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.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Public
5University Administrative Cost Decrease Act.
 
6    Section 5. Definitions. In this Act:
7    "Administrator" means employees with executive,
8administrative, and managerial assignments within the
9university that involve planning, organizing, managing, and
10directing the university and its subunits. If 50% or more of an
11employee's time is spent teaching, then the employee shall not
12be considered an administrator for the purposes of this Act.
13    "Board" means the Illinois Board of Higher Education.
14    "Public university" means Chicago State University,
15Eastern Illinois University, Governors State University,
16Illinois State University, Northeastern Illinois University,
17Northern Illinois University, Southern Illinois University,
18Western Illinois University, the University of Illinois, and
19any other public university established or authorized by the
20General Assembly.
 
21    Section 10. Administrative cost certification. All public
22universities shall annually submit a cost certification to the

 

 

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1General Assembly, the Governor, the Auditor General, and the
2Board that certifies the level of spending dedicated to
3administrative costs for the current academic year. The
4certification shall be due on January 31, 2016 and every
5January 31 thereafter.
 
6    Section 15. Limitation on tuition or fee increases.
7Beginning with the 2017-2018 school year, a Board of Trustees
8of a public university may not enact a budget that contains
9tuition or fee increases above that of the tuition and fees set
10in the 2015-2016 academic year until the Auditor General has
11verified that the cost certification submitted by the public
12university and due in the same calendar year of the proposed
13tuition or fees increase has shown a decrease of administrative
14costs by 25%.
 
15    Section 20. The Illinois State Auditing Act is amended by
16changing Section 3-1 as follows:
 
17    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
18    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
19General has jurisdiction over all State agencies to make post
20audits and investigations authorized by or under this Act or
21the Constitution.
22    The Auditor General has jurisdiction over local government
23agencies and private agencies only:

 

 

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1        (a) to make such post audits authorized by or under
2    this Act as are necessary and incidental to a post audit of
3    a State agency or of a program administered by a State
4    agency involving public funds of the State, but this
5    jurisdiction does not include any authority to review local
6    governmental agencies in the obligation, receipt,
7    expenditure or use of public funds of the State that are
8    granted without limitation or condition imposed by law,
9    other than the general limitation that such funds be used
10    for public purposes;
11        (b) to make investigations authorized by or under this
12    Act or the Constitution; and
13        (c) to make audits of the records of local government
14    agencies to verify actual costs of state-mandated programs
15    when directed to do so by the Legislative Audit Commission
16    at the request of the State Board of Appeals under the
17    State Mandates Act.
18    In addition to the foregoing, the Auditor General may
19conduct an audit of the Metropolitan Pier and Exposition
20Authority, the Regional Transportation Authority, the Suburban
21Bus Division, the Commuter Rail Division and the Chicago
22Transit Authority and any other subsidized carrier when
23authorized by the Legislative Audit Commission. Such audit may
24be a financial, management or program audit, or any combination
25thereof.
26    The audit shall determine whether they are operating in

 

 

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1accordance with all applicable laws and regulations. Subject to
2the limitations of this Act, the Legislative Audit Commission
3may by resolution specify additional determinations to be
4included in the scope of the audit.
5    In addition to the foregoing, the Auditor General must also
6conduct a financial audit of the Illinois Sports Facilities
7Authority's expenditures of public funds in connection with the
8reconstruction, renovation, remodeling, extension, or
9improvement of all or substantially all of any existing
10"facility", as that term is defined in the Illinois Sports
11Facilities Authority Act.
12    The Auditor General may also conduct an audit, when
13authorized by the Legislative Audit Commission, of any hospital
14which receives 10% or more of its gross revenues from payments
15from the State of Illinois, Department of Healthcare and Family
16Services (formerly Department of Public Aid), Medical
17Assistance Program.
18    The Auditor General is authorized to conduct financial and
19compliance audits of the Illinois Distance Learning Foundation
20and the Illinois Conservation Foundation.
21    As soon as practical after the effective date of this
22amendatory Act of 1995, the Auditor General shall conduct a
23compliance and management audit of the City of Chicago and any
24other entity with regard to the operation of Chicago O'Hare
25International Airport, Chicago Midway Airport and Merrill C.
26Meigs Field. The audit shall include, but not be limited to, an

 

 

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1examination of revenues, expenses, and transfers of funds;
2purchasing and contracting policies and practices; staffing
3levels; and hiring practices and procedures. When completed,
4the audit required by this paragraph shall be distributed in
5accordance with Section 3-14.
6    The Auditor General shall conduct a financial and
7compliance and program audit of distributions from the
8Municipal Economic Development Fund during the immediately
9preceding calendar year pursuant to Section 8-403.1 of the
10Public Utilities Act at no cost to the city, village, or
11incorporated town that received the distributions.
12    The Auditor General must conduct an audit of the Health
13Facilities and Services Review Board pursuant to Section 19.5
14of the Illinois Health Facilities Planning Act.
15    The Auditor General of the State of Illinois shall annually
16conduct or cause to be conducted a financial and compliance
17audit of the books and records of any county water commission
18organized pursuant to the Water Commission Act of 1985 and
19shall file a copy of the report of that audit with the Governor
20and the Legislative Audit Commission. The filed audit shall be
21open to the public for inspection. The cost of the audit shall
22be charged to the county water commission in accordance with
23Section 6z-27 of the State Finance Act. The county water
24commission shall make available to the Auditor General its
25books and records and any other documentation, whether in the
26possession of its trustees or other parties, necessary to

 

 

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1conduct the audit required. These audit requirements apply only
2through July 1, 2007.
3    The Auditor General must conduct audits of the Rend Lake
4Conservancy District as provided in Section 25.5 of the River
5Conservancy Districts Act.
6    The Auditor General must conduct financial audits of the
7Southeastern Illinois Economic Development Authority as
8provided in Section 70 of the Southeastern Illinois Economic
9Development Authority Act.
10    The Auditor General shall conduct a compliance audit in
11accordance with subsections (d) and (f) of Section 30 of the
12Innovation Development and Economy Act.
13    The Auditor General shall verify the cost certification
14submitted by all public universities under the Public
15University Administrative Cost Decrease Act. The verification
16shall be submitted to the General Assembly, the Governor, and
17the Illinois Board of Higher Education.
18(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09;
1996-939, eff. 6-24-10.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.