08/11/2016

By: Brittany Flaherty Theis

Last week, Governor Rauner signed House Bill 5529, now Public Act 99-0713 (the “Act”). The Act amends Section 17-2A of the Illinois School Code, which pertains to interfund transfers. Section 17-2A authorizes school districts, by resolution, to transfer funds from: 1) the Educational Fund to the Operations and Maintenance Fund or the Transportation Fund, 2) the Operations and Maintenance Fund to the Educational Fund or the Transportation Fund, or 3) the Transportation Fund to the Educational Fund or the Operations and Maintenance Fund so long as the funds are transferred to meet one-time, non-recurring expenses and the prescribed notice and hearing requirements are met.

During the time period between July 1, 2003 and June 30, 2016, Section 17-2A waived the requirement that the transfers were limited to the purpose of meeting one-time, non-recurring expenses. The amendment extends the time period in which that requirement is waived to June 30, 2019, thereby giving school districts more flexibility to make transfers between funds.

The attorneys at Whitt Law regularly advise clients regarding the notice and hearing requirements for fund transfers, as well as prepare resolutions and notices. Please contact Whitt Law Attorney Brittany Flaherty Theis if you have questions regarding transfers of funds as authorized by the Illinois School Code and the options available to your school district.

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