SRP-IMAGE-Logo

Bill aims to limit excessive school district cash reserves

By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com

SPRINGFIELD – The overall financial health of Illinois school districts has been improving in recent years, according to a recent state report, but a bill moving through the General Assembly seeks to rein in the amount of money some districts are saving.

Senate Bill 1994, which passed unanimously out of the Senate last week and now awaits action in the House, would put a cap on how much money school districts could hold in reserves. Districts that exceed it would be required to file a report with the state.

“They’re kind of like a nonprofit where, you know, money comes in and resources come in, and then it needs to be spent,” the bill’s sponsor Sen. Meg Loughran Cappel, D-Shorewood, said during an interview. “Like, yes, you need to have savings. Yes, those are good practices. But you can’t just be sitting on all this cash and then not doing anything with it.”

The Illinois State Board of Education publishes a report each year measuring the financial health of all 852 school districts in the state. The report looks at several factors such as their expenditure-to-revenue ratio, short-term and long-term debt, and how many days’ worth of cash on hand they keep.

ISBE uses those factors to generate an overall “financial profile” score for each district. Over the last seven years, the latest report noted, the statewide average score has risen steadily.

To receive ISBE’s highest rating, districts must keep the equivalent of 180 days of operating expenditures on hand. The agency also notes that bond underwriters and financial advisers typically recommend 144 to 180 days of operating expenditures.

According to the most recent report, which includes data from the fiscal year that ended June 30, 2021, 70 percent of districts had cash reserves of between 100 and 359 days of expenses. But 197 districts, or 23 percent, had reserves of 360 to 720 days, and 10 districts had reserves greater than 720 days.

The report does not identify which districts have those large reserves.

SB 1994 would require districts to calculate their three-year average operating expenses each year and report their cash on hand. If their cash reserves ever exceed 2.5 times their annual average, they would have to submit a plan to ISBE for how they intend to spend those reserves.

Districts would not be required to spend excess reserves, but only to submit the plan detailing how they intend to do so over the next three years.

Cappel said that limit was negotiated with superintendents and other officials involved in school district budgeting who had pushed back against the original version of the bill, which would have required districts to immediately spend down any reserves beyond 250 days of operating expenses.

She noted that there are many reasons why a district might build up large reserves. Some, she said, might save up so they can pay cash for capital expenses like a new security system or to build a new elementary school. Others might be bracing themselves for the possibility that their heating or air conditioning system might go out.

“I don’t want to stop any district, if they’ve got plans to build something that’s appropriate, you know, a kindergarten building or whatever,” she said. “Of course, we want you to be able to use that. So that’s kind of where this came from.”

 

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to more than 400 newspapers statewide, as well as hundreds of radio and TV stations. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

 

Leave a Comment





Local News

reporter worth welcome sign

Worth to honor victims of 9/11 tragedy

Spread the love

Spread the loveWorth public officials will mark a couple of events honoring veterans and will remember the tragedy that took place on Sept. 11, 2001. Mayor Mary Werner mentioned that the Marrs-Meyer American Legion Post 991 will take part in the opening ceremony of the Vietnam Veteran Wall on Thursday, Sept. 5, in Monee. “Members of the…

Francisca Renteria

Missing woman’s body found, service set for Saturday

Spread the love

Spread the loveA missing 85-year-old woman who had been missing since September 1 was found Wednesday afternoon deceased. Chicago police said Wednesday Francisca Renteria’s body was found after a massive search through the Garfield Ridge area. Sources said her body was found by Cook County Sheriff’s Police near an industrial building at 51st Street and…

Rhine Post Commander Charlie Johnson (left), and Auxiliary President Mike Maruszak (right) join the corn roasting crew. (Photos by Carol McGowan)

Annual Rhine VFW Post picnic called a success

Spread the love

Spread the love The annual post picnic at Rhine VFW Post in Garfield Ridge took place on September 1. Post Commander Charlie Johnson says it’s a big hit every year. “We have 125-150 people come every year. It’s our annual picnic for our members, their families, and our auxiliary. “We are one of the best…

The 31st annual A River Thru History – The Des Plaines Valley Rendezvous will be returning once again this year to Columbia Woods Forest Preserve in Willow Springs. (File photo)

Step Back in Time: 31st annual River Rendezvous returns to Willow Springs

Spread the love

Spread the loveThe 31st annual A River Thru History – The Des Plaines Valley Rendezvous will be returning once again this year to Columbia Woods Forest Preserve in Willow Springs for a weekend filled with historic facts, recreation and fun. Taking place at the intersection of Archer Avenue and Willow Springs Road, the event focuses…

CRR_NH

Clear-Ridge Reporter and NewsHound September 4, 2024

Spread the love

Spread the love

Richards senior Austin Synoga heads toward the end zone for a touchdown in the  Bulldogs’ 27-26 win over Crete-Monee on opening night. Photo by Jason Maholy

Football | Richards scores late to edge Crete-Monee

Spread the love

Spread the loveRichards senior Austin Synoga was short on words to describe the final 30-ish seconds of the Bulldogs’ season-opener against Crete-Monee. “It was unreal,” said Synoga, who played the hero in a 27-26 victory over the Warriors on Aug. 30 in Crete. “When I got the pick I didn’t even celebrate. I didn’t know…

St. Rita wide receiver Walter Jones prepares to take a hit after making a reception during the Mustangs’ season-opening win over Sandburg. Photo by Xavier Sanchez

Football | St. Rita rides big second half to win over Sandburg

Spread the love

Spread the loveRoughly 11 months ago, St. Rita running back Nick Herman got his first varsity start when he filled in for injured starter DJ Stewart in a pivotal Chicago Catholic League crossover against St. Laurence. Herman ran for 155 yards and a touchdown, helping the Mustangs to their only win — and clinching a…

volleyball

Girls Volleyball | Marist’s Berg, Berry earn all-tourney honors at Mizuno Crimson Classic

Spread the love

Spread the loveMarist, which was ranked 22nd in the nation by maxpreps.com, lost to Lincoln-Way East, 25-20, 25-17, in the semifinals of the Mizuno Crimson Classic at Plainfield North. The RedHawks recovered to beat Oak Park-River Forest in the third-place match. Sandburg finished 12th in the 32-team tournament, while Riverside-Brookfield was 14th and Nazareth 20th.…

volleyball

Gilrs Volleyball | McAuley tops St. Laurence again for Metea Valley-Oswego East title

Spread the love

Spread the loveMother McAuley and St. Laurence had to travel to Aurora to face each other for the first time this season. For the second consecutive season, the two area powers met in the Metea Valley/Oswego East Tournament championship, and for the second consecutive season, the Mighty Macs won, this time 25-21, 25-19, to repeat…

Chicago Christian's girls volleyball team split a pair of matches with Shepard in late August. Photo by Jeff Vorva

Girls Volleyball | Shepard and Chicago Christian split Heights battles

Spread the love

Spread the loveWho won the Battle of Palos Heights in girls volleyball this season? No one. Shepard traveled to Chicago Christian on Aug. 27 and the Astros pulled off a 25-22, 25-23 thriller. The two neighboring rivals squared off again on Aug. 31 in the quarterfinals of the Gold Bracket at the 13th Chicago Christian…

Neighbors

reporter worth welcome sign

Worth to honor victims of 9/11 tragedy

Spread the love

Spread the loveWorth public officials will mark a couple of events honoring veterans and will remember the tragedy that took place on Sept. 11, 2001. Mayor Mary Werner mentioned that the Marrs-Meyer American Legion Post 991 will take part in the opening ceremony of the Vietnam Veteran Wall on Thursday, Sept. 5, in Monee. “Members of the…

Francisca Renteria

Missing woman’s body found, service set for Saturday

Spread the love

Spread the loveA missing 85-year-old woman who had been missing since September 1 was found Wednesday afternoon deceased. Chicago police said Wednesday Francisca Renteria’s body was found after a massive search through the Garfield Ridge area. Sources said her body was found by Cook County Sheriff’s Police near an industrial building at 51st Street and…

Rhine Post Commander Charlie Johnson (left), and Auxiliary President Mike Maruszak (right) join the corn roasting crew. (Photos by Carol McGowan)

Annual Rhine VFW Post picnic called a success

Spread the love

Spread the love The annual post picnic at Rhine VFW Post in Garfield Ridge took place on September 1. Post Commander Charlie Johnson says it’s a big hit every year. “We have 125-150 people come every year. It’s our annual picnic for our members, their families, and our auxiliary. “We are one of the best…

The 31st annual A River Thru History – The Des Plaines Valley Rendezvous will be returning once again this year to Columbia Woods Forest Preserve in Willow Springs. (File photo)

Step Back in Time: 31st annual River Rendezvous returns to Willow Springs

Spread the love

Spread the loveThe 31st annual A River Thru History – The Des Plaines Valley Rendezvous will be returning once again this year to Columbia Woods Forest Preserve in Willow Springs for a weekend filled with historic facts, recreation and fun. Taking place at the intersection of Archer Avenue and Willow Springs Road, the event focuses…

CRR_NH

Clear-Ridge Reporter and NewsHound September 4, 2024

Spread the love

Spread the love

Richards senior Austin Synoga heads toward the end zone for a touchdown in the  Bulldogs’ 27-26 win over Crete-Monee on opening night. Photo by Jason Maholy

Football | Richards scores late to edge Crete-Monee

Spread the love

Spread the loveRichards senior Austin Synoga was short on words to describe the final 30-ish seconds of the Bulldogs’ season-opener against Crete-Monee. “It was unreal,” said Synoga, who played the hero in a 27-26 victory over the Warriors on Aug. 30 in Crete. “When I got the pick I didn’t even celebrate. I didn’t know…

St. Rita wide receiver Walter Jones prepares to take a hit after making a reception during the Mustangs’ season-opening win over Sandburg. Photo by Xavier Sanchez

Football | St. Rita rides big second half to win over Sandburg

Spread the love

Spread the loveRoughly 11 months ago, St. Rita running back Nick Herman got his first varsity start when he filled in for injured starter DJ Stewart in a pivotal Chicago Catholic League crossover against St. Laurence. Herman ran for 155 yards and a touchdown, helping the Mustangs to their only win — and clinching a…

volleyball

Girls Volleyball | Marist’s Berg, Berry earn all-tourney honors at Mizuno Crimson Classic

Spread the love

Spread the loveMarist, which was ranked 22nd in the nation by maxpreps.com, lost to Lincoln-Way East, 25-20, 25-17, in the semifinals of the Mizuno Crimson Classic at Plainfield North. The RedHawks recovered to beat Oak Park-River Forest in the third-place match. Sandburg finished 12th in the 32-team tournament, while Riverside-Brookfield was 14th and Nazareth 20th.…

volleyball

Gilrs Volleyball | McAuley tops St. Laurence again for Metea Valley-Oswego East title

Spread the love

Spread the loveMother McAuley and St. Laurence had to travel to Aurora to face each other for the first time this season. For the second consecutive season, the two area powers met in the Metea Valley/Oswego East Tournament championship, and for the second consecutive season, the Mighty Macs won, this time 25-21, 25-19, to repeat…

Chicago Christian's girls volleyball team split a pair of matches with Shepard in late August. Photo by Jeff Vorva

Girls Volleyball | Shepard and Chicago Christian split Heights battles

Spread the love

Spread the loveWho won the Battle of Palos Heights in girls volleyball this season? No one. Shepard traveled to Chicago Christian on Aug. 27 and the Astros pulled off a 25-22, 25-23 thriller. The two neighboring rivals squared off again on Aug. 31 in the quarterfinals of the Gold Bracket at the 13th Chicago Christian…