Cash Reserve Balance Disclosure Requirements During Levy and Budget Hearings

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Cash Reserve Balance Disclosure Requirements During Levy and Budget Hearings

Oct 24, 2022

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As school districts get closer to the adoption of their levies and, with most districts this year, their Truth in Taxation hearings, school districts should be aware of and remember the new requirements to disclose certain cash reserve balances. Section 17-1.3 of the School Code, created as part of Public Act 102-0895 and effective on May 23, 2022, requires this disclosure as part of the public hearings for certification of a school district budget and levy:

“[E]ach school district shall disclose to the public, at the public hearing at which the district certifies its budget and levy for the taxable year, the cash reserve balance of all funds held by the district related to its operational levy and, if applicable, any obligations secured by those funds.”

The statute does not mandate how schools are to disclose these cash reserve balances and, if applicable, obligations secured by said funds. School districts may disclose these balances in any manner at the public hearing, whether by projecting the balances on a screen, through a written document, or even orally, but should ensure that the minutes reflect said disclosure, including attaching any documents that were projected or provided.

The statute also does not specify the date of the cash reserve balances that must be reported. Thus, school districts could use their current balances, the balances from their most recent fund statements, balances from their treasurer’s reports or a similar report kept by the school district reasonably representing current balances.

For any questions or additional information about the fund disclosure requirements required by Section 17-1.3, please contact your Robbins Schwartz attorney.