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91_HB3464eng HB3464 Engrossed LRB9111938NTpr 1 AN ACT to amend the School Code by changing Section 2 18-8.05. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The School Code is amended by changing 6 Section 18-8.05 as follows: 7 (105 ILCS 5/18-8.05) 8 Sec. 18-8.05. Basis for apportionment of general State 9 financial aid and supplemental general State aid to the 10 common schools for the 1998-1999 and subsequent school years. 11 (A) General Provisions. 12 (1) The provisions of this Section apply to the 13 1998-1999 and subsequent school years. The system of general 14 State financial aid provided for in this Section is designed 15 to assure that, through a combination of State financial aid 16 and required local resources, the financial support provided 17 each pupil in Average Daily Attendance equals or exceeds a 18 prescribed per pupil Foundation Level. This formula approach 19 imputes a level of per pupil Available Local Resources and 20 provides for the basis to calculate a per pupil level of 21 general State financial aid that, when added to Available 22 Local Resources, equals or exceeds the Foundation Level. The 23 amount of per pupil general State financial aid for school 24 districts, in general, varies in inverse relation to 25 Available Local Resources. Per pupil amounts are based upon 26 each school district's Average Daily Attendance as that term 27 is defined in this Section. 28 (2) In addition to general State financial aid, school 29 districts with specified levels or concentrations of pupils 30 from low income households are eligible to receive 31 supplemental general State financial aid grants as provided HB3464 Engrossed -2- LRB9111938NTpr 1 pursuant to subsection (H). The supplemental State aid grants 2 provided for school districts under subsection (H) shall be 3 appropriated for distribution to school districts as part of 4 the same line item in which the general State financial aid 5 of school districts is appropriated under this Section. 6 (3) To receive financial assistance under this Section, 7 school districts are required to file claims with the State 8 Board of Education, subject to the following requirements: 9 (a) Any school district which fails for any given 10 school year to maintain school as required by law, or to 11 maintain a recognized school is not eligible to file for 12 such school year any claim upon the Common School Fund. 13 In case of nonrecognition of one or more attendance 14 centers in a school district otherwise operating 15 recognized schools, the claim of the district shall be 16 reduced in the proportion which the Average Daily 17 Attendance in the attendance center or centers bear to 18 the Average Daily Attendance in the school district. A 19 "recognized school" means any public school which meets 20 the standards as established for recognition by the State 21 Board of Education. A school district or attendance 22 center not having recognition status at the end of a 23 school term is entitled to receive State aid payments due 24 upon a legal claim which was filed while it was 25 recognized. 26 (b) School district claims filed under this Section 27 are subject to Sections 18-9, 18-10, and 18-12, except as 28 otherwise provided in this Section. 29 (c) If a school district operates a full year 30 school under Section 10-19.1, the general State aid to 31 the school district shall be determined by the State 32 Board of Education in accordance with this Section as 33 near as may be applicable. 34 (d) (Blank). HB3464 Engrossed -3- LRB9111938NTpr 1 (4) Except as provided in subsections (H) and (L), the 2 board of any district receiving any of the grants provided 3 for in this Section may apply those funds to any fund so 4 received for which that board is authorized to make 5 expenditures by law. 6 School districts are not required to exert a minimum 7 Operating Tax Rate in order to qualify for assistance under 8 this Section. 9 (5) As used in this Section the following terms, when 10 capitalized, shall have the meaning ascribed herein: 11 (a) "Average Daily Attendance": A count of pupil 12 attendance in school, averaged as provided for in 13 subsection (C) and utilized in deriving per pupil 14 financial support levels. 15 (b) "Available Local Resources": A computation of 16 local financial support, calculated on the basis of 17 Average Daily Attendance and derived as provided pursuant 18 to subsection (D). 19 (c) "Corporate Personal Property Replacement 20 Taxes": Funds paid to local school districts pursuant to 21 "An Act in relation to the abolition of ad valorem 22 personal property tax and the replacement of revenues 23 lost thereby, and amending and repealing certain Acts and 24 parts of Acts in connection therewith", certified August 25 14, 1979, as amended (Public Act 81-1st S.S.-1). 26 (d) "Foundation Level": A prescribed level of per 27 pupil financial support as provided for in subsection 28 (B). 29 (e) "Operating Tax Rate": All school district 30 property taxes extended for all purposes, except Bond and 31 Interest, Summer School, Rent, Capital Improvement, and 32 Vocational Education Building purposes. 33 (B) Foundation Level. 34 (1) The Foundation Level is a figure established by the HB3464 Engrossed -4- LRB9111938NTpr 1 State representing the minimum level of per pupil financial 2 support that should be available to provide for the basic 3 education of each pupil in Average Daily Attendance. As set 4 forth in this Section, each school district is assumed to 5 exert a sufficient local taxing effort such that, in 6 combination with the aggregate of general State financial aid 7 provided the district, an aggregate of State and local 8 resources are available to meet the basic education needs of 9 pupils in the district. 10 (2) For the 1998-1999 school year, the Foundation Level 11 of support is $4,225. For the 1999-2000 school year, the 12 Foundation Level of support is $4,325. For the 2000-2001 13 school year, the Foundation Level of support is $4,425. 14 (3) For the 2001-2002 school year and each school year 15 thereafter, the Foundation Level of support is $4,425 or such 16 greater amount as may be established by law by the General 17 Assembly. 18 (C) Average Daily Attendance. 19 (1) For purposes of calculating general State aid 20 pursuant to subsection (E), an Average Daily Attendance 21 figure shall be utilized. The Average Daily Attendance 22 figure for formula calculation purposes shall be the monthly 23 average of the actual number of pupils in attendance of each 24 school district, as further averaged for the best 3 months of 25 pupil attendance for each school district. In compiling the 26 figures for the number of pupils in attendance, school 27 districts and the State Board of Education shall, for 28 purposes of general State aid funding, conform attendance 29 figures to the requirements of subsection (F). 30 (2) The Average Daily Attendance figures utilized in 31 subsection (E) shall be the requisite attendance data for the 32 school year immediately preceding the school year for which 33 general State aid is being calculated or the average of the 34 attendance data for the 3 preceding school years, whichever HB3464 Engrossed -5- LRB9111938NTpr 1 is greater. The Average Daily Attendance figures utilized in 2 subsection (H) shall be the requisite attendance data for the 3 school year immediately preceding the school year for which 4 supplemental general State aid is being calculated. 5 (D) Available Local Resources. 6 (1) For purposes of calculating general State aid 7 pursuant to subsection (E), a representation of Available 8 Local Resources per pupil, as that term is defined and 9 determined in this subsection, shall be utilized. Available 10 Local Resources per pupil shall include a calculated dollar 11 amount representing local school district revenues from local 12 property taxes and from Corporate Personal Property 13 Replacement Taxes, expressed on the basis of pupils in 14 Average Daily Attendance. 15 (2) In determining a school district's revenue from 16 local property taxes, the State Board of Education shall 17 utilize the equalized assessed valuation of all taxable 18 property of each school district as of September 30 of the 19 previous year. The equalized assessed valuation utilized 20 shall be obtained and determined as provided in subsection 21 (G). 22 (3) For school districts maintaining grades kindergarten 23 through 12, local property tax revenues per pupil shall be 24 calculated as the product of the applicable equalized 25 assessed valuation for the district multiplied by 3.00%, and 26 divided by the district's Average Daily Attendance figure. 27 For school districts maintaining grades kindergarten through 28 8, local property tax revenues per pupil shall be calculated 29 as the product of the applicable equalized assessed valuation 30 for the district multiplied by 2.30%, and divided by the 31 district's Average Daily Attendance figure. For school 32 districts maintaining grades 9 through 12, local property tax 33 revenues per pupil shall be the applicable equalized assessed 34 valuation of the district multiplied by 1.05%, and divided by HB3464 Engrossed -6- LRB9111938NTpr 1 the district's Average Daily Attendance figure. 2 (4) The Corporate Personal Property Replacement Taxes 3 paid to each school district during the calendar year 2 years 4 before the calendar year in which a school year begins, 5 divided by the Average Daily Attendance figure for that 6 district, shall be added to the local property tax revenues 7 per pupil as derived by the application of the immediately 8 preceding paragraph (3). The sum of these per pupil figures 9 for each school district shall constitute Available Local 10 Resources as that term is utilized in subsection (E) in the 11 calculation of general State aid. 12 (E) Computation of General State Aid. 13 (1) For each school year, the amount of general State 14 aid allotted to a school district shall be computed by the 15 State Board of Education as provided in this subsection. 16 (2) For any school district for which Available Local 17 Resources per pupil is less than the product of 0.93 times 18 the Foundation Level, general State aid for that district 19 shall be calculated as an amount equal to the Foundation 20 Level minus Available Local Resources, multiplied by the 21 Average Daily Attendance of the school district. 22 (3) For any school district for which Available Local 23 Resources per pupil is equal to or greater than the product 24 of 0.93 times the Foundation Level and less than the product 25 of 1.75 times the Foundation Level, the general State aid per 26 pupil shall be a decimal proportion of the Foundation Level 27 derived using a linear algorithm. Under this linear 28 algorithm, the calculated general State aid per pupil shall 29 decline in direct linear fashion from 0.07 times the 30 Foundation Level for a school district with Available Local 31 Resources equal to the product of 0.93 times the Foundation 32 Level, to 0.05 times the Foundation Level for a school 33 district with Available Local Resources equal to the product 34 of 1.75 times the Foundation Level. The allocation of HB3464 Engrossed -7- LRB9111938NTpr 1 general State aid for school districts subject to this 2 paragraph 3 shall be the calculated general State aid per 3 pupil figure multiplied by the Average Daily Attendance of 4 the school district. 5 (4) For any school district for which Available Local 6 Resources per pupil equals or exceeds the product of 1.75 7 times the Foundation Level, the general State aid for the 8 school district shall be calculated as the product of $218 9 multiplied by the Average Daily Attendance of the school 10 district. 11 (5) The amount of general State aid allocated to a 12 school district for the 1999-2000 school year meeting the 13 requirements set forth in paragraph (4) of subsection (G) 14 shall be increased by an amount equal to the general State 15 aid that would have been received by the district for the 16 1998-1999 school year by utilizing the Extension Limitation 17 Equalized Assessed Valuation as calculated in paragraph (4) 18 of subsection (G) less the general State aid allotted for the 19 1998-1999 school year. This amount shall be deemed a one 20 time increase, and shall not affect any future general State 21 aid allocations. 22 (F) Compilation of Average Daily Attendance. 23 (1) Each school district shall, by July 1 of each year, 24 submit to the State Board of Education, on forms prescribed 25 by the State Board of Education, attendance figures for the 26 school year that began in the preceding calendar year. The 27 attendance information so transmitted shall identify the 28 average daily attendance figures for each month of the school 29 year, except that any days of attendance in August shall be 30 added to the month of September and any days of attendance in 31 June shall be added to the month of May. 32 Except as otherwise provided in this Section, days of 33 attendance by pupils shall be counted only for sessions of 34 not less than 5 clock hours of school work per day under HB3464 Engrossed -8- LRB9111938NTpr 1 direct supervision of: (i) teachers, or (ii) non-teaching 2 personnel or volunteer personnel when engaging in 3 non-teaching duties and supervising in those instances 4 specified in subsection (a) of Section 10-22.34 and paragraph 5 10 of Section 34-18, with pupils of legal school age and in 6 kindergarten and grades 1 through 12. 7 Days of attendance by tuition pupils shall be accredited 8 only to the districts that pay the tuition to a recognized 9 school. 10 (2) Days of attendance by pupils of less than 5 clock 11 hours of school shall be subject to the following provisions 12 in the compilation of Average Daily Attendance. 13 (a) Pupils regularly enrolled in a public school 14 for only a part of the school day may be counted on the 15 basis of 1/6 day for every class hour of instruction of 16 40 minutes or more attended pursuant to such enrollment. 17 (b) Days of attendance may be less than 5 clock 18 hours on the opening and closing of the school term, and 19 upon the first day of pupil attendance, if preceded by a 20 day or days utilized as an institute or teachers' 21 workshop. 22 (c) A session of 4 or more clock hours may be 23 counted as a day of attendance upon certification by the 24 regional superintendent, and approved by the State 25 Superintendent of Education to the extent that the 26 district has been forced to use daily multiple sessions. 27 (d) A session of 3 or more clock hours may be 28 counted as a day of attendance (1) when the remainder of 29 the school day or at least 2 hours in the evening of that 30 day is utilized for an in-service training program for 31 teachers, up to a maximum of 5 days per school year of 32 which a maximum of 4 days of such 5 days may be used for 33 parent-teacher conferences, provided a district conducts 34 an in-service training program for teachers which has HB3464 Engrossed -9- LRB9111938NTpr 1 been approved by the State Superintendent of Education; 2 or, in lieu of 4 such days, 2 full days may be used, in 3 which event each such day may be counted as a day of 4 attendance; and (2) when days in addition to those 5 provided in item (1) are scheduled by a school pursuant 6 to its school improvement plan adopted under Article 34 7 or its revised or amended school improvement plan adopted 8 under Article 2, provided that (i) such sessions of 3 or 9 more clock hours are scheduled to occur at regular 10 intervals, (ii) the remainder of the school days in which 11 such sessions occur are utilized for in-service training 12 programs or other staff development activities for 13 teachers, and (iii) a sufficient number of minutes of 14 school work under the direct supervision of teachers are 15 added to the school days between such regularly scheduled 16 sessions to accumulate not less than the number of 17 minutes by which such sessions of 3 or more clock hours 18 fall short of 5 clock hours. Any full days used for the 19 purposes of this paragraph shall not be considered for 20 computing average daily attendance. Days scheduled for 21 in-service training programs, staff development 22 activities, or parent-teacher conferences may be 23 scheduled separately for different grade levels and 24 different attendance centers of the district. 25 (e) A session of not less than one clock hour of 26 teaching hospitalized or homebound pupils on-site or by 27 telephone to the classroom may be counted as 1/2 day of 28 attendance, however these pupils must receive 4 or more 29 clock hours of instruction to be counted for a full day 30 of attendance. 31 (f) A session of at least 4 clock hours may be 32 counted as a day of attendance for first grade pupils, 33 and pupils in full day kindergartens, and a session of 2 34 or more hours may be counted as 1/2 day of attendance by HB3464 Engrossed -10- LRB9111938NTpr 1 pupils in kindergartens which provide only 1/2 day of 2 attendance. 3 (g) For children with disabilities who are below 4 the age of 6 years and who cannot attend 2 or more clock 5 hours because of their disability or immaturity, a 6 session of not less than one clock hour may be counted as 7 1/2 day of attendance; however for such children whose 8 educational needs so require a session of 4 or more clock 9 hours may be counted as a full day of attendance. 10 (h) A recognized kindergarten which provides for 11 only 1/2 day of attendance by each pupil shall not have 12 more than 1/2 day of attendance counted in any one day. 13 However, kindergartens may count 2 1/2 days of attendance 14 in any 5 consecutive school days. When a pupil attends 15 such a kindergarten for 2 half days on any one school 16 day, the pupil shall have the following day as a day 17 absent from school, unless the school district obtains 18 permission in writing from the State Superintendent of 19 Education. Attendance at kindergartens which provide for 20 a full day of attendance by each pupil shall be counted 21 the same as attendance by first grade pupils. Only the 22 first year of attendance in one kindergarten shall be 23 counted, except in case of children who entered the 24 kindergarten in their fifth year whose educational 25 development requires a second year of kindergarten as 26 determined under the rules and regulations of the State 27 Board of Education. 28 (G) Equalized Assessed Valuation Data. 29 (1) For purposes of the calculation of Available Local 30 Resources required pursuant to subsection (D), the State 31 Board of Education shall secure from the Department of 32 Revenue the value as equalized or assessed by the Department 33 of Revenue of all taxable property of every school district, 34 together with (i) the applicable tax rate used in extending HB3464 Engrossed -11- LRB9111938NTpr 1 taxes for the funds of the district as of September 30 of the 2 previous year and (ii) the limiting rate for all school 3 districts subject to property tax extension limitations as 4 imposed under the Property Tax Extension Limitation Law. 5 This equalized assessed valuation, as adjusted further by 6 the requirements of this subsection, shall be utilized in the 7 calculation of Available Local Resources. 8 (2) The equalized assessed valuation in paragraph (1) 9 shall be adjusted, as applicable, in the following manner: 10 (a) For the purposes of calculating State aid under 11 this Section, with respect to any part of a school 12 district within a redevelopment project area in respect 13 to which a municipality has adopted tax increment 14 allocation financing pursuant to the Tax Increment 15 Allocation Redevelopment Act, Sections 11-74.4-1 through 16 11-74.4-11 of the Illinois Municipal Code or the 17 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 18 11-74.6-50 of the Illinois Municipal Code, no part of the 19 current equalized assessed valuation of real property 20 located in any such project area which is attributable to 21 an increase above the total initial equalized assessed 22 valuation of such property shall be used as part of the 23 equalized assessed valuation of the district, until such 24 time as all redevelopment project costs have been paid, 25 as provided in Section 11-74.4-8 of the Tax Increment 26 Allocation Redevelopment Act or in Section 11-74.6-35 of 27 the Industrial Jobs Recovery Law. For the purpose of the 28 equalized assessed valuation of the district, the total 29 initial equalized assessed valuation or the current 30 equalized assessed valuation, whichever is lower, shall 31 be used until such time as all redevelopment project 32 costs have been paid. 33 (b) The real property equalized assessed valuation 34 for a school district shall be adjusted by subtracting HB3464 Engrossed -12- LRB9111938NTpr 1 from the real property value as equalized or assessed by 2 the Department of Revenue for the district an amount 3 computed by dividing the amount of any abatement of taxes 4 under Section 18-170 of the Property Tax Code by 3.00% 5 for a district maintaining grades kindergarten through 6 12, by 2.30% for a district maintaining grades 7 kindergarten through 8, or by 1.05% for a district 8 maintaining grades 9 through 12 and adjusted by an amount 9 computed by dividing the amount of any abatement of taxes 10 under subsection (a) of Section 18-165 of the Property 11 Tax Code by the same percentage rates for district type 12 as specified in this subparagraph (b). 13 (3) For the 1999-2000 school year and each school year 14 thereafter, if a school district meets all of the criteria of 15 this subsection (G)(3), the school district's Available Local 16 Resources shall be calculated under subsection (D) using the 17 district's Extension Limitation Equalized Assessed Valuation 18 as calculated under this subsection (G)(3). 19 For purposes of this subsection (G)(3) the following 20 terms shall have the following meanings: 21 "Budget Year": The school year for which general 22 State aid is calculated and awarded under subsection (E). 23 "Base Tax Year": The property tax levy year used to 24 calculate the Budget Year allocation of general State 25 aid. 26 "Preceding Tax Year": The property tax levy year 27 immediately preceding the Base Tax Year. 28 "Base Tax Year's Tax Extension": The product of the 29 equalized assessed valuation utilized by the County Clerk 30 in the Base Tax Year multiplied by the limiting rate as 31 calculated by the County Clerk and defined in the 32 Property Tax Extension Limitation Law. 33 "Preceding Tax Year's Tax Extension": The product of 34 the equalized assessed valuation utilized by the County HB3464 Engrossed -13- LRB9111938NTpr 1 Clerk in the Preceding Tax Year multiplied by the 2 Operating Tax Rate as defined in subsection (A). 3 "Extension Limitation Ratio": A numerical ratio, 4 certified by the County Clerk, in which the numerator is 5 the Base Tax Year's Tax Extension and the denominator is 6 the Preceding Tax Year's Tax Extension. 7 "Operating Tax Rate": The operating tax rate as 8 defined in subsection (A). 9 If a school district is subject to property tax extension 10 limitations as imposed under the Property Tax Extension 11 Limitation Law, and if the Available Local Resources of that 12 school district as calculated pursuant to subsection (D) 13 using the Base Tax Year are less than the product of 1.75 14 times the Foundation Level for the Budget Year, the State 15 Board of Education shall calculate the Extension Limitation 16 Equalized Assessed Valuation of that district. For the 17 1999-2000 school year, the Extension Limitation Equalized 18 Assessed Valuation of a school district as calculated by the 19 State Board of Education shall be equal to the product of the 20 district's 1996 Equalized Assessed Valuation and the 21 district's Extension Limitation Ratio. For the 2000-2001 22 school year and each school year thereafter, the Extension 23 Limitation Equalized Assessed Valuation of a school district 24 as calculated by the State Board of Education shall be equal 25 to the product of the last calculated Extension Limitation 26 Equalized Assessed Valuation and the district's Extension 27 Limitation Ratio. If the Extension Limitation Equalized 28 Assessed Valuation of a school district as calculated under 29 this subsection (G)(3) is less than the district's equalized 30 assessed valuation as calculated pursuant to subsections 31 (G)(1) and (G)(2), then for purposes of calculating the 32 district's general State aid for the Budget Year pursuant to 33 subsection (E), that Extension Limitation Equalized Assessed 34 Valuation shall be utilized to calculate the district's HB3464 Engrossed -14- LRB9111938NTpr 1 Available Local Resources under subsection (D). 2 (4) For the purposes of calculating general State aid 3 for the 1999-2000 school year only, if a school district 4 experienced a triennial reassessment on the equalized 5 assessed valuation used in calculating its general State 6 financial aid apportionment for the 1998-1999 school year, 7 the State Board of Education shall calculate the Extension 8 Limitation Equalized Assessed Valuation that would have been 9 used to calculate the district's 1998-1999 general State aid. 10 This amount shall equal the product of the equalized assessed 11 valuation used to calculate general State aid for the 12 1997-1998 school year and the district's Extension Limitation 13 Ratio. If the Extension Limitation Equalized Assessed 14 Valuation of the school district as calculated under this 15 paragraph (4) is less than the district's equalized assessed 16 valuation utilized in calculating the district's 1998-1999 17 general State aid allocation, then for purposes of 18 calculating the district's general State aid pursuant to 19 paragraph (5) of subsection (E), that Extension Limitation 20 Equalized Assessed Valuation shall be utilized to calculate 21 the district's Available Local Resources. 22 (5) For school districts having a majority of their 23 equalized assessed valuation in any county except Cook, 24 DuPage, Kane, Lake, McHenry, or Will, if the amount of 25 general State aid allocated to the school district for the 26 1999-2000 school year under the provisions of subsection (E), 27 (H), and (J) of this Section is less than the amount of 28 general State aid allocated to the district for the 1998-1999 29 school year under these subsections, then the general State 30 aid of the district for the 1999-2000 school year only shall 31 be increased by the difference between these amounts. The 32 total payments made under this paragraph (5) shall not exceed 33 $14,000,000. Claims shall be prorated if they exceed 34 $14,000,000. HB3464 Engrossed -15- LRB9111938NTpr 1 (H) Supplemental General State Aid. 2 (1) In addition to the general State aid a school 3 district is allotted pursuant to subsection (E), qualifying 4 school districts shall receive a grant, paid in conjunction 5 with a district's payments of general State aid, for 6 supplemental general State aid based upon the concentration 7 level of children from low-income households within the 8 school district. Supplemental State aid grants provided for 9 school districts under this subsection shall be appropriated 10 for distribution to school districts as part of the same line 11 item in which the general State financial aid of school 12 districts is appropriated under this Section. For purposes of 13 this subsection, the term "Low-Income Concentration Level" 14 shall be the low-income eligible pupil count from the most 15 recently available federal census divided by the Average 16 Daily Attendance of the school district. If, however, the 17 percentage decrease from the 2 most recent federal censuses 18 in the low-income eligible pupil count of a high school 19 district with fewer than 400 students exceeds by 75% or more 20 the percentage change in the total low-income eligible pupil 21 count of contiguous elementary school districts, whose 22 boundaries are coterminous with the high school district, the 23 high school district's low-income eligible pupil count from 24 the earlier federal census shall be the number used as the 25 low-income eligible pupil count for the high school district, 26 for purposes of this subsection (H). 27 (2) Supplemental general State aid pursuant to this 28 subsection shall be provided as follows: 29 (a) For any school district with a Low Income 30 Concentration Level of at least 20% and less than 35%, 31 the grant for any school year shall be $800 multiplied by 32 the low income eligible pupil count. 33 (b) For any school district with a Low Income 34 Concentration Level of at least 35% and less than 50%, HB3464 Engrossed -16- LRB9111938NTpr 1 the grant for the 1998-1999 school year shall be $1,100 2 multiplied by the low income eligible pupil count. 3 (c) For any school district with a Low Income 4 Concentration Level of at least 50% and less than 60%, 5 the grant for the 1998-99 school year shall be $1,500 6 multiplied by the low income eligible pupil count. 7 (d) For any school district with a Low Income 8 Concentration Level of 60% or more, the grant for the 9 1998-99 school year shall be $1,900 multiplied by the low 10 income eligible pupil count. 11 (e) For the 1999-2000 school year, the per pupil 12 amount specified in subparagraphs (b), (c), and (d) 13 immediately above shall be increased to $1,243, $1,600, 14 and $2,000, respectively. 15 (f) For the 2000-2001 school year, the per pupil 16 amounts specified in subparagraphs (b), (c), and (d) 17 immediately above shall be $1,273, $1,640, and $2,050, 18 respectively. 19 (3) School districts with an Average Daily Attendance of 20 more than 1,000 and less than 50,000 that qualify for 21 supplemental general State aid pursuant to this subsection 22 shall submit a plan to the State Board of Education prior to 23 October 30 of each year for the use of the funds resulting 24 from this grant of supplemental general State aid for the 25 improvement of instruction in which priority is given to 26 meeting the education needs of disadvantaged children. Such 27 plan shall be submitted in accordance with rules and 28 regulations promulgated by the State Board of Education. 29 (4) School districts with an Average Daily Attendance of 30 50,000 or more that qualify for supplemental general State 31 aid pursuant to this subsection shall be required to 32 distribute from funds available pursuant to this Section, no 33 less than $261,000,000 in accordance with the following 34 requirements: HB3464 Engrossed -17- LRB9111938NTpr 1 (a) The required amounts shall be distributed to 2 the attendance centers within the district in proportion 3 to the number of pupils enrolled at each attendance 4 center who are eligible to receive free or reduced-price 5 lunches or breakfasts under the federal Child Nutrition 6 Act of 1966 and under the National School Lunch Act 7 during the immediately preceding school year. 8 (b) The distribution of these portions of 9 supplemental and general State aid among attendance 10 centers according to these requirements shall not be 11 compensated for or contravened by adjustments of the 12 total of other funds appropriated to any attendance 13 centers, and the Board of Education shall utilize funding 14 from one or several sources in order to fully implement 15 this provision annually prior to the opening of school. 16 (c) Each attendance center shall be provided by the 17 school district a distribution of noncategorical funds 18 and other categorical funds to which an attendance center 19 is entitled under law in order that the general State aid 20 and supplemental general State aid provided by 21 application of this subsection supplements rather than 22 supplants the noncategorical funds and other categorical 23 funds provided by the school district to the attendance 24 centers. 25 (d) Any funds made available under this subsection 26 that by reason of the provisions of this subsection are 27 not required to be allocated and provided to attendance 28 centers may be used and appropriated by the board of the 29 district for any lawful school purpose. 30 (e) Funds received by an attendance center pursuant 31 to this subsection shall be used by the attendance center 32 at the discretion of the principal and local school 33 council for programs to improve educational opportunities 34 at qualifying schools through the following programs and HB3464 Engrossed -18- LRB9111938NTpr 1 services: early childhood education, reduced class size 2 or improved adult to student classroom ratio, enrichment 3 programs, remedial assistance, attendance improvement, 4 and other educationally beneficial expenditures which 5 supplement the regular and basic programs as determined 6 by the State Board of Education. Funds provided shall 7 not be expended for any political or lobbying purposes as 8 defined by board rule. 9 (f) Each district subject to the provisions of this 10 subdivision (H)(4) shall submit an acceptable plan to 11 meet the educational needs of disadvantaged children, in 12 compliance with the requirements of this paragraph, to 13 the State Board of Education prior to July 15 of each 14 year. This plan shall be consistent with the decisions of 15 local school councils concerning the school expenditure 16 plans developed in accordance with part 4 of Section 17 34-2.3. The State Board shall approve or reject the plan 18 within 60 days after its submission. If the plan is 19 rejected, the district shall give written notice of 20 intent to modify the plan within 15 days of the 21 notification of rejection and then submit a modified plan 22 within 30 days after the date of the written notice of 23 intent to modify. Districts may amend approved plans 24 pursuant to rules promulgated by the State Board of 25 Education. 26 Upon notification by the State Board of Education 27 that the district has not submitted a plan prior to July 28 15 or a modified plan within the time period specified 29 herein, the State aid funds affected by that plan or 30 modified plan shall be withheld by the State Board of 31 Education until a plan or modified plan is submitted. 32 If the district fails to distribute State aid to 33 attendance centers in accordance with an approved plan, 34 the plan for the following year shall allocate funds, in HB3464 Engrossed -19- LRB9111938NTpr 1 addition to the funds otherwise required by this 2 subsection, to those attendance centers which were 3 underfunded during the previous year in amounts equal to 4 such underfunding. 5 For purposes of determining compliance with this 6 subsection in relation to the requirements of attendance 7 center funding, each district subject to the provisions 8 of this subsection shall submit as a separate document by 9 December 1 of each year a report of expenditure data for 10 the prior year in addition to any modification of its 11 current plan. If it is determined that there has been a 12 failure to comply with the expenditure provisions of this 13 subsection regarding contravention or supplanting, the 14 State Superintendent of Education shall, within 60 days 15 of receipt of the report, notify the district and any 16 affected local school council. The district shall within 17 45 days of receipt of that notification inform the State 18 Superintendent of Education of the remedial or corrective 19 action to be taken, whether by amendment of the current 20 plan, if feasible, or by adjustment in the plan for the 21 following year. Failure to provide the expenditure 22 report or the notification of remedial or corrective 23 action in a timely manner shall result in a withholding 24 of the affected funds. 25 The State Board of Education shall promulgate rules 26 and regulations to implement the provisions of this 27 subsection. No funds shall be released under this 28 subdivision (H)(4) to any district that has not submitted 29 a plan that has been approved by the State Board of 30 Education. 31 (I) General State Aid for Newly Configured School Districts. 32 (1) For a new school district formed by combining 33 property included totally within 2 or more previously 34 existing school districts, for its first year of existence HB3464 Engrossed -20- LRB9111938NTpr 1 the general State aid and supplemental general State aid 2 calculated under this Section shall be computed for the new 3 district and for the previously existing districts for which 4 property is totally included within the new district. If the 5 computation on the basis of the previously existing districts 6 is greater, a supplementary payment equal to the difference 7 shall be made for the first 4 years of existence of the new 8 district. 9 (2) For a school district which annexes all of the 10 territory of one or more entire other school districts, for 11 the first year during which the change of boundaries 12 attributable to such annexation becomes effective for all 13 purposes as determined under Section 7-9 or 7A-8, the general 14 State aid and supplemental general State aid calculated under 15 this Section shall be computed for the annexing district as 16 constituted after the annexation and for the annexing and 17 each annexed district as constituted prior to the annexation; 18 and if the computation on the basis of the annexing and 19 annexed districts as constituted prior to the annexation is 20 greater, a supplementary payment equal to the difference 21 shall be made for the first 4 years of existence of the 22 annexing school district as constituted upon such annexation. 23 (3) For 2 or more school districts which annex all of 24 the territory of one or more entire other school districts, 25 and for 2 or more community unit districts which result upon 26 the division (pursuant to petition under Section 11A-2) of 27 one or more other unit school districts into 2 or more parts 28 and which together include all of the parts into which such 29 other unit school district or districts are so divided, for 30 the first year during which the change of boundaries 31 attributable to such annexation or division becomes effective 32 for all purposes as determined under Section 7-9 or 11A-10, 33 as the case may be, the general State aid and supplemental 34 general State aid calculated under this Section shall be HB3464 Engrossed -21- LRB9111938NTpr 1 computed for each annexing or resulting district as 2 constituted after the annexation or division and for each 3 annexing and annexed district, or for each resulting and 4 divided district, as constituted prior to the annexation or 5 division; and if the aggregate of the general State aid and 6 supplemental general State aid as so computed for the 7 annexing or resulting districts as constituted after the 8 annexation or division is less than the aggregate of the 9 general State aid and supplemental general State aid as so 10 computed for the annexing and annexed districts, or for the 11 resulting and divided districts, as constituted prior to the 12 annexation or division, then a supplementary payment equal to 13 the difference shall be made and allocated between or among 14 the annexing or resulting districts, as constituted upon such 15 annexation or division, for the first 4 years of their 16 existence. The total difference payment shall be allocated 17 between or among the annexing or resulting districts in the 18 same ratio as the pupil enrollment from that portion of the 19 annexed or divided district or districts which is annexed to 20 or included in each such annexing or resulting district bears 21 to the total pupil enrollment from the entire annexed or 22 divided district or districts, as such pupil enrollment is 23 determined for the school year last ending prior to the date 24 when the change of boundaries attributable to the annexation 25 or division becomes effective for all purposes. The amount 26 of the total difference payment and the amount thereof to be 27 allocated to the annexing or resulting districts shall be 28 computed by the State Board of Education on the basis of 29 pupil enrollment and other data which shall be certified to 30 the State Board of Education, on forms which it shall provide 31 for that purpose, by the regional superintendent of schools 32 for each educational service region in which the annexing and 33 annexed districts, or resulting and divided districts are 34 located. HB3464 Engrossed -22- LRB9111938NTpr 1 (3.5) Claims for financial assistance under this 2 subsection (I) shall not be recomputed except as expressly 3 provided under this Section. 4 (4) Any supplementary payment made under this subsection 5 (I) shall be treated as separate from all other payments made 6 pursuant to this Section. 7 (J) Supplementary Grants in Aid. 8 (1) Notwithstanding any other provisions of this 9 Section, the amount of the aggregate general State aid in 10 combination with supplemental general State aid under this 11 Section for which each school district is eligible shall be 12 no less than the amount of the aggregate general State aid 13 entitlement that was received by the district under Section 14 18-8 (exclusive of amounts received under subsections 5(p) 15 and 5(p-5) of that Section) for the 1997-98 school year, 16 pursuant to the provisions of that Section as it was then in 17 effect. If a school district qualifies to receive a 18 supplementary payment made under this subsection (J), the 19 amount of the aggregate general State aid in combination with 20 supplemental general State aid under this Section which that 21 district is eligible to receive for each school year shall be 22 no less than the amount of the aggregate general State aid 23 entitlement that was received by the district under Section 24 18-8 (exclusive of amounts received under subsections 5(p) 25 and 5(p-5) of that Section) for the 1997-1998 school year, 26 pursuant to the provisions of that Section as it was then in 27 effect. 28 (2) If, as provided in paragraph (1) of this subsection 29 (J), a school district is to receive aggregate general State 30 aid in combination with supplemental general State aid under 31 this Section for the 1998-99 school year and any subsequent 32 school year that in any such school year is less than the 33 amount of the aggregate general State aid entitlement that 34 the district received for the 1997-98 school year, the school HB3464 Engrossed -23- LRB9111938NTpr 1 district shall also receive, from a separate appropriation 2 made for purposes of this subsection (J), a supplementary 3 payment that is equal to the amount of the difference in the 4 aggregate State aid figures as described in paragraph (1). 5 (3) (Blank). 6 (K) Grants to Laboratory and Alternative Schools. 7 In calculating the amount to be paid to the governing 8 board of a public university that operates a laboratory 9 school under this Section or to any alternative school that 10 is operated by a regional superintendent of schools, the 11 State Board of Education shall require by rule such reporting 12 requirements as it deems necessary. 13 As used in this Section, "laboratory school" means a 14 public school which is created and operated by a public 15 university and approved by the State Board of Education. The 16 governing board of a public university which receives funds 17 from the State Board under this subsection (K) may not 18 increase the number of students enrolled in its laboratory 19 school from a single district, if that district is already 20 sending 50 or more students, except under a mutual agreement 21 between the school board of a student's district of residence 22 and the university which operates the laboratory school. A 23 laboratory school may not have more than 1,000 students, 24 excluding students with disabilities in a special education 25 program. 26 As used in this Section, "alternative school" means a 27 public school which is created and operated by a Regional 28 Superintendent of Schools and approved by the State Board of 29 Education. Such alternative schools may offer courses of 30 instruction for which credit is given in regular school 31 programs, courses to prepare students for the high school 32 equivalency testing program or vocational and occupational 33 training. A regional superintendent of schools may contract 34 with a school district or a public community college district HB3464 Engrossed -24- LRB9111938NTpr 1 to operate an alternative school. An alternative school 2 serving more than one educational service region may be 3 established by the regional superintendents of schools of the 4 affected educational service regions. An alternative school 5 serving more than one educational service region may be 6 operated under such terms as the regional superintendents of 7 schools of those educational service regions may agree. 8 Each laboratory and alternative school shall file, on 9 forms provided by the State Superintendent of Education, an 10 annual State aid claim which states the Average Daily 11 Attendance of the school's students by month. The best 3 12 months' Average Daily Attendance shall be computed for each 13 school. The general State aid entitlement shall be computed 14 by multiplying the applicable Average Daily Attendance by the 15 Foundation Level as determined under this Section. 16 (L) Payments, Additional Grants in Aid and Other 17 Requirements. 18 (1) For a school district operating under the financial 19 supervision of an Authority created under Article 34A, the 20 general State aid otherwise payable to that district under 21 this Section, but not the supplemental general State aid, 22 shall be reduced by an amount equal to the budget for the 23 operations of the Authority as certified by the Authority to 24 the State Board of Education, and an amount equal to such 25 reduction shall be paid to the Authority created for such 26 district for its operating expenses in the manner provided in 27 Section 18-11. The remainder of general State school aid for 28 any such district shall be paid in accordance with Article 29 34A when that Article provides for a disposition other than 30 that provided by this Article. 31 (2) (Blank). 32 (3) Summer school. Summer school payments shall be made 33 as provided in Section 18-4.3. HB3464 Engrossed -25- LRB9111938NTpr 1 (M) Education Funding Advisory Board. 2 The Education Funding Advisory Board, hereinafter in this 3 subsection (M) referred to as the "Board", is hereby created. 4 The Board shall consist of 5 members who are appointed by the 5 Governor, by and with the advice and consent of the Senate. 6 The members appointed shall include representatives of 7 education, business, and the general public. One of the 8 members so appointed shall be designated by the Governor at 9 the time the appointment is made as the chairperson of the 10 Board. The initial members of the Board may be appointed any 11 time after the effective date of this amendatory Act of 1997. 12 The regular term of each member of the Board shall be for 4 13 years from the third Monday of January of the year in which 14 the term of the member's appointment is to commence, except 15 that of the 5 initial members appointed to serve on the 16 Board, the member who is appointed as the chairperson shall 17 serve for a term that commences on the date of his or her 18 appointment and expires on the third Monday of January, 2002, 19 and the remaining 4 members, by lots drawn at the first 20 meeting of the Board that is held after all 5 members are 21 appointed, shall determine 2 of their number to serve for 22 terms that commence on the date of their respective 23 appointments and expire on the third Monday of January, 2001, 24 and 2 of their number to serve for terms that commence on the 25 date of their respective appointments and expire on the third 26 Monday of January, 2000. All members appointed to serve on 27 the Board shall serve until their respective successors are 28 appointed and confirmed. Vacancies shall be filled in the 29 same manner as original appointments. If a vacancy in 30 membership occurs at a time when the Senate is not in 31 session, the Governor shall make a temporary appointment 32 until the next meeting of the Senate, when he or she shall 33 appoint, by and with the advice and consent of the Senate, a 34 person to fill that membership for the unexpired term. If HB3464 Engrossed -26- LRB9111938NTpr 1 the Senate is not in session when the initial appointments 2 are made, those appointments shall be made as in the case of 3 vacancies. 4 The Education Funding Advisory Board shall be deemed 5 established, and the initial members appointed by the 6 Governor to serve as members of the Board shall take office, 7 on the date that the Governor makes his or her appointment of 8 the fifth initial member of the Board, whether those initial 9 members are then serving pursuant to appointment and 10 confirmation or pursuant to temporary appointments that are 11 made by the Governor as in the case of vacancies. 12 The State Board of Education shall provide such staff 13 assistance to the Education Funding Advisory Board as is 14 reasonably required for the proper performance by the Board 15 of its responsibilities. 16 For school years after the 2000-2001 school year, the 17 Education Funding Advisory Board, in consultation with the 18 State Board of Education, shall make recommendations as 19 provided in this subsection (M) to the General Assembly for 20 the foundation level under subdivision (B)(3) of this Section 21 and for the supplemental general State aid grant level under 22 subsection (H) of this Section for districts with high 23 concentrations of children from poverty. The recommended 24 foundation level shall be determined based on a methodology 25 which incorporates the basic education expenditures of 26 low-spending schools exhibiting high academic performance. 27 The Education Funding Advisory Board shall make such 28 recommendations to the General Assembly on January 1 of odd 29 numbered years, beginning January 1, 2001. 30 (N) (Blank). 31 (O) References. 32 (1) References in other laws to the various subdivisions 33 of Section 18-8 as that Section existed before its repeal and HB3464 Engrossed -27- LRB9111938NTpr 1 replacement by this Section 18-8.05 shall be deemed to refer 2 to the corresponding provisions of this Section 18-8.05, to 3 the extent that those references remain applicable. 4 (2) References in other laws to State Chapter 1 funds 5 shall be deemed to refer to the supplemental general State 6 aid provided under subsection (H) of this Section. 7 (Source: P.A. 90-548, eff. 7-1-98; incorporates 90-566; 8 90-653, eff. 7-29-98; 90-654, eff. 7-29-98; 90-655, eff. 9 7-30-98; 90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24, 10 eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99; 91-111, 11 eff. 7-14-99; 91-357, eff. 7-29-99; 91-533, eff. 8-13-99; 12 revised 8-27-99.) 13 Section 99. Effective date. This Act takes effect July 14 1, 2000.