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90_HB2732
105 ILCS 5/19-1 from Ch. 122, par. 19-1
105 ILCS 230/5-15
105 ILCS 230/5-20
Amends the School Construction Law and the School Code.
Requires the State Board of Education to certify to a school
district that has been issued a grant entitlement for a
school construction project the amount of the project cost
that the district will be required to finance with non-grant
funds. Authorizes such a district, if it has no unused
bonding capacity or if its remaining bonding capacity is less
than the amount certified by the State Board of Education, to
by referendum incur additional indebtedness by the issuance
of school construction project bonds in an amount not
exceeding the project cost that the district must finance
with non-grant funds. Makes other related changes.
Effective immediately.
LRB9010311THpk
LRB9010311THpk
1 AN ACT relating to school construction projects, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The School Code is amended by changing
6 Section 19-1 as follows:
7 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
8 Sec. 19-1. Debt limitations of school districts.
9 (a) School districts shall not be subject to the
10 provisions limiting their indebtedness prescribed in "An Act
11 to limit the indebtedness of counties having a population of
12 less than 500,000 and townships, school districts and other
13 municipal corporations having a population of less than
14 300,000", approved February 15, 1928, as amended.
15 No school districts maintaining grades K through 8 or 9
16 through 12 shall become indebted in any manner or for any
17 purpose to an amount, including existing indebtedness, in the
18 aggregate exceeding 6.9% on the value of the taxable property
19 therein to be ascertained by the last assessment for State
20 and county taxes or, until January 1, 1983, if greater, the
21 sum that is produced by multiplying the school district's
22 1978 equalized assessed valuation by the debt limitation
23 percentage in effect on January 1, 1979, previous to the
24 incurring of such indebtedness.
25 No school districts maintaining grades K through 12 shall
26 become indebted in any manner or for any purpose to an
27 amount, including existing indebtedness, in the aggregate
28 exceeding 13.8% on the value of the taxable property therein
29 to be ascertained by the last assessment for State and county
30 taxes or, until January 1, 1983, if greater, the sum that is
31 produced by multiplying the school district's 1978 equalized
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1 assessed valuation by the debt limitation percentage in
2 effect on January 1, 1979, previous to the incurring of such
3 indebtedness.
4 Notwithstanding the provisions of any other law to the
5 contrary, in any case in which the voters of a school
6 district have approved a proposition for the issuance of
7 bonds of such school district at an election held prior to
8 January 1, 1979, and all of the bonds approved at such
9 election have not been issued, the debt limitation applicable
10 to such school district during the calendar year 1979 shall
11 be computed by multiplying the value of taxable property
12 therein, including personal property, as ascertained by the
13 last assessment for State and county taxes, previous to the
14 incurring of such indebtedness, by the percentage limitation
15 applicable to such school district under the provisions of
16 this subsection (a).
17 (b) Notwithstanding the debt limitation prescribed in
18 subsection (a) of this Section, additional indebtedness may
19 be incurred in an amount not to exceed the estimated cost of
20 acquiring or improving school sites or constructing and
21 equipping additional building facilities under the following
22 conditions:
23 (1) Whenever the enrollment of students for the
24 next school year is estimated by the board of education
25 to increase over the actual present enrollment by not
26 less than 35% or by not less than 200 students or the
27 actual present enrollment of students has increased over
28 the previous school year by not less than 35% or by not
29 less than 200 students and the board of education
30 determines that additional school sites or building
31 facilities are required as a result of such increase in
32 enrollment; and
33 (2) When the Regional Superintendent of Schools
34 having jurisdiction over the school district and the
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1 State Superintendent of Education concur in such
2 enrollment projection or increase and approve the need
3 for such additional school sites or building facilities
4 and the estimated cost thereof; and
5 (3) When the voters in the school district approve
6 a proposition for the issuance of bonds for the purpose
7 of acquiring or improving such needed school sites or
8 constructing and equipping such needed additional
9 building facilities at an election called and held for
10 that purpose. Notice of such an election shall state that
11 the amount of indebtedness proposed to be incurred would
12 exceed the debt limitation otherwise applicable to the
13 school district. The ballot for such proposition shall
14 state what percentage of the equalized assessed valuation
15 will be outstanding in bonds if the proposed issuance of
16 bonds is approved by the voters; or
17 (4) Notwithstanding the provisions of paragraphs
18 (1) through (3) of this subsection (b), if the school
19 board determines that additional facilities are needed to
20 provide a quality educational program and not less than
21 2/3 of those voting in an election called by the school
22 board on the question approve the issuance of bonds for
23 the construction of such facilities, the school district
24 may issue bonds for this purpose.
25 In no event shall the indebtedness incurred pursuant to
26 this subsection (b) and the existing indebtedness of the
27 school district exceed 15% of the value of the taxable
28 property therein to be ascertained by the last assessment for
29 State and county taxes, previous to the incurring of such
30 indebtedness or, until January 1, 1983, if greater, the sum
31 that is produced by multiplying the school district's 1978
32 equalized assessed valuation by the debt limitation
33 percentage in effect on January 1, 1979.
34 The indebtedness provided for by this subsection (b)
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1 shall be in addition to and in excess of any other debt
2 limitation.
3 (c) Notwithstanding the debt limitation prescribed in
4 subsection (a) of this Section, in any case in which a public
5 question for the issuance of bonds of a proposed school
6 district maintaining grades kindergarten through 12 received
7 at least 60% of the valid ballots cast on the question at an
8 election held on or prior to November 8, 1994, and in which
9 the bonds approved at such election have not been issued, the
10 school district pursuant to the requirements of Section
11 11A-10 may issue the total amount of bonds approved at such
12 election for the purpose stated in the question.
13 (d) Notwithstanding the debt limitation prescribed in
14 subsection (a) of this Section, a school district that meets
15 all the criteria set forth in paragraphs (1) and (2) of this
16 subsection (d) may incur an additional indebtedness in an
17 amount not to exceed $4,500,000, even though the amount of
18 the additional indebtedness authorized by this subsection
19 (d), when incurred and added to the aggregate amount of
20 indebtedness of the district existing immediately prior to
21 the district incurring the additional indebtedness authorized
22 by this subsection (d), causes the aggregate indebtedness of
23 the district to exceed the debt limitation otherwise
24 applicable to that district under subsection (a):
25 (1) The additional indebtedness authorized by this
26 subsection (d) is incurred by the school district through
27 the issuance of bonds under and in accordance with
28 Section 17-2.11a for the purpose of replacing a school
29 building which, because of mine subsidence damage, has
30 been closed as provided in paragraph (2) of this
31 subsection (d) or through the issuance of bonds under and
32 in accordance with Section 19-3 for the purpose of
33 increasing the size of, or providing for additional
34 functions in, such replacement school buildings, or both
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1 such purposes.
2 (2) The bonds issued by the school district as
3 provided in paragraph (1) above are issued for the
4 purposes of construction by the school district of a new
5 school building pursuant to Section 17-2.11, to replace
6 an existing school building that, because of mine
7 subsidence damage, is closed as of the end of the 1992-93
8 school year pursuant to action of the regional
9 superintendent of schools of the educational service
10 region in which the district is located under Section
11 3-14.22 or are issued for the purpose of increasing the
12 size of, or providing for additional functions in, the
13 new school building being constructed to replace a school
14 building closed as the result of mine subsidence damage,
15 or both such purposes.
16 (e) Notwithstanding the debt limitation prescribed in
17 subsection (a) of this Section, a school district that meets
18 all the criteria set forth in paragraphs (1) through (5) of
19 this subsection (e) may, without referendum, incur an
20 additional indebtedness in an amount not to exceed the lesser
21 of $5,000,000 or 1.5% of the value of the taxable property
22 within the district even though the amount of the additional
23 indebtedness authorized by this subsection (e), when incurred
24 and added to the aggregate amount of indebtedness of the
25 district existing immediately prior to the district incurring
26 that additional indebtedness, causes the aggregate
27 indebtedness of the district to exceed or increases the
28 amount by which the aggregate indebtedness of the district
29 already exceeds the debt limitation otherwise applicable to
30 that district under subsection (a):
31 (1) The State Board of Education certifies the
32 school district under Section 19-1.5 as a financially
33 distressed district.
34 (2) The additional indebtedness authorized by this
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1 subsection (e) is incurred by the financially distressed
2 district during the school year or school years in which
3 the certification of the district as a financially
4 distressed district continues in effect through the
5 issuance of bonds for the lawful school purposes of the
6 district, pursuant to resolution of the school board and
7 without referendum, as provided in paragraph (5) of this
8 subsection.
9 (3) The aggregate amount of bonds issued by the
10 financially distressed district during a fiscal year in
11 which it is authorized to issue bonds under this
12 subsection does not exceed the amount by which the
13 aggregate expenditures of the district for operational
14 purposes during the immediately preceding fiscal year
15 exceeds the amount appropriated for the operational
16 purposes of the district in the annual school budget
17 adopted by the school board of the district for the
18 fiscal year in which the bonds are issued.
19 (4) Throughout each fiscal year in which
20 certification of the district as a financially distressed
21 district continues in effect, the district maintains in
22 effect a gross salary expense and gross wage expense
23 freeze policy under which the district expenditures for
24 total employee salaries and wages do not exceed such
25 expenditures for the immediately preceding fiscal year.
26 Nothing in this paragraph, however, shall be deemed to
27 impair or to require impairment of the contractual
28 obligations, including collective bargaining agreements,
29 of the district or to impair or require the impairment of
30 the vested rights of any employee of the district under
31 the terms of any contract or agreement in effect on the
32 effective date of this amendatory Act of 1994.
33 (5) Bonds issued by the financially distressed
34 district under this subsection shall bear interest at a
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1 rate not to exceed the maximum rate authorized by law at
2 the time of the making of the contract, shall mature
3 within 40 years from their date of issue, and shall be
4 signed by the president of the school board and treasurer
5 of the school district. In order to issue bonds under
6 this subsection, the school board shall adopt a
7 resolution fixing the amount of the bonds, the date of
8 the bonds, the maturities of the bonds, the rates of
9 interest of the bonds, and their place of payment and
10 denomination, and shall provide for the levy and
11 collection of a direct annual tax upon all the taxable
12 property in the district sufficient to pay the principal
13 and interest on the bonds to maturity. Upon the filing
14 in the office of the county clerk of the county in which
15 the financially distressed district is located of a
16 certified copy of the resolution, it is the duty of the
17 county clerk to extend the tax therefor in addition to
18 and in excess of all other taxes at any time authorized
19 to be levied by the district. If bond proceeds from the
20 sale of bonds include a premium or if the proceeds of the
21 bonds are invested as authorized by law, the school board
22 shall determine by resolution whether the interest earned
23 on the investment of bond proceeds or the premium
24 realized on the sale of the bonds is to be used for any
25 of the lawful school purposes for which the bonds were
26 issued or for the payment of the principal indebtedness
27 and interest on the bonds. The proceeds of the bond sale
28 shall be deposited in the educational purposes fund of
29 the district and shall be used to pay operational
30 expenses of the district. This subsection is cumulative
31 and constitutes complete authority for the issuance of
32 bonds as provided in this subsection, notwithstanding any
33 other law to the contrary.
34 (f) Notwithstanding the provisions of subsection (a) of
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1 this Section or of any other law, bonds in not to exceed the
2 aggregate amount of $5,500,000 and issued by a school
3 district meeting the following criteria shall not be
4 considered indebtedness for purposes of any statutory
5 limitation and may be issued in an amount or amounts,
6 including existing indebtedness, in excess of any heretofore
7 or hereafter imposed statutory limitation as to indebtedness:
8 (1) At the time of the sale of such bonds, the
9 board of education of the district shall have determined
10 by resolution that the enrollment of students in the
11 district is projected to increase by not less than 7%
12 during each of the next succeeding 2 school years.
13 (2) The board of education shall also determine by
14 resolution that the improvements to be financed with the
15 proceeds of the bonds are needed because of the projected
16 enrollment increases.
17 (3) The board of education shall also determine by
18 resolution that the projected increases in enrollment are
19 the result of improvements made or expected to be made to
20 passenger rail facilities located in the school district.
21 (g) Notwithstanding the provisions of subsection (a) of
22 this Section or any other law, bonds in not to exceed an
23 aggregate amount of 25% of the equalized assessed value of
24 the taxable property of a school district and issued by a
25 school district meeting the criteria in paragraphs (i)
26 through (iv) of this subsection shall not be considered
27 indebtedness for purposes of any statutory limitation and may
28 be issued pursuant to resolution of the school board in an
29 amount or amounts, including existing indebtedness, in excess
30 of any statutory limitation of indebtedness heretofore or
31 hereafter imposed:
32 (i) The bonds are issued for the purpose of
33 constructing a new high school building to replace two
34 adjacent existing buildings which together house a single
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1 high school, each of which is more than 65 years old, and
2 which together are located on more than 10 acres and less
3 than 11 acres of property.
4 (ii) At the time the resolution authorizing the
5 issuance of the bonds is adopted, the cost of
6 constructing a new school building to replace the
7 existing school building is less than 60% of the cost of
8 repairing the existing school building.
9 (iii) The sale of the bonds occurs before July 1,
10 1997.
11 (iv) The school district issuing the bonds is a
12 unit school district located in a county of less than
13 70,000 and more than 50,000 inhabitants, which has an
14 average daily attendance of less than 1,500 and an
15 equalized assessed valuation of less than $29,000,000.
16 (h) Notwithstanding any other provisions of this Section
17 or the provisions of any other law, until January 1, 1998, a
18 community unit school district maintaining grades K through
19 12 may issue bonds up to an amount, including existing
20 indebtedness, not exceeding 27.6% of the equalized assessed
21 value of the taxable property in the district, if all of the
22 following conditions are met:
23 (i) The school district has an equalized assessed
24 valuation for calendar year 1995 of less than
25 $24,000,000;
26 (ii) The bonds are issued for the capital
27 improvement, renovation, rehabilitation, or replacement
28 of existing school buildings of the district, all of
29 which buildings were originally constructed not less than
30 40 years ago;
31 (iii) The voters of the district approve a
32 proposition for the issuance of the bonds at a referendum
33 held after March 19, 1996; and
34 (iv) The bonds are issued pursuant to Sections 19-2
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1 through 19-7 of this Code.
2 (i) Notwithstanding any other provisions of this Section
3 or the provisions of any other law, until January 1, 1998, a
4 community unit school district maintaining grades K through
5 12 may issue bonds up to an amount, including existing
6 indebtedness, not exceeding 27% of the equalized assessed
7 value of the taxable property in the district, if all of the
8 following conditions are met:
9 (i) The school district has an equalized assessed
10 valuation for calendar year 1995 of less than
11 $44,600,000;
12 (ii) The bonds are issued for the capital
13 improvement, renovation, rehabilitation, or replacement
14 of existing school buildings of the district, all of
15 which existing buildings were originally constructed not
16 less than 80 years ago;
17 (iii) The voters of the district approve a
18 proposition for the issuance of the bonds at a referendum
19 held after December 31, 1996; and
20 (iv) The bonds are issued pursuant to Sections 19-2
21 through 19-7 of this Code.
22 (j) Notwithstanding any other provisions of this Section
23 or the provisions of any other law, until January 1, 1999, a
24 community unit school district maintaining grades K through
25 12 may issue bonds up to an amount, including existing
26 indebtedness, not exceeding 27% of the equalized assessed
27 value of the taxable property in the district if all of the
28 following conditions are met:
29 (i) The school district has an equalized assessed
30 valuation for calendar year 1995 of less than
31 $140,000,000 and a best 3 months average daily attendance
32 for the 1995-96 school year of at least 2,800;
33 (ii) The bonds are issued to purchase a site and
34 build and equip a new high school, and the school
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1 district's existing high school was originally
2 constructed not less than 35 years prior to the sale of
3 the bonds;
4 (iii) At the time of the sale of the bonds, the
5 board of education determines by resolution that a new
6 high school is needed because of projected enrollment
7 increases;
8 (iv) At least 60% of those voting in an election
9 held after December 31, 1996 approve a proposition for
10 the issuance of the bonds; and
11 (v) The bonds are issued pursuant to Sections 19-2
12 through 19-7 of this Code.
13 (k) Notwithstanding the debt limitation prescribed in
14 subsection (a) of this Section or any other provisions of
15 this Section or of any other law, a school district that
16 meets all of the criteria set forth in paragraphs (i) through
17 (vi) of this subsection may incur additional indebtedness by
18 the issuance of bonds in an amount not exceeding the amount
19 certified by the State Board of Education to the school
20 district as provided in paragraph (iii) of this subsection,
21 even though the amount of the additional indebtedness so
22 authorized, when incurred and added to the aggregate amount
23 of indebtedness of the district existing immediately prior to
24 the district incurring the additional indebtedness authorized
25 by this subsection, causes the aggregate indebtedness of the
26 district to exceed the debt limitation otherwise applicable
27 by law to that district:
28 (i) The school district applies to the State Board
29 of Education for a school construction project grant and
30 submits a district facilities plan in support of its
31 application pursuant to Section 5-20 of the School
32 Construction Law.
33 (ii) The school district's application and
34 facilities plan are approved by, and the district
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1 receives a grant entitlement for a school construction
2 project issued by, the State Board of Education under the
3 School Construction Law.
4 (iii) The school district has exhausted its bonding
5 capacity or the unused bonding capacity of the district
6 is less than the amount certified by the State Board of
7 Education to the district under Section 5-15 of the
8 School Construction Law as the dollar amount of the
9 school construction project's cost that the district will
10 be required to finance with non-grant funds in order to
11 receive a school construction project grant under the
12 School Construction Law.
13 (iv) The bonds are issued for a "school
14 construction project", as that term is defined in Section
15 5-5 of the School Construction Law, in an amount that
16 does not exceed the dollar amount certified, as provided
17 in paragraph (iii) of this subsection (k), by the State
18 Board of Education to the school district under Section
19 5-15 of the School Construction Law.
20 (v) The voters of the district approve a
21 proposition for the issuance of the bonds at a referendum
22 held after the criteria specified in paragraphs (i) and
23 (iii) of this subsection (k) are met.
24 (vi) The bonds are issued pursuant to Sections 19-2
25 through 19-7 of the School Code.
26 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
27 89-698, eff. 1-14-97; 90-570, eff. 1-28-98.)
28 Section 10. The School Construction Law is amended by
29 changing Sections 5-15 and 5-20 as follows:
30 (105 ILCS 230/5-15)
31 Sec. 5-15. Grant entitlements. The State Board of
32 Education is authorized to issue grant entitlements for
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1 school construction projects and debt service and shall
2 determine the priority order for school construction project
3 grants to be made by the Capital Development Board. When
4 issuing a grant entitlement for a school construction
5 project, the State Board of Education, as a part of that
6 entitlement, shall certify to the district receiving the
7 entitlement the dollar amount of the school construction
8 project's cost that the district will be required to finance
9 with non-grant funds in order to qualify to receive a school
10 construction project grant under this Article from the
11 Capital Development Board.
12 (Source: P.A. 90-548, eff. 1-1-98.)
13 (105 ILCS 230/5-20)
14 Sec. 5-20. Grant application; district facilities plan.
15 School districts shall apply to the State Board of Education
16 for school construction project grants and debt service
17 grants. Districts filing grant applications shall submit to
18 the State Board a district facilities plan that shall
19 include, but not be limited to, an assessment of present and
20 future district facility needs as required by present and
21 anticipated educational programming, the availability of
22 local financial resources including current revenues, fund
23 balances, and unused bonding capacity, a fiscal plan for
24 meeting present and anticipated debt service obligations, and
25 a maintenance plan and schedule that contain necessary
26 assurances that new, renovated, and existing facilities are
27 being or will be properly maintained. If a district that
28 applies for a school construction project grant has no unused
29 bonding capacity or if its unused bonding capacity may be
30 less than the portion of the cost of the proposed school
31 construction project that the district would be required to
32 finance with non-grant funds, the application and facilities
33 plan submitted by the district shall set forth the estimated
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1 amount of the project's cost that the district proposes to
2 finance by the issuance of bonds under subsection (k) of
3 Section 19-1 of the School Code. The State Board of Education
4 shall review and approve district facilities plans prior to
5 issuing grant entitlements. Each district that receives a
6 grant entitlement shall annually update its district
7 facilities plan and submit the revised plan to the State
8 Board for approval.
9 (Source: P.A. 90-548, eff. 1-1-98.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.