093_HB0764eng HB0764 Engrossed LRB093 05411 NHT 05501 b 1 AN ACT relating to schools. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing 5 Section 17-1 as follows: 6 (105 ILCS 5/17-1) (from Ch. 122, par. 17-1) 7 Sec. 17-1. Annual Budget. The board of education of each 8 school district under 500,000 inhabitants shall, within or 9 before the first quarter of each fiscal year, adopt an annual 10 budget which it deems necessary to defray all necessary 11 expenses and liabilities of the district, and in thissuch12 annual budget shall specify the objects and purposes of each 13 item and amount needed for each object or purpose. 14 The budget shall be entered upon a School District Budget 15 form prepared and provided by the State Board of Education 16 and therein shall contain a statement of the cash on hand at 17 the beginning of the fiscal year, an estimate of the cash 18 expected to be received during such fiscal year from all 19 sources, an estimate of the expenditures contemplated for 20 such fiscal year, and a statement of the estimated cash 21 expected to be on hand at the end of such year. The estimate 22 of taxes to be received may be based upon the amount of 23 actual cash receipts that may reasonably be expected by the 24 district during such fiscal year, estimated from the 25 experience of the district in prior years and with due regard 26 for other circumstances that may substantially affect such 27 receipts. Nothing in this Section shall be construed as 28 requiring any district to change or preventing any district 29 from changing from a cash basis of financing to a surplus or 30 deficit basis of financing; or as requiring any district to 31 change or preventing any district from changing its system of HB0764 Engrossed -2- LRB093 05411 NHT 05501 b 1 accounting. 2 The board of education of each district shall fix a 3 fiscal year therefor. If the beginning of the fiscal year of 4 a district is subsequent to the time that the tax levy due to 5 be made in such fiscal year shall be made, then such annual 6 budget shall be adopted prior to the time such tax levy shall 7 be made. The failure by a board of education of any district 8 to adopt an annual budget, or to comply in any respect with 9 the provisions of this Section, shall not affect the validity 10 of any tax levy of the district otherwise in conformity with 11 the law. With respect to taxes levied either before, on, or 12 after the effective date of this amendatory Act of the 91st 13 General Assembly, (i) a tax levy is made for the fiscal year 14 in which the levy is due to be made regardless of which 15 fiscal year the proceeds of the levy are expended or are 16 intended to be expended, and (ii) except as otherwise 17 provided by law, a board of education's adoption of an annual 18 budget in conformity with this Section is not a prerequisite 19 to the adoption of a valid tax levy and is not a limit on the 20 amount of the levy. 21 Such budget shall be prepared in tentative form by some 22 person or persons designated by the board, and in such 23 tentative form shall be made conveniently available to public 24 inspection for at least 30 days prior to final action 25 thereon. At least 1 public hearing shall be held as to such 26 budget prior to final action thereon. Notice of availability 27 for public inspection and of such public hearing shall be 28 given by publication in a newspaper published in such 29 district, at least 30 days prior to the time of such hearing. 30 If there is no newspaper published in such district, notice 31 of such public hearing shall be given by posting notices 32 thereof in 5 of the most public places in such district. It 33 shall be the duty of the secretary of such board to make such 34 tentative budget available to public inspection, and to HB0764 Engrossed -3- LRB093 05411 NHT 05501 b 1 arrange for such public hearing. The board may from time to 2 time make transfers between the various items in any fund not 3 exceeding in the aggregate 10% of the total of such fund as 4 set forth in the budget. The board may from time to time 5 amend such budget by the same procedure as is herein provided 6 for its original adoption. 7 Beginning July 1, 1976, the board of education, or 8 regional superintendent, or governing board responsible for 9 the administration of a joint agreement shall, by September 1 10 of each fiscal year thereafter, adopt an annual budget for 11 the joint agreement in the same manner and subject to the 12 same requirements as are provided in this Section. 13 The State Board of Education shall exercise powers and 14 duties relating to budgets as provided in Section 2--3.27 of 15 this Act. 16 By fiscal year 1982 all school districts shall use the 17 Program Budget Accounting System. 18 In the case of a school district receiving emergency 19 State financial assistance under Article 1B, the school board 20 shall also be subject to the requirements established under 21 Article 1B with respect to the annual budget. 22 (Source: P.A. 91-75, eff. 7-9-99.)