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92_HB1442eng HB1442 Engrossed LRB9202673NTsb 1 AN ACT in relation to education. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing 5 Section 18-8.05 as follows: 6 (105 ILCS 5/18-8.05) 7 Sec. 18-8.05. Basis for apportionment of general State 8 financial aid and supplemental general State aid to the 9 common schools for the 1998-1999 and subsequent school years. 10 (A) General Provisions. 11 (1) The provisions of this Section apply to the 12 1998-1999 school year and subsequent school years. The 13 system of general State financial aid provided for in this 14 Section is designed to assure that, through a combination of 15 State financial aid and required local resources, the 16 financial support provided each pupil in Average Daily 17 Attendance equals or exceeds a prescribed per pupil 18 Foundation Level. This formula approach imputes a level of 19 per pupil Available Local Resources and provides for the 20 basis to calculate a per pupil level of general State 21 financial aid that, when added to Available Local Resources, 22 equals or exceeds the Foundation Level. The amount of per 23 pupil general State financial aid for school districts, in 24 general, varies in inverse relation to Available Local 25 Resources. Per pupil amounts are based upon each school 26 district's Average Daily Attendance as that term is defined 27 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 HB1442 Engrossed -2- LRB9202673NTsb 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). HB1442 Engrossed -3- LRB9202673NTsb 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 HB1442 Engrossed -4- LRB9202673NTsb 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. HB1442 Engrossed -5- LRB9202673NTsb 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 1.05%, and divided by 31 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, HB1442 Engrossed -6- LRB9202673NTsb 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. HB1442 Engrossed -7- LRB9202673NTsb 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 (5) The amount of general State aid allocated to a 8 school district for the 1999-2000 school year meeting the 9 requirements set forth in paragraph (4) of subsection (G) 10 shall be increased by an amount equal to the general State 11 aid that would have been received by the district for the 12 1998-1999 school year by utilizing the Extension Limitation 13 Equalized Assessed Valuation as calculated in paragraph (4) 14 of subsection (G) less the general State aid allotted for the 15 1998-1999 school year. This amount shall be deemed a one 16 time increase, and shall not affect any future general State 17 aid allocations. 18 (F) Compilation of Average Daily Attendance. 19 (1) Each school district shall, by July 1 of each year, 20 submit to the State Board of Education, on forms prescribed 21 by the State Board of Education, attendance figures for the 22 school year that began in the preceding calendar year. The 23 attendance information so transmitted shall identify the 24 average daily attendance figures for each month of the school 25 year, except that any days of attendance in August shall be 26 added to the month of September and any days of attendance in 27 June shall be added to the month of May. 28 Except as otherwise provided in this Section, days of 29 attendance by pupils shall be counted only for sessions of 30 not less than 5 clock hours of school work per day under 31 direct supervision of: (i) teachers, or (ii) non-teaching 32 personnel or volunteer personnel when engaging in 33 non-teaching duties and supervising in those instances 34 specified in subsection (a) of Section 10-22.34 and paragraph HB1442 Engrossed -8- LRB9202673NTsb 1 10 of Section 34-18, with pupils of legal school age and in 2 kindergarten and grades 1 through 12. 3 Days of attendance by tuition pupils shall be accredited 4 only to the districts that pay the tuition to a recognized 5 school. 6 (2) Days of attendance by pupils of less than 5 clock 7 hours of school shall be subject to the following provisions 8 in the compilation of Average Daily Attendance. 9 (a) Pupils regularly enrolled in a public school 10 for only a part of the school day may be counted on the 11 basis of 1/6 day for every class hour of instruction of 12 40 minutes or more attended pursuant to such enrollment. 13 (b) Days of attendance may be less than 5 clock 14 hours on the opening and closing of the school term, and 15 upon the first day of pupil attendance, if preceded by a 16 day or days utilized as an institute or teachers' 17 workshop. 18 (c) A session of 4 or more clock hours may be 19 counted as a day of attendance upon certification by the 20 regional superintendent, and approved by the State 21 Superintendent of Education to the extent that the 22 district has been forced to use daily multiple sessions. 23 (d) A session of 3 or more clock hours may be 24 counted as a day of attendance (1) when the remainder of 25 the school day or at least 2 hours in the evening of that 26 day is utilized for an in-service training program for 27 teachers, up to a maximum of 5 days per school year of 28 which a maximum of 4 days of such 5 days may be used for 29 parent-teacher conferences, provided a district conducts 30 an in-service training program for teachers which has 31 been approved by the State Superintendent of Education; 32 or, in lieu of 4 such days, 2 full days may be used, in 33 which event each such day may be counted as a day of 34 attendance; and (2) when days in addition to those HB1442 Engrossed -9- LRB9202673NTsb 1 provided in item (1) are scheduled by a school pursuant 2 to its school improvement plan adopted under Article 34 3 or its revised or amended school improvement plan adopted 4 under Article 2, provided that (i) such sessions of 3 or 5 more clock hours are scheduled to occur at regular 6 intervals, (ii) the remainder of the school days in which 7 such sessions occur are utilized for in-service training 8 programs or other staff development activities for 9 teachers, and (iii) a sufficient number of minutes of 10 school work under the direct supervision of teachers are 11 added to the school days between such regularly scheduled 12 sessions to accumulate not less than the number of 13 minutes by which such sessions of 3 or more clock hours 14 fall short of 5 clock hours. Any full days used for the 15 purposes of this paragraph shall not be considered for 16 computing average daily attendance. Days scheduled for 17 in-service training programs, staff development 18 activities, or parent-teacher conferences may be 19 scheduled separately for different grade levels and 20 different attendance centers of the district. 21 (e) A session of not less than one clock hour of 22 teaching hospitalized or homebound pupils on-site or by 23 telephone to the classroom may be counted as 1/2 day of 24 attendance, however these pupils must receive 4 or more 25 clock hours of instruction to be counted for a full day 26 of attendance. 27 (f) A session of at least 4 clock hours may be 28 counted as a day of attendance for first grade pupils, 29 and pupils in full day kindergartens, and a session of 2 30 or more hours may be counted as 1/2 day of attendance by 31 pupils in kindergartens which provide only 1/2 day of 32 attendance. 33 (g) For children with disabilities who are below 34 the age of 6 years and who cannot attend 2 or more clock HB1442 Engrossed -10- LRB9202673NTsb 1 hours because of their disability or immaturity, a 2 session of not less than one clock hour may be counted as 3 1/2 day of attendance; however for such children whose 4 educational needs so require a session of 4 or more clock 5 hours may be counted as a full day of attendance. 6 (h) A recognized kindergarten which provides for 7 only 1/2 day of attendance by each pupil shall not have 8 more than 1/2 day of attendance counted in any one day. 9 However, kindergartens may count 2 1/2 days of attendance 10 in any 5 consecutive school days. When a pupil attends 11 such a kindergarten for 2 half days on any one school 12 day, the pupil shall have the following day as a day 13 absent from school, unless the school district obtains 14 permission in writing from the State Superintendent of 15 Education. Attendance at kindergartens which provide for 16 a full day of attendance by each pupil shall be counted 17 the same as attendance by first grade pupils. Only the 18 first year of attendance in one kindergarten shall be 19 counted, except in case of children who entered the 20 kindergarten in their fifth year whose educational 21 development requires a second year of kindergarten as 22 determined under the rules and regulations of the State 23 Board of Education. 24 (G) Equalized Assessed Valuation Data. 25 (1) For purposes of the calculation of Available Local 26 Resources required pursuant to subsection (D), the State 27 Board of Education shall secure from the Department of 28 Revenue the value as equalized or assessed by the Department 29 of Revenue of all taxable property of every school district, 30 together with (i) the applicable tax rate used in extending 31 taxes for the funds of the district as of September 30 of the 32 previous year and (ii) the limiting rate for all school 33 districts subject to property tax extension limitations as 34 imposed under the Property Tax Extension Limitation Law. HB1442 Engrossed -11- LRB9202673NTsb 1 This equalized assessed valuation, as adjusted further by 2 the requirements of this subsection, shall be utilized in the 3 calculation of Available Local Resources. 4 (2) The equalized assessed valuation in paragraph (1) 5 shall be adjusted, as applicable, in the following manner: 6 (a) For the purposes of calculating State aid under 7 this Section, with respect to any part of a school 8 district within a redevelopment project area in respect 9 to which a municipality has adopted tax increment 10 allocation financing pursuant to the Tax Increment 11 Allocation Redevelopment Act, Sections 11-74.4-1 through 12 11-74.4-11 of the Illinois Municipal Code or the 13 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 14 11-74.6-50 of the Illinois Municipal Code, no part of the 15 current equalized assessed valuation of real property 16 located in any such project area which is attributable to 17 an increase above the total initial equalized assessed 18 valuation of such property shall be used as part of the 19 equalized assessed valuation of the district, until such 20 time as all redevelopment project costs have been paid, 21 as provided in Section 11-74.4-8 of the Tax Increment 22 Allocation Redevelopment Act or in Section 11-74.6-35 of 23 the Industrial Jobs Recovery Law. For the purpose of the 24 equalized assessed valuation of the district, the total 25 initial equalized assessed valuation or the current 26 equalized assessed valuation, whichever is lower, shall 27 be used until such time as all redevelopment project 28 costs have been paid. 29 (b) The real property equalized assessed valuation 30 for a school district shall be adjusted by subtracting 31 from the real property value as equalized or assessed by 32 the Department of Revenue for the district an amount 33 computed by dividing the amount of any abatement of taxes 34 under Section 18-170 of the Property Tax Code by 3.00% HB1442 Engrossed -12- LRB9202673NTsb 1 for a district maintaining grades kindergarten through 2 12, by 2.30% for a district maintaining grades 3 kindergarten through 8, or by 1.05% for a district 4 maintaining grades 9 through 12 and adjusted by an amount 5 computed by dividing the amount of any abatement of taxes 6 under subsection (a) of Section 18-165 of the Property 7 Tax Code by the same percentage rates for district type 8 as specified in this subparagraph (b). 9 (3) For the 1999-2000 school year and each school year 10 thereafter, if a school district meets all of the criteria of 11 this subsection (G)(3), the school district's Available Local 12 Resources shall be calculated under subsection (D) using the 13 district's Extension Limitation Equalized Assessed Valuation 14 as calculated under this subsection (G)(3). 15 For purposes of this subsection (G)(3) the following 16 terms shall have the following meanings: 17 "Budget Year": The school year for which general 18 State aid is calculated and awarded under subsection (E). 19 "Base Tax Year": The property tax levy year used to 20 calculate the Budget Year allocation of general State 21 aid. 22 "Preceding Tax Year": The property tax levy year 23 immediately preceding the Base Tax Year. 24 "Base Tax Year's Tax Extension": The product of the 25 equalized assessed valuation utilized by the County Clerk 26 in the Base Tax Year multiplied by the limiting rate as 27 calculated by the County Clerk and defined in the 28 Property Tax Extension Limitation Law. 29 "Preceding Tax Year's Tax Extension": The product of 30 the equalized assessed valuation utilized by the County 31 Clerk in the Preceding Tax Year multiplied by the 32 Operating Tax Rate as defined in subsection (A). 33 "Extension Limitation Ratio": A numerical ratio, 34 certified by the County Clerk, in which the numerator is HB1442 Engrossed -13- LRB9202673NTsb 1 the Base Tax Year's Tax Extension and the denominator is 2 the Preceding Tax Year's Tax Extension. 3 "Operating Tax Rate": The operating tax rate as 4 defined in subsection (A). 5 If a school district is subject to property tax extension 6 limitations as imposed under the Property Tax Extension 7 Limitation Law, and if the Available Local Resources of that 8 school district as calculated pursuant to subsection (D) 9 using the Base Tax Year are less than the product of 1.75 10 times the Foundation Level for the Budget Year, the State 11 Board of Education shall calculate the Extension Limitation 12 Equalized Assessed Valuation of that district. For the 13 1999-2000 school year, the Extension Limitation Equalized 14 Assessed Valuation of a school district as calculated by the 15 State Board of Education shall be equal to the product of the 16 district's 1996 Equalized Assessed Valuation and the 17 district's Extension Limitation Ratio. For the 2000-2001 18 school year and each school year thereafter, the Extension 19 Limitation Equalized Assessed Valuation of a school district 20 as calculated by the State Board of Education shall be equal 21 to the product of the last calculated Extension Limitation 22 Equalized Assessed Valuation and the district's Extension 23 Limitation Ratio. If the Extension Limitation Equalized 24 Assessed Valuation of a school district as calculated under 25 this subsection (G)(3) is less than the district's equalized 26 assessed valuation as calculated pursuant to subsections 27 (G)(1) and (G)(2), then for purposes of calculating the 28 district's general State aid for the Budget Year pursuant to 29 subsection (E), that Extension Limitation Equalized Assessed 30 Valuation shall be utilized to calculate the district's 31 Available Local Resources under subsection (D). 32 (4) For the purposes of calculating general State aid 33 for the 1999-2000 school year only, if a school district 34 experienced a triennial reassessment on the equalized HB1442 Engrossed -14- LRB9202673NTsb 1 assessed valuation used in calculating its general State 2 financial aid apportionment for the 1998-1999 school year, 3 the State Board of Education shall calculate the Extension 4 Limitation Equalized Assessed Valuation that would have been 5 used to calculate the district's 1998-1999 general State aid. 6 This amount shall equal the product of the equalized assessed 7 valuation used to calculate general State aid for the 8 1997-1998 school year and the district's Extension Limitation 9 Ratio. If the Extension Limitation Equalized Assessed 10 Valuation of the school district as calculated under this 11 paragraph (4) is less than the district's equalized assessed 12 valuation utilized in calculating the district's 1998-1999 13 general State aid allocation, then for purposes of 14 calculating the district's general State aid pursuant to 15 paragraph (5) of subsection (E), that Extension Limitation 16 Equalized Assessed Valuation shall be utilized to calculate 17 the district's Available Local Resources. 18 (5) For school districts having a majority of their 19 equalized assessed valuation in any county except Cook, 20 DuPage, Kane, Lake, McHenry, or Will, if the amount of 21 general State aid allocated to the school district for the 22 1999-2000 school year under the provisions of subsection (E), 23 (H), and (J) of this Section is less than the amount of 24 general State aid allocated to the district for the 1998-1999 25 school year under these subsections, then the general State 26 aid of the district for the 1999-2000 school year only shall 27 be increased by the difference between these amounts. The 28 total payments made under this paragraph (5) shall not exceed 29 $14,000,000. Claims shall be prorated if they exceed 30 $14,000,000. 31 (H) Supplemental General State Aid. 32 (1) In addition to the general State aid a school 33 district is allotted pursuant to subsection (E), qualifying 34 school districts shall receive a grant, paid in conjunction HB1442 Engrossed -15- LRB9202673NTsb 1 with a district's payments of general State aid, for 2 supplemental general State aid based upon the concentration 3 level of children from low-income households within the 4 school district. Supplemental State aid grants provided for 5 school districts under this subsection shall be appropriated 6 for distribution to school districts as part of the same line 7 item in which the general State financial aid of school 8 districts is appropriated under this Section. For purposes of 9 this subsection, the term "Low-Income Concentration Level" 10 shall be the low-income eligible pupil count from the most 11 recently available federal census divided by the Average 12 Daily Attendance of the school district. If, however, the 13 percentage decrease from the 2 most recent federal censuses 14 in the low-income eligible pupil count of a high school 15 district with fewer than 400 students exceeds by 75% or more 16 the percentage change in the total low-income eligible pupil 17 count of contiguous elementary school districts, whose 18 boundaries are coterminous with the high school district, the 19 high school district's low-income eligible pupil count from 20 the earlier federal census shall be the number used as the 21 low-income eligible pupil count for the high school district, 22 for purposes of this subsection (H). 23 (2) Supplemental general State aid pursuant to this 24 subsection shall be provided as follows: 25 (a) For any school district with a Low Income 26 Concentration Level of at least 20% and less than 35%, 27 the grant for any school year shall be $800 multiplied by 28 the low income eligible pupil count. 29 (b) For any school district with a Low Income 30 Concentration Level of at least 35% and less than 50%, 31 the grant for the 1998-1999 school year shall be $1,100 32 multiplied by the low income eligible pupil count. 33 (c) For any school district with a Low Income 34 Concentration Level of at least 50% and less than 60%, HB1442 Engrossed -16- LRB9202673NTsb 1 the grant for the 1998-99 school year shall be $1,500 2 multiplied by the low income eligible pupil count. 3 (d) For any school district with a Low Income 4 Concentration Level of 60% or more, the grant for the 5 1998-99 school year shall be $1,900 multiplied by the low 6 income eligible pupil count. 7 (e) For the 1999-2000 school year, the per pupil 8 amount specified in subparagraphs (b), (c), and (d) 9 immediately above shall be increased to $1,243, $1,600, 10 and $2,000, respectively. 11 (f) For the 2000-2001 school year, the per pupil 12 amounts specified in subparagraphs (b), (c), and (d) 13 immediately above shall be $1,273, $1,640, and $2,050, 14 respectively. 15 (3) School districts with an Average Daily Attendance of 16 more than 1,000 and less than 50,000 that qualify for 17 supplemental general State aid pursuant to this subsection 18 shall submit a plan to the State Board of Education prior to 19 October 30 of each year for the use of the funds resulting 20 from this grant of supplemental general State aid for the 21 improvement of instruction in which priority is given to 22 meeting the education needs of disadvantaged children. Such 23 plan shall be submitted in accordance with rules and 24 regulations promulgated by the State Board of Education. 25 (4) School districts with an Average Daily Attendance of 26 50,000 or more that qualify for supplemental general State 27 aid pursuant to this subsection shall be required to 28 distribute from funds available pursuant to this Section, no 29 less than $261,000,000 in accordance with the following 30 requirements: 31 (a) The required amounts shall be distributed to 32 the attendance centers within the district in proportion 33 to the number of pupils enrolled at each attendance 34 center who are eligible to receive free or reduced-price HB1442 Engrossed -17- LRB9202673NTsb 1 lunches or breakfasts under the federal Child Nutrition 2 Act of 1966 and under the National School Lunch Act 3 during the immediately preceding school year. 4 (b) The distribution of these portions of 5 supplemental and general State aid among attendance 6 centers according to these requirements shall not be 7 compensated for or contravened by adjustments of the 8 total of other funds appropriated to any attendance 9 centers, and the Board of Education shall utilize funding 10 from one or several sources in order to fully implement 11 this provision annually prior to the opening of school. 12 (c) Each attendance center shall be provided by the 13 school district a distribution of noncategorical funds 14 and other categorical funds to which an attendance center 15 is entitled under law in order that the general State aid 16 and supplemental general State aid provided by 17 application of this subsection supplements rather than 18 supplants the noncategorical funds and other categorical 19 funds provided by the school district to the attendance 20 centers. 21 (d) Any funds made available under this subsection 22 that by reason of the provisions of this subsection are 23 not required to be allocated and provided to attendance 24 centers may be used and appropriated by the board of the 25 district for any lawful school purpose. 26 (e) Funds received by an attendance center pursuant 27 to this subsection shall be used by the attendance center 28 at the discretion of the principal and local school 29 council for programs to improve educational opportunities 30 at qualifying schools through the following programs and 31 services: early childhood education, reduced class size 32 or improved adult to student classroom ratio, enrichment 33 programs, remedial assistance, attendance improvement, 34 and other educationally beneficial expenditures which HB1442 Engrossed -18- LRB9202673NTsb 1 supplement the regular and basic programs as determined 2 by the State Board of Education. Funds provided shall 3 not be expended for any political or lobbying purposes as 4 defined by board rule. 5 (f) Each district subject to the provisions of this 6 subdivision (H)(4) shall submit an acceptable plan to 7 meet the educational needs of disadvantaged children, in 8 compliance with the requirements of this paragraph, to 9 the State Board of Education prior to July 15 of each 10 year. This plan shall be consistent with the decisions of 11 local school councils concerning the school expenditure 12 plans developed in accordance with part 4 of Section 13 34-2.3. The State Board shall approve or reject the plan 14 within 60 days after its submission. If the plan is 15 rejected, the district shall give written notice of 16 intent to modify the plan within 15 days of the 17 notification of rejection and then submit a modified plan 18 within 30 days after the date of the written notice of 19 intent to modify. Districts may amend approved plans 20 pursuant to rules promulgated by the State Board of 21 Education. 22 Upon notification by the State Board of Education 23 that the district has not submitted a plan prior to July 24 15 or a modified plan within the time period specified 25 herein, the State aid funds affected by that plan or 26 modified plan shall be withheld by the State Board of 27 Education until a plan or modified plan is submitted. 28 If the district fails to distribute State aid to 29 attendance centers in accordance with an approved plan, 30 the plan for the following year shall allocate funds, in 31 addition to the funds otherwise required by this 32 subsection, to those attendance centers which were 33 underfunded during the previous year in amounts equal to 34 such underfunding. HB1442 Engrossed -19- LRB9202673NTsb 1 For purposes of determining compliance with this 2 subsection in relation to the requirements of attendance 3 center funding, each district subject to the provisions 4 of this subsection shall submit as a separate document by 5 December 1 of each year a report of expenditure data for 6 the prior year in addition to any modification of its 7 current plan. If it is determined that there has been a 8 failure to comply with the expenditure provisions of this 9 subsection regarding contravention or supplanting, the 10 State Superintendent of Education shall, within 60 days 11 of receipt of the report, notify the district and any 12 affected local school council. The district shall within 13 45 days of receipt of that notification inform the State 14 Superintendent of Education of the remedial or corrective 15 action to be taken, whether by amendment of the current 16 plan, if feasible, or by adjustment in the plan for the 17 following year. Failure to provide the expenditure 18 report or the notification of remedial or corrective 19 action in a timely manner shall result in a withholding 20 of the affected funds. 21 The State Board of Education shall promulgate rules 22 and regulations to implement the provisions of this 23 subsection. No funds shall be released under this 24 subdivision (H)(4) to any district that has not submitted 25 a plan that has been approved by the State Board of 26 Education. 27 (I) General State Aid for Newly Configured School Districts. 28 (1) For a new school district formed by combining 29 property included totally within 2 or more previously 30 existing school districts, for its first year of existence 31 the general State aid and supplemental general State aid 32 calculated under this Section shall be computed for the new 33 district and for the previously existing districts for which 34 property is totally included within the new district. If the HB1442 Engrossed -20- LRB9202673NTsb 1 computation on the basis of the previously existing districts 2 is greater, a supplementary payment equal to the difference 3 shall be made for the first 4 years of existence of the new 4 district. 5 (2) For a school district which annexes all of the 6 territory of one or more entire other school districts, for 7 the first year during which the change of boundaries 8 attributable to such annexation becomes effective for all 9 purposes as determined under Section 7-9 or 7A-8, the general 10 State aid and supplemental general State aid calculated under 11 this Section shall be computed for the annexing district as 12 constituted after the annexation and for the annexing and 13 each annexed district as constituted prior to the annexation; 14 and if the computation on the basis of the annexing and 15 annexed districts as constituted prior to the annexation is 16 greater, a supplementary payment equal to the difference 17 shall be made for the first 4 years of existence of the 18 annexing school district as constituted upon such annexation. 19 (3) For 2 or more school districts which annex all of 20 the territory of one or more entire other school districts, 21 and for 2 or more community unit districts which result upon 22 the division (pursuant to petition under Section 11A-2) of 23 one or more other unit school districts into 2 or more parts 24 and which together include all of the parts into which such 25 other unit school district or districts are so divided, for 26 the first year during which the change of boundaries 27 attributable to such annexation or division becomes effective 28 for all purposes as determined under Section 7-9 or 11A-10, 29 as the case may be, the general State aid and supplemental 30 general State aid calculated under this Section shall be 31 computed for each annexing or resulting district as 32 constituted after the annexation or division and for each 33 annexing and annexed district, or for each resulting and 34 divided district, as constituted prior to the annexation or HB1442 Engrossed -21- LRB9202673NTsb 1 division; and if the aggregate of the general State aid and 2 supplemental general State aid as so computed for the 3 annexing or resulting districts as constituted after the 4 annexation or division is less than the aggregate of the 5 general State aid and supplemental general State aid as so 6 computed for the annexing and annexed districts, or for the 7 resulting and divided districts, as constituted prior to the 8 annexation or division, then a supplementary payment equal to 9 the difference shall be made and allocated between or among 10 the annexing or resulting districts, as constituted upon such 11 annexation or division, for the first 4 years of their 12 existence. The total difference payment shall be allocated 13 between or among the annexing or resulting districts in the 14 same ratio as the pupil enrollment from that portion of the 15 annexed or divided district or districts which is annexed to 16 or included in each such annexing or resulting district bears 17 to the total pupil enrollment from the entire annexed or 18 divided district or districts, as such pupil enrollment is 19 determined for the school year last ending prior to the date 20 when the change of boundaries attributable to the annexation 21 or division becomes effective for all purposes. The amount 22 of the total difference payment and the amount thereof to be 23 allocated to the annexing or resulting districts shall be 24 computed by the State Board of Education on the basis of 25 pupil enrollment and other data which shall be certified to 26 the State Board of Education, on forms which it shall provide 27 for that purpose, by the regional superintendent of schools 28 for each educational service region in which the annexing and 29 annexed districts, or resulting and divided districts are 30 located. 31 (3.5) Claims for financial assistance under this 32 subsection (I) shall not be recomputed except as expressly 33 provided under this Section. 34 (4) Any supplementary payment made under this subsection HB1442 Engrossed -22- LRB9202673NTsb 1 (I) shall be treated as separate from all other payments made 2 pursuant to this Section. 3 (J) Supplementary Grants in Aid. 4 (1) Notwithstanding any other provisions of this 5 Section, the amount of the aggregate general State aid in 6 combination with supplemental general State aid under this 7 Section for which each school district is eligible shall be 8 no less than the amount of the aggregate general State aid 9 entitlement that was received by the district under Section 10 18-8 (exclusive of amounts received under subsections 5(p) 11 and 5(p-5) of that Section) for the 1997-98 school year, 12 pursuant to the provisions of that Section as it was then in 13 effect. If a school district qualifies to receive a 14 supplementary payment made under this subsection (J), the 15 amount of the aggregate general State aid in combination with 16 supplemental general State aid under this Section which that 17 district is eligible to receive for each school year shall be 18 no less than the amount of the aggregate general State aid 19 entitlement that was received by the district under Section 20 18-8 (exclusive of amounts received under subsections 5(p) 21 and 5(p-5) of that Section) for the 1997-1998 school year, 22 pursuant to the provisions of that Section as it was then in 23 effect. 24 (2) If, as provided in paragraph (1) of this subsection 25 (J), a school district is to receive aggregate general State 26 aid in combination with supplemental general State aid under 27 this Section for the 1998-99 school year and any subsequent 28 school year that in any such school year is less than the 29 amount of the aggregate general State aid entitlement that 30 the district received for the 1997-98 school year, the school 31 district shall also receive, from a separate appropriation 32 made for purposes of this subsection (J), a supplementary 33 payment that is equal to the amount of the difference in the 34 aggregate State aid figures as described in paragraph (1). HB1442 Engrossed -23- LRB9202673NTsb 1 (3) (Blank). 2 (K) Grants to Laboratory and Alternative Schools. 3 In calculating the amount to be paid to the governing 4 board of a public university that operates a laboratory 5 school under this Section or to any alternative school that 6 is operated by a regional superintendent of schools, the 7 State Board of Education shall require by rule such reporting 8 requirements as it deems necessary. 9 As used in this Section, "laboratory school" means a 10 public school which is created and operated by a public 11 university and approved by the State Board of Education. The 12 governing board of a public university which receives funds 13 from the State Board under this subsection (K) may not 14 increase the number of students enrolled in its laboratory 15 school from a single district, if that district is already 16 sending 50 or more students, except under a mutual agreement 17 between the school board of a student's district of residence 18 and the university which operates the laboratory school. A 19 laboratory school may not have more than 1,000 students, 20 excluding students with disabilities in a special education 21 program. 22 As used in this Section, "alternative school" means a 23 public school which is created and operated by a Regional 24 Superintendent of Schools and approved by the State Board of 25 Education. Such alternative schools may offer courses of 26 instruction for which credit is given in regular school 27 programs, courses to prepare students for the high school 28 equivalency testing program or vocational and occupational 29 training. A regional superintendent of schools may contract 30 with a school district or a public community college district 31 to operate an alternative school. An alternative school 32 serving more than one educational service region may be 33 established by the regional superintendents of schools of the 34 affected educational service regions. An alternative school HB1442 Engrossed -24- LRB9202673NTsb 1 serving more than one educational service region may be 2 operated under such terms as the regional superintendents of 3 schools of those educational service regions may agree. 4 Each laboratory and alternative school shall file, on 5 forms provided by the State Superintendent of Education, an 6 annual State aid claim which states the Average Daily 7 Attendance of the school's students by month. The best 3 8 months' Average Daily Attendance shall be computed for each 9 school. The general State aid entitlement shall be computed 10 by multiplying the applicable Average Daily Attendance by the 11 Foundation Level as determined under this Section. 12 (L) Payments, Additional Grants in Aid and Other 13 Requirements. 14 (1) For a school district operating under the financial 15 supervision of an Authority created under Article 34A, the 16 general State aid otherwise payable to that district under 17 this Section, but not the supplemental general State aid, 18 shall be reduced by an amount equal to the budget for the 19 operations of the Authority as certified by the Authority to 20 the State Board of Education, and an amount equal to such 21 reduction shall be paid to the Authority created for such 22 district for its operating expenses in the manner provided in 23 Section 18-11. The remainder of general State school aid for 24 any such district shall be paid in accordance with Article 25 34A when that Article provides for a disposition other than 26 that provided by this Article. 27 (2) (Blank). 28 (3) Summer school. Summer school payments shall be made 29 as provided in Section 18-4.3. 30 (M) Education Funding Advisory Board. 31 The Education Funding Advisory Board, hereinafter in this 32 subsection (M) referred to as the "Board", is hereby created. 33 The Board shall consist of 5 members who are appointed by the HB1442 Engrossed -25- LRB9202673NTsb 1 Governor, by and with the advice and consent of the Senate. 2 The members appointed shall include representatives of 3 education, business, and the general public. One of the 4 members so appointed shall be designated by the Governor at 5 the time the appointment is made as the chairperson of the 6 Board. The initial members of the Board may be appointed any 7 time after the effective date of this amendatory Act of 1997. 8 The regular term of each member of the Board shall be for 4 9 years from the third Monday of January of the year in which 10 the term of the member's appointment is to commence, except 11 that of the 5 initial members appointed to serve on the 12 Board, the member who is appointed as the chairperson shall 13 serve for a term that commences on the date of his or her 14 appointment and expires on the third Monday of January, 2002, 15 and the remaining 4 members, by lots drawn at the first 16 meeting of the Board that is held after all 5 members are 17 appointed, shall determine 2 of their number to serve for 18 terms that commence on the date of their respective 19 appointments and expire on the third Monday of January, 2001, 20 and 2 of their number to serve for terms that commence on the 21 date of their respective appointments and expire on the third 22 Monday of January, 2000. All members appointed to serve on 23 the Board shall serve until their respective successors are 24 appointed and confirmed. Vacancies shall be filled in the 25 same manner as original appointments. If a vacancy in 26 membership occurs at a time when the Senate is not in 27 session, the Governor shall make a temporary appointment 28 until the next meeting of the Senate, when he or she shall 29 appoint, by and with the advice and consent of the Senate, a 30 person to fill that membership for the unexpired term. If 31 the Senate is not in session when the initial appointments 32 are made, those appointments shall be made as in the case of 33 vacancies. 34 The Education Funding Advisory Board shall be deemed HB1442 Engrossed -26- LRB9202673NTsb 1 established, and the initial members appointed by the 2 Governor to serve as members of the Board shall take office, 3 on the date that the Governor makes his or her appointment of 4 the fifth initial member of the Board, whether those initial 5 members are then serving pursuant to appointment and 6 confirmation or pursuant to temporary appointments that are 7 made by the Governor as in the case of vacancies. 8 The State Board of Education shall provide such staff 9 assistance to the Education Funding Advisory Board as is 10 reasonably required for the proper performance by the Board 11 of its responsibilities. 12 For school years after the 2000-2001 school year, the 13 Education Funding Advisory Board, in consultation with the 14 State Board of Education, shall make recommendations as 15 provided in this subsection (M) to the General Assembly for 16 the foundation level under subdivision (B)(3) of this Section 17 and for the supplemental general State aid grant level under 18 subsection (H) of this Section for districts with high 19 concentrations of children from poverty. The recommended 20 foundation level shall be determined based on a methodology 21 which incorporates the basic education expenditures of 22 low-spending schools exhibiting high academic performance. 23 The Education Funding Advisory Board shall make such 24 recommendations to the General Assembly on January 1 of odd 25 numbered years, beginning January 1, 2001. 26 (N) (Blank). 27 (O) References. 28 (1) References in other laws to the various subdivisions 29 of Section 18-8 as that Section existed before its repeal and 30 replacement by this Section 18-8.05 shall be deemed to refer 31 to the corresponding provisions of this Section 18-8.05, to 32 the extent that those references remain applicable. 33 (2) References in other laws to State Chapter 1 funds HB1442 Engrossed -27- LRB9202673NTsb 1 shall be deemed to refer to the supplemental general State 2 aid provided under subsection (H) of this Section. 3 (Source: P.A. 90-548, eff. 7-1-98; incorporates 90-566; 4 90-653, eff. 7-29-98; 90-654, eff. 7-29-98; 90-655, eff. 5 7-30-98; 90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24, 6 eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99; 91-111, 7 eff. 7-14-99; 91-357, eff. 7-29-99; 91-533, eff. 8-13-99; 8 revised 8-27-99.)