LM May.2021

A Word About Change Orders Unless you are using a Design-Build format for construction, change orders are a fact of life. It can be helpful to establish a construction committee from a subset of the school board, who are given authority by the school board to approve change orders up to a specified dollar amount. This serves as a mechanism for speedy approval of change orders so that a project does not face unnecessary delays. A superintendent can call two board members to obtain approval of a change order, then sign off on the change in short order. The entire board can ratify change orders at subsequent board meetings. Conclusion The information in this article is designed as an overview. School administrators launching into the process should consult their school district’s attorney and review pertinent regulations and laws for any specific changes or requirements. This is particularly important if transferring money between district funds, engaging in the referendum process, or engaging firms for architectural, engineering or construction projects. Facilities planning and construction projects can have some of the most long-lasting impact on a school district. With awareness of the myriad of options, proper planning and good community support, facilities improvements and construction projects can be truly rewarding work for school district leadership. Disclaimer: The authors of this article are practitioners and are not attorneys. School leaders should consult with their district’s legal counsel to ensure that the latest rules and regulations are followed throughout the process – particularly when engaging in referenda, transferring money between district funds, or hiring architects and engineers.

instead of facing a referendum going to the voters, boards of education choose a different course of action. More information regarding back door referenda can be found here . A “back door referendum” can be used for the following types of bonds: ● Working Cash Fund Bonds: Bonds to create or increase a working cash fund balance. ● Funding Bonds: Issued to pay teachers’ orders or claims including lease obligations that a School District cannot meet from current revenues. ● Alternative Revenue Bonds: Bonds issued under the Local Government Debt Reform Act with the general obligation of the School District serving as backup security for the bonds. Referendum with voters – will need community committee to promote the referendum. District can only share facts. Finally, the option exists for school districts to place a referendum on the ballot so their voters/taxpayers can decide upon funding for a project. It is most typical for a referendum to involve high-dollar projects. In some cases, depending upon the circumstances, a referendum might not involve a tax increase, based upon the structure of the financing of bonds. If a new, free-standing building is going to be built, then under Illinois law, this almost always requires that a referendum be placed before the voters regardless of whether a tax increase is involved. Putting an issue on the ballot before voters takes many years of planning ahead of time. It is important to have accurate and up-to-date information about the district’s facility needs, a long-term facilities plan and some general sense of the interest of the community in supporting what is likely going to be an increase in property taxes for many years. It is typical for community members to organize campaign committees (both supporting and not supporting the referendum). The district’s role is only to provide the facts of the ballot question.

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LM May 2021