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Full Text of HB4469  99th General Assembly

HB4469 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4469

 

Introduced , by Rep. Norine Hammond

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/11E-135

    Amends the Conversion and Formation of School Districts Article of the School Code. Requires the General Assembly to appropriate a sufficient amount each fiscal year to fully fund the payments required to be made under a Section concerning incentives. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
511E-135 as follows:
 
6    (105 ILCS 5/11E-135)
7    Sec. 11E-135. Incentives. For districts reorganizing under
8this Article and for a district or districts that annex all of
9the territory of one or more entire other school districts in
10accordance with Article 7 of this Code, the following payments
11shall be made from appropriations made for these purposes and
12the General Assembly must appropriate a sufficient amount each
13fiscal year to fully fund these payments:
14    (a)(1) For a combined school district, as defined in
15Section 11E-20 of this Code, or for a unit district, as defined
16in Section 11E-25 of this Code, for its first year of
17existence, the general State aid and supplemental general State
18aid calculated under Section 18-8.05 of this Code shall be
19computed for the new district and for the previously existing
20districts for which property is totally included within the new
21district. If the computation on the basis of the previously
22existing districts is greater, a supplementary payment equal to
23the difference shall be made for the first 4 years of existence

 

 

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1of the new district.
2    (2) For a school district that annexes all of the territory
3of one or more entire other school districts as defined in
4Article 7 of this Code, for the first year during which the
5change of boundaries attributable to the annexation becomes
6effective for all purposes, as determined under Section 7-9 of
7this Code, the general State aid and supplemental general State
8aid calculated under Section 18-8.05 of this Code shall be
9computed for the annexing district as constituted after the
10annexation and for the annexing and each annexed district as
11constituted prior to the annexation; and if the computation on
12the basis of the annexing and annexed districts as constituted
13prior to the annexation is greater, then a supplementary
14payment equal to the difference shall be made for the first 4
15years of existence of the annexing school district as
16constituted upon the annexation.
17    (3) For 2 or more school districts that annex all of the
18territory of one or more entire other school districts, as
19defined in Article 7 of this Code, for the first year during
20which the change of boundaries attributable to the annexation
21becomes effective for all purposes, as determined under Section
227-9 of this Code, the general State aid and supplemental
23general State aid calculated under Section 18-8.05 of this Code
24shall be computed for each annexing district as constituted
25after the annexation and for each annexing and annexed district
26as constituted prior to the annexation; and if the aggregate of

 

 

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1the general State aid and supplemental general State aid as so
2computed for the annexing districts as constituted after the
3annexation is less than the aggregate of the general State aid
4and supplemental general State aid as so computed for the
5annexing and annexed districts, as constituted prior to the
6annexation, then a supplementary payment equal to the
7difference shall be made and allocated between or among the
8annexing districts, as constituted upon the annexation, for the
9first 4 years of their existence. The total difference payment
10shall be allocated between or among the annexing districts in
11the same ratio as the pupil enrollment from that portion of the
12annexed district or districts that is annexed to each annexing
13district bears to the total pupil enrollment from the entire
14annexed district or districts, as such pupil enrollment is
15determined for the school year last ending prior to the date
16when the change of boundaries attributable to the annexation
17becomes effective for all purposes. The amount of the total
18difference payment and the amount thereof to be allocated to
19the annexing districts shall be computed by the State Board of
20Education on the basis of pupil enrollment and other data that
21shall be certified to the State Board of Education, on forms
22that it shall provide for that purpose, by the regional
23superintendent of schools for each educational service region
24in which the annexing and annexed districts are located.
25    (4) For a school district conversion, as defined in Section
2611E-15 of this Code, or a multi-unit conversion, as defined in

 

 

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1subsection (b) of Section 11E-30 of this Code, if in their
2first year of existence the newly created elementary districts
3and the newly created high school district, from a school
4district conversion, or the newly created elementary district
5or districts and newly created combined high school - unit
6district, from a multi-unit conversion, qualify for less
7general State aid under Section 18-8.05 of this Code than would
8have been payable under Section 18-8.05 for that same year to
9the previously existing districts, then a supplementary
10payment equal to that difference shall be made for the first 4
11years of existence of the newly created districts. The
12aggregate amount of each supplementary payment shall be
13allocated among the newly created districts in the proportion
14that the deemed pupil enrollment in each district during its
15first year of existence bears to the actual aggregate pupil
16enrollment in all of the districts during their first year of
17existence. For purposes of each allocation:
18        (A) the deemed pupil enrollment of the newly created
19    high school district from a school district conversion
20    shall be an amount equal to its actual pupil enrollment for
21    its first year of existence multiplied by 1.25;
22        (B) the deemed pupil enrollment of each newly created
23    elementary district from a school district conversion
24    shall be an amount equal to its actual pupil enrollment for
25    its first year of existence reduced by an amount equal to
26    the product obtained when the amount by which the newly

 

 

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1    created high school district's deemed pupil enrollment
2    exceeds its actual pupil enrollment for its first year of
3    existence is multiplied by a fraction, the numerator of
4    which is the actual pupil enrollment of the newly created
5    elementary district for its first year of existence and the
6    denominator of which is the actual aggregate pupil
7    enrollment of all of the newly created elementary districts
8    for their first year of existence;
9        (C) the deemed high school pupil enrollment of the
10    newly created combined high school - unit district from a
11    multi-unit conversion shall be an amount equal to its
12    actual grades 9 through 12 pupil enrollment for its first
13    year of existence multiplied by 1.25; and
14        (D) the deemed elementary pupil enrollment of each
15    newly created district from a multi-unit conversion shall
16    be an amount equal to each district's actual grade K
17    through 8 pupil enrollment for its first year of existence,
18    reduced by an amount equal to the product obtained when the
19    amount by which the newly created combined high school -
20    unit district's deemed high school pupil enrollment
21    exceeds its actual grade 9 through 12 pupil enrollment for
22    its first year of existence is multiplied by a fraction,
23    the numerator of which is the actual grade K through 8
24    pupil enrollment of each newly created district for its
25    first year of existence and the denominator of which is the
26    actual aggregate grade K through 8 pupil enrollment of all

 

 

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1    such newly created districts for their first year of
2    existence.
3     The aggregate amount of each supplementary payment under
4this subdivision (4) and the amount thereof to be allocated to
5the newly created districts shall be computed by the State
6Board of Education on the basis of pupil enrollment and other
7data, which shall be certified to the State Board of Education,
8on forms that it shall provide for that purpose, by the
9regional superintendent of schools for each educational
10service region in which the newly created districts are
11located.
12    (5) For a partial elementary unit district, as defined in
13subsection (a) or (c) of Section 11E-30 of this Code, if, in
14the first year of existence, the newly created partial
15elementary unit district qualifies for less general State aid
16and supplemental general State aid under Section 18-8.05 of
17this Code than would have been payable under that Section for
18that same year to the previously existing districts that formed
19the partial elementary unit district, then a supplementary
20payment equal to that difference shall be made to the partial
21elementary unit district for the first 4 years of existence of
22that newly created district.
23    (6) For an elementary opt-in, as described in subsection
24(d) of Section 11E-30 of this Code, the general State aid
25difference shall be computed in accordance with paragraph (5)
26of this subsection (a) as if the elementary opt-in was included

 

 

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1in an optional elementary unit district at the optional
2elementary unit district's original effective date. If the
3calculation in this paragraph (6) is less than that calculated
4in paragraph (5) of this subsection (a) at the optional
5elementary unit district's original effective date, then no
6adjustments may be made. If the calculation in this paragraph
7(6) is more than that calculated in paragraph (5) of this
8subsection (a) at the optional elementary unit district's
9original effective date, then the excess must be paid as
10follows:
11        (A) If the effective date for the elementary opt-in is
12    one year after the effective date for the optional
13    elementary unit district, 100% of the calculated excess
14    shall be paid to the optional elementary unit district in
15    each of the first 4 years after the effective date of the
16    elementary opt-in.
17        (B) If the effective date for the elementary opt-in is
18    2 years after the effective date for the optional
19    elementary unit district, 75% of the calculated excess
20    shall be paid to the optional elementary unit district in
21    each of the first 4 years after the effective date of the
22    elementary opt-in.
23        (C) If the effective date for the elementary opt-in is
24    3 years after the effective date for the optional
25    elementary unit district, 50% of the calculated excess
26    shall be paid to the optional elementary unit district in

 

 

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1    each of the first 4 years after the effective date of the
2    elementary opt-in.
3        (D) If the effective date for the elementary opt-in is
4    4 years after the effective date for the optional
5    elementary unit district, 25% of the calculated excess
6    shall be paid to the optional elementary unit district in
7    each of the first 4 years after the effective date of the
8    elementary opt-in.
9        (E) If the effective date for the elementary opt-in is
10    5 years after the effective date for the optional
11    elementary unit district, the optional elementary unit
12    district is not eligible for any additional incentives due
13    to the elementary opt-in.
14    (6.5) For a school district that annexes territory detached
15from another school district whereby the enrollment of the
16annexing district increases by 90% or more as a result of the
17annexation, for the first year during which the change of
18boundaries attributable to the annexation becomes effective
19for all purposes as determined under Section 7-9 of this Code,
20the general State aid and supplemental general State aid
21calculated under this Section shall be computed for the
22district gaining territory and the district losing territory as
23constituted after the annexation and for the same districts as
24constituted prior to the annexation; and if the aggregate of
25the general State aid and supplemental general State aid as so
26computed for the district gaining territory and the district

 

 

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1losing territory as constituted after the annexation is less
2than the aggregate of the general State aid and supplemental
3general State aid as so computed for the district gaining
4territory and the district losing territory as constituted
5prior to the annexation, then a supplementary payment shall be
6made to the annexing district for the first 4 years of
7existence after the annexation, equal to the difference
8multiplied by the ratio of student enrollment in the territory
9detached to the total student enrollment in the district losing
10territory for the year prior to the effective date of the
11annexation. The amount of the total difference and the
12proportion paid to the annexing district shall be computed by
13the State Board of Education on the basis of pupil enrollment
14and other data that must be submitted to the State Board of
15Education in accordance with Section 7-14A of this Code. The
16changes to this Section made by Public Act 95-707 are intended
17to be retroactive and applicable to any annexation taking
18effect on or after July 1, 2004. For annexations that are
19eligible for payments under this paragraph (6.5) and that are
20effective on or after July 1, 2004, but before January 11, 2008
21(the effective date of Public Act 95-707), the first required
22yearly payment under this paragraph (6.5) shall be paid in the
23fiscal year of January 11, 2008 (the effective date of Public
24Act 95-707). Subsequent required yearly payments shall be paid
25in subsequent fiscal years until the payment obligation under
26this paragraph (6.5) is complete.

 

 

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1    (7) Claims for financial assistance under this subsection
2(a) may not be recomputed except as expressly provided under
3Section 18-8.05 of this Code.
4    (8) Any supplementary payment made under this subsection
5(a) must be treated as separate from all other payments made
6pursuant to Section 18-8.05 of this Code.
7    (b)(1) After the formation of a combined school district,
8as defined in Section 11E-20 of this Code, or a unit district,
9as defined in Section 11E-25 of this Code, a computation shall
10be made to determine the difference between the salaries
11effective in each of the previously existing districts on June
1230, prior to the creation of the new district. For the first 4
13years after the formation of the new district, a supplementary
14State aid reimbursement shall be paid to the new district equal
15to the difference between the sum of the salaries earned by
16each of the certificated members of the new district, while
17employed in one of the previously existing districts during the
18year immediately preceding the formation of the new district,
19and the sum of the salaries those certificated members would
20have been paid during the year immediately prior to the
21formation of the new district if placed on the salary schedule
22of the previously existing district with the highest salary
23schedule.
24    (2) After the territory of one or more school districts is
25annexed by one or more other school districts as defined in
26Article 7 of this Code, a computation shall be made to

 

 

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1determine the difference between the salaries effective in each
2annexed district and in the annexing district or districts as
3they were each constituted on June 30 preceding the date when
4the change of boundaries attributable to the annexation became
5effective for all purposes, as determined under Section 7-9 of
6this Code. For the first 4 years after the annexation, a
7supplementary State aid reimbursement shall be paid to each
8annexing district as constituted after the annexation equal to
9the difference between the sum of the salaries earned by each
10of the certificated members of the annexing district as
11constituted after the annexation, while employed in an annexed
12or annexing district during the year immediately preceding the
13annexation, and the sum of the salaries those certificated
14members would have been paid during the immediately preceding
15year if placed on the salary schedule of whichever of the
16annexing or annexed districts had the highest salary schedule
17during the immediately preceding year.
18    (3) For each new high school district formed under a school
19district conversion, as defined in Section 11E-15 of this Code,
20the State shall make a supplementary payment for 4 years equal
21to the difference between the sum of the salaries earned by
22each certified member of the new high school district, while
23employed in one of the previously existing districts, and the
24sum of the salaries those certified members would have been
25paid if placed on the salary schedule of the previously
26existing district with the highest salary schedule.

 

 

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1    (4) For each newly created partial elementary unit
2district, the State shall make a supplementary payment for 4
3years equal to the difference between the sum of the salaries
4earned by each certified member of the newly created partial
5elementary unit district, while employed in one of the
6previously existing districts that formed the partial
7elementary unit district, and the sum of the salaries those
8certified members would have been paid if placed on the salary
9schedule of the previously existing district with the highest
10salary schedule. The salary schedules used in the calculation
11shall be those in effect in the previously existing districts
12for the school year prior to the creation of the new partial
13elementary unit district.
14    (5) For an elementary district opt-in, as described in
15subsection (d) of Section 11E-30 of this Code, the salary
16difference incentive shall be computed in accordance with
17paragraph (4) of this subsection (b) as if the opted-in
18elementary district was included in the optional elementary
19unit district at the optional elementary unit district's
20original effective date. If the calculation in this paragraph
21(5) is less than that calculated in paragraph (4) of this
22subsection (b) at the optional elementary unit district's
23original effective date, then no adjustments may be made. If
24the calculation in this paragraph (5) is more than that
25calculated in paragraph (4) of this subsection (b) at the
26optional elementary unit district's original effective date,

 

 

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1then the excess must be paid as follows:
2        (A) If the effective date for the elementary opt-in is
3    one year after the effective date for the optional
4    elementary unit district, 100% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    each of the first 4 years after the effective date of the
7    elementary opt-in.
8        (B) If the effective date for the elementary opt-in is
9    2 years after the effective date for the optional
10    elementary unit district, 75% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    each of the first 4 years after the effective date of the
13    elementary opt-in.
14        (C) If the effective date for the elementary opt-in is
15    3 years after the effective date for the optional
16    elementary unit district, 50% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    each of the first 4 years after the effective date of the
19    elementary opt-in.
20        (D) If the effective date for the elementary opt-in is
21    4 years after the effective date for the partial elementary
22    unit district, 25% of the calculated excess shall be paid
23    to the optional elementary unit district in each of the
24    first 4 years after the effective date of the elementary
25    opt-in.
26        (E) If the effective date for the elementary opt-in is

 

 

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1    5 years after the effective date for the optional
2    elementary unit district, the optional elementary unit
3    district is not eligible for any additional incentives due
4    to the elementary opt-in.
5    (5.5) After the formation of a cooperative high school by 2
6or more school districts under Section 10-22.22c of this Code,
7a computation shall be made to determine the difference between
8the salaries effective in each of the previously existing high
9schools on June 30 prior to the formation of the cooperative
10high school. For the first 4 years after the formation of the
11cooperative high school, a supplementary State aid
12reimbursement shall be paid to the cooperative high school
13equal to the difference between the sum of the salaries earned
14by each of the certificated members of the cooperative high
15school while employed in one of the previously existing high
16schools during the year immediately preceding the formation of
17the cooperative high school and the sum of the salaries those
18certificated members would have been paid during the year
19immediately prior to the formation of the cooperative high
20school if placed on the salary schedule of the previously
21existing high school with the highest salary schedule.
22    (5.10) After the annexation of territory detached from
23another school district whereby the enrollment of the annexing
24district increases by 90% or more as a result of the
25annexation, a computation shall be made to determine the
26difference between the salaries effective in the district

 

 

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1gaining territory and the district losing territory as they
2each were constituted on June 30 preceding the date when the
3change of boundaries attributable to the annexation became
4effective for all purposes as determined under Section 7-9 of
5this Code. For the first 4 years after the annexation, a
6supplementary State aid reimbursement shall be paid to the
7annexing district equal to the difference between the sum of
8the salaries earned by each of the certificated members of the
9annexing district as constituted after the annexation while
10employed in the district gaining territory or the district
11losing territory during the year immediately preceding the
12annexation and the sum of the salaries those certificated
13members would have been paid during such immediately preceding
14year if placed on the salary schedule of whichever of the
15district gaining territory or district losing territory had the
16highest salary schedule during the immediately preceding year.
17To be eligible for supplementary State aid reimbursement under
18this Section, the intergovernmental agreement to be submitted
19pursuant to Section 7-14A of this Code must show that staff
20members were transferred from the control of the district
21losing territory to the control of the district gaining
22territory in the annexation. The changes to this Section made
23by Public Act 95-707 are intended to be retroactive and
24applicable to any annexation taking effect on or after July 1,
252004. For annexations that are eligible for payments under this
26paragraph (5.10) and that are effective on or after July 1,

 

 

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12004, but before January 11, 2008 (the effective date of Public
2Act 95-707), the first required yearly payment under this
3paragraph (5.10) shall be paid in the fiscal year of January
411, 2008 (the effective date of Public Act 95-707). Subsequent
5required yearly payments shall be paid in subsequent fiscal
6years until the payment obligation under this paragraph (5.10)
7is complete.
8    (5.15) After the deactivation of a school facility in
9accordance with Section 10-22.22b of this Code, a computation
10shall be made to determine the difference between the salaries
11effective in the sending school district and each receiving
12school district on June 30 prior to the deactivation of the
13school facility. For the lesser of the first 4 years after the
14deactivation of the school facility or the length of the
15deactivation agreement, including any renewals of the original
16deactivation agreement, a supplementary State aid
17reimbursement shall be paid to each receiving district equal to
18the difference between the sum of the salaries earned by each
19of the certificated members transferred to that receiving
20district as a result of the deactivation while employed in the
21sending district during the year immediately preceding the
22deactivation and the sum of the salaries those certificated
23members would have been paid during the year immediately
24preceding the deactivation if placed on the salary schedule of
25the sending or receiving district with the highest salary
26schedule.

 

 

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1    (6) The supplementary State aid reimbursement under this
2subsection (b) shall be treated as separate from all other
3payments made pursuant to Section 18-8.05 of this Code. In the
4case of the formation of a new district or cooperative high
5school or a deactivation, reimbursement shall begin during the
6first year of operation of the new district or cooperative high
7school or the first year of the deactivation, and in the case
8of an annexation of the territory of one or more school
9districts by one or more other school districts or the
10annexation of territory detached from a school district whereby
11the enrollment of the annexing district increases by 90% or
12more as a result of the annexation, reimbursement shall begin
13during the first year when the change in boundaries
14attributable to the annexation becomes effective for all
15purposes as determined pursuant to Section 7-9 of this Code,
16except that for an annexation of territory detached from a
17school district that is effective on or after July 1, 2004, but
18before January 11, 2008 (the effective date of Public Act
1995-707), whereby the enrollment of the annexing district
20increases by 90% or more as a result of the annexation,
21reimbursement shall begin during the fiscal year of January 11,
222008 (the effective date of Public Act 95-707). Each year that
23the new, annexing, or receiving district or cooperative high
24school, as the case may be, is entitled to receive
25reimbursement, the number of eligible certified members who are
26employed on October 1 in the district or cooperative high

 

 

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1school shall be certified to the State Board of Education on
2prescribed forms by October 15 and payment shall be made on or
3before November 15 of that year.
4    (c)(1) For the first year after the formation of a combined
5school district, as defined in Section 11E-20 of this Code or a
6unit district, as defined in Section 11E-25 of this Code, a
7computation shall be made totaling each previously existing
8district's audited fund balances in the educational fund,
9working cash fund, operations and maintenance fund, and
10transportation fund for the year ending June 30 prior to the
11referendum for the creation of the new district. The new
12district shall be paid supplementary State aid equal to the sum
13of the differences between the deficit of the previously
14existing district with the smallest deficit and the deficits of
15each of the other previously existing districts.
16    (2) For the first year after the annexation of all of the
17territory of one or more entire school districts by another
18school district, as defined in Article 7 of this Code,
19computations shall be made, for the year ending June 30 prior
20to the date that the change of boundaries attributable to the
21annexation is allowed by the affirmative decision issued by the
22regional board of school trustees under Section 7-6 of this
23Code, notwithstanding any effort to seek administrative review
24of the decision, totaling the annexing district's and totaling
25each annexed district's audited fund balances in their
26respective educational, working cash, operations and

 

 

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1maintenance, and transportation funds. The annexing district
2as constituted after the annexation shall be paid supplementary
3State aid equal to the sum of the differences between the
4deficit of whichever of the annexing or annexed districts as
5constituted prior to the annexation had the smallest deficit
6and the deficits of each of the other districts as constituted
7prior to the annexation.
8    (3) For the first year after the annexation of all of the
9territory of one or more entire school districts by 2 or more
10other school districts, as defined by Article 7 of this Code,
11computations shall be made, for the year ending June 30 prior
12to the date that the change of boundaries attributable to the
13annexation is allowed by the affirmative decision of the
14regional board of school trustees under Section 7-6 of this
15Code, notwithstanding any action for administrative review of
16the decision, totaling each annexing and annexed district's
17audited fund balances in their respective educational, working
18cash, operations and maintenance, and transportation funds.
19The annexing districts as constituted after the annexation
20shall be paid supplementary State aid, allocated as provided in
21this paragraph (3), in an aggregate amount equal to the sum of
22the differences between the deficit of whichever of the
23annexing or annexed districts as constituted prior to the
24annexation had the smallest deficit and the deficits of each of
25the other districts as constituted prior to the annexation. The
26aggregate amount of the supplementary State aid payable under

 

 

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1this paragraph (3) shall be allocated between or among the
2annexing districts as follows:
3        (A) the regional superintendent of schools for each
4    educational service region in which an annexed district is
5    located prior to the annexation shall certify to the State
6    Board of Education, on forms that it shall provide for that
7    purpose, the value of all taxable property in each annexed
8    district, as last equalized or assessed by the Department
9    of Revenue prior to the annexation, and the equalized
10    assessed value of each part of the annexed district that
11    was annexed to or included as a part of an annexing
12    district;
13        (B) using equalized assessed values as certified by the
14    regional superintendent of schools under clause (A) of this
15    paragraph (3), the combined audited fund balance deficit of
16    each annexed district as determined under this Section
17    shall be apportioned between or among the annexing
18    districts in the same ratio as the equalized assessed value
19    of that part of the annexed district that was annexed to or
20    included as a part of an annexing district bears to the
21    total equalized assessed value of the annexed district; and
22        (C) the aggregate supplementary State aid payment
23    under this paragraph (3) shall be allocated between or
24    among, and shall be paid to, the annexing districts in the
25    same ratio as the sum of the combined audited fund balance
26    deficit of each annexing district as constituted prior to

 

 

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1    the annexation, plus all combined audited fund balance
2    deficit amounts apportioned to that annexing district
3    under clause (B) of this subsection, bears to the aggregate
4    of the combined audited fund balance deficits of all of the
5    annexing and annexed districts as constituted prior to the
6    annexation.
7    (4) For the new elementary districts and new high school
8district formed through a school district conversion, as
9defined in Section 11E-15 of this Code or the new elementary
10district or districts and new combined high school - unit
11district formed through a multi-unit conversion, as defined in
12subsection (b) of Section 11E-30 of this Code, a computation
13shall be made totaling each previously existing district's
14audited fund balances in the educational fund, working cash
15fund, operations and maintenance fund, and transportation fund
16for the year ending June 30 prior to the referendum
17establishing the new districts. In the first year of the new
18districts, the State shall make a one-time supplementary
19payment equal to the sum of the differences between the deficit
20of the previously existing district with the smallest deficit
21and the deficits of each of the other previously existing
22districts. A district with a combined balance among the 4 funds
23that is positive shall be considered to have a deficit of zero.
24The supplementary payment shall be allocated among the newly
25formed high school and elementary districts in the manner
26provided by the petition for the formation of the districts, in

 

 

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1the form in which the petition is approved by the regional
2superintendent of schools or State Superintendent of Education
3under Section 11E-50 of this Code.
4    (5) For each newly created partial elementary unit
5district, as defined in subsection (a) or (c) of Section 11E-30
6of this Code, a computation shall be made totaling the audited
7fund balances of each previously existing district that formed
8the new partial elementary unit district in the educational
9fund, working cash fund, operations and maintenance fund, and
10transportation fund for the year ending June 30 prior to the
11referendum for the formation of the partial elementary unit
12district. In the first year of the new partial elementary unit
13district, the State shall make a one-time supplementary payment
14to the new district equal to the sum of the differences between
15the deficit of the previously existing district with the
16smallest deficit and the deficits of each of the other
17previously existing districts. A district with a combined
18balance among the 4 funds that is positive shall be considered
19to have a deficit of zero.
20    (6) For an elementary opt-in as defined in subsection (d)
21of Section 11E-30 of this Code, the deficit fund balance
22incentive shall be computed in accordance with paragraph (5) of
23this subsection (c) as if the opted-in elementary was included
24in the optional elementary unit district at the optional
25elementary unit district's original effective date. If the
26calculation in this paragraph (6) is less than that calculated

 

 

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1in paragraph (5) of this subsection (c) at the optional
2elementary unit district's original effective date, then no
3adjustments may be made. If the calculation in this paragraph
4(6) is more than that calculated in paragraph (5) of this
5subsection (c) at the optional elementary unit district's
6original effective date, then the excess must be paid as
7follows:
8        (A) If the effective date for the elementary opt-in is
9    one year after the effective date for the optional
10    elementary unit district, 100% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    the first year after the effective date of the elementary
13    opt-in.
14        (B) If the effective date for the elementary opt-in is
15    2 years after the effective date for the optional
16    elementary unit district, 75% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    the first year after the effective date of the elementary
19    opt-in.
20        (C) If the effective date for the elementary opt-in is
21    3 years after the effective date for the optional
22    elementary unit district, 50% of the calculated excess
23    shall be paid to the optional elementary unit district in
24    the first year after the effective date of the elementary
25    opt-in.
26        (D) If the effective date for the elementary opt-in is

 

 

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1    4 years after the effective date for the optional
2    elementary unit district, 25% of the calculated excess
3    shall be paid to the optional elementary unit district in
4    the first year after the effective date of the elementary
5    opt-in.
6        (E) If the effective date for the elementary opt-in is
7    5 years after the effective date for the optional
8    elementary unit district, the optional elementary unit
9    district is not eligible for any additional incentives due
10    to the elementary opt-in.
11    (6.5) For the first year after the annexation of territory
12detached from another school district whereby the enrollment of
13the annexing district increases by 90% or more as a result of
14the annexation, a computation shall be made totaling the
15audited fund balances of the district gaining territory and the
16audited fund balances of the district losing territory in the
17educational fund, working cash fund, operations and
18maintenance fund, and transportation fund for the year ending
19June 30 prior to the date that the change of boundaries
20attributable to the annexation is allowed by the affirmative
21decision of the regional board of school trustees under Section
227-6 of this Code, notwithstanding any action for administrative
23review of the decision. The annexing district as constituted
24after the annexation shall be paid supplementary State aid
25equal to the difference between the deficit of whichever
26district included in this calculation as constituted prior to

 

 

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1the annexation had the smallest deficit and the deficit of each
2other district included in this calculation as constituted
3prior to the annexation, multiplied by the ratio of equalized
4assessed value of the territory detached to the total equalized
5assessed value of the district losing territory. The regional
6superintendent of schools for the educational service region in
7which a district losing territory is located prior to the
8annexation shall certify to the State Board of Education the
9value of all taxable property in the district losing territory
10and the value of all taxable property in the territory being
11detached, as last equalized or assessed by the Department of
12Revenue prior to the annexation. To be eligible for
13supplementary State aid reimbursement under this Section, the
14intergovernmental agreement to be submitted pursuant to
15Section 7-14A of this Code must show that fund balances were
16transferred from the district losing territory to the district
17gaining territory in the annexation. The changes to this
18Section made by Public Act 95-707 are intended to be
19retroactive and applicable to any annexation taking effect on
20or after July 1, 2004. For annexations that are eligible for
21payments under this paragraph (6.5) and that are effective on
22or after July 1, 2004, but before January 11, 2008 (the
23effective date of Public Act 95-707), the required payment
24under this paragraph (6.5) shall be paid in the fiscal year of
25January 11, 2008 (the effective date of Public Act 95-707).
26    (7) For purposes of any calculation required under

 

 

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1paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
2subsection (c), a district with a combined fund balance that is
3positive shall be considered to have a deficit of zero. For
4purposes of determining each district's audited fund balances
5in its educational fund, working cash fund, operations and
6maintenance fund, and transportation fund for the specified
7year ending June 30, as provided in paragraphs (1), (2), (3),
8(4), (5), (6), and (6.5) of this subsection (c), the balance of
9each fund shall be deemed decreased by an amount equal to the
10amount of the annual property tax theretofore levied in the
11fund by the district for collection and payment to the district
12during the calendar year in which the June 30 fell, but only to
13the extent that the tax so levied in the fund actually was
14received by the district on or before or comprised a part of
15the fund on such June 30. For purposes of determining each
16district's audited fund balances, a calculation shall be made
17for each fund to determine the average for the 3 years prior to
18the specified year ending June 30, as provided in paragraphs
19(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
20of the district's expenditures in the categories "purchased
21services", "supplies and materials", and "capital outlay", as
22those categories are defined in rules of the State Board of
23Education. If this 3-year average is less than the district's
24expenditures in these categories for the specified year ending
25June 30, as provided in paragraphs (1), (2), (3), (4), (5),
26(6), and (6.5) of this subsection (c), then the 3-year average

 

 

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1shall be used in calculating the amounts payable under this
2Section in place of the amounts shown in these categories for
3the specified year ending June 30, as provided in paragraphs
4(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
5Any deficit because of State aid not yet received may not be
6considered in determining the June 30 deficits. The same basis
7of accounting shall be used by all previously existing
8districts and by all annexing or annexed districts, as
9constituted prior to the annexation, in making any computation
10required under paragraphs (1), (2), (3), (4), (5), (6), and
11(6.5) of this subsection (c).
12    (8) The supplementary State aid payments under this
13subsection (c) shall be treated as separate from all other
14payments made pursuant to Section 18-8.05 of this Code.
15    (d)(1) Following the formation of a combined school
16district, as defined in Section 11E-20 of this Code, a new unit
17district, as defined in Section 11E-25 of this Code, a new
18elementary district or districts and a new high school district
19formed through a school district conversion, as defined in
20Section 11E-15 of this Code, a new partial elementary unit
21district, as defined in Section 11E-30 of this Code, or a new
22elementary district or districts formed through a multi-unit
23conversion, as defined in subsection (b) of Section 11E-30 of
24this Code, or the annexation of all of the territory of one or
25more entire school districts by one or more other school
26districts, as defined in Article 7 of this Code, a

 

 

 

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1supplementary State aid reimbursement shall be paid for the
2number of school years determined under the following table to
3each new or annexing district equal to the sum of $4,000 for
4each certified employee who is employed by the district on a
5full-time basis for the regular term of the school year:
 
6Reorganized District's RankReorganized District's Rank
7by type of district (unit,in Average Daily Attendance
8high school, elementary)By Quintile
9in Equalized Assessed Value
10Per Pupil by Quintile
113rd, 4th,
121st2ndor 5th
13QuintileQuintileQuintile
14    1st Quintile1 year1 year1 year
15    2nd Quintile1 year2 years2 years
16    3rd Quintile2 years3 years3 years
17    4th Quintile2 years3 years3 years
18    5th Quintile2 years3 years3 years
19The State Board of Education shall make a one-time calculation
20of a reorganized district's quintile ranks. The average daily
21attendance used in this calculation shall be the best 3 months'
22average daily attendance for the district's first year. The
23equalized assessed value per pupil shall be the district's real
24property equalized assessed value used in calculating the

 

 

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1district's first-year general State aid claim, under Section
218-8.05 of this Code, divided by the best 3 months' average
3daily attendance.
4    No annexing or resulting school district shall be entitled
5to supplementary State aid under this subsection (d) unless the
6district acquires at least 30% of the average daily attendance
7of the district from which the territory is being detached or
8divided.
9    If a district results from multiple reorganizations that
10would otherwise qualify the district for multiple payments
11under this subsection (d) in any year, then the district shall
12receive a single payment only for that year based solely on the
13most recent reorganization.
14    (2) For an elementary opt-in, as defined in subsection (d)
15of Section 11E-30 of this Code, the full-time certified staff
16incentive shall be computed in accordance with paragraph (1) of
17this subsection (d), equal to the sum of $4,000 for each
18certified employee of the elementary district that opts-in who
19is employed by the optional elementary unit district on a
20full-time basis for the regular term of the school year. The
21calculation from this paragraph (2) must be paid as follows:
22        (A) If the effective date for the elementary opt-in is
23    one year after the effective date for the optional
24    elementary unit district, 100% of the amount calculated in
25    this paragraph (2) shall be paid to the optional elementary
26    unit district for the number of years calculated in

 

 

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1    paragraph (1) of this subsection (d) at the optional
2    elementary unit district's original effective date,
3    starting in the second year after the effective date of the
4    elementary opt-in.
5        (B) If the effective date for the elementary opt-in is
6    2 years after the effective date for the optional
7    elementary unit district, 75% of the amount calculated in
8    this paragraph (2) shall be paid to the optional elementary
9    unit district for the number of years calculated in
10    paragraph (1) of this subsection (d) at the optional
11    elementary unit district's original effective date,
12    starting in the second year after the effective date of the
13    elementary opt-in.
14        (C) If the effective date for the elementary opt-in is
15    3 years after the effective date for the optional
16    elementary unit district, 50% of the amount calculated in
17    this paragraph (2) shall be paid to the optional elementary
18    unit district for the number of years calculated in
19    paragraph (1) of this subsection (d) at the optional
20    elementary unit district's original effective date,
21    starting in the second year after the effective date of the
22    elementary opt-in.
23        (D) If the effective date for the elementary opt-in is
24    4 years after the effective date for the optional
25    elementary unit district, 25% of the amount calculated in
26    this paragraph (2) shall be paid to the optional elementary

 

 

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1    unit district for the number of years calculated in
2    paragraph (1) of this subsection (d) at the optional
3    elementary unit district's original effective date,
4    starting in the second year after the effective date of the
5    elementary opt-in.
6        (E) If the effective date for the elementary opt-in is
7    5 years after the effective date for the optional
8    elementary unit district, the optional elementary unit
9    district is not eligible for any additional incentives due
10    to the elementary opt-in.
11    (2.5) Following the formation of a cooperative high school
12by 2 or more school districts under Section 10-22.22c of this
13Code, a supplementary State aid reimbursement shall be paid for
143 school years to the cooperative high school equal to the sum
15of $4,000 for each certified employee who is employed by the
16cooperative high school on a full-time basis for the regular
17term of any such school year. If a cooperative high school
18results from multiple agreements that would otherwise qualify
19the cooperative high school for multiple payments under this
20Section in any year, the cooperative high school shall receive
21a single payment for that year based solely on the most recent
22agreement.
23    (2.10) Following the annexation of territory detached from
24another school district whereby the enrollment of the annexing
25district increases 90% or more as a result of the annexation, a
26supplementary State aid reimbursement shall be paid to the

 

 

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1annexing district equal to the sum of $4,000 for each certified
2employee who is employed by the annexing district on a
3full-time basis and shall be calculated in accordance with
4subsection (a) of this Section. To be eligible for
5supplementary State aid reimbursement under this Section, the
6intergovernmental agreement to be submitted pursuant to
7Section 7-14A of this Code must show that certified staff
8members were transferred from the control of the district
9losing territory to the control of the district gaining
10territory in the annexation. The changes to this Section made
11by Public Act 95-707 are intended to be retroactive and
12applicable to any annexation taking effect on or after July 1,
132004. For annexations that are eligible for payments under this
14paragraph (2.10) and that are effective on or after July 1,
152004, but before January 11, 2008 (the effective date of Public
16Act 95-707), the first required yearly payment under this
17paragraph (2.10) shall be paid in the second fiscal year after
18January 11, 2008 (the effective date of Public Act 95-707). Any
19subsequent required yearly payments shall be paid in subsequent
20fiscal years until the payment obligation under this paragraph
21(2.10) is complete.
22    (2.15) Following the deactivation of a school facility in
23accordance with Section 10-22.22b of this Code, a supplementary
24State aid reimbursement shall be paid for the lesser of 3
25school years or the length of the deactivation agreement,
26including any renewals of the original deactivation agreement,

 

 

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1to each receiving school district equal to the sum of $4,000
2for each certified employee who is employed by that receiving
3district on a full-time basis for the regular term of any such
4school year who was originally transferred to the control of
5that receiving district as a result of the deactivation.
6Receiving districts are eligible for payments under this
7paragraph (2.15) based on the certified employees transferred
8to that receiving district as a result of the deactivation and
9are not required to receive at least 30% of the deactivating
10district's average daily attendance as required under
11paragraph (1) of this subsection (d) to be eligible for
12payments.
13    (3) The supplementary State aid reimbursement payable
14under this subsection (d) shall be separate from and in
15addition to all other payments made to the district pursuant to
16any other Section of this Article.
17    (4) During May of each school year for which a
18supplementary State aid reimbursement is to be paid to a new,
19annexing, or receiving school district or cooperative high
20school pursuant to this subsection (d), the school board or
21governing board shall certify to the State Board of Education,
22on forms furnished to the school board or governing board by
23the State Board of Education for purposes of this subsection
24(d), the number of certified employees for which the district
25or cooperative high school is entitled to reimbursement under
26this Section, together with the names, certificate numbers, and

 

 

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1positions held by the certified employees.
2    (5) Upon certification by the State Board of Education to
3the State Comptroller of the amount of the supplementary State
4aid reimbursement to which a school district or cooperative
5high school is entitled under this subsection (d), the State
6Comptroller shall draw his or her warrant upon the State
7Treasurer for the payment thereof to the school district or
8cooperative high school and shall promptly transmit the payment
9to the school district or cooperative high school through the
10appropriate school treasurer.
11(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
1295-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.