State of Illinois
92nd General Assembly
Legislation

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92_HB2512

 
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 1        AN ACT relating to 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
 
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 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
 
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 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
 
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 1    support that should be available to  provide  for  the  basic
 2    education  of each pupil in Average Daily Attendance.  As set
 3    forth in this Section, each school  district  is  assumed  to
 4    exert   a  sufficient  local  taxing  effort  such  that,  in
 5    combination with the aggregate of general State financial aid
 6    provided the  district,  an  aggregate  of  State  and  local
 7    resources  are available to meet the basic education needs of
 8    pupils in the district.
 9        (2)  For the 1998-1999 school year, the Foundation  Level
10    of  support  is  $4,225.   For the 1999-2000 school year, the
11    Foundation Level of support is  $4,325.   For  the  2000-2001
12    school year, the Foundation Level of support is $4,425.
13        (3)  For  the  2001-2002 school year and each school year
14    thereafter, the Foundation Level of support is $4,425 or such
15    greater amount as may be established by law  by  the  General
16    Assembly.

17    (C)  Average Daily Attendance.
18        (1)  For   purposes  of  calculating  general  State  aid
19    pursuant to  subsection  (E),  an  Average  Daily  Attendance
20    figure  shall  be  utilized.   The  Average  Daily Attendance
21    figure for formula calculation purposes shall be the  monthly
22    average  of the actual number of pupils in attendance of each
23    school district, as further averaged for the best 3 months of
24    pupil attendance for each school district.  In compiling  the
25    figures  for  the  number  of  pupils  in  attendance, school
26    districts  and  the  State  Board  of  Education  shall,  for
27    purposes of general State  aid  funding,  conform  attendance
28    figures to the requirements of subsection (F).
29        (2)  The  Average  Daily  Attendance  figures utilized in
30    subsection (E) shall be the requisite attendance data for the
31    school year immediately preceding the school year  for  which
32    general State aid is being calculated.

33    (D)  Available Local Resources.
 
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 1        (1)  For   purposes  of  calculating  general  State  aid
 2    pursuant to subsection (E),  a  representation  of  Available
 3    Local  Resources  per  pupil,  as  that  term  is defined and
 4    determined in this subsection, shall be utilized.   Available
 5    Local  Resources  per pupil shall include a calculated dollar
 6    amount representing local school district revenues from local
 7    property  taxes  and   from   Corporate   Personal   Property
 8    Replacement  Taxes,  expressed  on  the  basis  of  pupils in
 9    Average Daily Attendance.
10        (2)  In determining  a  school  district's  revenue  from
11    local  property  taxes,  the  State  Board of Education shall
12    utilize the  equalized  assessed  valuation  of  all  taxable
13    property  of  each  school district as of September 30 of the
14    previous year.  The  equalized  assessed  valuation  utilized
15    shall  be  obtained  and determined as provided in subsection
16    (G).
17        (3)  For school districts maintaining grades kindergarten
18    through 12, local property tax revenues per  pupil  shall  be
19    calculated   as  the  product  of  the  applicable  equalized
20    assessed valuation for the district multiplied by 3.00%,  and
21    divided  by  the  district's Average Daily Attendance figure.
22    For school districts maintaining grades kindergarten  through
23    8,  local property tax revenues per pupil shall be calculated
24    as the product of the applicable equalized assessed valuation
25    for the district multiplied by  2.30%,  and  divided  by  the
26    district's  Average  Daily  Attendance  figure.   For  school
27    districts maintaining grades 9 through 12, local property tax
28    revenues per pupil shall be the applicable equalized assessed
29    valuation of the district multiplied by 1.05%, and divided by
30    the district's Average Daily Attendance figure.
31        (4)  The  Corporate  Personal  Property Replacement Taxes
32    paid to each school district during the calendar year 2 years
33    before the calendar year  in  which  a  school  year  begins,
34    divided  by  the  Average  Daily  Attendance  figure for that
 
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 1    district, shall be added to the local property  tax  revenues
 2    per  pupil  as  derived by the application of the immediately
 3    preceding paragraph (3).  The sum of these per pupil  figures
 4    for  each  school  district  shall constitute Available Local
 5    Resources as that term is utilized in subsection (E)  in  the
 6    calculation of general State aid.

 7    (E)  Computation of General State Aid.
 8        (1)  For  each  school  year, the amount of general State
 9    aid allotted to a school district shall be  computed  by  the
10    State Board of Education as provided in this subsection.
11        (2)  For  any  school  district for which Available Local
12    Resources per pupil is less than the product  of  0.93  times
13    the  Foundation  Level,  general  State aid for that district
14    shall be calculated as an  amount  equal  to  the  Foundation
15    Level  minus  Available  Local  Resources,  multiplied by the
16    Average Daily Attendance of the school district.
17        (3)  For any school district for  which  Available  Local
18    Resources  per  pupil is equal to or greater than the product
19    of 0.93 times the Foundation Level and less than the  product
20    of 1.75 times the Foundation Level, the general State aid per
21    pupil  shall  be a decimal proportion of the Foundation Level
22    derived  using  a  linear  algorithm.   Under   this   linear
23    algorithm,  the  calculated general State aid per pupil shall
24    decline  in  direct  linear  fashion  from  0.07  times   the
25    Foundation  Level  for a school district with Available Local
26    Resources equal to the product of 0.93 times  the  Foundation
27    Level,  to  0.05  times  the  Foundation  Level  for a school
28    district with Available Local Resources equal to the  product
29    of  1.75  times  the  Foundation  Level.   The  allocation of
30    general State  aid  for  school  districts  subject  to  this
31    paragraph  3  shall  be  the calculated general State aid per
32    pupil figure multiplied by the Average  Daily  Attendance  of
33    the school district.
34        (4)  For  any  school  district for which Available Local
 
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 1    Resources per pupil equals or exceeds  the  product  of  1.75
 2    times  the  Foundation  Level,  the general State aid for the
 3    school district shall be calculated as the  product  of  $218
 4    multiplied  by  the  Average  Daily  Attendance of the school
 5    district.
 6        (5)  The amount of  general  State  aid  allocated  to  a
 7    school  district  for  the  1999-2000 school year meeting the
 8    requirements set forth in paragraph  (4)  of  subsection  (G)
 9    shall  be  increased  by an amount equal to the general State
10    aid that would have been received by  the  district  for  the
11    1998-1999  school  year by utilizing the Extension Limitation
12    Equalized Assessed Valuation as calculated in  paragraph  (4)
13    of subsection (G) less the general State aid allotted for the
14    1998-1999  school  year.   This  amount shall be deemed a one
15    time increase, and shall not affect any future general  State
16    aid allocations.

17    (F)  Compilation of Average Daily Attendance.
18        (1)  Each  school district shall, by July 1 of each year,
19    submit to the State Board of Education, on  forms  prescribed
20    by  the  State Board of Education, attendance figures for the
21    school year that began in the preceding calendar  year.   The
22    attendance  information  so  transmitted  shall  identify the
23    average daily attendance figures for each month of the school
24    year, except that any days of attendance in August  shall  be
25    added to the month of September and any days of attendance in
26    June shall be added to the month of May.
27        Except  as  otherwise  provided  in this Section, days of
28    attendance by pupils shall be counted only  for  sessions  of
29    not  less  than  5  clock  hours of school work per day under
30    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
31    personnel   or   volunteer   personnel   when   engaging   in
32    non-teaching   duties  and  supervising  in  those  instances
33    specified in subsection (a) of Section 10-22.34 and paragraph
34    10 of Section 34-18, with pupils of legal school age  and  in
 
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 1    kindergarten and grades 1 through 12.
 2        Days  of attendance by tuition pupils shall be accredited
 3    only to the districts that pay the tuition  to  a  recognized
 4    school.  However,  a general State aid adjustment grant shall
 5    be made for students enrolled in a school district who do not
 6    reside in the school district to offset any loss  in  general
 7    State aid.
 8        (2)  Days  of  attendance  by pupils of less than 5 clock
 9    hours of school shall be subject to the following  provisions
10    in the compilation of Average Daily Attendance.
11             (a)  Pupils  regularly  enrolled  in a public school
12        for only a part of the school day may be counted  on  the
13        basis  of  1/6 day for every class hour of instruction of
14        40 minutes or more attended pursuant to such enrollment.
15             (b)  Days of attendance may be  less  than  5  clock
16        hours  on the opening and closing of the school term, and
17        upon the first day of pupil attendance, if preceded by  a
18        day  or  days  utilized  as  an  institute  or  teachers'
19        workshop.
20             (c)  A  session  of  4  or  more  clock hours may be
21        counted as a day of attendance upon certification by  the
22        regional   superintendent,  and  approved  by  the  State
23        Superintendent  of  Education  to  the  extent  that  the
24        district has been forced to use daily multiple sessions.
25             (d)  A session of 3  or  more  clock  hours  may  be
26        counted  as a day of attendance (1) when the remainder of
27        the school day or at least 2 hours in the evening of that
28        day is utilized for an in-service  training  program  for
29        teachers,  up  to  a maximum of 5 days per school year of
30        which a maximum of 4 days of such 5 days may be used  for
31        parent-teacher  conferences, provided a district conducts
32        an in-service training program  for  teachers  which  has
33        been  approved  by the State Superintendent of Education;
34        or, in lieu of 4 such days, 2 full days may be  used,  in
 
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 1        which  event  each  such  day  may be counted as a day of
 2        attendance; and  (2)  when  days  in  addition  to  those
 3        provided  in  item (1) are scheduled by a school pursuant
 4        to its school improvement plan adopted under  Article  34
 5        or its revised or amended school improvement plan adopted
 6        under  Article 2, provided that (i) such sessions of 3 or
 7        more clock  hours  are  scheduled  to  occur  at  regular
 8        intervals, (ii) the remainder of the school days in which
 9        such  sessions occur are utilized for in-service training
10        programs  or  other  staff  development  activities   for
11        teachers,  and  (iii)  a  sufficient number of minutes of
12        school work under the direct supervision of teachers  are
13        added to the school days between such regularly scheduled
14        sessions  to  accumulate  not  less  than  the  number of
15        minutes by which such sessions of 3 or more  clock  hours
16        fall  short  of 5 clock hours. Any full days used for the
17        purposes of this paragraph shall not  be  considered  for
18        computing  average  daily attendance.  Days scheduled for
19        in-service   training   programs,    staff    development
20        activities,   or   parent-teacher   conferences   may  be
21        scheduled  separately  for  different  grade  levels  and
22        different attendance centers of the district.
23             (e)  A session of not less than one  clock  hour  of
24        teaching  hospitalized  or homebound pupils on-site or by
25        telephone to the classroom may be counted as 1/2  day  of
26        attendance,  however  these pupils must receive 4 or more
27        clock hours of instruction to be counted for a  full  day
28        of attendance.
29             (f)  A  session  of  at  least  4 clock hours may be
30        counted as a day of attendance for  first  grade  pupils,
31        and  pupils in full day kindergartens, and a session of 2
32        or more hours may be counted as 1/2 day of attendance  by
33        pupils  in  kindergartens  which  provide only 1/2 day of
34        attendance.
 
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 1             (g)  For children with disabilities  who  are  below
 2        the  age of 6 years and who cannot attend 2 or more clock
 3        hours  because  of  their  disability  or  immaturity,  a
 4        session of not less than one clock hour may be counted as
 5        1/2 day of attendance; however for  such  children  whose
 6        educational needs so require a session of 4 or more clock
 7        hours may be counted as a full day of attendance.
 8             (h)  A  recognized  kindergarten  which provides for
 9        only 1/2 day of attendance by each pupil shall  not  have
10        more  than  1/2 day of attendance counted in any one day.
11        However, kindergartens may count 2 1/2 days of attendance
12        in any 5 consecutive school days.  When a  pupil  attends
13        such  a  kindergarten  for  2 half days on any one school
14        day, the pupil shall have the  following  day  as  a  day
15        absent  from  school,  unless the school district obtains
16        permission in writing from the  State  Superintendent  of
17        Education.  Attendance at kindergartens which provide for
18        a  full  day of attendance by each pupil shall be counted
19        the same as attendance by first grade pupils.   Only  the
20        first  year  of  attendance  in one kindergarten shall be
21        counted, except in  case  of  children  who  entered  the
22        kindergarten   in  their  fifth  year  whose  educational
23        development requires a second  year  of  kindergarten  as
24        determined  under  the rules and regulations of the State
25        Board of Education.

26    (G)  Equalized Assessed Valuation Data.
27        (1)  For purposes of the calculation of  Available  Local
28    Resources  required  pursuant  to  subsection  (D), the State
29    Board of  Education  shall  secure  from  the  Department  of
30    Revenue  the value as equalized or assessed by the Department
31    of Revenue of all taxable property of every school  district,
32    together  with  (i) the applicable tax rate used in extending
33    taxes for the funds of the district as of September 30 of the
34    previous year and (ii)  the  limiting  rate  for  all  school
 
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 1    districts  subject  to  property tax extension limitations as
 2    imposed under the Property Tax Extension Limitation Law.
 3        This equalized assessed valuation, as adjusted further by
 4    the requirements of this subsection, shall be utilized in the
 5    calculation of Available Local Resources.
 6        (2)  The equalized assessed valuation  in  paragraph  (1)
 7    shall be adjusted, as applicable, in the following manner:
 8             (a)  For the purposes of calculating State aid under
 9        this  Section,  with  respect  to  any  part  of a school
10        district within a redevelopment project area  in  respect
11        to   which  a  municipality  has  adopted  tax  increment
12        allocation  financing  pursuant  to  the  Tax   Increment
13        Allocation  Redevelopment Act, Sections 11-74.4-1 through
14        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
15        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
16        11-74.6-50 of the Illinois Municipal Code, no part of the
17        current equalized assessed  valuation  of  real  property
18        located in any such project area which is attributable to
19        an  increase  above  the total initial equalized assessed
20        valuation of such property shall be used as part  of  the
21        equalized  assessed valuation of the district, until such
22        time as all redevelopment project costs have  been  paid,
23        as  provided  in  Section  11-74.4-8 of the Tax Increment
24        Allocation Redevelopment Act or in Section 11-74.6-35  of
25        the Industrial Jobs Recovery Law.  For the purpose of the
26        equalized  assessed  valuation of the district, the total
27        initial  equalized  assessed  valuation  or  the  current
28        equalized assessed valuation, whichever is  lower,  shall
29        be  used  until  such  time  as all redevelopment project
30        costs have been paid.
31             (b)  The real property equalized assessed  valuation
32        for  a  school  district shall be adjusted by subtracting
33        from the real property value as equalized or assessed  by
34        the  Department  of  Revenue  for  the district an amount
 
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 1        computed by dividing the amount of any abatement of taxes
 2        under Section 18-170 of the Property Tax  Code  by  3.00%
 3        for  a  district  maintaining grades kindergarten through
 4        12,  by  2.30%  for   a   district   maintaining   grades
 5        kindergarten  through  8,  or  by  1.05%  for  a district
 6        maintaining grades 9 through 12 and adjusted by an amount
 7        computed by dividing the amount of any abatement of taxes
 8        under subsection (a) of Section 18-165  of  the  Property
 9        Tax  Code  by the same percentage rates for district type
10        as specified in this subparagraph (b).
11        (3)  For the 1999-2000 school year and each  school  year
12    thereafter, if a school district meets all of the criteria of
13    this subsection (G)(3), the school district's Available Local
14    Resources  shall be calculated under subsection (D) using the
15    district's Extension Limitation Equalized Assessed  Valuation
16    as calculated under this subsection (G)(3).
17        For  purposes  of  this  subsection  (G)(3) the following
18    terms shall have the following meanings:
19             "Budget Year":  The school year  for  which  general
20        State aid is calculated and awarded under subsection (E).
21             "Base  Tax Year": The property tax levy year used to
22        calculate the Budget Year  allocation  of  general  State
23        aid.
24             "Preceding  Tax  Year":  The  property tax levy year
25        immediately preceding the Base Tax Year.
26             "Base Tax Year's Tax Extension": The product of  the
27        equalized assessed valuation utilized by the County Clerk
28        in  the  Base Tax Year multiplied by the limiting rate as
29        calculated  by  the  County  Clerk  and  defined  in  the
30        Property Tax Extension Limitation Law.
31             "Preceding Tax Year's Tax Extension": The product of
32        the equalized assessed valuation utilized by  the  County
33        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
34        Operating Tax Rate as defined in subsection (A).
 
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 1             "Extension  Limitation  Ratio":  A  numerical ratio,
 2        certified by the County Clerk, in which the numerator  is
 3        the  Base Tax Year's Tax Extension and the denominator is
 4        the Preceding Tax Year's Tax Extension.
 5             "Operating Tax Rate":  The  operating  tax  rate  as
 6        defined in subsection (A).
 7        If a school district is subject to property tax extension
 8    limitations  as  imposed  under  the  Property  Tax Extension
 9    Limitation Law, and if the Available Local Resources of  that
10    school  district  as  calculated  pursuant  to subsection (D)
11    using the Base Tax Year are less than  the  product  of  1.75
12    times  the  Foundation  Level  for the Budget Year, the State
13    Board of Education shall calculate the  Extension  Limitation
14    Equalized  Assessed  Valuation  of  that  district.   For the
15    1999-2000 school year,  the  Extension  Limitation  Equalized
16    Assessed  Valuation of a school district as calculated by the
17    State Board of Education shall be equal to the product of the
18    district's  1996  Equalized  Assessed   Valuation   and   the
19    district's  Extension  Limitation  Ratio.   For the 2000-2001
20    school year and each school year  thereafter,  the  Extension
21    Limitation  Equalized Assessed Valuation of a school district
22    as calculated by the State Board of Education shall be  equal
23    to  the  product  of the last calculated Extension Limitation
24    Equalized Assessed Valuation  and  the  district's  Extension
25    Limitation  Ratio.  If  the  Extension  Limitation  Equalized
26    Assessed  Valuation  of a school district as calculated under
27    this subsection (G)(3) is less than the district's  equalized
28    assessed  valuation  as  calculated  pursuant  to subsections
29    (G)(1) and (G)(2),  then  for  purposes  of  calculating  the
30    district's  general State aid for the Budget Year pursuant to
31    subsection (E), that Extension Limitation Equalized  Assessed
32    Valuation  shall  be  utilized  to  calculate  the district's
33    Available Local Resources under subsection (D).
34        (4)  For the purposes of calculating  general  State  aid
 
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 1    for  the  1999-2000  school  year  only, if a school district
 2    experienced  a  triennial  reassessment  on   the   equalized
 3    assessed  valuation  used  in  calculating  its general State
 4    financial aid apportionment for the  1998-1999  school  year,
 5    the  State  Board  of Education shall calculate the Extension
 6    Limitation Equalized Assessed Valuation that would have  been
 7    used to calculate the district's 1998-1999 general State aid.
 8    This amount shall equal the product of the equalized assessed
 9    valuation  used  to  calculate  general  State  aid  for  the
10    1997-1998 school year and the district's Extension Limitation
11    Ratio.    If  the  Extension  Limitation  Equalized  Assessed
12    Valuation of the school district  as  calculated  under  this
13    paragraph  (4) is less than the district's equalized assessed
14    valuation utilized in calculating  the  district's  1998-1999
15    general   State   aid   allocation,   then  for  purposes  of
16    calculating the district's  general  State  aid  pursuant  to
17    paragraph  (5)  of  subsection (E), that Extension Limitation
18    Equalized Assessed Valuation shall be utilized  to  calculate
19    the district's Available Local Resources.
20        (5)  For  school  districts  having  a  majority of their
21    equalized assessed  valuation  in  any  county  except  Cook,
22    DuPage,  Kane,  Lake,  McHenry,  or  Will,  if  the amount of
23    general State aid allocated to the school  district  for  the
24    1999-2000 school year under the provisions of subsection (E),
25    (H),  and  (J)  of  this  Section  is less than the amount of
26    general State aid allocated to the district for the 1998-1999
27    school year under these subsections, then the  general  State
28    aid  of the district for the 1999-2000 school year only shall
29    be increased by the difference between  these  amounts.   The
30    total payments made under this paragraph (5) shall not exceed
31    $14,000,000.    Claims  shall  be  prorated  if  they  exceed
32    $14,000,000.

33    (H)  Supplemental General State Aid.
34        (1)  In addition  to  the  general  State  aid  a  school
 
                            -15-               LRB9205054NTsb
 1    district  is  allotted pursuant to subsection (E), qualifying
 2    school districts shall receive a grant, paid  in  conjunction
 3    with   a  district's  payments  of  general  State  aid,  for
 4    supplemental general State aid based upon  the  concentration
 5    level  of  children  from  low-income  households  within the
 6    school district. Supplemental State aid grants  provided  for
 7    school  districts under this subsection shall be appropriated
 8    for distribution to school districts as part of the same line
 9    item in which the  general  State  financial  aid  of  school
10    districts is appropriated under this Section. For purposes of
11    this  subsection,  the  term "Low-Income Concentration Level"
12    shall be the low-income eligible pupil count  from  the  most
13    recently  available  federal  census  divided  by the Average
14    Daily Attendance of the school  district.  If,  however,  the
15    percentage  decrease  from the 2 most recent federal censuses
16    in the low-income eligible  pupil  count  of  a  high  school
17    district  with fewer than 400 students exceeds by 75% or more
18    the percentage change in the total low-income eligible  pupil
19    count   of  contiguous  elementary  school  districts,  whose
20    boundaries are coterminous with the high school district, the
21    high school district's low-income eligible pupil  count  from
22    the  earlier  federal  census shall be the number used as the
23    low-income eligible pupil count for the high school district,
24    for purposes of this subsection (H).
25        (2)  Supplemental general  State  aid  pursuant  to  this
26    subsection shall be provided as follows:
27             (a)  For  any  school  district  with  a  Low Income
28        Concentration Level of at least 20% and  less  than  35%,
29        the grant for any school year shall be $800 multiplied by
30        the low income eligible pupil count.
31             (b)  For  any  school  district  with  a  Low Income
32        Concentration Level of at least 35% and  less  than  50%,
33        the  grant  for the 1998-1999 school year shall be $1,100
34        multiplied by the low income eligible pupil count.
 
                            -16-               LRB9205054NTsb
 1             (c)  For any  school  district  with  a  Low  Income
 2        Concentration  Level  of  at least 50% and less than 60%,
 3        the grant for the 1998-99 school  year  shall  be  $1,500
 4        multiplied by the low income eligible pupil count.
 5             (d)  For  any  school  district  with  a  Low Income
 6        Concentration Level of 60% or more,  the  grant  for  the
 7        1998-99 school year shall be $1,900 multiplied by the low
 8        income eligible pupil count.
 9             (e)  For  the  1999-2000  school year, the per pupil
10        amount specified  in  subparagraphs  (b),  (c),  and  (d)
11        immediately  above  shall be increased to $1,243, $1,600,
12        and $2,000, respectively.
13             (f)  For the 2000-2001 school year,  the  per  pupil
14        amounts  specified  in  subparagraphs  (b),  (c), and (d)
15        immediately above shall be $1,273,  $1,640,  and  $2,050,
16        respectively.
17        (3)  School districts with an Average Daily Attendance of
18    more  than  1,000  and  less  than  50,000  that  qualify for
19    supplemental general State aid pursuant  to  this  subsection
20    shall  submit a plan to the State Board of Education prior to
21    October 30 of each year for the use of  the  funds  resulting
22    from  this  grant  of  supplemental general State aid for the
23    improvement of instruction in  which  priority  is  given  to
24    meeting  the education needs of disadvantaged children.  Such
25    plan  shall  be  submitted  in  accordance  with  rules   and
26    regulations promulgated by the State Board of Education.
27        (4)  School districts with an Average Daily Attendance of
28    50,000  or  more  that qualify for supplemental general State
29    aid  pursuant  to  this  subsection  shall  be  required   to
30    distribute  from funds available pursuant to this Section, no
31    less than  $261,000,000  in  accordance  with  the  following
32    requirements:
33             (a)  The  required  amounts  shall be distributed to
34        the attendance centers within the district in  proportion
 
                            -17-               LRB9205054NTsb
 1        to  the  number  of  pupils  enrolled  at each attendance
 2        center who are eligible to receive free or  reduced-price
 3        lunches  or  breakfasts under the federal Child Nutrition
 4        Act of 1966 and  under  the  National  School  Lunch  Act
 5        during the immediately preceding school year.
 6             (b)  The   distribution   of   these   portions   of
 7        supplemental  and  general  State  aid  among  attendance
 8        centers  according  to  these  requirements  shall not be
 9        compensated for or  contravened  by  adjustments  of  the
10        total  of  other  funds  appropriated  to  any attendance
11        centers, and the Board of Education shall utilize funding
12        from one or several sources in order to  fully  implement
13        this provision annually prior to the opening of school.
14             (c)  Each attendance center shall be provided by the
15        school  district  a  distribution of noncategorical funds
16        and other categorical funds to which an attendance center
17        is entitled under law in order that the general State aid
18        and  supplemental   general   State   aid   provided   by
19        application  of  this  subsection supplements rather than
20        supplants the noncategorical funds and other  categorical
21        funds  provided  by the school district to the attendance
22        centers.
23             (d)  Any funds made available under this  subsection
24        that  by  reason of the provisions of this subsection are
25        not required to be allocated and provided  to  attendance
26        centers  may be used and appropriated by the board of the
27        district for any lawful school purpose.
28             (e)  Funds received by an attendance center pursuant
29        to this subsection shall be used by the attendance center
30        at the discretion  of  the  principal  and  local  school
31        council for programs to improve educational opportunities
32        at  qualifying schools through the following programs and
33        services: early childhood education, reduced  class  size
34        or  improved adult to student classroom ratio, enrichment
 
                            -18-               LRB9205054NTsb
 1        programs, remedial  assistance,  attendance  improvement,
 2        and  other  educationally  beneficial  expenditures which
 3        supplement the regular and basic programs  as  determined
 4        by  the  State  Board of Education.  Funds provided shall
 5        not be expended for any political or lobbying purposes as
 6        defined by board rule.
 7             (f)  Each district subject to the provisions of this
 8        subdivision (H)(4) shall submit  an  acceptable  plan  to
 9        meet  the educational needs of disadvantaged children, in
10        compliance with the requirements of  this  paragraph,  to
11        the  State  Board  of  Education prior to July 15 of each
12        year. This plan shall be consistent with the decisions of
13        local school councils concerning the  school  expenditure
14        plans  developed  in  accordance  with  part 4 of Section
15        34-2.3.  The State Board shall approve or reject the plan
16        within 60 days after its  submission.   If  the  plan  is
17        rejected,  the  district  shall  give  written  notice of
18        intent  to  modify  the  plan  within  15  days  of   the
19        notification of rejection and then submit a modified plan
20        within  30  days  after the date of the written notice of
21        intent to modify.  Districts  may  amend  approved  plans
22        pursuant  to  rules  promulgated  by  the  State Board of
23        Education.
24             Upon notification by the State  Board  of  Education
25        that  the district has not submitted a plan prior to July
26        15 or a modified plan within the  time  period  specified
27        herein,  the  State  aid  funds  affected by that plan or
28        modified plan shall be withheld by  the  State  Board  of
29        Education until a plan or modified plan is submitted.
30             If  the  district  fails  to distribute State aid to
31        attendance centers in accordance with an  approved  plan,
32        the  plan for the following year shall allocate funds, in
33        addition  to  the  funds  otherwise  required   by   this
34        subsection,   to  those  attendance  centers  which  were
 
                            -19-               LRB9205054NTsb
 1        underfunded during the previous year in amounts equal  to
 2        such underfunding.
 3             For  purposes  of  determining  compliance with this
 4        subsection in relation to the requirements of  attendance
 5        center  funding,  each district subject to the provisions
 6        of this subsection shall submit as a separate document by
 7        December 1 of each year a report of expenditure data  for
 8        the  prior  year  in  addition to any modification of its
 9        current plan.  If it is determined that there has been  a
10        failure to comply with the expenditure provisions of this
11        subsection  regarding  contravention  or supplanting, the
12        State Superintendent of Education shall, within  60  days
13        of  receipt  of  the  report, notify the district and any
14        affected local school council.  The district shall within
15        45 days of receipt of that notification inform the  State
16        Superintendent of Education of the remedial or corrective
17        action  to be taken, whether  by amendment of the current
18        plan, if feasible, or by adjustment in the plan  for  the
19        following  year.   Failure  to  provide  the  expenditure
20        report  or  the  notification  of  remedial or corrective
21        action in a timely manner shall result in  a  withholding
22        of the affected funds.
23             The  State Board of Education shall promulgate rules
24        and regulations  to  implement  the  provisions  of  this
25        subsection.   No  funds  shall  be  released  under  this
26        subdivision (H)(4) to any district that has not submitted
27        a  plan  that  has  been  approved  by the State Board of
28        Education.

29    (I)  General State Aid for Newly Configured School Districts.
30        (1)  For  a  new  school  district  formed  by  combining
31    property  included  totally  within  2  or  more   previously
32    existing  school  districts,  for its first year of existence
33    the general State aid  and  supplemental  general  State  aid
34    calculated  under  this Section shall be computed for the new
 
                            -20-               LRB9205054NTsb
 1    district and for the previously existing districts for  which
 2    property is totally included within the new district.  If the
 3    computation on the basis of the previously existing districts
 4    is  greater,  a supplementary payment equal to the difference
 5    shall be made for the first 4 years of existence of  the  new
 6    district.
 7        (2)  For  a  school  district  which  annexes  all of the
 8    territory of one or more entire other school  districts,  for
 9    the   first  year  during  which  the  change  of  boundaries
10    attributable to such annexation  becomes  effective  for  all
11    purposes as determined under Section 7-9 or 7A-8, the general
12    State aid and supplemental general State aid calculated under
13    this  Section  shall be computed for the annexing district as
14    constituted after the annexation and  for  the  annexing  and
15    each annexed district as constituted prior to the annexation;
16    and  if  the  computation  on  the  basis of the annexing and
17    annexed districts as constituted prior to the  annexation  is
18    greater,  a  supplementary  payment  equal  to the difference
19    shall be made for the first  4  years  of  existence  of  the
20    annexing school district as constituted upon such annexation.
21        (3)  For  2  or  more school districts which annex all of
22    the territory of one or more entire other  school  districts,
23    and  for 2 or more community unit districts which result upon
24    the division (pursuant to petition under  Section  11A-2)  of
25    one  or more other unit school districts into 2 or more parts
26    and which together include all of the parts into  which  such
27    other  unit  school district or districts are so divided, for
28    the  first  year  during  which  the  change  of   boundaries
29    attributable to such annexation or division becomes effective
30    for  all  purposes as determined under Section 7-9 or 11A-10,
31    as the case may be, the general State  aid  and  supplemental
32    general  State  aid  calculated  under  this Section shall be
33    computed  for  each  annexing  or   resulting   district   as
34    constituted  after  the  annexation  or division and for each
 
                            -21-               LRB9205054NTsb
 1    annexing and annexed district,  or  for  each  resulting  and
 2    divided  district,  as constituted prior to the annexation or
 3    division; and if the aggregate of the general State  aid  and
 4    supplemental  general  State  aid  as  so  computed  for  the
 5    annexing  or  resulting  districts  as  constituted after the
 6    annexation or division is less  than  the  aggregate  of  the
 7    general  State  aid  and supplemental general State aid as so
 8    computed for the annexing and annexed districts, or  for  the
 9    resulting  and divided districts, as constituted prior to the
10    annexation or division, then a supplementary payment equal to
11    the difference shall be made and allocated between  or  among
12    the annexing or resulting districts, as constituted upon such
13    annexation  or  division,  for  the  first  4  years of their
14    existence.  The total difference payment shall  be  allocated
15    between  or  among the annexing or resulting districts in the
16    same ratio as the pupil enrollment from that portion  of  the
17    annexed  or divided district or districts which is annexed to
18    or included in each such annexing or resulting district bears
19    to the total pupil enrollment  from  the  entire  annexed  or
20    divided  district  or  districts, as such pupil enrollment is
21    determined for the school year last ending prior to the  date
22    when  the change of boundaries attributable to the annexation
23    or division becomes effective for all purposes.   The  amount
24    of  the total difference payment and the amount thereof to be
25    allocated to the annexing or  resulting  districts  shall  be
26    computed  by  the  State  Board  of Education on the basis of
27    pupil enrollment and other data which shall be  certified  to
28    the State Board of Education, on forms which it shall provide
29    for  that  purpose, by the regional superintendent of schools
30    for each educational service region in which the annexing and
31    annexed districts, or resulting  and  divided  districts  are
32    located.
33        (3.5)  Claims   for   financial   assistance  under  this
34    subsection (I) shall not be recomputed  except  as  expressly
 
                            -22-               LRB9205054NTsb
 1    provided under this Section.
 2        (4)  Any supplementary payment made under this subsection
 3    (I) shall be treated as separate from all other payments made
 4    pursuant to this Section.

 5    (J)  Supplementary Grants in Aid.
 6        (1)  Notwithstanding   any   other   provisions  of  this
 7    Section, the amount of the aggregate  general  State  aid  in
 8    combination  with  supplemental  general State aid under this
 9    Section for which each school district is eligible  shall  be
10    no  less  than  the amount of the aggregate general State aid
11    entitlement that was received by the district  under  Section
12    18-8  (exclusive  of  amounts received under subsections 5(p)
13    and 5(p-5) of that Section)  for  the  1997-98  school  year,
14    pursuant  to the provisions of that Section as it was then in
15    effect.  If  a  school  district  qualifies  to   receive   a
16    supplementary  payment  made  under  this subsection (J), the
17    amount of the aggregate general State aid in combination with
18    supplemental general State aid under this Section  which that
19    district is eligible to receive for each school year shall be
20    no less than the amount of the aggregate  general  State  aid
21    entitlement  that  was received by the district under Section
22    18-8 (exclusive of amounts received  under  subsections  5(p)
23    and  5(p-5)  of  that Section) for the 1997-1998 school year,
24    pursuant to the provisions of that Section as it was then  in
25    effect.
26        (2)  If,  as provided in paragraph (1) of this subsection
27    (J), a school district is to receive aggregate general  State
28    aid  in combination with supplemental general State aid under
29    this Section for the 1998-99 school year and  any  subsequent
30    school  year  that  in  any such school year is less than the
31    amount of the aggregate general State  aid  entitlement  that
32    the district received for the 1997-98 school year, the school
33    district  shall  also  receive, from a separate appropriation
34    made for purposes of this  subsection  (J),  a  supplementary
 
                            -23-               LRB9205054NTsb
 1    payment  that is equal to the amount of the difference in the
 2    aggregate State aid figures as described in paragraph (1).
 3        (3)  (Blank).

 4    (K)  Grants to Laboratory and Alternative Schools.
 5        In calculating the amount to be  paid  to  the  governing
 6    board  of  a  public  university  that  operates a laboratory
 7    school under this Section or to any alternative  school  that
 8    is  operated  by  a  regional  superintendent of schools, the
 9    State Board of Education shall require by rule such reporting
10    requirements as it deems necessary.
11        As used in this  Section,  "laboratory  school"  means  a
12    public  school  which  is  created  and  operated by a public
13    university and approved by the State Board of Education.  The
14    governing board of a public university which  receives  funds
15    from  the  State  Board  under  this  subsection  (K) may not
16    increase the number of students enrolled  in  its  laboratory
17    school  from  a  single district, if that district is already
18    sending 50 or more students, except under a mutual  agreement
19    between the school board of a student's district of residence
20    and  the  university which operates the laboratory school.  A
21    laboratory school may not  have  more  than  1,000  students,
22    excluding  students  with disabilities in a special education
23    program.
24        As used in this Section,  "alternative  school"  means  a
25    public  school  which  is  created and operated by a Regional
26    Superintendent of Schools and approved by the State Board  of
27    Education.   Such  alternative  schools  may offer courses of
28    instruction for which  credit  is  given  in  regular  school
29    programs,  courses  to  prepare  students for the high school
30    equivalency testing program or  vocational  and  occupational
31    training.   A regional superintendent of schools may contract
32    with a school district or a public community college district
33    to  operate  an  alternative  school.   An alternative school
34    serving more than  one  educational  service  region  may  be
 
                            -24-               LRB9205054NTsb
 1    established by the regional superintendents of schools of the
 2    affected  educational service regions.  An alternative school
 3    serving more than  one  educational  service  region  may  be
 4    operated  under such terms as the regional superintendents of
 5    schools of those educational service regions may agree.
 6        Each laboratory and alternative  school  shall  file,  on
 7    forms  provided  by the State Superintendent of Education, an
 8    annual  State  aid  claim  which  states  the  Average  Daily
 9    Attendance of the school's students by  month.   The  best  3
10    months'  Average  Daily Attendance shall be computed for each
11    school. The general State aid entitlement shall  be  computed
12    by multiplying the applicable Average Daily Attendance by the
13    Foundation Level as determined under this Section.

14    (L)  Payments,   Additional   Grants   in   Aid   and   Other
15    Requirements.
16        (1)  For  a school district operating under the financial
17    supervision of an Authority created under  Article  34A,  the
18    general  State  aid  otherwise payable to that district under
19    this Section, but not the  supplemental  general  State  aid,
20    shall  be  reduced  by  an amount equal to the budget for the
21    operations of the Authority as certified by the Authority  to
22    the  State  Board  of  Education, and an amount equal to such
23    reduction shall be paid to the  Authority  created  for  such
24    district for its operating expenses in the manner provided in
25    Section 18-11.  The remainder of general State school aid for
26    any  such  district  shall be paid in accordance with Article
27    34A when that Article provides for a disposition  other  than
28    that provided by this Article.
29        (2)  (Blank).
30        (3)  Summer school.  Summer school payments shall be made
31    as provided in Section 18-4.3.

32    (M)  Education Funding Advisory Board.
33        The Education Funding Advisory Board, hereinafter in this
 
                            -25-               LRB9205054NTsb
 1    subsection (M) referred to as the "Board", is hereby created.
 2    The Board shall consist of 5 members who are appointed by the
 3    Governor,  by  and with the advice and consent of the Senate.
 4    The  members  appointed  shall  include  representatives   of
 5    education,  business,  and  the  general  public.  One of the
 6    members so appointed shall be designated by the  Governor  at
 7    the  time  the  appointment is made as the chairperson of the
 8    Board. The initial members of the Board may be appointed  any
 9    time after the effective date of this amendatory Act of 1997.
10    The  regular  term of each member of the Board shall be for 4
11    years from the third Monday of January of the year  in  which
12    the  term  of the member's appointment is to commence, except
13    that of the 5 initial  members  appointed  to  serve  on  the
14    Board,  the  member who is appointed as the chairperson shall
15    serve for a term that commences on the date  of  his  or  her
16    appointment and expires on the third Monday of January, 2002,
17    and  the  remaining  4  members,  by  lots drawn at the first
18    meeting of the Board that is held after  all  5  members  are
19    appointed,  shall  determine  2  of their number to serve for
20    terms  that  commence  on  the  date  of   their   respective
21    appointments and expire on the third Monday of January, 2001,
22    and 2 of their number to serve for terms that commence on the
23    date of their respective appointments and expire on the third
24    Monday  of  January, 2000.  All members appointed to serve on
25    the Board shall serve until their respective  successors  are
26    appointed  and  confirmed.   Vacancies shall be filled in the
27    same manner  as  original  appointments.   If  a  vacancy  in
28    membership  occurs  at  a  time  when  the  Senate  is not in
29    session, the Governor  shall  make  a  temporary  appointment
30    until  the  next  meeting of the Senate, when he or she shall
31    appoint, by and with the advice and consent of the Senate,  a
32    person  to  fill  that membership for the unexpired term.  If
33    the Senate is not in session when  the  initial  appointments
34    are  made, those appointments shall be made as in the case of
 
                            -26-               LRB9205054NTsb
 1    vacancies.
 2        The Education Funding  Advisory  Board  shall  be  deemed
 3    established,   and  the  initial  members  appointed  by  the
 4    Governor to serve as members of the Board shall take  office,
 5    on the date that the Governor makes his or her appointment of
 6    the  fifth initial member of the Board, whether those initial
 7    members  are  then  serving  pursuant  to   appointment   and
 8    confirmation  or  pursuant to temporary appointments that are
 9    made by the Governor as in the case of vacancies.
10        The State Board of Education  shall  provide  such  staff
11    assistance  to  the  Education  Funding  Advisory Board as is
12    reasonably required for the proper performance by  the  Board
13    of its responsibilities.
14        For  school  years  after  the 2000-2001 school year, the
15    Education Funding Advisory Board, in  consultation  with  the
16    State  Board  of  Education,  shall  make  recommendations as
17    provided in this subsection (M) to the General  Assembly  for
18    the foundation level under subdivision (B)(3) of this Section
19    and  for the supplemental general State aid grant level under
20    subsection (H)  of  this  Section  for  districts  with  high
21    concentrations  of  children  from  poverty.  The recommended
22    foundation level shall be determined based on  a  methodology
23    which   incorporates  the  basic  education  expenditures  of
24    low-spending schools exhibiting  high  academic  performance.
25    The   Education   Funding  Advisory  Board  shall  make  such
26    recommendations to the General Assembly on January 1  of  odd
27    numbered years, beginning January 1, 2001.

28    (N)  (Blank).

29    (O)  References.
30        (1)  References in other laws to the various subdivisions
31    of Section 18-8 as that Section existed before its repeal and
32    replacement  by this Section 18-8.05 shall be deemed to refer
33    to the corresponding provisions of this Section  18-8.05,  to
 
                            -27-               LRB9205054NTsb
 1    the extent that those references remain applicable.
 2        (2)  References  in  other  laws to State Chapter 1 funds
 3    shall be deemed to refer to the  supplemental  general  State
 4    aid provided under subsection (H) of this Section.
 5    (Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
 6    90-653,  eff.  7-29-98;  90-654,  eff.  7-29-98; 90-655, eff.
 7    7-30-98; 90-802, eff. 12-15-98; 90-815, eff. 2-11-99;  91-24,
 8    eff.  7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99; 91-111,
 9    eff. 7-14-99; 91-357, eff.  7-29-99;  91-533,  eff.  8-13-99;
10    revised 8-27-99.)

11        Section  99.  Effective date.  This Act takes effect upon
12    becoming law.

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