093_HB3908 LRB093 13415 RCE 18727 b 1 AN ACT concerning 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 13415 RCE 18727 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 13415 RCE 18727 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 13415 RCE 18727 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 2002-2003 school 14 year, the Foundation Level of support is $4,560. 15 (4) For the 2003-2004 school year and each school year 16 thereafter, the Foundation Level of support is $4,810 or such 17 greater amount as may be established by law by the General 18 Assembly. 19 (C) Average Daily Attendance. 20 (1) For purposes of calculating general State aid 21 pursuant to subsection (E), an Average Daily Attendance 22 figure shall be utilized. The Average Daily Attendance 23 figure for formula calculation purposes shall be the monthly 24 average of the actual number of pupils in attendance of each 25 school district, as further averaged for the best 3 months of 26 pupil attendance for each school district. In compiling the 27 figures for the number of pupils in attendance, school 28 districts and the State Board of Education shall, for 29 purposes of general State aid funding, conform attendance 30 figures to the requirements of subsection (F). 31 (2) The Average Daily Attendance figures utilized in 32 subsection (E) shall be the requisite attendance data for the 33 school year immediately preceding the school year for which 34 general State aid is being calculated or the average of the -5- LRB093 13415 RCE 18727 b 1 attendance data for the 3 preceding school years, whichever 2 is greater. The Average Daily Attendance figures utilized in 3 subsection (H) shall be the requisite attendance data for the 4 school year immediately preceding the school year for which 5 general State aid is being calculated. 6 (D) Available Local Resources. 7 (1) For purposes of calculating general State aid 8 pursuant to subsection (E), a representation of Available 9 Local Resources per pupil, as that term is defined and 10 determined in this subsection, shall be utilized. Available 11 Local Resources per pupil shall include a calculated dollar 12 amount representing local school district revenues from local 13 property taxes and from Corporate Personal Property 14 Replacement Taxes, expressed on the basis of pupils in 15 Average Daily Attendance. 16 (2) In determining a school district's revenue from 17 local property taxes, the State Board of Education shall 18 utilize the equalized assessed valuation of all taxable 19 property of each school district as of September 30 of the 20 previous year. The equalized assessed valuation utilized 21 shall be obtained and determined as provided in subsection 22 (G). 23 (3) For school districts maintaining grades kindergarten 24 through 12, local property tax revenues per pupil shall be 25 calculated as the product of the applicable equalized 26 assessed valuation for the district multiplied by 3.00%, and 27 divided by the district's Average Daily Attendance figure. 28 For school districts maintaining grades kindergarten through 29 8, local property tax revenues per pupil shall be calculated 30 as the product of the applicable equalized assessed valuation 31 for the district multiplied by 2.30%, and divided by the 32 district's Average Daily Attendance figure. For school 33 districts maintaining grades 9 through 12, local property tax 34 revenues per pupil shall be the applicable equalized assessed -6- LRB093 13415 RCE 18727 b 1 valuation of the district multiplied by (i) 1.05% through the 2 2003-2004 school year, (ii) 1.06% for the 2004-2005 school 3 year, (iii) 1.07% for the 2005-2006 school year, (iv) 1.08% 4 for the 2006-2007 school year, (v) 1.09% for the 2007-2008 5 school year, and (vi) 1.10% for the 2008-2009 school year and 6 each school year thereafter, and divided by the district's 7 Average Daily Attendance figure. 8 (4) The Corporate Personal Property Replacement Taxes 9 paid to each school district during the calendar year 2 years 10 before the calendar year in which a school year begins, 11 divided by the Average Daily Attendance figure for that 12 district, shall be added to the local property tax revenues 13 per pupil as derived by the application of the immediately 14 preceding paragraph (3). The sum of these per pupil figures 15 for each school district shall constitute Available Local 16 Resources as that term is utilized in subsection (E) in the 17 calculation of general State aid. 18 (E) Computation of General State Aid. 19 (1) For each school year, the amount of general State 20 aid allotted to a school district shall be computed by the 21 State Board of Education as provided in this subsection. 22 (2) For any school district for which Available Local 23 Resources per pupil is less than the product of 0.93 times 24 the Foundation Level, general State aid for that district 25 shall be calculated as an amount equal to the Foundation 26 Level minus Available Local Resources, multiplied by the 27 Average Daily Attendance of the school district. 28 (3) For any school district for which Available Local 29 Resources per pupil is equal to or greater than the product 30 of 0.93 times the Foundation Level and less than the product 31 of 1.75 times the Foundation Level, the general State aid per 32 pupil shall be a decimal proportion of the Foundation Level 33 derived using a linear algorithm. Under this linear 34 algorithm, the calculated general State aid per pupil shall -7- LRB093 13415 RCE 18727 b 1 decline in direct linear fashion from 0.07 times the 2 Foundation Level for a school district with Available Local 3 Resources equal to the product of 0.93 times the Foundation 4 Level, to 0.05 times the Foundation Level for a school 5 district with Available Local Resources equal to the product 6 of 1.75 times the Foundation Level. The allocation of 7 general State aid for school districts subject to this 8 paragraph 3 shall be the calculated general State aid per 9 pupil figure multiplied by the Average Daily Attendance of 10 the school district. 11 (4) For any school district for which Available Local 12 Resources per pupil equals or exceeds the product of 1.75 13 times the Foundation Level, the general State aid for the 14 school district shall be calculated as the product of $218 15 multiplied by the Average Daily Attendance of the school 16 district. 17 (5) The amount of general State aid allocated to a 18 school district for the 1999-2000 school year meeting the 19 requirements set forth in paragraph (4) of subsection (G) 20 shall be increased by an amount equal to the general State 21 aid that would have been received by the district for the 22 1998-1999 school year by utilizing the Extension Limitation 23 Equalized Assessed Valuation as calculated in paragraph (4) 24 of subsection (G) less the general State aid allotted for the 25 1998-1999 school year. This amount shall be deemed a one 26 time increase, and shall not affect any future general State 27 aid allocations. 28 (F) Compilation of Average Daily Attendance. 29 (1) Each school district shall, by July 1 of each year, 30 submit to the State Board of Education, on forms prescribed 31 by the State Board of Education, attendance figures for the 32 school year that began in the preceding calendar year. The 33 attendance information so transmitted shall identify the 34 average daily attendance figures for each month of the school -8- LRB093 13415 RCE 18727 b 1 year. Beginning with the general State aid claim form for 2 the 2002-2003 school year, districts shall calculate Average 3 Daily Attendance as provided in subdivisions (a), (b), and 4 (c) of this paragraph (1). 5 (a) In districts that do not hold year-round 6 classes, days of attendance in August shall be added to 7 the month of September and any days of attendance in June 8 shall be added to the month of May. 9 (b) In districts in which all buildings hold 10 year-round classes, days of attendance in July and August 11 shall be added to the month of September and any days of 12 attendance in June shall be added to the month of May. 13 (c) In districts in which some buildings, but not 14 all, hold year-round classes, for the non-year-round 15 buildings, days of attendance in August shall be added to 16 the month of September and any days of attendance in June 17 shall be added to the month of May. The average daily 18 attendance for the year-round buildings shall be computed 19 as provided in subdivision (b) of this paragraph (1). To 20 calculate the Average Daily Attendance for the district, 21 the average daily attendance for the year-round buildings 22 shall be multiplied by the days in session for the 23 non-year-round buildings for each month and added to the 24 monthly attendance of the non-year-round buildings. 25 Except as otherwise provided in this Section, days of 26 attendance by pupils shall be counted only for sessions of 27 not less than 5 clock hours of school work per day under 28 direct supervision of: (i) teachers, or (ii) non-teaching 29 personnel or volunteer personnel when engaging in 30 non-teaching duties and supervising in those instances 31 specified in subsection (a) of Section 10-22.34 and paragraph 32 10 of Section 34-18, with pupils of legal school age and in 33 kindergarten and grades 1 through 12. 34 Days of attendance by tuition pupils shall be accredited -9- LRB093 13415 RCE 18727 b 1 only to the districts that pay the tuition to a recognized 2 school. 3 (2) Days of attendance by pupils of less than 5 clock 4 hours of school shall be subject to the following provisions 5 in the compilation of Average Daily Attendance. 6 (a) Pupils regularly enrolled in a public school 7 for only a part of the school day may be counted on the 8 basis of 1/6 day for every class hour of instruction of 9 40 minutes or more attended pursuant to such enrollment, 10 unless a pupil is enrolled in a block-schedule format of 11 80 minutes or more of instruction, in which case the 12 pupil may be counted on the basis of the proportion of 13 minutes of school work completed each day to the minimum 14 number of minutes that school work is required to be held 15 that day. 16 (b) Days of attendance may be less than 5 clock 17 hours on the opening and closing of the school term, and 18 upon the first day of pupil attendance, if preceded by a 19 day or days utilized as an institute or teachers' 20 workshop. 21 (c) A session of 4 or more clock hours may be 22 counted as a day of attendance upon certification by the 23 regional superintendent, and approved by the State 24 Superintendent of Education to the extent that the 25 district has been forced to use daily multiple sessions. 26 (d) A session of 3 or more clock hours may be 27 counted as a day of attendance (1) when the remainder of 28 the school day or at least 2 hours in the evening of that 29 day is utilized for an in-service training program for 30 teachers, up to a maximum of 5 days per school year of 31 which a maximum of 4 days of such 5 days may be used for 32 parent-teacher conferences, provided a district conducts 33 an in-service training program for teachers which has 34 been approved by the State Superintendent of Education; -10- LRB093 13415 RCE 18727 b 1 or, in lieu of 4 such days, 2 full days may be used, in 2 which event each such day may be counted as a day of 3 attendance; and (2) when days in addition to those 4 provided in item (1) are scheduled by a school pursuant 5 to its school improvement plan adopted under Article 34 6 or its revised or amended school improvement plan adopted 7 under Article 2, provided that (i) such sessions of 3 or 8 more clock hours are scheduled to occur at regular 9 intervals, (ii) the remainder of the school days in which 10 such sessions occur are utilized for in-service training 11 programs or other staff development activities for 12 teachers, and (iii) a sufficient number of minutes of 13 school work under the direct supervision of teachers are 14 added to the school days between such regularly scheduled 15 sessions to accumulate not less than the number of 16 minutes by which such sessions of 3 or more clock hours 17 fall short of 5 clock hours. Any full days used for the 18 purposes of this paragraph shall not be considered for 19 computing average daily attendance. Days scheduled for 20 in-service training programs, staff development 21 activities, or parent-teacher conferences may be 22 scheduled separately for different grade levels and 23 different attendance centers of the district. 24 (e) A session of not less than one clock hour of 25 teaching hospitalized or homebound pupils on-site or by 26 telephone to the classroom may be counted as 1/2 day of 27 attendance, however these pupils must receive 4 or more 28 clock hours of instruction to be counted for a full day 29 of attendance. 30 (f) A session of at least 4 clock hours may be 31 counted as a day of attendance for first grade pupils, 32 and pupils in full day kindergartens, and a session of 2 33 or more hours may be counted as 1/2 day of attendance by 34 pupils in kindergartens which provide only 1/2 day of -11- LRB093 13415 RCE 18727 b 1 attendance. 2 (g) For children with disabilities who are below 3 the age of 6 years and who cannot attend 2 or more clock 4 hours because of their disability or immaturity, a 5 session of not less than one clock hour may be counted as 6 1/2 day of attendance; however for such children whose 7 educational needs so require a session of 4 or more clock 8 hours may be counted as a full day of attendance. 9 (h) A recognized kindergarten which provides for 10 only 1/2 day of attendance by each pupil shall not have 11 more than 1/2 day of attendance counted in any one day. 12 However, kindergartens may count 2 1/2 days of attendance 13 in any 5 consecutive school days. When a pupil attends 14 such a kindergarten for 2 half days on any one school 15 day, the pupil shall have the following day as a day 16 absent from school, unless the school district obtains 17 permission in writing from the State Superintendent of 18 Education. Attendance at kindergartens which provide for 19 a full day of attendance by each pupil shall be counted 20 the same as attendance by first grade pupils. Only the 21 first year of attendance in one kindergarten shall be 22 counted, except in case of children who entered the 23 kindergarten in their fifth year whose educational 24 development requires a second year of kindergarten as 25 determined under the rules and regulations of the State 26 Board of Education. 27 (G) Equalized Assessed Valuation Data. 28 (1) For purposes of the calculation of Available Local 29 Resources required pursuant to subsection (D), the State 30 Board of Education shall secure from the Department of 31 Revenue the value as equalized or assessed by the Department 32 of Revenue of all taxable property of every school district, 33 together with (i) the applicable tax rate used in extending 34 taxes for the funds of the district as of September 30 of the -12- LRB093 13415 RCE 18727 b 1 previous year and (ii) the limiting rate for all school 2 districts subject to property tax extension limitations as 3 imposed under the Property Tax Extension Limitation Law. 4 This equalized assessed valuation, as adjusted further by 5 the requirements of this subsection, shall be utilized in the 6 calculation of Available Local Resources. 7 (2) The equalized assessed valuation in paragraph (1) 8 shall be adjusted, as applicable, in the following manner: 9 (a) For the purposes of calculating State aid under 10 this Section, with respect to any part of a school 11 district within a redevelopment project area in respect 12 to which a municipality has adopted tax increment 13 allocation financing pursuant to the Tax Increment 14 Allocation Redevelopment Act, Sections 11-74.4-1 through 15 11-74.4-11 of the Illinois Municipal Code or the 16 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 17 11-74.6-50 of the Illinois Municipal Code, no part of the 18 current equalized assessed valuation of real property 19 located in any such project area which is attributable to 20 an increase above the total initial equalized assessed 21 valuation of such property shall be used as part of the 22 equalized assessed valuation of the district, until such 23 time as all redevelopment project costs have been paid, 24 as provided in Section 11-74.4-8 of the Tax Increment 25 Allocation Redevelopment Act or in Section 11-74.6-35 of 26 the Industrial Jobs Recovery Law. For the purpose of the 27 equalized assessed valuation of the district, the total 28 initial equalized assessed valuation or the current 29 equalized assessed valuation, whichever is lower, shall 30 be used until such time as all redevelopment project 31 costs have been paid. 32 (b) The real property equalized assessed valuation 33 for a school district shall be adjusted by subtracting 34 from the real property value as equalized or assessed by -13- LRB093 13415 RCE 18727 b 1 the Department of Revenue for the district an amount 2 computed by dividing the amount of any abatement of taxes 3 under Section 18-170 of the Property Tax Code by 3.00% 4 for a district maintaining grades kindergarten through 5 12, by 2.30% for a district maintaining grades 6 kindergarten through 8, or by (i) 1.05% through the 7 2003-2004 school year, (ii) 1.06% for the 2004-2005 8 school year, (iii) 1.07% for the 2005-2006 school year, 9 (iv) 1.08% for the 2006-2007 school year, (v) 1.09% for 10 the 2007-2008 school year, and (vi) 1.10% for the 11 2008-2009 school year and each school year thereafter for 12 a district maintaining grades 9 through 12 and adjusted 13 by an amount computed by dividing the amount of any 14 abatement of taxes under subsection (a) of Section 18-165 15 of the Property Tax Code by the same percentage rates for 16 district type as specified in this subparagraph (b). 17 (3) For the 1999-2000 school year and each school year 18 thereafter, if a school district meets all of the criteria of 19 this subsection (G)(3), the school district's Available Local 20 Resources shall be calculated under subsection (D) using the 21 district's Extension Limitation Equalized Assessed Valuation 22 as calculated under this subsection (G)(3). 23 For purposes of this subsection (G)(3) the following 24 terms shall have the following meanings: 25 "Budget Year": The school year for which general 26 State aid is calculated and awarded under subsection (E). 27 "Base Tax Year": The property tax levy year used to 28 calculate the Budget Year allocation of general State 29 aid. 30 "Preceding Tax Year": The property tax levy year 31 immediately preceding the Base Tax Year. 32 "Base Tax Year's Tax Extension": The product of the 33 equalized assessed valuation utilized by the County Clerk 34 in the Base Tax Year multiplied by the limiting rate as -14- LRB093 13415 RCE 18727 b 1 calculated by the County Clerk and defined in the 2 Property Tax Extension Limitation Law. 3 "Preceding Tax Year's Tax Extension": The product of 4 the equalized assessed valuation utilized by the County 5 Clerk in the Preceding Tax Year multiplied by the 6 Operating Tax Rate as defined in subsection (A). 7 "Extension Limitation Ratio": A numerical ratio, 8 certified by the County Clerk, in which the numerator is 9 the Base Tax Year's Tax Extension and the denominator is 10 the Preceding Tax Year's Tax Extension. 11 "Operating Tax Rate": The operating tax rate as 12 defined in subsection (A). 13 If a school district is subject to property tax extension 14 limitations as imposed under the Property Tax Extension 15 Limitation Law, the State Board of Education shall calculate 16 the Extension Limitation Equalized Assessed Valuation of that 17 district. For the 1999-2000 school year, the Extension 18 Limitation Equalized Assessed Valuation of a school district 19 as calculated by the State Board of Education shall be equal 20 to the product of the district's 1996 Equalized Assessed 21 Valuation and the district's Extension Limitation Ratio. For 22 the 2000-2001 school year and each school year thereafter, 23 the Extension Limitation Equalized Assessed Valuation of a 24 school district as calculated by the State Board of Education 25 shall be equal to the product of the Equalized Assessed 26 Valuation last used in the calculation of general State aid 27 and the district's Extension Limitation Ratio. If the 28 Extension Limitation Equalized Assessed Valuation of a school 29 district as calculated under this subsection (G)(3) is less 30 than the district's equalized assessed valuation as 31 calculated pursuant to subsections (G)(1) and (G)(2), then 32 for purposes of calculating the district's general State aid 33 for the Budget Year pursuant to subsection (E), that 34 Extension Limitation Equalized Assessed Valuation shall be -15- LRB093 13415 RCE 18727 b 1 utilized to calculate the district's Available Local 2 Resources under subsection (D). 3 (4) For the purposes of calculating general State aid 4 for the 1999-2000 school year only, if a school district 5 experienced a triennial reassessment on the equalized 6 assessed valuation used in calculating its general State 7 financial aid apportionment for the 1998-1999 school year, 8 the State Board of Education shall calculate the Extension 9 Limitation Equalized Assessed Valuation that would have been 10 used to calculate the district's 1998-1999 general State aid. 11 This amount shall equal the product of the equalized assessed 12 valuation used to calculate general State aid for the 13 1997-1998 school year and the district's Extension Limitation 14 Ratio. If the Extension Limitation Equalized Assessed 15 Valuation of the school district as calculated under this 16 paragraph (4) is less than the district's equalized assessed 17 valuation utilized in calculating the district's 1998-1999 18 general State aid allocation, then for purposes of 19 calculating the district's general State aid pursuant to 20 paragraph (5) of subsection (E), that Extension Limitation 21 Equalized Assessed Valuation shall be utilized to calculate 22 the district's Available Local Resources. 23 (5) For school districts having a majority of their 24 equalized assessed valuation in any county except Cook, 25 DuPage, Kane, Lake, McHenry, or Will, if the amount of 26 general State aid allocated to the school district for the 27 1999-2000 school year under the provisions of subsection (E), 28 (H), and (J) of this Section is less than the amount of 29 general State aid allocated to the district for the 1998-1999 30 school year under these subsections, then the general State 31 aid of the district for the 1999-2000 school year only shall 32 be increased by the difference between these amounts. The 33 total payments made under this paragraph (5) shall not exceed 34 $14,000,000. Claims shall be prorated if they exceed -16- LRB093 13415 RCE 18727 b 1 $14,000,000. 2 (H) Supplemental General State Aid. 3 (1) In addition to the general State aid a school 4 district is allotted pursuant to subsection (E), qualifying 5 school districts shall receive a grant, paid in conjunction 6 with a district's payments of general State aid, for 7 supplemental general State aid based upon the concentration 8 level of children from low-income households within the 9 school district. Supplemental State aid grants provided for 10 school districts under this subsection shall be appropriated 11 for distribution to school districts as part of the same line 12 item in which the general State financial aid of school 13 districts is appropriated under this Section. If the 14 appropriation in any fiscal year for general State aid and 15 supplemental general State aid is insufficient to pay the 16 amounts required under the general State aid and supplemental 17 general State aid calculations, then the State Board of 18 Education shall ensure that each school district receives the 19 full amount due for general State aid and the remainder of 20 the appropriation shall be used for supplemental general 21 State aid, which the State Board of Education shall calculate 22 and pay to eligible districts on a prorated basis. 23 (1.5) This paragraph (1.5) applies only to those school 24 years preceding the 2003-2004 school year. For purposes of 25 this subsection (H), the term "Low-Income Concentration 26 Level" shall be the low-income eligible pupil count from the 27 most recently available federal census divided by the Average 28 Daily Attendance of the school district. If, however, (i) the 29 percentage decrease from the 2 most recent federal censuses 30 in the low-income eligible pupil count of a high school 31 district with fewer than 400 students exceeds by 75% or more 32 the percentage change in the total low-income eligible pupil 33 count of contiguous elementary school districts, whose 34 boundaries are coterminous with the high school district, or -17- LRB093 13415 RCE 18727 b 1 (ii) a high school district within 2 counties and serving 5 2 elementary school districts, whose boundaries are coterminous 3 with the high school district, has a percentage decrease from 4 the 2 most recent federal censuses in the low-income eligible 5 pupil count and there is a percentage increase in the total 6 low-income eligible pupil count of a majority of the 7 elementary school districts in excess of 50% from the 2 most 8 recent federal censuses, then the high school district's 9 low-income eligible pupil count from the earlier federal 10 census shall be the number used as the low-income eligible 11 pupil count for the high school district, for purposes of 12 this subsection (H). The changes made to this paragraph (1) 13 by Public Act 92-28 shall apply to supplemental general State 14 aid grants for school years preceding the 2003-2004 school 15 year that are paid in fiscal year 1999 or thereafter and to 16 any State aid payments made in fiscal year 1994 through 17 fiscal year 1998 pursuant to subsection 1(n) of Section 18-8 18 of this Code (which was repealed on July 1, 1998), and any 19 high school district that is affected by Public Act 92-28 is 20 entitled to a recomputation of its supplemental general State 21 aid grant or State aid paid in any of those fiscal years. 22 This recomputation shall not be affected by any other 23 funding. 24 (1.10) This paragraph (1.10) applies to the 2003-2004 25 school year and each school year thereafter. For purposes of 26 this subsection (H), the term "Low-Income Concentration 27 Level" shall, for each fiscal year, be the low-income 28 eligible pupil count as of July 1 of the immediately 29 preceding fiscal year (as determined by the Department of 30 Human Services based on the number of pupils who are eligible 31 for at least one of the following low income programs: 32 Medicaid, KidCare, TANF, or Food Stamps, excluding pupils who 33 are eligible for services provided by the Department of 34 Children and Family Services, averaged over the 2 immediately -18- LRB093 13415 RCE 18727 b 1 preceding fiscal years for fiscal year 2004 and over the 3 2 immediately preceding fiscal years for each fiscal year 3 thereafter) divided by the Average Daily Attendance of the 4 school district. 5 (2) Supplemental general State aid pursuant to this 6 subsection (H) shall be provided as follows for the 7 1998-1999, 1999-2000, and 2000-2001 school years only: 8 (a) For any school district with a Low Income 9 Concentration Level of at least 20% and less than 35%, 10 the grant for any school year shall be $800 multiplied by 11 the low income eligible pupil count. 12 (b) For any school district with a Low Income 13 Concentration Level of at least 35% and less than 50%, 14 the grant for the 1998-1999 school year shall be $1,100 15 multiplied by the low income eligible pupil count. 16 (c) For any school district with a Low Income 17 Concentration Level of at least 50% and less than 60%, 18 the grant for the 1998-99 school year shall be $1,500 19 multiplied by the low income eligible pupil count. 20 (d) For any school district with a Low Income 21 Concentration Level of 60% or more, the grant for the 22 1998-99 school year shall be $1,900 multiplied by the low 23 income eligible pupil count. 24 (e) For the 1999-2000 school year, the per pupil 25 amount specified in subparagraphs (b), (c), and (d) 26 immediately above shall be increased to $1,243, $1,600, 27 and $2,000, respectively. 28 (f) For the 2000-2001 school year, the per pupil 29 amounts specified in subparagraphs (b), (c), and (d) 30 immediately above shall be $1,273, $1,640, and $2,050, 31 respectively. 32 (2.5) Supplemental general State aid pursuant to this 33 subsection (H) shall be provided as follows for the 2002-2003 34 school year: -19- LRB093 13415 RCE 18727 b 1 (a) For any school district with a Low Income 2 Concentration Level of less than 10%, the grant for each 3 school year shall be $355 multiplied by the low income 4 eligible pupil count. 5 (b) For any school district with a Low Income 6 Concentration Level of at least 10% and less than 20%, 7 the grant for each school year shall be $675 multiplied 8 by the low income eligible pupil count. 9 (c) For any school district with a Low Income 10 Concentration Level of at least 20% and less than 35%, 11 the grant for each school year shall be $1,330 multiplied 12 by the low income eligible pupil count. 13 (d) For any school district with a Low Income 14 Concentration Level of at least 35% and less than 50%, 15 the grant for each school year shall be $1,362 multiplied 16 by the low income eligible pupil count. 17 (e) For any school district with a Low Income 18 Concentration Level of at least 50% and less than 60%, 19 the grant for each school year shall be $1,680 multiplied 20 by the low income eligible pupil count. 21 (f) For any school district with a Low Income 22 Concentration Level of 60% or more, the grant for each 23 school year shall be $2,080 multiplied by the low income 24 eligible pupil count. 25 (2.10) Except as otherwise provided, supplemental 26 general State aid pursuant to this subsection (H) shall be 27 provided as follows for the 2003-2004 school year and each 28 school year thereafter: 29 (a) For any school district with a Low Income 30 Concentration Level of 15% or less, the grant for each 31 school year shall be $355 multiplied by the low income 32 eligible pupil count. 33 (b) For any school district with a Low Income 34 Concentration Level greater than 15%, the grant for each -20- LRB093 13415 RCE 18727 b 1 school year shall be $294.25 added to the product of 2 $2,700 and the square of the Low Income Concentration 3 Level, all multiplied by the low income eligible pupil 4 count. 5 For the 2003-2004 school year only, the grant shall be no 6 less than the grant for the 2002-2003 school year. For the 7 2004-2005 school year only, the grant shall be no less than 8 the grant for the 2002-2003 school year multiplied by 0.66. 9 For the 2005-2006 school year only, the grant shall be no 10 less than the grant for the 2002-2003 school year multiplied 11 by 0.33. 12 For the 2003-2004 school year only, the grant shall be no 13 greater than the grant received during the 2002-2003 school 14 year added to the product of 0.25 multiplied by the 15 difference between the grant amount calculated under 16 subsection (a) or (b) of this paragraph (2.10), whichever is 17 applicable, and the grant received during the 2002-2003 18 school year. For the 2004-2005 school year only, the grant 19 shall be no greater than the grant received during the 20 2002-2003 school year added to the product of 0.50 multiplied 21 by the difference between the grant amount calculated under 22 subsection (a) or (b) of this paragraph (2.10), whichever is 23 applicable, and the grant received during the 2002-2003 24 school year. For the 2005-2006 school year only, the grant 25 shall be no greater than the grant received during the 26 2002-2003 school year added to the product of 0.75 multiplied 27 by the difference between the grant amount calculated under 28 subsection (a) or (b) of this paragraph (2.10), whichever is 29 applicable, and the grant received during the 2002-2003 30 school year. 31 (3) School districts with an Average Daily Attendance of 32 more than 1,000 and less than 50,000 that qualify for 33 supplemental general State aid pursuant to this subsection 34 shall submit a plan to the State Board of Education prior to -21- LRB093 13415 RCE 18727 b 1 October 30 of each year for the use of the funds resulting 2 from this grant of supplemental general State aid for the 3 improvement of instruction in which priority is given to 4 meeting the education needs of disadvantaged children. Such 5 plan shall be submitted in accordance with rules and 6 regulations promulgated by the State Board of Education. 7 (4) School districts with an Average Daily Attendance of 8 50,000 or more that qualify for supplemental general State 9 aid pursuant to this subsection shall be required to 10 distribute from funds available pursuant to this Section, no 11 less than $261,000,000 in accordance with the following 12 requirements: 13 (a) The required amounts shall be distributed to 14 the attendance centers within the district in proportion 15 to the number of pupils enrolled at each attendance 16 center who are eligible to receive free or reduced-price 17 lunches or breakfasts under the federal Child Nutrition 18 Act of 1966 and under the National School Lunch Act 19 during the immediately preceding school year. 20 (b) The distribution of these portions of 21 supplemental and general State aid among attendance 22 centers according to these requirements shall not be 23 compensated for or contravened by adjustments of the 24 total of other funds appropriated to any attendance 25 centers, and the Board of Education shall utilize funding 26 from one or several sources in order to fully implement 27 this provision annually prior to the opening of school. 28 (c) Each attendance center shall be provided by the 29 school district a distribution of noncategorical funds 30 and other categorical funds to which an attendance center 31 is entitled under law in order that the general State aid 32 and supplemental general State aid provided by 33 application of this subsection supplements rather than 34 supplants the noncategorical funds and other categorical -22- LRB093 13415 RCE 18727 b 1 funds provided by the school district to the attendance 2 centers. 3 (d) Any funds made available under this subsection 4 that by reason of the provisions of this subsection are 5 not required to be allocated and provided to attendance 6 centers may be used and appropriated by the board of the 7 district for any lawful school purpose. 8 (e) Funds received by an attendance center pursuant 9 to this subsection shall be used by the attendance center 10 at the discretion of the principal and local school 11 council for programs to improve educational opportunities 12 at qualifying schools through the following programs and 13 services: early childhood education, reduced class size 14 or improved adult to student classroom ratio, enrichment 15 programs, remedial assistance, attendance improvement, 16 and other educationally beneficial expenditures which 17 supplement the regular and basic programs as determined 18 by the State Board of Education. Funds provided shall not 19 be expended for any political or lobbying purposes as 20 defined by board rule. 21 (f) Each district subject to the provisions of this 22 subdivision (H)(4) shall submit an acceptable plan to 23 meet the educational needs of disadvantaged children, in 24 compliance with the requirements of this paragraph, to 25 the State Board of Education prior to July 15 of each 26 year. This plan shall be consistent with the decisions of 27 local school councils concerning the school expenditure 28 plans developed in accordance with part 4 of Section 29 34-2.3. The State Board shall approve or reject the plan 30 within 60 days after its submission. If the plan is 31 rejected, the district shall give written notice of 32 intent to modify the plan within 15 days of the 33 notification of rejection and then submit a modified plan 34 within 30 days after the date of the written notice of -23- LRB093 13415 RCE 18727 b 1 intent to modify. Districts may amend approved plans 2 pursuant to rules promulgated by the State Board of 3 Education. 4 Upon notification by the State Board of Education 5 that the district has not submitted a plan prior to July 6 15 or a modified plan within the time period specified 7 herein, the State aid funds affected by that plan or 8 modified plan shall be withheld by the State Board of 9 Education until a plan or modified plan is submitted. 10 If the district fails to distribute State aid to 11 attendance centers in accordance with an approved plan, 12 the plan for the following year shall allocate funds, in 13 addition to the funds otherwise required by this 14 subsection, to those attendance centers which were 15 underfunded during the previous year in amounts equal to 16 such underfunding. 17 For purposes of determining compliance with this 18 subsection in relation to the requirements of attendance 19 center funding, each district subject to the provisions 20 of this subsection shall submit as a separate document by 21 December 1 of each year a report of expenditure data for 22 the prior year in addition to any modification of its 23 current plan. If it is determined that there has been a 24 failure to comply with the expenditure provisions of this 25 subsection regarding contravention or supplanting, the 26 State Superintendent of Education shall, within 60 days 27 of receipt of the report, notify the district and any 28 affected local school council. The district shall within 29 45 days of receipt of that notification inform the State 30 Superintendent of Education of the remedial or corrective 31 action to be taken, whether by amendment of the current 32 plan, if feasible, or by adjustment in the plan for the 33 following year. Failure to provide the expenditure 34 report or the notification of remedial or corrective -24- LRB093 13415 RCE 18727 b 1 action in a timely manner shall result in a withholding 2 of the affected funds. 3 The State Board of Education shall promulgate rules 4 and regulations to implement the provisions of this 5 subsection. No funds shall be released under this 6 subdivision (H)(4) to any district that has not submitted 7 a plan that has been approved by the State Board of 8 Education. 9 (I) General State Aid for Newly Configured School Districts. 10 (1) For a new school district formed by combining 11 property included totally within 2 or more previously 12 existing school districts, for its first year of existence 13 the general State aid and supplemental general State aid 14 calculated under this Section shall be computed for the new 15 district and for the previously existing districts for which 16 property is totally included within the new district. If the 17 computation on the basis of the previously existing districts 18 is greater, a supplementary payment equal to the difference 19 shall be made for the first 4 years of existence of the new 20 district. 21 (2) For a school district which annexes all of the 22 territory of one or more entire other school districts, for 23 the first year during which the change of boundaries 24 attributable to such annexation becomes effective for all 25 purposes as determined under Section 7-9 or 7A-8, the general 26 State aid and supplemental general State aid calculated under 27 this Section shall be computed for the annexing district as 28 constituted after the annexation and for the annexing and 29 each annexed district as constituted prior to the annexation; 30 and if the computation on the basis of the annexing and 31 annexed districts as constituted prior to the annexation is 32 greater, a supplementary payment equal to the difference 33 shall be made for the first 4 years of existence of the 34 annexing school district as constituted upon such annexation. -25- LRB093 13415 RCE 18727 b 1 (3) For 2 or more school districts which annex all of 2 the territory of one or more entire other school districts, 3 and for 2 or more community unit districts which result upon 4 the division (pursuant to petition under Section 11A-2) of 5 one or more other unit school districts into 2 or more parts 6 and which together include all of the parts into which such 7 other unit school district or districts are so divided, for 8 the first year during which the change of boundaries 9 attributable to such annexation or division becomes effective 10 for all purposes as determined under Section 7-9 or 11A-10, 11 as the case may be, the general State aid and supplemental 12 general State aid calculated under this Section shall be 13 computed for each annexing or resulting district as 14 constituted after the annexation or division and for each 15 annexing and annexed district, or for each resulting and 16 divided district, as constituted prior to the annexation or 17 division; and if the aggregate of the general State aid and 18 supplemental general State aid as so computed for the 19 annexing or resulting districts as constituted after the 20 annexation or division is less than the aggregate of the 21 general State aid and supplemental general State aid as so 22 computed for the annexing and annexed districts, or for the 23 resulting and divided districts, as constituted prior to the 24 annexation or division, then a supplementary payment equal to 25 the difference shall be made and allocated between or among 26 the annexing or resulting districts, as constituted upon such 27 annexation or division, for the first 4 years of their 28 existence. The total difference payment shall be allocated 29 between or among the annexing or resulting districts in the 30 same ratio as the pupil enrollment from that portion of the 31 annexed or divided district or districts which is annexed to 32 or included in each such annexing or resulting district bears 33 to the total pupil enrollment from the entire annexed or 34 divided district or districts, as such pupil enrollment is -26- LRB093 13415 RCE 18727 b 1 determined for the school year last ending prior to the date 2 when the change of boundaries attributable to the annexation 3 or division becomes effective for all purposes. The amount 4 of the total difference payment and the amount thereof to be 5 allocated to the annexing or resulting districts shall be 6 computed by the State Board of Education on the basis of 7 pupil enrollment and other data which shall be certified to 8 the State Board of Education, on forms which it shall provide 9 for that purpose, by the regional superintendent of schools 10 for each educational service region in which the annexing and 11 annexed districts, or resulting and divided districts are 12 located. 13 (3.5) Claims for financial assistance under this 14 subsection (I) shall not be recomputed except as expressly 15 provided under this Section. 16 (4) Any supplementary payment made under this subsection 17 (I) shall be treated as separate from all other payments made 18 pursuant to this Section. 19 (J) Supplementary Grants in Aid. 20 (1) Notwithstanding any other provisions of this 21 Section, the amount of the aggregate general State aid in 22 combination with supplemental general State aid under this 23 Section for which each school district is eligible shall be 24 no less than the amount of the aggregate general State aid 25 entitlement that was received by the district under Section 26 18-8 (exclusive of amounts received under subsections 5(p) 27 and 5(p-5) of that Section) for the 1997-98 school year, 28 pursuant to the provisions of that Section as it was then in 29 effect. If a school district qualifies to receive a 30 supplementary payment made under this subsection (J), the 31 amount of the aggregate general State aid in combination with 32 supplemental general State aid under this Section which that 33 district is eligible to receive for each school year shall be 34 no less than the amount of the aggregate general State aid -27- LRB093 13415 RCE 18727 b 1 entitlement that was received by the district under Section 2 18-8 (exclusive of amounts received under subsections 5(p) 3 and 5(p-5) of that Section) for the 1997-1998 school year, 4 pursuant to the provisions of that Section as it was then in 5 effect. 6 (2) If, as provided in paragraph (1) of this subsection 7 (J), a school district is to receive aggregate general State 8 aid in combination with supplemental general State aid under 9 this Section for the 1998-99 school year and any subsequent 10 school year that in any such school year is less than the 11 amount of the aggregate general State aid entitlement that 12 the district received for the 1997-98 school year, the school 13 district shall also receive, from a separate appropriation 14 made for purposes of this subsection (J), a supplementary 15 payment that is equal to the amount of the difference in the 16 aggregate State aid figures as described in paragraph (1). 17 (3) (Blank). 18 (K) Grants to Laboratory and Alternative Schools. 19 In calculating the amount to be paid to the governing 20 board of a public university that operates a laboratory 21 school under this Section or to any alternative school that 22 is operated by a regional superintendent of schools, the 23 State Board of Education shall require by rule such reporting 24 requirements as it deems necessary. 25 As used in this Section, "laboratory school" means a 26 public school which is created and operated by a public 27 university and approved by the State Board of Education. The 28 governing board of a public university which receives funds 29 from the State Board under this subsection (K) may not 30 increase the number of students enrolled in its laboratory 31 school from a single district, if that district is already 32 sending 50 or more students, except under a mutual agreement 33 between the school board of a student's district of residence 34 and the university which operates the laboratory school. A -28- LRB093 13415 RCE 18727 b 1 laboratory school may not have more than 1,000 students, 2 excluding students with disabilities in a special education 3 program. 4 As used in this Section, "alternative school" means a 5 public school which is created and operated by a Regional 6 Superintendent of Schools and approved by the State Board of 7 Education. Such alternative schools may offer courses of 8 instruction for which credit is given in regular school 9 programs, courses to prepare students for the high school 10 equivalency testing program or vocational and occupational 11 training. A regional superintendent of schools may contract 12 with a school district or a public community college district 13 to operate an alternative school. An alternative school 14 serving more than one educational service region may be 15 established by the regional superintendents of schools of the 16 affected educational service regions. An alternative school 17 serving more than one educational service region may be 18 operated under such terms as the regional superintendents of 19 schools of those educational service regions may agree. 20 Each laboratory and alternative school shall file, on 21 forms provided by the State Superintendent of Education, an 22 annual State aid claim which states the Average Daily 23 Attendance of the school's students by month. The best 3 24 months' Average Daily Attendance shall be computed for each 25 school. The general State aid entitlement shall be computed 26 by multiplying the applicable Average Daily Attendance by the 27 Foundation Level as determined under this Section. 28 (L) Payments, Additional Grants in Aid and Other 29 Requirements. 30 (1) For a school district operating under the financial 31 supervision of an Authority created under Article 34A, the 32 general State aid otherwise payable to that district under 33 this Section, but not the supplemental general State aid, 34 shall be reduced by an amount equal to the budget for the -29- LRB093 13415 RCE 18727 b 1 operations of the Authority as certified by the Authority to 2 the State Board of Education, and an amount equal to such 3 reduction shall be paid to the Authority created for such 4 district for its operating expenses in the manner provided in 5 Section 18-11. The remainder of general State school aid for 6 any such district shall be paid in accordance with Article 7 34A when that Article provides for a disposition other than 8 that provided by this Article. 9 (2) (Blank). 10 (3) Summer school. Summer school payments shall be made 11 as provided in Section 18-4.3. 12 (M) Education Funding Advisory Board. 13 The Education Funding Advisory Board, hereinafter in this 14 subsection (M) referred to as the "Board", is hereby created. 15 The Board shall consist of 5 members who are appointed by the 16 Governor, by and with the advice and consent of the Senate. 17 The members appointed shall include representatives of 18 education, business, and the general public. One of the 19 members so appointed shall be designated by the Governor at 20 the time the appointment is made as the chairperson of the 21 Board. The initial members of the Board may be appointed any 22 time after the effective date of this amendatory Act of 1997. 23 The regular term of each member of the Board shall be for 4 24 years from the third Monday of January of the year in which 25 the term of the member's appointment is to commence, except 26 that of the 5 initial members appointed to serve on the 27 Board, the member who is appointed as the chairperson shall 28 serve for a term that commences on the date of his or her 29 appointment and expires on the third Monday of January, 2002, 30 and the remaining 4 members, by lots drawn at the first 31 meeting of the Board that is held after all 5 members are 32 appointed, shall determine 2 of their number to serve for 33 terms that commence on the date of their respective 34 appointments and expire on the third Monday of January, 2001, -30- LRB093 13415 RCE 18727 b 1 and 2 of their number to serve for terms that commence on the 2 date of their respective appointments and expire on the third 3 Monday of January, 2000. All members appointed to serve on 4 the Board shall serve until their respective successors are 5 appointed and confirmed. Vacancies shall be filled in the 6 same manner as original appointments. If a vacancy in 7 membership occurs at a time when the Senate is not in 8 session, the Governor shall make a temporary appointment 9 until the next meeting of the Senate, when he or she shall 10 appoint, by and with the advice and consent of the Senate, a 11 person to fill that membership for the unexpired term. If 12 the Senate is not in session when the initial appointments 13 are made, those appointments shall be made as in the case of 14 vacancies. 15 The Education Funding Advisory Board shall be deemed 16 established, and the initial members appointed by the 17 Governor to serve as members of the Board shall take office, 18 on the date that the Governor makes his or her appointment of 19 the fifth initial member of the Board, whether those initial 20 members are then serving pursuant to appointment and 21 confirmation or pursuant to temporary appointments that are 22 made by the Governor as in the case of vacancies. 23 The State Board of Education shall provide such staff 24 assistance to the Education Funding Advisory Board as is 25 reasonably required for the proper performance by the Board 26 of its responsibilities. 27 For school years after the 2000-2001 school year, the 28 Education Funding Advisory Board, in consultation with the 29 State Board of Education, shall make recommendations as 30 provided in this subsection (M) to the General Assembly for 31 the foundation level under subdivision (B)(3) of this Section 32 and for the supplemental general State aid grant level under 33 subsection (H) of this Section for districts with high 34 concentrations of children from poverty. The recommended -31- LRB093 13415 RCE 18727 b 1 foundation level shall be determined based on a methodology 2 which incorporates the basic education expenditures of 3 low-spending schools exhibiting high academic performance. 4 The Education Funding Advisory Board shall make such 5 recommendations to the General Assembly on January 1 of odd 6 numbered years, beginning January 1, 2001. 7 (N) (Blank). 8 (O) References. 9 (1) References in other laws to the various subdivisions 10 of Section 18-8 as that Section existed before its repeal and 11 replacement by this Section 18-8.05 shall be deemed to refer 12 to the corresponding provisions of this Section 18-8.05, to 13 the extent that those references remain applicable. 14 (2) References in other laws to State Chapter 1 funds 15 shall be deemed to refer to the supplemental general State 16 aid provided under subsection (H) of this Section. 17 (Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29, 18 eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 19 92-636, eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 20 7-1-03.) 21 Section 99. Effective date. This Act takes effect on 22 July 1, 2004.