HB2570 94TH GENERAL ASSEMBLY

LRB094 08892 LJB 39112 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2570

Introduced 02/18/05, by Rep. Brandon W. Phelps

SYNOPSIS AS INTRODUCED:

110 ILCS 805/3-33.6

from Ch. 122, par. 103-33.6

Amends the Public Community College Act. Provides that a community college district may, by proper resolution of the board following a public hearing set by the board or chairperson of the board, permanently transfer moneys from the working cash fund to the fund of the district most in need of the funds being transferred so long as the aggregate amount of transfers from the working cash fund in any fiscal year does not exceed 90% of the maximum amount credited to the working cash fund during the fiscal year. Provides that the public hearing must be preceded by notice. Effective immediately.

A BILL FOR

AN ACT concerning education.

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

Section 5. The Public Community College Act is amended by changing Section 3-33.6 as follows:

(110 ILCS 805/3-33.6) (from Ch. 122, par. 103-33.6)

Sec. 3-33.6. Monies may be transferred from the working cash fund to the educational fund or operations and maintenance fund only upon the authority of the board, which shall by resolution direct the community college treasurer to make such transfers. The resolution shall set forth (a) the taxes or other funds in anticipation of the collection or receipt of which the working cash fund is to be reimbursed, (b) the entire amount of taxes extended, or which the board shall estimate will be extended or received, for any year in anticipation of the collection of all or part of which such transfers are to be made, (c) the aggregate amount of warrants or notes theretofore issued in anticipation of the collection of such taxes under this Act together with the amount of interest accrued and which the community college board estimates will accrue thereon, (d) the amount of monies which the community college board estimates will be derived for any year from the State, Federal government or other sources in anticipation of the receipt of all or part of which such transfer is to be made, (e) the aggregate amount of receipts from taxes imposed to replace revenue lost by units of local government and school districts as a result of the abolition of ad valorem personal property taxes, pursuant to Article IX, Section 5(c) of the Constitution of the State of Illinois, which the corporate authorities estimate will be set aside for the payment of the proportionate amount of debt service and pension or retirement obligations, as required by Section 12 of "An Act in relation to State Revenue Sharing with local government entities", approved July 31, 1969, as amended, and (f) the aggregate amount of monies theretofore transferred from the working cash fund to the educational fund or operations and maintenance fund in anticipation of the collection of such taxes or of the receipt of such other monies from other sources. The amount which the resolution shall direct the community college treasurer so to transfer in anticipation of the collection of taxes levied or to be received for any year, together with the aggregate amount of such anticipation tax warrants or notes theretofore drawn against such taxes and the amount of the interest accrued and estimated to accrue thereon, the amount estimated to be required to satisfy debt service and pension or retirement obligations, as set forth in Section 12 of "An Act in relation to State revenue sharing with local government entities", approved July 31, 1969, as amended, and the aggregate amount of such transfers theretofore made in anticipation of the collection of such taxes may not exceed 90% of the actual or estimated amount of such taxes extended or to be extended or to be received as set forth in the resolution. The amount which the resolution shall direct the community college treasurer so to transfer in anticipation of the receipt of monies to be derived for any year from the State, Federal government or from other sources, together with the aggregate amount theretofore transferred in anticipation of the receipt of any such monies, may not exceed the total amount which it is so estimated will be received from such source.

In addition, the community college district may, by proper resolution of the board following a public hearing set by the board or chairperson of the board, permanently transfer moneys from the working cash fund to the fund of the district most in need of the funds being transferred so long as the aggregate amount of transfers from the working cash fund in any fiscal year does not exceed 90% of the maximum amount credited to the working cash fund during the fiscal year. The public hearing required by this paragraph must be preceded by (i) at least one published notice over the name of the secretary of the board occurring at least 7 days and not more than 30 days prior to the hearing in a newspaper of general circulation within the community college district and (ii) posted notice over the name of the secretary of the board at least 48 hours before the hearing at the principal office of the board or at the building where the hearing is to be held if a principal office does not exist. Both notices shall set forth the time, date, place, and subject matter of the hearing.

Any community college district may also abolish its working cash fund upon the adoption of a resolution so providing and directing the transfer of any balance in such fund to the operating funds. If a community college district elects to abolish its working cash fund under this provision, it shall not establish another working cash fund, unless approved by the voters of the community college district in the manner provided by Article III of this Act. When monies are available in the working cash fund, they shall, unless the community college district has abolished its working cash fund pursuant to this Section, be transferred to the educational fund and operations and maintenance fund and disbursed for the payment of salaries and other educational purposes and operation and maintenance of facilities purposes expenses so as to avoid, whenever possible, the issuance of tax anticipation warrants.

Monies earned as interest from the investment of the working cash fund, or any portion thereof, may be transferred from the working cash fund to the educational fund or operations and maintenance fund of the district without any requirement of repayment to the working cash fund, upon the authority of the board by separate resolution directing the treasurer to make such transfer and stating the purpose therefor.

(Source: P.A. 85-1335.)

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