Term
| Triple approval that must take place for Life Safety Projects/Fire Prevention Projects? |
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Definition
| Architect, Regional Office of Education, State Board of Education |
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Term
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Definition
| Bond Issue Notification Act: it says school districts must have a hearing for any bonds that do not require a referendum. |
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Term
| How are Fire and Safety Bonds sold? |
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Definition
| No referendum needed. A district must have "triple approval" stating a "life safety expenditure" to use the funds. |
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Term
| What is the max amount that can be levied in a tort fund? |
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Definition
| Tort funds are unlimited within "allowable expenditures." |
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Term
| List 3 funds where interest earned cannot be mored into other funds. |
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Definition
| Life safety fund, tort immunity fund, IMRF fund |
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Term
| When does the school budget have to be completed? |
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Definition
| The last day of the first fiscal quarter, Sept. 30. |
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Term
| What is a backdoor referendum? |
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Definition
| Requires a posting to be place in the newspaper ("the black box") by the district superintendent requesting a referendum to sell bonds. Upon this advertisement, 10% of the district voters have 30 days to bring a petition opposing the referendum. If no opposition, the school can sell the bonds. |
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Term
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Definition
| These bonds require a backdoor referendum and it has its own separate debt limitation (85% of last years ed fund extension, plus 85% of last years CPPRT). |
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Term
| What is CPPRT and how is it determined for a school district? |
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Definition
| Corporate Personal Property Replacement Tax: a tax PERCENTAGE established in 1979 that is still used today. It is a tax on corporate net income collected by the Dept. of Revenue and distributed to the schools. |
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Term
| Why Fire Prevention and Safety Bonds don't require voter approval? |
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Definition
| So districts can make the necessary repairs to keep buildings safe for kids. |
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Term
| What is the difference between abatement and abolishment in regards to working cash fund? |
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Definition
Abatement - transfer part, but not all of funds into other funds to pay expenses.
Abolishment - in June, funds may all be transferred out of the working cash fund into other funds, ie Ed fund. |
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Term
| What are the three legs of the Golden Triangle? |
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Definition
1 - Sell a Debt Certificate. Put the money in a savings account, does not qualify to be paid from bonded interest. It must be made immediately CALLABLE (can be paid off at any time).
2 - Sell a Funding Bond. This is usually used to pay off debt. it can be paid for by the bond and interest fund. You must have a backdoor referendum to buy this.
3 - Take the Funding Bond and pay off the debt certificate. This leaves you with $1 million in a savings account that it unrestricted. |
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Term
| What are the three ways a school district can raise money? |
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Definition
| Cut expenditures, raise tax rates, or sell bonds |
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Term
| Difference between a levy and an extension? |
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Definition
| A levy is the tax revenue that you ASK for. An extension is the actual tax revenue that you RECEIVE. |
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Term
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Definition
| Employee Assistance Program, started by districts for employees. They usually consist of free psychological counseling for anyone working in the district. Can be paid with the TORT fund. |
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Term
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Definition
| Districts with higher equalized assessed valuation generate more money with LESS taxes. |
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Term
| What are the three "nickel" levies? |
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Definition
| Working cash, life safety, lease |
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Term
| What is an aggregate levy? |
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Definition
| How much money you go last year, minus the Bond & Interest fund. If you increase it more than 5% you have a BINA hearing and "black box." |
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Term
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Definition
| About 75% of voters do not have children in public school. This makes is difficult for schools to pass a referendum. |
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Term
| What is the debt limitation for Working Cash Bonds? |
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Definition
| 85% of last years Ed fund extension, plus 85% of last years CPPRT. |
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Term
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Definition
| Debt Service Extension Base, a single number amount of principal and interest you owed in non-referendum bonds on the day tax caps became effective in your district. Unless raised by referendum, it is the permanent ceiling amount on the districts bond sales. |
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Term
| What is bonded debt limit? |
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Definition
| In a unit district, 13.8% of the district's equalized assessed valuation. In an elementary or high school district it's 6.9% of its EAV. |
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Term
| Formula for determining poverty grant for districts? |
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Definition
| Determined by the 3 year average of the DHS count divided by the ADA. DHS count includes kids in any of these 4 programs: food stamps, Medicaid, child care, or TANF. |
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Term
| Four financial incentives for districts to reorganize? |
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Definition
1. Teacher salary equalization
2. GSA equalization
3. Debt difference
4. $4,00 incentive to district for each full-time ceritfied teacher |
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Term
| What is a levy and when is it due? |
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Definition
| The amount of money you ASK for. Due to the county clerk the last Tuesday in December. |
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Term
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Definition
| Penalty districts pay for doing something that would help the district. Like reorganization can give up levy power, transportation funding, working cash, life safety, and lease fund. |
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Term
| What is the importance of Blase v. State of IL? |
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Definition
| in regards to IL Constitution Article X, that says the state will have the PRIMARY responsibility for funding schools. Which is not to be interpreted to mean the state will fund 51% of the ed costs, just that it is a goal. |
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Term
| School debt is limited to 13.8% of a district's EAV, but there are exceptions. List 3. |
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Definition
1. areas with super high growth in student population may borrow up to 15% of its EAV.
2. a referendum passed by 2/3 majority may allow a district the ability to go up to 15% of its EAV.
3. With a construction grant, the debt limit may exceed the amount the Capitol Development Board certified as the districts local share.
4. legislative exception |
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Term
| What do funding bonds pay? |
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Definition
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Term
| What is performance contracting? |
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Definition
| Using a company to update/repair current structure (lights) that will save money over time (energy bills). Schools may take up to 20 years to pay off such debt. |
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Term
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Definition
| Bonds limited to the amount of outstanding claims against the district which cannot be paid dues to insufficient funds. Recently used to cover liabilities of early retirement, payments to TRS insurance premiums, textbooks, and other ordinary operating expenditures for troubled districts. |
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Term
| How many school districts at the end of WWII? |
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Definition
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Term
| Name 7 of the 11 types of school consolidation |
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Definition
1. unit to unit consolidation
2. dual to dual consolidation
3. unit to dual consolidation
4. annexation
5. unit district conversion
6. dissolution
7. multi-unit conversion
8. high school deactivation
9. combined HS unit district
10. optional elementary unit district
11. co-operative high school attendance center |
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Term
| What is the Bond & Interest fund? |
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Definition
| Self-liquidating fund (pays for itself). It pays the principal and interest on the bonds that you sell. The only limit is the "bonded debt fund" which is 13.8% of your EAV. |
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Term
| What does IMRF stand for? |
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Definition
| IL Municipal Retirement Fund, for non-certified staff with 600 hours per year. Cannot move money from this fund. |
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Term
| "Rule of thumb" for budgets |
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Definition
| Over-estimate what you think you're going to spend, under-estimate what you think you're going to receive. |
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Term
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Definition
| Education Funding Advisory Board, appointed by gov. to recommend the foundation level for districts with high poverty levels. |
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Term
| 3 "C's" for cutting money? |
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Definition
| Cut staff, cut programs, close buildings |
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Term
| Explain the 3 formulas for GSA |
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Definition
1. Foundation formula: most common; districts have less than 93% of the foundation level available in local resources.
2. Alternative formula: districts that have at least 93% but less than 175% of the foundation level available in local revenue.
3. Flat grant: for elite districts that generate more than 175% of the foundation level and receive a flat grant. |
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Term
| Three main sources of revenue and who controls them? |
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Definition
1. Congress control fed. funding
2. GA controls the GSA
3. school board controls the local revenue |
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Term
| 3 types of transportation |
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Definition
| vocational, special ed, regular |
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Term
| List four of the special ed items on the budget |
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Definition
1. personnel
2. transportation
3. private tuition
4. extraordinary services
5. orphanage tuition |
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Term
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Definition
| A private school that is funded and run in a public district. Contracted and accountable to the district, not the state. Must get funding outside GSA, but state provides "seed money." |
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Term
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Definition
| Teacher health insurance supplement, pays for TRIP |
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Term
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Definition
| That the same amount of money is given to every kid. |
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Term
| How do schools fund free lunches? |
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Definition
- Dept. of Ag. buys commodities and gives to schools
- students and teachers buy lunches
- fed. assistance for each student, more for the free/reduced lunches |
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Term
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Definition
| If a district raises 5% or more than last year, they must hold a public hearing to approve the lecy and put a public notice in the paper ("black box"). |
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Term
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Definition
| In tax capped districts 1) they don't receive the true amount of EAV 2) the state does calculate GSA on that true EAV, not the capped EAV |
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Term
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Definition
| the minimum amount of money or services guaranteed to every student. |
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Term
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Definition
| Property Tax Extension Limitation Law, "tax caps" that limit how much a district can receive from their property taxes. |
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Term
| 3 most important funds a school district has in AFR |
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Definition
1. Ed fund, pays salaries
2. Building Operations and Maintenance, supplies, utilities, workers
3. Transportation fund, pays cost of transporting students
Money can be MOVED between these funds. |
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Term
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Definition
| Occurs when a district is promised an amount of money, but the state runs out. The district receives a smaller (prorated) proportion of the money they were promised. Maybe 90% of the 80% they were promised. |
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Term
| The nine funds schools have access to? |
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Definition
1. Ed
2. IMRF
3. Op. and Building M.
4. Fire and Safety
5. Working Cash
6. Transportation
7. Bond and Interest
8. Tort
9. Capital projects |
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Term
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Definition
| It's refinancing. They are often issued to restructure the district's current debt bruden |
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Term
| Tort judgment funding bonds |
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Definition
| Tort is a legal remedy. Bons issued w/o referendum for the payment of tort judgments against the district. |
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Term
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Definition
| Average daily attendance, calculated by last 3 years of the school year |
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