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90_HB2844sam001
LRB9008869NTsbam04
1 AMENDMENT TO HOUSE BILL 2844
2 AMENDMENT NO. . Amend House Bill 2844 on page 1, by
3 replacing lines 1 and 2 with the following:
4 "AN ACT concerning education."; and
5 on page 1, line 6, by replacing "Section 27A-11" with
6 "Sections 19-1 and 27A-11"; and
7 on page 1, below line 6, by inserting the following:
8 "(105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
9 Sec. 19-1. Debt limitations of school districts.
10 (a) School districts shall not be subject to the
11 provisions limiting their indebtedness prescribed in "An Act
12 to limit the indebtedness of counties having a population of
13 less than 500,000 and townships, school districts and other
14 municipal corporations having a population of less than
15 300,000", approved February 15, 1928, as amended.
16 No school districts maintaining grades K through 8 or 9
17 through 12 shall become indebted in any manner or for any
18 purpose to an amount, including existing indebtedness, in the
19 aggregate exceeding 6.9% on the value of the taxable property
20 therein to be ascertained by the last assessment for State
21 and county taxes or, until January 1, 1983, if greater, the
22 sum that is produced by multiplying the school district's
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1 1978 equalized assessed valuation by the debt limitation
2 percentage in effect on January 1, 1979, previous to the
3 incurring of such indebtedness.
4 No school districts maintaining grades K through 12 shall
5 become indebted in any manner or for any purpose to an
6 amount, including existing indebtedness, in the aggregate
7 exceeding 13.8% on the value of the taxable property therein
8 to be ascertained by the last assessment for State and county
9 taxes or, until January 1, 1983, if greater, the sum that is
10 produced by multiplying the school district's 1978 equalized
11 assessed valuation by the debt limitation percentage in
12 effect on January 1, 1979, previous to the incurring of such
13 indebtedness.
14 Notwithstanding the provisions of any other law to the
15 contrary, in any case in which the voters of a school
16 district have approved a proposition for the issuance of
17 bonds of such school district at an election held prior to
18 January 1, 1979, and all of the bonds approved at such
19 election have not been issued, the debt limitation applicable
20 to such school district during the calendar year 1979 shall
21 be computed by multiplying the value of taxable property
22 therein, including personal property, as ascertained by the
23 last assessment for State and county taxes, previous to the
24 incurring of such indebtedness, by the percentage limitation
25 applicable to such school district under the provisions of
26 this subsection (a).
27 (b) Notwithstanding the debt limitation prescribed in
28 subsection (a) of this Section, additional indebtedness may
29 be incurred in an amount not to exceed the estimated cost of
30 acquiring or improving school sites or constructing and
31 equipping additional building facilities under the following
32 conditions:
33 (1) Whenever the enrollment of students for the
34 next school year is estimated by the board of education
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1 to increase over the actual present enrollment by not
2 less than 35% or by not less than 200 students or the
3 actual present enrollment of students has increased over
4 the previous school year by not less than 35% or by not
5 less than 200 students and the board of education
6 determines that additional school sites or building
7 facilities are required as a result of such increase in
8 enrollment; and
9 (2) When the Regional Superintendent of Schools
10 having jurisdiction over the school district and the
11 State Superintendent of Education concur in such
12 enrollment projection or increase and approve the need
13 for such additional school sites or building facilities
14 and the estimated cost thereof; and
15 (3) When the voters in the school district approve
16 a proposition for the issuance of bonds for the purpose
17 of acquiring or improving such needed school sites or
18 constructing and equipping such needed additional
19 building facilities at an election called and held for
20 that purpose. Notice of such an election shall state that
21 the amount of indebtedness proposed to be incurred would
22 exceed the debt limitation otherwise applicable to the
23 school district. The ballot for such proposition shall
24 state what percentage of the equalized assessed valuation
25 will be outstanding in bonds if the proposed issuance of
26 bonds is approved by the voters; or
27 (4) Notwithstanding the provisions of paragraphs
28 (1) through (3) of this subsection (b), if the school
29 board determines that additional facilities are needed to
30 provide a quality educational program and not less than
31 2/3 of those voting in an election called by the school
32 board on the question approve the issuance of bonds for
33 the construction of such facilities, the school district
34 may issue bonds for this purpose.
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1 In no event shall the indebtedness incurred pursuant to
2 this subsection (b) and the existing indebtedness of the
3 school district exceed 15% of the value of the taxable
4 property therein to be ascertained by the last assessment for
5 State and county taxes, previous to the incurring of such
6 indebtedness or, until January 1, 1983, if greater, the sum
7 that is produced by multiplying the school district's 1978
8 equalized assessed valuation by the debt limitation
9 percentage in effect on January 1, 1979.
10 The indebtedness provided for by this subsection (b)
11 shall be in addition to and in excess of any other debt
12 limitation.
13 (c) Notwithstanding the debt limitation prescribed in
14 subsection (a) of this Section, in any case in which a public
15 question for the issuance of bonds of a proposed school
16 district maintaining grades kindergarten through 12 received
17 at least 60% of the valid ballots cast on the question at an
18 election held on or prior to November 8, 1994, and in which
19 the bonds approved at such election have not been issued, the
20 school district pursuant to the requirements of Section
21 11A-10 may issue the total amount of bonds approved at such
22 election for the purpose stated in the question.
23 (d) Notwithstanding the debt limitation prescribed in
24 subsection (a) of this Section, a school district that meets
25 all the criteria set forth in paragraphs (1) and (2) of this
26 subsection (d) may incur an additional indebtedness in an
27 amount not to exceed $4,500,000, even though the amount of
28 the additional indebtedness authorized by this subsection
29 (d), when incurred and added to the aggregate amount of
30 indebtedness of the district existing immediately prior to
31 the district incurring the additional indebtedness authorized
32 by this subsection (d), causes the aggregate indebtedness of
33 the district to exceed the debt limitation otherwise
34 applicable to that district under subsection (a):
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1 (1) The additional indebtedness authorized by this
2 subsection (d) is incurred by the school district through
3 the issuance of bonds under and in accordance with
4 Section 17-2.11a for the purpose of replacing a school
5 building which, because of mine subsidence damage, has
6 been closed as provided in paragraph (2) of this
7 subsection (d) or through the issuance of bonds under and
8 in accordance with Section 19-3 for the purpose of
9 increasing the size of, or providing for additional
10 functions in, such replacement school buildings, or both
11 such purposes.
12 (2) The bonds issued by the school district as
13 provided in paragraph (1) above are issued for the
14 purposes of construction by the school district of a new
15 school building pursuant to Section 17-2.11, to replace
16 an existing school building that, because of mine
17 subsidence damage, is closed as of the end of the 1992-93
18 school year pursuant to action of the regional
19 superintendent of schools of the educational service
20 region in which the district is located under Section
21 3-14.22 or are issued for the purpose of increasing the
22 size of, or providing for additional functions in, the
23 new school building being constructed to replace a school
24 building closed as the result of mine subsidence damage,
25 or both such purposes.
26 (e) Notwithstanding the debt limitation prescribed in
27 subsection (a) of this Section, a school district that meets
28 all the criteria set forth in paragraphs (1) through (5) of
29 this subsection (e) may, without referendum, incur an
30 additional indebtedness in an amount not to exceed the lesser
31 of $5,000,000 or 1.5% of the value of the taxable property
32 within the district even though the amount of the additional
33 indebtedness authorized by this subsection (e), when incurred
34 and added to the aggregate amount of indebtedness of the
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1 district existing immediately prior to the district incurring
2 that additional indebtedness, causes the aggregate
3 indebtedness of the district to exceed or increases the
4 amount by which the aggregate indebtedness of the district
5 already exceeds the debt limitation otherwise applicable to
6 that district under subsection (a):
7 (1) The State Board of Education certifies the
8 school district under Section 19-1.5 as a financially
9 distressed district.
10 (2) The additional indebtedness authorized by this
11 subsection (e) is incurred by the financially distressed
12 district during the school year or school years in which
13 the certification of the district as a financially
14 distressed district continues in effect through the
15 issuance of bonds for the lawful school purposes of the
16 district, pursuant to resolution of the school board and
17 without referendum, as provided in paragraph (5) of this
18 subsection.
19 (3) The aggregate amount of bonds issued by the
20 financially distressed district during a fiscal year in
21 which it is authorized to issue bonds under this
22 subsection does not exceed the amount by which the
23 aggregate expenditures of the district for operational
24 purposes during the immediately preceding fiscal year
25 exceeds the amount appropriated for the operational
26 purposes of the district in the annual school budget
27 adopted by the school board of the district for the
28 fiscal year in which the bonds are issued.
29 (4) Throughout each fiscal year in which
30 certification of the district as a financially distressed
31 district continues in effect, the district maintains in
32 effect a gross salary expense and gross wage expense
33 freeze policy under which the district expenditures for
34 total employee salaries and wages do not exceed such
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1 expenditures for the immediately preceding fiscal year.
2 Nothing in this paragraph, however, shall be deemed to
3 impair or to require impairment of the contractual
4 obligations, including collective bargaining agreements,
5 of the district or to impair or require the impairment of
6 the vested rights of any employee of the district under
7 the terms of any contract or agreement in effect on the
8 effective date of this amendatory Act of 1994.
9 (5) Bonds issued by the financially distressed
10 district under this subsection shall bear interest at a
11 rate not to exceed the maximum rate authorized by law at
12 the time of the making of the contract, shall mature
13 within 40 years from their date of issue, and shall be
14 signed by the president of the school board and treasurer
15 of the school district. In order to issue bonds under
16 this subsection, the school board shall adopt a
17 resolution fixing the amount of the bonds, the date of
18 the bonds, the maturities of the bonds, the rates of
19 interest of the bonds, and their place of payment and
20 denomination, and shall provide for the levy and
21 collection of a direct annual tax upon all the taxable
22 property in the district sufficient to pay the principal
23 and interest on the bonds to maturity. Upon the filing
24 in the office of the county clerk of the county in which
25 the financially distressed district is located of a
26 certified copy of the resolution, it is the duty of the
27 county clerk to extend the tax therefor in addition to
28 and in excess of all other taxes at any time authorized
29 to be levied by the district. If bond proceeds from the
30 sale of bonds include a premium or if the proceeds of the
31 bonds are invested as authorized by law, the school board
32 shall determine by resolution whether the interest earned
33 on the investment of bond proceeds or the premium
34 realized on the sale of the bonds is to be used for any
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1 of the lawful school purposes for which the bonds were
2 issued or for the payment of the principal indebtedness
3 and interest on the bonds. The proceeds of the bond sale
4 shall be deposited in the educational purposes fund of
5 the district and shall be used to pay operational
6 expenses of the district. This subsection is cumulative
7 and constitutes complete authority for the issuance of
8 bonds as provided in this subsection, notwithstanding any
9 other law to the contrary.
10 (f) Notwithstanding the provisions of subsection (a) of
11 this Section or of any other law, bonds in not to exceed the
12 aggregate amount of $5,500,000 and issued by a school
13 district meeting the following criteria shall not be
14 considered indebtedness for purposes of any statutory
15 limitation and may be issued in an amount or amounts,
16 including existing indebtedness, in excess of any heretofore
17 or hereafter imposed statutory limitation as to indebtedness:
18 (1) At the time of the sale of such bonds, the
19 board of education of the district shall have determined
20 by resolution that the enrollment of students in the
21 district is projected to increase by not less than 7%
22 during each of the next succeeding 2 school years.
23 (2) The board of education shall also determine by
24 resolution that the improvements to be financed with the
25 proceeds of the bonds are needed because of the projected
26 enrollment increases.
27 (3) The board of education shall also determine by
28 resolution that the projected increases in enrollment are
29 the result of improvements made or expected to be made to
30 passenger rail facilities located in the school district.
31 (g) Notwithstanding the provisions of subsection (a) of
32 this Section or any other law, bonds in not to exceed an
33 aggregate amount of 25% of the equalized assessed value of
34 the taxable property of a school district and issued by a
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1 school district meeting the criteria in paragraphs (i)
2 through (iv) of this subsection shall not be considered
3 indebtedness for purposes of any statutory limitation and may
4 be issued pursuant to resolution of the school board in an
5 amount or amounts, including existing indebtedness, in excess
6 of any statutory limitation of indebtedness heretofore or
7 hereafter imposed:
8 (i) The bonds are issued for the purpose of
9 constructing a new high school building to replace two
10 adjacent existing buildings which together house a single
11 high school, each of which is more than 65 years old, and
12 which together are located on more than 10 acres and less
13 than 11 acres of property.
14 (ii) At the time the resolution authorizing the
15 issuance of the bonds is adopted, the cost of
16 constructing a new school building to replace the
17 existing school building is less than 60% of the cost of
18 repairing the existing school building.
19 (iii) The sale of the bonds occurs before July 1,
20 1997.
21 (iv) The school district issuing the bonds is a
22 unit school district located in a county of less than
23 70,000 and more than 50,000 inhabitants, which has an
24 average daily attendance of less than 1,500 and an
25 equalized assessed valuation of less than $29,000,000.
26 (h) Notwithstanding any other provisions of this Section
27 or the provisions of any other law, until January 1, 1998, a
28 community unit school district maintaining grades K through
29 12 may issue bonds up to an amount, including existing
30 indebtedness, not exceeding 27.6% of the equalized assessed
31 value of the taxable property in the district, if all of the
32 following conditions are met:
33 (i) The school district has an equalized assessed
34 valuation for calendar year 1995 of less than
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1 $24,000,000;
2 (ii) The bonds are issued for the capital
3 improvement, renovation, rehabilitation, or replacement
4 of existing school buildings of the district, all of
5 which buildings were originally constructed not less than
6 40 years ago;
7 (iii) The voters of the district approve a
8 proposition for the issuance of the bonds at a referendum
9 held after March 19, 1996; and
10 (iv) The bonds are issued pursuant to Sections 19-2
11 through 19-7 of this Code.
12 (i) Notwithstanding any other provisions of this Section
13 or the provisions of any other law, until January 1, 1998, a
14 community unit school district maintaining grades K through
15 12 may issue bonds up to an amount, including existing
16 indebtedness, not exceeding 27% of the equalized assessed
17 value of the taxable property in the district, if all of the
18 following conditions are met:
19 (i) The school district has an equalized assessed
20 valuation for calendar year 1995 of less than
21 $44,600,000;
22 (ii) The bonds are issued for the capital
23 improvement, renovation, rehabilitation, or replacement
24 of existing school buildings of the district, all of
25 which existing buildings were originally constructed not
26 less than 80 years ago;
27 (iii) The voters of the district approve a
28 proposition for the issuance of the bonds at a referendum
29 held after December 31, 1996; and
30 (iv) The bonds are issued pursuant to Sections 19-2
31 through 19-7 of this Code.
32 (j) Notwithstanding any other provisions of this Section
33 or the provisions of any other law, until January 1, 1999, a
34 community unit school district maintaining grades K through
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1 12 may issue bonds up to an amount, including existing
2 indebtedness, not exceeding 27% of the equalized assessed
3 value of the taxable property in the district if all of the
4 following conditions are met:
5 (i) The school district has an equalized assessed
6 valuation for calendar year 1995 of less than
7 $140,000,000 and a best 3 months average daily attendance
8 for the 1995-96 school year of at least 2,800;
9 (ii) The bonds are issued to purchase a site and
10 build and equip a new high school, and the school
11 district's existing high school was originally
12 constructed not less than 35 years prior to the sale of
13 the bonds;
14 (iii) At the time of the sale of the bonds, the
15 board of education determines by resolution that a new
16 high school is needed because of projected enrollment
17 increases;
18 (iv) At least 60% of those voting in an election
19 held after December 31, 1996 approve a proposition for
20 the issuance of the bonds; and
21 (v) The bonds are issued pursuant to Sections 19-2
22 through 19-7 of this Code.
23 (k) Notwithstanding the debt limitation prescribed in
24 subsection (a) of this Section, a school district that meets
25 all the criteria set forth in paragraphs (1) through (4) of
26 this subsection (k) may issue bonds to incur an additional
27 indebtedness in an amount not to exceed $4,000,000 even
28 though the amount of the additional indebtedness authorized
29 by this subsection (k), when incurred and added to the
30 aggregate amount of indebtedness of the school district
31 existing immediately prior to the school district incurring
32 such additional indebtedness, causes the aggregate
33 indebtedness of the school district to exceed or increases
34 the amount by which the aggregate indebtedness of the
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1 district already exceeds the debt limitation otherwise
2 applicable to that school district under subsection (a):
3 (1) the school district is located in 2 counties,
4 and a referendum to authorize the additional indebtedness
5 was approved by a majority of the voters of the school
6 district voting on the proposition to authorize that
7 indebtedness;
8 (2) the additional indebtedness is for the purpose
9 of financing a multi-purpose room addition to the
10 existing high school;
11 (3) the additional indebtedness, together with the
12 existing indebtedness of the school district, shall not
13 exceed 17.4% of the value of the taxable property in the
14 school district, to be ascertained by the last assessment
15 for State and county taxes; and
16 (4) the bonds evidencing the additional
17 indebtedness are issued, if at all, within 120 days of
18 the effective date of this amendatory Act of 1998.
19 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
20 89-698, eff. 1-14-97; 90-570, eff. 1-28-98.)"; and
21 on page 3, below line 32, by inserting the following:
22 "Effective date. This Act takes effect upon becoming
23 law.".