(105 ILCS 5/1B-12) (from Ch. 122, par. 1B-12)
Sec. 1B-12.
Financial Plans.
The local board shall
develop, adopt and submit to the Panel for approval an
initial financial plan with respect to the remaining portion
of the current fiscal year and for the 2 succeeding fiscal
years. The board shall develop and adopt subsequent
financial plans as directed by the Panel. The financial
plans shall supersede any financial plan developed pursuant
to Section 1A-8 of this Act. The Panel shall require that
each financial plan cover a period of at least 3 fiscal
years. After adoption by the board, the board shall submit
each plan to the Panel for its approval not later than the
date required by the Panel. The Panel shall approve or
reject the financial plan within 30 days of its receipt. No
financial plan shall have force or effect without approval
of the Panel. Each financial plan shall be developed,
submitted, approved and monitored in accordance with the
following procedures:
(a) The board shall determine and submit to the Panel,
at a time and in a manner prescribed by the Panel, estimates
of revenues available to the board during the period for
which the financial plan is to be in effect. The Panel
shall approve, reject or amend the revenue estimates. In
the event the board fails, for any reason, to submit to the
Panel estimates of revenue as required by this paragraph,
the Panel may prepare such estimates. The financial plan
submitted by the board shall be based upon revenue estimates
approved or prepared by the Panel. As soon as practicable
following the establishment of the Panel, the president of
the board shall, at the request of the Chairman of the
Panel, make available to the Panel copies of the audited
financial statements and of the books and records of account
of the board for the preceding 5 fiscal years of the board.
(b) Each financial plan for each fiscal year or part
thereof to which it relates, shall contain (1) a description
of revenues and expenditures, provision for debt service,
cash resources and uses, capital improvements, and a
building utilization component requiring maximum efficient
use of all classrooms and buildings, in such manner and
detail as the Panel shall prescribe, (2) a description of
the means by which the budget will be brought into balance,
and (3) such other matters that the Panel, in its
discretion, requires.
For Panels established under Section 1B-4 for a
district that had its financial plan rescinded by the State Board for
violating that plan as
provided in Section 1A-8, the financial plan required under this Section shall
also include the
staffing plan required pursuant to subsection (e) of Section 1B-22, provisions
for addressing
findings or
violations identified by the Inspector General or the school district audit,
provisions for
implementing directives of the Panel, and the plan of action to be followed by
the district to
maintain long-term financial stability, provide for
transition of the Panel's
authority, and analyze the need for additional State funding for the
district.
The initial financial plan shall also
include a description of the means by which any outstanding
short-term indebtedness shall be paid or refunded by the
board. The Panel may prescribe any reasonable time,
standards, procedures or forms for preparation and
submission of the financial plan.
(c) The Panel shall approve the initial and each
subsequent financial plan if, in its judgment, the plan is
complete, is reasonably capable of being achieved, and meets
the requirements set forth in this Article. Otherwise, the
Panel shall reject the financial plan. In the event of
rejection, the Panel may prescribe a procedure and standards
for revision of the financial plan by the board.
(d) The board shall report to the Panel, at such times
and in such manner as the Panel may direct, concerning the
board's compliance with each financial plan. The Panel may
review the board's operations, obtain budgetary data and
financial statements, require the board to produce reports,
and have access to any other information in the possession
of the board that it deems relevant. The Panel may issue
recommendations or directives within its powers to the board
to assure compliance with the financial plan. The board
shall produce such budgetary data, financial statements,
reports and other information and comply with such
directives.
(e) After approval of each financial plan, the board
shall regularly reexamine the revenue and expenditure
estimates on which it was based and revise them as
necessary. The board shall promptly notify the Panel of any
material change in the revenue or expenditure estimates in
the financial plan. The board may submit to the Panel, or
the Panel may require the board to submit, modified
financial plans based upon revised revenue or expenditure
estimates or for any other good reason. The Panel shall
approve or reject each modified financial plan.
(Source: P.A. 89-572, eff. 7-30-96.)
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