State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]


92_HB2523ham002

 










                                             LRB9206774NTsbam

 1                    AMENDMENT TO HOUSE BILL 2523

 2        AMENDMENT NO.     .  Amend House Bill 2523  by  replacing
 3    everything after the enacting clause with the following:

 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  school  year  and  subsequent  school  years.  The
13    system of general State financial aid provided  for  in  this
14    Section  is designed to assure that, through a combination of
15    State  financial  aid  and  required  local  resources,   the
16    financial  support  provided  each  pupil  in  Average  Daily
17    Attendance   equals   or   exceeds  a  prescribed  per  pupil
18    Foundation Level.  This formula approach imputes a  level  of
19    per  pupil  Available  Local  Resources  and provides for the
20    basis to  calculate  a  per  pupil  level  of  general  State
21    financial  aid that, when added to Available Local Resources,
 
                            -2-              LRB9206774NTsbam
 1    equals or exceeds the Foundation Level.  The  amount  of  per
 2    pupil  general  State  financial aid for school districts, in
 3    general,  varies  in  inverse  relation  to  Available  Local
 4    Resources.  Per pupil amounts  are  based  upon  each  school
 5    district's  Average  Daily Attendance as that term is defined
 6    in this Section.
 7        (2)  In addition to general State financial  aid,  school
 8    districts  with  specified levels or concentrations of pupils
 9    from  low  income  households   are   eligible   to   receive
10    supplemental  general  State financial aid grants as provided
11    pursuant to subsection (H). The supplemental State aid grants
12    provided for school districts under subsection (H)  shall  be
13    appropriated  for distribution to school districts as part of
14    the same line item in which the general State  financial  aid
15    of school districts is appropriated under this Section.
16        (3)  To  receive financial assistance under this Section,
17    school districts are required to file claims with  the  State
18    Board of Education, subject to the following requirements:
19             (a)  Any  school  district which fails for any given
20        school year to maintain school as required by law, or  to
21        maintain  a recognized school is not eligible to file for
22        such school year any claim upon the Common  School  Fund.
23        In  case  of  nonrecognition  of  one  or more attendance
24        centers  in  a  school   district   otherwise   operating
25        recognized  schools,  the  claim of the district shall be
26        reduced  in  the  proportion  which  the  Average   Daily
27        Attendance  in  the  attendance center or centers bear to
28        the Average Daily Attendance in the school  district.   A
29        "recognized  school"  means any public school which meets
30        the standards as established for recognition by the State
31        Board of Education.   A  school  district  or  attendance
32        center  not  having  recognition  status  at the end of a
33        school term is entitled to receive State aid payments due
34        upon  a  legal  claim  which  was  filed  while  it   was
 
                            -3-              LRB9206774NTsbam
 1        recognized.
 2             (b)  School district claims filed under this Section
 3        are subject to Sections 18-9, 18-10, and 18-12, except as
 4        otherwise provided in this Section.
 5             (c)  If  a  school  district  operates  a  full year
 6        school under Section 10-19.1, the general  State  aid  to
 7        the  school  district  shall  be  determined by the State
 8        Board of Education in accordance  with  this  Section  as
 9        near as may be applicable.
10             (d) (Blank).
11        (4)  Except  as  provided in subsections (H) and (L), the
12    board of any district receiving any of  the  grants  provided
13    for  in  this  Section  may  apply those funds to any fund so
14    received  for  which  that  board  is  authorized   to   make
15    expenditures by law.
16        School  districts  are  not  required  to exert a minimum
17    Operating Tax Rate in order to qualify for  assistance  under
18    this Section.
19        (5)  As  used  in  this Section the following terms, when
20    capitalized, shall have the meaning ascribed herein:
21             (a)  "Average Daily Attendance":  A count  of  pupil
22        attendance   in  school,  averaged  as  provided  for  in
23        subsection  (C)  and  utilized  in  deriving  per   pupil
24        financial support levels.
25             (b)  "Available  Local Resources":  A computation of
26        local financial  support,  calculated  on  the  basis  of
27        Average Daily Attendance and derived as provided pursuant
28        to subsection (D).
29             (c)  "Corporate    Personal   Property   Replacement
30        Taxes":  Funds paid to local school districts pursuant to
31        "An Act in  relation  to  the  abolition  of  ad  valorem
32        personal  property  tax  and  the replacement of revenues
33        lost thereby, and amending and repealing certain Acts and
34        parts of Acts in connection therewith", certified  August
 
                            -4-              LRB9206774NTsbam
 1        14, 1979, as amended (Public Act 81-1st S.S.-1).
 2             (d)  "Foundation  Level":  A prescribed level of per
 3        pupil financial support as  provided  for  in  subsection
 4        (B).
 5             (e)  "Operating  Tax  Rate":   All  school  district
 6        property taxes extended for all purposes, except Bond and
 7        Interest,  Summer  School, Rent, Capital Improvement, and
 8        Vocational Education Building purposes.

 9    (B)  Foundation Level.
10        (1)  The Foundation Level is a figure established by  the
11    State  representing  the minimum level of per pupil financial
12    support that should be available to  provide  for  the  basic
13    education  of each pupil in Average Daily Attendance.  As set
14    forth in this Section, each school  district  is  assumed  to
15    exert   a  sufficient  local  taxing  effort  such  that,  in
16    combination with the aggregate of general State financial aid
17    provided the  district,  an  aggregate  of  State  and  local
18    resources  are available to meet the basic education needs of
19    pupils in the district.
20        (2)  For the 1998-1999 school year, the Foundation  Level
21    of  support  is  $4,225.   For the 1999-2000 school year, the
22    Foundation Level of support is  $4,325.   For  the  2000-2001
23    school year, the Foundation Level of support is $4,425.
24        (3)  For  the  2001-2002 school year and each school year
25    thereafter, the Foundation Level of support is $4,425 or such
26    greater amount as may be established by law  by  the  General
27    Assembly.

28    (C)  Average Daily Attendance.
29        (1)  For   purposes  of  calculating  general  State  aid
30    pursuant to  subsection  (E),  an  Average  Daily  Attendance
31    figure  shall  be  utilized.   The  Average  Daily Attendance
32    figure for formula calculation purposes shall be the  monthly
33    average  of the actual number of pupils in attendance of each
 
                            -5-              LRB9206774NTsbam
 1    school district, as further averaged for the best 3 months of
 2    pupil attendance for each school district.  In compiling  the
 3    figures  for  the  number  of  pupils  in  attendance, school
 4    districts  and  the  State  Board  of  Education  shall,  for
 5    purposes of general State  aid  funding,  conform  attendance
 6    figures to the requirements of subsection (F).
 7        (2)  The  Average  Daily  Attendance  figures utilized in
 8    subsection (E) shall be the requisite attendance data for the
 9    school year immediately preceding the school year  for  which
10    general State aid is being calculated.

11    (D)  Available Local Resources.
12        (1)  For   purposes  of  calculating  general  State  aid
13    pursuant to subsection (E),  a  representation  of  Available
14    Local  Resources  per  pupil,  as  that  term  is defined and
15    determined in this subsection, shall be utilized.   Available
16    Local  Resources  per pupil shall include a calculated dollar
17    amount representing local school district revenues from local
18    property  taxes  and   from   Corporate   Personal   Property
19    Replacement  Taxes,  expressed  on  the  basis  of  pupils in
20    Average Daily Attendance.
21        (2)  In determining  a  school  district's  revenue  from
22    local  property  taxes,  the  State  Board of Education shall
23    utilize the  equalized  assessed  valuation  of  all  taxable
24    property  of  each  school district as of September 30 of the
25    previous year.  The  equalized  assessed  valuation  utilized
26    shall  be  obtained  and determined as provided in subsection
27    (G).
28        (3)  For school districts maintaining grades kindergarten
29    through 12, local property tax revenues per  pupil  shall  be
30    calculated   as  the  product  of  the  applicable  equalized
31    assessed valuation for the district multiplied by 3.00%,  and
32    divided  by  the  district's Average Daily Attendance figure.
33    For school districts maintaining grades kindergarten  through
34    8,  local property tax revenues per pupil shall be calculated
 
                            -6-              LRB9206774NTsbam
 1    as the product of the applicable equalized assessed valuation
 2    for the district multiplied by  2.30%,  and  divided  by  the
 3    district's  Average  Daily  Attendance  figure.   For  school
 4    districts maintaining grades 9 through 12, local property tax
 5    revenues per pupil shall be the applicable equalized assessed
 6    valuation of the district multiplied by 1.05%, and divided by
 7    the district's Average Daily Attendance figure.
 8        (4)  The  Corporate  Personal  Property Replacement Taxes
 9    paid to each school district during the calendar year 2 years
10    before the calendar year  in  which  a  school  year  begins,
11    divided  by  the  Average  Daily  Attendance  figure for that
12    district, shall be added to the local property  tax  revenues
13    per  pupil  as  derived by the application of the immediately
14    preceding paragraph (3).  The sum of these per pupil  figures
15    for  each  school  district  shall constitute Available Local
16    Resources as that term is utilized in subsection (E)  in  the
17    calculation of general State aid.

18    (E)  Computation of General State Aid.
19        (1)  For  each  school  year, the amount of general State
20    aid allotted to a school district shall be  computed  by  the
21    State Board of Education as provided in this subsection.
22        (2)  For  any  school  district for which Available Local
23    Resources per pupil is less than the product  of  0.93  times
24    the  Foundation  Level,  general  State aid for that district
25    shall be calculated as an  amount  equal  to  the  Foundation
26    Level  minus  Available  Local  Resources,  multiplied by the
27    Average Daily Attendance of the school district.
28        (3)  For any school district for  which  Available  Local
29    Resources  per  pupil is equal to or greater than the product
30    of 0.93 times the Foundation Level and less than the  product
31    of 1.75 times the Foundation Level, the general State aid per
32    pupil  shall  be a decimal proportion of the Foundation Level
33    derived  using  a  linear  algorithm.   Under   this   linear
34    algorithm,  the  calculated general State aid per pupil shall
 
                            -7-              LRB9206774NTsbam
 1    decline  in  direct  linear  fashion  from  0.07  times   the
 2    Foundation  Level  for a school district with Available Local
 3    Resources equal to the product of 0.93 times  the  Foundation
 4    Level,  to  0.05  times  the  Foundation  Level  for a school
 5    district with Available Local Resources equal to the  product
 6    of  1.75  times  the  Foundation  Level.   The  allocation of
 7    general State  aid  for  school  districts  subject  to  this
 8    paragraph  3  shall  be  the calculated general State aid per
 9    pupil figure multiplied by the Average  Daily  Attendance  of
10    the school district.
11        (4)  For  any  school  district for which Available Local
12    Resources per pupil equals or exceeds  the  product  of  1.75
13    times  the  Foundation  Level,  the general State aid for the
14    school district shall be calculated as the  product  of  $218
15    multiplied  by  the  Average  Daily  Attendance of the school
16    district.
17        (5)  The amount of  general  State  aid  allocated  to  a
18    school  district  for  the  1999-2000 school year meeting the
19    requirements set forth in paragraph  (4)  of  subsection  (G)
20    shall  be  increased  by an amount equal to the general State
21    aid that would have been received by  the  district  for  the
22    1998-1999  school  year by utilizing the Extension Limitation
23    Equalized Assessed Valuation as calculated in  paragraph  (4)
24    of subsection (G) less the general State aid allotted for the
25    1998-1999  school  year.   This  amount shall be deemed a one
26    time increase, and shall not affect any future general  State
27    aid allocations.

28    (F)  Compilation of Average Daily Attendance.
29        (1)  Each  school district shall, by July 1 of each year,
30    submit to the State Board of Education, on  forms  prescribed
31    by  the  State Board of Education, attendance figures for the
32    school year that began in the preceding calendar  year.   The
33    attendance  information  so  transmitted  shall  identify the
34    average daily attendance figures for each month of the school
 
                            -8-              LRB9206774NTsbam
 1    year, except that any days of attendance in August  shall  be
 2    added to the month of September and any days of attendance in
 3    June shall be added to the month of May.
 4        Except  as  otherwise  provided  in this Section, days of
 5    attendance by pupils shall be counted only  for  sessions  of
 6    not  less  than  5  clock  hours of school work per day under
 7    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 8    personnel   or   volunteer   personnel   when   engaging   in
 9    non-teaching   duties  and  supervising  in  those  instances
10    specified in subsection (a) of Section 10-22.34 and paragraph
11    10 of Section 34-18, with pupils of legal school age  and  in
12    kindergarten and grades 1 through 12.
13        Days  of attendance by tuition pupils shall be accredited
14    only to the districts that pay the tuition  to  a  recognized
15    school.
16        (2)  Days  of  attendance  by pupils of less than 5 clock
17    hours of school shall be subject to the following  provisions
18    in the compilation of Average Daily Attendance.
19             (a)  Pupils  regularly  enrolled  in a public school
20        for only a part of the school day may be counted  on  the
21        basis  of  1/6 day for every class hour of instruction of
22        40 minutes or more attended pursuant to such enrollment.
23             (b)  Days of attendance may be  less  than  5  clock
24        hours  on the opening and closing of the school term, and
25        upon the first day of pupil attendance, if preceded by  a
26        day  or  days  utilized  as  an  institute  or  teachers'
27        workshop.
28             (c)  A  session  of  4  or  more  clock hours may be
29        counted as a day of attendance upon certification by  the
30        regional   superintendent,  and  approved  by  the  State
31        Superintendent  of  Education  to  the  extent  that  the
32        district has been forced to use daily multiple sessions.
33             (d)  A session of 3  or  more  clock  hours  may  be
34        counted  as a day of attendance (1) when the remainder of
 
                            -9-              LRB9206774NTsbam
 1        the school day or at least 2 hours in the evening of that
 2        day is utilized for an in-service  training  program  for
 3        teachers,  up  to  a maximum of 5 days per school year of
 4        which a maximum of 4 days of such 5 days may be used  for
 5        parent-teacher  conferences, provided a district conducts
 6        an in-service training program  for  teachers  which  has
 7        been  approved  by the State Superintendent of Education;
 8        or, in lieu of 4 such days, 2 full days may be  used,  in
 9        which  event  each  such  day  may be counted as a day of
10        attendance; and  (2)  when  days  in  addition  to  those
11        provided  in  item (1) are scheduled by a school pursuant
12        to its school improvement plan adopted under  Article  34
13        or its revised or amended school improvement plan adopted
14        under  Article 2, provided that (i) such sessions of 3 or
15        more clock  hours  are  scheduled  to  occur  at  regular
16        intervals, (ii) the remainder of the school days in which
17        such  sessions occur are utilized for in-service training
18        programs  or  other  staff  development  activities   for
19        teachers,  and  (iii)  a  sufficient number of minutes of
20        school work under the direct supervision of teachers  are
21        added to the school days between such regularly scheduled
22        sessions  to  accumulate  not  less  than  the  number of
23        minutes by which such sessions of 3 or more  clock  hours
24        fall  short  of 5 clock hours. Any full days used for the
25        purposes of this paragraph shall not  be  considered  for
26        computing  average  daily attendance.  Days scheduled for
27        in-service   training   programs,    staff    development
28        activities,   or   parent-teacher   conferences   may  be
29        scheduled  separately  for  different  grade  levels  and
30        different attendance centers of the district.
31             (e)  A session of not less than one  clock  hour  of
32        teaching  hospitalized  or homebound pupils on-site or by
33        telephone to the classroom may be counted as 1/2  day  of
34        attendance,  however  these pupils must receive 4 or more
 
                            -10-             LRB9206774NTsbam
 1        clock hours of instruction to be counted for a  full  day
 2        of attendance.
 3             (f)  A  session  of  at  least  4 clock hours may be
 4        counted as a day of attendance for  first  grade  pupils,
 5        and  pupils in full day kindergartens, and a session of 2
 6        or more hours may be counted as 1/2 day of attendance  by
 7        pupils  in  kindergartens  which  provide only 1/2 day of
 8        attendance.
 9             (g)  For children with disabilities  who  are  below
10        the  age of 6 years and who cannot attend 2 or more clock
11        hours  because  of  their  disability  or  immaturity,  a
12        session of not less than one clock hour may be counted as
13        1/2 day of attendance; however for  such  children  whose
14        educational needs so require a session of 4 or more clock
15        hours may be counted as a full day of attendance.
16             (h)  A  recognized  kindergarten  which provides for
17        only 1/2 day of attendance by each pupil shall  not  have
18        more  than  1/2 day of attendance counted in any one day.
19        However, kindergartens may count 2 1/2 days of attendance
20        in any 5 consecutive school days.  When a  pupil  attends
21        such  a  kindergarten  for  2 half days on any one school
22        day, the pupil shall have the  following  day  as  a  day
23        absent  from  school,  unless the school district obtains
24        permission in writing from the  State  Superintendent  of
25        Education.  Attendance at kindergartens which provide for
26        a  full  day of attendance by each pupil shall be counted
27        the same as attendance by first grade pupils.   Only  the
28        first  year  of  attendance  in one kindergarten shall be
29        counted, except in  case  of  children  who  entered  the
30        kindergarten   in  their  fifth  year  whose  educational
31        development requires a second  year  of  kindergarten  as
32        determined  under  the rules and regulations of the State
33        Board of Education.

34    (G)  Equalized Assessed Valuation Data.
 
                            -11-             LRB9206774NTsbam
 1        (1)  For purposes of the calculation of  Available  Local
 2    Resources  required  pursuant  to  subsection  (D), the State
 3    Board of  Education  shall  secure  from  the  Department  of
 4    Revenue  the value as equalized or assessed by the Department
 5    of Revenue of all taxable property of every school  district,
 6    together  with  (i) the applicable tax rate used in extending
 7    taxes for the funds of the district as of September 30 of the
 8    previous year and (ii)  the  limiting  rate  for  all  school
 9    districts  subject  to  property tax extension limitations as
10    imposed under the Property Tax Extension Limitation Law.
11        This equalized assessed valuation, as adjusted further by
12    the requirements of this subsection, shall be utilized in the
13    calculation of Available Local Resources.
14        (2)  The equalized assessed valuation  in  paragraph  (1)
15    shall be adjusted, as applicable, in the following manner:
16             (a)  For the purposes of calculating State aid under
17        this  Section,  with  respect  to  any  part  of a school
18        district within a redevelopment project area  in  respect
19        to   which  a  municipality  has  adopted  tax  increment
20        allocation  financing  pursuant  to  the  Tax   Increment
21        Allocation  Redevelopment Act, Sections 11-74.4-1 through
22        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
23        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
24        11-74.6-50 of the Illinois Municipal Code, no part of the
25        current equalized assessed  valuation  of  real  property
26        located in any such project area which is attributable to
27        an  increase  above  the total initial equalized assessed
28        valuation of such property shall be used as part  of  the
29        equalized  assessed valuation of the district, until such
30        time as all redevelopment project costs have  been  paid,
31        as  provided  in  Section  11-74.4-8 of the Tax Increment
32        Allocation Redevelopment Act or in Section 11-74.6-35  of
33        the Industrial Jobs Recovery Law.  For the purpose of the
34        equalized  assessed  valuation of the district, the total
 
                            -12-             LRB9206774NTsbam
 1        initial  equalized  assessed  valuation  or  the  current
 2        equalized assessed valuation, whichever is  lower,  shall
 3        be  used  until  such  time  as all redevelopment project
 4        costs have been paid.
 5             (b)  The real property equalized assessed  valuation
 6        for  a  school  district shall be adjusted by subtracting
 7        from the real property value as equalized or assessed  by
 8        the  Department  of  Revenue  for  the district an amount
 9        computed by dividing the amount of any abatement of taxes
10        under Section 18-170 of the Property Tax  Code  by  3.00%
11        for  a  district  maintaining grades kindergarten through
12        12,  by  2.30%  for   a   district   maintaining   grades
13        kindergarten  through  8,  or  by  1.05%  for  a district
14        maintaining grades 9 through 12 and adjusted by an amount
15        computed by dividing the amount of any abatement of taxes
16        under subsection (a) of Section 18-165  of  the  Property
17        Tax  Code  by the same percentage rates for district type
18        as specified in this subparagraph (b).
19        (3)  For the 1999-2000 school year and each  school  year
20    thereafter, if a school district meets all of the criteria of
21    this subsection (G)(3), the school district's Available Local
22    Resources  shall be calculated under subsection (D) using the
23    district's Extension Limitation Equalized Assessed  Valuation
24    as calculated under this subsection (G)(3).
25        For  purposes  of  this  subsection  (G)(3) the following
26    terms shall have the following meanings:
27             "Budget Year":  The school year  for  which  general
28        State aid is calculated and awarded under subsection (E).
29             "Base  Tax Year": The property tax levy year used to
30        calculate the Budget Year  allocation  of  general  State
31        aid.
32             "Preceding  Tax  Year":  The  property tax levy year
33        immediately preceding the Base Tax Year.
34             "Base Tax Year's Tax Extension": The product of  the
 
                            -13-             LRB9206774NTsbam
 1        equalized assessed valuation utilized by the County Clerk
 2        in  the  Base Tax Year multiplied by the limiting rate as
 3        calculated  by  the  County  Clerk  and  defined  in  the
 4        Property Tax Extension Limitation Law.
 5             "Preceding Tax Year's Tax Extension": The product of
 6        the equalized assessed valuation utilized by  the  County
 7        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
 8        Operating Tax Rate as defined in subsection (A).
 9             "Extension  Limitation  Ratio":  A  numerical ratio,
10        certified by the County Clerk, in which the numerator  is
11        the  Base Tax Year's Tax Extension and the denominator is
12        the Preceding Tax Year's Tax Extension.
13             "Operating Tax Rate":  The  operating  tax  rate  as
14        defined in subsection (A).
15        If a school district is subject to property tax extension
16    limitations  as  imposed  under  the  Property  Tax Extension
17    Limitation Law, and if the Available Local Resources of  that
18    school  district  as  calculated  pursuant  to subsection (D)
19    using the Base Tax Year are less than  the  product  of  1.75
20    times  the  Foundation  Level  for the Budget Year, the State
21    Board of Education shall calculate the  Extension  Limitation
22    Equalized  Assessed  Valuation  of  that  district.   For the
23    1999-2000 school year,  the  Extension  Limitation  Equalized
24    Assessed  Valuation of a school district as calculated by the
25    State Board of Education shall be equal to the product of the
26    district's  1996  Equalized  Assessed   Valuation   and   the
27    district's  Extension  Limitation  Ratio.   For the 2000-2001
28    school year and each school year  thereafter,  the  Extension
29    Limitation  Equalized Assessed Valuation of a school district
30    as calculated by the State Board of Education shall be  equal
31    to  the  product  of the last calculated Extension Limitation
32    Equalized Assessed Valuation  and  the  district's  Extension
33    Limitation  Ratio.  If  the  Extension  Limitation  Equalized
34    Assessed  Valuation  of a school district as calculated under
 
                            -14-             LRB9206774NTsbam
 1    this subsection (G)(3) is less than the district's  equalized
 2    assessed  valuation  as  calculated  pursuant  to subsections
 3    (G)(1) and (G)(2),  then  for  purposes  of  calculating  the
 4    district's  general State aid for the Budget Year pursuant to
 5    subsection (E), that Extension Limitation Equalized  Assessed
 6    Valuation  shall  be  utilized  to  calculate  the district's
 7    Available Local Resources under subsection (D).
 8        (4)  For the purposes of calculating  general  State  aid
 9    for  the  1999-2000  school  year  only, if a school district
10    experienced  a  triennial  reassessment  on   the   equalized
11    assessed  valuation  used  in  calculating  its general State
12    financial aid apportionment for the  1998-1999  school  year,
13    the  State  Board  of Education shall calculate the Extension
14    Limitation Equalized Assessed Valuation that would have  been
15    used to calculate the district's 1998-1999 general State aid.
16    This amount shall equal the product of the equalized assessed
17    valuation  used  to  calculate  general  State  aid  for  the
18    1997-1998 school year and the district's Extension Limitation
19    Ratio.    If  the  Extension  Limitation  Equalized  Assessed
20    Valuation of the school district  as  calculated  under  this
21    paragraph  (4) is less than the district's equalized assessed
22    valuation utilized in calculating  the  district's  1998-1999
23    general   State   aid   allocation,   then  for  purposes  of
24    calculating the district's  general  State  aid  pursuant  to
25    paragraph  (5)  of  subsection (E), that Extension Limitation
26    Equalized Assessed Valuation shall be utilized  to  calculate
27    the district's Available Local Resources.
28        (5)  For  school  districts  having  a  majority of their
29    equalized assessed  valuation  in  any  county  except  Cook,
30    DuPage,  Kane,  Lake,  McHenry,  or  Will,  if  the amount of
31    general State aid allocated to the school  district  for  the
32    1999-2000 school year under the provisions of subsection (E),
33    (H),  and  (J)  of  this  Section  is less than the amount of
34    general State aid allocated to the district for the 1998-1999
 
                            -15-             LRB9206774NTsbam
 1    school year under these subsections, then the  general  State
 2    aid  of the district for the 1999-2000 school year only shall
 3    be increased by the difference between  these  amounts.   The
 4    total payments made under this paragraph (5) shall not exceed
 5    $14,000,000.    Claims  shall  be  prorated  if  they  exceed
 6    $14,000,000.

 7    (H)  Supplemental General State Aid.
 8        (1)  In addition  to  the  general  State  aid  a  school
 9    district  is  allotted pursuant to subsection (E), qualifying
10    school districts shall receive a grant, paid  in  conjunction
11    with   a  district's  payments  of  general  State  aid,  for
12    supplemental general State aid based upon  the  concentration
13    level  of  children  from  low-income  households  within the
14    school district. Supplemental State aid grants  provided  for
15    school  districts under this subsection shall be appropriated
16    for distribution to school districts as part of the same line
17    item in which the  general  State  financial  aid  of  school
18    districts is appropriated under this Section. For purposes of
19    this  subsection,  the  term "Low-Income Concentration Level"
20    shall be the low-income eligible pupil count  from  the  most
21    recently  available  federal  census  divided  by the Average
22    Daily Attendance of the school  district.  If,  however,  the
23    percentage  decrease  from the 2 most recent federal censuses
24    in the low-income eligible  pupil  count  of  a  high  school
25    district  with fewer than 400 students exceeds by 75% or more
26    the percentage change in the total low-income eligible  pupil
27    count   of  contiguous  elementary  school  districts,  whose
28    boundaries are coterminous with the high school district, the
29    high school district's low-income eligible pupil  count  from
30    the  earlier  federal  census shall be the number used as the
31    low-income eligible pupil count for the high school district,
32    for purposes of this subsection (H).
33        (2)  Supplemental general  State  aid  pursuant  to  this
34    subsection shall be provided as follows:
 
                            -16-             LRB9206774NTsbam
 1             (a)  For  any  school  district  with  a  Low Income
 2        Concentration Level of at least 20% and  less  than  35%,
 3        the grant for any school year shall be $800 multiplied by
 4        the low income eligible pupil count.
 5             (b)  For  any  school  district  with  a  Low Income
 6        Concentration Level of at least 35% and  less  than  50%,
 7        the  grant  for the 1998-1999 school year shall be $1,100
 8        multiplied by the low income eligible pupil count.
 9             (c)  For any  school  district  with  a  Low  Income
10        Concentration  Level  of  at least 50% and less than 60%,
11        the grant for the 1998-99 school  year  shall  be  $1,500
12        multiplied by the low income eligible pupil count.
13             (d)  For  any  school  district  with  a  Low Income
14        Concentration Level of 60% or more,  the  grant  for  the
15        1998-99 school year shall be $1,900 multiplied by the low
16        income eligible pupil count.
17             (e)  For  the  1999-2000  school year, the per pupil
18        amount specified  in  subparagraphs  (b),  (c),  and  (d)
19        immediately  above  shall be increased to $1,243, $1,600,
20        and $2,000, respectively.
21             (f)  For the 2000-2001 school year,  the  per  pupil
22        amounts  specified  in  subparagraphs  (b),  (c), and (d)
23        immediately above shall be $1,273,  $1,640,  and  $2,050,
24        respectively.
25        (3)  School districts with an Average Daily Attendance of
26    more  than  1,000  and  less  than  50,000  that  qualify for
27    supplemental general State aid pursuant  to  this  subsection
28    shall  submit a plan to the State Board of Education prior to
29    October 30 of each year for the use of  the  funds  resulting
30    from  this  grant  of  supplemental general State aid for the
31    improvement of instruction in  which  priority  is  given  to
32    meeting  the education needs of disadvantaged children.  Such
33    plan  shall  be  submitted  in  accordance  with  rules   and
34    regulations promulgated by the State Board of Education.
 
                            -17-             LRB9206774NTsbam
 1        (4)  School districts with an Average Daily Attendance of
 2    50,000  or  more  that qualify for supplemental general State
 3    aid  pursuant  to  this  subsection  shall  be  required   to
 4    distribute  from funds available pursuant to this Section, no
 5    less than  $261,000,000  in  accordance  with  the  following
 6    requirements:
 7             (a)  The  required  amounts  shall be distributed to
 8        the attendance centers within the district in  proportion
 9        to  the  number  of  pupils  enrolled  at each attendance
10        center who are eligible to receive free or  reduced-price
11        lunches  or  breakfasts under the federal Child Nutrition
12        Act of 1966 and  under  the  National  School  Lunch  Act
13        during the immediately preceding school year.
14             (b)  The   distribution   of   these   portions   of
15        supplemental  and  general  State  aid  among  attendance
16        centers  according  to  these  requirements  shall not be
17        compensated for or  contravened  by  adjustments  of  the
18        total  of  other  funds  appropriated  to  any attendance
19        centers, and the Board of Education shall utilize funding
20        from one or several sources in order to  fully  implement
21        this provision annually prior to the opening of school.
22             (c)  Each attendance center shall be provided by the
23        school  district  a  distribution of noncategorical funds
24        and other categorical funds to which an attendance center
25        is entitled under law in order that the general State aid
26        and  supplemental   general   State   aid   provided   by
27        application  of  this  subsection supplements rather than
28        supplants the noncategorical funds and other  categorical
29        funds  provided  by the school district to the attendance
30        centers.
31             (d)  Any funds made available under this  subsection
32        that  by  reason of the provisions of this subsection are
33        not required to be allocated and provided  to  attendance
34        centers  may be used and appropriated by the board of the
 
                            -18-             LRB9206774NTsbam
 1        district for any lawful school purpose.
 2             (e)  Funds received by an attendance center pursuant
 3        to this subsection shall be used by the attendance center
 4        at the discretion  of  the  principal  and  local  school
 5        council for programs to improve educational opportunities
 6        at  qualifying schools through the following programs and
 7        services: early childhood education, reduced  class  size
 8        or  improved adult to student classroom ratio, enrichment
 9        programs, remedial  assistance,  attendance  improvement,
10        and  other  educationally  beneficial  expenditures which
11        supplement the regular and basic programs  as  determined
12        by  the  State  Board of Education.  Funds provided shall
13        not be expended for any political or lobbying purposes as
14        defined by board rule.
15             (f)  Each district subject to the provisions of this
16        subdivision (H)(4) shall submit  an  acceptable  plan  to
17        meet  the educational needs of disadvantaged children, in
18        compliance with the requirements of  this  paragraph,  to
19        the  State  Board  of  Education prior to July 15 of each
20        year. This plan shall be consistent with the decisions of
21        local school councils concerning the  school  expenditure
22        plans  developed  in  accordance  with  part 4 of Section
23        34-2.3.  The State Board shall approve or reject the plan
24        within 60 days after its  submission.   If  the  plan  is
25        rejected,  the  district  shall  give  written  notice of
26        intent  to  modify  the  plan  within  15  days  of   the
27        notification of rejection and then submit a modified plan
28        within  30  days  after the date of the written notice of
29        intent to modify.  Districts  may  amend  approved  plans
30        pursuant  to  rules  promulgated  by  the  State Board of
31        Education.
32             Upon notification by the State  Board  of  Education
33        that  the district has not submitted a plan prior to July
34        15 or a modified plan within the  time  period  specified
 
                            -19-             LRB9206774NTsbam
 1        herein,  the  State  aid  funds  affected by that plan or
 2        modified plan shall be withheld by  the  State  Board  of
 3        Education until a plan or modified plan is submitted.
 4             If  the  district  fails  to distribute State aid to
 5        attendance centers in accordance with an  approved  plan,
 6        the  plan for the following year shall allocate funds, in
 7        addition  to  the  funds  otherwise  required   by   this
 8        subsection,   to  those  attendance  centers  which  were
 9        underfunded during the previous year in amounts equal  to
10        such underfunding.
11             For  purposes  of  determining  compliance with this
12        subsection in relation to the requirements of  attendance
13        center  funding,  each district subject to the provisions
14        of this subsection shall submit as a separate document by
15        December 1 of each year a report of expenditure data  for
16        the  prior  year  in  addition to any modification of its
17        current plan.  If it is determined that there has been  a
18        failure to comply with the expenditure provisions of this
19        subsection  regarding  contravention  or supplanting, the
20        State Superintendent of Education shall, within  60  days
21        of  receipt  of  the  report, notify the district and any
22        affected local school council.  The district shall within
23        45 days of receipt of that notification inform the  State
24        Superintendent of Education of the remedial or corrective
25        action  to be taken, whether  by amendment of the current
26        plan, if feasible, or by adjustment in the plan  for  the
27        following  year.   Failure  to  provide  the  expenditure
28        report  or  the  notification  of  remedial or corrective
29        action in a timely manner shall result in  a  withholding
30        of the affected funds.
31             The  State Board of Education shall promulgate rules
32        and regulations  to  implement  the  provisions  of  this
33        subsection.   No  funds  shall  be  released  under  this
34        subdivision (H)(4) to any district that has not submitted
 
                            -20-             LRB9206774NTsbam
 1        a  plan  that  has  been  approved  by the State Board of
 2        Education.

 3    (I)  General State Aid for Newly Configured School Districts.
 4        (1)  For  a  new  school  district  formed  by  combining
 5    property  included  totally  within  2  or  more   previously
 6    existing  school  districts,  for its first year of existence
 7    the general State aid  and  supplemental  general  State  aid
 8    calculated  under  this Section shall be computed for the new
 9    district and for the previously existing districts for  which
10    property is totally included within the new district.  If the
11    computation on the basis of the previously existing districts
12    is  greater,  a supplementary payment equal to the difference
13    shall be made for the first 4 years of existence of  the  new
14    district.
15        (2)  For  a  school  district  which  annexes  all of the
16    territory of one or more entire other school  districts,  for
17    the   first  year  during  which  the  change  of  boundaries
18    attributable to such annexation  becomes  effective  for  all
19    purposes as determined under Section 7-9 or 7A-8, the general
20    State aid and supplemental general State aid calculated under
21    this  Section  shall be computed for the annexing district as
22    constituted after the annexation and  for  the  annexing  and
23    each annexed district as constituted prior to the annexation;
24    and  if  the  computation  on  the  basis of the annexing and
25    annexed districts as constituted prior to the  annexation  is
26    greater,  a  supplementary  payment  equal  to the difference
27    shall be made for the first  4  years  of  existence  of  the
28    annexing school district as constituted upon such annexation.
29        (3)  For  2  or  more school districts which annex all of
30    the territory of one or more entire other  school  districts,
31    and  for 2 or more community unit districts which result upon
32    the division (pursuant to petition under  Section  11A-2)  of
33    one  or more other unit school districts into 2 or more parts
34    and which together include all of the parts into  which  such
 
                            -21-             LRB9206774NTsbam
 1    other  unit  school district or districts are so divided, for
 2    the  first  year  during  which  the  change  of   boundaries
 3    attributable to such annexation or division becomes effective
 4    for  all  purposes as determined under Section 7-9 or 11A-10,
 5    as the case may be, the general State  aid  and  supplemental
 6    general  State  aid  calculated  under  this Section shall be
 7    computed  for  each  annexing  or   resulting   district   as
 8    constituted  after  the  annexation  or division and for each
 9    annexing and annexed district,  or  for  each  resulting  and
10    divided  district,  as constituted prior to the annexation or
11    division; and if the aggregate of the general State  aid  and
12    supplemental  general  State  aid  as  so  computed  for  the
13    annexing  or  resulting  districts  as  constituted after the
14    annexation or division is less  than  the  aggregate  of  the
15    general  State  aid  and supplemental general State aid as so
16    computed for the annexing and annexed districts, or  for  the
17    resulting  and divided districts, as constituted prior to the
18    annexation or division, then a supplementary payment equal to
19    the difference shall be made and allocated between  or  among
20    the annexing or resulting districts, as constituted upon such
21    annexation  or  division,  for  the  first  4  years of their
22    existence.  The total difference payment shall  be  allocated
23    between  or  among the annexing or resulting districts in the
24    same ratio as the pupil enrollment from that portion  of  the
25    annexed  or divided district or districts which is annexed to
26    or included in each such annexing or resulting district bears
27    to the total pupil enrollment  from  the  entire  annexed  or
28    divided  district  or  districts, as such pupil enrollment is
29    determined for the school year last ending prior to the  date
30    when  the change of boundaries attributable to the annexation
31    or division becomes effective for all purposes.   The  amount
32    of  the total difference payment and the amount thereof to be
33    allocated to the annexing or  resulting  districts  shall  be
34    computed  by  the  State  Board  of Education on the basis of
 
                            -22-             LRB9206774NTsbam
 1    pupil enrollment and other data which shall be  certified  to
 2    the State Board of Education, on forms which it shall provide
 3    for  that  purpose, by the regional superintendent of schools
 4    for each educational service region in which the annexing and
 5    annexed districts, or resulting  and  divided  districts  are
 6    located.
 7        (3.5)  Claims   for   financial   assistance  under  this
 8    subsection (I) shall not be recomputed  except  as  expressly
 9    provided under this Section.
10        (4)  Any supplementary payment made under this subsection
11    (I) shall be treated as separate from all other payments made
12    pursuant to this Section.

13    (J)  Supplementary Grants in Aid.
14        (1)  Notwithstanding   any   other   provisions  of  this
15    Section, the amount of the aggregate  general  State  aid  in
16    combination  with  supplemental  general State aid under this
17    Section for which each school district is eligible  shall  be
18    no  less  than  the amount of the aggregate general State aid
19    entitlement that was received by the district  under  Section
20    18-8  (exclusive  of  amounts received under subsections 5(p)
21    and 5(p-5) of that Section)  for  the  1997-98  school  year,
22    pursuant  to the provisions of that Section as it was then in
23    effect.  If  a  school  district  qualifies  to   receive   a
24    supplementary  payment  made  under  this subsection (J), the
25    amount of the aggregate general State aid in combination with
26    supplemental general State aid under this Section  which that
27    district is eligible to receive for each school year shall be
28    no less than the amount of the aggregate  general  State  aid
29    entitlement  that  was received by the district under Section
30    18-8 (exclusive of amounts received  under  subsections  5(p)
31    and  5(p-5)  of  that Section) for the 1997-1998 school year,
32    pursuant to the provisions of that Section as it was then  in
33    effect.
34        (2)  If,  as provided in paragraph (1) of this subsection
 
                            -23-             LRB9206774NTsbam
 1    (J), a school district is to receive aggregate general  State
 2    aid  in combination with supplemental general State aid under
 3    this Section for the 1998-99 school year and  any  subsequent
 4    school  year  that  in  any such school year is less than the
 5    amount of the aggregate general State  aid  entitlement  that
 6    the district received for the 1997-98 school year, the school
 7    district  shall  also  receive, from a separate appropriation
 8    made for purposes of this  subsection  (J),  a  supplementary
 9    payment  that is equal to the amount of the difference in the
10    aggregate State aid figures as described in paragraph (1).
11        (3)  (Blank).

12    (K)  Grants to Laboratory and Alternative Schools.
13        In calculating the amount to be  paid  to  the  governing
14    board  of  a  public  university  that  operates a laboratory
15    school under this Section or to any alternative  school  that
16    is  operated  by  a  regional  superintendent of schools, the
17    State Board of Education shall require by rule such reporting
18    requirements as it deems necessary.
19        As used in this  Section,  "laboratory  school"  means  a
20    public  school  which  is  created  and  operated by a public
21    university and approved by the State Board of Education.  The
22    governing board of a public university which  receives  funds
23    from  the  State  Board  under  this  subsection  (K) may not
24    increase the number of students enrolled  in  its  laboratory
25    school  from  a  single district, if that district is already
26    sending 50 or more students, except under a mutual  agreement
27    between the school board of a student's district of residence
28    and  the  university which operates the laboratory school.  A
29    laboratory school may not  have  more  than  1,000  students,
30    excluding  students  with disabilities in a special education
31    program.
32        As used in this Section,  "alternative  school"  means  a
33    public  school  which  is  created and operated by a Regional
34    Superintendent of Schools and approved by the State Board  of
 
                            -24-             LRB9206774NTsbam
 1    Education.   Such  alternative  schools  may offer courses of
 2    instruction for which  credit  is  given  in  regular  school
 3    programs,  courses  to  prepare  students for the high school
 4    equivalency testing program or  vocational  and  occupational
 5    training.   A regional superintendent of schools may contract
 6    with a school district or a public community college district
 7    to  operate  an  alternative  school.   An alternative school
 8    serving more than  one  educational  service  region  may  be
 9    established by the regional superintendents of schools of the
10    affected  educational service regions.  An alternative school
11    serving more than  one  educational  service  region  may  be
12    operated  under such terms as the regional superintendents of
13    schools of those educational service regions may agree.
14        Each laboratory and alternative  school  shall  file,  on
15    forms  provided  by the State Superintendent of Education, an
16    annual  State  aid  claim  which  states  the  Average  Daily
17    Attendance of the school's students by  month.   The  best  3
18    months'  Average  Daily Attendance shall be computed for each
19    school. The general State aid entitlement shall  be  computed
20    by multiplying the applicable Average Daily Attendance by the
21    Foundation Level as determined under this Section.

22    (L)  Payments,   Additional   Grants   in   Aid   and   Other
23    Requirements.
24        (1)  For  a school district operating under the financial
25    supervision of an Authority created under  Article  34A,  the
26    general  State  aid  otherwise payable to that district under
27    this Section, but not the  supplemental  general  State  aid,
28    shall  be  reduced  by  an amount equal to the budget for the
29    operations of the Authority as certified by the Authority  to
30    the  State  Board  of  Education, and an amount equal to such
31    reduction shall be paid to the  Authority  created  for  such
32    district for its operating expenses in the manner provided in
33    Section 18-11.  The remainder of general State school aid for
34    any  such  district  shall be paid in accordance with Article
 
                            -25-             LRB9206774NTsbam
 1    34A when that Article provides for a disposition  other  than
 2    that provided by this Article.
 3        (2)  (Blank).
 4        (3)  Summer school.  Summer school payments shall be made
 5    as provided in Section 18-4.3.

 6    (M)  Education Funding Advisory Board.
 7        The Education Funding Advisory Board, hereinafter in this
 8    subsection (M) referred to as the "Board", is hereby created.
 9    The Board shall consist of 5 members who are appointed by the
10    Governor,  by  and with the advice and consent of the Senate.
11    The  members  appointed  shall  include  representatives   of
12    education,  business,  and  the  general  public.  One of the
13    members so appointed shall be designated by the  Governor  at
14    the  time  the  appointment is made as the chairperson of the
15    Board. The initial members of the Board may be appointed  any
16    time after the effective date of this amendatory Act of 1997.
17    The  regular  term of each member of the Board shall be for 4
18    years from the third Monday of January of the year  in  which
19    the  term  of the member's appointment is to commence, except
20    that of the 5 initial  members  appointed  to  serve  on  the
21    Board,  the  member who is appointed as the chairperson shall
22    serve for a term that commences on the date  of  his  or  her
23    appointment and expires on the third Monday of January, 2002,
24    and  the  remaining  4  members,  by  lots drawn at the first
25    meeting of the Board that is held after  all  5  members  are
26    appointed,  shall  determine  2  of their number to serve for
27    terms  that  commence  on  the  date  of   their   respective
28    appointments and expire on the third Monday of January, 2001,
29    and 2 of their number to serve for terms that commence on the
30    date of their respective appointments and expire on the third
31    Monday  of  January, 2000.  All members appointed to serve on
32    the Board shall serve until their respective  successors  are
33    appointed  and  confirmed.   Vacancies shall be filled in the
34    same manner  as  original  appointments.   If  a  vacancy  in
 
                            -26-             LRB9206774NTsbam
 1    membership  occurs  at  a  time  when  the  Senate  is not in
 2    session, the Governor  shall  make  a  temporary  appointment
 3    until  the  next  meeting of the Senate, when he or she shall
 4    appoint, by and with the advice and consent of the Senate,  a
 5    person  to  fill  that membership for the unexpired term.  If
 6    the Senate is not in session when  the  initial  appointments
 7    are  made, those appointments shall be made as in the case of
 8    vacancies.
 9        The Education Funding  Advisory  Board  shall  be  deemed
10    established,   and  the  initial  members  appointed  by  the
11    Governor to serve as members of the Board shall take  office,
12    on the date that the Governor makes his or her appointment of
13    the  fifth initial member of the Board, whether those initial
14    members  are  then  serving  pursuant  to   appointment   and
15    confirmation  or  pursuant to temporary appointments that are
16    made by the Governor as in the case of vacancies.
17        The State Board of Education  shall  provide  such  staff
18    assistance  to  the  Education  Funding  Advisory Board as is
19    reasonably required for the proper performance by  the  Board
20    of its responsibilities.
21        For  school  years  after  the 2000-2001 school year, the
22    Education Funding Advisory Board, in  consultation  with  the
23    State  Board  of  Education,  shall  make  recommendations as
24    provided in this subsection (M) to the General  Assembly  for
25    the foundation level under subdivision (B)(3) of this Section
26    and  for the supplemental general State aid grant level under
27    subsection (H)  of  this  Section  for  districts  with  high
28    concentrations  of  children  from  poverty.  The recommended
29    foundation level shall be determined based on  a  methodology
30    which   incorporates  the  basic  education  expenditures  of
31    low-spending schools exhibiting  high  academic  performance.
32    The   Education   Funding  Advisory  Board  shall  make  such
33    recommendations to the General Assembly on January 1  of  odd
34    numbered years, beginning January 1, 2001.
 
                            -27-             LRB9206774NTsbam
 1    (N)  (Blank).

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

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