SCH CD-TAX ANTICIPAT WARNT
Synopsis of Bill as introduced:
Amends the School Code. Provides that, in lieu of issuing tax
anticipation warrants, the Chicago Board of Education may issue notes,
bonds, or other obligations (and in connection with that issuance,
establish a line of credit with a bank) in an amount not to exceed 85%
of the amount of property taxes most recently levied for educational
and building purposes. Provides that all moneys so borrowed shall be
repaid from the taxes when collected. Provides that the borrowing
shall bear interest at a rate not to exceed the maximum rate
authorized by the Bond Authorization Act, from the date of issuance
until paid. Provides that prior to the Board borrowing or
establishing a line of credit, the Board shall authorize, by
resolution, the borrowing or line of credit. Establishes requirements
for the resolution. Effective immediately.
HOUSE AMENDMENT NO. 1.
Provides that all moneys so borrowed shall be repaid exclusively
from property tax revenues within 60 days after the property tax
revenues have been received by the Board (instead of the money being
repaid from the taxes when collected).
HOUSE AMENDMENT NO. 2.
Adds reference to:
105 ILCS 5/17-17 new
Allows all school districts, not just Chicago, to issue notes,
bonds, or other obligations in lieu of tax anticipation warrants.
FISCAL NOTE, H-AM 1 & 2 (State Board of Education)
HB 3729, as amended by H-ams #1 and #2, should not increase
costs to the State. Using notes, bonds, and other obligations
instead of tax anticipation warrants may increase or decrease
borrowing costs for local school districts depending on the
circumstances, but it is likely to be a marginal change in
STATE MANDATES NOTE, H-AM 1 & 2 (State Board of Education)
Same as SBE fiscal note.
Last action on Bill: PUBLIC ACT.............................. 92-0620
Last action date: JUL-11-2002
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0
END OF INQUIRY
Full Text Bill Status