Illinois 2023-2024 Regular Session

Illinois House Bill HB2155

Introduced
2/6/23  
Refer
2/7/23  
Introduced
2/6/23  
Refer
2/15/23  
Refer
2/7/23  
Report Pass
3/1/23  
Refer
2/15/23  
Refer
3/27/23  
Report Pass
3/1/23  

Caption

SCH CD-CENTRAL COMM BOND ISSUE

Impact

By enabling Central Community Unit School District 301 to issue these bonds, the bill offers significant financial leeway for the district. This can be pivotal for addressing capacity issues within existing school buildings or for other improvements as necessitated by increasing student enrollment. Moreover, the ability to issue bonds within the framework laid out by the bill is subject to voter approval at an election, thereby ensuring some level of community involvement in significant financial decisions. The maturity of the bond must not exceed 25 years, which aligns with typical municipal bond practices.

Summary

House Bill 2155, introduced by Rep. Jeff Keicher, amends the School Code in Illinois to specifically address the debt limitations for Central Community Unit School District 301. The bill empowers this school district to issue bonds amounting to a total not exceeding $195,000,000 under certain specified conditions. This legislation uniquely allows the debt incurred on these bonds to be exempt from the usual statutory debt limitations. This means that the financial impact of these bonds will not affect the district's calculation of its statutory indebtedness, thus providing much-needed flexibility in funding school infrastructure and other vital projects.

Contention

While the bill is designed to facilitate essential funding for educational purposes, it may also raise concerns regarding accountability and the long-term financial health of the district. Critics might argue that allowing such a significant amount of debt to be incurred could lead to financial strain in the future, especially if not properly managed or if expected growth does not materialize. The provision that exempts the bonds from typical debt classifications may provoke additional scrutiny from fiscal watchdogs and taxpayers who are wary of growing public debt. Thus, while the bill aims to provide solutions for pressing educational needs, it opens up avenues for debate regarding fiscal responsibility.

Companion Bills

No companion bills found.

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