SB 1994

Abstract

Amends the School Code. In provisions concerning custody of school funds, provides that each school district and school board must submit a quarterly report to the State Board of Education that contains information regarding (1) the amount of funds that each school district has in its reserves, (2) the amount of funds that each school district has in its investments, and (3) the number of days that each school district has cash on hand. Requires each school district and school board to publish and maintain the information in each quarterly report on its Internet website. Provides that any school district or school board reporting more than 250 days cash on hand shall spend any excess cash on hand funds beyond the 250 days on educational services, including hiring teachers, paraprofessionals, nurses, librarians, social workers, counselors, or psychologists. Effective immediately. Senate Floor Amendment No. 2 Deletes reference to: 105 ILCS 5/8-6 105 ILCS 5/34-74 Adds reference to: 105 ILCS 5/17-1.10 new Replaces everything after the enacting clause. Amends the School Code. Provides that, in the 2024-2025 school year and in each subsequent school year, each school board shall calculate the combined, annual average expenditures of its operational funds for the previous 3 fiscal years, as reported in the school district's most recently audited annual financial reports. Provides that the school board shall annually present a written report covering the annual average expenditures of its operational funds for the previous 3 fiscal years at a board meeting. Provides that if a school district's combined cash reserve balance of its operational funds, as most recently reported by the district, exceeds 2.5 times the annual average expenditures of its operational funds for the previous 3 fiscal years, the school board shall adopt and file with the State Board of Education a written operational funds reserve reduction plan to reduce, within 3 years, the district's combined cash reserve balance of its operational funds to an amount at or below 2.5 times the annual average expenditures of its operational funds for the previous 3 fiscal years. Effective immediately. House Committee Amendment No. 1 Replaces everything after the enacting clause. Reinserts the contents of the engrossed bill with the following changes. Provides that the amendatory language applies only to the school board of a school district that does not receive federal impact aid funding. Provides that the operational funds reserve reduction plan shall be adopted and filed with the State Board of Education by December 31. Provides that the State Board shall post any operational funds reserve reduction plans received on the State Board's Internet website. Effective immediately.