Annual Legal Budget (105 ILCS 5/17-1)
Each year the School Board must create a budget which reveals the District’s income and expenses. The Districts must make its annual budget available for public inspection/review. The budget is the School District’s plan for how it will allocate and expend revenue dollars.
The tentative budget must be displayed at least 30 days prior to its adoption. In addition, a public hearing must be held prior to the adoption of the budget. The District must publish a legal notice indicating availability for the public to inspect the tentative budget, including the date, time, and location of the public hearing.
Public statute requires that the District’s budget be balanced, and if not balanced, where expenditures exceed revenues, the School District must adopt and file a deficit reduction plan with the State to balance the District’s budget within 3 years.
Annual Financial Report (105 ILCS 5/3-7)
Each school district shall, as of June 30 of each year, cause an audit of its accounts to be made by a person lawfully qualified to practice public accounting as regulated by the Illinois Public Accounting Act. Such audit shall include financial statements of the district applicable to the type of records required by other sections of this Act and in addition shall set forth the scope of audit and shall include the professional opinion signed by the auditor, or if such an opinion is denied by the auditor, shall set forth the reasons for such denial. Each school district shall on or before October 15 of each year, submit an original copy of such audit to the regional superintendent of schools in the educational service region having jurisdiction in which case the in the regional superintendent of school shall be relieved of the responsibility in regard to the accounts of the school district.
District's Financial Profile (105 ILCS 5/1A-8)
Pursuant to the authority provided by Section 1A-8 of the School Code, the Illinois State Board of Education has developed the “School District Financial Profile” system to help monitor the finances of school districts and to identify which are healthy or are moving toward financial difficulty. The Financial Profile designation is just one piece of information that school districts and communities should use to judge the financial management and condition of their school district. The profile score is created by using five indicators of financial performance: Fund Balance to Revenue Ratio, Expenditures to Revenues Ratio, Days Cash on Hand, Percent of Short-term Borrowing Available, and Percent of Long-term Debt Remaining.
Property Taxes – Levy (105 ILCS 5/17 & 35 ILCS 200/18)
School Boards are required to ascertain, as near as practicable, annually, how much money must be raised by special tax for the educational purposes for the next ensuing year. The following are special permissible tax levies: for educational purposes; for operational and maintenance purposes; for transportation purposes; for working cash fund; for municipal retirement purposes; for social security purposes; for fire prevention, safety, energy conservation, disabled accessibility, school security and specified repair purposes; for tort immunity purposes; for special education purposes; for leasing of education facilities or computer technology or both, and temporary relocation expense purposes; and bond purposes. These amounts must be certified and filed with the County Clerk on or before the last Tuesday in December annually. An estimate of taxes to be levied is required not less than 20 days prior to the adoption of its aggregate levy.