IL HB0944

Amends Section 1A-8 of the School Code to establish that the State Superintendent may require school districts designated as on financial warning, financial watch status, or in serious financial difficulty to share financial information and accept state financial and technical assistance.

State Board of Education may certify a district in financial difficulty if it issues teacher/school orders for wages, issues tax anticipation warrants against future year taxes while current year warrants are outstanding, shows 2 consecutive years of expenditure excess over revenues in specified funds, or refuses to provide financial information to the State Superintendent.

Districts cannot be certified in financial difficulty solely due to county failure to distribute property taxes on time or state failure to make timely general state aid or mandated categorical payments, or if the district demonstrates the condition no longer exists.

Districts certified in financial difficulty must develop and submit a financial plan within 45 days; the State Board may issue directives to ensure compliance and can appoint a Financial Oversight Panel if the district fails to comply after notice and opportunity to be heard.

No bonds, notes, teacher orders, tax anticipation warrants, or other debt instruments may be issued by a district certified in financial difficulty until its financial plan is approved by the State Board of Education.

Financial profiles distributed in Fiscal Year 2009 and thereafter must be adjusted to reflect financial effects of the state's inability to make timely general state aid or mandated categorical payments.