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92nd General Assembly

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Public Act 92-0029

SB377 Enrolled                                 LRB9207374NTsb

    AN ACT with respect to schools.

    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
Section 18-8.05 as follows:

    (105 ILCS 5/18-8.05)
    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) (Blank).
    (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  of
    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 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 1.05%, 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.
    (5)  The amount of  general  State  aid  allocated  to  a
school  district  for  the  1999-2000 school year meeting the
requirements set forth in paragraph  (4)  of  subsection  (G)
shall  be  increased  by an amount equal to the general State
aid that would have been received by  the  district  for  the
1998-1999  school  year by utilizing the Extension Limitation
Equalized Assessed Valuation as calculated in  paragraph  (4)
of subsection (G) less the general State aid allotted for the
1998-1999  school  year.   This  amount shall be deemed a one
time increase, and shall not affect any future general  State
aid allocations.

(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,
    unless  a pupil is enrolled in a block-schedule format of
    80 minutes or more of  instruction,  in  which  case  the
    pupil  may  be  counted on the basis of the proportion of
    minutes of school work completed each day to the  minimum
    number of minutes that school work is required to be held
    that day.
         (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 of
    teaching 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  one  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 (i) the applicable tax rate used  in  extending
taxes for the funds of the district as of September 30 of the
previous  year  and  (ii)  the  limiting  rate for all school
districts subject to property tax  extension  limitations  as
imposed under the Property Tax Extension Limitation Law.
    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,   by   2.30%   for   a  district  maintaining  grades
    kindergarten through  8,  or  by  1.05%  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 (b).
    (3)  For  the  1999-2000 school year and each school year
thereafter, if a school district meets all of the criteria of
this subsection (G)(3), the school district's Available Local
Resources shall be calculated under subsection (D) using  the
district's  Extension Limitation Equalized Assessed Valuation
as calculated under this subsection (G)(3).
    For purposes of  this  subsection  (G)(3)  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).
         "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.
         "Base  Tax Year's Tax Extension": The product of the
    equalized assessed valuation utilized by the County Clerk
    in the Base Tax Year multiplied by the limiting  rate  as
    calculated  by  the  County  Clerk  and  defined  in  the
    Property Tax Extension Limitation Law.
         "Preceding Tax Year's Tax Extension": The product of
    the  equalized  assessed valuation utilized by the County
    Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
    Operating Tax Rate as defined in subsection (A).
         "Extension Limitation  Ratio":  A  numerical  ratio,
    certified  by the County Clerk, in which the numerator is
    the Base Tax Year's Tax Extension and the denominator  is
    the Preceding Tax Year's Tax Extension.
         "Operating  Tax  Rate":  The  operating  tax rate as
    defined in subsection (A).
    If a school district is subject to property tax extension
limitations as  imposed  under  the  Property  Tax  Extension
Limitation  Law, and if the Available Local Resources of that
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,  the  State
Board  of  Education shall calculate the Extension Limitation
Equalized Assessed  Valuation  of  that  district.   For  the
1999-2000  school  year,  the  Extension Limitation Equalized
Assessed Valuation of a school district as calculated by  the
State Board of Education shall be equal to the product of the
district's   1996   Equalized   Assessed  Valuation  and  the
district's Extension Limitation  Ratio.   For  the  2000-2001
school  year  and  each school year thereafter, the Extension
Limitation Equalized Assessed Valuation of a school  district
as  calculated by the State Board of Education shall be equal
to the product of the last  calculated  Extension  Limitation
Equalized  Assessed  Valuation  and  the district's Extension
Limitation  Ratio.  If  the  Extension  Limitation  Equalized
Assessed Valuation of a school district as  calculated  under
this  subsection (G)(3) is less than the district's equalized
assessed valuation  as  calculated  pursuant  to  subsections
(G)(1)  and  (G)(2),  then  for  purposes  of calculating the
district's general State aid for the Budget Year pursuant  to
subsection  (E), that Extension Limitation Equalized Assessed
Valuation shall  be  utilized  to  calculate  the  district's
Available Local Resources under subsection (D).
    (4)  For  the  purposes  of calculating general State aid
for the 1999-2000 school year  only,  if  a  school  district
experienced   a   triennial  reassessment  on  the  equalized
assessed valuation used  in  calculating  its  general  State
financial  aid  apportionment  for the 1998-1999 school year,
the State Board of Education shall  calculate  the  Extension
Limitation  Equalized Assessed Valuation that would have been
used to calculate the district's 1998-1999 general State aid.
This amount shall equal the product of the equalized assessed
valuation  used  to  calculate  general  State  aid  for  the
1997-1998 school year and the district's Extension Limitation
Ratio.   If  the  Extension  Limitation  Equalized   Assessed
Valuation  of  the  school  district as calculated under this
paragraph (4) is less than the district's equalized  assessed
valuation  utilized  in  calculating the district's 1998-1999
general  State  aid  allocation,   then   for   purposes   of
calculating  the  district's  general  State  aid pursuant to
paragraph (5) of subsection (E),  that  Extension  Limitation
Equalized  Assessed  Valuation shall be utilized to calculate
the district's Available Local Resources.
    (5)  For school districts  having  a  majority  of  their
equalized  assessed  valuation  in  any  county  except Cook,
DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
general  State  aid  allocated to the school district for the
1999-2000 school year under the provisions of subsection (E),
(H), and (J) of this Section  is  less  than  the  amount  of
general State aid allocated to the district for the 1998-1999
school  year  under these subsections, then the general State
aid of the district for the 1999-2000 school year only  shall
be  increased  by  the difference between these amounts.  The
total payments made under this paragraph (5) shall not exceed
$14,000,000.   Claims  shall  be  prorated  if  they   exceed
$14,000,000.

(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. If, however, the
percentage decrease from the 2 most recent  federal  censuses
in  the  low-income  eligible  pupil  count  of a high school
district with fewer than 400 students exceeds by 75% or  more
the  percentage change in the total low-income eligible pupil
count  of  contiguous  elementary  school  districts,   whose
boundaries are coterminous with the high school district, the
high  school  district's low-income eligible pupil count from
the earlier federal census shall be the number  used  as  the
low-income eligible pupil count for the high school district,
for purposes of this subsection (H).
    (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 to  $1,243,  $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 $1,273, $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.
    (3.5)  Claims  for  financial   assistance   under   this
subsection  (I)  shall  not be recomputed except as expressly
provided under this Section.
    (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 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),  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 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 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)  (Blank).

(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  of  schools,  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 of schools 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 schools of the
affected educational service regions.  An alternative  school
serving  more  than  one  educational  service  region may be
operated under such terms as the regional superintendents  of
schools of those educational service regions may agree.
    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)  (Blank).
    (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)  (Blank).

(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;  incorporates  90-566;
90-653, eff. 7-29-98;  90-654,  eff.  7-29-98;  90-655,  eff.
7-30-98;  90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24,
eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99;  91-111,
eff.  7-14-99;  91-357,  eff.  7-29-99; 91-533, eff. 8-13-99;
revised 8-27-99.)

    Section 99.  Effective date.  This Act  takes  effect  on
July 1, 2001.
    Passed in the General Assembly April 19, 2001.
    Approved June 28, 2001.

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