Public Act 90-0802 of the 90th General Assembly
Public Act 90-0802
SB1599 Re-enrolled LRB9010085THpk
AN ACT relating to education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing
Sections 1A-8, 1B-8, and 2-3.17a, 2-3.66, 10-22.20, 13A-8,
and 18-8.05 as follows:
(105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
Sec. 1A-8. Powers of the Board in Assisting Districts
Deemed in Financial Difficulties. To promote the financial
integrity of school districts, the State Board of Education
shall be provided the necessary powers to promote sound
financial management and continue operation of the public
schools.
The State Board of Education, after proper investigation
of a district's financial condition, may certify that a
district, including any district subject to Article 34A, is
in financial difficulty when any of the following conditions
occur:
(1) The district has issued school orders for wages as
permitted in Sections 8-16, 32-7.2 and 34-76 of this Code, or
the district has issued funding bonds to retire teacher
orders in 3 of the 5 last years;
(2) The district has issued tax anticipation warrants or
tax anticipation notes in anticipation of a second year's
taxes when warrants or notes in anticipation of current year
taxes are still outstanding, as authorized by Sections 17-16,
34-23, 34-59 and 34-63 of this Code;
(3) The district has for 2 consecutive years shown an
excess of expenditures and other financing uses over revenues
and other financing sources and beginning fund balances on
its annual financial report for the aggregate totals of the
Educational, Operations and Maintenance, Transportation, and
Working Cash Funds;.
(4) The district had an enrollment of no fewer than 4,000
pupils during the 1997-1998 school year, has been previously
certified to be in financial difficulty and requests to be
recertified as a result of continuing financial problems. No
recertification may be made under this item (4) after
December 31, 1999.
No school district shall be certified to be in financial
difficulty by reason of any of the above circumstances
arising as a result of the failure of the county to make any
distribution of property tax money due the district at the
time such distribution is due; or if the district clearly
demonstrates to the satisfaction of the State Board of
Education at the time of its determination that such
condition no longer exists. If the State Board of Education
certifies that a district in a city with 500,000 inhabitants
or more is in financial difficulty, the State Board shall so
notify the Governor and the Mayor of the city in which the
district is located. The State Board of Education may
require school districts in financial difficulty, except
those districts subject to Article 34A, to develop, adopt and
submit a financial plan within 45 days after certification of
financial difficulty. The financial plan shall be developed
according to guidelines presented to the district by the
State Board of Education within 14 days of certification.
Such guidelines shall address the specific nature of each
district's financial difficulties. Any proposed budget of the
district shall be consistent with the financial plan approved
by the State Board.
A district certified to be in financial difficulty, other
than a district subject to Article 34A, shall report to the
State Board of Education at such times and in such manner as
the State Board may direct, concerning the district's
compliance with each financial plan. The State Board may
review the district's operations, obtain budgetary data and
financial statements, require the district to produce
reports, and have access to any other information in the
possession of the district that it deems relevant. The State
Board may issue recommendations or directives within its
powers to the district to assure compliance with the
financial plan. The district shall produce such budgetary
data, financial statements, reports and other information and
comply with such directives. If the State Board of Education
determines that a district has failed to comply with its
financial plan, the State Board of Education may rescind
approval of the plan and appoint a Financial Oversight Panel
for the district as provided in Section 1B-4. This action
shall be taken only after the district has been given notice
and an opportunity to appear before the State Board of
Education to discuss its failure to comply with its financial
plan.
No bonds, notes, teachers orders, tax anticipation
warrants or other evidences of indebtedness shall be issued
or sold by a school district or be legally binding upon or
enforceable against a local board of education of a district
certified to be in financial difficulty unless and until the
financial plan required under this Section has been approved
by the State Board of Education.
Any financial watch list distributed by the State Board
of Education pursuant to this Section shall designate those
school districts on the watch list that would not otherwise
be on the watch list were it not for the inability or refusal
of the State of Illinois to make timely disbursements of any
payments due school districts or to fully reimburse school
districts for mandated categorical programs pursuant to
reimbursement formulas provided in this School Code.
(Source: P.A. 88-555, eff. 7-27-94; 88-618, eff. 9-9-94;
89-235, eff. 8-4-95.)
(105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
Sec. 1B-8. There is created in the State Treasury a
special fund to be known as the School District Emergency
Financial Assistance Fund (the "Fund"). The School District
Emergency Financial Assistance Fund shall consist of
appropriations, grants from the federal government and
donations from any public or private source. Moneys in the
Fund may be appropriated only to the State Board for the
purposes of this Article. The appropriation may be allocated
and expended by the State Board as grants or loans to school
districts which are the subject of an approved petition for
emergency financial assistance under Section 1B-4. From the
amount allocated to each such school district the State Board
shall identify a sum sufficient to cover all approved costs
of the Financial Oversight Panel established for the
respective school district. If the State Board and State
Superintendent of Education have not approved emergency
financial assistance in conjunction with the appointment of a
Financial Oversight Panel, the Panel's approved costs shall
be paid from deductions from the district's general State
aid.
The Financial Oversight Panel may prepare and file with
the State Superintendent a proposal for emergency financial
assistance for the school district and for the operations
budget of the Panel. No expenditures shall be authorized by
the State Superintendent until he has approved the proposal
of the Panel, either as submitted or in such lesser amount
determined by the State Superintendent.
The maximum amount of an emergency financial assistance
loan which may be allocated to any school district under this
Article, including moneys necessary for the operations of the
Panel, shall not exceed $1000 times the number of pupils
enrolled in the school district during the school year ending
June 30 prior to the date of approval by the State Board of
the petition for emergency financial assistance, as certified
to the local board and the Panel by the State Superintendent.
An emergency financial assistance grant shall not exceed $250
times the number of such pupils. A district may receive both
a loan and a grant.
The payment of an emergency State financial assistance
grant or loan shall be subject to appropriation by the
General Assembly. Emergency State financial assistance
allocated and paid to a school district under this Article
may be applied to any fund or funds from which the local
board of education of that district is authorized to make
expenditures by law.
Any emergency financial assistance proposed by the
Financial Oversight Panel and approved by the State
Superintendent may be paid in its entirety during the initial
year of the Panel's existence or spread in equal or declining
amounts over a period of years not to exceed the period of
the Panel's existence. All loan payments made from the
School District Emergency Financial Assistance Fund for a
school district shall be required to be repaid, with simple
interest over the term of the loan at a rate equal to 50% of
the discount rate on one-year United States Treasury Bills as
determined by the last auction of those one-year bills that
precedes the date on which the district's loan is approved by
the State Board of Education at the rate of 4%, not later
than the date the Financial Oversight Panel ceases to exist.
The Panel shall establish and the State Superintendent shall
approve the terms and conditions, including the schedule, of
repayments. The schedule shall provide for repayments
commencing July 1 of each year. Repayment shall be
incorporated into the annual budget of the school district
and may be made from any fund or funds of the district in
which there are moneys available. When moneys are repaid as
provided herein they shall not be made available to the local
board for further use as emergency financial assistance under
this Article at any time thereafter. All repayments required
to be made by a school district shall be received by the
State Board and deposited in the School District Emergency
Financial Assistance Fund.
In establishing the terms and conditions for the
repayment obligation of the school district the Panel shall
annually determine whether a separate local property tax levy
is required. The board of any school district with a tax
rate for educational purposes for the prior year of less than
120% of the maximum rate for educational purposes authorized
by Section 17-2 shall provide for a separate tax levy for
emergency financial assistance repayment purposes. Such tax
levy shall not be subject to referendum approval. The amount
of the levy shall be equal to the amount necessary to meet
the annual repayment obligations of the district as
established by the Panel, or 20% of the amount levied for
educational purposes for the prior year, whichever is less.
However, no district shall be required to levy the tax if the
district's operating tax rate as determined under Section
18-8 or 18-8.05 exceeds 200% of the district's tax rate for
educational purposes for the prior year.
(Source: P.A. 90-548, eff. 1-1-98.)
(105 ILCS 5/2-3.17a) (from Ch. 122, par. 2-3.17a)
Sec. 2-3.17a. Financial audits. The State Board of
Education shall annually cause an audit to be made, as of
June 30, 1986 and as of June 30th of each year thereafter, of
the financial statements of all accounts, funds and other
moneys in the care, custody or control of the regional
superintendent of schools of each educational service region
in the State and of each educational service center
established under Section 2-3.62 of this Act other than an
educational service center serving a school district in a
city having a population exceeding 500,000. The audit shall
be conducted in accordance with Generally Accepted
Governmental Auditing Standards and shall include an
examination of supporting books and records and a
representative sample of vouchers for distributions and
expenditures. On February 15, 1991, and on February 15 of
each year thereafter, the State Board of Education shall
notify the Legislative Audit Commission in writing of the
completion or of the reasons for the noncompletion of each
audit required by this Section to be made as of the preceding
June 30. An audit report shall be prepared for each audit
made pursuant to this Section, and all such audit reports
shall be kept on file in the office of the State Board of
Education. Within 60 days after each audit report required to
be prepared under this Section is completed, the State Board
of Education: (i) shall furnish a copy of such audit report
to each member of the General Assembly whose legislative or
representative district includes any part of the educational
service region served by the regional superintendent of
schools with respect to whose financial statements that audit
report was prepared or any part of the area served by the
educational service center that is the subject of the audit;
and (ii) shall publish in a newspaper published in that
educational service region or area served by the educational
service center that is the subject of the audit a notice that
the audit report has been prepared and is available for
inspection during regular business hours at the office of the
regional superintendent of schools of that educational
service region or at the administrative office of the
educational service center. Each audit shall be made in such
manner as to determine, and each audit report shall be
prepared in such manner as to state:
(a) The balances on hand of all accounts, funds and
other moneys in the care, custody or control of the regional
superintendent of schools or educational service center at
the beginning of the fiscal year being audited;
(b) the amount of funds received during the fiscal year
by source;
(c) the amount of funds distributed or otherwise paid by
the regional superintendent of schools or educational service
center to each school treasurer in his or her educational
service region or area, including the purpose of such
distribution or payment and the fund or account from which
such distribution or payment is made;
(d) the amounts paid or otherwise disbursed by the
regional superintendent of schools or educational service
center -- other than the amounts distributed or paid by the
regional superintendent of schools or educational service
center to school treasurers as described in paragraph (c)
above -- for all other purposes and expenditures, including
the fund or account from which such payments or disbursements
are made and the purpose thereof; and
(e) the balances on hand of all accounts, funds and
other moneys in the care, custody or control of the regional
superintendent of schools or educational service center at
the end of the fiscal year being audited.
The State Board of Education shall adopt rules and
regulations relative to the time and manner by which the
regional superintendent of schools or educational service
center shall present for inspection or make available to the
State Board of Education, or to the agents designated by such
Board to make an audit and prepare an audit report pursuant
to this Section, all financial statements, books, records,
vouchers for distributions and expenditures, and records of
accounts, funds and other moneys in the care, custody or
control of the regional superintendent of schools or
educational service center and required for purposes of
making such audit and preparing an audit and preparing an
audit report.
(f) The State Board of Education shall require the
regional superintendent of schools of each educational
service region or administrator of each educational service
center to promptly implement all recommendations based on
audit findings resulting from a violation of law made in
audits prepared pursuant to this Section, unless the State
Board of Education, upon review, determines, with regard to
any such finding, that implementation of the recommendation
is not appropriate.
(Source: P.A. 85-1389; 86-1332.)
(105 ILCS 5/2-3.66) (from Ch. 122, par. 2-3.66)
Sec. 2-3.66. Truants' alternative and optional education
programs. To establish pilot projects to offer modified
instructional programs or other services designed to prevent
students from dropping out of school, including programs
pursuant to Section 2-3.41, and to serve as a part time or
full time option in lieu of regular school attendance and to
award grants to local school districts, educational service
regions or community college districts from appropriated
funds to assist districts in establishing such projects. The
education agency may operate its own program or enter into a
contract with another not-for-profit entity to implement the
program. The pilot projects shall allow dropouts, up to and
including age 21, potential dropouts, including truants,
uninvolved, unmotivated and disaffected students, as defined
by State Board of Education rules and regulations, to enroll,
as an alternative to regular school attendance, in an
optional education program which may be established by school
board policy and is in conformance with rules adopted by the
State Board of Education. Truants' Alternative and Optional
Education programs funded pursuant to this Section shall be
planned by a student, the student's parents or legal
guardians, unless the student is 18 years or older, and
school officials and shall culminate in an individualized
optional education plan. Such plan shall focus on academic
or vocational skills, or both, and may include, but not be
limited to, evening school, summer school, community college
courses, adult education, preparation courses for the high
school level test of General Educational Development,
vocational training, work experience, programs to enhance
self concept and parenting courses. School districts which
are awarded grants pursuant to this Section shall be
authorized to provide day care services to children of
students who are eligible and desire to enroll in programs
established and funded under this Section, but only if and to
the extent that such day care is necessary to enable those
eligible students to attend and participate in the programs
and courses which are conducted pursuant to this Section.
The Board shall report on the status of the pilot projects
pursuant to Section 1A-4. School districts and regional
offices of education may claim general State aid under
Section 18-8.05 for students enrolled in truants' alternative
and optional education programs, provided that such students
are receiving services that are supplemental to a program
leading to a high school diploma and are otherwise eligible
to be claimed for general State aid under Section 18-8.05.
(Source: P.A. 86-339.)
(105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
Sec. 10-22.20. Classes for adults and youths whose
schooling has been interrupted; Conditions for State
reimbursement; Use of child care facilities.
(a) To establish special classes for the instruction (1)
of persons of age 21 years or over, and (2) of persons less
than age 21 and not otherwise in attendance in public school,
for the purpose of providing adults in the community, and
youths whose schooling has been interrupted, with such
additional basic education, vocational skill training, and
other instruction as may be necessary to increase their
qualifications for employment or other means of self-support
and their ability to meet their responsibilities as citizens
including courses of instruction regularly accepted for
graduation from elementary or high schools and for
Americanization and General Educational Development Review
classes.
The board shall pay the necessary expenses of such
classes out of school funds of the district, including costs
of student transportation and such facilities or provision
for child-care as may be necessary in the judgment of the
board to permit maximum utilization of the courses by
students with children, and other special needs of the
students directly related to such instruction. The expenses
thus incurred shall be subject to State reimbursement, as
provided in this Section. The board may make a tuition
charge for persons taking instruction who are not subject to
State reimbursement, such tuition charge not to exceed the
per capita cost of such classes.
The cost of such instruction, including the additional
expenses herein authorized, incurred for recipients of
financial aid under the Illinois Public Aid Code, or for
persons for whom education and training aid has been
authorized under Section 9-8 of that Code, shall be assumed
in its entirety from funds appropriated by the State to the
State Board of Education.
(b) The State Board of Education and the Illinois
Community College Board shall annually enter into an
interagency agreement to implement this Section. The
interagency agreement shall establish the standards for the
courses of instruction reimbursed under this Section. The
State Board of Education shall supervise the administration
of the programs. The State Board of Education shall
determine the cost of instruction in accordance with
standards jointly established by the State Board of Education
and the Illinois Community College Board as set forth in the
interagency agreement, including therein other incidental
costs as herein authorized, which shall serve as the basis of
State reimbursement in accordance with the provisions of
this Section. In the approval of programs and the
determination of the cost of instruction, the State Board of
Education shall provide for the maximum utilization of
federal funds for such programs. The interagency agreement
shall also include:
(1) the development of an index of need for program
planning and for area funding allocations as defined by
the State Board of Education;
(2) the method for calculating hours of
instruction, as defined by the State Board of Education,
claimable for reimbursement and a method to phase in the
calculation and for adjusting the calculations in cases
where the services of a program are interrupted due to
circumstances beyond the control of the program provider;
(3) a plan for the reallocation of funds to
increase the amount allocated for grants based upon
program performance as set forth in subsection (d) below;
and
(4) the development of standards for determining
grants based upon performance as set forth in subsection
(d) below and a plan for the phased-in implementation of
those standards.
For instruction provided by school districts and
community college districts beginning July 1, 1996 and
thereafter, reimbursement provided by the State Board of
Education for classes authorized by this Section shall be
provided pursuant to the terms of the interagency agreement
from funds appropriated for the reimbursement criteria set
forth in subsection (c) below.
(c) Upon the annual approval of the interagency
agreement, reimbursement shall be first provided for
transportation, child care services, and other special needs
of the students directly related to instruction and then from
the funds remaining an amount equal to the product of the
total credit hours or units of instruction approved by the
State Board of Education, multiplied by the following:
(1) For adult basic education, the maximum
reimbursement per credit hour or per unit of instruction
shall be equal to the general state aid per pupil
foundation level established in subsections 5(a) through
5(d) of Section 18-8 or subsection (B) of Section
18-8.05, divided by 60;
(2) The maximum reimbursement per credit hour or
per unit of instruction in subparagraph (1) above shall
be weighted for students enrolled in classes defined as
vocational skills and approved by the State Board of
Education by 1.25;
(3) The maximum reimbursement per credit hour or
per unit of instruction in subparagraph (1) above shall
be multiplied by .90 for students enrolled in classes
defined as adult secondary education programs and
approved by the State Board of Education;
(4) For community college districts the maximum
reimbursement per credit hour in subparagraphs (1), (2),
and (3) above shall be reduced by the Adult Basic
Education/Adult Secondary Education/English As A Second
Language credit hour grant rate prescribed in Section
2-16.02 of the Public Community College Act, as pro-rated
to the appropriation level; and
(5) Programs receiving funds under the formula that
was in effect during the 1994-1995 program year which
continue to be approved and which generate at least 80%
of the hours claimable in 1994-95, or in the case of
programs not approved in 1994-95 at least 80% of the
hours claimable in 1995-96, shall have funding for
subsequent years based upon 100% of the 1995-96 formula
funding level for 1996-97, 90% of the 1995-96 formula
funding level for 1997-98, 80% of the 1995-96 formula
funding level for 1998-99, and 70% of the 1995-96 formula
funding level for 1999-2000. For any approved program
which generates less than 80% of the claimable hours in
its base year, the level of funding pursuant to this
paragraph shall be reduced proportionately. Funding for
program years after 1999-2000 shall be pursuant to the
interagency agreement.
(d) Upon the annual approval of the interagency
agreement, the State Board of Education shall provide grants
to eligible programs for supplemental activities to improve
or expand services under the Adult Education Act. Eligible
programs shall be determined based upon performance outcomes
of students in the programs as set forth in the interagency
agreement.
(e) Reimbursement under this Section shall not exceed
the actual costs of the approved program.
If the amount appropriated to the State Board of
Education for reimbursement under this Section is less than
the amount required under this Act, the apportionment shall
be proportionately reduced.
School districts and community college districts may
assess students up to $3.00 per credit hour, for classes
other than Adult Basic Education level programs, if needed to
meet program costs.
(f) An education plan shall be established for each
adult or youth whose schooling has been interrupted and who
is participating in the instructional programs provided under
this Section.
Each school board and community college shall keep an
accurate and detailed account of the students assigned to and
receiving instruction under this Section who are subject to
State reimbursement and shall submit reports of services
provided commencing with fiscal year 1997 as required in the
interagency agreement.
For classes authorized under this Section, a credit hour
or unit of instruction is equal to 15 hours of direct
instruction for students enrolled in approved adult education
programs at midterm and making satisfactory progress, in
accordance with standards jointly established by the State
Board of Education and the Illinois Community College Board
as set forth in the interagency agreement.
(g) Upon proof submitted to the Illinois Department of
Human Services of the payment of all claims submitted under
this Section, that Department shall apply for federal funds
made available therefor and any federal funds so received
shall be paid into the General Revenue Fund in the State
Treasury.
School districts or community colleges providing classes
under this Section shall submit applications to the State
Board of Education for preapproval in accordance with the
standards jointly established by the State Board of Education
and the Illinois Community College Board as set forth in the
interagency agreement. Payments shall be made by the State
Board of Education based upon approved programs. Interim
expenditure reports may be required by the State Board of
Education as set forth in the interagency agreement. Final
claims for the school year shall be submitted to the regional
superintendents for transmittal to the State Board of
Education as set forth in the interagency agreement. Final
adjusted payments shall be made by September 30.
If a school district or community college district fails
to provide, or is providing unsatisfactory or insufficient
classes under this Section, the State Board of Education may
enter into agreements with public or private educational or
other agencies other than the public schools for the
establishment of such classes.
(h) If a school district or community college district
establishes child-care facilities for the children of
participants in classes established under this Section, it
may extend the use of these facilities to students who have
obtained employment and to other persons in the community
whose children require care and supervision while the parent
or other person in charge of the children is employed or
otherwise absent from the home during all or part of the day.
It may make the facilities available before and after as well
as during regular school hours to school age and preschool
age children who may benefit thereby, including children who
require care and supervision pending the return of their
parent or other person in charge of their care from
employment or other activity requiring absence from the home.
The State Board of Education shall pay to the board the
cost of care in the facilities for any child who is a
recipient of financial aid under The Illinois Public Aid
Code.
The board may charge for care of children for whom it
cannot make claim under the provisions of this Section. The
charge shall not exceed per capita cost, and to the extent
feasible, shall be fixed at a level which will permit
utilization by employed parents of low or moderate income.
It may also permit any other State or local governmental
agency or private agency providing care for children to
purchase care.
After July 1, 1970 when the provisions of Section
10-20.20 become operative in the district, children in a
child-care facility shall be transferred to the kindergarten
established under that Section for such portion of the day as
may be required for the kindergarten program, and only the
prorated costs of care and training provided in the Center
for the remaining period shall be charged to the Illinois
Department of Human Services or other persons or agencies
paying for such care.
(i) The provisions of this Section shall also apply to
school districts having a population exceeding 500,000.
(j) In addition to claiming reimbursement under this
Section, a school district may claim general State aid under
Section 18-8.05 for any student under age 21 who is enrolled
in courses accepted for graduation from elementary or high
school and who otherwise meets the requirements of Section
18-8.05.
(Source: P.A. 89-507, eff. 7-1-97; 89-524, eff. 7-19-96;
90-14, eff. 7-1-97; 90-548, eff. 1-1-98.)
(105 ILCS 5/13A-8)
Sec. 13A-8. Funding.
(a) The State of Illinois shall provide new and
additional funding for the alternative school programs within
each educational service region and within the Chicago public
school system by line item appropriation made to the State
Board of Education for that purpose. This money, when
appropriated, shall be provided to the regional
superintendent and to the Chicago Board of Education, who
shall establish a budget, including salaries, for their
alternative school programs all alternative schools in that
region. Each program shall receive funding in the amount of
$30,000 plus an amount based on the ratio of the region's or
Chicago's best 3 months' average daily attendance in grades
pre-kindergarten through 12 to the statewide totals of these
amounts. For purposes of this calculation, the best 3
months' average daily attendance for each region or Chicago
shall be calculated by adding to the best 3 months' average
daily attendance the number of low-income students identified
in the most recently available federal census multiplied by
one-half times the percentage of the region's or Chicago's
low-income students to the State's total low-income students.
The State Board of Education shall retain up to 1.1% of the
appropriation to be used to provide technical assistance,
professional development, and evaluations for the programs.
(a-5) Notwithstanding any other provisions of this
Section, for the 1998-1999 fiscal year, the total amount
distributed under subsection (a) for an alternative school
program shall be not less than the total amount that was
distributed under that subsection for that alternative school
program for the 1997-1998 fiscal year. If an alternative
school program is to receive a total distribution under
subsection (a) for the 1998-1999 fiscal year that is less
than the total distribution that the program received under
that subsection for the 1997-1998 fiscal year, that
alternative school program shall also receive, from a
separate appropriation made for purposes of this subsection
(a-5), a supplementary payment equal to the amount by which
its total distribution under subsection (a) for the 1997-1998
fiscal year exceeds the amount of the total distribution that
the alternative school program receives under that subsection
for the 1998-1999 fiscal year. If the amount appropriated for
supplementary payments to alternative school programs under
this subsection (a-5) is insufficient for that purpose, those
supplementary payments shall be prorated among the
alternative school programs entitled to receive those
supplementary payments according to the aggregate amount of
the appropriation made for purposes of this subsection (a-5).
(b) An alternative school program shall be entitled to
receive general State aid as calculated in subsection (K)
Part B of Section 18-8.05 18-8 upon filing a claim as
provided therein. Any time that a student who is enrolled in
an alternative school program spends in work-based learning,
community service, or a similar alternative educational
setting shall be included in determining the student's
minimum number of clock hours of daily school work that
constitute a day of attendance for purposes of calculating
general State aid.
(c) An alternative school program may receive additional
funding from its school districts in such amount as may be
agreed upon by the parties and necessary to support the
program. In addition, an alternative school program is
authorized to accept and expend gifts, legacies, and grants,
including but not limited to federal grants, from any source
for purposes directly related to the conduct and operation of
the program.
(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
89-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff.
7-31-97.)
(105 ILCS 5/18-8.05)
(This Section may contain text from a Public Act with a
delayed effective date.)
Sec. 18-8.05. Basis for apportionment of general State
financial aid and supplemental general State aid to the
common schools for the 1998-1999 and subsequent school years.
(A) General Provisions.
(1) The provisions of this Section apply to the
1998-1999 and subsequent school years. The system of general
State financial aid provided for in this Section is designed
to assure that, through a combination of State financial aid
and required local resources, the financial support provided
each pupil in Average Daily Attendance equals or exceeds a
prescribed per pupil Foundation Level. This formula approach
imputes a level of per pupil Available Local Resources and
provides for the basis to calculate a per pupil level of
general State financial aid that, when added to Available
Local Resources, equals or exceeds the Foundation Level. The
amount of per pupil general State financial aid for school
districts, in general, varies in inverse relation to
Available Local Resources. Per pupil amounts are based upon
each school district's Average Daily Attendance as that term
is defined in this Section.
(2) In addition to general State financial aid, school
districts with specified levels or concentrations of pupils
from low income households are eligible to receive
supplemental general State financial aid grants as provided
pursuant to subsection (H). The supplemental State aid grants
provided for school districts under subsection (H) shall be
appropriated for distribution to school districts as part of
the same line item in which the general State financial aid
of school districts is appropriated under this Section.
(3) To receive financial assistance under this Section,
school districts are required to file claims with the State
Board of Education, subject to the following requirements:
(a) Any school district which fails for any given
school year to maintain school as required by law, or to
maintain a recognized school is not eligible to file for
such school year any claim upon the Common School Fund.
In case of nonrecognition of one or more attendance
centers in a school district otherwise operating
recognized schools, the claim of the district shall be
reduced in the proportion which the Average Daily
Attendance in the attendance center or centers bear to
the Average Daily Attendance in the school district. A
"recognized school" means any public school which meets
the standards as established for recognition by the State
Board of Education. A school district or attendance
center not having recognition status at the end of a
school term is entitled to receive State aid payments due
upon a legal claim which was filed while it was
recognized.
(b) School district claims filed under this Section
are subject to Sections 18-9, 18-10, and 18-12, except as
otherwise provided in this Section.
(c) If a school district operates a full year
school under Section 10-19.1, the general State aid to
the school district shall be determined by the State
Board of Education in accordance with this Section as
near as may be applicable.
(d) Claims for financial assistance under this
Section shall not be recomputed except as expressly
provided under this Section.
(4) Except as provided in subsections (H) and (L), the
board of any district receiving any of the grants provided
for in this Section may apply those funds to any fund so
received for which that board is authorized to make
expenditures by law.
School districts are not required to exert a minimum
Operating Tax Rate in order to qualify for assistance under
this Section.
(5) As used in this Section the following terms, when
capitalized, shall have the meaning ascribed herein:
(a) "Average Daily Attendance": A count of pupil
attendance in school, averaged as provided for in
subsection (C) and utilized in deriving per pupil
financial support levels.
(b) "Available Local Resources": A computation of
local financial support, calculated on the basis Average
Daily Attendance and derived as provided pursuant to
subsection (D).
(c) "Corporate Personal Property Replacement
Taxes": Funds paid to local school districts pursuant to
"An Act in relation to the abolition of ad valorem
personal property tax and the replacement of revenues
lost thereby, and amending and repealing certain Acts and
parts of Acts in connection therewith", certified August
14, 1979, as amended (Public Act 81-1st S.S.-1).
(d) "Foundation Level": A prescribed level of per
pupil financial support as provided for in subsection
(B).
(e) "Operating Tax Rate": All school district
property taxes extended for all purposes, except
community college educational purposes for the payment of
tuition under Section 6-1 of the Public Community College
Act, Bond and Interest, Summer School, Rent, Capital
Improvement, and Vocational Education Building purposes.
(B) Foundation Level.
(1) The Foundation Level is a figure established by the
State representing the minimum level of per pupil financial
support that should be available to provide for the basic
education of each pupil in Average Daily Attendance. As set
forth in this Section, each school district is assumed to
exert a sufficient local taxing effort such that, in
combination with the aggregate of general State financial aid
provided the district, an aggregate of State and local
resources are available to meet the basic education needs of
pupils in the district.
(2) For the 1998-1999 school year, the Foundation Level
of support is $4,225. For the 1999-2000 school year, the
Foundation Level of support is $4,325. For the 2000-2001
school year, the Foundation Level of support is $4,425.
(3) For the 2001-2002 school year and each school year
thereafter, the Foundation Level of support is $4,425 or such
greater amount as may be established by law by the General
Assembly.
(C) Average Daily Attendance.
(1) For purposes of calculating general State aid
pursuant to subsection (E), an Average Daily Attendance
figure shall be utilized. The Average Daily Attendance
figure for formula calculation purposes shall be the monthly
average of the actual number of pupils in attendance of each
school district, as further averaged for the best 3 months of
pupil attendance for each school district. In compiling the
figures for the number of pupils in attendance, school
districts and the State Board of Education shall, for
purposes of general State aid funding, conform attendance
figures to the requirements of subsection (F).
(2) The Average Daily Attendance figures utilized in
subsection (E) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated.
(D) Available Local Resources.
(1) For purposes of calculating general State aid
pursuant to subsection (E), a representation of Available
Local Resources per pupil, as that term is defined and
determined in this subsection, shall be utilized. Available
Local Resources per pupil shall include a calculated dollar
amount representing local school district revenues from local
property taxes and from Corporate Personal Property
Replacement Taxes, expressed on the basis of pupils in
Average Daily Attendance.
(2) In determining a school district's revenue from
local property taxes, the State Board of Education shall
utilize the equalized assessed valuation of all taxable
property of each school district as of September 30 of the
previous year. The equalized assessed valuation utilized
shall be obtained and determined as provided in subsection
(G).
(3) For school districts maintaining grades kindergarten
through 12, local property tax revenues per pupil shall be
calculated as the product of the applicable equalized
assessed valuation for the district multiplied by 3.00%, and
divided by the district's Average Daily Attendance figure.
For school districts maintaining grades kindergarten through
8, local property tax revenues per pupil shall be calculated
as the product of the applicable equalized assessed valuation
for the district multiplied by 2.30%, and divided by the
district's Average Daily Attendance figure. For school
districts maintaining grades 9 through 12, local property tax
revenues per pupil shall be the applicable equalized assessed
valuation of the district multiplied by 1.20%, and divided by
the district's Average Daily Attendance figure.
(4) The Corporate Personal Property Replacement Taxes
paid to each school district during the calendar year 2 years
before the calendar year in which a school year begins,
divided by the Average Daily Attendance figure for that
district, shall be added to the local property tax revenues
per pupil as derived by the application of the immediately
preceding paragraph (3). The sum of these per pupil figures
for each school district shall constitute Available Local
Resources as that term is utilized in subsection (E) in the
calculation of general State aid.
(E) Computation of General State Aid.
(1) For each school year, the amount of general State
aid allotted to a school district shall be computed by the
State Board of Education as provided in this subsection.
(2) For any school district for which Available Local
Resources per pupil is less than the product of 0.93 times
the Foundation Level, general State aid for that district
shall be calculated as an amount equal to the Foundation
Level minus Available Local Resources, multiplied by the
Average Daily Attendance of the school district.
(3) For any school district for which Available Local
Resources per pupil is equal to or greater than the product
of 0.93 times the Foundation Level and less than the product
of 1.75 times the Foundation Level, the general State aid per
pupil shall be a decimal proportion of the Foundation Level
derived using a linear algorithm. Under this linear
algorithm, the calculated general State aid per pupil shall
decline in direct linear fashion from 0.07 times the
Foundation Level for a school district with Available Local
Resources equal to the product of 0.93 times the Foundation
Level, to 0.05 times the Foundation Level for a school
district with Available Local Resources equal to the product
of 1.75 times the Foundation Level. The allocation of
general State aid for school districts subject to this
paragraph 3 shall be the calculated general State aid per
pupil figure multiplied by the Average Daily Attendance of
the school district.
(4) For any school district for which Available Local
Resources per pupil equals or exceeds the product of 1.75
times the Foundation Level, the general State aid for the
school district shall be calculated as the product of $218
multiplied by the Average Daily Attendance of the school
district.
(F) Compilation of Average Daily Attendance.
(1) Each school district shall, by July 1 of each year,
submit to the State Board of Education, on forms prescribed
by the State Board of Education, attendance figures for the
school year that began in the preceding calendar year. The
attendance information so transmitted shall identify the
average daily attendance figures for each month of the school
year, except that any days of attendance in August shall be
added to the month of September and any days of attendance in
June shall be added to the month of May.
Except as otherwise provided in this Section, days of
attendance by pupils shall be counted only for sessions of
not less than 5 clock hours of school work per day under
direct supervision of: (i) teachers, or (ii) non-teaching
personnel or volunteer personnel when engaging in
non-teaching duties and supervising in those instances
specified in subsection (a) of Section 10-22.34 and paragraph
10 of Section 34-18, with pupils of legal school age and in
kindergarten and grades 1 through 12.
Days of attendance by tuition pupils shall be accredited
only to the districts that pay the tuition to a recognized
school.
(2) Days of attendance by pupils of less than 5 clock
hours of school shall be subject to the following provisions
in the compilation of Average Daily Attendance.
(a) Pupils regularly enrolled in a public school
for only a part of the school day may be counted on the
basis of 1/6 day for every class hour of instruction of
40 minutes or more attended pursuant to such enrollment.
(b) Days of attendance may be less than 5 clock
hours on the opening and closing of the school term, and
upon the first day of pupil attendance, if preceded by a
day or days utilized as an institute or teachers'
workshop.
(c) A session of 4 or more clock hours may be
counted as a day of attendance upon certification by the
regional superintendent, and approved by the State
Superintendent of Education to the extent that the
district has been forced to use daily multiple sessions.
(d) A session of 3 or more clock hours may be
counted as a day of attendance (1) when the remainder of
the school day or at least 2 hours in the evening of that
day is utilized for an in-service training program for
teachers, up to a maximum of 5 days per school year of
which a maximum of 4 days of such 5 days may be used for
parent-teacher conferences, provided a district conducts
an in-service training program for teachers which has
been approved by the State Superintendent of Education;
or, in lieu of 4 such days, 2 full days may be used, in
which event each such day may be counted as a day of
attendance; and (2) when days in addition to those
provided in item (1) are scheduled by a school pursuant
to its school improvement plan adopted under Article 34
or its revised or amended school improvement plan adopted
under Article 2, provided that (i) such sessions of 3 or
more clock hours are scheduled to occur at regular
intervals, (ii) the remainder of the school days in which
such sessions occur are utilized for in-service training
programs or other staff development activities for
teachers, and (iii) a sufficient number of minutes of
school work under the direct supervision of teachers are
added to the school days between such regularly scheduled
sessions to accumulate not less than the number of
minutes by which such sessions of 3 or more clock hours
fall short of 5 clock hours. Any full days used for the
purposes of this paragraph shall not be considered for
computing average daily attendance. Days scheduled for
in-service training programs, staff development
activities, or parent-teacher conferences may be
scheduled separately for different grade levels and
different attendance centers of the district.
(e) A session of not less than one clock hour
teaching of hospitalized or homebound pupils on-site or
by telephone to the classroom may be counted as 1/2 day
of attendance, however these pupils must receive 4 or
more clock hours of instruction to be counted for a full
day of attendance.
(f) A session of at least 4 clock hours may be
counted as a day of attendance for first grade pupils,
and pupils in full day kindergartens, and a session of 2
or more hours may be counted as 1/2 day of attendance by
pupils in kindergartens which provide only 1/2 day of
attendance.
(g) For children with disabilities who are below
the age of 6 years and who cannot attend 2 or more clock
hours because of their disability or immaturity, a
session of not less than one clock hour may be counted as
1/2 day of attendance; however for such children whose
educational needs so require a session of 4 or more clock
hours may be counted as a full day of attendance.
(h) A recognized kindergarten which provides for
only 1/2 day of attendance by each pupil shall not have
more than 1/2 day of attendance counted in any 1 day.
However, kindergartens may count 2 1/2 days of attendance
in any 5 consecutive school days. When a pupil attends
such a kindergarten for 2 half days on any one school
day, the pupil shall have the following day as a day
absent from school, unless the school district obtains
permission in writing from the State Superintendent of
Education. Attendance at kindergartens which provide for
a full day of attendance by each pupil shall be counted
the same as attendance by first grade pupils. Only the
first year of attendance in one kindergarten shall be
counted, except in case of children who entered the
kindergarten in their fifth year whose educational
development requires a second year of kindergarten as
determined under the rules and regulations of the State
Board of Education.
(G) Equalized Assessed Valuation Data.
(1) For purposes of the calculation of Available Local
Resources required pursuant to subsection (D), the State
Board of Education shall secure from the Department of
Revenue the value as equalized or assessed by the Department
of Revenue of all taxable property of every school district
together with the applicable tax rate used in extending taxes
for the funds of the district as of September 30 of the
previous year.
This equalized assessed valuation, as adjusted further by
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
(2) The equalized assessed valuation in paragraph (1)
shall be adjusted, as applicable, in the following manner:
(a) For the purposes of calculating State aid under
this Section, with respect to any part of a school
district within a redevelopment project area in respect
to which a municipality has adopted tax increment
allocation financing pursuant to the Tax Increment
Allocation Redevelopment Act, Sections 11-74.4-1 through
11-74.4-11 of the Illinois Municipal Code or the
Industrial Jobs Recovery Law, Sections 11-74.6-1 through
11-74.6-50 of the Illinois Municipal Code, no part of the
current equalized assessed valuation of real property
located in any such project area which is attributable to
an increase above the total initial equalized assessed
valuation of such property shall be used as part of the
equalized assessed valuation of the district, until such
time as all redevelopment project costs have been paid,
as provided in Section 11-74.4-8 of the Tax Increment
Allocation Redevelopment Act or in Section 11-74.6-35 of
the Industrial Jobs Recovery Law. For the purpose of the
equalized assessed valuation of the district, the total
initial equalized assessed valuation or the current
equalized assessed valuation, whichever is lower, shall
be used until such time as all redevelopment project
costs have been paid.
(b) The real property equalized assessed valuation
for a school district shall be adjusted by subtracting
from the real property value as equalized or assessed by
the Department of Revenue for the district an amount
computed by dividing the amount of any abatement of taxes
under Section 18-170 of the Property Tax Code by 3.00%
for a district maintaining grades kindergarten through 12
or by 2.30% for a district maintaining grades
kindergarten through 8, or by 1.20% for a district
maintaining grades 9 through 12 and adjusted by an amount
computed by dividing the amount of any abatement of taxes
under subsection (a) of Section 18-165 of the Property
Tax Code by the same percentage rates for district type
as specified in this subparagraph (c).
(H) Supplemental General State Aid.
(1) In addition to the general State aid a school
district is allotted pursuant to subsection (E), qualifying
school districts shall receive a grant, paid in conjunction
with a district's payments of general State aid, for
supplemental general State aid based upon the concentration
level of children from low-income households within the
school district. Supplemental State aid grants provided for
school districts under this subsection shall be appropriated
for distribution to school districts as part of the same line
item in which the general State financial aid of school
districts is appropriated under this Section. For purposes of
this subsection, the term "Low-Income Concentration Level"
shall be the low-income eligible pupil count from the most
recently available federal census divided by the Average
Daily Attendance of the school district.
(2) Supplemental general State aid pursuant to this
subsection shall be provided as follows:
(a) For any school district with a Low Income
Concentration Level of at least 20% and less than 35%,
the grant for any school year shall be $800 multiplied by
the low income eligible pupil count.
(b) For any school district with a Low Income
Concentration Level of at least 35% and less than 50%,
the grant for the 1998-1999 school year shall be $1,100
multiplied by the low income eligible pupil count.
(c) For any school district with a Low Income
Concentration Level of at least 50% and less than 60%,
the grant for the 1998-99 school year shall be $1,500
multiplied by the low income eligible pupil count.
(d) For any school district with a Low Income
Concentration Level of 60% or more, the grant for the
1998-99 school year shall be $1,900 multiplied by the low
income eligible pupil count.
(e) For the 1999-2000 school year, the per pupil
amount specified in subparagraphs (b), (c), and (d),
immediately above shall be increased by $100 to $1,200,
$1,600, and $2,000, respectively.
(f) For the 2000-2001 school year, the per pupil
amounts specified in subparagraphs (b), (c) and (d)
immediately above shall be increased to $1,230, $1,640,
and $2,050, respectively.
(3) School districts with an Average Daily Attendance of
more than 1,000 and less than 50,000 that qualify for
supplemental general State aid pursuant to this subsection
shall submit a plan to the State Board of Education prior to
October 30 of each year for the use of the funds resulting
from this grant of supplemental general State aid for the
improvement of instruction in which priority is given to
meeting the education needs of disadvantaged children. Such
plan shall be submitted in accordance with rules and
regulations promulgated by the State Board of Education.
(4) School districts with an Average Daily Attendance of
50,000 or more that qualify for supplemental general State
aid pursuant to this subsection shall be required to
distribute from funds available pursuant to this Section, no
less than $261,000,000 in accordance with the following
requirements:
(a) The required amounts shall be distributed to
the attendance centers within the district in proportion
to the number of pupils enrolled at each attendance
center who are eligible to receive free or reduced-price
lunches or breakfasts under the federal Child Nutrition
Act of 1966 and under the National School Lunch Act
during the immediately preceding school year.
(b) The distribution of these portions of
supplemental and general State aid among attendance
centers according to these requirements shall not be
compensated for or contravened by adjustments of the
total of other funds appropriated to any attendance
centers, and the Board of Education shall utilize funding
from one or several sources in order to fully implement
this provision annually prior to the opening of school.
(c) Each attendance center shall be provided by the
school district a distribution of noncategorical funds
and other categorical funds to which an attendance center
is entitled under law in order that the general State aid
and supplemental general State aid provided by
application of this subsection supplements rather than
supplants the noncategorical funds and other categorical
funds provided by the school district to the attendance
centers.
(d) Any funds made available under this subsection
that by reason of the provisions of this subsection are
not required to be allocated and provided to attendance
centers may be used and appropriated by the board of the
district for any lawful school purpose.
(e) Funds received by an attendance center pursuant
to this subsection shall be used by the attendance center
at the discretion of the principal and local school
council for programs to improve educational opportunities
at qualifying schools through the following programs and
services: early childhood education, reduced class size
or improved adult to student classroom ratio, enrichment
programs, remedial assistance, attendance improvement and
other educationally beneficial expenditures which
supplement the regular and basic programs as determined
by the State Board of Education. Funds provided shall
not be expended for any political or lobbying purposes as
defined by board rule.
(f) Each district subject to the provisions of this
subdivision (H)(4) shall submit an acceptable plan to
meet the educational needs of disadvantaged children, in
compliance with the requirements of this paragraph, to
the State Board of Education prior to July 15 of each
year. This plan shall be consistent with the decisions of
local school councils concerning the school expenditure
plans developed in accordance with part 4 of Section
34-2.3. The State Board shall approve or reject the plan
within 60 days after its submission. If the plan is
rejected, the district shall give written notice of
intent to modify the plan within 15 days of the
notification of rejection and then submit a modified plan
within 30 days after the date of the written notice of
intent to modify. Districts may amend approved plans
pursuant to rules promulgated by the State Board of
Education.
Upon notification by the State Board of Education
that the district has not submitted a plan prior to July
15 or a modified plan within the time period specified
herein, the State aid funds affected by that plan or
modified plan shall be withheld by the State Board of
Education until a plan or modified plan is submitted.
If the district fails to distribute State aid to
attendance centers in accordance with an approved plan,
the plan for the following year shall allocate funds, in
addition to the funds otherwise required by this
subsection, to those attendance centers which were
underfunded during the previous year in amounts equal to
such underfunding.
For purposes of determining compliance with this
subsection in relation to the requirements of attendance
center funding, each district subject to the provisions
of this subsection shall submit as a separate document by
December 1 of each year a report of expenditure data for
the prior year in addition to any modification of its
current plan. If it is determined that there has been a
failure to comply with the expenditure provisions of this
subsection regarding contravention or supplanting, the
State Superintendent of Education shall, within 60 days
of receipt of the report, notify the district and any
affected local school council. The district shall within
45 days of receipt of that notification inform the State
Superintendent of Education of the remedial or corrective
action to be taken, whether by amendment of the current
plan, if feasible, or by adjustment in the plan for the
following year. Failure to provide the expenditure
report or the notification of remedial or corrective
action in a timely manner shall result in a withholding
of the affected funds.
The State Board of Education shall promulgate rules
and regulations to implement the provisions of this
subsection. No funds shall be released under this
subdivision (H)(4) to any district that has not submitted
a plan that has been approved by the State Board of
Education.
(I) General State Aid for Newly Configured School Districts.
(1) For a new school district formed by combining
property included totally within 2 or more previously
existing school districts, for its first year of existence
the general State aid and supplemental general State aid
calculated under this Section shall be computed for the new
district and for the previously existing districts for which
property is totally included within the new district. If the
computation on the basis of the previously existing districts
is greater, a supplementary payment equal to the difference
shall be made for the first 4 years of existence of the new
district.
(2) For a school district which annexes all of the
territory of one or more entire other school districts, for
the first year during which the change of boundaries
attributable to such annexation becomes effective for all
purposes as determined under Section 7-9 or 7A-8, the general
State aid and supplemental general State aid calculated under
this Section shall be computed for the annexing district as
constituted after the annexation and for the annexing and
each annexed district as constituted prior to the annexation;
and if the computation on the basis of the annexing and
annexed districts as constituted prior to the annexation is
greater, a supplementary payment equal to the difference
shall be made for the first 4 years of existence of the
annexing school district as constituted upon such annexation.
(3) For 2 or more school districts which annex all of
the territory of one or more entire other school districts,
and for 2 or more community unit districts which result upon
the division (pursuant to petition under Section 11A-2) of
one or more other unit school districts into 2 or more parts
and which together include all of the parts into which such
other unit school district or districts are so divided, for
the first year during which the change of boundaries
attributable to such annexation or division becomes effective
for all purposes as determined under Section 7-9 or 11A-10,
as the case may be, the general State aid and supplemental
general State aid calculated under this Section shall be
computed for each annexing or resulting district as
constituted after the annexation or division and for each
annexing and annexed district, or for each resulting and
divided district, as constituted prior to the annexation or
division; and if the aggregate of the general State aid and
supplemental general State aid as so computed for the
annexing or resulting districts as constituted after the
annexation or division is less than the aggregate of the
general State aid and supplemental general State aid as so
computed for the annexing and annexed districts, or for the
resulting and divided districts, as constituted prior to the
annexation or division, then a supplementary payment equal to
the difference shall be made and allocated between or among
the annexing or resulting districts, as constituted upon such
annexation or division, for the first 4 years of their
existence. The total difference payment shall be allocated
between or among the annexing or resulting districts in the
same ratio as the pupil enrollment from that portion of the
annexed or divided district or districts which is annexed to
or included in each such annexing or resulting district bears
to the total pupil enrollment from the entire annexed or
divided district or districts, as such pupil enrollment is
determined for the school year last ending prior to the date
when the change of boundaries attributable to the annexation
or division becomes effective for all purposes. The amount
of the total difference payment and the amount thereof to be
allocated to the annexing or resulting districts shall be
computed by the State Board of Education on the basis of
pupil enrollment and other data which shall be certified to
the State Board of Education, on forms which it shall provide
for that purpose, by the regional superintendent of schools
for each educational service region in which the annexing and
annexed districts, or resulting and divided districts are
located.
(4) Any supplementary payment made under this subsection
(I) shall be treated as separate from all other payments made
pursuant to this Section.
(J) Supplementary Grants in Aid.
(1) Notwithstanding any other provisions of this
Section, the amount of the aggregate general State aid in
combination with supplemental general State aid under this
Section for which each school district is eligible for the
1998-1999 school year shall be no less than the amount of the
aggregate general State aid entitlement that was received by
the district under Section 18-8 (exclusive of amounts
received under subsections 5(p) and 5(p-5) of that Section)
for the 1997-98 school year, pursuant to the provisions of
that Section as it was then in effect. If a school district
qualifies to receive a supplementary payment made under this
subsection (J) for the 1998-1999 school year, the amount of
the aggregate general State aid in combination with
supplemental general State aid under this Section which that
district is eligible to receive for each school year
subsequent to the 1998-1999 school year shall be no less than
the amount of the aggregate general State aid entitlement
that was received by the district under Section 18-8
(exclusive of amounts received under subsections 5(p) and
5(p-5) of that Section) for the 1997-1998 school year,
pursuant to the provisions of that Section as it was then in
effect.
(2) If, as provided in paragraph (1) of this subsection
(J), a school district is to receive aggregate general State
aid in combination with supplemental general State aid under
this Section for the 1998-99 school year, or for the 1998-99
school year and any subsequent school year, that in any such
school year is less than the amount of the aggregate general
State aid entitlement that the district received for the
1997-98 school year, the school district shall also receive,
from a separate appropriation made for purposes of this
subsection (J), a supplementary payment that is equal to the
amount of the difference in the aggregate State aid figures
as described in paragraph (1).
(3) If the amount appropriated for supplementary
payments to school districts under this subsection (J) is
insufficient for that purpose, the supplementary payments
that districts are to receive under this subsection shall be
prorated according to the aggregate amount of the
appropriation made for purposes of this subsection.
(K) Grants to Laboratory and Alternative Schools.
In calculating the amount to be paid to the governing
board of a public university that operates a laboratory
school under this Section or to any alternative school that
is operated by a regional superintendent, the State Board of
Education shall require by rule such reporting requirements
as it deems necessary.
As used in this Section, "laboratory school" means a
public school which is created and operated by a public
university and approved by the State Board of Education. The
governing board of a public university which receives funds
from the State Board under this subsection (K) may not
increase the number of students enrolled in its laboratory
school from a single district, if that district is already
sending 50 or more students, except under a mutual agreement
between the school board of a student's district of residence
and the university which operates the laboratory school. A
laboratory school may not have more than 1,000 students,
excluding students with disabilities in a special education
program.
As used in this Section, "alternative school" means a
public school which is created and operated by a Regional
Superintendent of Schools and approved by the State Board of
Education. Such alternative schools may offer courses of
instruction for which credit is given in regular school
programs, courses to prepare students for the high school
equivalency testing program or vocational and occupational
training. A regional superintendent may contract with a
school district or a public community college district to
operate an alternative school. An alternative school serving
more than one educational service region may be established
by the regional superintendents of those educational service
regions.
Each laboratory and alternative school shall file, on
forms provided by the State Superintendent of Education, an
annual State aid claim which states the Average Daily
Attendance of the school's students by month. The best 3
months' Average Daily Attendance shall be computed for each
school. The general State aid entitlement shall be computed
by multiplying the applicable Average Daily Attendance by the
Foundation Level as determined under this Section.
(L) Payments, Additional Grants in Aid and Other
Requirements.
(1) For a school district operating under the financial
supervision of an Authority created under Article 34A, the
general State aid otherwise payable to that district under
this Section, but not the supplemental general State aid,
shall be reduced by an amount equal to the budget for the
operations of the Authority as certified by the Authority to
the State Board of Education, and an amount equal to such
reduction shall be paid to the Authority created for such
district for its operating expenses in the manner provided in
Section 18-11. The remainder of general State school aid for
any such district shall be paid in accordance with Article
34A when that Article provides for a disposition other than
that provided by this Article.
(2) Impaction. Impaction payments shall be made as
provided for in Section 18-4.2.
(3) Summer school. Summer school payments shall be made
as provided in Section 18-4.3.
(M) Education Funding Advisory Board.
The Education Funding Advisory Board, hereinafter in this
subsection (M) referred to as the "Board", is hereby created.
The Board shall consist of 5 members who are appointed by the
Governor, by and with the advice and consent of the Senate.
The members appointed shall include representatives of
education, business, and the general public. One of the
members so appointed shall be designated by the Governor at
the time the appointment is made as the chairperson of the
Board. The initial members of the Board may be appointed any
time after the effective date of this amendatory Act of 1997.
The regular term of each member of the Board shall be for 4
years from the third Monday of January of the year in which
the term of the member's appointment is to commence, except
that of the 5 initial members appointed to serve on the
Board, the member who is appointed as the chairperson shall
serve for a term that commences on the date of his or her
appointment and expires on the third Monday of January, 2002,
and the remaining 4 members, by lots drawn at the first
meeting of the Board that is held after all 5 members are
appointed, shall determine 2 of their number to serve for
terms that commence on the date of their respective
appointments and expire on the third Monday of January, 2001,
and 2 of their number to serve for terms that commence on the
date of their respective appointments and expire on the third
Monday of January, 2000. All members appointed to serve on
the Board shall serve until their respective successors are
appointed and confirmed. Vacancies shall be filled in the
same manner as original appointments. If a vacancy in
membership occurs at a time when the Senate is not in
session, the Governor shall make a temporary appointment
until the next meeting of the Senate, when he or she shall
appoint, by and with the advice and consent of the Senate, a
person to fill that membership for the unexpired term. If
the Senate is not in session when the initial appointments
are made, those appointments shall be made as in the case of
vacancies.
The Education Funding Advisory Board shall be deemed
established, and the initial members appointed by the
Governor to serve as members of the Board shall take office,
on the date that the Governor makes his or her appointment of
the fifth initial member of the Board, whether those initial
members are then serving pursuant to appointment and
confirmation or pursuant to temporary appointments that are
made by the Governor as in the case of vacancies.
The State Board of Education shall provide such staff
assistance to the Education Funding Advisory Board as is
reasonably required for the proper performance by the Board
of its responsibilities.
For school years after the 2000-2001 school year, the
Education Funding Advisory Board, in consultation with the
State Board of Education, shall make recommendations as
provided in this subsection (M) to the General Assembly for
the foundation level under subdivision (B)(3) of this Section
and for the supplemental general State aid grant level under
subsection (H) of this Section for districts with high
concentrations of children from poverty. The recommended
foundation level shall be determined based on a methodology
which incorporates the basic education expenditures of
low-spending schools exhibiting high academic performance.
The Education Funding Advisory Board shall make such
recommendations to the General Assembly on January 1 of odd
numbered years, beginning January 1, 2001.
(N) General State Aid Adjustment Grant.
(1) Any school district subject to property tax
extension limitations as imposed under the provisions of the
Property Tax Extension Limitation Law shall be entitled to
receive, subject to the qualifications and requirements of
this subsection, a general State aid adjustment grant.
Eligibility for this grant shall be determined on an annual
basis and claims for grant payments shall be paid subject to
appropriations made specific to this subsection. For
purposes of this subsection the following terms shall have
the following meanings:
"Budget Year": The school year for which general State
aid is calculated and awarded under subsection (E).
"Current Year": The school year immediately preceding
the Budget Year.
"Base Tax Year": The property tax levy year used to
calculate the Budget Year allocation of general State aid.
"Preceding Tax Year": The property tax levy year
immediately preceding the Base Tax Year.
"Extension Limitation Ratio": A numerical ratio,
certified by a school district's County Clerk, in which the
numerator is the Base Tax Year's tax extension amount
resulting from the Operating Tax Rate and the denominator is
the Preceding Tax Year's tax extension amount resulting from
the Operating Tax Rate.
"Operating Tax Rate": The operating tax rate as defined
in subsection (A).
(2) To qualify for a general State aid adjustment grant,
a school district must meet all of the following eligibility
criteria for each Budget Year for which a grant is claimed:
(a) The Operating Tax Rate of the school district
in the Preceding Tax Year was at least 3.00% in the case
of a school district maintaining grades kindergarten
through 12, at least 2.30% in the case of a school
district maintaining grades kindergarten through 8, or at
least 1.41% in the case of a school district maintaining
grades 9 through 12.
(b) The Operating Tax Rate of the school district
for the Base Tax Year was reduced by the Clerk of the
County as a result of the requirements of the Property
Tax Extension Limitation Law.
(c) The Available Local Resources per pupil of the
school district as calculated pursuant to subsection (D)
using the Base Tax Year are less than the product of 1.75
times the Foundation Level for the Budget Year.
(d) The school district has filed a proper and
timely claim for a general State aid adjustment grant as
required under this subsection.
(3) A claim for grant assistance under this subsection
shall be filed with the State Board of Education on or before
January 1 of the Current Year for a grant for the Budget
Year. The claim shall be made on forms prescribed by the
State Board of Education and must be accompanied by a written
statement from the Clerk of the County, certifying:
(a) That the school district has its extension for
the Base Tax Year reduced as a result of the Property Tax
Extension Limitation Law.
(b) That the Operating Tax Rate of the school
district for the Preceding Tax Year met the tax rate
requirements of subdivision (N)(2) of this Section.
(c) The Extension Limitation Ratio as that term is
defined in this subsection.
(4) On or before August 1 of the Budget Year the State
Board of Education shall calculate, for all school districts
meeting the other requirements of this subsection, the amount
of the general State aid adjustment grant, if any, that the
school districts are eligible to receive in the Budget Year.
The amount of the general State aid adjustment grant shall be
calculated as follows:
(a) Determine the school district's general State
aid grant for the Budget Year as provided in accordance
with the provisions of subsection (E).
(b) Determine the school district's adjusted level
of general State aid by utilizing in the calculation of
Available Local Resources an equalized assessed valuation
that is the equalized assessed valuation of the Preceding
Tax Year multiplied by the Extension Limitation Ratio.
(c) Subtract the sum derived in subparagraph (a)
from the sum derived in subparagraph (b). If the result
is a positive number, that amount shall be the general
State aid adjustment grant that the district is eligible
to receive.
(5) The State Board of Education shall in the Current
Year, based upon claims filed in the Current Year, recommend
to the General Assembly an appropriation amount for the
general State aid adjustment grants to be made in the Budget
Year.
(6) Claims for general State aid adjustment grants shall
be paid in a lump sum on or before January 1 of the Budget
Year only from appropriations made by the General Assembly
expressly for claims under this subsection. No such claims
may be paid from amounts appropriated for any other purpose
provided for under this Section. In the event that the
appropriation for claims under this subsection is
insufficient to meet all Budget Year claims for a general
State aid adjustment grant, the appropriation available shall
be proportionately prorated by the State Board of Education
amongst all districts filing for and entitled to payments.
(7) The State Board of Education shall promulgate the
required claim forms and rules necessary to implement the
provisions of this subsection.
(O) References.
(1) References in other laws to the various subdivisions
of Section 18-8 as that Section existed before its repeal and
replacement by this Section 18-8.05 shall be deemed to refer
to the corresponding provisions of this Section 18-8.05, to
the extent that those references remain applicable.
(2) References in other laws to State Chapter 1 funds
shall be deemed to refer to the supplemental general State
aid provided under subsection (H) of this Section.
(Source: P.A. 90-548, eff. 7-1-98.)
Section 99. Effective date. This Act takes effect upon
becoming law, except that the provisions changing Sections
2-3.66, 10-22.20, 13A-8, and 18-8.05 of the School Code take
effect July 1, 1998.