105 ILCS 5/17-1
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 17 - Budgets--Tax Rates--Tax Warrants

 (from Ch. 122, par. 17-1)Sec. 17-1. Annual budget. The board of education of each school  district under 500,000 inhabitants shall, within or before the first  quarter of each fiscal year, adopt and file with the State Board of Education an annual balanced budget which it deems  necessary to defray all necessary expenses and liabilities of the  district, and in such annual budget shall specify the objects and  purposes of each item and amount needed for each object or purpose.The budget shall be entered upon a School District Budget form prepared  and provided by the State Board of Education and therein shall contain  a statement of the cash on hand at the  beginning of the fiscal year, an estimate of the cash expected to be  received during such fiscal year from all sources, an estimate of the  expenditures contemplated for such fiscal year, and a statement of the  estimated cash expected to be on hand at the end of such year.  The  estimate of taxes to be received may be based upon the amount of actual  cash receipts that may reasonably be expected by the district during  such fiscal year, estimated from the experience of the district in prior  years and with due regard for other circumstances that may substantially  affect such receipts.  Nothing in this Section shall be construed as  requiring any district to change or preventing any district from  changing from a cash basis of financing to a surplus or deficit basis of  financing; or as requiring any district to change or preventing any  district from changing its system of accounting. The budget shall conform to the requirements adopted by the State Board of Education pursuant to Section 2-3.28 of this Code.To the extent that a school district's budget is not balanced, the district shall also adopt and file with the State Board of Education a deficit reduction plan to balance the district's budget within 3 years.  The deficit reduction plan must be filed at the same time as the budget, but the State Superintendent of Education may extend this deadline if the situation warrants.If, as the result of an audit performed in compliance with Section 3-7 of this Code, the resulting Annual Financial Report required to be submitted pursuant to Section 3-15.1 of this Code reflects a deficit as defined for purposes of the preceding paragraph, then the district shall, within 30 days after acceptance of such audit report, submit a deficit reduction plan.The board of education of each district shall fix a fiscal year  therefor.  If the beginning of the fiscal year of a district is  subsequent to the time that the tax levy due to be made in such  fiscal year shall be  made, then such annual budget shall be adopted prior to the time such  tax levy shall be made.   The failure by a board of education of any district to adopt an annual  budget, or to comply in any respect with the provisions of this Section, shall  not affect the validity of any tax levy of the district otherwise in  conformity with the law.  With respect to taxes levied either before, on, or  after the effective date of this amendatory Act of the 91st General Assembly,  (i) a tax levy is made  for the fiscal year in which the levy is due to be made regardless of which  fiscal year the proceeds of the levy are expended or are intended to be  expended, and (ii) except as otherwise provided by law, a board of education's  adoption of  an annual budget in conformity with this Section is not a prerequisite to the  adoption of a valid tax levy and is not a limit on the amount of the levy.Such budget shall be prepared in tentative form by some person or  persons designated by the board, and in such tentative form shall be  made conveniently available to public inspection for at least 30 days  prior to final action thereon.  At least 1 public hearing shall be held  as to such budget prior to final action thereon.  Notice of availability  for public inspection and of such public hearing shall be given by  publication in a newspaper published in such district, at least 30 days  prior to the time of such hearing.  If there is no newspaper published  in such district, notice of such public hearing shall be given by  posting notices thereof in 5 of the most public places in such district.  It shall be the duty of the secretary of such board to make such  tentative budget available to public inspection, and to arrange for such  public hearing.  The board may from time to time make transfers between  the various items in any fund not exceeding in the aggregate 10% of the  total of such fund as set forth in the budget. The board may from time  to time amend such budget by the same procedure as is herein provided  for its original adoption.Beginning July 1, 1976, the board of education, or regional  superintendent, or governing board responsible for the administration of  a joint agreement shall, by September 1 of each  fiscal year thereafter, adopt an annual budget for the joint agreement  in the same manner and subject to the same requirements as are provided  in this Section.The State Board of Education shall exercise powers and duties  relating to budgets as provided in Section 2-3.27 of this Code and shall require school districts to submit their annual budgets, deficit reduction plans, and other financial information, including revenue and expenditure reports and borrowing and interfund transfer plans, in such form and within the timelines designated by the State Board of Education.By fiscal year 1982 all school districts shall use the Program Budget  Accounting System.In the case of a school district receiving emergency State financial  assistance under Article 1B, the school board shall also be subject to the  requirements  established under Article 1B with respect to the annual budget.  (Source: P.A. 100-465, eff. 8-31-17.)