Public Act 103-0394

SB1994 Enrolled LRB103 27488 RJT 53861 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 adding Section

17-1.10 as follows:

(105 ILCS 5/17-1.10 new)

Sec. 17-1.10. Operational funds expenditure report and

reserve reduction plan.

(a) In the 2024-2025 school year and in each subsequent

school year, the school board of any school district that does

not receive federal impact aid funding shall calculate the

combined, annual average expenditures of its operational funds

for the previous 3 fiscal years, as reported in the school

district's most recently audited annual financial reports.

Operational funds shall include the district's educational,

transportation, and operations and maintenance funds. The

school board shall annually present a written report covering

the annual average expenditures of its operational funds for

the previous 3 fiscal years at a board meeting.

(b) With respect to a school district to which subsection

(a) applies, if the school district's combined cash reserve

balance of its operational funds, as most recently reported by

the district pursuant to Section 17-1.3 of this Code, exceeds

2.5 times the annual average expenditures of its operational

funds for the previous 3 fiscal years, the school board shall

adopt and file with the State Board of Education by December 31

a written operational funds reserve reduction plan to reduce,

within 3 years, the district's combined cash reserve balance

of its operational funds to an amount at or below 2.5 times the

annual average expenditures of its operational funds for the

previous 3 fiscal years. The State Board shall post any

operational funds reserve reduction plans received on the

State Board's Internet website.