State of Illinois
91st General Assembly
Legislation

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91_SB0175

 
                                              LRB9101183NTsbA

 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
 
                            -2-               LRB9101183NTsbA
 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).
 
                            -3-               LRB9101183NTsbA
 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
 
                            -4-               LRB9101183NTsbA
 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.
 
                            -5-               LRB9101183NTsbA
 1    (D)  Available Local Resources.
 2        (1)  For   purposes  of  calculating  general  State  aid
 3    pursuant to subsection (E),  a  representation  of  Available
 4    Local  Resources  per  pupil,  as  that  term  is defined and
 5    determined in this subsection, shall be utilized.   Available
 6    Local  Resources  per pupil shall include a calculated dollar
 7    amount representing local school district revenues from local
 8    property  taxes  and   from   Corporate   Personal   Property
 9    Replacement  Taxes,  expressed  on  the  basis  of  pupils in
10    Average Daily Attendance.
11        (2)  In determining  a  school  district's  revenue  from
12    local  property  taxes,  the  State  Board of Education shall
13    utilize the  equalized  assessed  valuation  of  all  taxable
14    property  of  each  school district as of September 30 of the
15    previous year.  The  equalized  assessed  valuation  utilized
16    shall  be  obtained  and determined as provided in subsection
17    (G).
18        (3)  For school districts maintaining grades kindergarten
19    through 12, local property tax revenues per  pupil  shall  be
20    calculated   as  the  product  of  the  applicable  equalized
21    assessed valuation for the district multiplied by 3.00%,  and
22    divided  by  the  district's Average Daily Attendance figure.
23    For school districts maintaining grades kindergarten  through
24    8,  local property tax revenues per pupil shall be calculated
25    as the product of the applicable equalized assessed valuation
26    for the district multiplied by  2.30%,  and  divided  by  the
27    district's  Average  Daily  Attendance  figure.   For  school
28    districts maintaining grades 9 through 12, local property tax
29    revenues per pupil shall be the applicable equalized assessed
30    valuation  of  the  district  multiplied  by 1.00% 1.20%, and
31    divided by the district's Average Daily Attendance figure.
32        (4)  The Corporate Personal  Property  Replacement  Taxes
33    paid to each school district during the calendar year 2 years
34    before  the  calendar  year  in  which  a school year begins,
 
                            -6-               LRB9101183NTsbA
 1    divided by the  Average  Daily  Attendance  figure  for  that
 2    district,  shall  be added to the local property tax revenues
 3    per pupil as derived by the application  of  the  immediately
 4    preceding  paragraph (3).  The sum of these per pupil figures
 5    for each school district  shall  constitute  Available  Local
 6    Resources  as  that term is utilized in subsection (E) in the
 7    calculation of general State aid.

 8    (E)  Computation of General State Aid.
 9        (1)  For each school year, the amount  of  general  State
10    aid  allotted  to  a school district shall be computed by the
11    State Board of Education as provided in this subsection.
12        (2)  For any school district for  which  Available  Local
13    Resources  per  pupil  is less than the product of 0.93 times
14    the Foundation Level, general State  aid  for  that  district
15    shall  be  calculated  as  an  amount equal to the Foundation
16    Level minus Available  Local  Resources,  multiplied  by  the
17    Average Daily Attendance of the school district.
18        (3)  For  any  school  district for which Available Local
19    Resources per pupil is equal to or greater than  the  product
20    of  0.93 times the Foundation Level and less than the product
21    of 1.75 times the Foundation Level, the general State aid per
22    pupil shall be a decimal proportion of the  Foundation  Level
23    derived   using   a  linear  algorithm.   Under  this  linear
24    algorithm, the calculated general State aid per  pupil  shall
25    decline   in  direct  linear  fashion  from  0.07  times  the
26    Foundation Level for a school district with  Available  Local
27    Resources  equal  to the product of 0.93 times the Foundation
28    Level, to 0.05  times  the  Foundation  Level  for  a  school
29    district  with Available Local Resources equal to the product
30    of 1.75  times  the  Foundation  Level.   The  allocation  of
31    general  State  aid  for  school  districts  subject  to this
32    paragraph 3 shall be the calculated  general  State  aid  per
33    pupil  figure  multiplied  by the Average Daily Attendance of
34    the school district.
 
                            -7-               LRB9101183NTsbA
 1        (4)  For any school district for  which  Available  Local
 2    Resources  per  pupil  equals  or exceeds the product of 1.75
 3    times the Foundation Level, the general  State  aid  for  the
 4    school  district  shall  be calculated as the product of $218
 5    multiplied by the Average  Daily  Attendance  of  the  school
 6    district.

 7    (F)  Compilation of Average Daily Attendance.
 8        (1)  Each  school district shall, by July 1 of each year,
 9    submit to the State Board of Education, on  forms  prescribed
10    by  the  State Board of Education, attendance figures for the
11    school year that began in the preceding calendar  year.   The
12    attendance  information  so  transmitted  shall  identify the
13    average daily attendance figures for each month of the school
14    year, except that any days of attendance in August  shall  be
15    added to the month of September and any days of attendance in
16    June shall be added to the month of May.
17        Except  as  otherwise  provided  in this Section, days of
18    attendance by pupils shall be counted only  for  sessions  of
19    not  less  than  5  clock  hours of school work per day under
20    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
21    personnel   or   volunteer   personnel   when   engaging   in
22    non-teaching   duties  and  supervising  in  those  instances
23    specified in subsection (a) of Section 10-22.34 and paragraph
24    10 of Section 34-18, with pupils of legal school age  and  in
25    kindergarten and grades 1 through 12.
26        Days  of attendance by tuition pupils shall be accredited
27    only to the districts that pay the tuition  to  a  recognized
28    school.
29        (2)  Days  of  attendance  by pupils of less than 5 clock
30    hours of school shall be subject to the following  provisions
31    in the compilation of Average Daily Attendance.
32             (a)  Pupils  regularly  enrolled  in a public school
33        for only a part of the school day may be counted  on  the
34        basis  of  1/6 day for every class hour of instruction of
 
                            -8-               LRB9101183NTsbA
 1        40 minutes or more attended pursuant to such enrollment.
 2             (b)  Days of attendance may be  less  than  5  clock
 3        hours  on the opening and closing of the school term, and
 4        upon the first day of pupil attendance, if preceded by  a
 5        day  or  days  utilized  as  an  institute  or  teachers'
 6        workshop.
 7             (c)  A  session  of  4  or  more  clock hours may be
 8        counted as a day of attendance upon certification by  the
 9        regional   superintendent,  and  approved  by  the  State
10        Superintendent  of  Education  to  the  extent  that  the
11        district has been forced to use daily multiple sessions.
12             (d)  A session of 3  or  more  clock  hours  may  be
13        counted  as a day of attendance (1) when the remainder of
14        the school day or at least 2 hours in the evening of that
15        day is utilized for an in-service  training  program  for
16        teachers,  up  to  a maximum of 5 days per school year of
17        which a maximum of 4 days of such 5 days may be used  for
18        parent-teacher  conferences, provided a district conducts
19        an in-service training program  for  teachers  which  has
20        been  approved  by the State Superintendent of Education;
21        or, in lieu of 4 such days, 2 full days may be  used,  in
22        which  event  each  such  day  may be counted as a day of
23        attendance; and  (2)  when  days  in  addition  to  those
24        provided  in  item (1) are scheduled by a school pursuant
25        to its school improvement plan adopted under  Article  34
26        or its revised or amended school improvement plan adopted
27        under  Article 2, provided that (i) such sessions of 3 or
28        more clock  hours  are  scheduled  to  occur  at  regular
29        intervals, (ii) the remainder of the school days in which
30        such  sessions occur are utilized for in-service training
31        programs  or  other  staff  development  activities   for
32        teachers,  and  (iii)  a  sufficient number of minutes of
33        school work under the direct supervision of teachers  are
34        added to the school days between such regularly scheduled
 
                            -9-               LRB9101183NTsbA
 1        sessions  to  accumulate  not  less  than  the  number of
 2        minutes by which such sessions of 3 or more  clock  hours
 3        fall  short  of 5 clock hours. Any full days used for the
 4        purposes of this paragraph shall not  be  considered  for
 5        computing  average  daily attendance.  Days scheduled for
 6        in-service   training   programs,    staff    development
 7        activities,   or   parent-teacher   conferences   may  be
 8        scheduled  separately  for  different  grade  levels  and
 9        different attendance centers of the district.
10             (e)  A session of not less than one  clock  hour  of
11        teaching  of  hospitalized or homebound pupils on-site or
12        by telephone to the classroom may be counted as  1/2  day
13        of  attendance,  however  these  pupils must receive 4 or
14        more clock hours of instruction to be counted for a  full
15        day of attendance.
16             (f)  A  session  of  at  least  4 clock hours may be
17        counted as a day of attendance for  first  grade  pupils,
18        and  pupils in full day kindergartens, and a session of 2
19        or more hours may be counted as 1/2 day of attendance  by
20        pupils  in  kindergartens  which  provide only 1/2 day of
21        attendance.
22             (g)  For children with disabilities  who  are  below
23        the  age of 6 years and who cannot attend 2 or more clock
24        hours  because  of  their  disability  or  immaturity,  a
25        session of not less than one clock hour may be counted as
26        1/2 day of attendance; however for  such  children  whose
27        educational needs so require a session of 4 or more clock
28        hours may be counted as a full day of attendance.
29             (h)  A  recognized  kindergarten  which provides for
30        only 1/2 day of attendance by each pupil shall  not  have
31        more than 1/2 day of attendance counted in any one 1 day.
32        However, kindergartens may count 2 1/2 days of attendance
33        in  any  5 consecutive school days.  When a pupil attends
34        such a kindergarten for 2 half days  on  any  one  school
 
                            -10-              LRB9101183NTsbA
 1        day,  the  pupil  shall  have  the following day as a day
 2        absent from school, unless the  school  district  obtains
 3        permission  in  writing  from the State Superintendent of
 4        Education.  Attendance at kindergartens which provide for
 5        a full day of attendance by each pupil shall  be  counted
 6        the  same  as attendance by first grade pupils.  Only the
 7        first year of attendance in  one  kindergarten  shall  be
 8        counted,  except  in  case  of  children  who entered the
 9        kindergarten  in  their  fifth  year  whose   educational
10        development  requires  a  second  year of kindergarten as
11        determined under the rules and regulations of  the  State
12        Board of Education.

13    (G)  Equalized Assessed Valuation Data.
14        (1)  For  purposes  of the calculation of Available Local
15    Resources required pursuant  to  subsection  (D),  the  State
16    Board  of  Education  shall  secure  from  the  Department of
17    Revenue the value as equalized or assessed by the  Department
18    of  Revenue  of all taxable property of every school district
19    together with the applicable tax rate used in extending taxes
20    for the funds of the district  as  of  September  30  of  the
21    previous year.
22        This equalized assessed valuation, as adjusted further by
23    the requirements of this subsection, shall be utilized in the
24    calculation of Available Local Resources.
25        (2)  The  equalized  assessed  valuation in paragraph (1)
26    shall be adjusted, as applicable, in the following manner:
27             (a)  For the purposes of calculating State aid under
28        this Section, with  respect  to  any  part  of  a  school
29        district  within  a redevelopment project area in respect
30        to  which  a  municipality  has  adopted  tax   increment
31        allocation   financing  pursuant  to  the  Tax  Increment
32        Allocation Redevelopment Act, Sections 11-74.4-1  through
33        11-74.4-11   of   the  Illinois  Municipal  Code  or  the
34        Industrial Jobs Recovery Law, Sections 11-74.6-1  through
 
                            -11-              LRB9101183NTsbA
 1        11-74.6-50 of the Illinois Municipal Code, no part of the
 2        current  equalized  assessed  valuation  of real property
 3        located in any such project area which is attributable to
 4        an increase above the total  initial  equalized  assessed
 5        valuation  of  such property shall be used as part of the
 6        equalized assessed valuation of the district, until  such
 7        time  as  all redevelopment project costs have been paid,
 8        as provided in Section 11-74.4-8  of  the  Tax  Increment
 9        Allocation  Redevelopment Act or in Section 11-74.6-35 of
10        the Industrial Jobs Recovery Law.  For the purpose of the
11        equalized assessed valuation of the district,  the  total
12        initial  equalized  assessed  valuation  or  the  current
13        equalized  assessed  valuation, whichever is lower, shall
14        be used until such  time  as  all  redevelopment  project
15        costs have been paid.
16             (b)  The  real property equalized assessed valuation
17        for a school district shall be  adjusted  by  subtracting
18        from  the real property value as equalized or assessed by
19        the Department of Revenue  for  the  district  an  amount
20        computed by dividing the amount of any abatement of taxes
21        under  Section  18-170  of the Property Tax Code by 3.00%
22        for a district maintaining grades kindergarten through 12
23        ,  or  by  2.30%  for  a  district   maintaining   grades
24        kindergarten  through 8, or by 1.00% 1.20% for a district
25        maintaining grades 9 through 12 and adjusted by an amount
26        computed by dividing the amount of any abatement of taxes
27        under subsection (a) of Section 18-165  of  the  Property
28        Tax  Code  by the same percentage rates for district type
29        as specified in this subparagraph (b) (c).

30    (H)  Supplemental General State Aid.
31        (1)  In addition  to  the  general  State  aid  a  school
32    district  is  allotted pursuant to subsection (E), qualifying
33    school districts shall receive a grant, paid  in  conjunction
34    with   a  district's  payments  of  general  State  aid,  for
 
                            -12-              LRB9101183NTsbA
 1    supplemental general State aid based upon  the  concentration
 2    level  of  children  from  low-income  households  within the
 3    school district. Supplemental State aid grants  provided  for
 4    school  districts under this subsection shall be appropriated
 5    for distribution to school districts as part of the same line
 6    item in which the  general  State  financial  aid  of  school
 7    districts is appropriated under this Section. For purposes of
 8    this  subsection,  the  term "Low-Income Concentration Level"
 9    shall be the low-income eligible pupil count  from  the  most
10    recently  available  federal  census  divided  by the Average
11    Daily Attendance of the school district.
12        (2)  Supplemental general  State  aid  pursuant  to  this
13    subsection shall be provided as follows:
14             (a)  For  any  school  district  with  a  Low Income
15        Concentration Level of at least 20% and  less  than  35%,
16        the grant for any school year shall be $800 multiplied by
17        the low income eligible pupil count.
18             (b)  For  any  school  district  with  a  Low Income
19        Concentration Level of at least 35% and  less  than  50%,
20        the  grant  for the 1998-1999 school year shall be $1,100
21        multiplied by the low income eligible pupil count.
22             (c)  For any  school  district  with  a  Low  Income
23        Concentration  Level  of  at least 50% and less than 60%,
24        the grant for the 1998-99 school  year  shall  be  $1,500
25        multiplied by the low income eligible pupil count.
26             (d)  For  any  school  district  with  a  Low Income
27        Concentration Level of 60% or more,  the  grant  for  the
28        1998-99 school year shall be $1,900 multiplied by the low
29        income eligible pupil count.
30             (e)  For  the  1999-2000  school year, the per pupil
31        amount specified in  subparagraphs  (b),  (c),  and  (d),
32        immediately  above  shall be increased by $100 to $1,200,
33        $1,600, and $2,000, respectively.
34             (f)  For the 2000-2001 school year,  the  per  pupil
 
                            -13-              LRB9101183NTsbA
 1        amounts  specified  in  subparagraphs  (b),  (c)  and (d)
 2        immediately above shall be increased to  $1,230,  $1,640,
 3        and $2,050, respectively.
 4        (3)  School districts with an Average Daily Attendance of
 5    more  than  1,000  and  less  than  50,000  that  qualify for
 6    supplemental general State aid pursuant  to  this  subsection
 7    shall  submit a plan to the State Board of Education prior to
 8    October 30 of each year for the use of  the  funds  resulting
 9    from  this  grant  of  supplemental general State aid for the
10    improvement of instruction in  which  priority  is  given  to
11    meeting  the education needs of disadvantaged children.  Such
12    plan  shall  be  submitted  in  accordance  with  rules   and
13    regulations promulgated by the State Board of Education.
14        (4)  School districts with an Average Daily Attendance of
15    50,000  or  more  that qualify for supplemental general State
16    aid  pursuant  to  this  subsection  shall  be  required   to
17    distribute  from funds available pursuant to this Section, no
18    less than  $261,000,000  in  accordance  with  the  following
19    requirements:
20             (a)  The  required  amounts  shall be distributed to
21        the attendance centers within the district in  proportion
22        to  the  number  of  pupils  enrolled  at each attendance
23        center who are eligible to receive free or  reduced-price
24        lunches  or  breakfasts under the federal Child Nutrition
25        Act of 1966 and  under  the  National  School  Lunch  Act
26        during the immediately preceding school year.
27             (b)  The   distribution   of   these   portions   of
28        supplemental  and  general  State  aid  among  attendance
29        centers  according  to  these  requirements  shall not be
30        compensated for or  contravened  by  adjustments  of  the
31        total  of  other  funds  appropriated  to  any attendance
32        centers, and the Board of Education shall utilize funding
33        from one or several sources in order to  fully  implement
34        this provision annually prior to the opening of school.
 
                            -14-              LRB9101183NTsbA
 1             (c)  Each attendance center shall be provided by the
 2        school  district  a  distribution of noncategorical funds
 3        and other categorical funds to which an attendance center
 4        is entitled under law in order that the general State aid
 5        and  supplemental   general   State   aid   provided   by
 6        application  of  this  subsection supplements rather than
 7        supplants the noncategorical funds and other  categorical
 8        funds  provided  by the school district to the attendance
 9        centers.
10             (d)  Any funds made available under this  subsection
11        that  by  reason of the provisions of this subsection are
12        not required to be allocated and provided  to  attendance
13        centers  may be used and appropriated by the board of the
14        district for any lawful school purpose.
15             (e)  Funds received by an attendance center pursuant
16        to this subsection shall be used by the attendance center
17        at the discretion  of  the  principal  and  local  school
18        council for programs to improve educational opportunities
19        at  qualifying schools through the following programs and
20        services: early childhood education, reduced  class  size
21        or  improved adult to student classroom ratio, enrichment
22        programs, remedial  assistance,  attendance  improvement,
23        and  other  educationally  beneficial  expenditures which
24        supplement the regular and basic programs  as  determined
25        by  the  State  Board of Education.  Funds provided shall
26        not be expended for any political or lobbying purposes as
27        defined by board rule.
28             (f)  Each district subject to the provisions of this
29        subdivision (H)(4) shall submit  an  acceptable  plan  to
30        meet  the educational needs of disadvantaged children, in
31        compliance with the requirements of  this  paragraph,  to
32        the  State  Board  of  Education prior to July 15 of each
33        year. This plan shall be consistent with the decisions of
34        local school councils concerning the  school  expenditure
 
                            -15-              LRB9101183NTsbA
 1        plans  developed  in  accordance  with  part 4 of Section
 2        34-2.3.  The State Board shall approve or reject the plan
 3        within 60 days after its  submission.   If  the  plan  is
 4        rejected,  the  district  shall  give  written  notice of
 5        intent  to  modify  the  plan  within  15  days  of   the
 6        notification of rejection and then submit a modified plan
 7        within  30  days  after the date of the written notice of
 8        intent to modify.  Districts  may  amend  approved  plans
 9        pursuant  to  rules  promulgated  by  the  State Board of
10        Education.
11             Upon notification by the State  Board  of  Education
12        that  the district has not submitted a plan prior to July
13        15 or a modified plan within the  time  period  specified
14        herein,  the  State  aid  funds  affected by that plan or
15        modified plan shall be withheld by  the  State  Board  of
16        Education until a plan or modified plan is submitted.
17             If  the  district  fails  to distribute State aid to
18        attendance centers in accordance with an  approved  plan,
19        the  plan for the following year shall allocate funds, in
20        addition  to  the  funds  otherwise  required   by   this
21        subsection,   to  those  attendance  centers  which  were
22        underfunded during the previous year in amounts equal  to
23        such underfunding.
24             For  purposes  of  determining  compliance with this
25        subsection in relation to the requirements of  attendance
26        center  funding,  each district subject to the provisions
27        of this subsection shall submit as a separate document by
28        December 1 of each year a report of expenditure data  for
29        the  prior  year  in  addition to any modification of its
30        current plan.  If it is determined that there has been  a
31        failure to comply with the expenditure provisions of this
32        subsection  regarding  contravention  or supplanting, the
33        State Superintendent of Education shall, within  60  days
34        of  receipt  of  the  report, notify the district and any
 
                            -16-              LRB9101183NTsbA
 1        affected local school council.  The district shall within
 2        45 days of receipt of that notification inform the  State
 3        Superintendent of Education of the remedial or corrective
 4        action  to be taken, whether  by amendment of the current
 5        plan, if feasible, or by adjustment in the plan  for  the
 6        following  year.   Failure  to  provide  the  expenditure
 7        report  or  the  notification  of  remedial or corrective
 8        action in a timely manner shall result in  a  withholding
 9        of the affected funds.
10             The  State Board of Education shall promulgate rules
11        and regulations  to  implement  the  provisions  of  this
12        subsection.   No  funds  shall  be  released  under  this
13        subdivision (H)(4) to any district that has not submitted
14        a  plan  that  has  been  approved  by the State Board of
15        Education.

16    (I)  General State Aid for Newly Configured School Districts.
17        (1)  For  a  new  school  district  formed  by  combining
18    property  included  totally  within  2  or  more   previously
19    existing  school  districts,  for its first year of existence
20    the general State aid  and  supplemental  general  State  aid
21    calculated  under  this Section shall be computed for the new
22    district and for the previously existing districts for  which
23    property is totally included within the new district.  If the
24    computation on the basis of the previously existing districts
25    is  greater,  a supplementary payment equal to the difference
26    shall be made for the first 4 years of existence of  the  new
27    district.
28        (2)  For  a  school  district  which  annexes  all of the
29    territory of one or more entire other school  districts,  for
30    the   first  year  during  which  the  change  of  boundaries
31    attributable to such annexation  becomes  effective  for  all
32    purposes as determined under Section 7-9 or 7A-8, the general
33    State aid and supplemental general State aid calculated under
34    this  Section  shall be computed for the annexing district as
 
                            -17-              LRB9101183NTsbA
 1    constituted after the annexation and  for  the  annexing  and
 2    each annexed district as constituted prior to the annexation;
 3    and  if  the  computation  on  the  basis of the annexing and
 4    annexed districts as constituted prior to the  annexation  is
 5    greater,  a  supplementary  payment  equal  to the difference
 6    shall be made for the first  4  years  of  existence  of  the
 7    annexing school district as constituted upon such annexation.
 8        (3)  For  2  or  more school districts which annex all of
 9    the territory of one or more entire other  school  districts,
10    and  for 2 or more community unit districts which result upon
11    the division (pursuant to petition under  Section  11A-2)  of
12    one  or more other unit school districts into 2 or more parts
13    and which together include all of the parts into  which  such
14    other  unit  school district or districts are so divided, for
15    the  first  year  during  which  the  change  of   boundaries
16    attributable to such annexation or division becomes effective
17    for  all  purposes as determined under Section 7-9 or 11A-10,
18    as the case may be, the general State  aid  and  supplemental
19    general  State  aid  calculated  under  this Section shall be
20    computed  for  each  annexing  or   resulting   district   as
21    constituted  after  the  annexation  or division and for each
22    annexing and annexed district,  or  for  each  resulting  and
23    divided  district,  as constituted prior to the annexation or
24    division; and if the aggregate of the general State  aid  and
25    supplemental  general  State  aid  as  so  computed  for  the
26    annexing  or  resulting  districts  as  constituted after the
27    annexation or division is less  than  the  aggregate  of  the
28    general  State  aid  and supplemental general State aid as so
29    computed for the annexing and annexed districts, or  for  the
30    resulting  and divided districts, as constituted prior to the
31    annexation or division, then a supplementary payment equal to
32    the difference shall be made and allocated between  or  among
33    the annexing or resulting districts, as constituted upon such
34    annexation  or  division,  for  the  first  4  years of their
 
                            -18-              LRB9101183NTsbA
 1    existence.  The total difference payment shall  be  allocated
 2    between  or  among the annexing or resulting districts in the
 3    same ratio as the pupil enrollment from that portion  of  the
 4    annexed  or divided district or districts which is annexed to
 5    or included in each such annexing or resulting district bears
 6    to the total pupil enrollment  from  the  entire  annexed  or
 7    divided  district  or  districts, as such pupil enrollment is
 8    determined for the school year last ending prior to the  date
 9    when  the change of boundaries attributable to the annexation
10    or division becomes effective for all purposes.   The  amount
11    of  the total difference payment and the amount thereof to be
12    allocated to the annexing or  resulting  districts  shall  be
13    computed  by  the  State  Board  of Education on the basis of
14    pupil enrollment and other data which shall be  certified  to
15    the State Board of Education, on forms which it shall provide
16    for  that  purpose, by the regional superintendent of schools
17    for each educational service region in which the annexing and
18    annexed districts, or resulting  and  divided  districts  are
19    located.
20        (3.5)  Claims   for   financial   assistance  under  this
21    subsection (I) shall not be recomputed  except  as  expressly
22    provided under this Section.
23        (4)  Any supplementary payment made under this subsection
24    (I) shall be treated as separate from all other payments made
25    pursuant to this Section.

26    (J)  Supplementary Grants in Aid.
27        (1)  Notwithstanding   any   other   provisions  of  this
28    Section, the amount of the aggregate  general  State  aid  in
29    combination  with  supplemental  general State aid under this
30    Section for which each school district is eligible  shall  be
31    no  less  than  the amount of the aggregate general State aid
32    entitlement that was received by the district  under  Section
33    18-8  (exclusive  of  amounts received under subsections 5(p)
34    and 5(p-5) of that Section)  for  the  1997-98  school  year,
 
                            -19-              LRB9101183NTsbA
 1    pursuant  to the provisions of that Section as it was then in
 2    effect.  If  a  school  district  qualifies  to   receive   a
 3    supplementary  payment  made  under  this subsection (J), the
 4    amount of the aggregate general State aid in combination with
 5    supplemental general State aid under this Section  which that
 6    district is eligible to receive for each school year shall be
 7    no less than the amount of the aggregate  general  State  aid
 8    entitlement  that  was received by the district under Section
 9    18-8 (exclusive of amounts received  under  subsections  5(p)
10    and  5(p-5)  of  that Section) for the 1997-1998 school year,
11    pursuant to the provisions of that Section as it was then  in
12    effect.
13        (2)  If,  as provided in paragraph (1) of this subsection
14    (J), a school district is to receive aggregate general  State
15    aid  in combination with supplemental general State aid under
16    this Section for the 1998-99 school year and  any  subsequent
17    school  year  that  in  any such school year is less than the
18    amount of the aggregate general State  aid  entitlement  that
19    the district received for the 1997-98 school year, the school
20    district  shall  also  receive, from a separate appropriation
21    made for purposes of this  subsection  (J),  a  supplementary
22    payment  that is equal to the amount of the difference in the
23    aggregate State aid figures as described in paragraph (1).
24        (3)  (Blank).

25    (K)  Grants to Laboratory and Alternative Schools.
26        In calculating the amount to be  paid  to  the  governing
27    board  of  a  public  university  that  operates a laboratory
28    school under this Section or to any alternative  school  that
29    is  operated  by  a  regional  superintendent of schools, the
30    State Board of Education shall require by rule such reporting
31    requirements as it deems necessary.
32        As used in this  Section,  "laboratory  school"  means  a
33    public  school  which  is  created  and  operated by a public
34    university and approved by the State Board of Education.  The
 
                            -20-              LRB9101183NTsbA
 1    governing board of a public university which  receives  funds
 2    from  the  State  Board  under  this  subsection  (K) may not
 3    increase the number of students enrolled  in  its  laboratory
 4    school  from  a  single district, if that district is already
 5    sending 50 or more students, except under a mutual  agreement
 6    between the school board of a student's district of residence
 7    and  the  university which operates the laboratory school.  A
 8    laboratory school may not  have  more  than  1,000  students,
 9    excluding  students  with disabilities in a special education
10    program.
11        As used in this Section,  "alternative  school"  means  a
12    public  school  which  is  created and operated by a Regional
13    Superintendent of Schools and approved by the State Board  of
14    Education.  Such  alternative  schools  may  offer courses of
15    instruction for which  credit  is  given  in  regular  school
16    programs,  courses  to  prepare  students for the high school
17    equivalency testing program or  vocational  and  occupational
18    training.   A regional superintendent of schools may contract
19    with a school district or a public community college district
20    to operate an  alternative  school.   An  alternative  school
21    serving  more  than  one  educational  service  region may be
22    established by the regional  superintendents  of  schools  of
23    those   the   affected   educational  service  regions.    An
24    alternative school serving more than one educational  service
25    region  may  be  operated  under  such  terms as the regional
26    superintendents  of  schools  of  those  educational  service
27    regions may agree.
28        Each laboratory and alternative  school  shall  file,  on
29    forms  provided  by the State Superintendent of Education, an
30    annual  State  aid  claim  which  states  the  Average  Daily
31    Attendance of the school's students by  month.   The  best  3
32    months'  Average  Daily Attendance shall be computed for each
33    school. The general State aid entitlement shall  be  computed
34    by multiplying the applicable Average Daily Attendance by the
 
                            -21-              LRB9101183NTsbA
 1    Foundation Level as determined under this Section.

 2    (L)  Payments,   Additional   Grants   in   Aid   and   Other
 3    Requirements.
 4        (1)  For  a school district operating under the financial
 5    supervision of an Authority created under  Article  34A,  the
 6    general  State  aid  otherwise payable to that district under
 7    this Section, but not the  supplemental  general  State  aid,
 8    shall  be  reduced  by  an amount equal to the budget for the
 9    operations of the Authority as certified by the Authority  to
10    the  State  Board  of  Education, and an amount equal to such
11    reduction shall be paid to the  Authority  created  for  such
12    district for its operating expenses in the manner provided in
13    Section 18-11.  The remainder of general State school aid for
14    any  such  district  shall be paid in accordance with Article
15    34A when that Article provides for a disposition  other  than
16    that provided by this Article.
17        (2)  Impaction.   Impaction  payments  shall  be  made as
18    provided for in Section 18-4.2.
19        (3)  Summer school.  Summer school payments shall be made
20    as provided in Section 18-4.3.

21    (M)  Education Funding Advisory Board.
22        The Education Funding Advisory Board, hereinafter in this
23    subsection (M) referred to as the "Board", is hereby created.
24    The Board shall consist of 5 members who are appointed by the
25    Governor, by and with the advice and consent of  the  Senate.
26    The   members  appointed  shall  include  representatives  of
27    education, business, and  the  general  public.  One  of  the
28    members  so  appointed shall be designated by the Governor at
29    the time the appointment is made as the  chairperson  of  the
30    Board.  The initial members of the Board may be appointed any
31    time after the effective date of this amendatory Act of 1997.
32    The regular term of each member of the Board shall be  for  4
33    years  from  the third Monday of January of the year in which
 
                            -22-              LRB9101183NTsbA
 1    the term of the member's appointment is to  commence,  except
 2    that  of  the  5  initial  members  appointed to serve on the
 3    Board, the member who is appointed as the  chairperson  shall
 4    serve  for  a  term  that commences on the date of his or her
 5    appointment and expires on the third Monday of January, 2002,
 6    and the remaining 4 members,  by  lots  drawn  at  the  first
 7    meeting  of  the  Board  that is held after all 5 members are
 8    appointed, shall determine 2 of their  number  to  serve  for
 9    terms   that   commence  on  the  date  of  their  respective
10    appointments and expire on the third Monday of January, 2001,
11    and 2 of their number to serve for terms that commence on the
12    date of their respective appointments and expire on the third
13    Monday of January, 2000.  All members appointed to  serve  on
14    the  Board  shall serve until their respective successors are
15    appointed and confirmed.  Vacancies shall be  filled  in  the
16    same  manner  as  original  appointments.   If  a  vacancy in
17    membership occurs at  a  time  when  the  Senate  is  not  in
18    session,  the  Governor  shall  make  a temporary appointment
19    until the next meeting of the Senate, when he  or  she  shall
20    appoint,  by and with the advice and consent of the Senate, a
21    person to fill that membership for the  unexpired  term.   If
22    the  Senate  is  not in session when the initial appointments
23    are made, those appointments shall be made as in the case  of
24    vacancies.
25        The  Education  Funding  Advisory  Board  shall be deemed
26    established,  and  the  initial  members  appointed  by   the
27    Governor  to serve as members of the Board shall take office,
28    on the date that the Governor makes his or her appointment of
29    the fifth initial member of the Board, whether those  initial
30    members   are   then  serving  pursuant  to  appointment  and
31    confirmation or pursuant to temporary appointments  that  are
32    made by the Governor as in the case of vacancies.
33        The  State  Board  of  Education shall provide such staff
34    assistance to the Education  Funding  Advisory  Board  as  is
 
                            -23-              LRB9101183NTsbA
 1    reasonably  required  for the proper performance by the Board
 2    of its responsibilities.
 3        For school years after the  2000-2001  school  year,  the
 4    Education  Funding  Advisory  Board, in consultation with the
 5    State Board  of  Education,  shall  make  recommendations  as
 6    provided  in  this subsection (M) to the General Assembly for
 7    the foundation level under subdivision (B)(3) of this Section
 8    and for the supplemental general State aid grant level  under
 9    subsection  (H)  of  this  Section  for  districts  with high
10    concentrations of children  from  poverty.   The  recommended
11    foundation  level  shall be determined based on a methodology
12    which  incorporates  the  basic  education  expenditures   of
13    low-spending  schools  exhibiting  high academic performance.
14    The  Education  Funding  Advisory  Board  shall   make   such
15    recommendations  to  the General Assembly on January 1 of odd
16    numbered years, beginning January 1, 2001.

17    (N)  General State Aid Adjustment Grant.
18        (1)  Any  school  district  subject   to   property   tax
19    extension  limitations as imposed under the provisions of the
20    Property Tax Extension Limitation Law shall  be  entitled  to
21    receive,  subject  to  the qualifications and requirements of
22    this  subsection,  a  general  State  aid  adjustment  grant.
23    Eligibility for this grant shall be determined on  an  annual
24    basis  and claims for grant payments shall be paid subject to
25    appropriations  made  specific  to  this   subsection.    For
26    purposes  of  this  subsection the following terms shall have
27    the following meanings:
28        "Budget Year":  The school year for which  general  State
29    aid is calculated and awarded under subsection (E).
30        "Current  Year":   The  school year immediately preceding
31    the Budget Year.
32        "Base Tax Year":  The property  tax  levy  year  used  to
33    calculate the Budget Year allocation of general State aid.
34        "Preceding   Tax  Year":   The  property  tax  levy  year
 
                            -24-              LRB9101183NTsbA
 1    immediately preceding the Base Tax Year.
 2        "Extension  Limitation   Ratio":   A   numerical   ratio,
 3    certified  by  a school district's County Clerk, in which the
 4    numerator  is  the  Base  Tax  Year's  tax  extension  amount
 5    resulting from the Limiting Rate and the denominator  is  the
 6    Preceding  Tax Year's tax extension amount resulting from the
 7    Limiting Rate.
 8        "Limiting Rate":  The limiting rate  as  defined  in  the
 9    Property Tax Extension Limitation Law.
10        "Preliminary  Tax  Rate":  The  tax rate for all purposes
11    except bond and interest that would have been used to  extend
12    those  taxes  absent  the  provisions  of  the  Property  Tax
13    Extension Limitation Law.
14        (2)  To qualify for a general State aid adjustment grant,
15    a  school district must meet all of the following eligibility
16    criteria for each Budget Year for which a grant is claimed:
17             (a)  (Blank).
18             (b)  The Preliminary Tax Rate of the school district
19        for the Base Tax Year was reduced by  the  Clerk  of  the
20        County  as  a  result of the requirements of the Property
21        Tax Extension Limitation Law.
22             (c)  The Available Local Resources per pupil of  the
23        school  district as calculated pursuant to subsection (D)
24        using the Base Tax Year are less than the product of 1.75
25        times the Foundation Level for the Budget Year.
26             (d)  The school district  has  filed  a  proper  and
27        timely  claim for a general State aid adjustment grant as
28        required under this subsection.
29        (3)  A claim for grant assistance under  this  subsection
30    shall be filed with the State Board of Education on or before
31    April  1 of the Current Year for a grant for the Budget Year.
32    The claim shall be made on  forms  prescribed  by  the  State
33    Board  of  Education  and  must  be  accompanied by a written
34    statement from the Clerk of the County, certifying:
 
                            -25-              LRB9101183NTsbA
 1             (a)  That the school district  had  its  Preliminary
 2        Tax Rate for the Base Tax Year reduced as a result of the
 3        Property Tax Extension Limitation Law.
 4             (b)  (Blank).
 5             (c)  The  Extension Limitation Ratio as that term is
 6        defined in this subsection.
 7        (4)  On or before August 1 of the Budget Year  the  State
 8    Board  of Education shall calculate, for all school districts
 9    meeting the other requirements of this subsection, the amount
10    of the general State aid adjustment grant, if any,  that  the
11    school  districts are eligible to receive in the Budget Year.
12    The amount of the general State aid adjustment grant shall be
13    calculated as follows:
14             (a)  Determine the school district's  general  State
15        aid  grant  for the Budget Year as provided in accordance
16        with the provisions of subsection (E).
17             (b)  Determine the school district's adjusted  level
18        of  general  State aid by utilizing in the calculation of
19        Available  Local   Resources   the   equalized   assessed
20        valuation  that  was  used to calculate the general State
21        aid for the  preceding  fiscal  year  multiplied  by  the
22        Extension Limitation Ratio.
23             (c)  Subtract  the  sum  derived in subparagraph (a)
24        from the sum derived in subparagraph (b).  If the  result
25        is  a  positive  number, that amount shall be the general
26        State aid adjustment grant that the district is  eligible
27        to receive.
28        (5)  The  State  Board  of Education shall in the Current
29    Year, based upon claims filed in the Current Year,  recommend
30    to  the  General  Assembly  an  appropriation  amount for the
31    general State aid adjustment grants to be made in the  Budget
32    Year.
33        (6)  Claims for general State aid adjustment grants shall
34    be  paid  in  a lump sum on or before January 1 of the Budget
 
                            -26-              LRB9101183NTsbA
 1    Year only from appropriations made by  the  General  Assembly
 2    expressly  for  claims under this subsection.  No such claims
 3    may be paid from amounts appropriated for any  other  purpose
 4    provided  for  under  this  Section.   In  the event that the
 5    appropriation   for   claims   under   this   subsection   is
 6    insufficient to meet all Budget Year  claims  for  a  general
 7    State aid adjustment grant, the appropriation available shall
 8    be  proportionately  prorated by the State Board of Education
 9    amongst all districts filing for and entitled to payments.
10        (7)  The State Board of Education  shall  promulgate  the
11    required  claim  forms  and  rules necessary to implement the
12    provisions of this subsection.

13    (O)  References.
14        (1)  References in other laws to the various subdivisions
15    of Section 18-8 as that Section existed before its repeal and
16    replacement by this Section 18-8.05 shall be deemed to  refer
17    to  the  corresponding provisions of this Section 18-8.05, to
18    the extent that those references remain applicable.
19        (2)  References in other laws to State  Chapter  1  funds
20    shall  be  deemed  to refer to the supplemental general State
21    aid provided under subsection (H) of this Section.
22    (Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
23    90-653, eff. 7-29-98;  90-654,  eff.  7-29-98;  90-655,  eff.
24    7-30-98; 90-802, eff. 12-15-98; revised 12-24-98.)

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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