103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1994
 
Introduced 2/9/2023, by Sen. Meg Loughran Cappel
 
SYNOPSIS AS INTRODUCED:
 

 





105 ILCS 5/8-6  from Ch. 122, par. 8-6
105 ILCS 5/34-74  from Ch. 122, par. 34-74

     Amends the School Code. In provisions concerning custody of school funds, provides that each school district and school board must submit a quarterly report to the
State Board of Education that contains information regarding (1) the amount of funds that each school district has in its reserves, (2) the amount of funds that each school district has in its investments,  and (3)  the number of days that each  school district has cash on hand. Requires each school district and school board to  publish and maintain the information in each quarterly report on its Internet website. Provides that any school district or school board reporting more than 250 days cash on hand shall spend any excess cash on hand funds beyond the 250 days on educational services, including hiring teachers, paraprofessionals, nurses, librarians, social workers, counselors, or psychologists. Effective immediately.
  


LRB103 27488 RJT 53861 b

 
 
A BILL FOR
 

  
SB1994LRB103 27488 RJT 53861 b


  
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 Sections 
58-6 and 34-74 as follows:
 



6    (105 ILCS 5/8-6)  (from Ch. 122, par. 8-6)



7    Sec. 8-6. Custody
of school funds.
8    (a) The school treasurer shall have custody of the school 
9funds and shall
keep in a cash book separate cash balances. In 
10the cash book he shall enter in
separate accounts the balance, 
11total of all moneys received in each fund,
and the total of the 
12orders countersigned or checks signed with respect to each 
13fund and extend the balances and the aggregate cash balance 
14for all funds
balance at least monthly. The treasurer shall 
15reconcile such balances with the
accounting or bookkeeping 
16department of the district in conformity with a template 
17provided by the State Board of Education monthly. School 
18districts on the financial watch or warning list that are 
19required to submit deficit reduction plans in accordance with 
20Section 17-1 of this Code or that are certified in financial 
21difficulty in accordance with Section 1-A8 of this Code must 
22transmit the cash balances as required pursuant to this 
23Section 8-6 of this Code to the State Board of Education 
 
 
SB1994- 2 -LRB103 27488 RJT 53861 b

1quarterly from the treasurer. 

2    (b) Each school district must submit a quarterly report to 
3the
State Board of Education that contains all of the 
4following
information:
5        (1) The amount of funds that each school district has 
6    in its reserves. 
7        (2) The amount of funds that each school district has 
8    in its investments. 
9        (3) The number of days that each  school district has 
10    cash on hand.
11    The school district must publish and maintain the 
12information in each quarterly report on its Internet website. 
13    (c) Any school district reporting more than 250 days cash 
14on hand shall spend any excess cash on hand funds beyond the 
15250 days on educational services, including hiring teachers, 
16paraprofessionals, nurses, librarians, social workers, 
17counselors, or psychologists. 
18(Source: P.A. 97-429, eff. 8-16-11.)

 


19    (105 ILCS 5/34-74)  (from Ch. 122, par. 34-74)



20    Sec. 34-74. Custody of school moneys. 
21    (a) Except as provided in Article 34A and Section 34-29.2 
22of this
Code, all moneys raised by taxation for school 
23purposes, or
received from
the state common school fund, or 
24from any other source for school
purposes, shall be held by the 
25city treasurer, ex-officio, as school
treasurer, in separate 
 
 
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1funds for school purposes, subject to the order
of the board 
2upon
(i) its warrants signed by its president and secretary 
3and
countersigned by the mayor and city comptroller
or (ii) 
4its checks, as
defined in Section 3-104 of the Uniform 
5Commercial Code, signed by its
president, secretary, and 
6comptroller and countersigned by the mayor and city

7comptroller.

8    (b) The board must submit a quarterly report to the
State 
9Board of Education that contains all of the following

10information:
11        (1) The amount of funds that each school district has 
12    in its reserves. 
13        (2) The amount of funds that each school district has 
14    in its investments. 
15        (3) The number of days that each  school district has 
16    cash on hand. 
17    The board must publish and maintain the information in the 
18quarterly report on its Internet website. 
19    (c) Any school district reporting more than 250 days cash 
20on hand shall spend any excess cash on hand funds beyond the 
21250 days on educational services, including hiring teachers, 
22paraprofessionals, nurses, librarians, social workers, 
23counselors, or psychologists. 
24(Source: P.A. 94-1105, eff. 6-1-07.)

 
 
25    Section 99. Effective date. This Act takes effect upon 
26becoming law.