Distributed via Email: May 28, 2010

ADJOURNMENT – BUT FOR HOW LONG?
LAWMAKERS LEAVE TOWN, LEAVE HOLE IN BUDGET

Both the Illinois House of Representatives and Senate sent their members home Thursday after approving most of the pieces of a Fiscal Year 2011 state budget. But no one expects lawmakers to make it through the summer before returning to the Capitol to finish their budget business.

Usually (if one still can remember what “usual” is in the Capitol), upon adjournment of the spring legislative session the members adjourn until the veto session in November. However, the House adjourned this week “until the call of the Speaker” and the Senate adjourned “until the call of the President”. This allows the leaders to call members back into session on short notice. The Senate could be back as early as next week.

As reported in the last Alliance Legislative Report 96-58, the House had approved several budget bills earlier this week and sent them to the Senate. The Senate Thursday approved most of those, but did not take action on the bill to allow the state to borrow money to make the Fiscal Year 2011 state pension payments. Without this provision, another $3.7 billion hole is created in the upcoming budget. By law, the state must make the pension payment, so without any further legislative changes, these funds would have to be taken out of other areas of the state budget. That’s why legislators are expected to return to Springfield at some point: to either pass the borrowing bill in the Senate, or to pass legislation in both chambers to allow the state to skip or delay the pension payment.

BUDGET ACTION

The appropriations bill (HB 859) was approved by the House earlier in the week and is on the way to the governor. The following bills were approved by the Senate on Thursday and will also make their way to the governor’s desk:

SB 377 (Kotowski, D-Park Ridge) establishes a tax amnesty program that is estimated to bring in $250 million to the State.

SB 3658 (Demuzio, D-Carlinville) establishes a sales tax “holiday” for those buying “back to school” supplies. It eliminates the 5% sales tax on school supplies and certain clothing from August 6-15.

SB 3660 (Schoenberg, D-Evanston) creates the “Emergency Budget Act of Fiscal Year 2011”which sets aside contingency reserves from the appropriations and allows the Governor to hold back funds, transfer funds, and allocate funds into agency budget line items as necessary. It also allows the state to securitize tobacco settlement funds estimated to bring in $1.2 billion to State coffers.

SB 3662 (Noland, D-Elgin) is the budget implementation act. In the School Code, it retains the per pupil foundation level at $6,119. However, if the appropriations are not sufficient to cover the costs of the foundation level, General State Aid (GSA) could be prorated.

BUDGET SOLUTION LEAVES SCHOOLS IN LIMBO

So a budget has passed and the appropriations level has been set, where does that leave school districts? Unfortunately, it is still hard to tell. We know that the funding for mandated categorical grants are insufficient to fully fund those costs and will be prorated. Though the foundation level is set at $6,119 per pupil, it is still unclear whether the appropriation for General State Aid will be sufficient to cover those costs. And other School Code changes will allow the Illinois State Board of Education (ISBE) to further prorate these payments. The other ISBE budget line items for smaller grants (reading improvement, bilingual, ADA block grant, etc.) were partially funded with a lump sum – allowing for the governor and the ISBE to determine the amounts for each line item. Again, leaving school districts in the unenviable position of not knowing the funding level for these budget items. The final word on specific funding amounts for school districts will have to come from the ISBE.

OTHER LEGISLATION APPROVED THIS WEEK

The following bills were approved by both chambers and will be sent to the governor for consideration:

SB 226 (Demuzio) establishes new requirements for principal certification. It allows the administrative certificate for principals to be issued by an institution of higher learning or a not-for-profit entity approved by the State Board of Education. The principal endorsement can only be bestowed onto someone with at least four years of teaching experience, except that the State Board of Education, through rules, can provide for someone with less than four years of teaching experience to receive the endorsement. And the bill sets new, more stringent standards for principal preparation programs and allows the State Board of Education to adopt rules for such.

SB 2093 (Forby, D-Benton) creates the Sales Tax and Revenue (STAR) Bonds program on 400 acres in Marion. The idea is to use sales tax revenue to subsidize a private business development designed to bring in hundreds of jobs and thousands of shoppers and tourists to the area.

HB 19 (Reitz, D-Steeleville) makes changes to the debt limits, bond issues, and school construction referendum requirements for Cahokia Community Unit School District 187.

HB 4647 (Davis, M., D-Chicago) requires the Anti-Crime Advisory Council, the Chicago Police Department, and the Chicago Board of Education to establish a hotline for the purpose of receiving anonymous phone calls for information that may prevent violence.

HB 5340 (Chapa La Via, D-Aurora) , in provisions concerning criminal history records checks, adds the Department of State Police or Statewide Sex Offender Database, or both (for clarification purposes) to the list of persons or entities to which the president of the school board or regional superintendent may transmit information concerning the record of convictions. It also requires student teachers to undergo a fingerprint-based criminal history records check and checks of the Statewide Sex Offender Database and Statewide Child Murderer and Violent Offender Against Youth Database.

HB 5483 (Kosel, R-New Lenox) amends the Open Meetings Act to require a public body to approve the minutes of its open meeting within 30 days after the meeting or at the second subsequent regular meeting. It also requires the minutes to be made available within 10 days (instead of 7 days) after their approval and to post the minutes on the website within 10 days (instead of 7days) after their approval. Finally, the bill states that any person shall be permitted an opportunity to address public officials at the meeting.

HB 5515 (Hoffman, D-Collinsville) includes transfers from the school district's life/safety fund to the Operations and Maintenance Fund, up to the $0.05 levy for local property taxes, for building repair work after providing the proper notice and public hearing.

HB 5836 (Golar, D-Chicago) makes changes regarding the self-administration of an asthma inhaler or epinephrine auto-injector in school.

HB 6241 (Black, R-Danville) , for manufactured homes purchased and installed after the effective date of this new law, provides that a manufactured home installed on a private property that is not in a mobile home park must be installed in accordance with the manufacturer’s instructions and assessed and taxed as real property.

HB 6419 (Crespo, D-Hoffman Estates) creates the School District Intergovernmental Cooperation

Renewable Energy Act to allow for school districts to form an agency for the purpose of providing electrical energy from wind sources.

This legislative report is written and edited by the lobbyists of the Illinois Association of School Boards to provide information to the members of the organizations that comprise the Statewide School Management Alliance.

Bill Text/Status: Illinois General Assembly

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