Public Act 93-0013

HB2910 Enrolled                      LRB093 07384 NHT 07547 b

    AN ACT regarding schools.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  School  Code  is  amended  by changing
Section 19-1 as follows:

    (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
    Sec. 19-1.  Debt limitations of school districts.
    (a)  School  districts  shall  not  be  subject  to   the
provisions  limiting their indebtedness prescribed in "An Act
to limit the indebtedness of counties having a population  of
less  than  500,000 and townships, school districts and other
municipal corporations  having  a  population  of  less  than
300,000", approved February 15, 1928, as amended.
    No  school  districts maintaining grades K through 8 or 9
through 12 shall become indebted in any  manner  or  for  any
purpose to an amount, including existing indebtedness, in the
aggregate exceeding 6.9% on the value of the taxable property
therein  to  be  ascertained by the last assessment for State
and county taxes or, until January 1, 1983, if  greater,  the
sum  that  is  produced  by multiplying the school district's
1978 equalized assessed  valuation  by  the  debt  limitation
percentage  in  effect  on  January  1, 1979, previous to the
incurring of such indebtedness.
    No school districts maintaining grades K through 12 shall
become indebted in any  manner  or  for  any  purpose  to  an
amount,  including  existing  indebtedness,  in the aggregate
exceeding 13.8% on the value of the taxable property  therein
to be ascertained by the last assessment for State and county
taxes  or, until January 1, 1983, if greater, the sum that is
produced by multiplying the school district's 1978  equalized
assessed  valuation  by  the  debt  limitation  percentage in
effect on January 1, 1979, previous to the incurring of  such
indebtedness.
    Notwithstanding  the  provisions  of any other law to the
contrary, in any  case  in  which  the  voters  of  a  school
district  have  approved  a  proposition  for the issuance of
bonds of such school district at an election  held  prior  to
January  1,  1979,  and  all  of  the  bonds approved at such
election have not been issued, the debt limitation applicable
to such school district during the calendar year  1979  shall
be  computed  by  multiplying  the  value of taxable property
therein, including personal property, as ascertained  by  the
last  assessment  for State and county taxes, previous to the
incurring of such indebtedness, by the percentage  limitation
applicable  to  such  school district under the provisions of
this subsection (a).
    (b)  Notwithstanding the debt  limitation  prescribed  in
subsection  (a)  of this Section, additional indebtedness may
be incurred in an amount not to exceed the estimated cost  of
acquiring  or  improving  school  sites  or  constructing and
equipping additional building facilities under the  following
conditions:
         (1)  Whenever  the  enrollment  of  students for the
    next school year is estimated by the board  of  education
    to  increase  over  the  actual present enrollment by not
    less than 35% or by not less than  200  students  or  the
    actual  present enrollment of students has increased over
    the previous school year by not less than 35% or  by  not
    less  than  200  students  and  the  board  of  education
    determines  that  additional  school  sites  or  building
    facilities  are  required as a result of such increase in
    enrollment; and
         (2)  When the  Regional  Superintendent  of  Schools
    having  jurisdiction  over  the  school  district and the
    State  Superintendent  of  Education   concur   in   such
    enrollment  projection  or  increase and approve the need
    for such additional school sites or  building  facilities
    and the estimated cost thereof; and
         (3)  When  the voters in the school district approve
    a proposition for the issuance of bonds for  the  purpose
    of  acquiring  or  improving  such needed school sites or
    constructing  and  equipping   such   needed   additional
    building  facilities  at  an election called and held for
    that purpose. Notice of such an election shall state that
    the amount of indebtedness proposed to be incurred  would
    exceed  the  debt  limitation otherwise applicable to the
    school district.  The ballot for such  proposition  shall
    state what percentage of the equalized assessed valuation
    will  be outstanding in bonds if the proposed issuance of
    bonds is approved by the voters; or
         (4)  Notwithstanding the  provisions  of  paragraphs
    (1)  through  (3)  of  this subsection (b), if the school
    board determines that additional facilities are needed to
    provide a quality educational program and not  less  than
    2/3  of  those voting in an election called by the school
    board on the question approve the issuance of  bonds  for
    the  construction of such facilities, the school district
    may issue bonds for this purpose; or
         (5)  Notwithstanding the  provisions  of  paragraphs
    (1) through (3) of this subsection (b), if (i) the school
    district  has previously availed itself of the provisions
    of paragraph (4) of this subsection (b) to enable  it  to
    issue  bonds, (ii) the voters of the school district have
    not defeated a proposition  for  the  issuance  of  bonds
    since  the  referendum described in paragraph (4) of this
    subsection  (b)  was  held,  (iii)   the   school   board
    determines  that  additional  facilities  are  needed  to
    provide   a  quality  educational  program,  and  (iv)  a
    majority of those voting in an  election  called  by  the
    school  board  on  the  question  approve the issuance of
    bonds for the construction of such facilities, the school
    district may issue bonds for this purpose.
    In no event shall the indebtedness incurred  pursuant  to
this  subsection  (b)  and  the  existing indebtedness of the
school district exceed  15%  of  the  value  of  the  taxable
property therein to be ascertained by the last assessment for
State  and  county  taxes,  previous to the incurring of such
indebtedness or, until January 1, 1983, if greater,  the  sum
that  is  produced  by multiplying the school district's 1978
equalized  assessed  valuation   by   the   debt   limitation
percentage in effect on January 1, 1979.
    The  indebtedness  provided  for  by  this subsection (b)
shall be in addition to and  in  excess  of  any  other  debt
limitation.
    (c)  Notwithstanding  the  debt  limitation prescribed in
subsection (a) of this Section, in any case in which a public
question for the issuance  of  bonds  of  a  proposed  school
district  maintaining grades kindergarten through 12 received
at least 60% of the valid ballots cast on the question at  an
election  held  on or prior to November 8, 1994, and in which
the bonds approved at such election have not been issued, the
school district  pursuant  to  the  requirements  of  Section
11A-10  may  issue the total amount of bonds approved at such
election for the purpose stated in the question.
    (d)  Notwithstanding the debt  limitation  prescribed  in
subsection  (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) and (2) of  this
subsection  (d)  may  incur  an additional indebtedness in an
amount not to exceed $4,500,000, even though  the  amount  of
the  additional  indebtedness  authorized  by this subsection
(d), when incurred and  added  to  the  aggregate  amount  of
indebtedness  of  the  district existing immediately prior to
the district incurring the additional indebtedness authorized
by this subsection (d), causes the aggregate indebtedness  of
the   district   to  exceed  the  debt  limitation  otherwise
applicable to that district under subsection (a):
         (1)  The additional indebtedness authorized by  this
    subsection (d) is incurred by the school district through
    the  issuance  of  bonds  under  and  in  accordance with
    Section 17-2.11a for the purpose of  replacing  a  school
    building  which,  because  of mine subsidence damage, has
    been  closed  as  provided  in  paragraph  (2)  of   this
    subsection (d) or through the issuance of bonds under and
    in  accordance  with  Section  19-3  for  the  purpose of
    increasing the  size  of,  or  providing  for  additional
    functions  in, such replacement school buildings, or both
    such purposes.
         (2)  The bonds issued  by  the  school  district  as
    provided  in  paragraph  (1)  above  are  issued  for the
    purposes of construction by the school district of a  new
    school  building  pursuant to Section 17-2.11, to replace
    an  existing  school  building  that,  because  of   mine
    subsidence damage, is closed as of the end of the 1992-93
    school   year   pursuant   to   action  of  the  regional
    superintendent of  schools  of  the  educational  service
    region  in  which  the  district is located under Section
    3-14.22 or are issued for the purpose of  increasing  the
    size  of,  or  providing for additional functions in, the
    new school building being constructed to replace a school
    building closed as the result of mine subsidence  damage,
    or both such purposes.
    (e)  Notwithstanding  the  debt  limitation prescribed in
subsection (a) of this Section, a school district that  meets
all  the  criteria set forth in paragraphs (1) through (5) of
this  subsection  (e)  may,  without  referendum,  incur   an
additional indebtedness in an amount not to exceed the lesser
of  $5,000,000  or  1.5% of the value of the taxable property
within the district even though the amount of the  additional
indebtedness authorized by this subsection (e), when incurred
and  added  to  the  aggregate  amount of indebtedness of the
district existing immediately prior to the district incurring
that   additional   indebtedness,   causes   the    aggregate
indebtedness  of  the  district  to  exceed  or increases the
amount by which the aggregate indebtedness  of  the  district
already  exceeds  the debt limitation otherwise applicable to
that district under subsection (a):
         (1)  The State  Board  of  Education  certifies  the
    school  district  under  Section  19-1.5 as a financially
    distressed district.
         (2)  The additional indebtedness authorized by  this
    subsection  (e) is incurred by the financially distressed
    district during the school year or school years in  which
    the  certification  of  the  district  as  a  financially
    distressed  district  continues  in  effect  through  the
    issuance  of  bonds for the lawful school purposes of the
    district, pursuant to resolution of the school board  and
    without  referendum, as provided in paragraph (5) of this
    subsection.
         (3)  The aggregate amount of  bonds  issued  by  the
    financially  distressed  district during a fiscal year in
    which  it  is  authorized  to  issue  bonds  under   this
    subsection  does  not  exceed  the  amount  by  which the
    aggregate expenditures of the  district  for  operational
    purposes  during  the  immediately  preceding fiscal year
    exceeds  the  amount  appropriated  for  the  operational
    purposes of the district  in  the  annual  school  budget
    adopted  by  the  school  board  of  the district for the
    fiscal year in which the bonds are issued.
         (4)  Throughout   each   fiscal   year   in    which
    certification of the district as a financially distressed
    district  continues  in effect, the district maintains in
    effect a gross salary  expense  and  gross  wage  expense
    freeze  policy  under which the district expenditures for
    total employee salaries and  wages  do  not  exceed  such
    expenditures  for  the immediately preceding fiscal year.
    Nothing in this paragraph, however, shall  be  deemed  to
    impair  or  to  require  impairment  of  the  contractual
    obligations,  including collective bargaining agreements,
    of the district or to impair or require the impairment of
    the vested rights of any employee of the  district  under
    the  terms  of any contract or agreement in effect on the
    effective date of this amendatory Act of 1994.
         (5)  Bonds  issued  by  the  financially  distressed
    district under this subsection shall bear interest  at  a
    rate  not to exceed the maximum rate authorized by law at
    the time of the making  of  the  contract,  shall  mature
    within  40  years  from their date of issue, and shall be
    signed by the president of the school board and treasurer
    of the school district.  In order to  issue  bonds  under
    this   subsection,   the   school  board  shall  adopt  a
    resolution fixing the amount of the bonds,  the  date  of
    the  bonds,  the  maturities  of  the bonds, the rates of
    interest of the bonds, and their  place  of  payment  and
    denomination,   and   shall  provide  for  the  levy  and
    collection of a direct annual tax upon  all  the  taxable
    property  in the district sufficient to pay the principal
    and interest on the bonds to maturity.  Upon  the  filing
    in  the office of the county clerk of the county in which
    the financially  distressed  district  is  located  of  a
    certified  copy  of the resolution, it is the duty of the
    county clerk to extend the tax therefor  in  addition  to
    and  in  excess of all other taxes at any time authorized
    to be levied by the district.  If bond proceeds from  the
    sale of bonds include a premium or if the proceeds of the
    bonds are invested as authorized by law, the school board
    shall determine by resolution whether the interest earned
    on  the  investment  of  bond  proceeds  or  the  premium
    realized  on  the sale of the bonds is to be used for any
    of the lawful school purposes for which  the  bonds  were
    issued  or  for the payment of the principal indebtedness
    and interest on the bonds.  The proceeds of the bond sale
    shall be deposited in the educational  purposes  fund  of
    the  district  and  shall  be  used  to  pay  operational
    expenses  of the district.  This subsection is cumulative
    and constitutes complete authority for  the  issuance  of
    bonds as provided in this subsection, notwithstanding any
    other law to the contrary.
    (f)  Notwithstanding  the provisions of subsection (a) of
this Section or of any other law, bonds in not to exceed  the
aggregate  amount  of  $5,500,000  and  issued  by  a  school
district   meeting   the  following  criteria  shall  not  be
considered  indebtedness  for  purposes  of   any   statutory
limitation  and  may  be  issued  in  an  amount  or amounts,
including existing indebtedness, in excess of any  heretofore
or hereafter imposed statutory limitation as to indebtedness:
         (1)  At  the  time  of  the  sale of such bonds, the
    board of education of the district shall have  determined
    by  resolution  that  the  enrollment  of students in the
    district is projected to increase by  not  less  than  7%
    during each of the next succeeding 2 school years.
         (2)  The  board of education shall also determine by
    resolution that the improvements to be financed with  the
    proceeds of the bonds are needed because of the projected
    enrollment increases.
         (3)  The  board of education shall also determine by
    resolution that the projected increases in enrollment are
    the result of improvements made or expected to be made to
    passenger rail facilities located in the school district.
    (g)  Notwithstanding the provisions of subsection (a)  of
this  Section  or  any  other  law, bonds in not to exceed an
aggregate amount of 25% of the equalized  assessed  value  of
the  taxable  property  of  a school district and issued by a
school  district  meeting  the  criteria  in  paragraphs  (i)
through (iv) of  this  subsection  shall  not  be  considered
indebtedness for purposes of any statutory limitation and may
be  issued  pursuant  to resolution of the school board in an
amount or amounts, including existing indebtedness, in excess
of any statutory limitation  of  indebtedness  heretofore  or
hereafter imposed:
         (i)  The   bonds  are  issued  for  the  purpose  of
    constructing a new high school building  to  replace  two
    adjacent existing buildings which together house a single
    high school, each of which is more than 65 years old, and
    which together are located on more than 10 acres and less
    than 11 acres of property.
         (ii)  At  the  time  the  resolution authorizing the
    issuance  of  the  bonds  is   adopted,   the   cost   of
    constructing   a  new  school  building  to  replace  the
    existing school building is less than 60% of the cost  of
    repairing the existing school building.
         (iii)  The  sale  of the bonds occurs before July 1,
    1997.
         (iv)  The school district issuing  the  bonds  is  a
    unit  school  district  located  in a county of less than
    70,000 and more than 50,000  inhabitants,  which  has  an
    average  daily  attendance  of  less  than  1,500  and an
    equalized assessed valuation of less than $29,000,000.
    (h)  Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1998,  a
community  unit  school district maintaining grades K through
12 may issue  bonds  up  to  an  amount,  including  existing
indebtedness,  not  exceeding 27.6% of the equalized assessed
value of the taxable property in the district, if all of  the
following conditions are met:
         (i)  The  school  district has an equalized assessed
    valuation  for  calendar   year   1995   of   less   than
    $24,000,000;
         (ii)  The   bonds   are   issued   for  the  capital
    improvement, renovation, rehabilitation,  or  replacement
    of  existing  school  buildings  of  the district, all of
    which buildings were originally constructed not less than
    40 years ago;
         (iii)  The  voters  of  the   district   approve   a
    proposition for the issuance of the bonds at a referendum
    held after March 19, 1996; and
         (iv)  The bonds are issued pursuant to Sections 19-2
    through 19-7 of this Code.
    (i)  Notwithstanding any other provisions of this Section
or  the provisions of any other law, until January 1, 1998, a
community unit school district maintaining grades  K  through
12  may  issue  bonds  up  to  an  amount, including existing
indebtedness, not exceeding 27%  of  the  equalized  assessed
value  of the taxable property in the district, if all of the
following conditions are met:
         (i)  The school district has an  equalized  assessed
    valuation   for   calendar   year   1995   of  less  than
    $44,600,000;
         (ii)  The  bonds  are   issued   for   the   capital
    improvement,  renovation,  rehabilitation, or replacement
    of existing school buildings  of  the  district,  all  of
    which  existing buildings were originally constructed not
    less than 80 years ago;
         (iii)  The  voters  of  the   district   approve   a
    proposition for the issuance of the bonds at a referendum
    held after December 31, 1996; and
         (iv)  The bonds are issued pursuant to Sections 19-2
    through 19-7 of this Code.
    (j)  Notwithstanding any other provisions of this Section
or  the provisions of any other law, until January 1, 1999, a
community unit school district maintaining grades  K  through
12  may  issue  bonds  up  to  an  amount, including existing
indebtedness, not exceeding 27%  of  the  equalized  assessed
value  of  the taxable property in the district if all of the
following conditions are met:
         (i)  The school district has an  equalized  assessed
    valuation   for   calendar   year   1995   of  less  than
    $140,000,000 and a best 3 months average daily attendance
    for the 1995-96 school year of at least 2,800;
         (ii)  The bonds are issued to purchase  a  site  and
    build  and  equip  a  new  high  school,  and  the school
    district's   existing   high   school   was    originally
    constructed  not  less than 35 years prior to the sale of
    the bonds;
         (iii)  At the time of the sale  of  the  bonds,  the
    board  of  education  determines by resolution that a new
    high school is needed  because  of  projected  enrollment
    increases;
         (iv)  At  least  60%  of those voting in an election
    held after December 31, 1996 approve  a  proposition  for
    the issuance of the bonds; and
         (v)  The  bonds are issued pursuant to Sections 19-2
    through 19-7 of this Code.
    (k)  Notwithstanding the debt  limitation  prescribed  in
subsection  (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) through  (4)  of
this  subsection  (k)  may issue bonds to incur an additional
indebtedness in an  amount  not  to  exceed  $4,000,000  even
though  the  amount of the additional indebtedness authorized
by this subsection  (k),  when  incurred  and  added  to  the
aggregate  amount  of  indebtedness  of  the  school district
existing immediately prior to the school  district  incurring
such    additional   indebtedness,   causes   the   aggregate
indebtedness of the school district to  exceed  or  increases
the  amount  by  which  the  aggregate  indebtedness  of  the
district   already  exceeds  the  debt  limitation  otherwise
applicable to that school district under subsection (a):
         (1)  the school district is located in  2  counties,
    and a referendum to authorize the additional indebtedness
    was  approved  by  a majority of the voters of the school
    district voting on  the  proposition  to  authorize  that
    indebtedness;
         (2)  the  additional indebtedness is for the purpose
    of  financing  a  multi-purpose  room  addition  to   the
    existing high school;
         (3)  the  additional indebtedness, together with the
    existing indebtedness of the school district,  shall  not
    exceed  17.4% of the value of the taxable property in the
    school district, to be ascertained by the last assessment
    for State and county taxes; and
         (4)  the    bonds    evidencing    the    additional
    indebtedness are issued, if at all, within  120  days  of
    the effective date of this amendatory Act of 1998.
    (l)  Notwithstanding any other provisions of this Section
or  the provisions of any other law, until January 1, 2000, a
school district maintaining grades kindergarten through 8 may
issue bonds up to an amount, including existing indebtedness,
not exceeding 15% of the  equalized  assessed  value  of  the
taxable  property  in  the  district  if all of the following
conditions are met:
         (i)  the  district   has   an   equalized   assessed
    valuation   for   calendar   year   1996   of  less  than
    $10,000,000;
         (ii)  the bonds are issued for capital  improvement,
    renovation, rehabilitation, or replacement of one or more
    school  buildings  of  the district, which buildings were
    originally constructed not less than 70 years ago;
         (iii)  the  voters  of  the   district   approve   a
    proposition for the issuance of the bonds at a referendum
    held on or after March 17, 1998; and
         (iv)  the bonds are issued pursuant to Sections 19-2
    through 19-7 of this Code.
    (m)  Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1999, an
elementary school district maintaining grades K through 8 may
issue bonds up to an amount, excluding existing indebtedness,
not  exceeding  18%  of  the  equalized assessed value of the
taxable property in the district, if  all  of  the  following
conditions are met:
         (i)  The  school  district has an equalized assessed
    valuation for calendar year 1995 or less than $7,700,000;
         (ii)  The  school  district  operates  2  elementary
    attendance centers that until 1976 were operated  as  the
    attendance  centers  of  2  separate  and distinct school
    districts;
         (iii)  The bonds are issued for the construction  of
    a  new  elementary school building to replace an existing
    multi-level elementary  school  building  of  the  school
    district that is not handicapped accessible at all levels
    and  parts  of  which were constructed more than 75 years
    ago;
         (iv)  The voters of the school  district  approve  a
    proposition for the issuance of the bonds at a referendum
    held after July 1, 1998; and
         (v)  The  bonds are issued pursuant to Sections 19-2
    through 19-7 of this Code.
    (n)  Notwithstanding the debt  limitation  prescribed  in
subsection  (a)  of  this  Section or any other provisions of
this Section or of any other  law,  a  school  district  that
meets all of the criteria set forth in paragraphs (i) through
(vi) of this subsection (n) may incur additional indebtedness
by  the  issuance  of  bonds  in  an amount not exceeding the
amount certified by the  Capital  Development  Board  to  the
school  district  as  provided  in  paragraph  (iii)  of this
subsection (n), even though  the  amount  of  the  additional
indebtedness  so  authorized,  when incurred and added to the
aggregate amount of indebtedness  of  the  district  existing
immediately  prior  to  the district incurring the additional
indebtedness authorized by this subsection  (n),  causes  the
aggregate  indebtedness  of  the  district to exceed the debt
limitation otherwise applicable by law to that district:
         (i)  The school district applies to the State  Board
    of  Education for a school construction project grant and
    submits a district facilities  plan  in  support  of  its
    application  pursuant  to  Section  5-20  of  the  School
    Construction Law.
         (ii)  The    school   district's   application   and
    facilities  plan  are  approved  by,  and  the   district
    receives  a  grant  entitlement for a school construction
    project issued by, the State Board of Education under the
    School Construction Law.
         (iii)  The school district has exhausted its bonding
    capacity or the unused bonding capacity of  the  district
    is   less  than  the  amount  certified  by  the  Capital
    Development Board to the district under Section  5-15  of
    the  School  Construction Law as the dollar amount of the
    school construction project's cost that the district will
    be required to finance with non-grant funds in  order  to
    receive  a  school  construction  project grant under the
    School Construction Law.
         (iv)  The   bonds   are   issued   for   a   "school
    construction project", as that term is defined in Section
    5-5 of the School Construction Law,  in  an  amount  that
    does  not exceed the dollar amount certified, as provided
    in paragraph (iii) of this subsection (n), by the Capital
    Development Board to the school  district  under  Section
    5-15 of the School Construction Law.
         (v)  The   voters   of   the   district   approve  a
    proposition for the issuance of the bonds at a referendum
    held after the criteria specified in paragraphs  (i)  and
    (iii) of this subsection (n) are met.
         (vi)  The bonds are issued pursuant to Sections 19-2
    through 19-7 of the School Code.
    (o)  Notwithstanding any other provisions of this Section
or the provisions of any other law, until November 1, 2007, a
community  unit  school district maintaining grades K through
12 may issue  bonds  up  to  an  amount,  including  existing
indebtedness,  not  exceeding  20%  of the equalized assessed
value of the taxable property in the district if all  of  the
following conditions are met:
         (i)  the  school  district has an equalized assessed
    valuation for calendar year 2001 of at least $737,000,000
    and an enrollment for the 2002-2003  school  year  of  at
    least 8,500;
         (ii)  the bonds are issued to purchase school sites,
    build  and equip a new high school, build and equip a new
    junior high school, build  and  equip  5  new  elementary
    schools,  and  make technology and other improvements and
    additions to existing schools;
         (iii)  at the time of the sale  of  the  bonds,  the
    board  of  education  determines  by  resolution that the
    sites and new or improved facilities are  needed  because
    of projected enrollment increases;
         (iv)  at  least  57%  of  those  voting in a general
    election  held  prior  to  January  1,  2003  approved  a
    proposition for the issuance of the bonds; and
         (v)  the bonds are issued pursuant to Sections  19-2
    through 19-7 of this Code.
(Source: P.A.  90-570,  eff.  1-28-98;  90-757, eff. 8-14-98;
91-55, eff. 6-30-99.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.