IL HB0999

School boards in districts with populations of 500,000 or less may establish lines of credit with banks or other financial institutions instead of issuing tax anticipation warrants, borrowing up to 85% of recently levied property taxes for educational, operations and maintenance, transportation, or other tax levy purposes.

Borrowed funds must be repaid exclusively from property tax revenues within 60 days of receipt, with interest rates not exceeding the maximum authorized by the Bond Authorization Act.

School boards may also anticipate current or next fiscal year revenues through lines of credit: 85% for current year revenues or 50% for next year revenues, to be repaid within 60 days of receipt.

Educational entities like special education cooperatives and regional superintendents of schools may establish lines of credit to anticipate state categorical or grant payments at the same borrowing percentages and repayment terms as school boards.

Prior to borrowing, boards must pass a resolution or executive order stating the borrowing need, amount, maximum interest rate, repayment date, and directing officials to set apart revenues for repayment.