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90_SB0560ham008
LRB9005472NTsbam03
1 AMENDMENT TO SENATE BILL 560
2 AMENDMENT NO. . Amend Senate Bill 560, AS AMENDED,
3 with reference to the page and line numbers of House
4 Amendment No. 7, on page 1, lines 4 and 10, by replacing
5 "Sections" each time it appears with "Sections 1A-8,"; and
6 by inserting below line 11 the following:
7 "(105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
8 Sec. 1A-8. Powers of the Board in Assisting Districts
9 Deemed in Financial Difficulties. To promote the financial
10 integrity of school districts, the State Board of Education
11 shall be provided the necessary powers to promote sound
12 financial management and continue operation of the public
13 schools.
14 The State Board of Education, after proper investigation
15 of a district's financial condition, may certify that a
16 district, including any district subject to Article 34A, is
17 in financial difficulty when any of the following conditions
18 occur:
19 (1) The district has issued school orders for wages as
20 permitted in Sections 8-16, 32-7.2 and 34-76 of this Code, or
21 the district has issued funding bonds to retire teacher
22 orders in 3 of the 5 last years;
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1 (2) The district has issued tax anticipation warrants or
2 tax anticipation notes in anticipation of a second year's
3 taxes when warrants or notes in anticipation of current year
4 taxes are still outstanding, as authorized by Sections 17-16,
5 34-23, 34-59 and 34-63 of this Code;
6 (3) The district has for 2 consecutive years shown an
7 excess of expenditures and other financing uses over revenues
8 and other financing sources and beginning fund balances on
9 its annual financial report for the aggregate totals of the
10 Educational, Operations and Maintenance, Transportation, and
11 Working Cash Funds;
12 (4) The district previously has been certified to be in
13 financial difficulty and requests to be recertified as a
14 result of continuing financial problems, or the district
15 previously has been certified as a financially distressed
16 district under Section 19-1.5.
17 No school district shall be certified to be in financial
18 difficulty by reason of any of the above circumstances
19 arising as a result of the failure of the county to make any
20 distribution of property tax money due the district at the
21 time such distribution is due; or if the district clearly
22 demonstrates to the satisfaction of the State Board of
23 Education at the time of its determination that such
24 condition no longer exists. If the State Board of Education
25 certifies that a district in a city with 500,000 inhabitants
26 or more is in financial difficulty, the State Board shall so
27 notify the Governor and the Mayor of the city in which the
28 district is located. The State Board of Education may
29 require school districts in financial difficulty, except
30 those districts subject to Article 34A, to develop, adopt and
31 submit a financial plan within 45 days after certification of
32 financial difficulty. The financial plan shall be developed
33 according to guidelines presented to the district by the
34 State Board of Education within 14 days of certification.
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1 Such guidelines shall address the specific nature of each
2 district's financial difficulties. Any proposed budget of the
3 district shall be consistent with the financial plan approved
4 by the State Board.
5 A district certified to be in financial difficulty, other
6 than a district subject to Article 34A, shall report to the
7 State Board of Education at such times and in such manner as
8 the State Board may direct, concerning the district's
9 compliance with each financial plan. The State Board may
10 review the district's operations, obtain budgetary data and
11 financial statements, require the district to produce
12 reports, and have access to any other information in the
13 possession of the district that it deems relevant. The State
14 Board may issue recommendations or directives within its
15 powers to the district to assure compliance with the
16 financial plan. The district shall produce such budgetary
17 data, financial statements, reports and other information and
18 comply with such directives. If the State Board of Education
19 determines that a district has failed to comply with its
20 financial plan, the State Board of Education may rescind
21 approval of the plan and appoint a Financial Oversight Panel
22 for the district as provided in Section 1B-4. This action
23 shall be taken only after the district has been given notice
24 and an opportunity to appear before the State Board of
25 Education to discuss its failure to comply with its financial
26 plan.
27 No bonds, notes, teachers orders, tax anticipation
28 warrants or other evidences of indebtedness shall be issued
29 or sold by a school district or be legally binding upon or
30 enforceable against a local board of education of a district
31 certified to be in financial difficulty unless and until the
32 financial plan required under this Section has been approved
33 by the State Board of Education.
34 Any financial watch list distributed by the State Board
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1 of Education pursuant to this Section shall designate those
2 school districts on the watch list that would not otherwise
3 be on the watch list were it not for the inability or refusal
4 of the State of Illinois to make timely disbursements of any
5 payments due school districts or to fully reimburse school
6 districts for mandated categorical programs pursuant to
7 reimbursement formulas provided in this School Code.
8 (Source: P.A. 88-555, eff. 7-27-94; 88-618, eff. 9-9-94;
9 89-235, eff. 8-4-95.)".