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92_HB2523ham002 LRB9206774NTsbam 1 AMENDMENT TO HOUSE BILL 2523 2 AMENDMENT NO. . Amend House Bill 2523 by replacing 3 everything after the enacting clause with the following: 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, -2- LRB9206774NTsbam 1 equals or exceeds the Foundation Level. The amount of per 2 pupil general State financial aid for school districts, in 3 general, varies in inverse relation to Available Local 4 Resources. Per pupil amounts are based upon each school 5 district's Average Daily Attendance as that term is defined 6 in this Section. 7 (2) In addition to general State financial aid, school 8 districts with specified levels or concentrations of pupils 9 from low income households are eligible to receive 10 supplemental general State financial aid grants as provided 11 pursuant to subsection (H). The supplemental State aid grants 12 provided for school districts under subsection (H) shall be 13 appropriated for distribution to school districts as part of 14 the same line item in which the general State financial aid 15 of school districts is appropriated under this Section. 16 (3) To receive financial assistance under this Section, 17 school districts are required to file claims with the State 18 Board of Education, subject to the following requirements: 19 (a) Any school district which fails for any given 20 school year to maintain school as required by law, or to 21 maintain a recognized school is not eligible to file for 22 such school year any claim upon the Common School Fund. 23 In case of nonrecognition of one or more attendance 24 centers in a school district otherwise operating 25 recognized schools, the claim of the district shall be 26 reduced in the proportion which the Average Daily 27 Attendance in the attendance center or centers bear to 28 the Average Daily Attendance in the school district. A 29 "recognized school" means any public school which meets 30 the standards as established for recognition by the State 31 Board of Education. A school district or attendance 32 center not having recognition status at the end of a 33 school term is entitled to receive State aid payments due 34 upon a legal claim which was filed while it was -3- LRB9206774NTsbam 1 recognized. 2 (b) School district claims filed under this Section 3 are subject to Sections 18-9, 18-10, and 18-12, except as 4 otherwise provided in this Section. 5 (c) If a school district operates a full year 6 school under Section 10-19.1, the general State aid to 7 the school district shall be determined by the State 8 Board of Education in accordance with this Section as 9 near as may be applicable. 10 (d) (Blank). 11 (4) Except as provided in subsections (H) and (L), the 12 board of any district receiving any of the grants provided 13 for in this Section may apply those funds to any fund so 14 received for which that board is authorized to make 15 expenditures by law. 16 School districts are not required to exert a minimum 17 Operating Tax Rate in order to qualify for assistance under 18 this Section. 19 (5) As used in this Section the following terms, when 20 capitalized, shall have the meaning ascribed herein: 21 (a) "Average Daily Attendance": A count of pupil 22 attendance in school, averaged as provided for in 23 subsection (C) and utilized in deriving per pupil 24 financial support levels. 25 (b) "Available Local Resources": A computation of 26 local financial support, calculated on the basis of 27 Average Daily Attendance and derived as provided pursuant 28 to subsection (D). 29 (c) "Corporate Personal Property Replacement 30 Taxes": Funds paid to local school districts pursuant to 31 "An Act in relation to the abolition of ad valorem 32 personal property tax and the replacement of revenues 33 lost thereby, and amending and repealing certain Acts and 34 parts of Acts in connection therewith", certified August -4- LRB9206774NTsbam 1 14, 1979, as amended (Public Act 81-1st S.S.-1). 2 (d) "Foundation Level": A prescribed level of per 3 pupil financial support as provided for in subsection 4 (B). 5 (e) "Operating Tax Rate": All school district 6 property taxes extended for all purposes, except Bond and 7 Interest, Summer School, Rent, Capital Improvement, and 8 Vocational Education Building purposes. 9 (B) Foundation Level. 10 (1) The Foundation Level is a figure established by the 11 State representing the minimum level of per pupil financial 12 support that should be available to provide for the basic 13 education of each pupil in Average Daily Attendance. As set 14 forth in this Section, each school district is assumed to 15 exert a sufficient local taxing effort such that, in 16 combination with the aggregate of general State financial aid 17 provided the district, an aggregate of State and local 18 resources are available to meet the basic education needs of 19 pupils in the district. 20 (2) For the 1998-1999 school year, the Foundation Level 21 of support is $4,225. For the 1999-2000 school year, the 22 Foundation Level of support is $4,325. For the 2000-2001 23 school year, the Foundation Level of support is $4,425. 24 (3) For the 2001-2002 school year and each school year 25 thereafter, the Foundation Level of support is $4,425 or such 26 greater amount as may be established by law by the General 27 Assembly. 28 (C) Average Daily Attendance. 29 (1) For purposes of calculating general State aid 30 pursuant to subsection (E), an Average Daily Attendance 31 figure shall be utilized. The Average Daily Attendance 32 figure for formula calculation purposes shall be the monthly 33 average of the actual number of pupils in attendance of each -5- LRB9206774NTsbam 1 school district, as further averaged for the best 3 months of 2 pupil attendance for each school district. In compiling the 3 figures for the number of pupils in attendance, school 4 districts and the State Board of Education shall, for 5 purposes of general State aid funding, conform attendance 6 figures to the requirements of subsection (F). 7 (2) The Average Daily Attendance figures utilized in 8 subsection (E) shall be the requisite attendance data for the 9 school year immediately preceding the school year for which 10 general State aid is being calculated. 11 (D) Available Local Resources. 12 (1) For purposes of calculating general State aid 13 pursuant to subsection (E), a representation of Available 14 Local Resources per pupil, as that term is defined and 15 determined in this subsection, shall be utilized. Available 16 Local Resources per pupil shall include a calculated dollar 17 amount representing local school district revenues from local 18 property taxes and from Corporate Personal Property 19 Replacement Taxes, expressed on the basis of pupils in 20 Average Daily Attendance. 21 (2) In determining a school district's revenue from 22 local property taxes, the State Board of Education shall 23 utilize the equalized assessed valuation of all taxable 24 property of each school district as of September 30 of the 25 previous year. The equalized assessed valuation utilized 26 shall be obtained and determined as provided in subsection 27 (G). 28 (3) For school districts maintaining grades kindergarten 29 through 12, local property tax revenues per pupil shall be 30 calculated as the product of the applicable equalized 31 assessed valuation for the district multiplied by 3.00%, and 32 divided by the district's Average Daily Attendance figure. 33 For school districts maintaining grades kindergarten through 34 8, local property tax revenues per pupil shall be calculated -6- LRB9206774NTsbam 1 as the product of the applicable equalized assessed valuation 2 for the district multiplied by 2.30%, and divided by the 3 district's Average Daily Attendance figure. For school 4 districts maintaining grades 9 through 12, local property tax 5 revenues per pupil shall be the applicable equalized assessed 6 valuation of the district multiplied by 1.05%, and divided by 7 the district's Average Daily Attendance figure. 8 (4) The Corporate Personal Property Replacement Taxes 9 paid to each school district during the calendar year 2 years 10 before the calendar year in which a school year begins, 11 divided by the Average Daily Attendance figure for that 12 district, shall be added to the local property tax revenues 13 per pupil as derived by the application of the immediately 14 preceding paragraph (3). The sum of these per pupil figures 15 for each school district shall constitute Available Local 16 Resources as that term is utilized in subsection (E) in the 17 calculation of general State aid. 18 (E) Computation of General State Aid. 19 (1) For each school year, the amount of general State 20 aid allotted to a school district shall be computed by the 21 State Board of Education as provided in this subsection. 22 (2) For any school district for which Available Local 23 Resources per pupil is less than the product of 0.93 times 24 the Foundation Level, general State aid for that district 25 shall be calculated as an amount equal to the Foundation 26 Level minus Available Local Resources, multiplied by the 27 Average Daily Attendance of the school district. 28 (3) For any school district for which Available Local 29 Resources per pupil is equal to or greater than the product 30 of 0.93 times the Foundation Level and less than the product 31 of 1.75 times the Foundation Level, the general State aid per 32 pupil shall be a decimal proportion of the Foundation Level 33 derived using a linear algorithm. Under this linear 34 algorithm, the calculated general State aid per pupil shall -7- LRB9206774NTsbam 1 decline in direct linear fashion from 0.07 times the 2 Foundation Level for a school district with Available Local 3 Resources equal to the product of 0.93 times the Foundation 4 Level, to 0.05 times the Foundation Level for a school 5 district with Available Local Resources equal to the product 6 of 1.75 times the Foundation Level. The allocation of 7 general State aid for school districts subject to this 8 paragraph 3 shall be the calculated general State aid per 9 pupil figure multiplied by the Average Daily Attendance of 10 the school district. 11 (4) For any school district for which Available Local 12 Resources per pupil equals or exceeds the product of 1.75 13 times the Foundation Level, the general State aid for the 14 school district shall be calculated as the product of $218 15 multiplied by the Average Daily Attendance of the school 16 district. 17 (5) The amount of general State aid allocated to a 18 school district for the 1999-2000 school year meeting the 19 requirements set forth in paragraph (4) of subsection (G) 20 shall be increased by an amount equal to the general State 21 aid that would have been received by the district for the 22 1998-1999 school year by utilizing the Extension Limitation 23 Equalized Assessed Valuation as calculated in paragraph (4) 24 of subsection (G) less the general State aid allotted for the 25 1998-1999 school year. This amount shall be deemed a one 26 time increase, and shall not affect any future general State 27 aid allocations. 28 (F) Compilation of Average Daily Attendance. 29 (1) Each school district shall, by July 1 of each year, 30 submit to the State Board of Education, on forms prescribed 31 by the State Board of Education, attendance figures for the 32 school year that began in the preceding calendar year. The 33 attendance information so transmitted shall identify the 34 average daily attendance figures for each month of the school -8- LRB9206774NTsbam 1 year, except that any days of attendance in August shall be 2 added to the month of September and any days of attendance in 3 June shall be added to the month of May. 4 Except as otherwise provided in this Section, days of 5 attendance by pupils shall be counted only for sessions of 6 not less than 5 clock hours of school work per day under 7 direct supervision of: (i) teachers, or (ii) non-teaching 8 personnel or volunteer personnel when engaging in 9 non-teaching duties and supervising in those instances 10 specified in subsection (a) of Section 10-22.34 and paragraph 11 10 of Section 34-18, with pupils of legal school age and in 12 kindergarten and grades 1 through 12. 13 Days of attendance by tuition pupils shall be accredited 14 only to the districts that pay the tuition to a recognized 15 school. 16 (2) Days of attendance by pupils of less than 5 clock 17 hours of school shall be subject to the following provisions 18 in the compilation of Average Daily Attendance. 19 (a) Pupils regularly enrolled in a public school 20 for only a part of the school day may be counted on the 21 basis of 1/6 day for every class hour of instruction of 22 40 minutes or more attended pursuant to such enrollment. 23 (b) Days of attendance may be less than 5 clock 24 hours on the opening and closing of the school term, and 25 upon the first day of pupil attendance, if preceded by a 26 day or days utilized as an institute or teachers' 27 workshop. 28 (c) A session of 4 or more clock hours may be 29 counted as a day of attendance upon certification by the 30 regional superintendent, and approved by the State 31 Superintendent of Education to the extent that the 32 district has been forced to use daily multiple sessions. 33 (d) A session of 3 or more clock hours may be 34 counted as a day of attendance (1) when the remainder of -9- LRB9206774NTsbam 1 the school day or at least 2 hours in the evening of that 2 day is utilized for an in-service training program for 3 teachers, up to a maximum of 5 days per school year of 4 which a maximum of 4 days of such 5 days may be used for 5 parent-teacher conferences, provided a district conducts 6 an in-service training program for teachers which has 7 been approved by the State Superintendent of Education; 8 or, in lieu of 4 such days, 2 full days may be used, in 9 which event each such day may be counted as a day of 10 attendance; and (2) when days in addition to those 11 provided in item (1) are scheduled by a school pursuant 12 to its school improvement plan adopted under Article 34 13 or its revised or amended school improvement plan adopted 14 under Article 2, provided that (i) such sessions of 3 or 15 more clock hours are scheduled to occur at regular 16 intervals, (ii) the remainder of the school days in which 17 such sessions occur are utilized for in-service training 18 programs or other staff development activities for 19 teachers, and (iii) a sufficient number of minutes of 20 school work under the direct supervision of teachers are 21 added to the school days between such regularly scheduled 22 sessions to accumulate not less than the number of 23 minutes by which such sessions of 3 or more clock hours 24 fall short of 5 clock hours. Any full days used for the 25 purposes of this paragraph shall not be considered for 26 computing average daily attendance. Days scheduled for 27 in-service training programs, staff development 28 activities, or parent-teacher conferences may be 29 scheduled separately for different grade levels and 30 different attendance centers of the district. 31 (e) A session of not less than one clock hour of 32 teaching hospitalized or homebound pupils on-site or by 33 telephone to the classroom may be counted as 1/2 day of 34 attendance, however these pupils must receive 4 or more -10- LRB9206774NTsbam 1 clock hours of instruction to be counted for a full day 2 of attendance. 3 (f) A session of at least 4 clock hours may be 4 counted as a day of attendance for first grade pupils, 5 and pupils in full day kindergartens, and a session of 2 6 or more hours may be counted as 1/2 day of attendance by 7 pupils in kindergartens which provide only 1/2 day of 8 attendance. 9 (g) For children with disabilities who are below 10 the age of 6 years and who cannot attend 2 or more clock 11 hours because of their disability or immaturity, a 12 session of not less than one clock hour may be counted as 13 1/2 day of attendance; however for such children whose 14 educational needs so require a session of 4 or more clock 15 hours may be counted as a full day of attendance. 16 (h) A recognized kindergarten which provides for 17 only 1/2 day of attendance by each pupil shall not have 18 more than 1/2 day of attendance counted in any one day. 19 However, kindergartens may count 2 1/2 days of attendance 20 in any 5 consecutive school days. When a pupil attends 21 such a kindergarten for 2 half days on any one school 22 day, the pupil shall have the following day as a day 23 absent from school, unless the school district obtains 24 permission in writing from the State Superintendent of 25 Education. Attendance at kindergartens which provide for 26 a full day of attendance by each pupil shall be counted 27 the same as attendance by first grade pupils. Only the 28 first year of attendance in one kindergarten shall be 29 counted, except in case of children who entered the 30 kindergarten in their fifth year whose educational 31 development requires a second year of kindergarten as 32 determined under the rules and regulations of the State 33 Board of Education. 34 (G) Equalized Assessed Valuation Data. -11- LRB9206774NTsbam 1 (1) For purposes of the calculation of Available Local 2 Resources required pursuant to subsection (D), the State 3 Board of Education shall secure from the Department of 4 Revenue the value as equalized or assessed by the Department 5 of Revenue of all taxable property of every school district, 6 together with (i) the applicable tax rate used in extending 7 taxes for the funds of the district as of September 30 of the 8 previous year and (ii) the limiting rate for all school 9 districts subject to property tax extension limitations as 10 imposed under the Property Tax Extension Limitation Law. 11 This equalized assessed valuation, as adjusted further by 12 the requirements of this subsection, shall be utilized in the 13 calculation of Available Local Resources. 14 (2) The equalized assessed valuation in paragraph (1) 15 shall be adjusted, as applicable, in the following manner: 16 (a) For the purposes of calculating State aid under 17 this Section, with respect to any part of a school 18 district within a redevelopment project area in respect 19 to which a municipality has adopted tax increment 20 allocation financing pursuant to the Tax Increment 21 Allocation Redevelopment Act, Sections 11-74.4-1 through 22 11-74.4-11 of the Illinois Municipal Code or the 23 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 24 11-74.6-50 of the Illinois Municipal Code, no part of the 25 current equalized assessed valuation of real property 26 located in any such project area which is attributable to 27 an increase above the total initial equalized assessed 28 valuation of such property shall be used as part of the 29 equalized assessed valuation of the district, until such 30 time as all redevelopment project costs have been paid, 31 as provided in Section 11-74.4-8 of the Tax Increment 32 Allocation Redevelopment Act or in Section 11-74.6-35 of 33 the Industrial Jobs Recovery Law. For the purpose of the 34 equalized assessed valuation of the district, the total -12- LRB9206774NTsbam 1 initial equalized assessed valuation or the current 2 equalized assessed valuation, whichever is lower, shall 3 be used until such time as all redevelopment project 4 costs have been paid. 5 (b) The real property equalized assessed valuation 6 for a school district shall be adjusted by subtracting 7 from the real property value as equalized or assessed by 8 the Department of Revenue for the district an amount 9 computed by dividing the amount of any abatement of taxes 10 under Section 18-170 of the Property Tax Code by 3.00% 11 for a district maintaining grades kindergarten through 12 12, by 2.30% for a district maintaining grades 13 kindergarten through 8, or by 1.05% for a district 14 maintaining grades 9 through 12 and adjusted by an amount 15 computed by dividing the amount of any abatement of taxes 16 under subsection (a) of Section 18-165 of the Property 17 Tax Code by the same percentage rates for district type 18 as specified in this subparagraph (b). 19 (3) For the 1999-2000 school year and each school year 20 thereafter, if a school district meets all of the criteria of 21 this subsection (G)(3), the school district's Available Local 22 Resources shall be calculated under subsection (D) using the 23 district's Extension Limitation Equalized Assessed Valuation 24 as calculated under this subsection (G)(3). 25 For purposes of this subsection (G)(3) the following 26 terms shall have the following meanings: 27 "Budget Year": The school year for which general 28 State aid is calculated and awarded under subsection (E). 29 "Base Tax Year": The property tax levy year used to 30 calculate the Budget Year allocation of general State 31 aid. 32 "Preceding Tax Year": The property tax levy year 33 immediately preceding the Base Tax Year. 34 "Base Tax Year's Tax Extension": The product of the -13- LRB9206774NTsbam 1 equalized assessed valuation utilized by the County Clerk 2 in the Base Tax Year multiplied by the limiting rate as 3 calculated by the County Clerk and defined in the 4 Property Tax Extension Limitation Law. 5 "Preceding Tax Year's Tax Extension": The product of 6 the equalized assessed valuation utilized by the County 7 Clerk in the Preceding Tax Year multiplied by the 8 Operating Tax Rate as defined in subsection (A). 9 "Extension Limitation Ratio": A numerical ratio, 10 certified by the County Clerk, in which the numerator is 11 the Base Tax Year's Tax Extension and the denominator is 12 the Preceding Tax Year's Tax Extension. 13 "Operating Tax Rate": The operating tax rate as 14 defined in subsection (A). 15 If a school district is subject to property tax extension 16 limitations as imposed under the Property Tax Extension 17 Limitation Law, and if the Available Local Resources of that 18 school district as calculated pursuant to subsection (D) 19 using the Base Tax Year are less than the product of 1.75 20 times the Foundation Level for the Budget Year, the State 21 Board of Education shall calculate the Extension Limitation 22 Equalized Assessed Valuation of that district. For the 23 1999-2000 school year, the Extension Limitation Equalized 24 Assessed Valuation of a school district as calculated by the 25 State Board of Education shall be equal to the product of the 26 district's 1996 Equalized Assessed Valuation and the 27 district's Extension Limitation Ratio. For the 2000-2001 28 school year and each school year thereafter, the Extension 29 Limitation Equalized Assessed Valuation of a school district 30 as calculated by the State Board of Education shall be equal 31 to the product of the last calculated Extension Limitation 32 Equalized Assessed Valuation and the district's Extension 33 Limitation Ratio. If the Extension Limitation Equalized 34 Assessed Valuation of a school district as calculated under -14- LRB9206774NTsbam 1 this subsection (G)(3) is less than the district's equalized 2 assessed valuation as calculated pursuant to subsections 3 (G)(1) and (G)(2), then for purposes of calculating the 4 district's general State aid for the Budget Year pursuant to 5 subsection (E), that Extension Limitation Equalized Assessed 6 Valuation shall be utilized to calculate the district's 7 Available Local Resources under subsection (D). 8 (4) For the purposes of calculating general State aid 9 for the 1999-2000 school year only, if a school district 10 experienced a triennial reassessment on the equalized 11 assessed valuation used in calculating its general State 12 financial aid apportionment for the 1998-1999 school year, 13 the State Board of Education shall calculate the Extension 14 Limitation Equalized Assessed Valuation that would have been 15 used to calculate the district's 1998-1999 general State aid. 16 This amount shall equal the product of the equalized assessed 17 valuation used to calculate general State aid for the 18 1997-1998 school year and the district's Extension Limitation 19 Ratio. If the Extension Limitation Equalized Assessed 20 Valuation of the school district as calculated under this 21 paragraph (4) is less than the district's equalized assessed 22 valuation utilized in calculating the district's 1998-1999 23 general State aid allocation, then for purposes of 24 calculating the district's general State aid pursuant to 25 paragraph (5) of subsection (E), that Extension Limitation 26 Equalized Assessed Valuation shall be utilized to calculate 27 the district's Available Local Resources. 28 (5) For school districts having a majority of their 29 equalized assessed valuation in any county except Cook, 30 DuPage, Kane, Lake, McHenry, or Will, if the amount of 31 general State aid allocated to the school district for the 32 1999-2000 school year under the provisions of subsection (E), 33 (H), and (J) of this Section is less than the amount of 34 general State aid allocated to the district for the 1998-1999 -15- LRB9206774NTsbam 1 school year under these subsections, then the general State 2 aid of the district for the 1999-2000 school year only shall 3 be increased by the difference between these amounts. The 4 total payments made under this paragraph (5) shall not exceed 5 $14,000,000. Claims shall be prorated if they exceed 6 $14,000,000. 7 (H) Supplemental General State Aid. 8 (1) In addition to the general State aid a school 9 district is allotted pursuant to subsection (E), qualifying 10 school districts shall receive a grant, paid in conjunction 11 with a district's payments of general State aid, for 12 supplemental general State aid based upon the concentration 13 level of children from low-income households within the 14 school district. Supplemental State aid grants provided for 15 school districts under this subsection shall be appropriated 16 for distribution to school districts as part of the same line 17 item in which the general State financial aid of school 18 districts is appropriated under this Section. For purposes of 19 this subsection, the term "Low-Income Concentration Level" 20 shall be the low-income eligible pupil count from the most 21 recently available federal census divided by the Average 22 Daily Attendance of the school district. If, however, the 23 percentage decrease from the 2 most recent federal censuses 24 in the low-income eligible pupil count of a high school 25 district with fewer than 400 students exceeds by 75% or more 26 the percentage change in the total low-income eligible pupil 27 count of contiguous elementary school districts, whose 28 boundaries are coterminous with the high school district, the 29 high school district's low-income eligible pupil count from 30 the earlier federal census shall be the number used as the 31 low-income eligible pupil count for the high school district, 32 for purposes of this subsection (H). 33 (2) Supplemental general State aid pursuant to this 34 subsection shall be provided as follows: -16- LRB9206774NTsbam 1 (a) For any school district with a Low Income 2 Concentration Level of at least 20% and less than 35%, 3 the grant for any school year shall be $800 multiplied by 4 the low income eligible pupil count. 5 (b) For any school district with a Low Income 6 Concentration Level of at least 35% and less than 50%, 7 the grant for the 1998-1999 school year shall be $1,100 8 multiplied by the low income eligible pupil count. 9 (c) For any school district with a Low Income 10 Concentration Level of at least 50% and less than 60%, 11 the grant for the 1998-99 school year shall be $1,500 12 multiplied by the low income eligible pupil count. 13 (d) For any school district with a Low Income 14 Concentration Level of 60% or more, the grant for the 15 1998-99 school year shall be $1,900 multiplied by the low 16 income eligible pupil count. 17 (e) For the 1999-2000 school year, the per pupil 18 amount specified in subparagraphs (b), (c), and (d) 19 immediately above shall be increased to $1,243, $1,600, 20 and $2,000, respectively. 21 (f) For the 2000-2001 school year, the per pupil 22 amounts specified in subparagraphs (b), (c), and (d) 23 immediately above shall be $1,273, $1,640, and $2,050, 24 respectively. 25 (3) School districts with an Average Daily Attendance of 26 more than 1,000 and less than 50,000 that qualify for 27 supplemental general State aid pursuant to this subsection 28 shall submit a plan to the State Board of Education prior to 29 October 30 of each year for the use of the funds resulting 30 from this grant of supplemental general State aid for the 31 improvement of instruction in which priority is given to 32 meeting the education needs of disadvantaged children. Such 33 plan shall be submitted in accordance with rules and 34 regulations promulgated by the State Board of Education. -17- LRB9206774NTsbam 1 (4) School districts with an Average Daily Attendance of 2 50,000 or more that qualify for supplemental general State 3 aid pursuant to this subsection shall be required to 4 distribute from funds available pursuant to this Section, no 5 less than $261,000,000 in accordance with the following 6 requirements: 7 (a) The required amounts shall be distributed to 8 the attendance centers within the district in proportion 9 to the number of pupils enrolled at each attendance 10 center who are eligible to receive free or reduced-price 11 lunches or breakfasts under the federal Child Nutrition 12 Act of 1966 and under the National School Lunch Act 13 during the immediately preceding school year. 14 (b) The distribution of these portions of 15 supplemental and general State aid among attendance 16 centers according to these requirements shall not be 17 compensated for or contravened by adjustments of the 18 total of other funds appropriated to any attendance 19 centers, and the Board of Education shall utilize funding 20 from one or several sources in order to fully implement 21 this provision annually prior to the opening of school. 22 (c) Each attendance center shall be provided by the 23 school district a distribution of noncategorical funds 24 and other categorical funds to which an attendance center 25 is entitled under law in order that the general State aid 26 and supplemental general State aid provided by 27 application of this subsection supplements rather than 28 supplants the noncategorical funds and other categorical 29 funds provided by the school district to the attendance 30 centers. 31 (d) Any funds made available under this subsection 32 that by reason of the provisions of this subsection are 33 not required to be allocated and provided to attendance 34 centers may be used and appropriated by the board of the -18- LRB9206774NTsbam 1 district for any lawful school purpose. 2 (e) Funds received by an attendance center pursuant 3 to this subsection shall be used by the attendance center 4 at the discretion of the principal and local school 5 council for programs to improve educational opportunities 6 at qualifying schools through the following programs and 7 services: early childhood education, reduced class size 8 or improved adult to student classroom ratio, enrichment 9 programs, remedial assistance, attendance improvement, 10 and other educationally beneficial expenditures which 11 supplement the regular and basic programs as determined 12 by the State Board of Education. Funds provided shall 13 not be expended for any political or lobbying purposes as 14 defined by board rule. 15 (f) Each district subject to the provisions of this 16 subdivision (H)(4) shall submit an acceptable plan to 17 meet the educational needs of disadvantaged children, in 18 compliance with the requirements of this paragraph, to 19 the State Board of Education prior to July 15 of each 20 year. This plan shall be consistent with the decisions of 21 local school councils concerning the school expenditure 22 plans developed in accordance with part 4 of Section 23 34-2.3. The State Board shall approve or reject the plan 24 within 60 days after its submission. If the plan is 25 rejected, the district shall give written notice of 26 intent to modify the plan within 15 days of the 27 notification of rejection and then submit a modified plan 28 within 30 days after the date of the written notice of 29 intent to modify. Districts may amend approved plans 30 pursuant to rules promulgated by the State Board of 31 Education. 32 Upon notification by the State Board of Education 33 that the district has not submitted a plan prior to July 34 15 or a modified plan within the time period specified -19- LRB9206774NTsbam 1 herein, the State aid funds affected by that plan or 2 modified plan shall be withheld by the State Board of 3 Education until a plan or modified plan is submitted. 4 If the district fails to distribute State aid to 5 attendance centers in accordance with an approved plan, 6 the plan for the following year shall allocate funds, in 7 addition to the funds otherwise required by this 8 subsection, to those attendance centers which were 9 underfunded during the previous year in amounts equal to 10 such underfunding. 11 For purposes of determining compliance with this 12 subsection in relation to the requirements of attendance 13 center funding, each district subject to the provisions 14 of this subsection shall submit as a separate document by 15 December 1 of each year a report of expenditure data for 16 the prior year in addition to any modification of its 17 current plan. If it is determined that there has been a 18 failure to comply with the expenditure provisions of this 19 subsection regarding contravention or supplanting, the 20 State Superintendent of Education shall, within 60 days 21 of receipt of the report, notify the district and any 22 affected local school council. The district shall within 23 45 days of receipt of that notification inform the State 24 Superintendent of Education of the remedial or corrective 25 action to be taken, whether by amendment of the current 26 plan, if feasible, or by adjustment in the plan for the 27 following year. Failure to provide the expenditure 28 report or the notification of remedial or corrective 29 action in a timely manner shall result in a withholding 30 of the affected funds. 31 The State Board of Education shall promulgate rules 32 and regulations to implement the provisions of this 33 subsection. No funds shall be released under this 34 subdivision (H)(4) to any district that has not submitted -20- LRB9206774NTsbam 1 a plan that has been approved by the State Board of 2 Education. 3 (I) General State Aid for Newly Configured School Districts. 4 (1) For a new school district formed by combining 5 property included totally within 2 or more previously 6 existing school districts, for its first year of existence 7 the general State aid and supplemental general State aid 8 calculated under this Section shall be computed for the new 9 district and for the previously existing districts for which 10 property is totally included within the new district. If the 11 computation on the basis of the previously existing districts 12 is greater, a supplementary payment equal to the difference 13 shall be made for the first 4 years of existence of the new 14 district. 15 (2) For a school district which annexes all of the 16 territory of one or more entire other school districts, for 17 the first year during which the change of boundaries 18 attributable to such annexation becomes effective for all 19 purposes as determined under Section 7-9 or 7A-8, the general 20 State aid and supplemental general State aid calculated under 21 this Section shall be computed for the annexing district as 22 constituted after the annexation and for the annexing and 23 each annexed district as constituted prior to the annexation; 24 and if the computation on the basis of the annexing and 25 annexed districts as constituted prior to the annexation is 26 greater, a supplementary payment equal to the difference 27 shall be made for the first 4 years of existence of the 28 annexing school district as constituted upon such annexation. 29 (3) For 2 or more school districts which annex all of 30 the territory of one or more entire other school districts, 31 and for 2 or more community unit districts which result upon 32 the division (pursuant to petition under Section 11A-2) of 33 one or more other unit school districts into 2 or more parts 34 and which together include all of the parts into which such -21- LRB9206774NTsbam 1 other unit school district or districts are so divided, for 2 the first year during which the change of boundaries 3 attributable to such annexation or division becomes effective 4 for all purposes as determined under Section 7-9 or 11A-10, 5 as the case may be, the general State aid and supplemental 6 general State aid calculated under this Section shall be 7 computed for each annexing or resulting district as 8 constituted after the annexation or division and for each 9 annexing and annexed district, or for each resulting and 10 divided district, as constituted prior to the annexation or 11 division; and if the aggregate of the general State aid and 12 supplemental general State aid as so computed for the 13 annexing or resulting districts as constituted after the 14 annexation or division is less than the aggregate of the 15 general State aid and supplemental general State aid as so 16 computed for the annexing and annexed districts, or for the 17 resulting and divided districts, as constituted prior to the 18 annexation or division, then a supplementary payment equal to 19 the difference shall be made and allocated between or among 20 the annexing or resulting districts, as constituted upon such 21 annexation or division, for the first 4 years of their 22 existence. The total difference payment shall be allocated 23 between or among the annexing or resulting districts in the 24 same ratio as the pupil enrollment from that portion of the 25 annexed or divided district or districts which is annexed to 26 or included in each such annexing or resulting district bears 27 to the total pupil enrollment from the entire annexed or 28 divided district or districts, as such pupil enrollment is 29 determined for the school year last ending prior to the date 30 when the change of boundaries attributable to the annexation 31 or division becomes effective for all purposes. The amount 32 of the total difference payment and the amount thereof to be 33 allocated to the annexing or resulting districts shall be 34 computed by the State Board of Education on the basis of -22- LRB9206774NTsbam 1 pupil enrollment and other data which shall be certified to 2 the State Board of Education, on forms which it shall provide 3 for that purpose, by the regional superintendent of schools 4 for each educational service region in which the annexing and 5 annexed districts, or resulting and divided districts are 6 located. 7 (3.5) Claims for financial assistance under this 8 subsection (I) shall not be recomputed except as expressly 9 provided under this Section. 10 (4) Any supplementary payment made under this subsection 11 (I) shall be treated as separate from all other payments made 12 pursuant to this Section. 13 (J) Supplementary Grants in Aid. 14 (1) Notwithstanding any other provisions of this 15 Section, the amount of the aggregate general State aid in 16 combination with supplemental general State aid under this 17 Section for which each school district is eligible 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 1997-98 school year, 22 pursuant to the provisions of that Section as it was then in 23 effect. If a school district qualifies to receive a 24 supplementary payment made under this subsection (J), the 25 amount of the aggregate general State aid in combination with 26 supplemental general State aid under this Section which that 27 district is eligible to receive for each school year shall be 28 no less than the amount of the aggregate general State aid 29 entitlement that was received by the district under Section 30 18-8 (exclusive of amounts received under subsections 5(p) 31 and 5(p-5) of that Section) for the 1997-1998 school year, 32 pursuant to the provisions of that Section as it was then in 33 effect. 34 (2) If, as provided in paragraph (1) of this subsection -23- LRB9206774NTsbam 1 (J), a school district is to receive aggregate general State 2 aid in combination with supplemental general State aid under 3 this Section for the 1998-99 school year and any subsequent 4 school year that in any such school year is less than the 5 amount of the aggregate general State aid entitlement that 6 the district received for the 1997-98 school year, the school 7 district shall also receive, from a separate appropriation 8 made for purposes of this subsection (J), a supplementary 9 payment that is equal to the amount of the difference in the 10 aggregate State aid figures as described in paragraph (1). 11 (3) (Blank). 12 (K) Grants to Laboratory and Alternative Schools. 13 In calculating the amount to be paid to the governing 14 board of a public university that operates a laboratory 15 school under this Section or to any alternative school that 16 is operated by a regional superintendent of schools, the 17 State Board of Education shall require by rule such reporting 18 requirements as it deems necessary. 19 As used in this Section, "laboratory school" means a 20 public school which is created and operated by a public 21 university and approved by the State Board of Education. The 22 governing board of a public university which receives funds 23 from the State Board under this subsection (K) may not 24 increase the number of students enrolled in its laboratory 25 school from a single district, if that district is already 26 sending 50 or more students, except under a mutual agreement 27 between the school board of a student's district of residence 28 and the university which operates the laboratory school. A 29 laboratory school may not have more than 1,000 students, 30 excluding students with disabilities in a special education 31 program. 32 As used in this Section, "alternative school" means a 33 public school which is created and operated by a Regional 34 Superintendent of Schools and approved by the State Board of -24- LRB9206774NTsbam 1 Education. Such alternative schools may offer courses of 2 instruction for which credit is given in regular school 3 programs, courses to prepare students for the high school 4 equivalency testing program or vocational and occupational 5 training. A regional superintendent of schools may contract 6 with a school district or a public community college district 7 to operate an alternative school. An alternative school 8 serving more than one educational service region may be 9 established by the regional superintendents of schools of the 10 affected educational service regions. An alternative school 11 serving more than one educational service region may be 12 operated under such terms as the regional superintendents of 13 schools of those educational service regions may agree. 14 Each laboratory and alternative school shall file, on 15 forms provided by the State Superintendent of Education, an 16 annual State aid claim which states the Average Daily 17 Attendance of the school's students by month. The best 3 18 months' Average Daily Attendance shall be computed for each 19 school. The general State aid entitlement shall be computed 20 by multiplying the applicable Average Daily Attendance by the 21 Foundation Level as determined under this Section. 22 (L) Payments, Additional Grants in Aid and Other 23 Requirements. 24 (1) For a school district operating under the financial 25 supervision of an Authority created under Article 34A, the 26 general State aid otherwise payable to that district under 27 this Section, but not the supplemental general State aid, 28 shall be reduced by an amount equal to the budget for the 29 operations of the Authority as certified by the Authority to 30 the State Board of Education, and an amount equal to such 31 reduction shall be paid to the Authority created for such 32 district for its operating expenses in the manner provided in 33 Section 18-11. The remainder of general State school aid for 34 any such district shall be paid in accordance with Article -25- LRB9206774NTsbam 1 34A when that Article provides for a disposition other than 2 that provided by this Article. 3 (2) (Blank). 4 (3) Summer school. Summer school payments shall be made 5 as provided in Section 18-4.3. 6 (M) Education Funding Advisory Board. 7 The Education Funding Advisory Board, hereinafter in this 8 subsection (M) referred to as the "Board", is hereby created. 9 The Board shall consist of 5 members who are appointed by the 10 Governor, by and with the advice and consent of the Senate. 11 The members appointed shall include representatives of 12 education, business, and the general public. One of the 13 members so appointed shall be designated by the Governor at 14 the time the appointment is made as the chairperson of the 15 Board. The initial members of the Board may be appointed any 16 time after the effective date of this amendatory Act of 1997. 17 The regular term of each member of the Board shall be for 4 18 years from the third Monday of January of the year in which 19 the term of the member's appointment is to commence, except 20 that of the 5 initial members appointed to serve on the 21 Board, the member who is appointed as the chairperson shall 22 serve for a term that commences on the date of his or her 23 appointment and expires on the third Monday of January, 2002, 24 and the remaining 4 members, by lots drawn at the first 25 meeting of the Board that is held after all 5 members are 26 appointed, shall determine 2 of their number to serve for 27 terms that commence on the date of their respective 28 appointments and expire on the third Monday of January, 2001, 29 and 2 of their number to serve for terms that commence on the 30 date of their respective appointments and expire on the third 31 Monday of January, 2000. All members appointed to serve on 32 the Board shall serve until their respective successors are 33 appointed and confirmed. Vacancies shall be filled in the 34 same manner as original appointments. If a vacancy in -26- LRB9206774NTsbam 1 membership occurs at a time when the Senate is not in 2 session, the Governor shall make a temporary appointment 3 until the next meeting of the Senate, when he or she shall 4 appoint, by and with the advice and consent of the Senate, a 5 person to fill that membership for the unexpired term. If 6 the Senate is not in session when the initial appointments 7 are made, those appointments shall be made as in the case of 8 vacancies. 9 The Education Funding Advisory Board shall be deemed 10 established, and the initial members appointed by the 11 Governor to serve as members of the Board shall take office, 12 on the date that the Governor makes his or her appointment of 13 the fifth initial member of the Board, whether those initial 14 members are then serving pursuant to appointment and 15 confirmation or pursuant to temporary appointments that are 16 made by the Governor as in the case of vacancies. 17 The State Board of Education shall provide such staff 18 assistance to the Education Funding Advisory Board as is 19 reasonably required for the proper performance by the Board 20 of its responsibilities. 21 For school years after the 2000-2001 school year, the 22 Education Funding Advisory Board, in consultation with the 23 State Board of Education, shall make recommendations as 24 provided in this subsection (M) to the General Assembly for 25 the foundation level under subdivision (B)(3) of this Section 26 and for the supplemental general State aid grant level under 27 subsection (H) of this Section for districts with high 28 concentrations of children from poverty. The recommended 29 foundation level shall be determined based on a methodology 30 which incorporates the basic education expenditures of 31 low-spending schools exhibiting high academic performance. 32 The Education Funding Advisory Board shall make such 33 recommendations to the General Assembly on January 1 of odd 34 numbered years, beginning January 1, 2001. -27- LRB9206774NTsbam 1 (N) (Blank). 2 (O) References. 3 (1) References in other laws to the various subdivisions 4 of Section 18-8 as that Section existed before its repeal and 5 replacement by this Section 18-8.05 shall be deemed to refer 6 to the corresponding provisions of this Section 18-8.05, to 7 the extent that those references remain applicable. 8 (2) References in other laws to State Chapter 1 funds 9 shall be deemed to refer to the supplemental general State 10 aid provided under subsection (H) of this Section. 11 (Source: P.A. 90-548, eff. 7-1-98; incorporates 90-566; 12 90-653, eff. 7-29-98; 90-654, eff. 7-29-98; 90-655, eff. 13 7-30-98; 90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24, 14 eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99; 91-111, 15 eff. 7-14-99; 91-357, eff. 7-29-99; 91-533, eff. 8-13-99; 16 revised 8-27-99.)".