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Gov. Quinn Approves New Employee Compensation Reporting Laws for School Districts, Some Higher Education Institutions

Higher Education K-12 Education

Governor Quinn recently signed two laws which require School Districts, public universities, and community colleges to report compensation information for certain employees, Public Acts 096-0434 and 096-0266. Both laws create the same new section to the School Code, yet each includes distinct requirements.

Public Act 096-0434 requires School Districts annually to make available an itemized salary compensation report for every employee in the district holding an administrative certificate and working in that capacity. The report must be posted on the District’s internet website, if any; presented at a school board meeting; and submitted to the district’s regional superintendent of schools. Public Act 096-0266 requires elementary and secondary school boards to issue annual reports to the Illinois State Board of Education (ISBE) that include the base salary and benefits of the district superintendent and all administrators and teachers employed by the School District. Public universities and community colleges must provide similar information under P.A. 096-0266 to the Illinois Board of Higher Education (IBHE) for the institution’s president, administrators and faculty members. The Acts are silent on the duty to update reports if circumstances change for an individual employee or the district (if, for instance, there is a change in personnel during the school year).

Each School District should begin preparing now to comply with the new reporting requirements. Districts must comply with Public Act 096-0434 by October 1, 2009, which includes presenting required information at a School Board meeting in October, and must comply with Public Act 096-0266 by July 1, 2010. ISBE has indicated that it expects to publish guidance on and provide a standardized form for compliance with Public Act 096-0266. We are currently developing a form that Districts can use to comply with Public Act 096-0434, which will also include all information needed to meet the ISBE reporting requirements under Public Act 096-0266. We will provide you these materials and continue to update you with more information regarding the interpretation of these laws as they become available.

The following chart provides a basic overview of the two laws, as well as the responsibilities of specific educational entities under each Public Act:

 

Public Act 096-0434

Public Act 096-0266

Party Responsible For Reporting

School Districts, including special charter districts, are responsible for reporting under this law.

School Districts are responsible for reporting under this law.

Boards of Trustees of public universities and community colleges are responsible for reporting under this law.

What Must Be Reported

Districts must report an itemized salary compensation report for certain employees, which must include, without limitation:

  • Base salary
  • Bonuses
  • Pension contributions
  • Retirement increases
  • The cost of health insurance
  • The cost of life insurance
  • Paid sick and vacation day payouts
  • Annuities
  • Any other form of compensation or income paid on behalf of the employee.

School Boards and Boards of Trustees must report base salary and benefits. School Boards must report the following, without limitation:

  • Base salary
  • Bonuses
  • Retirement enhancements
  • Vacation days
  • Sick days
  • Annuities.

Time Period For Reporting

The law does not specifically state whether Districts must report data from the prior or the current school year, and there is an argument that either the prior or current year’s information could be sought. We will continue to research this issue and provide further guidance as additional information becomes available.

The law does not specifically state whether School Boards and Boards of Trustees must report data from the prior or the current school year, and there is an argument that either the prior or current year’s information could be sought. We will continue to research this issue and provide further guidance as additional information becomes available.

Employees Subject To Reporting Requirement

Districts must report the required information for every employee in the district holding an administrative certificate and working in that capacity, including the district superintendent.

School Boards must report the required information for the district superintendent and all administrators and teachers employed by the school district.

The Boards of Trustees must report the required information for the president of the university and all administrators, faculty members, and instructors.

Reports To Be Provided To

The required information must be reported in three ways.

First, a District must post the report on its Internet Web site, if any.

Second, a District must present the report at a regular school board meeting, subject to applicable notice requirements.

Third, Districts must submit the report to the districts’ regional superintendent of schools, which shall make copies available to any individual requesting them.

The required information must be reported to ISBE.

The required information must be reported to IBHE.

Deadline For Reporting

Materials should be posted on the Web site, if any, and submitted to the district’s regional superintendent of schools on or before October 1 of each school year.

Although the law does not indicate at which board meeting the report must be presented, we advise that it should be presented at a board meeting in October.

Materials must be submitted on or before July 1 of each year.

Effective Date

August 13, 2009

January 1, 2010