Bill Text: IL SB0648 | 2011-2012 | 97th General Assembly | Introduced

---

Bill Title: Amends the School Code. Makes a technical change in a Section concerning the annual budgets of school districts other than the Chicago school district.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB0648 Detail]

Download: Illinois-2011-SB0648-Introduced.html

---

97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB0648 Introduced 2/8/2011, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED:
105 ILCS 5/17-1 from Ch. 122, par. 17-1
Amends the School Code. Makes a technical change in a Section concerning the annual budgets of school districts other than the Chicago school district.
LRB097 04385 NHT 44424 b
A BILL FOR
SB0648 LRB097 04385 NHT 44424 b
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 Section
17-1 as follows:
(105 ILCS 5/17-1) (from Ch. 122, par. 17-1)
Sec. 17-1. Annual Budget. The The board of education of
each school district under 500,000 inhabitants shall, within or
before the first quarter of each fiscal year, adopt and file
with the State Board of Education an annual balanced budget
which it deems necessary to defray all necessary expenses and
liabilities of the district, and in such annual budget shall
specify the objects and purposes of each item and amount needed
for each object or purpose.
The budget shall be entered upon a School District Budget
form prepared and provided by the State Board of Education and
therein shall contain a statement of the cash on hand at the
beginning of the fiscal year, an estimate of the cash expected
to be received during such fiscal year from all sources, an
estimate of the expenditures contemplated for such fiscal year,
and a statement of the estimated cash expected to be on hand at
the end of such year. The estimate of taxes to be received may
be based upon the amount of actual cash receipts that may

SB0648 - 2 - LRB097 04385 NHT 44424 b
reasonably be expected by the district during such fiscal year,
estimated from the experience of the district in prior years
and with due regard for other circumstances that may
substantially affect such receipts. Nothing in this Section
shall be construed as requiring any district to change or
preventing any district from changing from a cash basis of
financing to a surplus or deficit basis of financing; or as
requiring any district to change or preventing any district
from changing its system of accounting.
To the extent that a school district's budget is not
balanced, the district shall also adopt and file with the State
Board of Education a deficit reduction plan to balance the
district's budget within 3 years. The deficit reduction plan
must be filed at the same time as the budget, but the State
Superintendent of Education may extend this deadline if the
situation warrants.
The board of education of each district shall fix a fiscal
year therefor. If the beginning of the fiscal year of a
district is subsequent to the time that the tax levy due to be
made in such fiscal year shall be made, then such annual budget
shall be adopted prior to the time such tax levy shall be made.
The failure by a board of education of any district to adopt an
annual budget, or to comply in any respect with the provisions
of this Section, shall not affect the validity of any tax levy
of the district otherwise in conformity with the law. With
respect to taxes levied either before, on, or after the

SB0648 - 3 - LRB097 04385 NHT 44424 b
effective date of this amendatory Act of the 91st General
Assembly, (i) a tax levy is made for the fiscal year in which
the levy is due to be made regardless of which fiscal year the
proceeds of the levy are expended or are intended to be
expended, and (ii) except as otherwise provided by law, a board
of education's adoption of an annual budget in conformity with
this Section is not a prerequisite to the adoption of a valid
tax levy and is not a limit on the amount of the levy.
Such budget shall be prepared in tentative form by some
person or persons designated by the board, and in such
tentative form shall be made conveniently available to public
inspection for at least 30 days prior to final action thereon.
At least 1 public hearing shall be held as to such budget prior
to final action thereon. Notice of availability for public
inspection and of such public hearing shall be given by
publication in a newspaper published in such district, at least
30 days prior to the time of such hearing. If there is no
newspaper published in such district, notice of such public
hearing shall be given by posting notices thereof in 5 of the
most public places in such district. It shall be the duty of
the secretary of such board to make such tentative budget
available to public inspection, and to arrange for such public
hearing. The board may from time to time make transfers between
the various items in any fund not exceeding in the aggregate
10% of the total of such fund as set forth in the budget. The
board may from time to time amend such budget by the same

SB0648 - 4 - LRB097 04385 NHT 44424 b
procedure as is herein provided for its original adoption.
Beginning July 1, 1976, the board of education, or regional
superintendent, or governing board responsible for the
administration of a joint agreement shall, by September 1 of
each fiscal year thereafter, adopt an annual budget for the
joint agreement in the same manner and subject to the same
requirements as are provided in this Section.
The State Board of Education shall exercise powers and
duties relating to budgets as provided in Section 2-3.27 of
this Code and shall require school districts to submit their
annual budgets, deficit reduction plans, and other financial
information, including revenue and expenditure reports and
borrowing and interfund transfer plans, in such form and within
the timelines designated by the State Board of Education.
By fiscal year 1982 all school districts shall use the
Program Budget Accounting System.
In the case of a school district receiving emergency State
financial assistance under Article 1B, the school board shall
also be subject to the requirements established under Article
1B with respect to the annual budget.
(Source: P.A. 94-234, eff. 7-1-06.)