A couple of new school finance laws
There are a couple of new finance laws to pay attention to and be prepared to address.
PA 102-1088 – It is apparent that this Act was not supposed to apply to schools. However, as drafted, it is not clear whether it does nor not. We anticipate clarifying language from the General Assembly - but, for now, schools should be aware it exists and that the scheduling of this committee is not required until next year. Patience to await the changes and their effect is, at this point, advisable.
Decennial Committee on Local Government Efficiency Act - The Act establishes a committee composed of members from a local governmental unit (which may include schools, as written), the community, and the administration to meet every ten (10) years (beginning by June 10, 2023) to review and study the way the unit uses funds.
According to the law, each committee will "study local efficiencies and report recommendations regarding efficiencies and increased accountability to the county board in which the governmental unit is located." Each committee's membership shall include the elected or appointed members of the Board of Education; at least 2 residents of the District, who are appointed by the President of the Board of Education, with the advice and consent of the board; and the Superintendent or administrator. The committee shall be chaired by the President of the Board or the administrator, and the chair may appoint additional members.
The duties of the committee include, but are not limited to, the study of the School’s statutes, ordinances, rules, procedures, powers, jurisdiction, shared services, intergovernmental agreements, and interrelationships with other governmental units and the State. The committee shall also collect data, research, and analysis as necessary to prepare a report, meeting at least three (3) times during its work. The committee will prepare a written report, “which shall include recommendations in respect to increased accountability and efficiency, and shall provide the report to the county board in which the governmental unit is located no later than 18 months after the formation of the committee. The report shall be made available to the public.”
Schools are required merely to present a report to the Board of Education - it is unclear how this part of the statute will be effected by any change to the statute.
It is not clear, in the statute, what consequence, if any, exist for failure to comply with the new statutory creation.
PA 102-895 - Among many other changes in the lengthy bill, the following addition was made to the School Code at 17-1.3:
Notwithstanding any other provision of law, each school district shall disclose to the public, at the public hearing at which the district certifies its budget and levy for the taxable year, the cash reserve balance of all funds held by the district related to its operational levy and, if applicable, any obligations secured by those funds.
Indeed, the statute is silent on what way the information must be made available. Most schools are already discussing this information at meetings ahead of the hearings - so adding either a short summary statement, a handout, a projection, or other information that was previously presented to the Board as available at the hearing would apparently suffice.
The law also now permits recapture of certain unavailable tax levy funds from prior years resulting from a District not levying to its cap, however, the recapture remains subject to the present year's 5% levy limitations.