No, funds collected from teachers’ union dues do not constitute “public funds” under the Public Funds Investment Act (Act). The term “public funds” refers to money belonging to a public agency. A “public agency” is any political corporation or subdivision of the State of Illinois. A teacher’s union is not a political corporation or subdivision of the state. Teachers’ unions are members-only, self-funded associations that do not exercise governmental authority. Consequently, a teachers’ union is not a public agency, and its funds are not public funds.

For resources related to our guidance, please see:

• Public Funds Investment Act, 30 ILCS 235/1 (“The words ‘public funds’, as used in this Act, mean current operating funds, special funds, interest and sinking funds, and funds of any kind or character belonging to or in the custody of any public agency.”)

• Public Funds Investment Act, 30 ILCS 235/1 (“The words ‘public agency’, as used in this Act, mean the State of Illinois, the various counties, townships, cities, towns, villages, school districts, educational service regions, special road districts, public water supply districts, fire protection districts, drainage districts, levee districts, sewer districts, housing authorities, the Illinois Bank Examiners’ Education Foundation, the Chicago Park District, and all other political corporations or subdivisions of the State of Illinois, now or hereafter created, whether herein specifically mentioned or not. This Act does not apply to the Illinois Prepaid Tuition Trust Fund, private funds collected by the Illinois Conservation Foundation, or pension funds or retirement systems established under the Illinois Pension Code, except as otherwise provided in that Code.”)