HB5364 95TH GENERAL ASSEMBLY

LRB095 14416 NHT 45840 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5364

Introduced , by Rep. Daniel J. Burke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/17-105.1
105 ILCS 5/27A-11
105 ILCS 5/27A-11.5
105 ILCS 230/5-25

Amends the Illinois Pension Code, the Charter Schools Law of the School Code, and the School Construction Law. In the Chicago Teachers Article of the Illinois Pension Code, provides that the definition of employer includes charter schools only with respect to persons hired before the effective date of the amendatory Act. Makes changes concerning local financing for charter schools. Provides that the State Board of Education shall make direct payments to charter schools on a per capita basis for each categorical otherwise available to a school board for students enrolled in the charter school. Provides that the State Board shall make direct grants of up to 25% of the per capita grants to charter schools whose performance is superior. Provides that in determining the amount of school construction project grants and debt service grants, the State Board shall review an application from a charter school independently from the application of the authorizing school board and shall dedicate and direct a reasonable portion of these grants towards the needs of those students enrolled in applicant charter schools that are eligible for the grants. Effective immediately.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 17-105.1 as follows:

(40 ILCS 5/17-105.1)

Sec. 17-105.1. Employer. "Employer": The Board of Education and, with respect to persons hired before the effective date of this amendatory Act of the 95th General Assembly, a charter school as defined under the provisions of Section 27A-5 27a-5 of the School Code.

(Source: P.A. 90-566, eff. 1-2-98.)

Section 10. The School Code is amended by changing Sections 27A-11 and 27A-11.5 as follows:

(105 ILCS 5/27A-11)

Sec. 27A-11. Local financing.

(a) For purposes of the School Code, pupils enrolled in a charter school shall be included in the pupil enrollment of the school district within which the pupil resides. Each charter school (i) shall determine the school district in which each pupil who is enrolled in the charter school resides, (ii) shall report the aggregate number of pupils resident of a school district who are enrolled in the charter school to the school district in which those pupils reside, and (iii) shall maintain accurate records of daily attendance that shall be deemed sufficient to file claims under Section 18-8 notwithstanding any other requirements of that Section regarding hours of instruction and teacher certification.

(b) Except for a charter school established by referendum under Section 27A-6.5, as part of a charter school contract, the charter school shall receive a combination of and the local school board shall agree on funding and other any services to be provided by the school district to the charter school as provided in this Section. Funding Agreed funding that a charter school is to receive from the local school board for a school year shall be paid in equal quarterly installments with the payment of the installment for the first quarter being made not later than July 1, unless the charter establishes a different payment schedule.

All services centrally or otherwise provided by the school district including, but not limited to, rent, food services, custodial services, maintenance, curriculum, media services, libraries, transportation, and warehousing shall be subject to negotiation between a charter school and the local school board and paid for out of the revenues negotiated pursuant to this subsection (b); provided that the local school board shall not attempt, by negotiation or otherwise, to obligate a charter school to provide pupil transportation for pupils for whom a district is not required to provide transportation under the criteria set forth in subsection (a)(13) of Section 27A-7.

The In no event shall the funding must be 100% less than 75% or more than 125% of the school district's operating expenses per pupil per capita student tuition multiplied by the number of students residing in the district who are enrolled in the charter school.

It is the intent of the General Assembly that funding and service agreements under this subsection (b) shall be neither a financial incentive nor a financial disincentive to the establishment of a charter school.

The charter school may set and collect reasonable fees. Fees collected from students enrolled at a charter school shall be retained by the charter school.

(c) Upon submission of the requisite documentation to the State Board, the per capita Notwithstanding subsection (b) of this Section, the proportionate share of State and federal resources generated by students with disabilities or staff serving them shall be directed to charter schools enrolling those students by their school districts or administrative units. The proportionate share of moneys generated under other federal or State categorical aid programs shall likewise be directed to charter schools serving students eligible for that aid.

(d) The governing body of a charter school is authorized to accept gifts, donations, or grants of any kind made to the charter school and to expend or use gifts, donations, or grants in accordance with the conditions prescribed by the donor; however, a gift, donation, or grant may not be accepted by the governing body if it is subject to any condition contrary to applicable law or contrary to the terms of the contract between the charter school and the local school board. Charter schools shall be encouraged to solicit and utilize community volunteer speakers and other instructional resources when providing instruction on the Holocaust and other historical events.

(e) (Blank).

(f) The State Board shall provide technical assistance to persons and groups preparing or revising charter applications.

(g) At the non-renewal or revocation of its charter, each charter school shall refund to the local board of education all unspent funds.

(h) A charter school is authorized to incur temporary, short term debt to pay operating expenses in anticipation of receipt of funds from the local school board.

(Source: P.A. 90-548, eff. 1-1-98; 90-757, eff. 8-14-98; 91-407, eff. 8-3-99.)

(105 ILCS 5/27A-11.5)

Sec. 27A-11.5. State financing. The State Board of Education shall make the following funds available to school districts and charter schools:

(1) From a separate appropriation made to the State Board for purposes of this subdivision (1), the State Board shall make transition impact aid available to school districts that approve a new charter school or that have funds withheld by the State Board to fund a new charter school that is chartered by the State Board. The amount of the aid shall equal 90% of the per capita funding paid to the charter school during the first year of its initial charter term, 65% of the per capita funding paid to the charter school during the second year of its initial term, and 35% of the per capita funding paid to the charter school during the third year of its initial term. This transition impact aid shall be paid to the local school board in equal quarterly installments, with the payment of the installment for the first quarter being made by August 1st immediately preceding the first, second, and third years of the initial term. The district shall file an application for this aid with the State Board in a format designated by the State Board. If the appropriation is insufficient in any year to pay all approved claims, the impact aid shall be prorated. However, for fiscal year 2004, the State Board of Education shall pay approved claims only for charter schools with a valid charter granted prior to June 1, 2003. If any funds remain after these claims have been paid, then the State Board of Education may pay all other approved claims on a pro rata basis. Transition impact aid shall be paid beginning in the 1999-2000 school year for charter schools that are in the first, second, or third year of their initial term. Transition impact aid shall not be paid for any charter school that is proposed and created by one or more boards of education, as authorized under the provisions of Public Act 91-405.

(2) From a separate appropriation made for the purpose of this subdivision (2), the State Board shall make grants to charter schools to pay their start-up costs of acquiring educational materials and supplies, textbooks, furniture, and other equipment needed during their initial term. The State Board shall annually establish the time and manner of application for these grants, which shall not exceed $250 per student enrolled in the charter school.

(3) The Charter Schools Revolving Loan Fund is created as a special fund in the State treasury. Federal funds, such other funds as may be made available for costs associated with the establishment of charter schools in Illinois, and amounts repaid by charter schools that have received a loan from the Charter Schools Revolving Loan Fund shall be deposited into the Charter Schools Revolving Loan Fund, and the moneys in the Charter Schools Revolving Loan Fund shall be appropriated to the State Board and used to provide interest-free loans to charter schools. These funds shall be used to pay start-up costs of acquiring educational materials and supplies, textbooks, furniture, and other equipment needed in the initial term of the charter school and for acquiring and remodeling a suitable physical plant, within the initial term of the charter school. Loans shall be limited to one loan per charter school and shall not exceed $250 per student enrolled in the charter school. A loan shall be repaid by the end of the initial term of the charter school. The State Board may deduct amounts necessary to repay the loan from funds due to the charter school or may require that the local school board that authorized the charter school deduct such amounts from funds due the charter school and remit these amounts to the State Board, provided that the local school board shall not be responsible for repayment of the loan. The State Board may use up to 3% of the appropriation to contract with a non-profit entity to administer the loan program.

(4) A charter school may apply for and receive, subject to the same restrictions applicable to school districts, any grant administered by the State Board that is available for school districts.

(5) From a separate appropriation made for the purpose of this subdivision (5), the State Board shall make direct payments to charter schools on a per capita basis for each categorical otherwise available to a local school board for students enrolled in the charter school. The State Board shall make these payments to the local school board as otherwise provided in this Article. These payments may be offset by a corresponding reduction in the amount of categorical grants to the local school board of the district where the eligible student resides.

(6) For the purpose of recognizing educational excellence and expanding the benefits of charter schools, the State Board, from a separate appropriation made for the purpose of this subdivision (6), shall make direct grants of up to 25% of the per capita grants to charter schools whose performance is superior.

The State Board shall annually establish the time and manner of application for these grants.

(Source: P.A. 92-16, eff. 6-28-01; 93-21, eff. 7-1-03.)

Section 15. The School Construction Law is amended by changing Section 5-25 as follows:

(105 ILCS 230/5-25)

Sec. 5-25. Eligibility and project standards.

(a) The State Board of Education shall establish eligibility standards for school construction project grants and debt service grants. These standards shall include minimum enrollment requirements for eligibility for school construction project grants of 200 students for elementary districts, 200 students for high school districts, and 400 students for unit districts. The State Board of Education shall approve a district's eligibility for a school construction project grant or a debt service grant pursuant to the established standards.

(a-5) In determining the amount of school construction project grants and debt service grants, the State Board of Education shall review an application from a charter school under Article 27A of the School Code independently from the application of the authorizing school board and shall dedicate and direct a reasonable portion of these grants towards the needs of those students enrolled in applicant charter schools that are eligible for the grants.

(b) The Capital Development Board shall establish project standards for all school construction project grants provided pursuant to this Article. These standards shall include space and capacity standards as well as the determination of recognized project costs that shall be eligible for State financial assistance and enrichment costs that shall not be eligible for State financial assistance.

(c) The State Board of Education and the Capital Development Board shall not establish standards that disapprove or otherwise establish limitations that restrict the eligibility of a school district with a population exceeding 500,000 for a school construction project grant based on the fact that any or all of the school construction project grant will be used to pay debt service or to make lease payments, as authorized by subsection (b) of Section 5-35 of this Law.

(Source: P.A. 90-548, eff. 1-1-98; 91-38, eff. 6-15-99.)

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