P.A. 102-0895 (effective May 23, 2022) enacted a new Section 17-1.3 of the School Code, which provides that each school district now must publicly disclose the cash reserve balance of all funds held by the school district related to its operational levy and, if applicable, any obligations secured by such funds. The new provision somewhat ambiguously requires these public disclosures to occur “at the public hearing at which the district certifies its budget and levy for the taxable year.” 105 ILCS 5/17-1.3.
A public hearing is required prior to a school board’s adoption of its budget pursuant to Section 17-1 of the School Code, and a public hearing may be required related to a school board’s adoption of its levy pursuant to the Truth in Taxation Law. Note, however, that any public hearing on the tax levy required under the Truth in Taxation Law “shall not coincide with the hearing on the budget.” 35 ILCS 200/18-70. Due to the ambiguity in the wording of the new requirement, school boards may want to make the new School Code cash reserve balance disclosures at not only the budget hearing, but also separately at the tax levy hearing or, if no tax levy hearing is held, at the meeting at which the tax levy is approved. School boards should consult with their legal counsel regarding interpretation of this law.
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