HB6137ham001 93RD GENERAL ASSEMBLY

Rep. Dave Winters

Filed: 3/31/2004

09300HB6137ham001 LRB093 14907 BDD 48369 a

AMENDMENT TO HOUSE BILL 6137

AMENDMENT NO. ______. Amend House Bill 6137 by replacing everything after the enacting clause with the following:

4		"Section 1. Short title. This Act may be cited as the Local
5		Option Property Tax Reduction Act.

6		Section 5. Definitions. In this Act:
7		"Taxable income" means that portion of the net income of
8		the taxpayer which is allocable and apportionable to the school
9		district under the provisions of this Act and the regulations
10		adopted under this Act.
11		"Net income" means the net income of the taxpayer as
12		defined and as determined and computed for the taxable year
13		under the provisions of the Illinois Income Tax Act.
14		"Taxable year" means the calendar year, or the fiscal year
15		ending in such calendar year, upon the basis of which taxable
16		income is computed under this Act, and also includes a
17		fractional part of a year for which income is earned.
18		"Resident" means an individual that is in the school
19		district for other than a temporary transitory purpose during
20		the taxable year, or who is domiciled in that school district
21		but is absent therefrom for a temporary or transitory purpose
22		during the taxable year. "Resident" does not include a
23		corporation.

1		Section 10. Referendum; imposition of tax; limitations.
2		The school board of each school district, including special
3		charter districts as defined in Section 1-3 of the School Code
4		and school districts organized under Article 34 of that Code,
5		may by proper resolution or shall upon petition of 5% of the
6		number of voters who voted in the school district in the last
7		gubernatorial election cause to be submitted to the voters of
8		the school district at a general or primary election in
9		accordance with the general election law a proposition to
10		authorize an annual local income tax for schools at a rate not
11		to exceed 2%, measured as a percentage of the taxable income of
12		individuals and imposed only in increments of 0.50%, to be
13		imposed on every individual on the privilege of earning or
14		receiving income in or as a resident of the school district.
15		The resolution or petition to submit the proposition to the
16		voters of the district shall be in accordance with the general
17		election law. The proposition as submitted at the referendum
18		shall specify the annual rate at which the tax is proposed to
19		be imposed on individuals and that the taxes collected shall be
20		used to abate the extension in that year of any real property
21		taxes levied by the district for lawful school purposes.

22		Section 15. Apportionment of income. The method of
23		allocating and apportioning income earned in the school
24		district by individuals that earn only a portion of their
25		income in that district shall be established by rules adopted
26		by the Department of Revenue for that purpose. The method so
27		established shall be determined, as near as may be, in
28		accordance with the provisions of Article III of the Illinois
29		Income Tax Act governing the manner in which income and items
30		of deduction are allocated and apportioned to this State with
31		respect to part-year residents and other persons.

32

Section 20. Additional referenda. The school board of a

1		school district may by resolution, or shall upon the petition
2		of 5% of the number of voters who voted in the school district
3		in the last gubernatorial election, cause to be submitted to
4		the voters of that district at a general election in accordance
5		with the general election law any of the following:
6		(i) A proposition to decrease (but only in increments
7		of 0.50%) or to increase (but only in increments of 0.50%)
8		the annual rate for the local income tax for schools
9		imposed under Section 10.
10		(ii) In case authority to impose the local income tax
11		for schools has been rejected or repealed by the voters at
12		a prior referendum, a proposition to authorize or again
13		authorize the local income tax for schools to be so
14		imposed.
15		(iii) In case a proposition to authorize the imposition
16		of or to decrease the rate of the local income tax for
17		schools has been approved by the voters at a prior
18		referendum, a proposition to repeal that local income tax
19		for schools.
20		Any resolution or petition under this Section to submit to
21		the voters of the school district a proposition to increase or
22		decrease the annual rate for the local income tax for schools
23		shall specify the annual rate at which the tax is proposed to
24		be imposed.
25		Referenda under this Section shall be governed by the
26		general election law. If a majority of the votes cast is in
27		favor of the proposition to decrease or increase the rate of or
28		to authorize imposition of the local income tax for schools,
29		the school board shall thereafter, until the authority is
30		revoked in like manner, impose the annual tax as authorized. If
31		a majority of the votes cast is in favor of the proposition to
32		repeal the local income tax for schools, that tax shall not
33		thereafter be imposed unless again authorized as provided in
34		this Section.

1		Section 25. Collection.
2		(a) Any tax authorized under this Act shall be imposed,
3		increased, decreased, or repealed effective at the beginning of
4		the second calendar quarter beginning after certification by
5		the proper election officials of the results of the referendum
6		that authorizes imposing, increasing, decreasing, or repealing
7		the tax. The tax so imposed shall be collected by the
8		Department of Revenue. The certification by the proper election
9		officials of the results of the referendum authorizing the tax
10		and the certification by the school board to the Department of
11		Revenue of the rate of the tax to be imposed under this Act
12		shall constitute the authority of the Department of Revenue to
13		collect the tax. Whenever a proposition to authorize imposition
14		of the local income tax for schools is approved by the voters
15		of any school district as provided in this Act, the county
16		clerk of each county in which that school district is located
17		shall promptly certify the territorial boundaries of the
18		district to the Department of Revenue. Thereafter, the
19		Department shall (i) promptly notify all individual residents
20		of the district who have previously filed a return with respect
21		to the taxes imposed by the Illinois Income Tax Act that the
22		local income tax for schools has been imposed within the
23		district and the manner in which the tax is to be collected by
24		and paid to the Department of Revenue and (ii) publish notice
25		in a newspaper published in the school district, or if there is
26		no such newspaper then in a newspaper published in the county
27		and having circulation in the school district, that the local
28		income tax for schools has been imposed within the district and
29		the manner in which the tax is to be collected by and paid to
30		the Department of Revenue. Any tax imposed under this Act shall
31		be collected by and paid to the Department of Revenue at the
32		same time and in the same manner, with the same withholding and
33		estimated payment requirements and subject to the same

1		assessment and refund procedures, penalties, and interest, as
2		the tax imposed by the Illinois Income Tax Act. Except as
3		provided in subsection (b) of this Section, the Department of
4		Revenue shall forthwith pay over to the State Treasurer, ex
5		officio, as trustee, all moneys received by it under this
6		Section to be deposited into a special account that the State
7		Treasurer and State Comptroller shall establish and maintain
8		for that school district in the Local Option Property Tax
9		Reduction Fund, a special fund that is hereby created in the
10		State treasury, to be held and disbursed by the Treasurer as
11		provided in this Section and Section 30. All interest earned
12		from the investment of any moneys from time to time held in the
13		Local Option Property Tax Reduction Fund and any special
14		accounts established therein shall be retained by the Treasurer
15		to be applied toward the costs incurred by the Department of
16		Revenue in administering and enforcing this Act.
17		(b) The Local Option Property Tax Reduction Refund Fund is
18		hereby created in the State Treasury. The Department of Revenue
19		shall deposit a percentage of the amounts collected from the
20		tax imposed under this Act by any school district into a
21		special account that the State Treasurer and State Comptroller
22		shall establish and maintain within the Local Option Property
23		Tax Reduction Refund Fund for the purpose of paying refunds
24		resulting from overpayment of tax liability under this Act with
25		respect to that school district. The Department of Revenue
26		shall determine the percentage of the amounts collected from
27		the tax imposed under this Act by any school district that is
28		to be deposited into the special account maintained in the
29		Local Option Property Tax Reduction Refund Fund to pay refunds
30		resulting from overpayment of tax liability under this Act with
31		respect to that school district and shall certify that
32		percentage to the Comptroller, all in accordance with rules
33		adopted by the Department of Revenue for purposes of this
34		Section. Money in the special account maintained in the Local

1		Option Property Tax Reduction Refund Fund with respect to any
2		school district shall be expended exclusively for the purpose
3		of paying refunds resulting from overpayment of tax liability
4		under this Act with respect to that school district. The
5		Director of Revenue shall order payment of refunds resulting
6		from overpayment of tax liability under this Act from the
7		special account maintained with respect to a school district in
8		the Local Option Property Tax Reduction Refund Fund only to the
9		extent that amounts collected pursuant to this Act for that
10		school district have been deposited to and retained in that
11		special account. This Section shall constitute an irrevocable
12		and continuing appropriation from the Local Option Property Tax
13		Reduction Refund Fund and the special accounts established and
14		maintained therein for the purpose of paying refunds upon the
15		order of the Director of Revenue in accordance with the
16		provisions of this Section.
17		(c) The Department of Revenue shall promulgate such rules
18		and regulations as may be necessary to implement the provisions
19		of this Act.

20		Section 30. Certification, disbursement, and use of funds.
21		(a) On or before June 15 of each calendar year, or the
22		first following business day if June 15 falls on a Saturday,
23		Sunday, or holiday, the Department of Revenue shall certify to
24		the State Comptroller the disbursement of stated sums of money
25		to each school district in which any tax authorized by this Act
26		has been imposed, levied, and collected during the preceding
27		calendar year. On each certification date, the amount to be
28		certified for disbursement from the separate account
29		maintained for a school district in the Local Option Property
30		Tax Reduction Fund shall be the amount deposited into that
31		special account from the tax collected under this Act for that
32		school district for the preceding calendar year, reduced by an
33		amount equal to 2% of the amount so deposited into that special

1		account to be retained by the Treasurer to be applied toward
2		the costs incurred by the Department of Revenue in
3		administering and enforcing this Act.
4		(b) At the time of each disbursement to a school district,
5		the Department of Revenue shall prepare and certify to the
6		Comptroller the amount retained by the State Treasurer as
7		provided in this Section and the interest earned from the
8		investment of moneys from time to time held in the Local Option
9		Property Tax Reduction Fund and any special accounts
10		established therein as provided in subsection (a) of Section 25
11		to be applied toward the costs incurred by the Department in
12		administering and enforcing this Act, the amount so retained
13		and the interest so earned to be paid into the General Revenue
14		Fund of the State Treasury.
15		(c) Within 10 days after receipt by the Comptroller from
16		the Department of Revenue of the certification of disbursements
17		to the school districts and General Revenue Fund as provided in
18		this Section, the Comptroller shall cause the warrants to be
19		drawn for the respective amounts in accordance with the
20		directions contained in the certification.
21		(d) If for any reason the General Assembly fails to make an
22		appropriation sufficient to pay each school district the full
23		amount required to be disbursed and paid to it by this Section
24		and any other provision of this Act, then this Section shall
25		constitute an irrevocable and continuing appropriation of all
26		amounts necessary for that purpose and the irrevocable and
27		continuing authority for and direction to the Comptroller and
28		Treasurer of the State to make the necessary transfers out of
29		and disbursements from the revenues and funds of the State for
30		that purpose.
31		(e) The school board of each school district that receives
32		a disbursement provided for in this Act shall apply the moneys
33		so disbursed to any funds from which the school board of the
34		school district is authorized to make expenditures by law,

1		provided that (i) the percentage of the amount so disbursed to
2		the school district in any calendar year that is attributable
3		to the required minimum abatement in the extension in that
4		calendar year of the real property taxes levied by the district
5		for educational purposes shall be applied to the educational
6		purposes of the district, and (ii) if any percentage of the
7		amount so disbursed to the school district in any calendar year
8		is attributable to any required additional abatement in the
9		extension in that calendar year of any real property taxes
10		levied by the district for educational or any other lawful
11		school purpose, that percentage of the amount so disbursed
12		shall be applied by the district to the fund created for that
13		purpose.

14		Section 35. Property tax abatement.
15		(a) The extension of real property taxes for a school
16		district within which the local income tax for schools
17		authorized by this Act already has been imposed, levied, and
18		collected shall be abated by the county clerk in which the
19		school district is located in the manner provided by this
20		Section, provided that (i) if any such school district is
21		located in more than one county the amount of real property
22		taxes of the district to be so abated shall be apportioned by
23		the county clerks of those counties based upon the ratio of the
24		aggregate assessed value of the taxable property of the
25		district in each such county and (ii) prior to any abatement
26		under this Section the county clerk shall determine whether the
27		amount of each tax levied by the district for a lawful school
28		purpose and certified for extension is based on a rate at which
29		the district making the certification is authorized by statute
30		or referendum to levy that tax, shall disregard any excess, and
31		shall extend the levy of that tax in accordance with the
32		provisions of Section 18-45 of the Property Tax Code, subject
33		to abatement as provided in this Section.

1		(b) Not later than September 1 of the first calendar year
2		in which the tax authorized by this Act is imposed, levied, and
3		collected within a school district, the Department of Revenue
4		shall certify to the county clerk of each county in which any
5		part of the school district is located the estimated amount of
6		the tax that would have been collected under this Act during
7		the immediately preceding calendar year in that part of the
8		district located in the county had this Act been in effect and
9		had that tax been imposed, levied, and collected within that
10		district during that immediately preceding calendar year at the
11		same annual rate and for the same period of time as that tax is
12		imposed, levied, and collected in the district during the
13		calendar year in which the certification is made.
14		(c) During the calendar year immediately succeeding the
15		calendar year in which the certification under subsection (b)
16		is required to be made, in extending the real property taxes
17		last levied by a school district for educational purposes, the
18		county clerk shall abate that extension of the district's levy
19		for educational purposes by an amount equal to 100% of the
20		estimated amount that was certified to the county clerk by the
21		Department of Revenue under the provisions of subsection (b)
22		during the calendar year immediately preceding the calendar
23		year in which the extension is made. In each subsequent
24		calendar year, in extending the real property taxes levied by
25		the school district for educational purposes during the
26		immediately preceding calendar year, the county clerk shall
27		abate each such extension of the district's levy for
28		educational purposes by an amount equal to 100% of the amount
29		disbursed to the school district under Section 30 during June
30		of the calendar year immediately preceding the calendar year in
31		which the extension and abatement are made.

32		Section 40. Property tax rates. The provisions of this Act
33		for abatement in the extension of the amount of real property

1		taxes levied by school districts do not constitute and shall
2		not be construed to be a limitation on or a reduction in the
3		rate at which any school district now is or hereafter may be
4		authorized by statute or referendum to levy taxes for any
5		lawful school purpose. Notwithstanding any abatement required
6		by Section 35 to be made in any year in any taxes levied by any
7		school district for educational or any other lawful school
8		purpose, for purposes of computing the operating tax rate of
9		the school district under Section 18-8, that abatement shall be
10		disregarded and the rate per cent applicable to the extension
11		of the district's tax for its educational, operations and
12		maintenance, and other school funds, as a component of its
13		operating tax rate under Section 18-8, shall be computed on the
14		basis of the amount actually certified by the district to be
15		levied for those purposes, unreduced by any abatement required
16		by Section 35.

17		Section 45. Penalties. Any person who is subject to this
18		Act and who (i) willfully fails to file a return, (ii)
19		willfully violates any rule or regulation of the Department of
20		Revenue for the administration or enforcement of this Act, or
21		(iii) willfully attempts in any other manner to evade or defeat
22		any tax imposed by this Act or the payment thereof is, in
23		addition to other penalties, guilty of a Class B misdemeanor. A
24		prosecution for any violation of this Act may be commenced
25		within 3 years of the commission of that act.

26		Section 50. Collection of delinquent taxes; distribution.
27		If the Department of Revenue collects delinquent taxes due
28		under the Illinois Income Tax Act or under this Act, that money
29		shall be distributed to the State or the school district in
30		proportion to the amount of the total State income tax
31		liability or local income tax liability in the year that the
32		tax was due.

1		Section 905. The State Finance Act is amended by adding
2		Sections 5.625 and 5.626 as follows:
3		(30 ILCS 105/5.625 new)
4		Sec. 5.625. The Local Option Property Tax Reduction Fund.

5		(30 ILCS 105/5.626 new)
6		Sec. 5.626. The Local Option Property Tax Reduction Refund
7		Fund.

8		Section 910. The Property Tax Code is amended by changing
9		Sections 18-45 and 18-185 as follows:
10		(35 ILCS 200/18-45)
11		Sec. 18-45. Computation of rates. Except as provided below,
12		each county clerk shall estimate and determine the rate per
13		cent upon the equalized assessed valuation for the levy year of
14		the property in the county's taxing districts and special
15		service areas, as established under Article VII of the Illinois
16		Constitution, so that the rate will produce, within the proper
17		divisions of that county, not less than the net amount that
18		will be required by the county board or certified to the county
19		clerk according to law. Prior to extension, the county clerk
20		shall determine the maximum amount of tax authorized to be
21		levied by any statute. If the amount of any tax certified to
22		the county clerk for extension exceeds the maximum, the clerk
23		shall extend only the maximum allowable levy.
24		The county clerk shall exclude from the total equalized
25		assessed valuation, whenever estimating and determining it
26		under this Section and Sections 18-50 through 18-105, the
27		equalized assessed valuation in the percentage which has been
28		agreed to by each taxing district, of any property or portion
29		thereof within an Enterprise Zone upon which an abatement of

1		taxes was made under Section 18-170. However, if a municipality
2		has adopted tax increment financing under Division 74.4 of
3		Article 11 of the Illinois Municipal Code, the county clerk
4		shall estimate and determine rates in accordance with Sections
5		11-74.4-7 through 11-74.4-9 of that Act. Beginning on January
6		1, 1998 and thereafter, the equalized assessed value of all
7		property for the computation of the amount to be extended
8		within a county with 3,000,000 or more inhabitants shall be the
9		sum of (i) the equalized assessed value of such property for
10		the year immediately preceding the levy year as established by
11		the assessment and equalization process for the year
12		immediately prior to the levy year, (ii) the equalized assessed
13		value of any property that qualifies as new property, as
14		defined in Section 18-185, or annexed property, as defined in
15		Section 18-225, for the current levy year, and (iii) any
16		recovered tax increment value, as defined in Section 18-185,
17		for the current levy year, less the equalized assessed value of
18		any property that qualifies as disconnected property, as
19		defined in Section 18-225, for the current levy year.
20		The provisions of this Section and the authority and
21		responsibility of the county clerks hereunder are subject to
22		the provisions of Section 35 of the Local Option Property Tax
23		Reduction Act relative to abatement in the extension of taxes
24		levied by school districts, including special charter
25		districts, in which the tax authorized by that Act is imposed,
26		levied, and collected.
27		(Source: P.A. 90-320, eff. 1-1-98.)
28		(35 ILCS 200/18-185)
29		Sec. 18-185. Short title; definitions. This Division 5 may
30		be cited as the Property Tax Extension Limitation Law. As used
31		in this Division 5:
32		"Consumer Price Index" means the Consumer Price Index for
33		All Urban Consumers for all items published by the United

1		States Department of Labor.
2		"Extension limitation" means (a) the lesser of 5% or the
3		percentage increase in the Consumer Price Index during the
4		12-month calendar year preceding the levy year or (b) the rate
5		of increase approved by voters under Section 18-205.
6		"Affected county" means a county of 3,000,000 or more
7		inhabitants or a county contiguous to a county of 3,000,000 or
8		more inhabitants.
9		"Taxing district" has the same meaning provided in Section
10		1-150, except as otherwise provided in this Section. For the
11		1991 through 1994 levy years only, "taxing district" includes
12		only each non-home rule taxing district having the majority of
13		its 1990 equalized assessed value within any county or counties
14		contiguous to a county with 3,000,000 or more inhabitants.
15		Beginning with the 1995 levy year, "taxing district" includes
16		only each non-home rule taxing district subject to this Law
17		before the 1995 levy year and each non-home rule taxing
18		district not subject to this Law before the 1995 levy year
19		having the majority of its 1994 equalized assessed value in an
20		affected county or counties. Beginning with the levy year in
21		which this Law becomes applicable to a taxing district as
22		provided in Section 18-213, "taxing district" also includes
23		those taxing districts made subject to this Law as provided in
24		Section 18-213.
25		"Aggregate extension" for taxing districts to which this
26		Law applied before the 1995 levy year means the annual
27		corporate extension for the taxing district and those special
28		purpose extensions that are made annually for the taxing
29		district, excluding special purpose extensions: (a) made for
30		the taxing district to pay interest or principal on general
31		obligation bonds that were approved by referendum; (b) made for
32		any taxing district to pay interest or principal on general
33		obligation bonds issued before October 1, 1991; (c) made for
34		any taxing district to pay interest or principal on bonds

1		issued to refund or continue to refund those bonds issued
2		before October 1, 1991; (d) made for any taxing district to pay
3		interest or principal on bonds issued to refund or continue to
4		refund bonds issued after October 1, 1991 that were approved by
5		referendum; (e) made for any taxing district to pay interest or
6		principal on revenue bonds issued before October 1, 1991 for
7		payment of which a property tax levy or the full faith and
8		credit of the unit of local government is pledged; however, a
9		tax for the payment of interest or principal on those bonds
10		shall be made only after the governing body of the unit of
11		local government finds that all other sources for payment are
12		insufficient to make those payments; (f) made for payments
13		under a building commission lease when the lease payments are
14		for the retirement of bonds issued by the commission before
15		October 1, 1991, to pay for the building project; (g) made for
16		payments due under installment contracts entered into before
17		October 1, 1991; (h) made for payments of principal and
18		interest on bonds issued under the Metropolitan Water
19		Reclamation District Act to finance construction projects
20		initiated before October 1, 1991; (i) made for payments of
21		principal and interest on limited bonds, as defined in Section
22		3 of the Local Government Debt Reform Act, in an amount not to
23		exceed the debt service extension base less the amount in items
24		(b), (c), (e), and (h) of this definition for non-referendum
25		obligations, except obligations initially issued pursuant to
26		referendum; (j) made for payments of principal and interest on
27		bonds issued under Section 15 of the Local Government Debt
28		Reform Act; (k) made by a school district that participates in
29		the Special Education District of Lake County, created by
30		special education joint agreement under Section 10-22.31 of the
31		School Code, for payment of the school district's share of the
32		amounts required to be contributed by the Special Education
33		District of Lake County to the Illinois Municipal Retirement
34		Fund under Article 7 of the Illinois Pension Code; the amount

1		of any extension under this item (k) shall be certified by the
2		school district to the county clerk; and (l) made to fund
3		expenses of providing joint recreational programs for the
4		handicapped under Section 5-8 of the Park District Code or
5		Section 11-95-14 of the Illinois Municipal Code.
6		"Aggregate extension" for the taxing districts to which
7		this Law did not apply before the 1995 levy year (except taxing
8		districts subject to this Law in accordance with Section
9		18-213) means the annual corporate extension for the taxing
10		district and those special purpose extensions that are made
11		annually for the taxing district, excluding special purpose
12		extensions: (a) made for the taxing district to pay interest or
13		principal on general obligation bonds that were approved by
14		referendum; (b) made for any taxing district to pay interest or
15		principal on general obligation bonds issued before March 1,
16		1995; (c) made for any taxing district to pay interest or
17		principal on bonds issued to refund or continue to refund those
18		bonds issued before March 1, 1995; (d) made for any taxing
19		district to pay interest or principal on bonds issued to refund
20		or continue to refund bonds issued after March 1, 1995 that
21		were approved by referendum; (e) made for any taxing district
22		to pay interest or principal on revenue bonds issued before
23		March 1, 1995 for payment of which a property tax levy or the
24		full faith and credit of the unit of local government is
25		pledged; however, a tax for the payment of interest or
26		principal on those bonds shall be made only after the governing
27		body of the unit of local government finds that all other
28		sources for payment are insufficient to make those payments;
29		(f) made for payments under a building commission lease when
30		the lease payments are for the retirement of bonds issued by
31		the commission before March 1, 1995 to pay for the building
32		project; (g) made for payments due under installment contracts
33		entered into before March 1, 1995; (h) made for payments of
34		principal and interest on bonds issued under the Metropolitan

1		Water Reclamation District Act to finance construction
2		projects initiated before October 1, 1991; (i) made for
3		payments of principal and interest on limited bonds, as defined
4		in Section 3 of the Local Government Debt Reform Act, in an
5		amount not to exceed the debt service extension base less the
6		amount in items (b), (c), and (e) of this definition for
7		non-referendum obligations, except obligations initially
8		issued pursuant to referendum and bonds described in subsection
9		(h) of this definition; (j) made for payments of principal and
10		interest on bonds issued under Section 15 of the Local
11		Government Debt Reform Act; (k) made for payments of principal
12		and interest on bonds authorized by Public Act 88-503 and
13		issued under Section 20a of the Chicago Park District Act for
14		aquarium or museum projects; (l) made for payments of principal
15		and interest on bonds authorized by Public Act 87-1191 or
16		93-601 this amendatory Act of the 93rd General Assembly and (i)
17		issued pursuant to Section 21.2 of the Cook County Forest
18		Preserve District Act, (ii) issued under Section 42 of the Cook
19		County Forest Preserve District Act for zoological park
20		projects, or (iii) issued under Section 44.1 of the Cook County
21		Forest Preserve District Act for botanical gardens projects;
22		(m) made pursuant to Section 34-53.5 of the School Code,
23		whether levied annually or not; (n) made to fund expenses of
24		providing joint recreational programs for the handicapped
25		under Section 5-8 of the Park District Code or Section 11-95-14
26		of the Illinois Municipal Code; and (o) made by the Chicago
27		Park District for recreational programs for the handicapped
28		under subsection (c) of Section 7.06 of the Chicago Park
29		District Act.
30		"Aggregate extension" for all taxing districts to which
31		this Law applies in accordance with Section 18-213, except for
32		those taxing districts subject to paragraph (2) of subsection
33		(e) of Section 18-213, means the annual corporate extension for
34		the taxing district and those special purpose extensions that

1		are made annually for the taxing district, excluding special
2		purpose extensions: (a) made for the taxing district to pay
3		interest or principal on general obligation bonds that were
4		approved by referendum; (b) made for any taxing district to pay
5		interest or principal on general obligation bonds issued before
6		the date on which the referendum making this Law applicable to
7		the taxing district is held; (c) made for any taxing district
8		to pay interest or principal on bonds issued to refund or
9		continue to refund those bonds issued before the date on which
10		the referendum making this Law applicable to the taxing
11		district is held; (d) made for any taxing district to pay
12		interest or principal on bonds issued to refund or continue to
13		refund bonds issued after the date on which the referendum
14		making this Law applicable to the taxing district is held if
15		the bonds were approved by referendum after the date on which
16		the referendum making this Law applicable to the taxing
17		district is held; (e) made for any taxing district to pay
18		interest or principal on revenue bonds issued before the date
19		on which the referendum making this Law applicable to the
20		taxing district is held for payment of which a property tax
21		levy or the full faith and credit of the unit of local
22		government is pledged; however, a tax for the payment of
23		interest or principal on those bonds shall be made only after
24		the governing body of the unit of local government finds that
25		all other sources for payment are insufficient to make those
26		payments; (f) made for payments under a building commission
27		lease when the lease payments are for the retirement of bonds
28		issued by the commission before the date on which the
29		referendum making this Law applicable to the taxing district is
30		held to pay for the building project; (g) made for payments due
31		under installment contracts entered into before the date on
32		which the referendum making this Law applicable to the taxing
33		district is held; (h) made for payments of principal and
34		interest on limited bonds, as defined in Section 3 of the Local

1		Government Debt Reform Act, in an amount not to exceed the debt
2		service extension base less the amount in items (b), (c), and
3		(e) of this definition for non-referendum obligations, except
4		obligations initially issued pursuant to referendum; (i) made
5		for payments of principal and interest on bonds issued under
6		Section 15 of the Local Government Debt Reform Act; (j) made
7		for a qualified airport authority to pay interest or principal
8		on general obligation bonds issued for the purpose of paying
9		obligations due under, or financing airport facilities
10		required to be acquired, constructed, installed or equipped
11		pursuant to, contracts entered into before March 1, 1996 (but
12		not including any amendments to such a contract taking effect
13		on or after that date); and (k) made to fund expenses of
14		providing joint recreational programs for the handicapped
15		under Section 5-8 of the Park District Code or Section 11-95-14
16		of the Illinois Municipal Code.
17		"Aggregate extension" for all taxing districts to which
18		this Law applies in accordance with paragraph (2) of subsection
19		(e) of Section 18-213 means the annual corporate extension for
20		the taxing district and those special purpose extensions that
21		are made annually for the taxing district, excluding special
22		purpose extensions: (a) made for the taxing district to pay
23		interest or principal on general obligation bonds that were
24		approved by referendum; (b) made for any taxing district to pay
25		interest or principal on general obligation bonds issued before
26		the effective date of this amendatory Act of 1997; (c) made for
27		any taxing district to pay interest or principal on bonds
28		issued to refund or continue to refund those bonds issued
29		before the effective date of this amendatory Act of 1997; (d)
30		made for any taxing district to pay interest or principal on
31		bonds issued to refund or continue to refund bonds issued after
32		the effective date of this amendatory Act of 1997 if the bonds
33		were approved by referendum after the effective date of this
34		amendatory Act of 1997; (e) made for any taxing district to pay

1		interest or principal on revenue bonds issued before the
2		effective date of this amendatory Act of 1997 for payment of
3		which a property tax levy or the full faith and credit of the
4		unit of local government is pledged; however, a tax for the
5		payment of interest or principal on those bonds shall be made
6		only after the governing body of the unit of local government
7		finds that all other sources for payment are insufficient to
8		make those payments; (f) made for payments under a building
9		commission lease when the lease payments are for the retirement
10		of bonds issued by the commission before the effective date of
11		this amendatory Act of 1997 to pay for the building project;
12		(g) made for payments due under installment contracts entered
13		into before the effective date of this amendatory Act of 1997;
14		(h) made for payments of principal and interest on limited
15		bonds, as defined in Section 3 of the Local Government Debt
16		Reform Act, in an amount not to exceed the debt service
17		extension base less the amount in items (b), (c), and (e) of
18		this definition for non-referendum obligations, except
19		obligations initially issued pursuant to referendum; (i) made
20		for payments of principal and interest on bonds issued under
21		Section 15 of the Local Government Debt Reform Act; (j) made
22		for a qualified airport authority to pay interest or principal
23		on general obligation bonds issued for the purpose of paying
24		obligations due under, or financing airport facilities
25		required to be acquired, constructed, installed or equipped
26		pursuant to, contracts entered into before March 1, 1996 (but
27		not including any amendments to such a contract taking effect
28		on or after that date); and (k) made to fund expenses of
29		providing joint recreational programs for the handicapped
30		under Section 5-8 of the Park District Code or Section 11-95-14
31		of the Illinois Municipal Code.
32		"Debt service extension base" means an amount equal to that
33		portion of the extension for a taxing district for the 1994
34		levy year, or for those taxing districts subject to this Law in

1		accordance with Section 18-213, except for those subject to
2		paragraph (2) of subsection (e) of Section 18-213, for the levy
3		year in which the referendum making this Law applicable to the
4		taxing district is held, or for those taxing districts subject
5		to this Law in accordance with paragraph (2) of subsection (e)
6		of Section 18-213 for the 1996 levy year, constituting an
7		extension for payment of principal and interest on bonds issued
8		by the taxing district without referendum, but not including
9		excluded non-referendum bonds. For park districts (i) that were
10		first subject to this Law in 1991 or 1995 and (ii) whose
11		extension for the 1994 levy year for the payment of principal
12		and interest on bonds issued by the park district without
13		referendum (but not including excluded non-referendum bonds)
14		was less than 51% of the amount for the 1991 levy year
15		constituting an extension for payment of principal and interest
16		on bonds issued by the park district without referendum (but
17		not including excluded non-referendum bonds), "debt service
18		extension base" means an amount equal to that portion of the
19		extension for the 1991 levy year constituting an extension for
20		payment of principal and interest on bonds issued by the park
21		district without referendum (but not including excluded
22		non-referendum bonds). The debt service extension base may be
23		established or increased as provided under Section 18-212.
24		"Excluded non-referendum bonds" means (i) bonds authorized by
25		Public Act 88-503 and issued under Section 20a of the Chicago
26		Park District Act for aquarium and museum projects; (ii) bonds
27		issued under Section 15 of the Local Government Debt Reform
28		Act; or (iii) refunding obligations issued to refund or to
29		continue to refund obligations initially issued pursuant to
30		referendum.
31		"Special purpose extensions" include, but are not limited
32		to, extensions for levies made on an annual basis for
33		unemployment and workers' compensation, self-insurance,
34		contributions to pension plans, and extensions made pursuant to

1		Section 6-601 of the Illinois Highway Code for a road
2		district's permanent road fund whether levied annually or not.
3		The extension for a special service area is not included in the
4		aggregate extension.
5		"Aggregate extension base" means the taxing district's
6		last preceding aggregate extension as adjusted under Sections
7		18-215 through 18-230. The "aggregate extension base" shall not
8		be reduced by the amount of any abatement under the Local
9		Option Property Tax Reduction Act.
10		"Levy year" has the same meaning as "year" under Section
11		1-155.
12		"New property" means (i) the assessed value, after final
13		board of review or board of appeals action, of new improvements
14		or additions to existing improvements on any parcel of real
15		property that increase the assessed value of that real property
16		during the levy year multiplied by the equalization factor
17		issued by the Department under Section 17-30, (ii) the assessed
18		value, after final board of review or board of appeals action,
19		of real property not exempt from real estate taxation, which
20		real property was exempt from real estate taxation for any
21		portion of the immediately preceding levy year, multiplied by
22		the equalization factor issued by the Department under Section
23		17-30, and (iii) in counties that classify in accordance with
24		Section 4 of Article IX of the Illinois Constitution, an
25		incentive property's additional assessed value resulting from
26		a scheduled increase in the level of assessment as applied to
27		the first year final board of review market value. In addition,
28		the county clerk in a county containing a population of
29		3,000,000 or more shall include in the 1997 recovered tax
30		increment value for any school district, any recovered tax
31		increment value that was applicable to the 1995 tax year
32		calculations.
33		"Qualified airport authority" means an airport authority
34		organized under the Airport Authorities Act and located in a

1		county bordering on the State of Wisconsin and having a
2		population in excess of 200,000 and not greater than 500,000.
3		"Recovered tax increment value" means, except as otherwise
4		provided in this paragraph, the amount of the current year's
5		equalized assessed value, in the first year after a
6		municipality terminates the designation of an area as a
7		redevelopment project area previously established under the
8		Tax Increment Allocation Development Act in the Illinois
9		Municipal Code, previously established under the Industrial
10		Jobs Recovery Law in the Illinois Municipal Code, or previously
11		established under the Economic Development Area Tax Increment
12		Allocation Act, of each taxable lot, block, tract, or parcel of
13		real property in the redevelopment project area over and above
14		the initial equalized assessed value of each property in the
15		redevelopment project area. For the taxes which are extended
16		for the 1997 levy year, the recovered tax increment value for a
17		non-home rule taxing district that first became subject to this
18		Law for the 1995 levy year because a majority of its 1994
19		equalized assessed value was in an affected county or counties
20		shall be increased if a municipality terminated the designation
21		of an area in 1993 as a redevelopment project area previously
22		established under the Tax Increment Allocation Development Act
23		in the Illinois Municipal Code, previously established under
24		the Industrial Jobs Recovery Law in the Illinois Municipal
25		Code, or previously established under the Economic Development
26		Area Tax Increment Allocation Act, by an amount equal to the
27		1994 equalized assessed value of each taxable lot, block,
28		tract, or parcel of real property in the redevelopment project
29		area over and above the initial equalized assessed value of
30		each property in the redevelopment project area. In the first
31		year after a municipality removes a taxable lot, block, tract,
32		or parcel of real property from a redevelopment project area
33		established under the Tax Increment Allocation Development Act
34		in the Illinois Municipal Code, the Industrial Jobs Recovery

1		Law in the Illinois Municipal Code, or the Economic Development
2		Area Tax Increment Allocation Act, "recovered tax increment
3		value" means the amount of the current year's equalized
4		assessed value of each taxable lot, block, tract, or parcel of
5		real property removed from the redevelopment project area over
6		and above the initial equalized assessed value of that real
7		property before removal from the redevelopment project area.
8		Except as otherwise provided in this Section, "limiting
9		rate" means a fraction the numerator of which is the last
10		preceding aggregate extension base times an amount equal to one
11		plus the extension limitation defined in this Section and the
12		denominator of which is the current year's equalized assessed
13		value of all real property in the territory under the
14		jurisdiction of the taxing district during the prior levy year.
15		For those taxing districts that reduced their aggregate
16		extension for the last preceding levy year, the highest
17		aggregate extension in any of the last 3 preceding levy years
18		shall be used for the purpose of computing the limiting rate.
19		The denominator shall not include new property. The denominator
20		shall not include the recovered tax increment value.
21		(Source: P.A. 92-547, eff. 6-13-02; 93-601, eff. 1-1-04;
22		93-606, eff. 11-18-03; 93-612, eff. 11-18-03; revised
23		12-10-03.)

24		Section 915. The School Code is amended by changing Section
25		18-8.05 as follows:
26		(105 ILCS 5/18-8.05)
27		Sec. 18-8.05. Basis for apportionment of general State
28		financial aid and supplemental general State aid to the common
29		schools for the 1998-1999 and subsequent school years.
30		(A) General Provisions.
31		(1) The provisions of this Section apply to the 1998-1999

1		and subsequent school years. The system of general State
2		financial aid provided for in this Section is designed to
3		assure that, through a combination of State financial aid and
4		required local resources, the financial support provided each
5		pupil in Average Daily Attendance equals or exceeds a
6		prescribed per pupil Foundation Level. This formula approach
7		imputes a level of per pupil Available Local Resources and
8		provides for the basis to calculate a per pupil level of
9		general State financial aid that, when added to Available Local
10		Resources, equals or exceeds the Foundation Level. The amount
11		of per pupil general State financial aid for school districts,
12		in general, varies in inverse relation to Available Local
13		Resources. Per pupil amounts are based upon each school
14		district's Average Daily Attendance as that term is defined in
15		this Section.
16		(2) In addition to general State financial aid, school
17		districts with specified levels or concentrations of pupils
18		from low income households are eligible to receive supplemental
19		general State financial aid grants as provided pursuant to
20		subsection (H). The supplemental State aid grants provided for
21		school districts under subsection (H) shall be appropriated for
22		distribution to school districts as part of the same line item
23		in which the general State financial aid of school districts is
24		appropriated under this Section.
25		(3) To receive financial assistance under this Section,
26		school districts are required to file claims with the State
27		Board of Education, subject to the following requirements:
28		(a) Any school district which fails for any given
29		school year to maintain school as required by law, or to
30		maintain a recognized school is not eligible to file for
31		such school year any claim upon the Common School Fund. In
32		case of nonrecognition of one or more attendance centers in
33		a school district otherwise operating recognized schools,
34		the claim of the district shall be reduced in the

1		proportion which the Average Daily Attendance in the
2		attendance center or centers bear to the Average Daily
3		Attendance in the school district. A "recognized school"
4		means any public school which meets the standards as
5		established for recognition by the State Board of
6		Education. A school district or attendance center not
7		having recognition status at the end of a school term is
8		entitled to receive State aid payments due upon a legal
9		claim which was filed while it was recognized.
10		(b) School district claims filed under this Section are
11		subject to Sections 18-9, 18-10, and 18-12, except as
12		otherwise provided in this Section.
13		(c) If a school district operates a full year school
14		under Section 10-19.1, the general State aid to the school
15		district shall be determined by the State Board of
16		Education in accordance with this Section as near as may be
17		applicable.
18		(d) (Blank).
19		(4) Except as provided in subsections (H) and (L), the
20		board of any district receiving any of the grants provided for
21		in this Section may apply those funds to any fund so received
22		for which that board is authorized to make expenditures by law.
23		School districts are not required to exert a minimum
24		Operating Tax Rate in order to qualify for assistance under
25		this Section.
26		(5) As used in this Section the following terms, when
27		capitalized, shall have the meaning ascribed herein:
28		(a) "Average Daily Attendance": A count of pupil
29		attendance in school, averaged as provided for in
30		subsection (C) and utilized in deriving per pupil financial
31		support levels.
32		(b) "Available Local Resources": A computation of
33		local financial support, calculated on the basis of Average
34		Daily Attendance and derived as provided pursuant to

1		subsection (D).
2		(c) "Corporate Personal Property Replacement Taxes":
3		Funds paid to local school districts pursuant to "An Act in
4		relation to the abolition of ad valorem personal property
5		tax and the replacement of revenues lost thereby, and
6		amending and repealing certain Acts and parts of Acts in
7		connection therewith", certified August 14, 1979, as
8		amended (Public Act 81-1st S.S.-1).
9		(d) "Foundation Level": A prescribed level of per pupil
10		financial support as provided for in subsection (B).
11		(e) "Operating Tax Rate": All school district property
12		taxes extended for all purposes, except Bond and Interest,
13		Summer School, Rent, Capital Improvement, and Vocational
14		Education Building purposes. In addition, in calculating
15		the operating tax rate of any school district for purposes
16		of this Section, any abatement required by Section 35 of
17		the Local Option Property Tax Reduction Act in the
18		extension of any tax levied by the school district shall be
19		disregarded and the rate per cent applicable to the
20		extension of the district's tax for its educational,
21		operations and maintenance, and other school funds, as a
22		component of its operating tax rate, shall be computed on
23		the basis of the amount actually certified by the district
24		to be levied for those purposes, unreduced by any abatement
25		required under Section 35 of the Local Option Property Tax
26		Reduction Act.
27		(6) Notwithstanding any provision of the Local Option
28		Property Tax Reduction Act, the adoption or failure to adopt a
29		local income tax for schools and any disbursements of funds or
30		property tax abatements resulting from the adoption and
31		imposition of a local income tax for schools by one or more
32		school districts under the Local Option Property Tax Reduction
33		Act shall not affect the computation or distribution of State
34		aid for any school district. All computations of State aid and

1		all other distributions of State funds to school districts
2		shall proceed without regard to changes in school funding
3		provided in the Local Option Property Tax Reduction Act.
4		(B) Foundation Level.
5		(1) The Foundation Level is a figure established by the
6		State representing the minimum level of per pupil financial
7		support that should be available to provide for the basic
8		education of each pupil in Average Daily Attendance. As set
9		forth in this Section, each school district is assumed to exert
10		a sufficient local taxing effort such that, in combination with
11		the aggregate of general State financial aid provided the
12		district, an aggregate of State and local resources are
13		available to meet the basic education needs of pupils in the
14		district.
15		(2) For the 1998-1999 school year, the Foundation Level of
16		support is $4,225. For the 1999-2000 school year, the
17		Foundation Level of support is $4,325. For the 2000-2001 school
18		year, the Foundation Level of support is $4,425.
19		(3) For the 2001-2002 school year and 2002-2003 school
20		year, the Foundation Level of support is $4,560.
21		(4) For the 2003-2004 school year and each school year
22		thereafter, the Foundation Level of support is $4,810 or such
23		greater amount as may be established by law by the General
24		Assembly.
25		(C) Average Daily Attendance.
26		(1) For purposes of calculating general State aid pursuant
27		to subsection (E), an Average Daily Attendance figure shall be
28		utilized. The Average Daily Attendance figure for formula
29		calculation purposes shall be the monthly average of the actual
30		number of pupils in attendance of each school district, as
31		further averaged for the best 3 months of pupil attendance for
32		each school district. In compiling the figures for the number

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

1		districts maintaining grades kindergarten through 8, local
2		property tax revenues per pupil shall be calculated as the
3		product of the applicable equalized assessed valuation for the
4		district multiplied by 2.30%, and divided by the district's
5		Average Daily Attendance figure. For school districts
6		maintaining grades 9 through 12, local property tax revenues
7		per pupil shall be the applicable equalized assessed valuation
8		of the district multiplied by 1.05%, and divided by the
9		district's Average Daily Attendance figure.
10		(4) The Corporate Personal Property Replacement Taxes paid
11		to each school district during the calendar year 2 years before
12		the calendar year in which a school year begins, divided by the
13		Average Daily Attendance figure for that district, shall be
14		added to the local property tax revenues per pupil as derived
15		by the application of the immediately preceding paragraph (3).
16		The sum of these per pupil figures for each school district
17		shall constitute Available Local Resources as that term is
18		utilized in subsection (E) in the calculation of general State
19		aid.
20		(E) Computation of General State Aid.
21		(1) For each school year, the amount of general State aid
22		allotted to a school district shall be computed by the State
23		Board of Education as provided in this subsection.
24		(2) For any school district for which Available Local
25		Resources per pupil is less than the product of 0.93 times the
26		Foundation Level, general State aid for that district shall be
27		calculated as an amount equal to the Foundation Level minus
28		Available Local Resources, multiplied by the Average Daily
29		Attendance of the school district.
30		(3) For any school district for which Available Local
31		Resources per pupil is equal to or greater than the product of
32		0.93 times the Foundation Level and less than the product of
33		1.75 times the Foundation Level, the general State aid per

1		pupil shall be a decimal proportion of the Foundation Level
2		derived using a linear algorithm. Under this linear algorithm,
3		the calculated general State aid per pupil shall decline in
4		direct linear fashion from 0.07 times the Foundation Level for
5		a school district with Available Local Resources equal to the
6		product of 0.93 times the Foundation Level, to 0.05 times the
7		Foundation Level for a school district with Available Local
8		Resources equal to the product of 1.75 times the Foundation
9		Level. The allocation of general State aid for school districts
10		subject to this paragraph 3 shall be the calculated general
11		State aid per pupil figure multiplied by the Average Daily
12		Attendance of the school district.
13		(4) For any school district for which Available Local
14		Resources per pupil equals or exceeds the product of 1.75 times
15		the Foundation Level, the general State aid for the school
16		district shall be calculated as the product of $218 multiplied
17		by the Average Daily Attendance of the school district.
18		(5) The amount of general State aid allocated to a school
19		district for the 1999-2000 school year meeting the requirements
20		set forth in paragraph (4) of subsection (G) shall be increased
21		by an amount equal to the general State aid that would have
22		been received by the district for the 1998-1999 school year by
23		utilizing the Extension Limitation Equalized Assessed
24		Valuation as calculated in paragraph (4) of subsection (G) less
25		the general State aid allotted for the 1998-1999 school year.
26		This amount shall be deemed a one time increase, and shall not
27		affect any future general State 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 by
31		the State Board of Education, attendance figures for the school
32		year that began in the preceding calendar year. The attendance
33		information so transmitted shall identify the average daily

1		attendance figures for each month of the school year. Beginning
2		with the general State aid claim form for the 2002-2003 school
3		year, districts shall calculate Average Daily Attendance as
4		provided in subdivisions (a), (b), and (c) of this paragraph
5		(1).
6		(a) In districts that do not hold year-round classes,
7		days of attendance in August shall be added to the month of
8		September and any days of attendance in June shall be added
9		to the month of May.
10		(b) In districts in which all buildings hold year-round
11		classes, days of attendance in July and August shall be
12		added to the month of September and any days of attendance
13		in June shall be added to the month of May.
14		(c) In districts in which some buildings, but not all,
15		hold year-round classes, for the non-year-round buildings,
16		days of attendance in August shall be added to the month of
17		September and any days of attendance in June shall be added
18		to the month of May. The average daily attendance for the
19		year-round buildings shall be computed as provided in
20		subdivision (b) of this paragraph (1). To calculate the
21		Average Daily Attendance for the district, the average
22		daily attendance for the year-round buildings shall be
23		multiplied by the days in session for the non-year-round
24		buildings for each month and added to the monthly
25		attendance of the non-year-round buildings.
26		Except as otherwise provided in this Section, days of
27		attendance by pupils shall be counted only for sessions of not
28		less than 5 clock hours of school work per day under direct
29		supervision of: (i) teachers, or (ii) non-teaching personnel or
30		volunteer personnel when engaging in non-teaching duties and
31		supervising in those instances specified in subsection (a) of
32		Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
33		of legal school age and in kindergarten and grades 1 through
34		12.

1		Days of attendance by tuition pupils shall be accredited
2		only to the districts that pay the tuition to a recognized
3		school.
4		(2) Days of attendance by pupils of less than 5 clock hours
5		of school shall be subject to the following provisions in the
6		compilation of Average Daily Attendance.
7		(a) Pupils regularly enrolled in a public school for
8		only a part of the school day may be counted on the basis
9		of 1/6 day for every class hour of instruction of 40
10		minutes or more attended pursuant to such enrollment,
11		unless a pupil is enrolled in a block-schedule format of 80
12		minutes or more of instruction, in which case the pupil may
13		be counted on the basis of the proportion of minutes of
14		school work completed each day to the minimum number of
15		minutes that school work is required to be held that day.
16		(b) Days of attendance may be less than 5 clock hours
17		on the opening and closing of the school term, and upon the
18		first day of pupil attendance, if preceded by a day or days
19		utilized as an institute or teachers' workshop.
20		(c) A session of 4 or more clock hours may be counted
21		as a day of attendance upon certification by the regional
22		superintendent, and approved by the State Superintendent
23		of Education to the extent that the district has been
24		forced to use daily multiple sessions.
25		(d) A session of 3 or more clock hours may be counted
26		as a day of attendance (1) when the remainder of the school
27		day or at least 2 hours in the evening of that day is
28		utilized for an in-service training program for teachers,
29		up to a maximum of 5 days per school year of which a
30		maximum of 4 days of such 5 days may be used for
31		parent-teacher conferences, provided a district conducts
32		an in-service training program for teachers which has been
33		approved by the State Superintendent of Education; or, in
34		lieu of 4 such days, 2 full days may be used, in which

1		event each such day may be counted as a day of attendance;
2		and (2) when days in addition to those provided in item (1)
3		are scheduled by a school pursuant to its school
4		improvement plan adopted under Article 34 or its revised or
5		amended school improvement plan adopted under Article 2,
6		provided that (i) such sessions of 3 or more clock hours
7		are scheduled to occur at regular intervals, (ii) the
8		remainder of the school days in which such sessions occur
9		are utilized for in-service training programs or other
10		staff development activities for teachers, and (iii) a
11		sufficient number of minutes of school work under the
12		direct supervision of teachers are added to the school days
13		between such regularly scheduled sessions to accumulate
14		not less than the number of minutes by which such sessions
15		of 3 or more clock hours fall short of 5 clock hours. Any
16		full days used for the purposes of this paragraph shall not
17		be considered for computing average daily attendance. Days
18		scheduled for in-service training programs, staff
19		development activities, or parent-teacher conferences may
20		be scheduled separately for different grade levels and
21		different attendance centers of the district.
22		(e) A session of not less than one clock hour of
23		teaching hospitalized or homebound pupils on-site or by
24		telephone to the classroom may be counted as 1/2 day of
25		attendance, however these pupils must receive 4 or more
26		clock hours of instruction to be counted for a full day of
27		attendance.
28		(f) A session of at least 4 clock hours may be counted
29		as a day of attendance for first grade pupils, and pupils
30		in full day kindergartens, and a session of 2 or more hours
31		may be counted as 1/2 day of attendance by pupils in
32		kindergartens which provide only 1/2 day of attendance.
33		(g) For children with disabilities who are below the
34		age of 6 years and who cannot attend 2 or more clock hours

1		because of their disability or immaturity, a session of not
2		less than one clock hour may be counted as 1/2 day of
3		attendance; however for such children whose educational
4		needs so require a session of 4 or more clock hours may be
5		counted as a full day of attendance.
6		(h) A recognized kindergarten which provides for only
7		1/2 day of attendance by each pupil shall not have more
8		than 1/2 day of attendance counted in any one day. However,
9		kindergartens may count 2 1/2 days of attendance in any 5
10		consecutive school days. When a pupil attends such a
11		kindergarten for 2 half days on any one school day, the
12		pupil shall have the following day as a day absent from
13		school, unless the school district obtains permission in
14		writing from the State Superintendent of Education.
15		Attendance at kindergartens which provide for a full day of
16		attendance by each pupil shall be counted the same as
17		attendance by first grade pupils. Only the first year of
18		attendance in one kindergarten shall be counted, except in
19		case of children who entered the kindergarten in their
20		fifth year whose educational development requires a second
21		year of kindergarten as determined under the rules and
22		regulations of the State Board of Education.
23		(G) Equalized Assessed Valuation Data.
24		(1) For purposes of the calculation of Available Local
25		Resources required pursuant to subsection (D), the State Board
26		of Education shall secure from the Department of Revenue the
27		value as equalized or assessed by the Department of Revenue of
28		all taxable property of every school district, together with
29		(i) the applicable tax rate used in extending taxes for the
30		funds of the district as of September 30 of the previous year
31		and (ii) the limiting rate for all school districts subject to
32		property tax extension limitations as imposed under the
33		Property Tax Extension Limitation Law.

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) shall
5		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 district
8		within a redevelopment project area in respect to which a
9		municipality has adopted tax increment allocation
10		financing pursuant to the Tax Increment Allocation
11		Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
12		of the Illinois Municipal Code or the Industrial Jobs
13		Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
14		Illinois Municipal Code, no part of the current equalized
15		assessed valuation of real property located in any such
16		project area which is attributable to an increase above the
17		total initial equalized assessed valuation of such
18		property shall be used as part of the equalized assessed
19		valuation of the district, until such time as all
20		redevelopment project costs have been paid, as provided in
21		Section 11-74.4-8 of the Tax Increment Allocation
22		Redevelopment Act or in Section 11-74.6-35 of the
23		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 be
27		used until such time as all redevelopment project costs
28		have been paid.
29		(b) The real property equalized assessed valuation for
30		a school district shall be adjusted by subtracting from the
31		real property value as equalized or assessed by the
32		Department of Revenue for the district an amount computed
33		by dividing the amount of any abatement of taxes under
34		Section 18-170 of the Property Tax Code by 3.00% for a

1		district maintaining grades kindergarten through 12, by
2		2.30% for a district maintaining grades kindergarten
3		through 8, or by 1.05% for a district maintaining grades 9
4		through 12 and adjusted by an amount computed by dividing
5		the amount of any abatement of taxes under subsection (a)
6		of Section 18-165 of the Property Tax Code by the same
7		percentage rates for district type as specified in this
8		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 terms
16		shall have the following meanings:
17		"Budget Year": The school year for which general State
18		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 aid.
21		"Preceding Tax Year": The property tax levy year
22		immediately preceding the Base Tax Year.
23		"Base Tax Year's Tax Extension": The product of the
24		equalized assessed valuation utilized by the County Clerk
25		in the Base Tax Year multiplied by the limiting rate as
26		calculated by the County Clerk and defined in the Property
27		Tax Extension Limitation Law.
28		"Preceding Tax Year's Tax Extension": The product of
29		the equalized assessed valuation utilized by the County
30		Clerk in the Preceding Tax Year multiplied by the Operating
31		Tax Rate as defined in subsection (A).
32		"Extension Limitation Ratio": A numerical ratio,
33		certified by the County Clerk, in which the numerator is
34		the Base Tax Year's Tax Extension and the denominator is

1		the Preceding Tax Year's Tax Extension.
2		"Operating Tax Rate": The operating tax rate as defined
3		in subsection (A).
4		If a school district is subject to property tax extension
5		limitations as imposed under the Property Tax Extension
6		Limitation Law, the State Board of Education shall calculate
7		the Extension Limitation Equalized Assessed Valuation of that
8		district. For the 1999-2000 school year, the Extension
9		Limitation Equalized Assessed Valuation of a school district as
10		calculated by the State Board of Education shall be equal to
11		the product of the district's 1996 Equalized Assessed Valuation
12		and the district's Extension Limitation Ratio. For the
13		2000-2001 school year and each school year thereafter, the
14		Extension Limitation Equalized Assessed Valuation of a school
15		district as calculated by the State Board of Education shall be
16		equal to the product of the Equalized Assessed Valuation last
17		used in the calculation of general State aid and the district's
18		Extension Limitation Ratio. If the Extension Limitation
19		Equalized Assessed Valuation of a school district as calculated
20		under this subsection (G)(3) is less than the district's
21		equalized assessed valuation as calculated pursuant to
22		subsections (G)(1) and (G)(2), then for purposes of calculating
23		the district's general State aid for the Budget Year pursuant
24		to subsection (E), that Extension Limitation Equalized
25		Assessed Valuation shall be utilized to calculate the
26		district's Available Local Resources under subsection (D).
27		(4) For the purposes of calculating general State aid for
28		the 1999-2000 school year only, if a school district
29		experienced a triennial reassessment on the equalized assessed
30		valuation used in calculating its general State financial aid
31		apportionment for the 1998-1999 school year, the State Board of
32		Education shall calculate the Extension Limitation Equalized
33		Assessed Valuation that would have been used to calculate the
34		district's 1998-1999 general State aid. This amount shall equal

1		the product of the equalized assessed valuation used to
2		calculate general State aid for the 1997-1998 school year and
3		the district's Extension Limitation Ratio. If the Extension
4		Limitation Equalized Assessed Valuation of the school district
5		as calculated under this paragraph (4) is less than the
6		district's equalized assessed valuation utilized in
7		calculating the district's 1998-1999 general State aid
8		allocation, then for purposes of calculating the district's
9		general State aid pursuant to paragraph (5) of subsection (E),
10		that Extension Limitation Equalized Assessed Valuation shall
11		be utilized to calculate the district's Available Local
12		Resources.
13		(5) For school districts having a majority of their
14		equalized assessed valuation in any county except Cook, DuPage,
15		Kane, Lake, McHenry, or Will, if the amount of general State
16		aid allocated to the school district for the 1999-2000 school
17		year under the provisions of subsection (E), (H), and (J) of
18		this Section is less than the amount of general State aid
19		allocated to the district for the 1998-1999 school year under
20		these subsections, then the general State aid of the district
21		for the 1999-2000 school year only shall be increased by the
22		difference between these amounts. The total payments made under
23		this paragraph (5) shall not exceed $14,000,000. Claims shall
24		be prorated if they exceed $14,000,000.
25		(H) Supplemental General State Aid.
26		(1) In addition to the general State aid a school district
27		is allotted pursuant to subsection (E), qualifying school
28		districts shall receive a grant, paid in conjunction with a
29		district's payments of general State aid, for supplemental
30		general State aid based upon the concentration level of
31		children from low-income households within the school
32		district. Supplemental State aid grants provided for school
33		districts under this subsection shall be appropriated for

1		distribution to school districts as part of the same line item
2		in which the general State financial aid of school districts is
3		appropriated under this Section. If the appropriation in any
4		fiscal year for general State aid and supplemental general
5		State aid is insufficient to pay the amounts required under the
6		general State aid and supplemental general State aid
7		calculations, then the State Board of Education shall ensure
8		that each school district receives the full amount due for
9		general State aid and the remainder of the appropriation shall
10		be used for supplemental general State aid, which the State
11		Board of Education shall calculate and pay to eligible
12		districts on a prorated basis.
13		(1.5) This paragraph (1.5) applies only to those school
14		years preceding the 2003-2004 school year. For purposes of this
15		subsection (H), the term "Low-Income Concentration Level"
16		shall be the low-income eligible pupil count from the most
17		recently available federal census divided by the Average Daily
18		Attendance of the school district. If, however, (i) the
19		percentage decrease from the 2 most recent federal censuses in
20		the low-income eligible pupil count of a high school district
21		with fewer than 400 students exceeds by 75% or more the
22		percentage change in the total low-income eligible pupil count
23		of contiguous elementary school districts, whose boundaries
24		are coterminous with the high school district, or (ii) a high
25		school district within 2 counties and serving 5 elementary
26		school districts, whose boundaries are coterminous with the
27		high school district, has a percentage decrease from the 2 most
28		recent federal censuses in the low-income eligible pupil count
29		and there is a percentage increase in the total low-income
30		eligible pupil count of a majority of the elementary school
31		districts in excess of 50% from the 2 most recent federal
32		censuses, then the high school district's low-income eligible
33		pupil count from the earlier federal census shall be the number
34		used as the low-income eligible pupil count for the high school

1		district, for purposes of this subsection (H). The changes made
2		to this paragraph (1) by Public Act 92-28 shall apply to
3		supplemental general State aid grants for school years
4		preceding the 2003-2004 school year that are paid in fiscal
5		year 1999 or thereafter and to any State aid payments made in
6		fiscal year 1994 through fiscal year 1998 pursuant to
7		subsection 1(n) of Section 18-8 of this Code (which was
8		repealed on July 1, 1998), and any high school district that is
9		affected by Public Act 92-28 is entitled to a recomputation of
10		its supplemental general State aid grant or State aid paid in
11		any of those fiscal years. This recomputation shall not be
12		affected by any other funding.
13		(1.10) This paragraph (1.10) applies to the 2003-2004
14		school year and each school year thereafter. For purposes of
15		this subsection (H), the term "Low-Income Concentration Level"
16		shall, for each fiscal year, be the low-income eligible pupil
17		count as of July 1 of the immediately preceding fiscal year (as
18		determined by the Department of Human Services based on the
19		number of pupils who are eligible for at least one of the
20		following low income programs: Medicaid, KidCare, TANF, or Food
21		Stamps, excluding pupils who are eligible for services provided
22		by the Department of Children and Family Services, averaged
23		over the 2 immediately preceding fiscal years for fiscal year
24		2004 and over the 3 immediately preceding fiscal years for each
25		fiscal year thereafter) divided by the Average Daily Attendance
26		of the school district.
27		(2) Supplemental general State aid pursuant to this
28		subsection (H) shall be provided as follows for the 1998-1999,
29		1999-2000, and 2000-2001 school years only:
30		(a) For any school district with a Low Income
31		Concentration Level of at least 20% and less than 35%, the
32		grant for any school year shall be $800 multiplied by the
33		low income eligible pupil count.
34		(b) For any school district with a Low Income

1		Concentration Level of at least 35% and less than 50%, the
2		grant for the 1998-1999 school year shall be $1,100
3		multiplied by the low income eligible pupil count.
4		(c) For any school district with a Low Income
5		Concentration Level of at least 50% and less than 60%, the
6		grant for the 1998-99 school year shall be $1,500
7		multiplied by the low income eligible pupil count.
8		(d) For any school district with a Low Income
9		Concentration Level of 60% or more, the grant for the
10		1998-99 school year shall be $1,900 multiplied by the low
11		income eligible pupil count.
12		(e) For the 1999-2000 school year, the per pupil amount
13		specified in subparagraphs (b), (c), and (d) immediately
14		above shall be increased to $1,243, $1,600, and $2,000,
15		respectively.
16		(f) For the 2000-2001 school year, the per pupil
17		amounts specified in subparagraphs (b), (c), and (d)
18		immediately above shall be $1,273, $1,640, and $2,050,
19		respectively.
20		(2.5) Supplemental general State aid pursuant to this
21		subsection (H) shall be provided as follows for the 2002-2003
22		school year:
23		(a) For any school district with a Low Income
24		Concentration Level of less than 10%, the grant for each
25		school year shall be $355 multiplied by the low income
26		eligible pupil count.
27		(b) For any school district with a Low Income
28		Concentration Level of at least 10% and less than 20%, the
29		grant for each school year shall be $675 multiplied by the
30		low income eligible pupil count.
31		(c) For any school district with a Low Income
32		Concentration Level of at least 20% and less than 35%, the
33		grant for each school year shall be $1,330 multiplied by
34		the low income eligible pupil count.

1		(d) For any school district with a Low Income
2		Concentration Level of at least 35% and less than 50%, the
3		grant for each school year shall be $1,362 multiplied by
4		the low income eligible pupil count.
5		(e) For any school district with a Low Income
6		Concentration Level of at least 50% and less than 60%, the
7		grant for each school year shall be $1,680 multiplied by
8		the low income eligible pupil count.
9		(f) For any school district with a Low Income
10		Concentration Level of 60% or more, the grant for each
11		school year shall be $2,080 multiplied by the low income
12		eligible pupil count.
13		(2.10) Except as otherwise provided, supplemental general
14		State aid pursuant to this subsection (H) shall be provided as
15		follows for the 2003-2004 school year and each school year
16		thereafter:
17		(a) For any school district with a Low Income
18		Concentration Level of 15% or less, the grant for each
19		school year shall be $355 multiplied by the low income
20		eligible pupil count.
21		(b) For any school district with a Low Income
22		Concentration Level greater than 15%, the grant for each
23		school year shall be $294.25 added to the product of $2,700
24		and the square of the Low Income Concentration Level, all
25		multiplied by the low income eligible pupil count.
26		For the 2003-2004 school year only, the grant shall be no
27		less than the grant for the 2002-2003 school year. For the
28		2004-2005 school year only, the grant shall be no less than the
29		grant for the 2002-2003 school year multiplied by 0.66. For the
30		2005-2006 school year only, the grant shall be no less than the
31		grant for the 2002-2003 school year multiplied by 0.33.
32		For the 2003-2004 school year only, the grant shall be no
33		greater than the grant received during the 2002-2003 school
34		year added to the product of 0.25 multiplied by the difference

1		between the grant amount calculated under subsection (a) or (b)
2		of this paragraph (2.10), whichever is applicable, and the
3		grant received during the 2002-2003 school year. For the
4		2004-2005 school year only, the grant shall be no greater than
5		the grant received during the 2002-2003 school year added to
6		the product of 0.50 multiplied by the difference between the
7		grant amount calculated under subsection (a) or (b) of this
8		paragraph (2.10), whichever is applicable, and the grant
9		received during the 2002-2003 school year. For the 2005-2006
10		school year only, the grant shall be no greater than the grant
11		received during the 2002-2003 school year added to the product
12		of 0.75 multiplied by the difference between the grant amount
13		calculated under subsection (a) or (b) of this paragraph
14		(2.10), whichever is applicable, and the grant received during
15		the 2002-2003 school year.
16		(3) School districts with an Average Daily Attendance of
17		more than 1,000 and less than 50,000 that qualify for
18		supplemental general State aid pursuant to this subsection
19		shall submit a plan to the State Board of Education prior to
20		October 30 of each year for the use of the funds resulting from
21		this grant of supplemental general State aid for the
22		improvement of instruction in which priority is given to
23		meeting the education needs of disadvantaged children. Such
24		plan shall be submitted in accordance with rules and
25		regulations promulgated by the State Board of Education.
26		(4) School districts with an Average Daily Attendance of
27		50,000 or more that qualify for supplemental general State aid
28		pursuant to this subsection shall be required to distribute
29		from funds available pursuant to this Section, no less than
30		$261,000,000 in accordance with the following requirements:
31		(a) The required amounts shall be distributed to the
32		attendance centers within the district in proportion to the
33		number of pupils enrolled at each attendance center who are
34		eligible to receive free or reduced-price lunches or

1		breakfasts under the federal Child Nutrition Act of 1966
2		and under the National School Lunch Act during the
3		immediately preceding school year.
4		(b) The distribution of these portions of supplemental
5		and general State aid among attendance centers according to
6		these requirements shall not be compensated for or
7		contravened by adjustments of the total of other funds
8		appropriated to any attendance centers, and the Board of
9		Education shall utilize funding from one or several sources
10		in order to fully implement this provision annually prior
11		to the opening of school.
12		(c) Each attendance center shall be provided by the
13		school district a distribution of noncategorical funds and
14		other categorical funds to which an attendance center is
15		entitled under law in order that the general State aid and
16		supplemental general State aid provided by application of
17		this subsection supplements rather than supplants the
18		noncategorical funds and other categorical funds provided
19		by the school district to the attendance centers.
20		(d) Any funds made available under this subsection that
21		by reason of the provisions of this subsection are not
22		required to be allocated and provided to attendance centers
23		may be used and appropriated by the board of the district
24		for any lawful school purpose.
25		(e) Funds received by an attendance center pursuant to
26		this subsection shall be used by the attendance center at
27		the discretion of the principal and local school council
28		for programs to improve educational opportunities at
29		qualifying schools through the following programs and
30		services: early childhood education, reduced class size or
31		improved adult to student classroom ratio, enrichment
32		programs, remedial assistance, attendance improvement, and
33		other educationally beneficial expenditures which
34		supplement the regular and basic programs as determined by

1		the State Board of Education. Funds provided shall not be
2		expended for any political or lobbying purposes as defined
3		by board rule.
4		(f) Each district subject to the provisions of this
5		subdivision (H)(4) shall submit an acceptable plan to meet
6		the educational needs of disadvantaged children, in
7		compliance with the requirements of this paragraph, to the
8		State Board of Education prior to July 15 of each year.
9		This plan shall be consistent with the decisions of local
10		school councils concerning the school expenditure plans
11		developed in accordance with part 4 of Section 34-2.3. The
12		State Board shall approve or reject the plan within 60 days
13		after its submission. If the plan is rejected, the district
14		shall give written notice of intent to modify the plan
15		within 15 days of the notification of rejection and then
16		submit a modified plan within 30 days after the date of the
17		written notice of intent to modify. Districts may amend
18		approved plans pursuant to rules promulgated by the State
19		Board of Education.
20		Upon notification by the State Board of Education that
21		the district has not submitted a plan prior to July 15 or a
22		modified plan within the time period specified herein, the
23		State aid funds affected by that plan or modified plan
24		shall be withheld by the State Board of Education until a
25		plan or modified plan is submitted.
26		If the district fails to distribute State aid to
27		attendance centers in accordance with an approved plan, the
28		plan for the following year shall allocate funds, in
29		addition to the funds otherwise required by this
30		subsection, to those attendance centers which were
31		underfunded during the previous year in amounts equal to
32		such underfunding.
33		For purposes of determining compliance with this
34		subsection in relation to the requirements of attendance

1		center funding, each district subject to the provisions of
2		this subsection shall submit as a separate document by
3		December 1 of each year a report of expenditure data for
4		the prior year in addition to any modification of its
5		current plan. If it is determined that there has been a
6		failure to comply with the expenditure provisions of this
7		subsection regarding contravention or supplanting, the
8		State Superintendent of Education shall, within 60 days of
9		receipt of the report, notify the district and any affected
10		local school council. The district shall within 45 days of
11		receipt of that notification inform the State
12		Superintendent of Education of the remedial or corrective
13		action to be taken, whether by amendment of the current
14		plan, if feasible, or by adjustment in the plan for the
15		following year. Failure to provide the expenditure report
16		or the notification of remedial or corrective action in a
17		timely manner shall result in a withholding of the affected
18		funds.
19		The State Board of Education shall promulgate rules and
20		regulations to implement the provisions of this
21		subsection. No funds shall be released under this
22		subdivision (H)(4) to any district that has not submitted a
23		plan that has been approved by the State Board of
24		Education.
25		(I) General State Aid for Newly Configured School Districts.
26		(1) For a new school district formed by combining property
27		included totally within 2 or more previously existing school
28		districts, for its first year of existence the general State
29		aid and supplemental general State aid calculated under this
30		Section shall be computed for the new district and for the
31		previously existing districts for which property is totally
32		included within the new district. If the computation on the
33		basis of the previously existing districts is greater, a

1		supplementary payment equal to the difference shall be made for
2		the first 4 years of existence of the new district.
3		(2) For a school district which annexes all of the
4		territory of one or more entire other school districts, for the
5		first year during which the change of boundaries attributable
6		to such annexation becomes effective for all purposes as
7		determined under Section 7-9 or 7A-8, the general State aid and
8		supplemental general State aid calculated under this Section
9		shall be computed for the annexing district as constituted
10		after the annexation and for the annexing and each annexed
11		district as constituted prior to the annexation; and if the
12		computation on the basis of the annexing and annexed districts
13		as constituted prior to the annexation is greater, a
14		supplementary payment equal to the difference shall be made for
15		the first 4 years of existence of the annexing school district
16		as constituted upon such annexation.
17		(3) For 2 or more school districts which annex all of the
18		territory of one or more entire other school districts, and for
19		2 or more community unit districts which result upon the
20		division (pursuant to petition under Section 11A-2) of one or
21		more other unit school districts into 2 or more parts and which
22		together include all of the parts into which such other unit
23		school district or districts are so divided, for the first year
24		during which the change of boundaries attributable to such
25		annexation or division becomes effective for all purposes as
26		determined under Section 7-9 or 11A-10, as the case may be, the
27		general State aid and supplemental general State aid calculated
28		under this Section shall be computed for each annexing or
29		resulting district as constituted after the annexation or
30		division and for each annexing and annexed district, or for
31		each resulting and divided district, as constituted prior to
32		the annexation or division; and if the aggregate of the general
33		State aid and supplemental general State aid as so computed for
34		the annexing or resulting districts as constituted after the

1		annexation or division is less than the aggregate of the
2		general State aid and supplemental general State aid as so
3		computed for the annexing and annexed districts, or for the
4		resulting and divided districts, as constituted prior to the
5		annexation or division, then a supplementary payment equal to
6		the difference shall be made and allocated between or among the
7		annexing or resulting districts, as constituted upon such
8		annexation or division, for the first 4 years of their
9		existence. The total difference payment shall be allocated
10		between or among the annexing or resulting districts in the
11		same ratio as the pupil enrollment from that portion of the
12		annexed or divided district or districts which is annexed to or
13		included in each such annexing or resulting district bears to
14		the total pupil enrollment from the entire annexed or divided
15		district or districts, as such pupil enrollment is determined
16		for the school year last ending prior to the date when the
17		change of boundaries attributable to the annexation or division
18		becomes effective for all purposes. The amount of the total
19		difference payment and the amount thereof to be allocated to
20		the annexing or resulting districts shall be computed by the
21		State Board of Education on the basis of pupil enrollment and
22		other data which shall be certified to the State Board of
23		Education, on forms which it shall provide for that purpose, by
24		the regional superintendent of schools for each educational
25		service region in which the annexing and annexed districts, or
26		resulting and divided districts are located.
27		(3.5) Claims for financial assistance under this
28		subsection (I) shall not be recomputed except as expressly
29		provided under this Section.
30		(4) Any supplementary payment made under this subsection
31		(I) shall be treated as separate from all other payments made
32		pursuant to this Section.
33		(J) Supplementary Grants in Aid.

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

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

1		provided by the State Superintendent of Education, an annual
2		State aid claim which states the Average Daily Attendance of
3		the school's students by month. The best 3 months' Average
4		Daily Attendance shall be computed for each school. The general
5		State aid entitlement shall be computed by multiplying the
6		applicable Average Daily Attendance by the Foundation Level as
7		determined under this Section.
8		(L) Payments, Additional Grants in Aid and Other Requirements.
9		(1) For a school district operating under the financial
10		supervision of an Authority created under Article 34A, the
11		general State aid otherwise payable to that district under this
12		Section, but not the supplemental general State aid, shall be
13		reduced by an amount equal to the budget for the operations of
14		the Authority as certified by the Authority to the State Board
15		of Education, and an amount equal to such reduction shall be
16		paid to the Authority created for such district for its
17		operating expenses in the manner provided in Section 18-11. The
18		remainder of general State school aid for any such district
19		shall be paid in accordance with Article 34A when that Article
20		provides for a disposition other than that provided by this
21		Article.
22		(2) (Blank).
23		(3) Summer school. Summer school payments shall be made as
24		provided in Section 18-4.3.
25		(M) Education Funding Advisory Board.
26		The Education Funding Advisory Board, hereinafter in this
27		subsection (M) referred to as the "Board", is hereby created.
28		The Board shall consist of 5 members who are appointed by the
29		Governor, by and with the advice and consent of the Senate. The
30		members appointed shall include representatives of education,
31		business, and the general public. One of the members so
32		appointed shall be designated by the Governor at the time the

1		appointment is made as the chairperson of the Board. The
2		initial members of the Board may be appointed any time after
3		the effective date of this amendatory Act of 1997. The regular
4		term of each member of the Board shall be for 4 years from the
5		third Monday of January of the year in which the term of the
6		member's appointment is to commence, except that of the 5
7		initial members appointed to serve on the Board, the member who
8		is appointed as the chairperson shall serve for a term that
9		commences on the date of his or her appointment and expires on
10		the third Monday of January, 2002, and the remaining 4 members,
11		by lots drawn at the first meeting of the Board that is held
12		after all 5 members are appointed, shall determine 2 of their
13		number to serve for terms that commence on the date of their
14		respective appointments and expire on the third Monday of
15		January, 2001, and 2 of their number to serve for terms that
16		commence on the date of their respective appointments and
17		expire on the third Monday of January, 2000. All members
18		appointed to serve on the Board shall serve until their
19		respective successors are appointed and confirmed. Vacancies
20		shall be filled in the same manner as original appointments. If
21		a vacancy in membership occurs at a time when the Senate is not
22		in session, the Governor shall make a temporary appointment
23		until the next meeting of the Senate, when he or she shall
24		appoint, by and with the advice and consent of the Senate, a
25		person to fill that membership for the unexpired term. If the
26		Senate is not in session when the initial appointments are
27		made, those appointments shall be made as in the case of
28		vacancies.
29		The Education Funding Advisory Board shall be deemed
30		established, and the initial members appointed by the Governor
31		to serve as members of the Board shall take office, on the date
32		that the Governor makes his or her appointment of the fifth
33		initial member of the Board, whether those initial members are
34		then serving pursuant to appointment and confirmation or

1		pursuant to temporary appointments that are made by the
2		Governor as in the case of vacancies.
3		The State Board of Education shall provide such staff
4		assistance to the Education Funding Advisory Board as is
5		reasonably required for the proper performance by the Board of
6		its responsibilities.
7		For school years after the 2000-2001 school year, the
8		Education Funding Advisory Board, in consultation with the
9		State Board of Education, shall make recommendations as
10		provided in this subsection (M) to the General Assembly for the
11		foundation level under subdivision (B)(3) of this Section and
12		for the supplemental general State aid grant level under
13		subsection (H) of this Section for districts with high
14		concentrations of children from poverty. The recommended
15		foundation level shall be determined based on a methodology
16		which incorporates the basic education expenditures of
17		low-spending schools exhibiting high academic performance. The
18		Education Funding Advisory Board shall make such
19		recommendations to the General Assembly on January 1 of odd
20		numbered years, beginning January 1, 2001.
21		(N) (Blank).
22		(O) References.
23		(1) References in other laws to the various subdivisions of
24		Section 18-8 as that Section existed before its repeal and
25		replacement by this Section 18-8.05 shall be deemed to refer to
26		the corresponding provisions of this Section 18-8.05, to the
27		extent that those references remain applicable.
28		(2) References in other laws to State Chapter 1 funds shall
29		be deemed to refer to the supplemental general State aid
30		provided under subsection (H) of this Section.
31		(Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
32		eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,

1		eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03.)

Section 999. Effective date. This Act takes effect upon becoming law.".