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90_SB0848eng 110 ILCS 805/2-16.02 from Ch. 122, par. 102-16.02 Amends the provisions of the Public Community College Act. Authorizes the Illinois Community College Board to specify the measures that will be used to distribute grants to community colleges. Authorizes the Board to apply a percentage factor to the statewide threshold in determining the level of equalization funding and a minimum equalization grant for a qualifying district that becomes ineligible for any or for full equalization funding due to threshold prorations. Requires community college districts to maintain in-district tuition rates per semester credit hour as determined by the State Board and provides for a reduction in equalization funding for districts that fail to meet the minimum required rate until, by July 1, 2001, districts fail to qualify for equalization funding if they do not meet the required minimum in-district tuition rate. Also revises provisions relative to small district, special populations, and workforce preparation grants and provides for deferred maintenance grants based upon criteria established by the State Board. Eliminates provisions under which a one-time operating expense start-up grant was provided to Community College District No. 540. Effective July 1, 1997. LRB9003040THpkA SB848 Engrossed LRB9003040THpkA 1 AN ACT to amend the Public Community College Act by 2 changing Section 2-16.02. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Public Community College Act is amended 6 by changing Section 2-16.02 as follows: 7 (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02) 8 Sec. 2-16.02. Any community college district that 9 maintains a community college recognized by the State Board 10 shall receive, when eligible, grants enumerated in this 11 Section. Funded semester credit hours or other measures as 12 specified by the State Board shall be used to distribute 13 grants to community colleges.Except for equalization grants,14retirees health insurance grants, grants to districts15established pursuant to Section 6-6.1, and grants for special16initiatives, all grants specified in this Section shall be17based on funded semester credit hours.Funded semester 18 credit hours shall be defined, for purposes of this Section, 19 as the greater of (1) the number of semester credit hours, or 20 equivalent, in all funded instructional categories of 21 students who have been certified as being in attendance at 22 midterm during the respective terms of the base fiscal year 23 or (2) the average of semester credit hours, or equivalent, 24 in all funded instructional categories of students who have 25 been certified as being in attendance at midterm during the 26 respective terms of the base fiscal year and the 2 prior 27 fiscal years. For purposes of this Section, "base fiscal 28 year" means the fiscal year 2 years prior to the fiscal year 29 for which the grants are appropriated. Such students shall 30 have been residents of Illinois and shall have been enrolled 31 in courses that are part of instructional program categories SB848 Engrossed -2- LRB9003040THpkA 1 approved by the State Board and that are applicable toward an 2 associate degree or certificate. Courses are not eligible 3 for reimbursement where the district receives federal or 4 State financing or both, except financing through the State 5 Board, for 50% or more of the program costs with the 6 exception of courses offered by contract with the Department 7 of Corrections in correctional institutions.After8distributing a grant of up to one-tenth of 1% of the total9available credit hour grant funding to each district with10less than 75,000 funded semester credit hours exclusive of11Department of Corrections credit hours, the remainingCredit 12 hour grants shall be paid based on rates per funded semester 13 credit hour or equivalent calculated by the State Board for 14 funded instructional categories using cost of instruction, 15 enrollment, inflation, and other relevant factors. Small 16 district grants, in an amount to be determined by the State 17 Board, shall be made to each district with less than 75,000 18 funded semester credit hours, exclusive of Department of 19 Corrections credit hours. 20Grants forEqualization grants shall bedistributed to21each district that falls below a statewide threshold22 calculated by the State Board by determining a local revenue 23 factor for each district by: (A) adding (1) each district's 24theCorporate Personal Property Replacement Fund allocations 25 from the base fiscal year or the average of the base fiscal 26 year and prior year, whichever is less, divided by the 27 applicable statewide average tax rate to (2) the district's 28 most recently audited year's equalized assessed valuation or 29 the average of the most recently audited year and prior year, 30 whichever is less, (B) then dividing by the district'snumber31ofaudited full-time equivalent resident students for the 32 base fiscal year or the average for the base fiscal year and 33 the 2 prior fiscal years, whichever is greater, and (C) then 34 multiplying by the applicable statewide average tax rate. SB848 Engrossed -3- LRB9003040THpkA 1 The State Board shall calculate a statewide weighted average 2 threshold by applyingusethe same methodology to the totals 3 of all districts' Corporate Personal Property Tax Replacement 4 Fund allocations, equalized assessed valuations, and audited 5 full-time equivalent district resident students and 6 multiplying by the applicable statewide average tax rate 7calculate a local revenue factor for each district. The 8 difference between the statewide weighted average threshold 9 and the local revenue factor, multiplied by the number of 10 full-time equivalent resident students, shall determine the 11 amount of equalization funding that each district is eligible 12 to receive. A percentage factor, as determined by the State 13 Board, may be applied to the statewide threshold as a method 14 for allocating equalization funding. A minimum equalization 15 grant of an amount per district as determined by the State 16 Board shall be established for any community college district 17 which qualifies for an equalization grant based upon the 18 preceding criteria, but becomes ineligible for equalization 19 funding, or would have received a grant of less than the 20 minimum equalization grant, due to threshold prorations 21 applied to reduce equalization funding. As of July 1, 1997, 22 community college districts must maintain a minimum required 23 in-district tuition rate per semester credit hour as 24 determined by the State Board. For each fiscal year between 25 July 1, 1997 and June 30, 2001, districts not meeting the 26 minimum required rate will be subject to a percent reduction 27 of equalization funding as determined by the State Board. As 28 of July 1, 2001, districts must meet the required minimum 29 in-district tuition rate to qualify for equalization funding. 30 A special populations grant of a base amount as 31 determined by the State Board$20,000 per community college32 shall be distributed to each community college district., and33 Any remaining appropriated funds for special populations 34 purposes shall be distributed based on factors as determined SB848 Engrossed -4- LRB9003040THpkA 1 by the State Boardprograms with the exception of moneys2appropriated as grants for unique special populations3initiatives created by the State Board shall be distributed4proportionately to each community college district on the5basis of each district's share of the State total funded6semester credit hours, or equivalent, in7remedial/developmental and adult basic education/adult8secondary education courses. Each community college 9 district's expenditures of funds from those grants shall be 10 limited to courses and services related to programs for 11 educationally disadvantaged and minority students as 12 specified by the State Board. 13 A workforce preparation grant of a base grant amount as 14 determined by the State Board$35,000shall be distributed to 15 each community college district., andAny remaining 16 appropriated funds for workforce preparation programswith17the exception of monies appropriated as grants for special18workforce preparation initiatives created by the State Board19 shall be distributed based on factors as determined by the 20 State Boardproportionately to each community college21district on the basis of each district's share of the State22total funded semester credit hours, or equivalent, in23business occupational, technical occupational, and health24occupational courses. Each community college district's 25 expenditures of funds from those grants shall be limited to 26 workforce preparation activities and services as specified by 27 the State Board. 28 An advanced technology equipment grant shall be 29 distributed proportionately to each community college 30 district based on each district's share of the State total 31 funded semester credit hours, or equivalent, in business 32 occupational, technical occupational, and health occupational 33 courses or other measures as determined by the State Board. 34 Each community college district's expenditures of funds from SB848 Engrossed -5- LRB9003040THpkA 1 those grants shall be limited to procurement of equipment for 2 curricula impacted by technological advances as specified by 3 the State Board. 4 A retirees health insurance grant shall be distributed 5 proportionately to each community college district or entity 6 created pursuant to Section 3-55 based oneach district's7share ofthe total number of community college retirees in 8 the State on July 1 of the fiscal year prior to the fiscal 9 year for which the grants are appropriated, as determined by 10 the State Board.Each community college district's11 Expenditures of funds from those grants shall be limited to 12 payment of costs associated withthe provision ofretirees' 13 health insurance. 14 A deferred maintenance grant shall be distributed to each 15 community college district based upon criteria as determined 16 by the State Board. Each community college district's 17 expenditures of funds from those grants shall be limited to 18 deferred maintenance activities specified by the State Board. 19 A grant shall be provided to the Illinois Occupational 20 Information Coordinating Committee for the purpose of 21 providing the State Board with labor market information by 22 updating the Occupational Information System and HORIZONS 23 Career Information System and by providing labor market 24 information and technical assistance, that grant to be 25 provided in its entirety during the first quarter of the 26 fiscal year. 27A grant shall be provided to Community College District28#540, that district having been formed under the provisions29of Section 6-6.1, for the purpose of providing funds for the30district to meet operating expenses. The State Board shall31certify, prepare, and submit to the State Comptroller during32August of the fiscal year a voucher setting forth a one-time33payment of any Education Assistance Fund appropriation, and34during November, February, and May of the fiscal year aSB848 Engrossed -6- LRB9003040THpkA 1voucher setting forth equal payments of General Revenue Fund2appropriations. The Comptroller shall cause a warrant to be3drawn for the amount due, payable to Community College4District #540, within 15 days following the receipt of each5such voucher.6 The State Board shall distribute such otherspecial7 grants as may be authorized or appropriated by the General 8 Assembly. 9 Each community college district entitled to State grants 10 under this Section must submit a report of its enrollment to 11 the State Board not later than 30 days following the end of 12 each semester, quarter, or term in a format prescribed by the 13 State Board. These semester credit hours, or equivalent, 14 shall be certified by each district on forms provided by the 15 State Board. Each district's certified semester credit 16 hours, or equivalent, are subject to audit pursuant to 17 Section 3-22.1. 18 The State Board shall certify, prepare, and submit to the 19 State Comptroller during August, November, February, and May 20 of each fiscal year vouchers setting forth an amount equal to 21 25% of thedistricts' totalgrants approved by the State 22 Board for credit hour grants, small district grants, special 23 populations grants, workforce preparation grants, 24 equalization grants, advanced technology equipment grants, 25 deferred maintenance grants, and retirees health insurance 26 grants. The State Board shall prepare and submit to the State 27 Comptroller vouchers for special initiatives grant payments 28 as set forth in the contracts executed pursuant to 29 appropriations received for special initiatives. The 30 Comptroller shall cause his warrants to be drawn for the 31 respective amounts due, payable to each community college 32 district, within 15 days following the receipt of such 33 vouchers. If the amount appropriated for grants is different 34 from the amount provided for such grants under this Act, the SB848 Engrossed -7- LRB9003040THpkA 1 grants shall be proportionately reduced or increased 2 accordingly. 3 For the purposes of this Section, "resident student" 4 means a student in a community college district who maintains 5 residency in that district or meets other residency 6 definitions established by the State Board, and who was 7 enrolled either in one of the approved instructional program 8 categories in that district, or in another community college 9 district to which the resident's district is paying tuition 10 under Section 6-2 or with which the resident's district has 11 entered into a cooperative agreement in lieu of such tuition. 12 For the purposes of this Section, a "full-time 13 equivalent" student is equal to 30 semester credit hours. 14 The Illinois Community College Board Contracts and Grants 15 Fund is hereby created in the State Treasury. Items of 16 income to this fund shall include any grants, awards, 17 endowments, or like proceeds, and where appropriate, other 18 funds made available through contracts with governmental, 19 public, and private agencies or persons. The General 20 Assembly shall from time to time make appropriations payable 21 from such fund for the support, improvement, and expenses of 22 the State Board and Illinois community college districts. 23 (Source: P.A. 88-103; 88-553; 89-141, eff. 7-14-95; 89-281, 24 eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.) 25 Section 99. Effective date. This Act takes effect July 26 1, 1997.