SB0514 Summary

• Extends bond authorization validity periods under the Local Government Debt Reform Act: standard bonds approved by referendum remain valid for 5 years (or 3 years after backdoor referendum petition period ends); Water Pollution Control and Public Water Supply Loan Program bonds remain valid for 7 years (or 5 years after petition period); specific referendums for Lake County forest preserve and Sandoval School District 501 remain valid for 10 years; Jackson County 1994 flooding prevention bonds remain valid for 25 years.

• Allows school districts with populations under 500,000 to transfer funds between Educational, Operations and Maintenance, and Transportation Funds for one-time, non-recurring expenses during normal periods, with exceptions for July 1, 2003 through June 30, 2019.

• Permits specific economically distressed school districts to transfer funds from any district fund (except Illinois Municipal Retirement Fund and Bonds and Interest Fund) to educational, operations, or transportation funds until July 1, 2016, and allows one elementary district to make one-time transfers of refinancing bond proceeds to Operations and Maintenance Fund.

• Authorizes specific Illinois school districts (including Oswego, Lincoln-Way, Rochester, Prairie Grove, Prairie Hill, Mascoutah, Wilmington, West Washington, Cahokia, Ridgeland, Hall, Lebanon, Monticello, Milford, North Shore, Sandoval, Bureau Valley, Paxton-Buckley-Loda, and Hillsboro) to issue bonds exceeding statutory debt limitations for capital improvements, with aggregate amounts ranging from $2 million to $450 million, subject to voter approval and specific conditions.

• Requires school districts to notify the State Board of Education before issuing debt that results in outstanding debt exceeding 75% of the applicable debt limit.