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90_SB1246ccr001
LRB9008398NTmbccr3
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 1246
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House Amendment
10 No. 1 to Senate Bill 1246, recommend the following:
11 (1) that the House recede from House Amendment No. 1;
12 and
13 (2) that Senate Bill 1246 be amended on page 1, line 5,
14 by replacing "Section 18-8.05" with "Sections 18-8.05 and
15 19-1"; and
16 on page 6, line 1, by replacing "1.20%" with "1.10% 1.20%";
17 and
18 on page 11, line 29, by replacing "1.20%" with "1.10% 1.20%";
19 and
20 on page 12, line 16, after "district", by inserting ", except
21 that for purposes of determining the supplemental general
22 State aid grant to be provided under this subsection for the
23 1999-2000 and the 2000-2001 school years to a qualifying
24 school district that has a population of less than 500,000
25 inhabitants, the "Low-Income Concentration Level" shall be
26 the low-income eligible pupil count from the most recently
27 available federal census divided (i) for the 1999-2000 school
28 year, by the Average Daily Attendance of the school district
29 for the 1997-1998 school year or by Average Daily Attendance
30 of the school district for the 1998-1999 school year,
31 whichever is lower, and (ii) for the 2000-2001 school year,
32 by the Average Daily Attendance of the school district for
33 the 1997-1998 school year or by the Average Daily Attendance
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1 of the school district for the 1998-1999 school year or by
2 the Average Daily Attendance of the school district for the
3 1999-2000 school year, whichever is the lowest"; and
4 on page 26, below line 27, by inserting the following:
5 "(105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
6 Sec. 19-1. Debt limitations of school districts.
7 (a) School districts shall not be subject to the
8 provisions limiting their indebtedness prescribed in "An Act
9 to limit the indebtedness of counties having a population of
10 less than 500,000 and townships, school districts and other
11 municipal corporations having a population of less than
12 300,000", approved February 15, 1928, as amended.
13 No school districts maintaining grades K through 8 or 9
14 through 12 shall become indebted in any manner or for any
15 purpose to an amount, including existing indebtedness, in the
16 aggregate exceeding 6.9% on the value of the taxable property
17 therein to be ascertained by the last assessment for State
18 and county taxes or, until January 1, 1983, if greater, the
19 sum that is produced by multiplying the school district's
20 1978 equalized assessed valuation by the debt limitation
21 percentage in effect on January 1, 1979, previous to the
22 incurring of such indebtedness.
23 No school districts maintaining grades K through 12 shall
24 become indebted in any manner or for any purpose to an
25 amount, including existing indebtedness, in the aggregate
26 exceeding 13.8% on the value of the taxable property therein
27 to be ascertained by the last assessment for State and county
28 taxes or, until January 1, 1983, if greater, the sum that is
29 produced by multiplying the school district's 1978 equalized
30 assessed valuation by the debt limitation percentage in
31 effect on January 1, 1979, previous to the incurring of such
32 indebtedness.
33 Notwithstanding the provisions of any other law to the
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1 contrary, in any case in which the voters of a school
2 district have approved a proposition for the issuance of
3 bonds of such school district at an election held prior to
4 January 1, 1979, and all of the bonds approved at such
5 election have not been issued, the debt limitation applicable
6 to such school district during the calendar year 1979 shall
7 be computed by multiplying the value of taxable property
8 therein, including personal property, as ascertained by the
9 last assessment for State and county taxes, previous to the
10 incurring of such indebtedness, by the percentage limitation
11 applicable to such school district under the provisions of
12 this subsection (a).
13 (b) Notwithstanding the debt limitation prescribed in
14 subsection (a) of this Section, additional indebtedness may
15 be incurred in an amount not to exceed the estimated cost of
16 acquiring or improving school sites or constructing and
17 equipping additional building facilities under the following
18 conditions:
19 (1) Whenever the enrollment of students for the
20 next school year is estimated by the board of education
21 to increase over the actual present enrollment by not
22 less than 35% or by not less than 200 students or the
23 actual present enrollment of students has increased over
24 the previous school year by not less than 35% or by not
25 less than 200 students and the board of education
26 determines that additional school sites or building
27 facilities are required as a result of such increase in
28 enrollment; and
29 (2) When the Regional Superintendent of Schools
30 having jurisdiction over the school district and the
31 State Superintendent of Education concur in such
32 enrollment projection or increase and approve the need
33 for such additional school sites or building facilities
34 and the estimated cost thereof; and
35 (3) When the voters in the school district approve
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1 a proposition for the issuance of bonds for the purpose
2 of acquiring or improving such needed school sites or
3 constructing and equipping such needed additional
4 building facilities at an election called and held for
5 that purpose. Notice of such an election shall state that
6 the amount of indebtedness proposed to be incurred would
7 exceed the debt limitation otherwise applicable to the
8 school district. The ballot for such proposition shall
9 state what percentage of the equalized assessed valuation
10 will be outstanding in bonds if the proposed issuance of
11 bonds is approved by the voters; or
12 (4) Notwithstanding the provisions of paragraphs
13 (1) through (3) of this subsection (b), if the school
14 board determines that additional facilities are needed to
15 provide a quality educational program and not less than
16 2/3 of those voting in an election called by the school
17 board on the question approve the issuance of bonds for
18 the construction of such facilities, the school district
19 may issue bonds for this purpose.
20 In no event shall the indebtedness incurred pursuant to
21 this subsection (b) and the existing indebtedness of the
22 school district exceed 15% of the value of the taxable
23 property therein to be ascertained by the last assessment for
24 State and county taxes, previous to the incurring of such
25 indebtedness or, until January 1, 1983, if greater, the sum
26 that is produced by multiplying the school district's 1978
27 equalized assessed valuation by the debt limitation
28 percentage in effect on January 1, 1979.
29 The indebtedness provided for by this subsection (b)
30 shall be in addition to and in excess of any other debt
31 limitation.
32 (c) Notwithstanding the debt limitation prescribed in
33 subsection (a) of this Section, in any case in which a public
34 question for the issuance of bonds of a proposed school
35 district maintaining grades kindergarten through 12 received
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1 at least 60% of the valid ballots cast on the question at an
2 election held on or prior to November 8, 1994, and in which
3 the bonds approved at such election have not been issued, the
4 school district pursuant to the requirements of Section
5 11A-10 may issue the total amount of bonds approved at such
6 election for the purpose stated in the question.
7 (d) Notwithstanding the debt limitation prescribed in
8 subsection (a) of this Section, a school district that meets
9 all the criteria set forth in paragraphs (1) and (2) of this
10 subsection (d) may incur an additional indebtedness in an
11 amount not to exceed $4,500,000, even though the amount of
12 the additional indebtedness authorized by this subsection
13 (d), when incurred and added to the aggregate amount of
14 indebtedness of the district existing immediately prior to
15 the district incurring the additional indebtedness authorized
16 by this subsection (d), causes the aggregate indebtedness of
17 the district to exceed the debt limitation otherwise
18 applicable to that district under subsection (a):
19 (1) The additional indebtedness authorized by this
20 subsection (d) is incurred by the school district through
21 the issuance of bonds under and in accordance with
22 Section 17-2.11a for the purpose of replacing a school
23 building which, because of mine subsidence damage, has
24 been closed as provided in paragraph (2) of this
25 subsection (d) or through the issuance of bonds under and
26 in accordance with Section 19-3 for the purpose of
27 increasing the size of, or providing for additional
28 functions in, such replacement school buildings, or both
29 such purposes.
30 (2) The bonds issued by the school district as
31 provided in paragraph (1) above are issued for the
32 purposes of construction by the school district of a new
33 school building pursuant to Section 17-2.11, to replace
34 an existing school building that, because of mine
35 subsidence damage, is closed as of the end of the 1992-93
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1 school year pursuant to action of the regional
2 superintendent of schools of the educational service
3 region in which the district is located under Section
4 3-14.22 or are issued for the purpose of increasing the
5 size of, or providing for additional functions in, the
6 new school building being constructed to replace a school
7 building closed as the result of mine subsidence damage,
8 or both such purposes.
9 (e) Notwithstanding the debt limitation prescribed in
10 subsection (a) of this Section, a school district that meets
11 all the criteria set forth in paragraphs (1) through (5) of
12 this subsection (e) may, without referendum, incur an
13 additional indebtedness in an amount not to exceed the lesser
14 of $5,000,000 or 1.5% of the value of the taxable property
15 within the district even though the amount of the additional
16 indebtedness authorized by this subsection (e), when incurred
17 and added to the aggregate amount of indebtedness of the
18 district existing immediately prior to the district incurring
19 that additional indebtedness, causes the aggregate
20 indebtedness of the district to exceed or increases the
21 amount by which the aggregate indebtedness of the district
22 already exceeds the debt limitation otherwise applicable to
23 that district under subsection (a):
24 (1) The State Board of Education certifies the
25 school district under Section 19-1.5 as a financially
26 distressed district.
27 (2) The additional indebtedness authorized by this
28 subsection (e) is incurred by the financially distressed
29 district during the school year or school years in which
30 the certification of the district as a financially
31 distressed district continues in effect through the
32 issuance of bonds for the lawful school purposes of the
33 district, pursuant to resolution of the school board and
34 without referendum, as provided in paragraph (5) of this
35 subsection.
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1 (3) The aggregate amount of bonds issued by the
2 financially distressed district during a fiscal year in
3 which it is authorized to issue bonds under this
4 subsection does not exceed the amount by which the
5 aggregate expenditures of the district for operational
6 purposes during the immediately preceding fiscal year
7 exceeds the amount appropriated for the operational
8 purposes of the district in the annual school budget
9 adopted by the school board of the district for the
10 fiscal year in which the bonds are issued.
11 (4) Throughout each fiscal year in which
12 certification of the district as a financially distressed
13 district continues in effect, the district maintains in
14 effect a gross salary expense and gross wage expense
15 freeze policy under which the district expenditures for
16 total employee salaries and wages do not exceed such
17 expenditures for the immediately preceding fiscal year.
18 Nothing in this paragraph, however, shall be deemed to
19 impair or to require impairment of the contractual
20 obligations, including collective bargaining agreements,
21 of the district or to impair or require the impairment of
22 the vested rights of any employee of the district under
23 the terms of any contract or agreement in effect on the
24 effective date of this amendatory Act of 1994.
25 (5) Bonds issued by the financially distressed
26 district under this subsection shall bear interest at a
27 rate not to exceed the maximum rate authorized by law at
28 the time of the making of the contract, shall mature
29 within 40 years from their date of issue, and shall be
30 signed by the president of the school board and treasurer
31 of the school district. In order to issue bonds under
32 this subsection, the school board shall adopt a
33 resolution fixing the amount of the bonds, the date of
34 the bonds, the maturities of the bonds, the rates of
35 interest of the bonds, and their place of payment and
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1 denomination, and shall provide for the levy and
2 collection of a direct annual tax upon all the taxable
3 property in the district sufficient to pay the principal
4 and interest on the bonds to maturity. Upon the filing
5 in the office of the county clerk of the county in which
6 the financially distressed district is located of a
7 certified copy of the resolution, it is the duty of the
8 county clerk to extend the tax therefor in addition to
9 and in excess of all other taxes at any time authorized
10 to be levied by the district. If bond proceeds from the
11 sale of bonds include a premium or if the proceeds of the
12 bonds are invested as authorized by law, the school board
13 shall determine by resolution whether the interest earned
14 on the investment of bond proceeds or the premium
15 realized on the sale of the bonds is to be used for any
16 of the lawful school purposes for which the bonds were
17 issued or for the payment of the principal indebtedness
18 and interest on the bonds. The proceeds of the bond sale
19 shall be deposited in the educational purposes fund of
20 the district and shall be used to pay operational
21 expenses of the district. This subsection is cumulative
22 and constitutes complete authority for the issuance of
23 bonds as provided in this subsection, notwithstanding any
24 other law to the contrary.
25 (f) Notwithstanding the provisions of subsection (a) of
26 this Section or of any other law, bonds in not to exceed the
27 aggregate amount of $5,500,000 and issued by a school
28 district meeting the following criteria shall not be
29 considered indebtedness for purposes of any statutory
30 limitation and may be issued in an amount or amounts,
31 including existing indebtedness, in excess of any heretofore
32 or hereafter imposed statutory limitation as to indebtedness:
33 (1) At the time of the sale of such bonds, the
34 board of education of the district shall have determined
35 by resolution that the enrollment of students in the
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1 district is projected to increase by not less than 7%
2 during each of the next succeeding 2 school years.
3 (2) The board of education shall also determine by
4 resolution that the improvements to be financed with the
5 proceeds of the bonds are needed because of the projected
6 enrollment increases.
7 (3) The board of education shall also determine by
8 resolution that the projected increases in enrollment are
9 the result of improvements made or expected to be made to
10 passenger rail facilities located in the school district.
11 (g) Notwithstanding the provisions of subsection (a) of
12 this Section or any other law, bonds in not to exceed an
13 aggregate amount of 25% of the equalized assessed value of
14 the taxable property of a school district and issued by a
15 school district meeting the criteria in paragraphs (i)
16 through (iv) of this subsection shall not be considered
17 indebtedness for purposes of any statutory limitation and may
18 be issued pursuant to resolution of the school board in an
19 amount or amounts, including existing indebtedness, in excess
20 of any statutory limitation of indebtedness heretofore or
21 hereafter imposed:
22 (i) The bonds are issued for the purpose of
23 constructing a new high school building to replace two
24 adjacent existing buildings which together house a single
25 high school, each of which is more than 65 years old, and
26 which together are located on more than 10 acres and less
27 than 11 acres of property.
28 (ii) At the time the resolution authorizing the
29 issuance of the bonds is adopted, the cost of
30 constructing a new school building to replace the
31 existing school building is less than 60% of the cost of
32 repairing the existing school building.
33 (iii) The sale of the bonds occurs before July 1,
34 1997.
35 (iv) The school district issuing the bonds is a
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1 unit school district located in a county of less than
2 70,000 and more than 50,000 inhabitants, which has an
3 average daily attendance of less than 1,500 and an
4 equalized assessed valuation of less than $29,000,000.
5 (h) Notwithstanding any other provisions of this Section
6 or the provisions of any other law, until January 1, 1998, a
7 community unit school district maintaining grades K through
8 12 may issue bonds up to an amount, including existing
9 indebtedness, not exceeding 27.6% of the equalized assessed
10 value of the taxable property in the district, if all of the
11 following conditions are met:
12 (i) The school district has an equalized assessed
13 valuation for calendar year 1995 of less than
14 $24,000,000;
15 (ii) The bonds are issued for the capital
16 improvement, renovation, rehabilitation, or replacement
17 of existing school buildings of the district, all of
18 which buildings were originally constructed not less than
19 40 years ago;
20 (iii) The voters of the district approve a
21 proposition for the issuance of the bonds at a referendum
22 held after March 19, 1996; and
23 (iv) The bonds are issued pursuant to Sections 19-2
24 through 19-7 of this Code.
25 (i) Notwithstanding any other provisions of this Section
26 or the provisions of any other law, until January 1, 1998, a
27 community unit school district maintaining grades K through
28 12 may issue bonds up to an amount, including existing
29 indebtedness, not exceeding 27% of the equalized assessed
30 value of the taxable property in the district, if all of the
31 following conditions are met:
32 (i) The school district has an equalized assessed
33 valuation for calendar year 1995 of less than
34 $44,600,000;
35 (ii) The bonds are issued for the capital
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1 improvement, renovation, rehabilitation, or replacement
2 of existing school buildings of the district, all of
3 which existing buildings were originally constructed not
4 less than 80 years ago;
5 (iii) The voters of the district approve a
6 proposition for the issuance of the bonds at a referendum
7 held after December 31, 1996; and
8 (iv) The bonds are issued pursuant to Sections 19-2
9 through 19-7 of this Code.
10 (j) Notwithstanding any other provisions of this Section
11 or the provisions of any other law, until January 1, 1999, a
12 community unit school district maintaining grades K through
13 12 may issue bonds up to an amount, including existing
14 indebtedness, not exceeding 27% of the equalized assessed
15 value of the taxable property in the district if all of the
16 following conditions are met:
17 (i) The school district has an equalized assessed
18 valuation for calendar year 1995 of less than
19 $140,000,000 and a best 3 months average daily attendance
20 for the 1995-96 school year of at least 2,800;
21 (ii) The bonds are issued to purchase a site and
22 build and equip a new high school, and the school
23 district's existing high school was originally
24 constructed not less than 35 years prior to the sale of
25 the bonds;
26 (iii) At the time of the sale of the bonds, the
27 board of education determines by resolution that a new
28 high school is needed because of projected enrollment
29 increases;
30 (iv) At least 60% of those voting in an election
31 held after December 31, 1996 approve a proposition for
32 the issuance of the bonds; and
33 (v) The bonds are issued pursuant to Sections 19-2
34 through 19-7 of this Code.
35 (k) Notwithstanding the debt limitation prescribed in
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1 subsection (a) of this Section or any other provisions of
2 this Section or of any other law, a school district that
3 meets all of the criteria set forth in paragraphs (i) through
4 (vi) of this subsection (k) may incur additional indebtedness
5 by the issuance of bonds in an amount not exceeding the
6 amount certified by the Capital Development Board to the
7 school district as provided in paragraph (iii) of this
8 subsection (k), even though the amount of the additional
9 indebtedness so authorized, when incurred and added to the
10 aggregate amount of indebtedness of the district existing
11 immediately prior to the district incurring the additional
12 indebtedness authorized by this subsection (k), causes the
13 aggregate indebtedness of the district to exceed the debt
14 limitation otherwise applicable by law to that district:
15 (i) The school district applies to the State Board
16 of Education for a school construction project grant and
17 submits a district facilities plan in support of its
18 application pursuant to Section 5-20 of the School
19 Construction Law.
20 (ii) The school district's application and
21 facilities plan are approved by, and the district
22 receives a grant entitlement for a school construction
23 project issued by, the State Board of Education under the
24 School Construction Law.
25 (iii) The school district has exhausted its bonding
26 capacity or the unused bonding capacity of the district
27 is less than the amount certified by the Capital
28 Development Board to the district under Section 5-15 of
29 the School Construction Law as the dollar amount of the
30 school construction project's cost that the district will
31 be required to finance with non-grant funds in order to
32 receive a school construction project grant under the
33 School Construction Law.
34 (iv) The bonds are issued for a "school
35 construction project", as that term is defined in Section
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1 5-5 of the School Construction Law, in an amount that
2 does not exceed the dollar amount certified, as provided
3 in paragraph (iii) of this subsection (k), by the Capital
4 Development Board to the school district under Section
5 5-15 of the School Construction Law.
6 (v) The voters of the district approve a
7 proposition for the issuance of the bonds at a referendum
8 held after the criteria specified in paragraphs (i) and
9 (iii) of this subsection (k) are met.
10 (vi) The bonds are issued pursuant to Sections 19-2
11 through 19-7 of this Code.
12 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
13 89-698, eff. 1-14-97; 90-570, eff. 1-28-98.)
14 Section 7. The School Construction Law is amended by
15 changing Sections 5-15 and 5-20 as follows:
16 (105 ILCS 230/5-15)
17 Sec. 5-15. Grant entitlements. The State Board of
18 Education is authorized to issue grant entitlements for
19 school construction projects and debt service and shall
20 determine the priority order for school construction project
21 grants to be made by the Capital Development Board. After the
22 State Board of Education issues a grant entitlement for a
23 school construction project, the Capital Development Board
24 shall, upon request of the district, certify to the district
25 pursuant to subsection (k) of Section 19-1 of the School Code
26 the dollar amount of the school construction project's cost
27 that the district will be required to finance with non-grant
28 funds in order to qualify to receive a school construction
29 project grant under this Article from the Capital Development
30 Board.
31 (Source: P.A. 90-548, eff. 1-1-98.)
32 (105 ILCS 230/5-20)
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1 Sec. 5-20. Grant application; district facilities plan.
2 School districts shall apply to the State Board of Education
3 for school construction project grants and debt service
4 grants. Districts filing grant applications shall submit to
5 the State Board a district facilities plan that shall
6 include, but not be limited to, an assessment of present and
7 future district facility needs as required by present and
8 anticipated educational programming, the availability of
9 local financial resources including current revenues, fund
10 balances, and unused bonding capacity, a fiscal plan for
11 meeting present and anticipated debt service obligations, and
12 a maintenance plan and schedule that contain necessary
13 assurances that new, renovated, and existing facilities are
14 being or will be properly maintained. If a district that
15 applies for a school construction project grant has no unused
16 bonding capacity or if its unused bonding capacity may be
17 less than the portion of the cost of the proposed school
18 construction project that the district would be required to
19 finance with non-grant funds, the application and facilities
20 plan submitted by the district shall set forth the estimated
21 amount of the project's cost that the district proposes to
22 finance by the issuance of bonds under subsection (k) of
23 Section 19-1 of the School Code. The State Board of Education
24 shall review and approve district facilities plans prior to
25 issuing grant entitlements. Each district that receives a
26 grant entitlement shall annually update its district
27 facilities plan and submit the revised plan to the State
28 Board for approval.
29 (Source: P.A. 90-548, eff. 1-1-98.)"; and
30 on page 28, line 2, after "effect", by inserting "upon
31 becoming law, except that the provisions changing Section
32 18-8.05 of the School Code and Sections 15-10, 15-15, and
33 15-20 of the General State Aid Continuing Appropriation Law
34 take effect".
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1 Submitted on , 1998.
2 ______________________________ _____________________________
3 Senator Representative Currie
4 ______________________________ _____________________________
5 Senator Representative Crotty
6 ______________________________ _____________________________
7 Senator Representative Phelps
8 ______________________________ _____________________________
9 Senator Representative Kosel
10 ______________________________ _____________________________
11 Senator Representative Churchill
12 Committee for the Senate Committee for the House