum annual authorized rate for that purpose
established in accordance with subdivision (5) of
subsection (b) of this Section.
(2) For all real property in the district included
within the elementary and high school classification, in
addition to the rates authorized by subdivision (1) of this
subsection (c), rates not to exceed the maximum annual
authorized grade K through 8 educational purposes rate
established in accordance with subdivision (1) of
subsection (b) of this Section, the maximum annual
authorized grade K through 8 operation and maintenance

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purposes rate established in accordance with subdivision
(2) of subsection (b) of this Section, and the maximum
annual authorized grade K through 8 special education
purposes rate established in accordance with subdivision
(3) of subsection (b) of this Section.
(d) The school board may, subsequent to the formation of
the district and in accordance with Sections 17-2 through 17-7
of this Code, seek to increase the maximum annual authorized
tax rates for any statutorily authorized purpose up to the
maximum rate set forth in subsection (b) of this Section or
otherwise applicable to unit school districts as specified
elsewhere in statute, whichever is less, subject to the
following approval requirements:
(1) The school board may increase the following rates
only after submitting a proper resolution to the voters of
the district at any regular scheduled election and
obtaining approval by both a majority of voters living in
the portion of the territory included within the high
school only classification voting on the proposition and a
majority of voters living in the portion of the territory
included within the elementary and high school
classification voting on the proposition:
(A) The maximum annual authorized grade 9 through
12 educational purposes rate established in accordance
with subdivision (1) of subsection (b) of this Section,
as may be increased thereafter in accordance with this

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subsection (d).
(B) The maximum annual authorized grade 9 through
12 operation and maintenance purposes rate established
in accordance with subdivision (2) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this subsection (d).
(C) The maximum annual authorized grade 9 through
12 special education purposes rate established in
accordance with subdivision (3) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this subsection (d).
(D) The maximum annual authorized transportation
purposes rate established in accordance with
subdivision (4) of subsection (b) of this Section, as
may be increased thereafter in accordance with this
subsection (d).
(E) For all other statutorily authorized purposes,
any rate exceeding the statutory permissive rate for
unit districts established in accordance with
subdivision (5) of subsection (b) of this Section, as
may be increased thereafter in accordance with this
subsection (d).
(2) The school board may increase the following rates
only after submitting a proper resolution to the voters of
the district living in the portion of the territory
included within the elementary and high school

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classification at any regular scheduled election and
obtaining approval by a majority of voters living in the
portion of the territory included within the elementary and
high school classification voting on the proposition:
(A) The maximum annual authorized grade K through 8
educational purposes rate established in accordance
with subdivision (1) of subsection (b) of this Section,
as may be increased thereafter in accordance with this
subsection (d).
(B) The maximum annual authorized grade K through 8
operation and maintenance purposes rate established in
accordance with subdivision (2) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this subsection (d).
(C) The maximum annual authorized grade K through 8
special education purposes rate established in
accordance with subdivision (3) of subsection (b) of
this Section, as may be increased thereafter in
accordance with this subsection (d).
(e) The school board may, after submitting a proper
resolution to the voters of the district at any regular
scheduled election, seek to do either of the following:
(1) Increase or decrease the maximum authorized annual
tax rate for grade K through 8 educational purposes with an
equal corresponding increase or decrease of the maximum
authorized annual tax rate for grade 9 through 12

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educational purposes, such that there is no change in the
total combined maximum authorized annual tax rate for both
purposes.
(2) Increase or decrease the maximum authorized annual
tax rate for grade K through 8 operations and maintenance
purposes with an equal corresponding increase or decrease
of the maximum authorized annual tax rate for grade 9
through 12 operations and maintenance purposes, such that
there is no change in the total combined maximum authorized
annual tax rate for both purposes.
Any modification to maximum authorized annual tax rates
pursuant to this subsection (e) must be approved by both a
majority of voters living in the portion of the territory
included within the high school only classification voting on
the proposition and a majority of voters living in the portion
of the territory included within the elementary and high school
classification voting on the proposition. No maximum tax rate
secured hereunder may exceed the maximum tax rate for a
particular purpose specified elsewhere in statute.
(f) The school board may seek to do either of the
following:
(1) Increase the maximum authorized annual tax rate for
either grade K through 8 educational purposes or grade K
through 8 operations and maintenance purposes with an equal
corresponding decrease being effected to the maximum
authorized tax rate for the other fund.

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(2) Increase the maximum authorized annual tax rate for
either grade 9 through 12 educational purposes or grade 9
through 12 operations and maintenance purposes with an
equal corresponding decrease being effected to the maximum
authorized tax rate for the other fund.
A proper resolution to increase and concurrently decrease
the maximum authorized annual tax rates for grade K through 8
purposes in accordance with this subsection (f) shall be
submitted to the voters of the district residing in the
elementary and high school classification at any regular
scheduled election and must be approved by a majority of voters
living in the portion of the territory included within the
elementary and high school classification voting on the
proposition. A proper resolution to increase and concurrently
decrease the maximum authorized annual tax rates for grade 9
through 12 purposes in accordance with this subsection (f)
shall be submitted to all of the voters of the district at any
regular scheduled election and must be approved by a majority
of voters voting on the proposition. No maximum tax rate
secured hereunder may exceed the maximum tax rate for a
particular purpose specified elsewhere in statute. The terms
and provisions of this subsection (f) shall apply instead of
the terms and provisions of Section 17-6.1 of this Code to any
concurrent equal increase and decrease in the maximum
authorized rates for educational and operations and
maintenance purposes by an optional elementary unit district.

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(g) The school board may borrow money and issue bonds for
elementary or high school purposes (but not grade K through 12
purposes) as authorized by Articles 10 and 19 and Section
17-2.11 of this Code and as otherwise permitted by law. All
notices, resolutions, and ballots related to borrowing money
and issuing bonds in accordance with this subsection (g) shall
indicate whether the proposed action is for elementary or high
school purposes. Taxes to pay the principal of, interest on,
and premium, if any, on bonds issued for high school purposes
shall be extended against the entire district, and taxes to pay
the principal of, interest on, and premium, if any, on bonds
issued for elementary purposes shall be extended only against
property within the elementary and high school classification.
The proposition to issue bonds for high school purposes must be
submitted to and approved by a majority of voters of the
district voting on the proposition. The proposition to issue
bonds for elementary purposes must only be submitted to and
approved by a majority of voters living in the portion of the
territory included within the elementary and high school
classification voting on the proposition. Notwithstanding the
terms and provisions of Section 19-4 of this Code, the board of
an optional elementary unit district may not seek to designate
any bonds issued for high school purposes as bonds issued for
elementary purposes or designate any bonds issued for
elementary purposes as bonds issued for high school purposes.
Any petition filed in accordance with Section 19-9 of this Code

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requesting that the proposition to issue bonds for the payment
of orders or claims for elementary purposes be submitted to the
voters must be signed by 10% or more of the registered voters
of the elementary and high school classification. If required
pursuant to Section 19-9 of this Code, the proposition to issue
bonds for the payment of orders or claims for elementary
purposes must only be submitted to and approved by a majority
of voters living in the portion of the territory included
within the elementary and high school classification voting on
the proposition. Taxes to pay the principal of, interest on,
and premium, if any, on any refunding bonds issued in
accordance with Article 19 of this Code to refund bonds,
coupons, or other evidences of indebtedness for bonds issued by
the optional elementary unit district for high school purposes
or issued by a district that dissolved to form the optional
elementary unit district shall be extended against the entire
district. Taxes to pay the principal of, interest on, and
premium, if any, on any refunding bonds issued in accordance
with Article 19 of this Code to refund bonds, coupons, or other
evidences of indebtedness for bonds issued by the optional
elementary unit district for elementary purposes shall only be
extended against the property within the elementary and high
school classification.
(h) The school board may establish, maintain, or re-create
a working cash fund for elementary or high school purposes (but
not grade K through 12 purposes) as authorized by Article 20 of

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this Code. All notices, resolutions, and ballots related to the
establishment of a working cash fund shall indicate whether the
working cash fund shall be for elementary or high school
purposes. For purposes of Section 20-2 of this Code, taxes to
pay the principal of, interest on, and premium, if any, on
bonds issued to create a working cash fund for high school
purposes shall be extended against the entire district, and
taxes to pay the principal of, interest on, and premium, if
any, on bonds issued to create a working cash fund for
elementary purposes shall be extended only against property
within the elementary and high school classification. Any
petition filed in accordance with Section 20-7 of this Code
requesting that the proposition to issue bonds to establish a
working cash fund for elementary purposes be submitted to the
voters must be signed by 10% or more of the registered voters
of the elementary and high school classification. If required
pursuant to Section 20-7 of this Code, the proposition to issue
bonds for a working cash fund for elementary purposes must only
be submitted to and approved by a majority of voters living in
the portion of the territory included within the elementary and
high school classification voting on the proposition. Upon the
abolishment of the working cash fund for elementary purposes in
accordance with Section 20-8 of this Code, the balance shall be
transferred to the fund established for the receipt of proceeds
from levies specified for grade K through 8 educational
purposes. Upon the abolishment of the working cash fund for

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high school purposes in accordance with Section 20-8 of this
Code, the balance shall be transferred to the fund established
for the receipt of proceeds from levies specified for grade 9
through 12 educational purposes.
(i) The school board shall establish separate funds for the
receipt of tax proceeds from levies specified for grade K
through 8 purposes and grade 9 through 12 purposes in
accordance with subdivisions (1) through (3) of subsection (b)
of this Section and the receipt of tax and other proceeds from
bond issuances for grade K through 8 purposes and grade 9
through 12 purposes in accordance with subsection (g) of this
Section. Proceeds received from any levy or bond issuance
specified for grade K through 8 purposes shall not be used to
pay for any staff, equipment, materials, facilities,
buildings, land, or services solely related to instruction in
grades 9 through 12. Proceeds received from any levy or bond
issuance specified for grade 9 through 12 purposes shall not be
used to pay for any staff, equipment, materials, facilities,
buildings, land, or services solely related to instruction in
grades K through 8. Expenses related to staff, equipment,
materials, facilities, buildings, land, or services related to
instruction in both grades K through 8 and grades 9 through 12
may be paid from proceeds received from a levy or bond issuance
specified for either grade K through 8 purposes or grade 9
through 12 purposes.
(j) The school board of an optional elementary unit

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district may abate or abolish any fund in accordance with this
Code, provided that no funds may be transferred from an abated
or abolished fund specified for grade K through 8 purposes to a
fund specified for grade 9 through 12 purposes, and no funds
may be transferred from an abated or abolished fund specified
for grade 9 through 12 purposes to a fund specified for grade K
through 8 purposes.
(k) To the extent that the specific requirements for
borrowing money, levying taxes, issuing bonds, establishing,
maintaining, or re-creating a working cash fund, and
transferring funds by an optional elementary unit district set
forth in this Section conflicts with any general requirements
for school districts set forth in Article 10, 17, 19, or 20 of
this Code, the requirements set forth in this Section shall
control over any such general requirements.
(Source: P.A. 94-1019, eff. 7-10-06.)
(105 ILCS 5/17-3) (from Ch. 122, par. 17-3)
Sec. 17-3. Additional levies-Submission to voters.
(a) The school board in any district having a population of
less than 500,000 inhabitants may, by proper resolution, cause
a proposition to increase, for a limited period of not less
than 3 nor more than 10 years or for an unlimited period, the
annual tax rate for educational purposes to be submitted to the
voters of such district at a regular scheduled election as
follows:

HB4680 Engrossed - 28 - LRB098 17283 OMW 52377 b
(1) in districts maintaining grades 1 through 8, or
grades 9 through 12, the maximum rate for educational
purposes shall not exceed 3.5% of the value as equalized or
assessed by the Department of Revenue;
(2) in districts maintaining grades 1 through 12 the
maximum rate for educational purposes shall not exceed
7.00% 4.00% of the value as equalized or assessed by the
Department of Revenue. except that if a single elementary
district and a secondary district having boundaries that
are coterminous form a community unit district on or after
the effective date of this amendatory Act of the 94th
General Assembly and the actual combined rate of the
elementary district and secondary district prior to the
formation of the community unit district is greater than
4.00%, then the maximum rate for educational purposes for
such district shall be the following:
(A) For 2 years following the formation of the
community unit district, the maximum rate shall equal
the actual combined rate of the previous elementary
district and secondary district.
(B) In each subsequent year, the maximum rate shall
be reduced by 0.10% or reduced to 4.00%, whichever
reduction is less. The school board may, by proper
resolution, cause a proposition to increase the
reduced rate, not to exceed the maximum rate in clause
(A), to be submitted to the voters of the district at a

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regular scheduled election as provided under this
Section. Nothing in this Section shall require that the
maximum rate for educational purpose for a district
maintaining grades one through 12 be reduced below
4.00%.
If the resolution of the school board seeks to increase the
annual tax rate for educational purposes for a limited period
of not less than 3 nor more than 10 years, the proposition
shall so state and shall identify the years for which the tax
increase is sought.
If a majority of the votes cast on the proposition is in
favor thereof at an election for which the election authorities
have given notice either (i) in accordance with Section 12-5 of
the Election Code or (ii) by publication of a true and legible
copy of the specimen ballot label containing the proposition in
the form in which it appeared or will appear on the official
ballot label on the day of the election at least 5 days before
the day of the election in at least one newspaper published in
and having a general circulation in the district, the school
board may thereafter, until such authority is revoked in like
manner, levy annually the tax so authorized; provided that if
the proposition as approved limits the increase in the annual
tax rate of the district for educational purposes to a period
of not less than 3 nor more than 10 years, the district may,
unless such authority is sooner revoked in like manner, levy
annually the tax so authorized for the limited number of years

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approved by a majority of the votes cast on the proposition.
Upon expiration of that limited period, the rate at which the
district may annually levy its tax for educational purposes
shall be the rate provided under Section 17-2, or the rate at
which the district last levied its tax for educational purposes
prior to approval of the proposition authorizing the levy of
that tax at an increased rate, whichever is greater.
The school board shall certify the proposition to the
proper election authorities in accordance with the general
election law.
The provisions of this Section concerning notice of the tax
rate increase referendum apply only to consolidated primary
elections held prior to January 1, 2002 at which not less than
55% of the voters voting on the tax rate increase proposition
voted in favor of the tax rate increase proposition.
(b) (Blank). Beginning on the effective date of this
amendatory Act of the 97th General Assembly, if a unit district
is being established from an elementary district or districts
and a high school district, pursuant to Article 11E of this
Code, and the combined rate of the elementary district or
districts and the high school district prior to the formation
of the unit district is greater than 4.00% for educational
purposes, then the maximum rate for educational purposes for
the unit district shall be the following:
(1) For the first year following the formation of the
new unit district, the maximum rate shall equal the lesser

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of the actual combined rate of the previous highest
elementary district rate and the high school district rate
or 6.40%.
(2) For the second year after the formation of the new
unit district, the maximum rate shall equal the lesser of
the actual combined rate of the previous highest elementary
district rate and the high school district rate or 5.80%.
(3) For the third year after the formation of the new
unit district, the maximum rate shall equal the lesser of
the actual combined rate of the previous highest elementary
district rate and the high school district rate or 5.20%.
(4) For the fourth year after the formation of the new
unit district, the maximum rate shall equal the lesser of
the actual combined rate of the previous highest elementary
district rate and the high school district rate or 4.60%.
(5) For the fifth year after the formation of the new
unit district and thereafter, the maximum rate shall be no
greater than 4.00%.
(Source: P.A. 97-1022, eff. 1-1-13.)
(105 ILCS 5/17-5) (from Ch. 122, par. 17-5)
Sec. 17-5. Increase tax rates for operations and
maintenance purposes-Maximum.
(a) The school board in any district having a population of
less than 500,000 inhabitants may, by proper resolution, cause
a proposition to increase the annual tax rate for operations

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and maintenance purposes to be submitted to the voters of the
district at a regular scheduled election. The board shall
certify the proposition to the proper election authority for
submission to the elector in accordance with the general
election law. In districts maintaining grades 1 through 8, or
grades 9 through 12, the maximum rate for operations and
maintenance purposes shall not exceed .55%; and in districts
maintaining grades 1 through 12, the maximum rates for
operations and maintenance purposes shall not exceed 1.10%
.75%, except that if a single elementary district and a
secondary district having boundaries that are coterminous on
the effective date of this amendatory Act form a community unit
district as authorized under Section 11-6, the maximum rate for
operation and maintenance purposes for such district shall not
exceed 1.10% of the value as equalized or assessed by the
Department of Revenue; and in such district maintaining grades
1 through 12, funds may, subject to the provisions of Section
17-5.1 accumulate to not more than 5% of the equalized assessed
valuation of the district. No such accumulation shall ever be
transferred or used for any other purpose. If a majority of the
votes cast on the proposition is in favor thereof, the school
board may thereafter, until such authority is revoked in like
manner, levy annually a tax as authorized.
(b) (Blank). Beginning on the effective date of this
amendatory Act of the 97th General Assembly, if a unit district
is being established from an elementary district or districts

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and a high school district, pursuant to Article 11E of this
Code, and the combined rate of the elementary district or
districts and the high school district prior to the formation
of the unit district is greater than 0.75% for operations and
maintenance purposes, then the maximum rate for operations and
maintenance purposes for the unit district shall be the
following:
(1) For the first year following formation of the new
unit district, the maximum rate shall equal the lesser of
the actual combined rate of the previous highest elementary
district rate and the high school district rate or 1.03%.
(2) For the second year after formation of the new unit
district, the maximum rate shall equal the lesser of the
actual combined rate of the previous highest elementary
district rate and the high school district rate or 0.96%.
(3) For the third year after the formation of the new
unit district, the maximum rate shall equal the lesser of
the actual combined rate of the previous highest elementary
district rate and the high school district rate or 0.89%.
(4) For the fourth year after the formation of the new
unit district, the maximum rate shall equal the lesser of
the actual combined rate of the previous highest elementary
district rate and the high school district rate or 0.82%.
(5) For the fifth year after the formation of the new
unit district and thereafter, the maximum rate shall be no
greater than 0.75%.

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(Source: P.A. 97-1022, eff. 1-1-13.)