SB2170 99TH GENERAL ASSEMBLY

LRB099 13950 SXM 37950 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2170

Introduced 8/19/2015, by Sen. Thomas Cullerton

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 5/3-1	from Ch. 15, par. 303-1

Creates the Public University Administrative Cost Decrease Act. Provides that all public universities shall annually submit a cost certification that certifies the level of spending dedicated to administrative costs for the current academic year. Provides that beginning with the 2017-2018 school year, a Board of Trustees of a public university may not enact a budget that contains tuition or fee increases above that of the tuition and fees set in the 2015-2016 academic year until the Auditor General has verified that the cost certification submitted by the public university and due in the same calendar year of the proposed tuition or fees increase has shown a decrease of administrative costs by 25%. Amends the Illinois State Auditing Act. Makes related changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Public University Administrative Cost Decrease Act.

Section 5. Definitions. In this Act:

"Administrator" means employees with executive, administrative, and managerial assignments within the university that involve planning, organizing, managing, and directing the university and its subunits. If 50% or more of an employee's time is spent teaching, then the employee shall not be considered an administrator for the purposes of this Act.

"Board" means the Illinois Board of Higher Education.

"Public university" means Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Southern Illinois University, Western Illinois University, the University of Illinois, and any other public university established or authorized by the General Assembly.

Section 10. Administrative cost certification. All public universities shall annually submit a cost certification to the General Assembly, the Governor, the Auditor General, and the Board that certifies the level of spending dedicated to administrative costs for the current academic year. The certification shall be due on January 31, 2016 and every January 31 thereafter.

Section 15. Limitation on tuition or fee increases. Beginning with the 2017-2018 school year, a Board of Trustees of a public university may not enact a budget that contains tuition or fee increases above that of the tuition and fees set in the 2015-2016 academic year until the Auditor General has verified that the cost certification submitted by the public university and due in the same calendar year of the proposed tuition or fees increase has shown a decrease of administrative costs by 25%.

Section 20. The Illinois State Auditing Act is amended by changing Section 3-1 as follows:

(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)

Sec. 3-1. Jurisdiction of Auditor General. The Auditor General has jurisdiction over all State agencies to make post audits and investigations authorized by or under this Act or the Constitution.

The Auditor General has jurisdiction over local government agencies and private agencies only:

(a) to make such post audits authorized by or under this Act as are necessary and incidental to a post audit of a State agency or of a program administered by a State agency involving public funds of the State, but this jurisdiction does not include any authority to review local governmental agencies in the obligation, receipt, expenditure or use of public funds of the State that are granted without limitation or condition imposed by law, other than the general limitation that such funds be used for public purposes;

(b) to make investigations authorized by or under this Act or the Constitution; and

(c) to make audits of the records of local government agencies to verify actual costs of state-mandated programs when directed to do so by the Legislative Audit Commission at the request of the State Board of Appeals under the State Mandates Act.

In addition to the foregoing, the Auditor General may conduct an audit of the Metropolitan Pier and Exposition Authority, the Regional Transportation Authority, the Suburban Bus Division, the Commuter Rail Division and the Chicago Transit Authority and any other subsidized carrier when authorized by the Legislative Audit Commission. Such audit may be a financial, management or program audit, or any combination thereof.

The audit shall determine whether they are operating in accordance with all applicable laws and regulations. Subject to the limitations of this Act, the Legislative Audit Commission may by resolution specify additional determinations to be included in the scope of the audit.

In addition to the foregoing, the Auditor General must also conduct a financial audit of the Illinois Sports Facilities Authority's expenditures of public funds in connection with the reconstruction, renovation, remodeling, extension, or improvement of all or substantially all of any existing "facility", as that term is defined in the Illinois Sports Facilities Authority Act.

The Auditor General may also conduct an audit, when authorized by the Legislative Audit Commission, of any hospital which receives 10% or more of its gross revenues from payments from the State of Illinois, Department of Healthcare and Family Services (formerly Department of Public Aid), Medical Assistance Program.

The Auditor General is authorized to conduct financial and compliance audits of the Illinois Distance Learning Foundation and the Illinois Conservation Foundation.

As soon as practical after the effective date of this amendatory Act of 1995, the Auditor General shall conduct a compliance and management audit of the City of Chicago and any other entity with regard to the operation of Chicago O'Hare International Airport, Chicago Midway Airport and Merrill C. Meigs Field. The audit shall include, but not be limited to, an examination of revenues, expenses, and transfers of funds; purchasing and contracting policies and practices; staffing levels; and hiring practices and procedures. When completed, the audit required by this paragraph shall be distributed in accordance with Section 3-14.

The Auditor General shall conduct a financial and compliance and program audit of distributions from the Municipal Economic Development Fund during the immediately preceding calendar year pursuant to Section 8-403.1 of the Public Utilities Act at no cost to the city, village, or incorporated town that received the distributions.

The Auditor General must conduct an audit of the Health Facilities and Services Review Board pursuant to Section 19.5 of the Illinois Health Facilities Planning Act.

The Auditor General of the State of Illinois shall annually conduct or cause to be conducted a financial and compliance audit of the books and records of any county water commission organized pursuant to the Water Commission Act of 1985 and shall file a copy of the report of that audit with the Governor and the Legislative Audit Commission. The filed audit shall be open to the public for inspection. The cost of the audit shall be charged to the county water commission in accordance with Section 6z-27 of the State Finance Act. The county water commission shall make available to the Auditor General its books and records and any other documentation, whether in the possession of its trustees or other parties, necessary to conduct the audit required. These audit requirements apply only through July 1, 2007.

The Auditor General must conduct audits of the Rend Lake Conservancy District as provided in Section 25.5 of the River Conservancy Districts Act.

The Auditor General must conduct financial audits of the Southeastern Illinois Economic Development Authority as provided in Section 70 of the Southeastern Illinois Economic Development Authority Act.

The Auditor General shall conduct a compliance audit in accordance with subsections (d) and (f) of Section 30 of the Innovation Development and Economy Act.

The Auditor General shall verify the cost certification submitted by all public universities under the Public University Administrative Cost Decrease Act. The verification shall be submitted to the General Assembly, the Governor, and the Illinois Board of Higher Education.

(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09; 96-939, eff. 6-24-10.)

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