093_HB0755

 
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 1        AN ACT relating to schools.

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

 4        Section  5.   The  School  Code  is  amended  by changing
 5    Section 17-1 as follows:

 6        (105 ILCS 5/17-1) (from Ch. 122, par. 17-1)
 7        Sec. 17-1.  Annual Budget. The board of education of each
 8    school district under 500,000 inhabitants  shall,  within  or
 9    before the first quarter of each fiscal year, adopt an annual
10    budget  which  it  deems  necessary  to  defray all necessary
11    expenses and liabilities of the district, and  in  this  such
12    annual  budget shall specify the objects and purposes of each
13    item and amount needed for each object or purpose.
14        The budget shall be entered upon a School District Budget
15    form prepared and provided by the State  Board  of  Education
16    and  therein shall contain a statement of the cash on hand at
17    the beginning of the fiscal year, an  estimate  of  the  cash
18    expected  to  be  received  during  such fiscal year from all
19    sources, an estimate of  the  expenditures  contemplated  for
20    such  fiscal  year,  and  a  statement  of the estimated cash
21    expected to be on hand at the end of such year.  The estimate
22    of taxes to be received may  be  based  upon  the  amount  of
23    actual  cash  receipts that may reasonably be expected by the
24    district  during  such  fiscal  year,  estimated   from   the
25    experience of the district in prior years and with due regard
26    for  other  circumstances  that may substantially affect such
27    receipts.  Nothing in this  Section  shall  be  construed  as
28    requiring  any  district to change or preventing any district
29    from changing from a cash basis of financing to a surplus  or
30    deficit  basis  of financing; or as requiring any district to
31    change or preventing any district from changing its system of
 
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 1    accounting.
 2        The board of education  of  each  district  shall  fix  a
 3    fiscal year therefor.  If the beginning of the fiscal year of
 4    a district is subsequent to the time that the tax levy due to
 5    be  made  in such fiscal year shall be made, then such annual
 6    budget shall be adopted prior to the time such tax levy shall
 7    be made.  The failure by a board of education of any district
 8    to adopt an annual budget, or to comply in any  respect  with
 9    the provisions of this Section, shall not affect the validity
10    of  any tax levy of the district otherwise in conformity with
11    the law.  With respect to taxes levied either before, on,  or
12    after  the  effective date of this amendatory Act of the 91st
13    General Assembly, (i) a tax levy is made for the fiscal  year
14    in  which  the  levy  is  due  to be made regardless of which
15    fiscal year the proceeds of the  levy  are  expended  or  are
16    intended  to  be  expended,  and  (ii)  except  as  otherwise
17    provided by law, a board of education's adoption of an annual
18    budget  in conformity with this Section is not a prerequisite
19    to the adoption of a valid tax levy and is not a limit on the
20    amount of the levy.
21        Such budget shall be prepared in tentative form  by  some
22    person  or  persons  designated  by  the  board,  and in such
23    tentative form shall be made conveniently available to public
24    inspection for  at  least  30  days  prior  to  final  action
25    thereon.   At least 1 public hearing shall be held as to such
26    budget prior to final action thereon.  Notice of availability
27    for public inspection and of such  public  hearing  shall  be
28    given  by  publication  in  a  newspaper  published  in  such
29    district, at least 30 days prior to the time of such hearing.
30    If  there  is no newspaper published in such district, notice
31    of such public hearing shall  be  given  by  posting  notices
32    thereof  in  5 of the most public places in such district. It
33    shall be the duty of the secretary of such board to make such
34    tentative budget  available  to  public  inspection,  and  to
 
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 1    arrange  for such public hearing.  The board may from time to
 2    time make transfers between the various items in any fund not
 3    exceeding in the aggregate 10% of the total of such  fund  as
 4    set  forth  in  the  budget.  The board may from time to time
 5    amend such budget by the same procedure as is herein provided
 6    for its original adoption.
 7        Beginning July  1,  1976,  the  board  of  education,  or
 8    regional  superintendent,  or governing board responsible for
 9    the administration of a joint agreement shall, by September 1
10    of each fiscal year thereafter, adopt an  annual  budget  for
11    the  joint  agreement  in  the same manner and subject to the
12    same requirements as are provided in this Section.
13        The State Board of Education shall  exercise  powers  and
14    duties  relating to budgets as provided in Section 2--3.27 of
15    this Act.
16        By fiscal year 1982 all school districts  shall  use  the
17    Program Budget Accounting System.
18        In  the  case  of  a  school district receiving emergency
19    State financial assistance under Article 1B, the school board
20    shall also be subject to the requirements  established  under
21    Article 1B with respect to the annual budget.
22    (Source: P.A. 91-75, eff. 7-9-99.)