HB3530 Summary

• Allows school districts (except Article 34 districts) to increase their property tax extension limitation if the school board certifies to the county clerk that the district is under financial emergency during the current levy year.

• Defines "financial emergency" as cash reserves falling below 200% of the average annual budgets for the 5 preceding years.

• Permits increased extension equal to the greater of: (1) the normal extension limitation plus 50% of the difference between the normal limitation and actual tax increases in the 2 immediately preceding levy years, or (2) a rate approved by voters in a referendum.

• Requires the district's aggregate tax rate for either or both of the 2 immediately preceding levy years to have been less than the district's limiting rate to qualify for this exception.

• Takes effect immediately upon becoming law.