Cook County School Districts Subject to Township Trustees of Schools are Required to Take Swift Action to Appoint Board Member
Legislation passed earlier this month requires some school boards in Cook County to act swiftly in a changing landscape related to school treasurers. At issue are “township trustees of schools” offices and their treasurers – often referred to as the township treasurer’s office (“TTO”) – a public body that is elected and stands independent from school districts in many townships within Cook County. These TTOs are heavily involved in the processing and investment of school district funds and hold legal title to school district real estate.
The TTO historically had widespread relevance, with school districts across the state being subject to its jurisdiction. But through decades of legislative erosion, the TTO was abolished outside of Cook County and even within, school districts in many townships have been variously permitted to opt out of the TTO’s jurisdiction. Today, only about a dozen townships are subject to the jurisdiction of the TTO.
Recent legislation – Public Act 103-0790 – is again making significant changes to the township trustees of schools article within the School Code. Effective immediately, the board of trustees of the TTO will no longer be publicly elected. All current TTO trustees will serve out their current terms, but no new trustees will be elected. Instead, all school boards subject to the jurisdiction of the TTO must, no later than October 8, 2024, adopt a resolution appointing either a school board member or an administrator to serve as a trustee. The appointee can serve no more than two years, but thereafter may be renewed as the appointee by the school board. Once the October 8th deadline passes (or all member districts have made their appointments, if sooner), the new TTO trustees must reorganize the board.
The legislation makes another major change to the law governing trustees of schools and their TTO. School boards who are subject to the jurisdiction of the TTO can, by resolution approved by two-thirds of the school board, withdraw from the jurisdiction of the TTO with such withdrawal effective as of the subsequent July 1 (first day of the next fiscal year). If withdrawing from the TTO, the school board must promptly appoint a successor treasurer, who can be an employee of the school board or a third-party contractor. The board can even contract with a different TTO to provide treasurer services. Any appointed treasurer is subject to the bond requirements and other obligations of Article 8 of the School Code. The new legislation also provides requirements regarding the transfer of the books, records and property title from the TTO to the withdrawing school board.
We are prepared to assist your district with navigating this significant new law and the preparation of the mandatory resolutions. Don’t hesitate to reach out to one of us or your Franczek attorney for assistance.