093_HB0430 LRB093 05739 NHT 05832 b 1 AN ACT respecting schools. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing 5 Section 18-8.05 as follows: 6 (105 ILCS 5/18-8.05) 7 Sec. 18-8.05. Basis for apportionment of general State 8 financial aid and supplemental general State aid to the 9 common schools for the 1998-1999 and subsequent school years. 10 (A) General Provisions. 11 (1) The provisions of this Section apply to the 12 1998-1999 and subsequent school years. The system of general 13 State financial aid provided for in this Section is designed 14 to assure that, through a combination of State financial aid 15 and required local resources, the financial support provided 16 each pupil in Average Daily Attendance equals or exceeds a 17 prescribed per pupil Foundation Level. This formula approach 18 imputes a level of per pupil Available Local Resources and 19 provides for the basis to calculate a per pupil level of 20 general State financial aid that, when added to Available 21 Local Resources, equals or exceeds the Foundation Level. The 22 amount of per pupil general State financial aid for school 23 districts, in general, varies in inverse relation to 24 Available Local Resources. Per pupil amounts are based upon 25 each school district's Average Daily Attendance as that term 26 is defined in this Section. 27 (2) In addition to general State financial aid, school 28 districts with specified levels or concentrations of pupils 29 from low income households are eligible to receive 30 supplemental general State financial aid grants as provided 31 pursuant to subsection (H). The supplemental State aid grants -2- LRB093 05739 NHT 05832 b 1 provided for school districts under subsection (H) shall be 2 appropriated for distribution to school districts as part of 3 the same line item in which the general State financial aid 4 of school districts is appropriated under this Section. 5 (3) To receive financial assistance under this Section, 6 school districts are required to file claims with the State 7 Board of Education, subject to the following requirements: 8 (a) Any school district which fails for any given 9 school year to maintain school as required by law, or to 10 maintain a recognized school is not eligible to file for 11 such school year any claim upon the Common School Fund. 12 In case of nonrecognition of one or more attendance 13 centers in a school district otherwise operating 14 recognized schools, the claim of the district shall be 15 reduced in the proportion which the Average Daily 16 Attendance in the attendance center or centers bear to 17 the Average Daily Attendance in the school district. A 18 "recognized school" means any public school which meets 19 the standards as established for recognition by the State 20 Board of Education. A school district or attendance 21 center not having recognition status at the end of a 22 school term is entitled to receive State aid payments due 23 upon a legal claim which was filed while it was 24 recognized. 25 (b) School district claims filed under this Section 26 are subject to Sections 18-9, 18-10, and 18-12, except as 27 otherwise provided in this Section. 28 (c) If a school district operates a full year 29 school under Section 10-19.1, the general State aid to 30 the school district shall be determined by the State 31 Board of Education in accordance with this Section as 32 near as may be applicable. 33 (d) (Blank). 34 (4) Except as provided in subsections (H) and (L), the -3- LRB093 05739 NHT 05832 b 1 board of any district receiving any of the grants provided 2 for in this Section may apply those funds to any fund so 3 received for which that board is authorized to make 4 expenditures by law. 5 School districts are not required to exert a minimum 6 Operating Tax Rate in order to qualify for assistance under 7 this Section. 8 (5) As used in this Section the following terms, when 9 capitalized, shall have the meaning ascribed herein: 10 (a) "Average Daily Attendance": A count of pupil 11 attendance in school, averaged as provided for in 12 subsection (C) and utilized in deriving per pupil 13 financial support levels. 14 (b) "Available Local Resources": A computation of 15 local financial support, calculated on the basis of 16 Average Daily Attendance and derived as provided pursuant 17 to subsection (D). 18 (c) "Corporate Personal Property Replacement 19 Taxes": Funds paid to local school districts pursuant to 20 "An Act in relation to the abolition of ad valorem 21 personal property tax and the replacement of revenues 22 lost thereby, and amending and repealing certain Acts and 23 parts of Acts in connection therewith", certified August 24 14, 1979, as amended (Public Act 81-1st S.S.-1). 25 (d) "Foundation Level": A prescribed level of per 26 pupil financial support as provided for in subsection 27 (B). 28 (e) "Operating Tax Rate": All school district 29 property taxes extended for all purposes, except Bond and 30 Interest, Summer School, Rent, Capital Improvement, and 31 Vocational Education Building purposes. 32 (B) Foundation Level. 33 (1) The Foundation Level is a figure established by the 34 State representing the minimum level of per pupil financial -4- LRB093 05739 NHT 05832 b 1 support that should be available to provide for the basic 2 education of each pupil in Average Daily Attendance. As set 3 forth in this Section, each school district is assumed to 4 exert a sufficient local taxing effort such that, in 5 combination with the aggregate of general State financial aid 6 provided the district, an aggregate of State and local 7 resources are available to meet the basic education needs of 8 pupils in the district. 9 (2) For the 1998-1999 school year, the Foundation Level 10 of support is $4,225. For the 1999-2000 school year, the 11 Foundation Level of support is $4,325. For the 2000-2001 12 school year, the Foundation Level of support is $4,425. 13 (3) For the 2001-2002 school year and each school year 14 thereafter, the Foundation Level of support is $4,560 or such 15 greater amount as may be established by law by the General 16 Assembly. 17 (C) Average Daily Attendance. 18 (1) For purposes of calculating general State aid 19 pursuant to subsection (E), an Average Daily Attendance 20 figure shall be utilized. The Average Daily Attendance 21 figure for formula calculation purposes shall be the monthly 22 average of the actual number of pupils in attendance of each 23 school district, as further averaged for the best 3 months of 24 pupil attendance for each school district. In compiling the 25 figures for the number of pupils in attendance, school 26 districts and the State Board of Education shall, for 27 purposes of general State aid funding, conform attendance 28 figures to the requirements of subsection (F). 29 (2) The Average Daily Attendance figures utilized in 30 subsection (E) shall be the requisite attendance data for the 31 school year immediately preceding the school year for which 32 general State aid is being calculated or the average of the 33 attendance data for the 3 preceding school years, whichever 34 is greater. The Average Daily Attendance figures utilized in -5- LRB093 05739 NHT 05832 b 1 subsection (H) shall be the requisite attendance data for the 2 school year immediately preceding the school year for which 3 general State aid is being calculated. 4 (D) Available Local Resources. 5 (1) For purposes of calculating general State aid 6 pursuant to subsection (E), a representation of Available 7 Local Resources per pupil, as that term is defined and 8 determined in this subsection, shall be utilized. Available 9 Local Resources per pupil shall include a calculated dollar 10 amount representing local school district revenues from local 11 property taxes and from Corporate Personal Property 12 Replacement Taxes, expressed on the basis of pupils in 13 Average Daily Attendance. 14 (2) In determining a school district's revenue from 15 local property taxes, the State Board of Education shall 16 utilize the equalized assessed valuation of all taxable 17 property of each school district as of September 30 of the 18 previous year. The equalized assessed valuation utilized 19 shall be obtained and determined as provided in subsection 20 (G). 21 (3) For school districts maintaining grades kindergarten 22 through 12, local property tax revenues per pupil shall be 23 calculated as the product of the applicable equalized 24 assessed valuation for the district multiplied by 3.00%, and 25 divided by the district's Average Daily Attendance figure. 26 For school districts maintaining grades kindergarten through 27 8, local property tax revenues per pupil shall be calculated 28 as the product of the applicable equalized assessed valuation 29 for the district multiplied by 2.30%, and divided by the 30 district's Average Daily Attendance figure. For school 31 districts maintaining grades 9 through 12, local property tax 32 revenues per pupil shall be the applicable equalized assessed 33 valuation of the district multiplied by 1.05%, and divided by 34 the district's Average Daily Attendance figure. -6- LRB093 05739 NHT 05832 b 1 (4) The Corporate Personal Property Replacement Taxes 2 paid to each school district during the calendar year 2 years 3 before the calendar year in which a school year begins, 4 divided by the Average Daily Attendance figure for that 5 district, shall be added to the local property tax revenues 6 per pupil as derived by the application of the immediately 7 preceding paragraph (3). The sum of these per pupil figures 8 for each school district shall constitute Available Local 9 Resources as that term is utilized in subsection (E) in the 10 calculation of general State aid. 11 (E) Computation of General State Aid. 12 (1) For each school year, the amount of general State 13 aid allotted to a school district shall be computed by the 14 State Board of Education as provided in this subsection. 15 (2) For any school district for which Available Local 16 Resources per pupil is less than the product of 0.93 times 17 the Foundation Level, general State aid for that district 18 shall be calculated as an amount equal to the Foundation 19 Level minus Available Local Resources, multiplied by the 20 Average Daily Attendance of the school district. 21 (3) For any school district for which Available Local 22 Resources per pupil is equal to or greater than the product 23 of 0.93 times the Foundation Level and less than the product 24 of 1.75 times the Foundation Level, the general State aid per 25 pupil shall be a decimal proportion of the Foundation Level 26 derived using a linear algorithm. Under this linear 27 algorithm, the calculated general State aid per pupil shall 28 decline in direct linear fashion from 0.07 times the 29 Foundation Level for a school district with Available Local 30 Resources equal to the product of 0.93 times the Foundation 31 Level, to 0.05 times the Foundation Level for a school 32 district with Available Local Resources equal to the product 33 of 1.75 times the Foundation Level. The allocation of 34 general State aid for school districts subject to this -7- LRB093 05739 NHT 05832 b 1 paragraph 3 shall be the calculated general State aid per 2 pupil figure multiplied by the Average Daily Attendance of 3 the school district. 4 (4) For any school district for which Available Local 5 Resources per pupil equals or exceeds the product of 1.75 6 times the Foundation Level, the general State aid for the 7 school district shall be calculated as the product of $218 8 multiplied by the Average Daily Attendance of the school 9 district. 10 (5) The amount of general State aid allocated to a 11 school district for the 1999-2000 school year meeting the 12 requirements set forth in paragraph (4) of subsection (G) 13 shall be increased by an amount equal to the general State 14 aid that would have been received by the district for the 15 1998-1999 school year by utilizing the Extension Limitation 16 Equalized Assessed Valuation as calculated in paragraph (4) 17 of subsection (G) less the general State aid allotted for the 18 1998-1999 school year. This amount shall be deemed a one 19 time increase, and shall not affect any future general State 20 aid allocations. 21 (F) Compilation of Average Daily Attendance. 22 (1) Each school district shall, by July 1 of each year, 23 submit to the State Board of Education, on forms prescribed 24 by the State Board of Education, attendance figures for the 25 school year that began in the preceding calendar year. The 26 attendance information so transmitted shall identify the 27 average daily attendance figures for each month of the school 28 year. Beginning with the general State aid claim form for 29 the 2002-2003 school year, districts shall calculate Average 30 Daily Attendance as provided in subdivisions (a), (b), and 31 (c) of this paragraph (1). 32 (a) In districts that do not hold year-round 33 classes, days of attendance in August shall be added to 34 the month of September and any days of attendance in June -8- LRB093 05739 NHT 05832 b 1 shall be added to the month of May. 2 (b) In districts in which all buildings hold 3 year-round classes, days of attendance in July and August 4 shall be added to the month of September and any days of 5 attendance in June shall be added to the month of May. 6 (c) In districts in which some buildings, but not 7 all, hold year-round classes, for the non-year-round 8 buildings, days of attendance in August shall be added to 9 the month of September and any days of attendance in June 10 shall be added to the month of May. The average daily 11 attendance for the year-round buildings shall be computed 12 as provided in subdivision (b) of this paragraph (1). To 13 calculate the Average Daily Attendance for the district, 14 the average daily attendance for the year-round buildings 15 shall be multiplied by the days in session for the 16 non-year-round buildings for each month and added to the 17 monthly attendance of the non-year-round buildings. 18 Except as otherwise provided in this Section, days of 19 attendance by pupils shall be counted only for sessions of 20 not less than 5 clock hours of school work per day under 21 direct supervision of: (i) teachers, or (ii) non-teaching 22 personnel or volunteer personnel when engaging in 23 non-teaching duties and supervising in those instances 24 specified in subsection (a) of Section 10-22.34 and paragraph 25 10 of Section 34-18, with pupils of legal school age and in 26 kindergarten and grades 1 through 12. 27 Days of attendance by tuition pupils shall be accredited 28 only to the districts that pay the tuition to a recognized 29 school. 30 (2) Days of attendance by pupils of less than 5 clock 31 hours of school shall be subject to the following provisions 32 in the compilation of Average Daily Attendance. 33 (a) Pupils regularly enrolled in a public school 34 for only a part of the school day may be counted on the -9- LRB093 05739 NHT 05832 b 1 basis of 1/6 day for every class hour of instruction of 2 40 minutes or more attended pursuant to such enrollment, 3 unless a pupil is enrolled in a block-schedule format of 4 80 minutes or more of instruction, in which case the 5 pupil may be counted on the basis of the proportion of 6 minutes of school work completed each day to the minimum 7 number of minutes that school work is required to be held 8 that day. 9 (b) Days of attendance may be less than 5 clock 10 hours on the opening and closing of the school term, and 11 upon the first day of pupil attendance, if preceded by a 12 day or days utilized as an institute or teachers' 13 workshop. 14 (c) A session of 4 or more clock hours may be 15 counted as a day of attendance upon certification by the 16 regional superintendent, and approved by the State 17 Superintendent of Education to the extent that the 18 district has been forced to use daily multiple sessions. 19 (d) A session of 3 or more clock hours may be 20 counted as a day of attendance (1) when the remainder of 21 the school day or at least 2 hours in the evening of that 22 day is utilized for an in-service training program for 23 teachers, up to a maximum of 5 days per school year of 24 which a maximum of 4 days of such 5 days may be used for 25 parent-teacher conferences, provided a district conducts 26 an in-service training program for teachers which has 27 been approved by the State Superintendent of Education; 28 or, in lieu of 4 such days, 2 full days may be used, in 29 which event each such day may be counted as a day of 30 attendance; and (2) when days in addition to those 31 provided in item (1) are scheduled by a school pursuant 32 to its school improvement plan adopted under Article 34 33 or its revised or amended school improvement plan adopted 34 under Article 2, provided that (i) such sessions of 3 or -10- LRB093 05739 NHT 05832 b 1 more clock hours are scheduled to occur at regular 2 intervals, (ii) the remainder of the school days in which 3 such sessions occur are utilized for in-service training 4 programs or other staff development activities for 5 teachers, and (iii) a sufficient number of minutes of 6 school work under the direct supervision of teachers are 7 added to the school days between such regularly scheduled 8 sessions to accumulate not less than the number of 9 minutes by which such sessions of 3 or more clock hours 10 fall short of 5 clock hours. Any full days used for the 11 purposes of this paragraph shall not be considered for 12 computing average daily attendance. Days scheduled for 13 in-service training programs, staff development 14 activities, or parent-teacher conferences may be 15 scheduled separately for different grade levels and 16 different attendance centers of the district. 17 (e) A session of not less than one clock hour of 18 teaching hospitalized or homebound pupils on-site or by 19 telephone to the classroom may be counted as 1/2 day of 20 attendance, however these pupils must receive 4 or more 21 clock hours of instruction to be counted for a full day 22 of attendance. 23 (f) A session of at least 4 clock hours may be 24 counted as a day of attendance for first grade pupils, 25 and pupils in full day kindergartens, and a session of 2 26 or more hours may be counted as 1/2 day of attendance by 27 pupils in kindergartens which provide only 1/2 day of 28 attendance. 29 (g) For children with disabilities who are below 30 the age of 6 years and who cannot attend 2 or more clock 31 hours because of their disability or immaturity, a 32 session of not less than one clock hour may be counted as 33 1/2 day of attendance; however for such children whose 34 educational needs so require a session of 4 or more clock -11- LRB093 05739 NHT 05832 b 1 hours may be counted as a full day of attendance. 2 (h) A recognized kindergarten which provides for 3 only 1/2 day of attendance by each pupil shall not have 4 more than 1/2 day of attendance counted in any one day. 5 However, kindergartens may count 2 1/2 days of attendance 6 in any 5 consecutive school days. When a pupil attends 7 such a kindergarten for 2 half days on any one school 8 day, the pupil shall have the following day as a day 9 absent from school, unless the school district obtains 10 permission in writing from the State Superintendent of 11 Education. Attendance at kindergartens which provide for 12 a full day of attendance by each pupil shall be counted 13 the same as attendance by first grade pupils. Only the 14 first year of attendance in one kindergarten shall be 15 counted, except in case of children who entered the 16 kindergarten in their fifth year whose educational 17 development requires a second year of kindergarten as 18 determined under the rules and regulations of the State 19 Board of Education. 20 (G) Equalized Assessed Valuation Data. 21 (1) For purposes of the calculation of Available Local 22 Resources required pursuant to subsection (D), the State 23 Board of Education shall secure from the Department of 24 Revenue the value as equalized or assessed by the Department 25 of Revenue of all taxable property of every school district, 26 together with (i) the applicable tax rate used in extending 27 taxes for the funds of the district as of September 30 of the 28 previous year and (ii) the limiting rate for all school 29 districts subject to property tax extension limitations as 30 imposed under the Property Tax Extension Limitation Law. 31 This equalized assessed valuation, as adjusted further by 32 the requirements of this subsection, shall be utilized in the 33 calculation of Available Local Resources. 34 (2) The equalized assessed valuation in paragraph (1) -12- LRB093 05739 NHT 05832 b 1 shall be adjusted, as applicable, in the following manner: 2 (a) For the purposes of calculating State aid under 3 this Section, with respect to any part of a school 4 district within a redevelopment project area in respect 5 to which a municipality has adopted tax increment 6 allocation financing pursuant to the Tax Increment 7 Allocation Redevelopment Act, Sections 11-74.4-1 through 8 11-74.4-11 of the Illinois Municipal Code or the 9 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 10 11-74.6-50 of the Illinois Municipal Code, no part of the 11 current equalized assessed valuation of real property 12 located in any such project area which is attributable to 13 an increase above the total initial equalized assessed 14 valuation of such property shall be used as part of the 15 equalized assessed valuation of the district, until such 16 time as all redevelopment project costs have been paid, 17 as provided in Section 11-74.4-8 of the Tax Increment 18 Allocation Redevelopment Act or in Section 11-74.6-35 of 19 the Industrial Jobs Recovery Law. For the purpose of the 20 equalized assessed valuation of the district, the total 21 initial equalized assessed valuation or the current 22 equalized assessed valuation, whichever is lower, shall 23 be used until such time as all redevelopment project 24 costs have been paid. 25 (b) The real property equalized assessed valuation 26 for a school district shall be adjusted by subtracting 27 from the real property value as equalized or assessed by 28 the Department of Revenue for the district an amount 29 computed by dividing the amount of any abatement of taxes 30 under Section 18-170 of the Property Tax Code by 3.00% 31 for a district maintaining grades kindergarten through 32 12, by 2.30% for a district maintaining grades 33 kindergarten through 8, or by 1.05% for a district 34 maintaining grades 9 through 12 and adjusted by an amount -13- LRB093 05739 NHT 05832 b 1 computed by dividing the amount of any abatement of taxes 2 under subsection (a) of Section 18-165 of the Property 3 Tax Code by the same percentage rates for district type 4 as specified in this subparagraph (b). 5 (3) For the 1999-2000 school year and each school year 6 thereafter, if a school district meets all of the criteria of 7 this subsection (G)(3), the school district's Available Local 8 Resources shall be calculated under subsection (D) using the 9 district's Extension Limitation Equalized Assessed Valuation 10 as calculated under this subsection (G)(3). 11 For purposes of this subsection (G)(3) the following 12 terms shall have the following meanings: 13 "Budget Year": The school year for which general 14 State aid is calculated and awarded under subsection (E). 15 "Base Tax Year": The property tax levy year used to 16 calculate the Budget Year allocation of general State 17 aid. 18 "Preceding Tax Year": The property tax levy year 19 immediately preceding the Base Tax Year. 20 "Base Tax Year's Tax Extension": The product of the 21 equalized assessed valuation utilized by the County Clerk 22 in the Base Tax Year multiplied by the limiting rate as 23 calculated by the County Clerk and defined in the 24 Property Tax Extension Limitation Law. 25 "Preceding Tax Year's Tax Extension": The product of 26 the equalized assessed valuation utilized by the County 27 Clerk in the Preceding Tax Year multiplied by the 28 Operating Tax Rate as defined in subsection (A). 29 "Extension Limitation Ratio": A numerical ratio, 30 certified by the County Clerk, in which the numerator is 31 the Base Tax Year's Tax Extension and the denominator is 32 the Preceding Tax Year's Tax Extension. 33 "Operating Tax Rate": The operating tax rate as 34 defined in subsection (A). -14- LRB093 05739 NHT 05832 b 1 If a school district is subject to property tax extension 2 limitations as imposed under the Property Tax Extension 3 Limitation Law, the State Board of Education shall calculate 4 the Extension Limitation Equalized Assessed Valuation of that 5 district. For the 1999-2000 school year, the Extension 6 Limitation Equalized Assessed Valuation of a school district 7 as calculated by the State Board of Education shall be equal 8 to the product of the district's 1996 Equalized Assessed 9 Valuation and the district's Extension Limitation Ratio. For 10 the 2000-2001 school year and each school year thereafter, 11 the Extension Limitation Equalized Assessed Valuation of a 12 school district as calculated by the State Board of Education 13 shall be equal to the product of the Equalized Assessed 14 Valuation last used in the calculation of general State aid 15 and the district's Extension Limitation Ratio. If the 16 Extension Limitation Equalized Assessed Valuation of a school 17 district as calculated under this subsection (G)(3) is less 18 than the district's equalized assessed valuation as 19 calculated pursuant to subsections (G)(1) and (G)(2), then 20 for purposes of calculating the district's general State aid 21 for the Budget Year pursuant to subsection (E), that 22 Extension Limitation Equalized Assessed Valuation shall be 23 utilized to calculate the district's Available Local 24 Resources under subsection (D). 25 (4) For the purposes of calculating general State aid 26 for the 1999-2000 school year only, if a school district 27 experienced a triennial reassessment on the equalized 28 assessed valuation used in calculating its general State 29 financial aid apportionment for the 1998-1999 school year, 30 the State Board of Education shall calculate the Extension 31 Limitation Equalized Assessed Valuation that would have been 32 used to calculate the district's 1998-1999 general State aid. 33 This amount shall equal the product of the equalized assessed 34 valuation used to calculate general State aid for the -15- LRB093 05739 NHT 05832 b 1 1997-1998 school year and the district's Extension Limitation 2 Ratio. If the Extension Limitation Equalized Assessed 3 Valuation of the school district as calculated under this 4 paragraph (4) is less than the district's equalized assessed 5 valuation utilized in calculating the district's 1998-1999 6 general State aid allocation, then for purposes of 7 calculating the district's general State aid pursuant to 8 paragraph (5) of subsection (E), that Extension Limitation 9 Equalized Assessed Valuation shall be utilized to calculate 10 the district's Available Local Resources. 11 (5) For school districts having a majority of their 12 equalized assessed valuation in any county except Cook, 13 DuPage, Kane, Lake, McHenry, or Will, if the amount of 14 general State aid allocated to the school district for the 15 1999-2000 school year under the provisions of subsection (E), 16 (H), and (J) of this Section is less than the amount of 17 general State aid allocated to the district for the 1998-1999 18 school year under these subsections, then the general State 19 aid of the district for the 1999-2000 school year only shall 20 be increased by the difference between these amounts. The 21 total payments made under this paragraph (5) shall not exceed 22 $14,000,000. Claims shall be prorated if they exceed 23 $14,000,000. 24 (H) Supplemental General State Aid. 25 (1) In addition to the general State aid a school 26 district is allotted pursuant to subsection (E), qualifying 27 school districts shall receive a grant, paid in conjunction 28 with a district's payments of general State aid, for 29 supplemental general State aid based upon the concentration 30 level of children from low-income households within the 31 school district. Supplemental State aid grants provided for 32 school districts under this subsection shall be appropriated 33 for distribution to school districts as part of the same line 34 item in which the general State financial aid of school -16- LRB093 05739 NHT 05832 b 1 districts is appropriated under this Section. For purposes of 2 this subsection (H), the term "Low-Income Concentration 3 Level" for school years before the 2003-2004 school year 4 shall be the low-income eligible pupil count from the most 5 recently available federal census divided by the Average 6 Daily Attendance of the school district. For the 2003-2004 7 school year and each school year thereafter, the term 8 "Low-Income Concentration Level" for the purposes of this 9 subsection (H) shall be the low-income eligible pupil count 10 from the most recently available federal census or the 11 low-income eligible pupil count determined by the Department 12 of Human Services based on those students who are eligible 13 for food stamps or Medicaid or both, whichever pupil count is 14 greater, divided by the Average Daily Attendance of the 15 school district. If, however, (i) the percentage decrease 16 from the 2 most recent federal censuses in the low-income 17 eligible pupil count of a high school district with fewer 18 than 400 students exceeds by 75% or more the percentage 19 change in the total low-income eligible pupil count of 20 contiguous elementary school districts, whose boundaries are 21 coterminous with the high school district, or (ii) a high 22 school district within 2 counties and serving 5 elementary 23 school districts, whose boundaries are coterminous with the 24 high school district, has a percentage decrease from the 2 25 most recent federal censuses in the low-income eligible pupil 26 count and there is a percentage increase in the total 27 low-income eligible pupil count of a majority of the 28 elementary school districts in excess of 50% from the 2 most 29 recent federal censuses, then the high school district's 30 low-income eligible pupil count from the earlier federal 31 census shall be the number used as the low-income eligible 32 pupil count for the high school district, for purposes of 33 this subsection (H), unless, for the 2003-2004 school year 34 and each school year thereafter, the low-income eligible -17- LRB093 05739 NHT 05832 b 1 pupil count determined by the Department of Human Services 2 based on those students who are eligible for food stamps or 3 Medicaid or both is greater. The changes made to this 4 paragraph (1) by Public Act 92-28 shall apply to supplemental 5 general State aid grants paid in fiscal year 1999 and in each 6 fiscal year thereafter and to any State aid payments made in 7 fiscal year 1994 through fiscal year 1998 pursuant to 8 subsection 1(n) of Section 18-8 of this Code (which was 9 repealed on July 1, 1998), and any high school district that 10 is affected by Public Act 92-28 is entitled to a 11 recomputation of its supplemental general State aid grant or 12 State aid paid in any of those fiscal years. This 13 recomputation shall not be affected by any other funding. 14 (2) Supplemental general State aid pursuant to this 15 subsection (H) shall be provided as follows for the 16 1998-1999, 1999-2000, and 2000-2001 school years only: 17 (a) For any school district with a Low Income 18 Concentration Level of at least 20% and less than 35%, 19 the grant for any school year shall be $800 multiplied by 20 the low income eligible pupil count. 21 (b) For any school district with a Low Income 22 Concentration Level of at least 35% and less than 50%, 23 the grant for the 1998-1999 school year shall be $1,100 24 multiplied by the low income eligible pupil count. 25 (c) For any school district with a Low Income 26 Concentration Level of at least 50% and less than 60%, 27 the grant for the 1998-99 school year shall be $1,500 28 multiplied by the low income eligible pupil count. 29 (d) For any school district with a Low Income 30 Concentration Level of 60% or more, the grant for the 31 1998-99 school year shall be $1,900 multiplied by the low 32 income eligible pupil count. 33 (e) For the 1999-2000 school year, the per pupil 34 amount specified in subparagraphs (b), (c), and (d) -18- LRB093 05739 NHT 05832 b 1 immediately above shall be increased to $1,243, $1,600, 2 and $2,000, respectively. 3 (f) For the 2000-2001 school year, the per pupil 4 amounts specified in subparagraphs (b), (c), and (d) 5 immediately above shall be $1,273, $1,640, and $2,050, 6 respectively. 7 (2.5) Supplemental general State aid pursuant to this 8 subsection (H) shall be provided as follows for the 2002-2003 9 school year and each school year thereafter: 10 (a) For any school district with a Low Income 11 Concentration Level of less than 10%, the grant for each 12 school year shall be $355 multiplied by the low income 13 eligible pupil count. 14 (b) For any school district with a Low Income 15 Concentration Level of at least 10% and less than 20%, 16 the grant for each school year shall be $675 multiplied 17 by the low income eligible pupil count. 18 (c) For any school district with a Low Income 19 Concentration Level of at least 20% and less than 35%, 20 the grant for each school year shall be $1,330 multiplied 21 by the low income eligible pupil count. 22 (d) For any school district with a Low Income 23 Concentration Level of at least 35% and less than 50%, 24 the grant for each school year shall be $1,362 multiplied 25 by the low income eligible pupil count. 26 (e) For any school district with a Low Income 27 Concentration Level of at least 50% and less than 60%, 28 the grant for each school year shall be $1,680 multiplied 29 by the low income eligible pupil count. 30 (f) For any school district with a Low Income 31 Concentration Level of 60% or more, the grant for each 32 school year shall be $2,080 multiplied by the low income 33 eligible pupil count. 34 (3) School districts with an Average Daily Attendance of -19- LRB093 05739 NHT 05832 b 1 more than 1,000 and less than 50,000 that qualify for 2 supplemental general State aid pursuant to this subsection 3 shall submit a plan to the State Board of Education prior to 4 October 30 of each year for the use of the funds resulting 5 from this grant of supplemental general State aid for the 6 improvement of instruction in which priority is given to 7 meeting the education needs of disadvantaged children. Such 8 plan shall be submitted in accordance with rules and 9 regulations promulgated by the State Board of Education. 10 (4) School districts with an Average Daily Attendance of 11 50,000 or more that qualify for supplemental general State 12 aid pursuant to this subsection shall be required to 13 distribute from funds available pursuant to this Section, no 14 less than $261,000,000 in accordance with the following 15 requirements: 16 (a) The required amounts shall be distributed to 17 the attendance centers within the district in proportion 18 to the number of pupils enrolled at each attendance 19 center who are eligible to receive free or reduced-price 20 lunches or breakfasts under the federal Child Nutrition 21 Act of 1966 and under the National School Lunch Act 22 during the immediately preceding school year. 23 (b) The distribution of these portions of 24 supplemental and general State aid among attendance 25 centers according to these requirements shall not be 26 compensated for or contravened by adjustments of the 27 total of other funds appropriated to any attendance 28 centers, and the Board of Education shall utilize funding 29 from one or several sources in order to fully implement 30 this provision annually prior to the opening of school. 31 (c) Each attendance center shall be provided by the 32 school district a distribution of noncategorical funds 33 and other categorical funds to which an attendance center 34 is entitled under law in order that the general State aid -20- LRB093 05739 NHT 05832 b 1 and supplemental general State aid provided by 2 application of this subsection supplements rather than 3 supplants the noncategorical funds and other categorical 4 funds provided by the school district to the attendance 5 centers. 6 (d) Any funds made available under this subsection 7 that by reason of the provisions of this subsection are 8 not required to be allocated and provided to attendance 9 centers may be used and appropriated by the board of the 10 district for any lawful school purpose. 11 (e) Funds received by an attendance center pursuant 12 to this subsection shall be used by the attendance center 13 at the discretion of the principal and local school 14 council for programs to improve educational opportunities 15 at qualifying schools through the following programs and 16 services: early childhood education, reduced class size 17 or improved adult to student classroom ratio, enrichment 18 programs, remedial assistance, attendance improvement, 19 and other educationally beneficial expenditures which 20 supplement the regular and basic programs as determined 21 by the State Board of Education. Funds provided shall not 22 be expended for any political or lobbying purposes as 23 defined by board rule. 24 (f) Each district subject to the provisions of this 25 subdivision (H)(4) shall submit an acceptable plan to 26 meet the educational needs of disadvantaged children, in 27 compliance with the requirements of this paragraph, to 28 the State Board of Education prior to July 15 of each 29 year. This plan shall be consistent with the decisions of 30 local school councils concerning the school expenditure 31 plans developed in accordance with part 4 of Section 32 34-2.3. The State Board shall approve or reject the plan 33 within 60 days after its submission. If the plan is 34 rejected, the district shall give written notice of -21- LRB093 05739 NHT 05832 b 1 intent to modify the plan within 15 days of the 2 notification of rejection and then submit a modified plan 3 within 30 days after the date of the written notice of 4 intent to modify. Districts may amend approved plans 5 pursuant to rules promulgated by the State Board of 6 Education. 7 Upon notification by the State Board of Education 8 that the district has not submitted a plan prior to July 9 15 or a modified plan within the time period specified 10 herein, the State aid funds affected by that plan or 11 modified plan shall be withheld by the State Board of 12 Education until a plan or modified plan is submitted. 13 If the district fails to distribute State aid to 14 attendance centers in accordance with an approved plan, 15 the plan for the following year shall allocate funds, in 16 addition to the funds otherwise required by this 17 subsection, to those attendance centers which were 18 underfunded during the previous year in amounts equal to 19 such underfunding. 20 For purposes of determining compliance with this 21 subsection in relation to the requirements of attendance 22 center funding, each district subject to the provisions 23 of this subsection shall submit as a separate document by 24 December 1 of each year a report of expenditure data for 25 the prior year in addition to any modification of its 26 current plan. If it is determined that there has been a 27 failure to comply with the expenditure provisions of this 28 subsection regarding contravention or supplanting, the 29 State Superintendent of Education shall, within 60 days 30 of receipt of the report, notify the district and any 31 affected local school council. The district shall within 32 45 days of receipt of that notification inform the State 33 Superintendent of Education of the remedial or corrective 34 action to be taken, whether by amendment of the current -22- LRB093 05739 NHT 05832 b 1 plan, if feasible, or by adjustment in the plan for the 2 following year. Failure to provide the expenditure 3 report or the notification of remedial or corrective 4 action in a timely manner shall result in a withholding 5 of the affected funds. 6 The State Board of Education shall promulgate rules 7 and regulations to implement the provisions of this 8 subsection. No funds shall be released under this 9 subdivision (H)(4) to any district that has not submitted 10 a plan that has been approved by the State Board of 11 Education. 12 (I) General State Aid for Newly Configured School Districts. 13 (1) For a new school district formed by combining 14 property included totally within 2 or more previously 15 existing school districts, for its first year of existence 16 the general State aid and supplemental general State aid 17 calculated under this Section shall be computed for the new 18 district and for the previously existing districts for which 19 property is totally included within the new district. If the 20 computation on the basis of the previously existing districts 21 is greater, a supplementary payment equal to the difference 22 shall be made for the first 4 years of existence of the new 23 district. 24 (2) For a school district which annexes all of the 25 territory of one or more entire other school districts, for 26 the first year during which the change of boundaries 27 attributable to such annexation becomes effective for all 28 purposes as determined under Section 7-9 or 7A-8, the general 29 State aid and supplemental general State aid calculated under 30 this Section shall be computed for the annexing district as 31 constituted after the annexation and for the annexing and 32 each annexed district as constituted prior to the annexation; 33 and if the computation on the basis of the annexing and 34 annexed districts as constituted prior to the annexation is -23- LRB093 05739 NHT 05832 b 1 greater, a supplementary payment equal to the difference 2 shall be made for the first 4 years of existence of the 3 annexing school district as constituted upon such annexation. 4 (3) For 2 or more school districts which annex all of 5 the territory of one or more entire other school districts, 6 and for 2 or more community unit districts which result upon 7 the division (pursuant to petition under Section 11A-2) of 8 one or more other unit school districts into 2 or more parts 9 and which together include all of the parts into which such 10 other unit school district or districts are so divided, for 11 the first year during which the change of boundaries 12 attributable to such annexation or division becomes effective 13 for all purposes as determined under Section 7-9 or 11A-10, 14 as the case may be, the general State aid and supplemental 15 general State aid calculated under this Section shall be 16 computed for each annexing or resulting district as 17 constituted after the annexation or division and for each 18 annexing and annexed district, or for each resulting and 19 divided district, as constituted prior to the annexation or 20 division; and if the aggregate of the general State aid and 21 supplemental general State aid as so computed for the 22 annexing or resulting districts as constituted after the 23 annexation or division is less than the aggregate of the 24 general State aid and supplemental general State aid as so 25 computed for the annexing and annexed districts, or for the 26 resulting and divided districts, as constituted prior to the 27 annexation or division, then a supplementary payment equal to 28 the difference shall be made and allocated between or among 29 the annexing or resulting districts, as constituted upon such 30 annexation or division, for the first 4 years of their 31 existence. The total difference payment shall be allocated 32 between or among the annexing or resulting districts in the 33 same ratio as the pupil enrollment from that portion of the 34 annexed or divided district or districts which is annexed to -24- LRB093 05739 NHT 05832 b 1 or included in each such annexing or resulting district bears 2 to the total pupil enrollment from the entire annexed or 3 divided district or districts, as such pupil enrollment is 4 determined for the school year last ending prior to the date 5 when the change of boundaries attributable to the annexation 6 or division becomes effective for all purposes. The amount 7 of the total difference payment and the amount thereof to be 8 allocated to the annexing or resulting districts shall be 9 computed by the State Board of Education on the basis of 10 pupil enrollment and other data which shall be certified to 11 the State Board of Education, on forms which it shall provide 12 for that purpose, by the regional superintendent of schools 13 for each educational service region in which the annexing and 14 annexed districts, or resulting and divided districts are 15 located. 16 (3.5) Claims for financial assistance under this 17 subsection (I) shall not be recomputed except as expressly 18 provided under this Section. 19 (4) Any supplementary payment made under this subsection 20 (I) shall be treated as separate from all other payments made 21 pursuant to this Section. 22 (J) Supplementary Grants in Aid. 23 (1) Notwithstanding any other provisions of this 24 Section, the amount of the aggregate general State aid in 25 combination with supplemental general State aid under this 26 Section for which each school district is eligible shall be 27 no less than the amount of the aggregate general State aid 28 entitlement that was received by the district under Section 29 18-8 (exclusive of amounts received under subsections 5(p) 30 and 5(p-5) of that Section) for the 1997-98 school year, 31 pursuant to the provisions of that Section as it was then in 32 effect. If a school district qualifies to receive a 33 supplementary payment made under this subsection (J), the 34 amount of the aggregate general State aid in combination with -25- LRB093 05739 NHT 05832 b 1 supplemental general State aid under this Section which that 2 district is eligible to receive for each school year shall be 3 no less than the amount of the aggregate general State aid 4 entitlement that was received by the district under Section 5 18-8 (exclusive of amounts received under subsections 5(p) 6 and 5(p-5) of that Section) for the 1997-1998 school year, 7 pursuant to the provisions of that Section as it was then in 8 effect. 9 (2) If, as provided in paragraph (1) of this subsection 10 (J), a school district is to receive aggregate general State 11 aid in combination with supplemental general State aid under 12 this Section for the 1998-99 school year and any subsequent 13 school year that in any such school year is less than the 14 amount of the aggregate general State aid entitlement that 15 the district received for the 1997-98 school year, the school 16 district shall also receive, from a separate appropriation 17 made for purposes of this subsection (J), a supplementary 18 payment that is equal to the amount of the difference in the 19 aggregate State aid figures as described in paragraph (1). 20 (3) (Blank). 21 (K) Grants to Laboratory and Alternative Schools. 22 In calculating the amount to be paid to the governing 23 board of a public university that operates a laboratory 24 school under this Section or to any alternative school that 25 is operated by a regional superintendent of schools, the 26 State Board of Education shall require by rule such reporting 27 requirements as it deems necessary. 28 As used in this Section, "laboratory school" means a 29 public school which is created and operated by a public 30 university and approved by the State Board of Education. The 31 governing board of a public university which receives funds 32 from the State Board under this subsection (K) may not 33 increase the number of students enrolled in its laboratory 34 school from a single district, if that district is already -26- LRB093 05739 NHT 05832 b 1 sending 50 or more students, except under a mutual agreement 2 between the school board of a student's district of residence 3 and the university which operates the laboratory school. A 4 laboratory school may not have more than 1,000 students, 5 excluding students with disabilities in a special education 6 program. 7 As used in this Section, "alternative school" means a 8 public school which is created and operated by a Regional 9 Superintendent of Schools and approved by the State Board of 10 Education. Such alternative schools may offer courses of 11 instruction for which credit is given in regular school 12 programs, courses to prepare students for the high school 13 equivalency testing program or vocational and occupational 14 training. A regional superintendent of schools may contract 15 with a school district or a public community college district 16 to operate an alternative school. An alternative school 17 serving more than one educational service region may be 18 established by the regional superintendents of schools of the 19 affected educational service regions. An alternative school 20 serving more than one educational service region may be 21 operated under such terms as the regional superintendents of 22 schools of those educational service regions may agree. 23 Each laboratory and alternative school shall file, on 24 forms provided by the State Superintendent of Education, an 25 annual State aid claim which states the Average Daily 26 Attendance of the school's students by month. The best 3 27 months' Average Daily Attendance shall be computed for each 28 school. The general State aid entitlement shall be computed 29 by multiplying the applicable Average Daily Attendance by the 30 Foundation Level as determined under this Section. 31 (L) Payments, Additional Grants in Aid and Other 32 Requirements. 33 (1) For a school district operating under the financial 34 supervision of an Authority created under Article 34A, the -27- LRB093 05739 NHT 05832 b 1 general State aid otherwise payable to that district under 2 this Section, but not the supplemental general State aid, 3 shall be reduced by an amount equal to the budget for the 4 operations of the Authority as certified by the Authority to 5 the State Board of Education, and an amount equal to such 6 reduction shall be paid to the Authority created for such 7 district for its operating expenses in the manner provided in 8 Section 18-11. The remainder of general State school aid for 9 any such district shall be paid in accordance with Article 10 34A when that Article provides for a disposition other than 11 that provided by this Article. 12 (2) (Blank). 13 (3) Summer school. Summer school payments shall be made 14 as provided in Section 18-4.3. 15 (M) Education Funding Advisory Board. 16 The Education Funding Advisory Board, hereinafter in this 17 subsection (M) referred to as the "Board", is hereby created. 18 The Board shall consist of 5 members who are appointed by the 19 Governor, by and with the advice and consent of the Senate. 20 The members appointed shall include representatives of 21 education, business, and the general public. One of the 22 members so appointed shall be designated by the Governor at 23 the time the appointment is made as the chairperson of the 24 Board. The initial members of the Board may be appointed any 25 time after the effective date of this amendatory Act of 1997. 26 The regular term of each member of the Board shall be for 4 27 years from the third Monday of January of the year in which 28 the term of the member's appointment is to commence, except 29 that of the 5 initial members appointed to serve on the 30 Board, the member who is appointed as the chairperson shall 31 serve for a term that commences on the date of his or her 32 appointment and expires on the third Monday of January, 2002, 33 and the remaining 4 members, by lots drawn at the first 34 meeting of the Board that is held after all 5 members are -28- LRB093 05739 NHT 05832 b 1 appointed, shall determine 2 of their number to serve for 2 terms that commence on the date of their respective 3 appointments and expire on the third Monday of January, 2001, 4 and 2 of their number to serve for terms that commence on the 5 date of their respective appointments and expire on the third 6 Monday of January, 2000. All members appointed to serve on 7 the Board shall serve until their respective successors are 8 appointed and confirmed. Vacancies shall be filled in the 9 same manner as original appointments. If a vacancy in 10 membership occurs at a time when the Senate is not in 11 session, the Governor shall make a temporary appointment 12 until the next meeting of the Senate, when he or she shall 13 appoint, by and with the advice and consent of the Senate, a 14 person to fill that membership for the unexpired term. If 15 the Senate is not in session when the initial appointments 16 are made, those appointments shall be made as in the case of 17 vacancies. 18 The Education Funding Advisory Board shall be deemed 19 established, and the initial members appointed by the 20 Governor to serve as members of the Board shall take office, 21 on the date that the Governor makes his or her appointment of 22 the fifth initial member of the Board, whether those initial 23 members are then serving pursuant to appointment and 24 confirmation or pursuant to temporary appointments that are 25 made by the Governor as in the case of vacancies. 26 The State Board of Education shall provide such staff 27 assistance to the Education Funding Advisory Board as is 28 reasonably required for the proper performance by the Board 29 of its responsibilities. 30 For school years after the 2000-2001 school year, the 31 Education Funding Advisory Board, in consultation with the 32 State Board of Education, shall make recommendations as 33 provided in this subsection (M) to the General Assembly for 34 the foundation level under subdivision (B)(3) of this Section -29- LRB093 05739 NHT 05832 b 1 and for the supplemental general State aid grant level under 2 subsection (H) of this Section for districts with high 3 concentrations of children from poverty. The recommended 4 foundation level shall be determined based on a methodology 5 which incorporates the basic education expenditures of 6 low-spending schools exhibiting high academic performance. 7 The Education Funding Advisory Board shall make such 8 recommendations to the General Assembly on January 1 of odd 9 numbered years, beginning January 1, 2001. 10 (N) (Blank). 11 (O) References. 12 (1) References in other laws to the various subdivisions 13 of Section 18-8 as that Section existed before its repeal and 14 replacement by this Section 18-8.05 shall be deemed to refer 15 to the corresponding provisions of this Section 18-8.05, to 16 the extent that those references remain applicable. 17 (2) References in other laws to State Chapter 1 funds 18 shall be deemed to refer to the supplemental general State 19 aid provided under subsection (H) of this Section. 20 (Source: P.A. 91-24, eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, 21 eff. 7-9-99; 91-111, eff. 7-14-99; 91-357, eff. 7-29-99; 22 91-533, eff. 8-13-99; 92-7, eff. 6-29-01; 92-16, eff. 23 6-28-01; 92-28, eff. 7-1-01; 92-29, eff. 7-1-01; 92-269, eff. 24 8-7-01; 92-604, eff. 7-1-02; 92-636, eff. 7-11-02; 92-651, 25 eff. 7-11-02; revised 7-26-02.) 26 Section 99. Effective date. This Act takes effect on 27 July 1, 2003.