Budget Regulations and Policies that Apply to the County
Rules and regulations apply to how Kane County budgets its revenue and expenses. Some of the important factors regulating how the County can budget are:
-Illinois Law:
Under the Illinois Counties Code (55 ILCS 5/6‑1001), every county board must adopt an annual budget before the fiscal year begins:
- This budget must include detailed estimates of current and prior-year revenues, expenditures, and fund balances.
- Once a budget is adopted, Kane County cannot spend or contract for more than what’s in the adopted budget unless there’s a two-thirds board vote for emergencies.
- The budget must balance each year, meaning the county cannot spend more than the revenue it takes in, plus any available reserves it holds.
- Minor transfers within funds are permitted, but major transfers (e.g., for major personnel costs or capital items) require a two-thirds vote of the county board.
-County Policy on Reserves:
Kane County maintains reserves (also referred to as fund balances) to ensure stable cash flow, to provide a cushion for unexpected shortfalls and emergencies, to protect the county’s credit rating, and to support responsible long-term planning.
Reserves should not be used for recurring operating costs. They should be used to cover one-time expenditures or to respond to unexpected financial events. How much should be held in reserve depends on the type of fund.
County Categorization of Funds:
Kane County manages its finances using a fund-based budget system to ensure transparency, accountability, and legal compliance. Revenue and expenses are both allocated into two broad categories of funds.
