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.
Local News
Retired St. Patricia pastor cleared of sexual abuse allegation
The Archdiocese of Chicago has cleared retired Father William Killeen of allegations of sexual abuse following an investigation. Father Killeen, who served as an associate pastor at St. Patricia Parish in Hickory Hills from 1982 to 1989, had been accused of abusing a minor over 40 years ago during his time at the parish. The…
LaGrange park district improvements advance with voter support
Voters approved a $13.86 million referendum for the Park District of La Grange on Tuesday, with 74 percent voting in favor. With 10 of 12 precincts reporting, 5,340 yes votes were recorded, compared to 1,898 no votes, according to the Cook County Clerk’s website. “We’re very excited,” said Jenny Bechtold, executive director of the Park…
Slain West Lawn CPD Officer Martinez shooting suspect charged
A 23-year-old man has been charged with the shooting death of Officer Enrique Martinez, a Hubbard High School graduate and West Lawn resident, who was killed in the line of duty on Chicago’s South Side. The fatal encounter has reignited citywide concerns over rising gun violence and its toll on both residents and law enforcement.…
Oak Lawn’s Howl-O-Ween Brings Thrills, Chills, and Family Fun
On a crisp October evening, the Wolfe Wildlife Refuge transformed into a magical, spooky wonderland as families gathered for Oak Lawn’s annual Howl-O-Ween celebration. Laughter mingled with the rustle of leaves, while costumed children raced from one activity station to the next, collecting treats and creating memories under the twilight sky. The Oak Lawn Park…
Presidential candidate Jill Stein advocates for People Power at Green Party Forum in Orland Park
Nonprofit organizations Al Hub and Students for Justice in Palestine (SJP) co-hosted a Q&A forum on Wednesday, Oct. 16, featuring Green Party presidential candidate Dr. Jill Stein. Held at an office building in Orland Park, located at 16101 S. 108th Avenue, the event showcased the Green Party’s focus on community-driven activism, branding itself as a…
Oak Lawn girls volleyball repeats at SSC Red champs
The Oak Lawn Community High School girls volleyball team opened the season steamrolling the competition. In fact, they repeated as champions at the Fenton Bison Blast-off Tournament, and didn’t even lose a single set before heading into their own Spartan Classic in late September. They finished fourth there, but they learned how to react when…
Wolniak Funeral Home celebrates Day of the Dead
The 102-year-old Wolniak Funeral Home has served generations of families throughout the years. Sitting on the southwest corner of 57th and Pulaski, the Polish Funeral Home is reaching out with what they are calling a “legacy of love to the community.” Respecting the traditions and heritage of the Hispanic members of the community, the folks…
Burbank police adopt a 12-hour work schedule
Burbank police will make permanent a trial program that moved them from working eight-hour tours to now working 12-hour shifts. The city approved the work schedule at its Oct. 23 city council meeting. The city confirmed the 12-hour work schedule memorandum of understanding with the Illinois Council of Police. This means that Burbank police officers,…
Drunken driver sentenced to 11 years in Summit trustee’s fatal crash
The driver responsible for the St. Patrick’s Day 2023 crash that killed former Summit village trustee Karen Wasko has been sentenced to 11 years in prison. Judge John “Terry” Gallagher handed down the sentence to Joel Velazco Jr., 23, during a hearing Thursday in Room 110 of the Bridgeview Courthouse. Wasko’s daughters, Nicole and Kelly,…
Bridgeview man faces felony charges in carjacking, armed robbery spree
Two men were charged Thursday with multiple felonies after a series of armed robberies and a carjacking in Chicago, authorities said. James Robinson, 21, of the 100 block of East 119th Street in Chicago, and Damian Macias, 21, of the 8800 block of South Harlem Avenue in Bridgeview, were arrested by the Citywide Vehicular Hijacking…
Neighbors
Retired St. Patricia pastor cleared of sexual abuse allegation
The Archdiocese of Chicago has cleared retired Father William Killeen of allegations of sexual abuse following an investigation. Father Killeen, who served as an associate pastor at St. Patricia Parish in Hickory Hills from 1982 to 1989, had been accused of abusing a minor over 40 years ago during his time at the parish. The…
LaGrange park district improvements advance with voter support
Voters approved a $13.86 million referendum for the Park District of La Grange on Tuesday, with 74 percent voting in favor. With 10 of 12 precincts reporting, 5,340 yes votes were recorded, compared to 1,898 no votes, according to the Cook County Clerk’s website. “We’re very excited,” said Jenny Bechtold, executive director of the Park…
Slain West Lawn CPD Officer Martinez shooting suspect charged
A 23-year-old man has been charged with the shooting death of Officer Enrique Martinez, a Hubbard High School graduate and West Lawn resident, who was killed in the line of duty on Chicago’s South Side. The fatal encounter has reignited citywide concerns over rising gun violence and its toll on both residents and law enforcement.…
Oak Lawn’s Howl-O-Ween Brings Thrills, Chills, and Family Fun
On a crisp October evening, the Wolfe Wildlife Refuge transformed into a magical, spooky wonderland as families gathered for Oak Lawn’s annual Howl-O-Ween celebration. Laughter mingled with the rustle of leaves, while costumed children raced from one activity station to the next, collecting treats and creating memories under the twilight sky. The Oak Lawn Park…
Presidential candidate Jill Stein advocates for People Power at Green Party Forum in Orland Park
Nonprofit organizations Al Hub and Students for Justice in Palestine (SJP) co-hosted a Q&A forum on Wednesday, Oct. 16, featuring Green Party presidential candidate Dr. Jill Stein. Held at an office building in Orland Park, located at 16101 S. 108th Avenue, the event showcased the Green Party’s focus on community-driven activism, branding itself as a…
Oak Lawn girls volleyball repeats at SSC Red champs
The Oak Lawn Community High School girls volleyball team opened the season steamrolling the competition. In fact, they repeated as champions at the Fenton Bison Blast-off Tournament, and didn’t even lose a single set before heading into their own Spartan Classic in late September. They finished fourth there, but they learned how to react when…
Wolniak Funeral Home celebrates Day of the Dead
The 102-year-old Wolniak Funeral Home has served generations of families throughout the years. Sitting on the southwest corner of 57th and Pulaski, the Polish Funeral Home is reaching out with what they are calling a “legacy of love to the community.” Respecting the traditions and heritage of the Hispanic members of the community, the folks…
Burbank police adopt a 12-hour work schedule
Burbank police will make permanent a trial program that moved them from working eight-hour tours to now working 12-hour shifts. The city approved the work schedule at its Oct. 23 city council meeting. The city confirmed the 12-hour work schedule memorandum of understanding with the Illinois Council of Police. This means that Burbank police officers,…
Drunken driver sentenced to 11 years in Summit trustee’s fatal crash
The driver responsible for the St. Patrick’s Day 2023 crash that killed former Summit village trustee Karen Wasko has been sentenced to 11 years in prison. Judge John “Terry” Gallagher handed down the sentence to Joel Velazco Jr., 23, during a hearing Thursday in Room 110 of the Bridgeview Courthouse. Wasko’s daughters, Nicole and Kelly,…
Bridgeview man faces felony charges in carjacking, armed robbery spree
Two men were charged Thursday with multiple felonies after a series of armed robberies and a carjacking in Chicago, authorities said. James Robinson, 21, of the 100 block of East 119th Street in Chicago, and Damian Macias, 21, of the 8800 block of South Harlem Avenue in Bridgeview, were arrested by the Citywide Vehicular Hijacking…