093_HB3144 LRB093 07402 NHT 07566 b 1 AN ACT relating to school construction. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Construction Law is amended by 5 changing Sections 5-5, 5-25, and 5-35 as follows: 6 (105 ILCS 230/5-5) 7 Sec. 5-5. Definitions. As used in this Article: 8 "Approved school construction bonds" mean bonds that were 9 approved by referendum after January 1, 1996 but prior to 10 January 1, 1998 as provided in Sections 19-2 through 19-7 of 11 the School Code to provide funds for the acquisition, 12 development, construction, reconstruction, rehabilitation, 13 improvement, architectural planning, and installation of 14 capital facilities consisting of buildings, structures, 15 durable-equipment, and land for educational purposes. 16 "Grant index" means a figure for each school district 17 equal to one minus the ratio of the district's equalized 18 assessed valuation per pupil in average daily attendance to 19 the equalized assessed valuation per pupil in average daily 20 attendance of the district located at the 90th percentile for 21 all districts of the same category. For the purpose of 22 calculating the grant index, school districts are grouped 23 into 2 categories, Category I and Category II. Category I 24 consists of elementary and unit school districts. The 25 equalized assessed valuation per pupil in average daily 26 attendance of each school district in Category I shall be 27 computed using its grades kindergarten through 8 average 28 daily attendance figure. A unit school district's Category I 29 grant index shall be used for projects or portions of 30 projects constructed for elementary school pupils. Category 31 II consists of high school and unit school districts. The -2- LRB093 07402 NHT 07566 b 1 equalized assessed valuation per pupil in average daily 2 attendance of each school district in Category II shall be 3 computed using its grades 9 through 12 average daily 4 attendance figure. A unit school district's Category II 5 grant index shall be used for projects or portions of 6 projects constructed for high school pupils. The changes 7 made by this amendatory Act of the 92nd General Assembly 8 apply to all grants made on or after the effective date of 9 this amendatory Act, provided that for grants not yet made on 10 the effective date of this amendatory Act but made in fiscal 11 year 2001 and for grants made in fiscal year 2002, the grant 12 index for a school district shall be the greater of (i) the 13 grant index as calculated under this Law on or after the 14 effective date of this amendatory Act or (ii) the grant index 15 as calculated under this Law before the effective date of 16 this amendatory Act. The grant index shall be no less than 17 0.500.35and no greater than 0.75 for each district; 18 provided that the grant index for districts whose equalized 19 assessed valuation per pupil in average daily attendance is 20 at the 99th percentile and above for all districts of the 21 same type shall be 0.00. 22 "School construction project" means the acquisition, 23 development, construction, reconstruction, rehabilitation, 24 improvement, architectural planning, and installation of 25 capital facilities consisting of buildings, structures, 26 durable equipment, and land for educational purposes. 27 "School maintenance project" means a project, other than 28 a school construction project, intended to provide for the 29 maintenance or upkeep of buildings or structures for 30 educational purposes, but does not include ongoing 31 operational costs. 32 (Source: P.A. 91-38, eff. 6-15-99; 92-168, eff. 7-26-01.) 33 (105 ILCS 230/5-25) -3- LRB093 07402 NHT 07566 b 1 Sec. 5-25. Eligibility and project standards. 2 (a) The State Board of Education shall establish 3 eligibility standards for school construction project grants 4 and debt service grants.These standards shall include5minimum enrollment requirements for eligibility for school6construction project grants of 200 students for elementary7districts, 200 students for high school districts, and 4008students for unit districts.The State Board of Education 9 shall approve a district's eligibility for a school 10 construction project grant or a debt service grant pursuant 11 to the established standards. 12 (b) The Capital Development Board shall establish 13 project standards for all school construction project grants 14 provided pursuant to this Article. These standards shall 15 include space and capacity standards as well as the 16 determination of recognized project costs that shall be 17 eligible for State financial assistance and enrichment costs 18 that shall not be eligible for State financial assistance. 19 The recognized project cost initially calculated by the 20 Capital Development Board shall establish the acceptable cost 21 of the eligible expenditures. If the bid price received by 22 the district from the various contractors for the eligible 23 expenditures is less than the bid estimate amount included in 24 this initial calculation, then the recognized project cost 25 shall be reduced by the amount of the difference. If the bid 26 price received by the district from the various contractors 27 for the eligible expenditures is greater than the bid 28 estimate amount included in this initial calculation, then 29 the recognized project cost shall be increased by the amount 30 of the difference. 31 (c) The State Board of Education and the Capital 32 Development Board shall not establish standards that 33 disapprove or otherwise establish limitations that restrict 34 the eligibility of a school district with a population -4- LRB093 07402 NHT 07566 b 1 exceeding 500,000 for a school construction project grant 2 based on the fact that any or all of the school construction 3 project grant will be used to pay debt service or to make 4 lease payments, as authorized by subsection (b) of Section 5 5-35 of this Law. 6 (Source: P.A. 90-548, eff. 1-1-98; 91-38, eff. 6-15-99.) 7 (105 ILCS 230/5-35) 8 Sec. 5-35. School construction project grant amounts; 9 permitted use; prohibited use. 10 (a) The product of the district's grant index and the 11 recognized project cost, as determined by the Capital 12 Development Board, for an approved school construction 13 project shall equal the amount of the grant the Capital 14 Development Board shall provide to the eligible district. 15 For those districts that have not received grants from the 16 Capital Development Board prior to the effective date of this 17 amendatory Act of the 93rd General Assembly, the district's 18 grant index may not be less than 0.50. The grant index shall 19 not be used in cases where the General Assembly and the 20 Governor approve appropriations designated for specifically 21 identified school district construction projects. 22 (b) In each fiscal year in which school construction 23 project grants are awarded, 20% of the total amount awarded 24 statewide shall be awarded to a school district with a 25 population exceeding 500,000, provided such district complies 26 with the provisions of this Article. 27 In addition to the uses otherwise authorized by this Law, 28 any school district with a population exceeding 500,000 is 29 authorized to use any or all of the school construction 30 project grants (i) to pay debt service, as defined in the 31 Local Government Debt Reform Act, on bonds, as defined in the 32 Local Government Debt Reform Act, issued to finance one or 33 more school construction projects and (ii) to the extent that -5- LRB093 07402 NHT 07566 b 1 any such bond is a lease or other installment or financing 2 contract between the school district and a public building 3 commission that has issued bonds to finance one or more 4 qualifying school construction projects, to make lease 5 payments under the lease. 6 (c) No portion of a school construction project grant 7 awarded by the Capital Development Board shall be used by a 8 school district for any on-going operational costs. 9 (Source: P.A. 90-548, eff. 1-1-98; 91-38, eff. 6-15-99.) 10 Section 99. Effective date. This Act takes effect on 11 July 1, 2003.