101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3793

 

Introduced 2/14/2020, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-158  from Ch. 108 1/2, par. 16-158
40 ILCS 5/17-127  from Ch. 108 1/2, par. 17-127
40 ILCS 5/17-129  from Ch. 108 1/2, par. 17-129
40 ILCS 15/1.1
40 ILCS 15/1.10 new
105 ILCS 5/18-8.15

    Amends the Downstate and Chicago Teacher Articles of the Illinois Pension Code to require school districts to pay the employer normal cost of benefits beginning in fiscal year 2021. Amends the State Pension Funds Continuing Appropriation Act to appropriate from the Common School Fund to the State Board of Education, on a continuing annual basis beginning with fiscal year 2021, the amount certified as the employer normal cost, to be distributed by the State Board of Education under the evidence-based funding formula provisions of the School Code. Amends the evidence-based funding formula provisions of the School Code to make changes concerning the employee benefit investments calculation and the Base Funding Minimum calculation. Effective immediately.


LRB101 20236 NHT 69776 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB3793LRB101 20236 NHT 69776 b

1    AN ACT concerning education.
 
2    WHEREAS, This Act may be referred to as the Accelerating of
3School Funding Equity Act of 2020; and
 
4    WHEREAS, The General Assembly overhauled this State's
5outdated and inequitable funding system in 2017 with the
6enactment of an evidence-based funding formula via Public Act
7100-465, which consolidated several funding streams into a
8single formula; and
 
9    WHEREAS, This new, modernized formula considers how much
10each school district needs to adequately educate its students,
11how much local capacity each district has to fund its schools,
12and how close each district is to reaching adequate funding,
13all while holding harmless all districts; and
 
14    WHEREAS, The State pays most employer costs of teacher
15pensions, which is among the most inequitable ways this State
16supports school districts because those districts with higher
17teacher salaries and more teachers receive a greater State
18subsidy for the cost of teacher pensions than those districts
19with lower teacher salaries and fewer teachers; and
 
20    WHEREAS, The current structure for State support of teacher
21pension costs provides school districts funded above 100%
22adequacy a benefit of $328 more per pupil than it provides to

 

 

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1school districts funded below 80% of adequacy; and
 
2    WHEREAS, By applying the same principles found in the
3evidence-based funding formula, the inequitable teacher
4pension funding structure can be improved to accelerate equity,
5accelerate the timeline for bringing the school funding system
6closer to adequacy, and protect teacher pension funding;
7therefore"; and
 
8    Be it enacted by the People of the State of Illinois,
9represented in the General Assembly:
 
10    Section 5. The Illinois Pension Code is amended by changing
11Sections 16-158, 17-127, and 17-129 as follows:
 
12    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
13    Sec. 16-158. Contributions by State and other employing
14units.
15    (a) The State shall make contributions to the System by
16means of appropriations from the Common School Fund and other
17State funds of amounts which, together with other employer
18contributions, employee contributions, investment income, and
19other income, will be sufficient to meet the cost of
20maintaining and administering the System on a 90% funded basis
21in accordance with actuarial recommendations.
22    The Board shall determine the amount of State contributions

 

 

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1required for each fiscal year on the basis of the actuarial
2tables and other assumptions adopted by the Board and the
3recommendations of the actuary, using the formula in subsection
4(b-3).
5    (a-1) Annually, on or before November 15 until November 15,
62011, the Board shall certify to the Governor the amount of the
7required State contribution for the coming fiscal year. The
8certification under this subsection (a-1) shall include a copy
9of the actuarial recommendations upon which it is based and
10shall specifically identify the System's projected State
11normal cost for that fiscal year.
12    On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18    On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by Public Act 94-4.
23    On or before April 1, 2011, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011, applying
26the changes made by Public Act 96-889 to the System's assets

 

 

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1and liabilities as of June 30, 2009 as though Public Act 96-889
2was approved on that date.
3    On or before July 1, 2020, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2021, applying
6the changes made by this amendatory Act of the 101st General
7Assembly.
8    (a-5) On or before November 1 of each year, beginning
9November 1, 2012, the Board shall submit to the State Actuary,
10the Governor, and the General Assembly a proposed certification
11of the amount of the required State contribution to the System
12for the next fiscal year, along with all of the actuarial
13assumptions, calculations, and data upon which that proposed
14certification is based. On or before January 1 of each year,
15beginning January 1, 2013, the State Actuary shall issue a
16preliminary report concerning the proposed certification and
17identifying, if necessary, recommended changes in actuarial
18assumptions that the Board must consider before finalizing its
19certification of the required State contributions. On or before
20January 15, 2013 and each January 15 thereafter, the Board
21shall certify to the Governor and the General Assembly the
22amount of the required State contribution for the next fiscal
23year. The Board's certification must note any deviations from
24the State Actuary's recommended changes, the reason or reasons
25for not following the State Actuary's recommended changes, and
26the fiscal impact of not following the State Actuary's

 

 

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1recommended changes on the required State contribution.
2    (a-10) By November 1, 2017, the Board shall recalculate and
3recertify to the State Actuary, the Governor, and the General
4Assembly the amount of the State contribution to the System for
5State fiscal year 2018, taking into account the changes in
6required State contributions made by Public Act 100-23. The
7State Actuary shall review the assumptions and valuations
8underlying the Board's revised certification and issue a
9preliminary report concerning the proposed recertification and
10identifying, if necessary, recommended changes in actuarial
11assumptions that the Board must consider before finalizing its
12certification of the required State contributions. The Board's
13final certification must note any deviations from the State
14Actuary's recommended changes, the reason or reasons for not
15following the State Actuary's recommended changes, and the
16fiscal impact of not following the State Actuary's recommended
17changes on the required State contribution.
18    (a-15) On or after June 15, 2019, but no later than June
1930, 2019, the Board shall recalculate and recertify to the
20Governor and the General Assembly the amount of the State
21contribution to the System for State fiscal year 2019, taking
22into account the changes in required State contributions made
23by Public Act 100-587. The recalculation shall be made using
24assumptions adopted by the Board for the original fiscal year
252019 certification. The monthly voucher for the 12th month of
26fiscal year 2019 shall be paid by the Comptroller after the

 

 

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1recertification required pursuant to this subsection is
2submitted to the Governor, Comptroller, and General Assembly.
3The recertification submitted to the General Assembly shall be
4filed with the Clerk of the House of Representatives and the
5Secretary of the Senate in electronic form only, in the manner
6that the Clerk and the Secretary shall direct.
7    (b) Through State fiscal year 1995, the State contributions
8shall be paid to the System in accordance with Section 18-7 of
9the School Code.
10    (b-1) Beginning in State fiscal year 1996, on the 15th day
11of each month, or as soon thereafter as may be practicable, the
12Board shall submit vouchers for payment of State contributions
13to the System, in a total monthly amount of one-twelfth of the
14required annual State contribution certified under subsection
15(a-1). From March 5, 2004 (the effective date of Public Act
1693-665) through June 30, 2004, the Board shall not submit
17vouchers for the remainder of fiscal year 2004 in excess of the
18fiscal year 2004 certified contribution amount determined
19under this Section after taking into consideration the transfer
20to the System under subsection (a) of Section 6z-61 of the
21State Finance Act. These vouchers shall be paid by the State
22Comptroller and Treasurer by warrants drawn on the funds
23appropriated to the System for that fiscal year.
24    If in any month the amount remaining unexpended from all
25other appropriations to the System for the applicable fiscal
26year (including the appropriations to the System under Section

 

 

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18.12 of the State Finance Act and Section 1 of the State
2Pension Funds Continuing Appropriation Act) is less than the
3amount lawfully vouchered under this subsection, the
4difference shall be paid from the Common School Fund under the
5continuing appropriation authority provided in Section 1.1 of
6the State Pension Funds Continuing Appropriation Act.
7    (b-2) Allocations from the Common School Fund apportioned
8to school districts not coming under this System shall not be
9diminished or affected by the provisions of this Article.
10    (b-3) For State fiscal years 2012 through 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20    For each of State fiscal years 2018, 2019, and 2020, the
21State shall make an additional contribution to the System equal
22to 2% of the total payroll of each employee who is deemed to
23have elected the benefits under Section 1-161 or who has made
24the election under subsection (c) of Section 1-161.
25    A change in an actuarial or investment assumption that
26increases or decreases the required State contribution and

 

 

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1first applies in State fiscal year 2018 or thereafter shall be
2implemented in equal annual amounts over a 5-year period
3beginning in the State fiscal year in which the actuarial
4change first applies to the required State contribution.
5    A change in an actuarial or investment assumption that
6increases or decreases the required State contribution and
7first applied to the State contribution in fiscal year 2014,
82015, 2016, or 2017 shall be implemented:
9        (i) as already applied in State fiscal years before
10    2018; and
11        (ii) in the portion of the 5-year period beginning in
12    the State fiscal year in which the actuarial change first
13    applied that occurs in State fiscal year 2018 or
14    thereafter, by calculating the change in equal annual
15    amounts over that 5-year period and then implementing it at
16    the resulting annual rate in each of the remaining fiscal
17    years in that 5-year period.
18    For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section; except that in the
23following specified State fiscal years, the State contribution
24to the System shall not be less than the following indicated
25percentages of the applicable employee payroll, even if the
26indicated percentage will produce a State contribution in

 

 

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1excess of the amount otherwise required under this subsection
2and subsection (a), and notwithstanding any contrary
3certification made under subsection (a-1) before May 27, 1998
4(the effective date of Public Act 90-582): 10.02% in FY 1999;
510.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
6in FY 2003; and 13.56% in FY 2004.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2006 is
9$534,627,700.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2007 is
12$738,014,500.
13    For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2010 is
21$2,089,268,000 and shall be made from the proceeds of bonds
22sold in fiscal year 2010 pursuant to Section 7.2 of the General
23Obligation Bond Act, less (i) the pro rata share of bond sale
24expenses determined by the System's share of total bond
25proceeds, (ii) any amounts received from the Common School Fund
26in fiscal year 2010, and (iii) any reduction in bond proceeds

 

 

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1due to the issuance of discounted bonds, if applicable.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2011 is
4the amount recertified by the System on or before April 1, 2011
5pursuant to subsection (a-1) of this Section and shall be made
6from the proceeds of bonds sold in fiscal year 2011 pursuant to
7Section 7.2 of the General Obligation Bond Act, less (i) the
8pro rata share of bond sale expenses determined by the System's
9share of total bond proceeds, (ii) any amounts received from
10the Common School Fund in fiscal year 2011, and (iii) any
11reduction in bond proceeds due to the issuance of discounted
12bonds, if applicable. This amount shall include, in addition to
13the amount certified by the System, an amount necessary to meet
14employer contributions required by the State as an employer
15under paragraph (e) of this Section, which may also be used by
16the System for contributions required by paragraph (a) of
17Section 16-127.
18    Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 90% of the total
21actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

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1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 90%. A reference in this Article to
5the "required State contribution" or any substantially similar
6term does not include or apply to any amounts payable to the
7System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter, as calculated
11under this Section and certified under subsection (a-1), shall
12not exceed an amount equal to (i) the amount of the required
13State contribution that would have been calculated under this
14Section for that fiscal year if the System had not received any
15payments under subsection (d) of Section 7.2 of the General
16Obligation Bond Act, minus (ii) the portion of the State's
17total debt service payments for that fiscal year on the bonds
18issued in fiscal year 2003 for the purposes of that Section
197.2, as determined and certified by the Comptroller, that is
20the same as the System's portion of the total moneys
21distributed under subsection (d) of Section 7.2 of the General
22Obligation Bond Act. In determining this maximum for State
23fiscal years 2008 through 2010, however, the amount referred to
24in item (i) shall be increased, as a percentage of the
25applicable employee payroll, in equal increments calculated
26from the sum of the required State contribution for State

 

 

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1fiscal year 2007 plus the applicable portion of the State's
2total debt service payments for fiscal year 2007 on the bonds
3issued in fiscal year 2003 for the purposes of Section 7.2 of
4the General Obligation Bond Act, so that, by State fiscal year
52011, the State is contributing at the rate otherwise required
6under this Section.
7    (b-4) Beginning in fiscal year 2018, each employer under
8this Article shall pay to the System a required contribution
9determined as a percentage of projected payroll and sufficient
10to produce an annual amount equal to:
11        (i) for each of fiscal years 2018, 2019, and 2020, the
12    defined benefit normal cost of the defined benefit plan,
13    less the employee contribution, for each employee of that
14    employer who has elected or who is deemed to have elected
15    the benefits under Section 1-161 or who has made the
16    election under subsection (b) of Section 1-161; for fiscal
17    year 2021 and each fiscal year thereafter, the defined
18    benefit normal cost of the defined benefit plan, less the
19    employee contribution, plus 2%, for each employee of that
20    employer who has elected or who is deemed to have elected
21    the benefits under Section 1-161 or who has made the
22    election under subsection (b) of Section 1-161; plus
23        (ii) the amount required for that fiscal year to
24    amortize any unfunded actuarial accrued liability
25    associated with the present value of liabilities
26    attributable to the employer's account under Section

 

 

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1    16-158.3, determined as a level percentage of payroll over
2    a 30-year rolling amortization period.
3    In determining contributions required under item (i) of
4this subsection, the System shall determine an aggregate rate
5for all employers, expressed as a percentage of projected
6payroll.
7    In determining the contributions required under item (ii)
8of this subsection, the amount shall be computed by the System
9on the basis of the actuarial assumptions and tables used in
10the most recent actuarial valuation of the System that is
11available at the time of the computation.
12    The contributions required under this subsection (b-4)
13shall be paid by an employer concurrently with that employer's
14payroll payment period. The State, as the actual employer of an
15employee, shall make the required contributions under this
16subsection.
17    (b-5) Beginning in fiscal year 2021, each employer under
18this Article shall pay a required contribution determined as a
19percentage of projected payroll and sufficient to produce an
20annual amount equal to:
21        (1) for fiscal year 2021, the normal cost of each
22    member employed by the employer, other than a member
23    covered by subsection (b-4) of this Section, less the
24    employee contribution; and
25        (2) for fiscal year 2022 and each fiscal year
26    thereafter, the amount required for that fiscal year to

 

 

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1    amortize any unfunded actuarial accrued liability accrued
2    from differences between estimated and actual normal cost
3    rates paid by the employer determined as a level percentage
4    of payroll over a 30-year rolling amortization period.
5    In determining the contributions required under item (1) of
6this subsection (b-5), the System shall determine an aggregate
7rate for all employers, expressed as a percentage of projected
8payroll. In determining contributions required under item (2)
9of this subsection (b-5), the amount shall be computed by the
10System on the basis of actuarial assumptions and tables used in
11the most recent actuarial valuation of the System that is
12available at the time of the computation. The contributions
13required under this subsection (b-5) shall be paid by the
14employer concurrently with that employer's payroll payment
15period. The State as the actual employer of an employee shall
16make the required contributions under this subsection (b-5).
17The System shall certify the required contribution of each
18employer under this Article pursuant to this subsection (b-5)
19and submit that certification and its aggregate rate for all
20employers to the State Superintendent of Education by February
2115th of each year or upon a date mutually agreed upon by the
22System and State Superintendent of Education. Nothing in this
23amendatory Act of the 101st General Assembly shall be construed
24to apply to or alter the existing contribution obligations on
25an employer of a teacher defined under paragraph (2), (3), (4),
26(5), (8), or (10) of Section 16-106 of this Code.

 

 

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1    (c) Payment of the required State contributions and of all
2pensions, retirement annuities, death benefits, refunds, and
3other benefits granted under or assumed by this System, and all
4expenses in connection with the administration and operation
5thereof, are obligations of the State.
6    If members are paid from special trust or federal funds
7which are administered by the employing unit, whether school
8district or other unit, the employing unit shall pay to the
9System from such funds the full accruing retirement costs based
10upon that service, which, beginning July 1, 2017, shall be at a
11rate, expressed as a percentage of salary, equal to the total
12employer's normal cost, expressed as a percentage of payroll,
13as determined by the System. Employer contributions, based on
14salary paid to members from federal funds, may be forwarded by
15the distributing agency of the State of Illinois to the System
16prior to allocation, in an amount determined in accordance with
17guidelines established by such agency and the System. Any
18contribution for fiscal year 2015 collected as a result of the
19change made by Public Act 98-674 shall be considered a State
20contribution under subsection (b-3) of this Section.
21    (d) Effective July 1, 1986, any employer of a teacher as
22defined in paragraph (8) of Section 16-106 shall pay the
23employer's normal cost of benefits based upon the teacher's
24service, in addition to employee contributions, as determined
25by the System. Such employer contributions shall be forwarded
26monthly in accordance with guidelines established by the

 

 

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1System.
2    However, with respect to benefits granted under Section
316-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
4of Section 16-106, the employer's contribution shall be 12%
5(rather than 20%) of the member's highest annual salary rate
6for each year of creditable service granted, and the employer
7shall also pay the required employee contribution on behalf of
8the teacher. For the purposes of Sections 16-133.4 and
916-133.5, a teacher as defined in paragraph (8) of Section
1016-106 who is serving in that capacity while on leave of
11absence from another employer under this Article shall not be
12considered an employee of the employer from which the teacher
13is on leave.
14    (e) Beginning July 1, 1998, every employer of a teacher
15shall pay to the System an employer contribution computed as
16follows:
17        (1) Beginning July 1, 1998 through June 30, 1999, the
18    employer contribution shall be equal to 0.3% of each
19    teacher's salary.
20        (2) Beginning July 1, 1999 and thereafter, the employer
21    contribution shall be equal to 0.58% of each teacher's
22    salary.
23The school district or other employing unit may pay these
24employer contributions out of any source of funding available
25for that purpose and shall forward the contributions to the
26System on the schedule established for the payment of member

 

 

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1contributions.
2    These employer contributions are intended to offset a
3portion of the cost to the System of the increases in
4retirement benefits resulting from Public Act 90-582.
5    Each employer of teachers is entitled to a credit against
6the contributions required under this subsection (e) with
7respect to salaries paid to teachers for the period January 1,
82002 through June 30, 2003, equal to the amount paid by that
9employer under subsection (a-5) of Section 6.6 of the State
10Employees Group Insurance Act of 1971 with respect to salaries
11paid to teachers for that period.
12    The additional 1% employee contribution required under
13Section 16-152 by Public Act 90-582 is the responsibility of
14the teacher and not the teacher's employer, unless the employer
15agrees, through collective bargaining or otherwise, to make the
16contribution on behalf of the teacher.
17    If an employer is required by a contract in effect on May
181, 1998 between the employer and an employee organization to
19pay, on behalf of all its full-time employees covered by this
20Article, all mandatory employee contributions required under
21this Article, then the employer shall be excused from paying
22the employer contribution required under this subsection (e)
23for the balance of the term of that contract. The employer and
24the employee organization shall jointly certify to the System
25the existence of the contractual requirement, in such form as
26the System may prescribe. This exclusion shall cease upon the

 

 

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1termination, extension, or renewal of the contract at any time
2after May 1, 1998.
3    (f) If June 4, 2018 (Public Act 100-587) the amount of a
4teacher's salary for any school year used to determine final
5average salary exceeds the member's annual full-time salary
6rate with the same employer for the previous school year by
7more than 6%, the teacher's employer shall pay to the System,
8in addition to all other payments required under this Section
9and in accordance with guidelines established by the System,
10the present value of the increase in benefits resulting from
11the portion of the increase in salary that is in excess of 6%.
12This present value shall be computed by the System on the basis
13of the actuarial assumptions and tables used in the most recent
14actuarial valuation of the System that is available at the time
15of the computation. If a teacher's salary for the 2005-2006
16school year is used to determine final average salary under
17this subsection (f), then the changes made to this subsection
18(f) by Public Act 94-1057 shall apply in calculating whether
19the increase in his or her salary is in excess of 6%. For the
20purposes of this Section, change in employment under Section
2110-21.12 of the School Code on or after June 1, 2005 shall
22constitute a change in employer. The System may require the
23employer to provide any pertinent information or
24documentation. The changes made to this subsection (f) by
25Public Act 94-1111 apply without regard to whether the teacher
26was in service on or after its effective date.

 

 

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1    Whenever it determines that a payment is or may be required
2under this subsection, the System shall calculate the amount of
3the payment and bill the employer for that amount. The bill
4shall specify the calculations used to determine the amount
5due. If the employer disputes the amount of the bill, it may,
6within 30 days after receipt of the bill, apply to the System
7in writing for a recalculation. The application must specify in
8detail the grounds of the dispute and, if the employer asserts
9that the calculation is subject to subsection (g) or (h) of
10this Section, must include an affidavit setting forth and
11attesting to all facts within the employer's knowledge that are
12pertinent to the applicability of that subsection. Upon
13receiving a timely application for recalculation, the System
14shall review the application and, if appropriate, recalculate
15the amount due.
16    The employer contributions required under this subsection
17(f) may be paid in the form of a lump sum within 90 days after
18receipt of the bill. If the employer contributions are not paid
19within 90 days after receipt of the bill, then interest will be
20charged at a rate equal to the System's annual actuarially
21assumed rate of return on investment compounded annually from
22the 91st day after receipt of the bill. Payments must be
23concluded within 3 years after the employer's receipt of the
24bill.
25    (f-1) (Blank). June 4, 2018 (Public Act 100-587)
26    (g) This subsection (g) applies only to payments made or

 

 

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1salary increases given on or after June 1, 2005 but before July
21, 2011. The changes made by Public Act 94-1057 shall not
3require the System to refund any payments received before July
431, 2006 (the effective date of Public Act 94-1057).
5    When assessing payment for any amount due under subsection
6(f), the System shall exclude salary increases paid to teachers
7under contracts or collective bargaining agreements entered
8into, amended, or renewed before June 1, 2005.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude salary increases paid to a
11teacher at a time when the teacher is 10 or more years from
12retirement eligibility under Section 16-132 or 16-133.2.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude salary increases resulting from
15overload work, including summer school, when the school
16district has certified to the System, and the System has
17approved the certification, that (i) the overload work is for
18the sole purpose of classroom instruction in excess of the
19standard number of classes for a full-time teacher in a school
20district during a school year and (ii) the salary increases are
21equal to or less than the rate of pay for classroom instruction
22computed on the teacher's current salary and work schedule.
23    When assessing payment for any amount due under subsection
24(f), the System shall exclude a salary increase resulting from
25a promotion (i) for which the employee is required to hold a
26certificate or supervisory endorsement issued by the State

 

 

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1Teacher Certification Board that is a different certification
2or supervisory endorsement than is required for the teacher's
3previous position and (ii) to a position that has existed and
4been filled by a member for no less than one complete academic
5year and the salary increase from the promotion is an increase
6that results in an amount no greater than the lesser of the
7average salary paid for other similar positions in the district
8requiring the same certification or the amount stipulated in
9the collective bargaining agreement for a similar position
10requiring the same certification.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude any payment to the teacher from
13the State of Illinois or the State Board of Education over
14which the employer does not have discretion, notwithstanding
15that the payment is included in the computation of final
16average salary.
17    (h) When assessing payment for any amount due under
18subsection (f), the System shall exclude any salary increase
19described in subsection (g) of this Section given on or after
20July 1, 2011 but before July 1, 2014 under a contract or
21collective bargaining agreement entered into, amended, or
22renewed on or after June 1, 2005 but before July 1, 2011.
23Notwithstanding any other provision of this Section, any
24payments made or salary increases given after June 30, 2014
25shall be used in assessing payment for any amount due under
26subsection (f) of this Section.

 

 

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1    (i) The System shall prepare a report and file copies of
2the report with the Governor and the General Assembly by
3January 1, 2007 that contains all of the following information:
4        (1) The number of recalculations required by the
5    changes made to this Section by Public Act 94-1057 for each
6    employer.
7        (2) The dollar amount by which each employer's
8    contribution to the System was changed due to
9    recalculations required by Public Act 94-1057.
10        (3) The total amount the System received from each
11    employer as a result of the changes made to this Section by
12    Public Act 94-4.
13        (4) The increase in the required State contribution
14    resulting from the changes made to this Section by Public
15    Act 94-1057.
16    (i-5) For school years beginning on or after July 1, 2017,
17if the amount of a participant's salary for any school year
18exceeds the amount of the salary set for the Governor, the
19participant's employer shall pay to the System, in addition to
20all other payments required under this Section and in
21accordance with guidelines established by the System, an amount
22determined by the System to be equal to the employer normal
23cost, as established by the System and expressed as a total
24percentage of payroll, multiplied by the amount of salary in
25excess of the amount of the salary set for the Governor. This
26amount shall be computed by the System on the basis of the

 

 

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1actuarial assumptions and tables used in the most recent
2actuarial valuation of the System that is available at the time
3of the computation. The System may require the employer to
4provide any pertinent information or documentation.
5    Whenever it determines that a payment is or may be required
6under this subsection, the System shall calculate the amount of
7the payment and bill the employer for that amount. The bill
8shall specify the calculations used to determine the amount
9due. If the employer disputes the amount of the bill, it may,
10within 30 days after receipt of the bill, apply to the System
11in writing for a recalculation. The application must specify in
12detail the grounds of the dispute. Upon receiving a timely
13application for recalculation, the System shall review the
14application and, if appropriate, recalculate the amount due.
15    The employer contributions required under this subsection
16may be paid in the form of a lump sum within 90 days after
17receipt of the bill. If the employer contributions are not paid
18within 90 days after receipt of the bill, then interest will be
19charged at a rate equal to the System's annual actuarially
20assumed rate of return on investment compounded annually from
21the 91st day after receipt of the bill. Payments must be
22concluded within 3 years after the employer's receipt of the
23bill.
24    (j) For purposes of determining the required State
25contribution to the System, the value of the System's assets
26shall be equal to the actuarial value of the System's assets,

 

 

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1which shall be calculated as follows:
2    As of June 30, 2008, the actuarial value of the System's
3assets shall be equal to the market value of the assets as of
4that date. In determining the actuarial value of the System's
5assets for fiscal years after June 30, 2008, any actuarial
6gains or losses from investment return incurred in a fiscal
7year shall be recognized in equal annual amounts over the
85-year period following that fiscal year.
9    (k) For purposes of determining the required State
10contribution to the system for a particular year, the actuarial
11value of assets shall be assumed to earn a rate of return equal
12to the system's actuarially assumed rate of return.
13(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
14100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
158-14-18; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; revised
168-13-19.)
 
17    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
18    Sec. 17-127. Financing; revenues for the Fund.
19    (a) The revenues for the Fund shall consist of: (1) amounts
20paid into the Fund by contributors thereto and from employer
21contributions and State appropriations in accordance with this
22Article; (2) amounts contributed to the Fund by an Employer;
23(3) amounts contributed to the Fund pursuant to any law now in
24force or hereafter to be enacted; (4) contributions from any
25other source; and (5) the earnings on investments.

 

 

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1    (b) The General Assembly finds that for many years the
2State has contributed to the Fund an annual amount that is
3between 20% and 30% of the amount of the annual State
4contribution to the Article 16 retirement system, and the
5General Assembly declares that it is its goal and intention to
6continue this level of contribution to the Fund in the future.
7    (c) Beginning in State fiscal year 1999, the State shall
8include in its annual contribution to the Fund an additional
9amount equal to 0.544% of the Fund's total teacher payroll;
10except that this additional contribution need not be made in a
11fiscal year if the Board has certified in the previous fiscal
12year that the Fund is at least 90% funded, based on actuarial
13determinations. These additional State contributions are
14intended to offset a portion of the cost to the Fund of the
15increases in retirement benefits resulting from this
16amendatory Act of 1998.
17    (d) In addition to any other contribution required under
18this Article, including the contribution required under
19subsection (c), the State shall contribute to the Fund the
20following amounts:
21        (1) For State fiscal year 2018, the State shall
22    contribute $221,300,000 for the employer normal cost for
23    fiscal year 2018 and the amount allowed under paragraph (3)
24    of Section 17-142.1 of this Code to defray health insurance
25    costs. Funds for this paragraph (1) shall come from funds
26    appropriated for Evidence-Based Funding pursuant to

 

 

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1    Section 18-8.15 of the School Code.
2        (2) Beginning in State fiscal year 2019 through State
3    fiscal year 2020, the State shall contribute for each
4    fiscal year an amount to be determined by the Fund, equal
5    to the employer normal cost for that fiscal year, plus the
6    amount allowed pursuant to paragraph (3) of Section
7    17-142.1 to defray health insurance costs. Beginning in
8    State fiscal year 2021, the State shall contribute for each
9    fiscal year an amount to be determined by the Fund equal to
10    the amount allowed pursuant to paragraph (3) of Section
11    17-142.1 to defray health insurance costs.
12    (e) The Board shall determine the amount of State
13contributions required for each fiscal year on the basis of the
14actuarial tables and other assumptions adopted by the Board and
15the recommendations of the actuary. On or before November 1 of
16each year, beginning November 1, 2017, the Board shall submit
17to the State Actuary, the Governor, and the General Assembly a
18proposed certification of the amount of the required State
19contribution to the Fund for the next fiscal year, along with
20all of the actuarial assumptions, calculations, and data upon
21which that proposed certification is based.
22    On or before January 1 of each year, beginning January 1,
232018, the State Actuary shall issue a preliminary report
24concerning the proposed certification and identifying, if
25necessary, recommended changes in actuarial assumptions that
26the Board must consider before finalizing its certification of

 

 

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1the required State contributions.
2    (f) On or before January 15, 2018 and each January 15
3thereafter, the Board shall certify to the Governor and the
4General Assembly the amount of the required State contribution
5for the next fiscal year. The certification shall include a
6copy of the actuarial recommendations upon which it is based
7and shall specifically identify the Fund's projected employer
8normal cost for that fiscal year. The Board's certification
9must note any deviations from the State Actuary's recommended
10changes, the reason or reasons for not following the State
11Actuary's recommended changes, and the fiscal impact of not
12following the State Actuary's recommended changes on the
13required State contribution.
14    For the purposes of this Article, including issuing
15vouchers, and for the purposes of subsection (h) of Section 1.1
16of the State Pension Funds Continuing Appropriation Act, the
17State contribution specified for State fiscal year 2018 shall
18be deemed to have been certified, by operation of law and
19without official action by the Board or the State Actuary, in
20the amount provided in subsection (c) and subsection (d) of
21this Section.
22    (g) For State fiscal year 2018, the State Board of
23Education shall submit vouchers, as directed by the Board, for
24payment of State contributions to the Fund for the required
25annual State contribution under subsection (d) of this Section.
26These vouchers shall be paid by the State Comptroller and

 

 

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1Treasurer by warrants drawn on the amount appropriated to the
2State Board of Education from the Common School Fund in Section
35 of Article 97 of Public Act 100-21. If State appropriations
4for State fiscal year 2018 are less than the amount lawfully
5vouchered under this subsection, the difference shall be paid
6from the Common School Fund under the continuing appropriation
7authority provided in Section 1.1 of the State Pension Funds
8Continuing Appropriation Act.
9    (h) For State fiscal year 2018, the Board shall submit
10vouchers for the payment of State contributions to the Fund for
11the required annual State contribution under subsection (c) of
12this Section. Beginning in State fiscal year 2019, the Board
13shall submit vouchers for payment of State contributions to the
14Fund for the required annual State contribution under
15subsections (c) and (d) of this Section. These vouchers shall
16be paid by the State Comptroller and Treasurer by warrants
17drawn on the funds appropriated to the Fund for that fiscal
18year. If State appropriations to the Fund for the applicable
19fiscal year are less than the amount lawfully vouchered under
20this subsection, the difference shall be paid from the Common
21School Fund under the continuing appropriation authority
22provided in Section 1.1 of the State Pension Funds Continuing
23Appropriation Act.
24    (i) The Board shall determine the amount of employer normal
25cost to be paid by the Board of Education for its contributors,
26members, and teachers participating in the Fund each fiscal

 

 

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1year on the basis of the actuarial tables and other assumptions
2adopted by the Board and the recommendations of the actuary.
3The Board of Education shall contribute the amount certified by
4the Board as its employer normal cost to the Fund pursuant to
5Section 17-129 of this Code.
6    On or before November 1 of each year, the Board shall
7submit to the State Actuary, the Governor, and the General
8Assembly a proposed certification of the amount of the required
9Board of Education employer normal cost contributions to the
10Fund for the next fiscal year, along with all of the actuarial
11assumptions, calculations, and data upon which that proposed
12certification is based.
13    On or before January 1 of each year, the State Actuary
14shall issue a preliminary report concerning the proposed
15certification and identifying, if necessary, recommended
16changes in actuarial assumptions that the Board must consider
17before finalizing its certification of the required State
18contributions.
19    (j) On or before January 15 of each year, the Board shall
20certify to the Governor and the General Assembly the amount of
21the Board of Education's employer normal cost contribution for
22the next fiscal year. The certification shall include a copy of
23the actuarial recommendations upon which it is based and shall
24specifically identify the Fund's projected employer normal
25cost for that fiscal year. The Board's certification must note
26any deviations from the State Actuary's recommended changes,

 

 

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1the reason or reasons for not following the State Actuary's
2recommended changes, and the fiscal impact of not following the
3State Actuary's recommended changes on the required State
4contribution.
5    (k) Beginning in State fiscal year 2021, the Board shall
6submit vouchers for the payment of the amount equal to the
7employer normal cost contributions made by the Board of
8Education pursuant to Section 17-129 of this Code as determined
9by the Board under subsection (i) of this Section. These
10vouchers shall be paid by the State Comptroller and State
11Treasurer by warrants drawn on the funds appropriated to the
12State Board of Education for that fiscal year, and the State
13Board of Education shall distribute the funds it receives
14pursuant to the provisions of subsection (e) of Section 18-8.15
15of the School Code. If State appropriations to the State Board
16of Education for the applicable fiscal year are less than the
17amount lawfully vouchered under this subsection (k), the
18difference shall be paid from the Common School Fund under the
19continuing appropriation authority provided in Section 1.1 of
20the State Pension Funds Continuing Appropriation Act.
21(Source: P.A. 100-465, eff. 8-31-17.)
 
22    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
23    Sec. 17-129. Employer contributions; deficiency in Fund.
24    (a) If in any fiscal year of the Board of Education ending
25prior to 1997 the total amounts paid to the Fund from the Board

 

 

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1of Education (other than under this subsection, and other than
2amounts used for making or "picking up" contributions on behalf
3of teachers) and from the State do not equal the total
4contributions made by or on behalf of the teachers for such
5year, or if the total income of the Fund in any such fiscal
6year of the Board of Education from all sources is less than
7the total such expenditures by the Fund for such year, the
8Board of Education shall, in the next succeeding year, in
9addition to any other payment to the Fund set apart and
10appropriate from moneys from its tax levy for educational
11purposes, a sum sufficient to remove such deficiency or
12deficiencies, and promptly pay such sum into the Fund in order
13to restore any of the reserves of the Fund that may have been
14so temporarily applied. Any amounts received by the Fund after
15December 4, 1997 from State appropriations, including under
16Section 17-127, shall be a credit against and shall fully
17satisfy any obligation that may have arisen, or be claimed to
18have arisen, under this subsection (a) as a result of any
19deficiency or deficiencies in the fiscal year of the Board of
20Education ending in calendar year 1997.
21    (b) (i) Notwithstanding any other provision of this
22Section, and notwithstanding any prior certification by the
23Board under subsection (c) for fiscal year 2011, the Board of
24Education's total required contribution to the Fund for fiscal
25year 2011 under this Section is $187,000,000.
26    (ii) Notwithstanding any other provision of this Section,

 

 

SB3793- 32 -LRB101 20236 NHT 69776 b

1the Board of Education's total required contribution to the
2Fund for fiscal year 2012 under this Section is $192,000,000.
3    (iii) Notwithstanding any other provision of this Section,
4the Board of Education's total required contribution to the
5Fund for fiscal year 2013 under this Section is $196,000,000.
6    (iv) For fiscal years 2014 through 2059, the minimum
7contribution to the Fund to be made by the Board of Education
8in each fiscal year shall be an amount determined by the Fund
9to be sufficient to bring the total assets of the Fund up to
1090% of the total actuarial liabilities of the Fund by the end
11of fiscal year 2059, including, beginning with fiscal year
122021, an amount equal to the Board of Education's employer
13normal cost as determined by the Fund pursuant to subsection
14(i) of Section 17-127 of this Code. In making these
15determinations, the required Board of Education contribution
16shall be calculated each year as a level percentage of the
17applicable employee payrolls over the years remaining to and
18including fiscal year 2059 and shall be determined under the
19projected unit credit actuarial cost method.
20    (v) Beginning in fiscal year 2060, the minimum Board of
21Education contribution for each fiscal year shall be the amount
22needed to maintain the total assets of the Fund at 90% of the
23total actuarial liabilities of the Fund.
24    (vi) Notwithstanding any other provision of this
25subsection (b), for any fiscal year, the contribution to the
26Fund from the Board of Education shall not be required to be in

 

 

SB3793- 33 -LRB101 20236 NHT 69776 b

1excess of the amount calculated as needed to maintain the
2assets (or cause the assets to be) at the 90% level by the end
3of the fiscal year.
4    (vii) Any contribution by the State to or for the benefit
5of the Fund, including, without limitation, as referred to
6under Section 17-127, shall be a credit against any
7contribution required to be made by the Board of Education
8under this subsection (b).
9    (c) The Board shall determine the amount of Board of
10Education contributions required for each fiscal year on the
11basis of the actuarial tables and other assumptions adopted by
12the Board and the recommendations of the actuary, in order to
13meet the minimum contribution requirements of subsections (a)
14and (b). Annually, on or before February 28, the Board shall
15certify to the Board of Education the amount of the required
16Board of Education contribution for the coming fiscal year. The
17certification shall include a copy of the actuarial
18recommendations upon which it is based.
19(Source: P.A. 96-889, eff. 4-14-10.)
 
20    Section 10. The State Pension Funds Continuing
21Appropriation Act is amended by changing Section 1.1 and by
22adding Section 1.10 as follows:
 
23    (40 ILCS 15/1.1)
24    Sec. 1.1. Appropriations to certain retirement systems.

 

 

SB3793- 34 -LRB101 20236 NHT 69776 b

1    (a) There is hereby appropriated from the General Revenue
2Fund to the General Assembly Retirement System, on a continuing
3monthly basis, the amount, if any, by which the total available
4amount of all other appropriations to that retirement system
5for the payment of State contributions is less than the total
6amount of the vouchers for required State contributions
7lawfully submitted by the retirement system for that month
8under Section 2-134 of the Illinois Pension Code.
9    (b) There is hereby appropriated from the General Revenue
10Fund to the State Universities Retirement System, on a
11continuing monthly basis, the amount, if any, by which the
12total available amount of all other appropriations to that
13retirement system for the payment of State contributions,
14including any deficiency in the required contributions of the
15optional retirement program established under Section 15-158.2
16of the Illinois Pension Code, is less than the total amount of
17the vouchers for required State contributions lawfully
18submitted by the retirement system for that month under Section
1915-165 of the Illinois Pension Code.
20    (c) There is hereby appropriated from the Common School
21Fund to the Teachers' Retirement System of the State of
22Illinois, on a continuing monthly basis, the amount, if any, by
23which the total available amount of all other appropriations to
24that retirement system for the payment of State contributions
25is less than the total amount of the vouchers for required
26State contributions lawfully submitted by the retirement

 

 

SB3793- 35 -LRB101 20236 NHT 69776 b

1system for that month under Section 16-158 of the Illinois
2Pension Code.
3    (d) There is hereby appropriated from the General Revenue
4Fund to the Judges Retirement System of Illinois, on a
5continuing monthly basis, the amount, if any, by which the
6total available amount of all other appropriations to that
7retirement system for the payment of State contributions is
8less than the total amount of the vouchers for required State
9contributions lawfully submitted by the retirement system for
10that month under Section 18-140 of the Illinois Pension Code.
11    (e) The continuing appropriations provided by subsections
12(a), (b), (c), and (d) of this Section shall first be available
13in State fiscal year 1996. The continuing appropriations
14provided by subsection (h) of this Section shall first be
15available as provided in that subsection (h).
16    (f) For State fiscal year 2010 only, the continuing
17appropriations provided by this Section are equal to the amount
18certified by each System on or before December 31, 2008, less
19(i) the gross proceeds of the bonds sold in fiscal year 2010
20under the authorization contained in subsection (a) of Section
217.2 of the General Obligation Bond Act and (ii) any amounts
22received from the State Pensions Fund.
23    (g) For State fiscal year 2011 only, the continuing
24appropriations provided by this Section are equal to the amount
25certified by each System on or before April 1, 2011, less (i)
26the gross proceeds of the bonds sold in fiscal year 2011 under

 

 

SB3793- 36 -LRB101 20236 NHT 69776 b

1the authorization contained in subsection (a) of Section 7.2 of
2the General Obligation Bond Act and (ii) any amounts received
3from the State Pensions Fund.
4    (h) There is hereby appropriated from the Common School
5Fund to the Public School Teachers' Pension and Retirement Fund
6of Chicago, on a continuing basis, the amount, if any, by which
7the total available amount of all other State appropriations to
8that Retirement Fund for the payment of State contributions
9under Section 17-127 of the Illinois Pension Code is less than
10the total amount of the vouchers for required State
11contributions lawfully submitted by the Retirement Fund or the
12State Board of Education, under that Section 17-127.
13    (i) There is hereby appropriated from the Common School
14Fund to the State Board of Education, on a continuing annual
15basis in each State fiscal year beginning with State fiscal
16year 2021, the amount certified by the Public School Teachers'
17Pension and Retirement Fund of Chicago pursuant to subsection
18(i) of Section 17-127 of the Illinois Pension Code for the
19employer normal cost paid or owed by the board of education of
20a school district organized under Article 34 of the School
21Code; provided that the amount appropriated under this
22subsection (i) after State fiscal year 2021 shall be no less
23than the amount appropriated in State fiscal year 2021. The
24State Board of Education shall distribute the certified amount
25it receives under this subsection (i) pursuant to the
26provisions of subsection (e) of Section 18-8.15 of the School

 

 

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1Code.
2(Source: P.A. 100-465, eff. 8-31-17.)
 
3    (40 ILCS 15/1.10 new)
4    Sec. 1.10. Accelerating Equity appropriations to school
5districts. There is hereby appropriated from the Common School
6Fund to the State Board of Education, on a continuing annual
7basis in each State fiscal year beginning with State fiscal
8year 2021, the amount certified by the Teachers' Retirement
9System of the State of Illinois pursuant to subsection (b-5) of
10Section 16-158 of the Illinois Pension Code; provided that the
11amount appropriated under this Section after State fiscal year
122021 shall be no less than the amount appropriated in State
13fiscal year 2021. The State Board of Education shall distribute
14the certified amount it receives under this Section pursuant to
15the provisions of subsection (e) of Section 18-8.15 of the
16School Code.
 
17    Section 15. The School Code is amended by changing Section
1818-8.15 as follows:
 
19    (105 ILCS 5/18-8.15)
20    Sec. 18-8.15. Evidence-Based Funding Evidence-based
21funding for student success for the 2017-2018 and subsequent
22school years.
23    (a) General provisions.

 

 

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1        (1) The purpose of this Section is to ensure that, by
2    June 30, 2027 and beyond, this State has a kindergarten
3    through grade 12 public education system with the capacity
4    to ensure the educational development of all persons to the
5    limits of their capacities in accordance with Section 1 of
6    Article X of the Constitution of the State of Illinois. To
7    accomplish that objective, this Section creates a method of
8    funding public education that is evidence-based; is
9    sufficient to ensure every student receives a meaningful
10    opportunity to learn irrespective of race, ethnicity,
11    sexual orientation, gender, or community-income level; and
12    is sustainable and predictable. When fully funded under
13    this Section, every school shall have the resources, based
14    on what the evidence indicates is needed, to:
15            (A) provide all students with a high quality
16        education that offers the academic, enrichment, social
17        and emotional support, technical, and career-focused
18        programs that will allow them to become competitive
19        workers, responsible parents, productive citizens of
20        this State, and active members of our national
21        democracy;
22            (B) ensure all students receive the education they
23        need to graduate from high school with the skills
24        required to pursue post-secondary education and
25        training for a rewarding career;
26            (C) reduce, with a goal of eliminating, the

 

 

SB3793- 39 -LRB101 20236 NHT 69776 b

1        achievement gap between at-risk and non-at-risk
2        students by raising the performance of at-risk
3        students and not by reducing standards; and
4            (D) ensure this State satisfies its obligation to
5        assume the primary responsibility to fund public
6        education and simultaneously relieve the
7        disproportionate burden placed on local property taxes
8        to fund schools.
9        (2) The Evidence-Based Funding evidence-based funding
10    formula under this Section shall be applied to all
11    Organizational Units in this State. The Evidence-Based
12    Funding evidence-based funding formula outlined in this
13    Section Act is based on the formula outlined in Senate Bill
14    1 of the 100th General Assembly, as passed by both
15    legislative chambers. As further defined and described in
16    this Section, there are 4 major components of the
17    Evidence-Based Funding evidence-based funding model:
18            (A) First, the model calculates a unique Adequacy
19        Target adequacy target for each Organizational Unit in
20        this State that considers the costs to implement
21        research-based activities, the unit's student
22        demographics, and regional wage differences
23        difference.
24            (B) Second, the model calculates each
25        Organizational Unit's Local Capacity local capacity,
26        or the amount each Organizational Unit is assumed to

 

 

SB3793- 40 -LRB101 20236 NHT 69776 b

1        contribute toward towards its Adequacy Target adequacy
2        target from local resources.
3            (C) Third, the model calculates how much funding
4        the State currently contributes to the Organizational
5        Unit, and adds that to the unit's Local Capacity local
6        capacity to determine the unit's overall current
7        adequacy of funding.
8            (D) Finally, the model's distribution method
9        allocates new State funding to those Organizational
10        Units that are least well-funded, considering both
11        Local Capacity local capacity and State funding, in
12        relation to their Adequacy Target adequacy target.
13        (3) An Organizational Unit receiving any funding under
14    this Section may apply those funds to any fund so received
15    for which that Organizational Unit is authorized to make
16    expenditures by law.
17        (4) As used in this Section, the following terms shall
18    have the meanings ascribed in this paragraph (4):
19        "Adequacy Target" is defined in paragraph (1) of
20    subsection (b) of this Section.
21        "Adjusted EAV" is defined in paragraph (4) of
22    subsection (d) of this Section.
23        "Adjusted Local Capacity Target" is defined in
24    paragraph (3) of subsection (c) of this Section.
25        "Adjusted Operating Tax Rate" means a tax rate for all
26    Organizational Units, for which the State Superintendent

 

 

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1    shall calculate and subtract for the Operating Tax Rate a
2    transportation rate based on total expenses for
3    transportation services under this Code, as reported on the
4    most recent Annual Financial Report in Pupil
5    Transportation Services, function 2550 in both the
6    Education and Transportation funds and functions 4110 and
7    4120 in the Transportation fund, less any corresponding
8    fiscal year State of Illinois scheduled payments excluding
9    net adjustments for prior years for regular, vocational, or
10    special education transportation reimbursement pursuant to
11    Section 29-5 or subsection (b) of Section 14-13.01 of this
12    Code divided by the Adjusted EAV. If an Organizational
13    Unit's corresponding fiscal year State of Illinois
14    scheduled payments excluding net adjustments for prior
15    years for regular, vocational, or special education
16    transportation reimbursement pursuant to Section 29-5 or
17    subsection (b) of Section 14-13.01 of this Code exceed the
18    total transportation expenses, as defined in this
19    paragraph, no transportation rate shall be subtracted from
20    the Operating Tax Rate.
21        "Allocation Rate" is defined in paragraph (3) of
22    subsection (g) of this Section.
23        "Alternative School" means a public school that is
24    created and operated by a regional superintendent of
25    schools and approved by the State Board.
26        "Applicable Tax Rate" is defined in paragraph (1) of

 

 

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1    subsection (d) of this Section.
2        "Assessment" means any of those benchmark, progress
3    monitoring, formative, diagnostic, and other assessments,
4    in addition to the State accountability assessment, that
5    assist teachers' needs in understanding the skills and
6    meeting the needs of the students they serve.
7        "Assistant principal" means a school administrator
8    duly endorsed to be employed as an assistant principal in
9    this State.
10        "At-risk student" means a student who is at risk of not
11    meeting the Illinois Learning Standards or not graduating
12    from elementary or high school and who demonstrates a need
13    for vocational support or social services beyond that
14    provided by the regular school program. All students
15    included in an Organizational Unit's Low-Income Count, as
16    well as all English learner and disabled students attending
17    the Organizational Unit, shall be considered at-risk
18    students under this Section.
19        "Average Student Enrollment" or "ASE" for fiscal year
20    2018 means, for an Organizational Unit, the greater of the
21    average number of students (grades K through 12) reported
22    to the State Board as enrolled in the Organizational Unit
23    on October 1 in the immediately preceding school year, plus
24    the pre-kindergarten students who receive special
25    education services of 2 or more hours a day as reported to
26    the State Board on December 1 in the immediately preceding

 

 

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1    school year, or the average number of students (grades K
2    through 12) reported to the State Board as enrolled in the
3    Organizational Unit on October 1, plus the
4    pre-kindergarten students who receive special education
5    services of 2 or more hours a day as reported to the State
6    Board on December 1, for each of the immediately preceding
7    3 school years. For fiscal year 2019 and each subsequent
8    fiscal year, "Average Student Enrollment" or "ASE" means,
9    for an Organizational Unit, the greater of the average
10    number of students (grades K through 12) reported to the
11    State Board as enrolled in the Organizational Unit on
12    October 1 and March 1 in the immediately preceding school
13    year, plus the pre-kindergarten students who receive
14    special education services as reported to the State Board
15    on October 1 and March 1 in the immediately preceding
16    school year, or the average number of students (grades K
17    through 12) reported to the State Board as enrolled in the
18    Organizational Unit on October 1 and March 1, plus the
19    pre-kindergarten students who receive special education
20    services as reported to the State Board on October 1 and
21    March 1, for each of the immediately preceding 3 school
22    years. For the purposes of this definition, "enrolled in
23    the Organizational Unit" means the number of students
24    reported to the State Board who are enrolled in schools
25    within the Organizational Unit that the student attends or
26    would attend if not placed or transferred to another school

 

 

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1    or program to receive needed services. For the purposes of
2    calculating "ASE", all students, grades K through 12,
3    excluding those attending kindergarten for a half day and
4    students attending an alternative education program
5    operated by a regional office of education or intermediate
6    service center, shall be counted as 1.0. All students
7    attending kindergarten for a half day shall be counted as
8    0.5, unless in 2017 by June 15 or by March 1 in subsequent
9    years, the school district reports to the State Board of
10    Education the intent to implement full-day kindergarten
11    district-wide for all students, then all students
12    attending kindergarten shall be counted as 1.0. Special
13    education pre-kindergarten students shall be counted as
14    0.5 each. If the State Board does not collect or has not
15    collected both an October 1 and March 1 enrollment count by
16    grade or a December 1 collection of special education
17    pre-kindergarten students as of August 31, 2017 (the
18    effective date of Public Act 100-465) this amendatory Act
19    of the 100th General Assembly, it shall establish such
20    collection for all future years. For any year in which
21    where a count by grade level was collected only once, that
22    count shall be used as the single count available for
23    computing a 3-year average ASE. Funding for programs
24    operated by a regional office of education or an
25    intermediate service center must be calculated using the
26    Evidence-Based Funding evidence-based funding formula

 

 

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1    under this Section for the 2019-2020 school year and each
2    subsequent school year until separate adequacy formulas
3    are developed and adopted for each type of program. ASE for
4    a program operated by a regional office of education or an
5    intermediate service center must be determined by the March
6    1 enrollment for the program. For the 2019-2020 school
7    year, the ASE used in the calculation must be the
8    first-year ASE and, in that year only, the assignment of
9    students served by a regional office of education or
10    intermediate service center shall not result in a reduction
11    of the March enrollment for any school district. For the
12    2020-2021 school year, the ASE must be the greater of the
13    current-year ASE or the 2-year average ASE. Beginning with
14    the 2021-2022 school year, the ASE must be the greater of
15    the current-year ASE or the 3-year average ASE. School
16    districts shall submit the data for the ASE calculation to
17    the State Board within 45 days of the dates required in
18    this Section for submission of enrollment data in order for
19    it to be included in the ASE calculation. For fiscal year
20    2018 only, the ASE calculation shall include only
21    enrollment taken on October 1.
22        "Base Funding Guarantee" is defined in paragraph (10)
23    of subsection (g) of this Section.
24        "Base Funding Minimum" is defined in subsection (e) of
25    this Section.
26        "Base Tax Year" means the property tax levy year used

 

 

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1    to calculate the Budget Year allocation of primary State
2    aid.
3        "Base Tax Year's Extension" means the product of the
4    equalized assessed valuation utilized by the county clerk
5    in the Base Tax Year multiplied by the limiting rate as
6    calculated by the county clerk and defined in PTELL.
7        "Bilingual Education Allocation" means the amount of
8    an Organizational Unit's final Adequacy Target
9    attributable to bilingual education divided by the
10    Organizational Unit's final Adequacy Target, the product
11    of which shall be multiplied by the amount of new funding
12    received pursuant to this Section. An Organizational
13    Unit's final Adequacy Target attributable to bilingual
14    education shall include all additional investments in
15    English learner students' adequacy elements.
16        "Budget Year" means the school year for which primary
17    State aid is calculated and awarded under this Section.
18        "Central office" means individual administrators and
19    support service personnel charged with managing the
20    instructional programs, business and operations, and
21    security of the Organizational Unit.
22        "Comparable Wage Index" or "CWI" means a regional cost
23    differentiation metric that measures systemic, regional
24    variations in the salaries of college graduates who are not
25    educators. The CWI utilized for this Section shall, for the
26    first 3 years of Evidence-Based Funding implementation, be

 

 

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1    the CWI initially developed by the National Center for
2    Education Statistics, as most recently updated by Texas A &
3    M University. In the fourth and subsequent years of
4    Evidence-Based Funding implementation, the State
5    Superintendent shall re-determine the CWI using a similar
6    methodology to that identified in the Texas A & M
7    University study, with adjustments made no less frequently
8    than once every 5 years.
9        "Computer technology and equipment" means computers
10    servers, notebooks, network equipment, copiers, printers,
11    instructional software, security software, curriculum
12    management courseware, and other similar materials and
13    equipment.
14        "Computer technology and equipment investment
15    allocation" means the final Adequacy Target amount of an
16    Organizational Unit assigned to Tier 1 or Tier 2 in the
17    prior school year attributable to the additional $285.50
18    per student computer technology and equipment investment
19    grant divided by the Organizational Unit's final Adequacy
20    Target, the result of which shall be multiplied by the
21    amount of new funding received pursuant to this Section. An
22    Organizational Unit assigned to a Tier 1 or Tier 2 final
23    Adequacy Target attributable to the received computer
24    technology and equipment investment grant shall include
25    all additional investments in computer technology and
26    equipment adequacy elements.

 

 

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1        "Core subject" means mathematics; science; reading,
2    English, writing, and language arts; history and social
3    studies; world languages; and subjects taught as Advanced
4    Placement in high schools.
5        "Core teacher" means a regular classroom teacher in
6    elementary schools and teachers of a core subject in middle
7    and high schools.
8        "Core Intervention teacher (tutor)" means a licensed
9    teacher providing one-on-one or small group tutoring to
10    students struggling to meet proficiency in core subjects.
11        "CPPRT" means corporate personal property replacement
12    tax funds paid to an Organizational Unit during the
13    calendar year one year before the calendar year in which a
14    school year begins, pursuant to "An Act in relation to the
15    abolition of ad valorem personal property tax and the
16    replacement of revenues lost thereby, and amending and
17    repealing certain Acts and parts of Acts in connection
18    therewith", certified August 14, 1979, as amended (Public
19    Act 81-1st S.S.-1).
20        "EAV" means equalized assessed valuation as defined in
21    paragraph (2) of subsection (d) of this Section and
22    calculated in accordance with paragraph (3) of subsection
23    (d) of this Section.
24        "ECI" means the Bureau of Labor Statistics' national
25    employment cost index for civilian workers in educational
26    services in elementary and secondary schools on a

 

 

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1    cumulative basis for the 12-month calendar year preceding
2    the fiscal year of the Evidence-Based Funding calculation.
3        "EIS Data" means the employment information system
4    data maintained by the State Board on educators within
5    Organizational Units.
6        "Employee benefits" means health, dental, and vision
7    insurance offered to employees of an Organizational Unit,
8    the costs associated with the statutorily required payment
9    of the normal cost of the Organizational Unit's teacher
10    pensions as set forth in subparagraph (U) of paragraph (2)
11    of subsection (b) of this Section, Social Security employer
12    contributions, and Illinois Municipal Retirement Fund
13    employer contributions.
14        "English learner" or "EL" means a child included in the
15    definition of "English learners" under Section 14C-2 of
16    this Code participating in a program of transitional
17    bilingual education or a transitional program of
18    instruction meeting the requirements and program
19    application procedures of Article 14C of this Code. For the
20    purposes of collecting the number of EL students enrolled,
21    the same collection and calculation methodology as defined
22    above for "ASE" shall apply to English learners, with the
23    exception that EL student enrollment shall include
24    students in grades pre-kindergarten through 12.
25        "Essential Elements" means those elements, resources,
26    and educational programs that have been identified through

 

 

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1    academic research as necessary to improve student success,
2    improve academic performance, close achievement gaps, and
3    provide for other per student costs related to the delivery
4    and leadership of the Organizational Unit, as well as the
5    maintenance and operations of the unit, and which are
6    specified in paragraph (2) of subsection (b) of this
7    Section.
8        "Evidence-Based Funding" means State funding provided
9    to an Organizational Unit pursuant to this Section.
10        "Extended day" means academic and enrichment programs
11    provided to students outside the regular school day before
12    and after school or during non-instructional times during
13    the school day.
14        "Extension Limitation Ratio" means a numerical ratio
15    in which the numerator is the Base Tax Year's Extension and
16    the denominator is the Preceding Tax Year's Extension.
17        "Final Percent of Adequacy" is defined in paragraph (4)
18    of subsection (f) of this Section.
19        "Final Resources" is defined in paragraph (3) of
20    subsection (f) of this Section.
21        "Full-time equivalent" or "FTE" means the full-time
22    equivalency compensation for staffing the relevant
23    position at an Organizational Unit.
24        "Funding Gap" is defined in paragraph (1) of subsection
25    (g).
26        "Guidance counselor" means a licensed guidance

 

 

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1    counselor who provides guidance and counseling support for
2    students within an Organizational Unit.
3        "Hybrid District" means a partial elementary unit
4    district created pursuant to Article 11E of this Code.
5        "Instructional assistant" means a core or special
6    education, non-licensed employee who assists a teacher in
7    the classroom and provides academic support to students.
8        "Instructional facilitator" means a qualified teacher
9    or licensed teacher leader who facilitates and coaches
10    continuous improvement in classroom instruction; provides
11    instructional support to teachers in the elements of
12    research-based instruction or demonstrates the alignment
13    of instruction with curriculum standards and assessment
14    tools; develops or coordinates instructional programs or
15    strategies; develops and implements training; chooses
16    standards-based instructional materials; provides teachers
17    with an understanding of current research; serves as a
18    mentor, site coach, curriculum specialist, or lead
19    teacher; or otherwise works with fellow teachers, in
20    collaboration, to use data to improve instructional
21    practice or develop model lessons.
22        "Instructional materials" means relevant instructional
23    materials for student instruction, including, but not
24    limited to, textbooks, consumable workbooks, laboratory
25    equipment, library books, and other similar materials.
26        "Laboratory School" means a public school that is

 

 

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1    created and operated by a public university and approved by
2    the State Board.
3        "Librarian" means a teacher with an endorsement as a
4    library information specialist or another individual whose
5    primary responsibility is overseeing library resources
6    within an Organizational Unit.
7        "Limiting rate for Hybrid Districts" means the
8    combined elementary school and high school limiting
9    limited rates.
10        "Local Capacity" is defined in paragraph (1) of
11    subsection (c) of this Section.
12        "Local Capacity Percentage" is defined in subparagraph
13    (A) of paragraph (2) of subsection (c) of this Section.
14        "Local Capacity Ratio" is defined in subparagraph (B)
15    of paragraph (2) of subsection (c) of this Section.
16        "Local Capacity Target" is defined in paragraph (2) of
17    subsection (c) of this Section.
18        "Low-Income Count" means, for an Organizational Unit
19    in a fiscal year, the higher of the average number of
20    students for the prior school year or the immediately
21    preceding 3 school years who, as of July 1 of the
22    immediately preceding fiscal year (as determined by the
23    Department of Human Services), are eligible for at least
24    one of the following low-income low income programs:
25    Medicaid, the Children's Health Insurance Program,
26    Temporary Assistance for Needy Families (TANF), or the

 

 

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1    Supplemental Nutrition Assistance Program, excluding
2    pupils who are eligible for services provided by the
3    Department of Children and Family Services. Until such time
4    that grade level low-income populations become available,
5    grade level low-income populations shall be determined by
6    applying the low-income percentage to total student
7    enrollments by grade level. The low-income percentage is
8    determined by dividing the Low-Income Count by the Average
9    Student Enrollment. The low-income percentage for programs
10    operated by a regional office of education or an
11    intermediate service center must be set to the weighted
12    average of the low-income percentages of all of the school
13    districts in the service region. The weighted low-income
14    percentage is the result of multiplying the low-income
15    percentage of each school district served by the regional
16    office of education or intermediate service center by each
17    school district's Average Student Enrollment, summarizing
18    those products and dividing the total by the total Average
19    Student Enrollment for the service region.
20        "Maintenance and operations" means custodial services,
21    facility and ground maintenance, facility operations,
22    facility security, routine facility repairs, and other
23    similar services and functions.
24        "Minimum Funding Level" is defined in paragraph (9) of
25    subsection (g) of this Section.
26        "New Property Tax Relief Pool Funds" means, for any

 

 

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1    given fiscal year, all State funds appropriated under
2    Section 2-3.170 of the School Code.
3        "New State Funds" means, for a given school year, all
4    State funds appropriated for Evidence-Based Funding in
5    excess of the amount needed to fund the Base Funding
6    Minimum for all Organizational Units in that school year.
7        "Net State Contribution Target" means, for a given
8    school year, the amount of State funds that would be
9    necessary to fully meet the Adequacy Target of an
10    Operational Unit minus the Preliminary Resources available
11    to each unit.
12        "Nurse" means an individual licensed as a certified
13    school nurse, in accordance with the rules established for
14    nursing services by the State Board, who is an employee of
15    and is available to provide health care-related services
16    for students of an Organizational Unit.
17        "Operating Tax Rate" means the rate utilized in the
18    previous year to extend property taxes for all purposes,
19    except, Bond and Interest, Summer School, Rent, Capital
20    Improvement, and Vocational Education Building purposes.
21    For Hybrid Districts, the Operating Tax Rate shall be the
22    combined elementary and high school rates utilized in the
23    previous year to extend property taxes for all purposes,
24    except, Bond and Interest, Summer School, Rent, Capital
25    Improvement, and Vocational Education Building purposes.
26        "Organizational Unit" means a Laboratory School or any

 

 

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1    public school district that is recognized as such by the
2    State Board and that contains elementary schools typically
3    serving kindergarten through 5th grades, middle schools
4    typically serving 6th through 8th grades, high schools
5    typically serving 9th through 12th grades, a program
6    established under Section 2-3.66 or 2-3.41, or a program
7    operated by a regional office of education or an
8    intermediate service center under Article 13A or 13B. The
9    General Assembly acknowledges that the actual grade levels
10    served by a particular Organizational Unit may vary
11    slightly from what is typical.
12        "Organizational Unit CWI" is determined by calculating
13    the CWI in the region and original county in which an
14    Organizational Unit's primary administrative office is
15    located as set forth in this paragraph, provided that if
16    the Organizational Unit CWI as calculated in accordance
17    with this paragraph is less than 0.9, the Organizational
18    Unit CWI shall be increased to 0.9. Each county's current
19    CWI value shall be adjusted based on the CWI value of that
20    county's neighboring Illinois counties, to create a
21    "weighted adjusted index value". This shall be calculated
22    by summing the CWI values of all of a county's adjacent
23    Illinois counties and dividing by the number of adjacent
24    Illinois counties, then taking the weighted value of the
25    original county's CWI value and the adjacent Illinois
26    county average. To calculate this weighted value, if the

 

 

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1    number of adjacent Illinois counties is greater than 2, the
2    original county's CWI value will be weighted at 0.25 and
3    the adjacent Illinois county average will be weighted at
4    0.75. If the number of adjacent Illinois counties is 2, the
5    original county's CWI value will be weighted at 0.33 and
6    the adjacent Illinois county average will be weighted at
7    0.66. The greater of the county's current CWI value and its
8    weighted adjusted index value shall be used as the
9    Organizational Unit CWI.
10        "Preceding Tax Year" means the property tax levy year
11    immediately preceding the Base Tax Year.
12        "Preceding Tax Year's Extension" means the product of
13    the equalized assessed valuation utilized by the county
14    clerk in the Preceding Tax Year multiplied by the Operating
15    Tax Rate.
16        "Preliminary Percent of Adequacy" is defined in
17    paragraph (2) of subsection (f) of this Section.
18        "Preliminary Resources" is defined in paragraph (2) of
19    subsection (f) of this Section.
20        "Principal" means a school administrator duly endorsed
21    to be employed as a principal in this State.
22        "Professional development" means training programs for
23    licensed staff in schools, including, but not limited to,
24    programs that assist in implementing new curriculum
25    programs, provide data focused or academic assessment data
26    training to help staff identify a student's weaknesses and

 

 

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1    strengths, target interventions, improve instruction,
2    encompass instructional strategies for English learner,
3    gifted, or at-risk students, address inclusivity, cultural
4    sensitivity, or implicit bias, or otherwise provide
5    professional support for licensed staff.
6        "Prototypical" means 450 special education
7    pre-kindergarten and kindergarten through grade 5 students
8    for an elementary school, 450 grade 6 through 8 students
9    for a middle school, and 600 grade 9 through 12 students
10    for a high school.
11        "PTELL" means the Property Tax Extension Limitation
12    Law.
13        "PTELL EAV" is defined in paragraph (4) of subsection
14    (d) of this Section.
15        "Pupil support staff" means a nurse, psychologist,
16    social worker, family liaison personnel, or other staff
17    member who provides support to at-risk or struggling
18    students.
19        "Real Receipts" is defined in paragraph (1) of
20    subsection (d) of this Section.
21        "Regionalization Factor" means, for a particular
22    Organizational Unit, the figure derived by dividing the
23    Organizational Unit CWI by the Statewide Weighted CWI.
24        "School site staff" means the primary school secretary
25    and any additional clerical personnel assigned to a school.
26        "Special education" means special educational

 

 

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1    facilities and services, as defined in Section 14-1.08 of
2    this Code.
3        "Special Education Allocation" means the amount of an
4    Organizational Unit's final Adequacy Target attributable
5    to special education divided by the Organizational Unit's
6    final Adequacy Target, the product of which shall be
7    multiplied by the amount of new funding received pursuant
8    to this Section. An Organizational Unit's final Adequacy
9    Target attributable to special education shall include all
10    special education investment adequacy elements.
11        "Specialist teacher" means a teacher who provides
12    instruction in subject areas not included in core subjects,
13    including, but not limited to, art, music, physical
14    education, health, driver education, career-technical
15    education, and such other subject areas as may be mandated
16    by State law or provided by an Organizational Unit.
17        "Specially Funded Unit" means an Alternative School,
18    safe school, Department of Juvenile Justice school,
19    special education cooperative or entity recognized by the
20    State Board as a special education cooperative,
21    State-approved charter school, or alternative learning
22    opportunities program that received direct funding from
23    the State Board during the 2016-2017 school year through
24    any of the funding sources included within the calculation
25    of the Base Funding Minimum or Glenwood Academy.
26        "Supplemental Grant Funding" means supplemental

 

 

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1    general State aid funding received by an Organizational
2    Organization Unit during the 2016-2017 school year
3    pursuant to subsection (H) of Section 18-8.05 of this Code
4    (now repealed).
5        "State Adequacy Level" is the sum of the Adequacy
6    Targets of all Organizational Units.
7        "State Board" means the State Board of Education.
8        "State Superintendent" means the State Superintendent
9    of Education.
10        "Statewide Weighted CWI" means a figure determined by
11    multiplying each Organizational Unit CWI times the ASE for
12    that Organizational Unit creating a weighted value,
13    summing all Organizational Units' Unit's weighted values,
14    and dividing by the total ASE of all Organizational Units,
15    thereby creating an average weighted index.
16        "Student activities" means non-credit producing
17    after-school programs, including, but not limited to,
18    clubs, bands, sports, and other activities authorized by
19    the school board of the Organizational Unit.
20        "Substitute teacher" means an individual teacher or
21    teaching assistant who is employed by an Organizational
22    Unit and is temporarily serving the Organizational Unit on
23    a per diem or per period-assignment basis to replace
24    replacing another staff member.
25        "Summer school" means academic and enrichment programs
26    provided to students during the summer months outside of

 

 

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1    the regular school year.
2        "Supervisory aide" means a non-licensed staff member
3    who helps in supervising students of an Organizational
4    Unit, but does so outside of the classroom, in situations
5    such as, but not limited to, monitoring hallways and
6    playgrounds, supervising lunchrooms, or supervising
7    students when being transported in buses serving the
8    Organizational Unit.
9        "Target Ratio" is defined in paragraph (4) of
10    subsection (g).
11        "Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined
12    in paragraph (3) of subsection (g).
13        "Tier 1 Aggregate Funding", "Tier 2 Aggregate
14    Funding", "Tier 3 Aggregate Funding", and "Tier 4 Aggregate
15    Funding" are defined in paragraph (1) of subsection (g).
16    (b) Adequacy Target calculation.
17        (1) Each Organizational Unit's Adequacy Target is the
18    sum of the Organizational Unit's cost of providing
19    Essential Elements, as calculated in accordance with this
20    subsection (b), with the salary amounts in the Essential
21    Elements multiplied by a Regionalization Factor calculated
22    pursuant to paragraph (3) of this subsection (b).
23        (2) The Essential Elements are attributable on a pro
24    rata basis related to defined subgroups of the ASE of each
25    Organizational Unit as specified in this paragraph (2),
26    with investments and FTE positions pro rata funded based on

 

 

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1    ASE counts in excess or less than the thresholds set forth
2    in this paragraph (2). The method for calculating
3    attributable pro rata costs and the defined subgroups
4    thereto are as follows:
5            (A) Core class size investments. Each
6        Organizational Unit shall receive the funding required
7        to support that number of FTE core teacher positions as
8        is needed to keep the respective class sizes of the
9        Organizational Unit to the following maximum numbers:
10                (i) For grades kindergarten through 3, the
11            Organizational Unit shall receive funding required
12            to support one FTE core teacher position for every
13            15 Low-Income Count students in those grades and
14            one FTE core teacher position for every 20
15            non-Low-Income Count students in those grades.
16                (ii) For grades 4 through 12, the
17            Organizational Unit shall receive funding required
18            to support one FTE core teacher position for every
19            20 Low-Income Count students in those grades and
20            one FTE core teacher position for every 25
21            non-Low-Income Count students in those grades.
22            The number of non-Low-Income Count students in a
23        grade shall be determined by subtracting the
24        Low-Income students in that grade from the ASE of the
25        Organizational Unit for that grade.
26            (B) Specialist teacher investments. Each

 

 

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1        Organizational Unit shall receive the funding needed
2        to cover that number of FTE specialist teacher
3        positions that correspond to the following
4        percentages:
5                (i) if the Organizational Unit operates an
6            elementary or middle school, then 20.00% of the
7            number of the Organizational Unit's core teachers,
8            as determined under subparagraph (A) of this
9            paragraph (2); and
10                (ii) if such Organizational Unit operates a
11            high school, then 33.33% of the number of the
12            Organizational Unit's core teachers.
13            (C) Instructional facilitator investments. Each
14        Organizational Unit shall receive the funding needed
15        to cover one FTE instructional facilitator position
16        for every 200 combined ASE of pre-kindergarten
17        children with disabilities and all kindergarten
18        through grade 12 students of the Organizational Unit.
19            (D) Core intervention teacher (tutor) investments.
20        Each Organizational Unit shall receive the funding
21        needed to cover one FTE teacher position for each
22        prototypical elementary, middle, and high school.
23            (E) Substitute teacher investments. Each
24        Organizational Unit shall receive the funding needed
25        to cover substitute teacher costs that is equal to
26        5.70% of the minimum pupil attendance days required

 

 

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1        under Section 10-19 of this Code for all full-time
2        equivalent core, specialist, and intervention
3        teachers, school nurses, special education teachers
4        and instructional assistants, instructional
5        facilitators, and summer school and extended day
6        extended-day teacher positions, as determined under
7        this paragraph (2), at a salary rate of 33.33% of the
8        average salary for grade K through 12 teachers and
9        33.33% of the average salary of each instructional
10        assistant position.
11            (F) Core guidance counselor investments. Each
12        Organizational Unit shall receive the funding needed
13        to cover one FTE guidance counselor for each 450
14        combined ASE of pre-kindergarten children with
15        disabilities and all kindergarten through grade 5
16        students, plus one FTE guidance counselor for each 250
17        grades 6 through 8 ASE middle school students, plus one
18        FTE guidance counselor for each 250 grades 9 through 12
19        ASE high school students.
20            (G) Nurse investments. Each Organizational Unit
21        shall receive the funding needed to cover one FTE nurse
22        for each 750 combined ASE of pre-kindergarten children
23        with disabilities and all kindergarten through grade
24        12 students across all grade levels it serves.
25            (H) Supervisory aide investments. Each
26        Organizational Unit shall receive the funding needed

 

 

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1        to cover one FTE for each 225 combined ASE of
2        pre-kindergarten children with disabilities and all
3        kindergarten through grade 5 students, plus one FTE for
4        each 225 ASE middle school students, plus one FTE for
5        each 200 ASE high school students.
6            (I) Librarian investments. Each Organizational
7        Unit shall receive the funding needed to cover one FTE
8        librarian for each prototypical elementary school,
9        middle school, and high school and one FTE aide or
10        media technician for every 300 combined ASE of
11        pre-kindergarten children with disabilities and all
12        kindergarten through grade 12 students.
13            (J) Principal investments. Each Organizational
14        Unit shall receive the funding needed to cover one FTE
15        principal position for each prototypical elementary
16        school, plus one FTE principal position for each
17        prototypical middle school, plus one FTE principal
18        position for each prototypical high school.
19            (K) Assistant principal investments. Each
20        Organizational Unit shall receive the funding needed
21        to cover one FTE assistant principal position for each
22        prototypical elementary school, plus one FTE assistant
23        principal position for each prototypical middle
24        school, plus one FTE assistant principal position for
25        each prototypical high school.
26            (L) School site staff investments. Each

 

 

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1        Organizational Unit shall receive the funding needed
2        for one FTE position for each 225 ASE of
3        pre-kindergarten children with disabilities and all
4        kindergarten through grade 5 students, plus one FTE
5        position for each 225 ASE middle school students, plus
6        one FTE position for each 200 ASE high school students.
7            (M) Gifted investments. Each Organizational Unit
8        shall receive $40 per kindergarten through grade 12
9        ASE.
10            (N) Professional development investments. Each
11        Organizational Unit shall receive $125 per student of
12        the combined ASE of pre-kindergarten children with
13        disabilities and all kindergarten through grade 12
14        students for trainers and other professional
15        development-related expenses for supplies and
16        materials.
17            (O) Instructional material investments. Each
18        Organizational Unit shall receive $190 per student of
19        the combined ASE of pre-kindergarten children with
20        disabilities and all kindergarten through grade 12
21        students to cover instructional material costs.
22            (P) Assessment investments. Each Organizational
23        Unit shall receive $25 per student of the combined ASE
24        of pre-kindergarten children with disabilities and all
25        kindergarten through grade 12 students student to
26        cover assessment costs.

 

 

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1            (Q) Computer technology and equipment investments.
2        Each Organizational Unit shall receive $285.50 per
3        student of the combined ASE of pre-kindergarten
4        children with disabilities and all kindergarten
5        through grade 12 students to cover computer technology
6        and equipment costs. For the 2018-2019 school year and
7        subsequent school years, Organizational Units assigned
8        to Tier 1 and Tier 2 in the prior school year shall
9        receive an additional $285.50 per student of the
10        combined ASE of pre-kindergarten children with
11        disabilities and all kindergarten through grade 12
12        students to cover computer technology and equipment
13        costs in the Organizational Organization Unit's
14        Adequacy Target. The State Board may establish
15        additional requirements for Organizational Unit
16        expenditures of funds received pursuant to this
17        subparagraph (Q), including a requirement that funds
18        received pursuant to this subparagraph (Q) may be used
19        only for serving the technology needs of the district.
20        It is the intent of Public Act 100-465 this amendatory
21        Act of the 100th General Assembly that all Tier 1 and
22        Tier 2 districts receive the addition to their Adequacy
23        Target in the following year, subject to compliance
24        with the requirements of the State Board.
25            (R) Student activities investments. Each
26        Organizational Unit shall receive the following

 

 

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1        funding amounts to cover student activities: $100 per
2        kindergarten through grade 5 ASE student in elementary
3        school, plus $200 per ASE student in middle school,
4        plus $675 per ASE student in high school.
5            (S) Maintenance and operations investments. Each
6        Organizational Unit shall receive $1,038 per student
7        of the combined ASE of pre-kindergarten children with
8        disabilities and all kindergarten through grade 12
9        students for day-to-day maintenance and operations
10        expenditures, including salary, supplies, and
11        materials, as well as purchased services, but
12        excluding employee benefits. The proportion of salary
13        for the application of a Regionalization Factor and the
14        calculation of benefits is equal to $352.92.
15            (T) Central office investments. Each
16        Organizational Unit shall receive $742 per student of
17        the combined ASE of pre-kindergarten children with
18        disabilities and all kindergarten through grade 12
19        students to cover central office operations, including
20        administrators and classified personnel charged with
21        managing the instructional programs, business and
22        operations of the school district, and security
23        personnel. The proportion of salary for the
24        application of a Regionalization Factor and the
25        calculation of benefits is equal to $368.48.
26            (U) Employee benefit investments. Each

 

 

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1        Organizational Unit shall receive 30% of the total of
2        all salary-calculated elements of the Adequacy Target,
3        excluding substitute teachers and student activities
4        investments, to cover benefit costs. For central
5        office and maintenance and operations investments, the
6        benefit calculation shall be based upon the salary
7        proportion of each investment.
8            For fiscal year 2021 and each fiscal year
9        thereafter, the State Superintendent shall calculate
10        the employer normal cost of teacher pensions of each
11        Organizational Unit, other than a school district
12        organized under Article 34 of this Code, using the
13        applicable Regionalization Factor multiplied by the
14        salaries of the positions set forth in paragraph (3) of
15        this subsection (b) and the administrators and
16        classified personnel described in subparagraph (T) of
17        this paragraph (2) that are covered by Article 16 of
18        the Illinois Pension Code and the aggregate rate of the
19        normal cost for teacher pensions of all employers,
20        expressed as a percentage of projected payroll as
21        determined by the Teachers' Retirement System of the
22        State of Illinois pursuant to subsection (b-5) of
23        Section 16-158 of the Illinois Pension Code. The amount
24        calculated by the State Superintendent as the employer
25        normal cost of teacher pensions for the Organizational
26        Unit shall be added to the employee benefit investments

 

 

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1        specified under this subparagraph (U).
2            For fiscal year 2021 and each fiscal year
3        thereafter, the State Superintendent shall calculate
4        the employer normal cost of teacher pensions of a
5        school district organized under Article 34 of this Code
6        using the applicable Regionalization Factor multiplied
7        by the average salaries of positions set forth in
8        paragraph (3) of this subsection (b) and the
9        administrators and classified personnel described in
10        subparagraph (T) of this paragraph (2) that are covered
11        by Article 17 of the Illinois Pension Code and the rate
12        of the normal cost for teacher pensions, expressed as a
13        percentage of projected payroll as determined by the
14        Public School Teachers' Pension and Retirement Fund of
15        Chicago pursuant to subsection (i) of Section 17-127 of
16        the Illinois Pension Code. The amount calculated by the
17        State Superintendent as the employer normal cost of
18        teacher pensions for a school district organized under
19        Article 34 of this Code shall be added to the employee
20        benefit investments specified under this subparagraph
21        (U).
22            If at any time the responsibility for funding the
23        employer normal cost of teacher pensions is assigned to
24        school districts, then that amount certified by the
25        Teachers' Retirement System of the State of Illinois to
26        be paid by the Organizational Unit for the preceding

 

 

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1        school year shall be added to the benefit investment.
2        For any fiscal year in which a school district
3        organized under Article 34 of this Code is responsible
4        for paying the employer normal cost of teacher
5        pensions, then that amount of its employer normal cost
6        plus the amount for retiree health insurance as
7        certified by the Public School Teachers' Pension and
8        Retirement Fund of Chicago to be paid by the school
9        district for the preceding school year that is
10        statutorily required to cover employer normal costs
11        and the amount for retiree health insurance shall be
12        added to the 30% specified in this subparagraph (U).
13        The Teachers' Retirement System of the State of
14        Illinois and the Public School Teachers' Pension and
15        Retirement Fund of Chicago shall submit such
16        information as the State Superintendent may require
17        for the calculations set forth in this subparagraph
18        (U).
19            (V) Additional investments in low-income students.
20        In addition to and not in lieu of all other funding
21        under this paragraph (2), each Organizational Unit
22        shall receive funding based on the average teacher
23        salary for grades K through 12 to cover the costs of:
24                (i) one FTE intervention teacher (tutor)
25            position for every 125 Low-Income Count students;
26                (ii) one FTE pupil support staff position for

 

 

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1            every 125 Low-Income Count students;
2                (iii) one FTE extended day teacher position
3            for every 120 Low-Income Count students; and
4                (iv) one FTE summer school teacher position
5            for every 120 Low-Income Count students.
6            (W) Additional investments in English learner
7        students. In addition to and not in lieu of all other
8        funding under this paragraph (2), each Organizational
9        Unit shall receive funding based on the average teacher
10        salary for grades K through 12 to cover the costs of:
11                (i) one FTE intervention teacher (tutor)
12            position for every 125 English learner students;
13                (ii) one FTE pupil support staff position for
14            every 125 English learner students;
15                (iii) one FTE extended day teacher position
16            for every 120 English learner students;
17                (iv) one FTE summer school teacher position
18            for every 120 English learner students; and
19                (v) one FTE core teacher position for every 100
20            English learner students.
21            (X) Special education investments. Each
22        Organizational Unit shall receive funding based on the
23        average teacher salary for grades K through 12 to cover
24        special education as follows:
25                (i) one FTE teacher position for every 141
26            combined ASE of pre-kindergarten children with

 

 

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1            disabilities and all kindergarten through grade 12
2            students;
3                (ii) one FTE instructional assistant for every
4            141 combined ASE of pre-kindergarten children with
5            disabilities and all kindergarten through grade 12
6            students; and
7                (iii) one FTE psychologist position for every
8            1,000 combined ASE of pre-kindergarten children
9            with disabilities and all kindergarten through
10            grade 12 students.
11        (3) For calculating the salaries included within the
12    Essential Elements, the State Superintendent shall
13    annually calculate average salaries to the nearest dollar
14    using the employment information system data maintained by
15    the State Board, limited to public schools only and
16    excluding special education and vocational cooperatives,
17    schools operated by the Department of Juvenile Justice, and
18    charter schools, for the following positions:
19            (A) Teacher for grades K through 8.
20            (B) Teacher for grades 9 through 12.
21            (C) Teacher for grades K through 12.
22            (D) Guidance counselor for grades K through 8.
23            (E) Guidance counselor for grades 9 through 12.
24            (F) Guidance counselor for grades K through 12.
25            (G) Social worker.
26            (H) Psychologist.

 

 

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1            (I) Librarian.
2            (J) Nurse.
3            (K) Principal.
4            (L) Assistant principal.
5        For the purposes of this paragraph (3), "teacher"
6    includes core teachers, specialist and elective teachers,
7    instructional facilitators, tutors, special education
8    teachers, pupil support staff teachers, English learner
9    teachers, extended day extended-day teachers, and summer
10    school teachers. Where specific grade data is not required
11    for the Essential Elements, the average salary for
12    corresponding positions shall apply. For substitute
13    teachers, the average teacher salary for grades K through
14    12 shall apply.
15        For calculating the salaries included within the
16    Essential Elements for positions not included within EIS
17    Data, the following salaries shall be used in the first
18    year of implementation of Evidence-Based Funding:
19            (i) school site staff, $30,000; and
20            (ii) non-instructional assistant, instructional
21        assistant, library aide, library media tech, or
22        supervisory aide: $25,000.
23        In the second and subsequent years of implementation of
24    Evidence-Based Funding, the amounts in items (i) and (ii)
25    of this paragraph (3) shall annually increase by the ECI.
26        The salary amounts for the Essential Elements

 

 

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1    determined pursuant to subparagraphs (A) through (L), (S)
2    and (T), and (V) through (X) of paragraph (2) of subsection
3    (b) of this Section shall be multiplied by a
4    Regionalization Factor.
5    (c) Local Capacity capacity calculation.
6        (1) Each Organizational Unit's Local Capacity
7    represents an amount of funding it is assumed to contribute
8    toward its Adequacy Target for purposes of the
9    Evidence-Based Funding formula calculation. "Local
10    Capacity" means either (i) the Organizational Unit's Local
11    Capacity Target as calculated in accordance with paragraph
12    (2) of this subsection (c) if its Real Receipts are equal
13    to or less than its Local Capacity Target or (ii) the
14    Organizational Unit's Adjusted Local Capacity, as
15    calculated in accordance with paragraph (3) of this
16    subsection (c) if Real Receipts are more than its Local
17    Capacity Target.
18        (2) "Local Capacity Target" means, for an
19    Organizational Unit, that dollar amount that is obtained by
20    multiplying its Adequacy Target by its Local Capacity
21    Ratio.
22            (A) An Organizational Unit's Local Capacity
23        Percentage is the conversion of the Organizational
24        Unit's Local Capacity Ratio, as such ratio is
25        determined in accordance with subparagraph (B) of this
26        paragraph (2), into a cumulative distribution

 

 

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1        resulting in a percentile ranking to determine each
2        Organizational Unit's relative position to all other
3        Organizational Units in this State. The calculation of
4        Local Capacity Percentage is described in subparagraph
5        (C) of this paragraph (2).
6            (B) An Organizational Unit's Local Capacity Ratio
7        in a given year is the percentage obtained by dividing
8        its Adjusted EAV or PTELL EAV, whichever is less, by
9        its Adequacy Target, with the resulting ratio further
10        adjusted as follows:
11                (i) for Organizational Units serving grades
12            kindergarten through 12 and Hybrid Districts, no
13            further adjustments shall be made;
14                (ii) for Organizational Units serving grades
15            kindergarten through 8, the ratio shall be
16            multiplied by 9/13;
17                (iii) for Organizational Units serving grades
18            9 through 12, the Local Capacity Ratio shall be
19            multiplied by 4/13; and
20                (iv) for an Organizational Unit with a
21            different grade configuration than those specified
22            in items (i) through (iii) of this subparagraph
23            (B), the State Superintendent shall determine a
24            comparable adjustment based on the grades served.
25            (C) The Local Capacity Percentage is equal to the
26        percentile ranking of the district. Local Capacity

 

 

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1        Percentage converts each Organizational Unit's Local
2        Capacity Ratio to a cumulative distribution resulting
3        in a percentile ranking to determine each
4        Organizational Unit's relative position to all other
5        Organizational Units in this State. The Local Capacity
6        Percentage cumulative distribution resulting in a
7        percentile ranking for each Organizational Unit shall
8        be calculated using the standard normal distribution
9        of the score in relation to the weighted mean and
10        weighted standard deviation and Local Capacity Ratios
11        of all Organizational Units. If the value assigned to
12        any Organizational Unit is in excess of 90%, the value
13        shall be adjusted to 90%. For Laboratory Schools, the
14        Local Capacity Percentage shall be set at 10% in
15        recognition of the absence of EAV and resources from
16        the public university that are allocated to the
17        Laboratory School. For programs operated by a regional
18        office of education or an intermediate service center,
19        the Local Capacity Percentage must be set at 10% in
20        recognition of the absence of EAV and resources from
21        school districts that are allocated to the regional
22        office of education or intermediate service center.
23        The weighted mean for the Local Capacity Percentage
24        shall be determined by multiplying each Organizational
25        Unit's Local Capacity Ratio times the ASE for the unit
26        creating a weighted value, summing the weighted values

 

 

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1        of all Organizational Units, and dividing by the total
2        ASE of all Organizational Units. The weighted standard
3        deviation shall be determined by taking the square root
4        of the weighted variance of all Organizational Units'
5        Local Capacity Ratio, where the variance is calculated
6        by squaring the difference between each unit's Local
7        Capacity Ratio and the weighted mean, then multiplying
8        the variance for each unit times the ASE for the unit
9        to create a weighted variance for each unit, then
10        summing all units' weighted variance and dividing by
11        the total ASE of all units.
12            (D) For any Organizational Unit, the
13        Organizational Unit's Adjusted Local Capacity Target
14        shall be reduced by either (i) the school board's
15        remaining contribution pursuant to paragraph (ii) of
16        subsection (b-4) of Section 16-158 of the Illinois
17        Pension Code in a given year, or (ii) the board of
18        education's remaining contribution pursuant to
19        paragraph (iv) of subsection (b) of Section 17-129 of
20        the Illinois Pension Code absent the employer normal
21        cost portion of the required contribution and amount
22        allowed pursuant to subdivision (3) of Section
23        17-142.1 of the Illinois Pension Code in a given year.
24        In the preceding sentence, item (i) shall be certified
25        to the State Board of Education by the Teachers'
26        Retirement System of the State of Illinois and item

 

 

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1        (ii) shall be certified to the State Board of Education
2        by the Public School Teachers' Pension and Retirement
3        Fund of the City of Chicago.
4        (3) If an Organizational Unit's Real Receipts are more
5    than its Local Capacity Target, then its Local Capacity
6    shall equal an Adjusted Local Capacity Target as calculated
7    in accordance with this paragraph (3). The Adjusted Local
8    Capacity Target is calculated as the sum of the
9    Organizational Unit's Local Capacity Target and its Real
10    Receipts Adjustment. The Real Receipts Adjustment equals
11    the Organizational Unit's Real Receipts less its Local
12    Capacity Target, with the resulting figure multiplied by
13    the Local Capacity Percentage.
14        As used in this paragraph (3), "Real Percent of
15    Adequacy" means the sum of an Organizational Unit's Real
16    Receipts, CPPRT, and Base Funding Minimum, with the
17    resulting figure divided by the Organizational Unit's
18    Adequacy Target.
19    (d) Calculation of Real Receipts, EAV, and Adjusted EAV for
20purposes of the Local Capacity calculation.
21        (1) An Organizational Unit's Real Receipts are the
22    product of its Applicable Tax Rate and its Adjusted EAV. An
23    Organizational Unit's Applicable Tax Rate is its Adjusted
24    Operating Tax Rate for property within the Organizational
25    Unit.
26        (2) The State Superintendent shall calculate the

 

 

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1    equalized assessed valuation Equalized Assessed Valuation,
2    or EAV, of all taxable property of each Organizational Unit
3    as of September 30 of the previous year in accordance with
4    paragraph (3) of this subsection (d). The State
5    Superintendent shall then determine the Adjusted EAV of
6    each Organizational Unit in accordance with paragraph (4)
7    of this subsection (d), which Adjusted EAV figure shall be
8    used for the purposes of calculating Local Capacity.
9        (3) To calculate Real Receipts and EAV, the Department
10    of Revenue shall supply to the State Superintendent the
11    value as equalized or assessed by the Department of Revenue
12    of all taxable property of every Organizational Unit,
13    together with (i) the applicable tax rate used in extending
14    taxes for the funds of the Organizational Unit as of
15    September 30 of the previous year and (ii) the limiting
16    rate for all Organizational Units subject to property tax
17    extension limitations as imposed under PTELL.
18            (A) The Department of Revenue shall add to the
19        equalized assessed value of all taxable property of
20        each Organizational Unit situated entirely or
21        partially within a county that is or was subject to the
22        provisions of Section 15-176 or 15-177 of the Property
23        Tax Code (i) an amount equal to the total amount by
24        which the homestead exemption allowed under Section
25        15-176 or 15-177 of the Property Tax Code for real
26        property situated in that Organizational Unit exceeds

 

 

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1        the total amount that would have been allowed in that
2        Organizational Unit if the maximum reduction under
3        Section 15-176 was (I) $4,500 in Cook County or $3,500
4        in all other counties in tax year 2003 or (II) $5,000
5        in all counties in tax year 2004 and thereafter and
6        (ii) an amount equal to the aggregate amount for the
7        taxable year of all additional exemptions under
8        Section 15-175 of the Property Tax Code for owners with
9        a household income of $30,000 or less. The county clerk
10        of any county that is or was subject to the provisions
11        of Section 15-176 or 15-177 of the Property Tax Code
12        shall annually calculate and certify to the Department
13        of Revenue for each Organizational Unit all homestead
14        exemption amounts under Section 15-176 or 15-177 of the
15        Property Tax Code and all amounts of additional
16        exemptions under Section 15-175 of the Property Tax
17        Code for owners with a household income of $30,000 or
18        less. It is the intent of this subparagraph (A) that if
19        the general homestead exemption for a parcel of
20        property is determined under Section 15-176 or 15-177
21        of the Property Tax Code rather than Section 15-175,
22        then the calculation of EAV shall not be affected by
23        the difference, if any, between the amount of the
24        general homestead exemption allowed for that parcel of
25        property under Section 15-176 or 15-177 of the Property
26        Tax Code and the amount that would have been allowed

 

 

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1        had the general homestead exemption for that parcel of
2        property been determined under Section 15-175 of the
3        Property Tax Code. It is further the intent of this
4        subparagraph (A) that if additional exemptions are
5        allowed under Section 15-175 of the Property Tax Code
6        for owners with a household income of less than
7        $30,000, then the calculation of EAV shall not be
8        affected by the difference, if any, because of those
9        additional exemptions.
10            (B) With respect to any part of an Organizational
11        Unit within a redevelopment project area in respect to
12        which a municipality has adopted tax increment
13        allocation financing pursuant to the Tax Increment
14        Allocation Redevelopment Act, Division 74.4 of Article
15        11 of the Illinois Municipal Code, or the Industrial
16        Jobs Recovery Law, Division 74.6 of Article 11 of the
17        Illinois Municipal Code, no part of the current EAV of
18        real property located in any such project area that
19        which is attributable to an increase above the total
20        initial EAV of such property shall be used as part of
21        the EAV of the Organizational Unit, until such time as
22        all redevelopment project costs have been paid, as
23        provided in Section 11-74.4-8 of the Tax Increment
24        Allocation Redevelopment Act or in Section 11-74.6-35
25        of the Industrial Jobs Recovery Law. For the purpose of
26        the EAV of the Organizational Unit, the total initial

 

 

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1        EAV or the current EAV, whichever is lower, shall be
2        used until such time as all redevelopment project costs
3        have been paid.
4            (B-5) The real property equalized assessed
5        valuation for a school district shall be adjusted by
6        subtracting from the real property value, as equalized
7        or assessed by the Department of Revenue, for the
8        district an amount computed by dividing the amount of
9        any abatement of taxes under Section 18-170 of the
10        Property Tax Code by 3.00% for a district maintaining
11        grades kindergarten through 12, by 2.30% for a district
12        maintaining grades kindergarten through 8, or by 1.05%
13        for a district maintaining grades 9 through 12 and
14        adjusted by an amount computed by dividing the amount
15        of any abatement of taxes under subsection (a) of
16        Section 18-165 of the Property Tax Code by the same
17        percentage rates for district type as specified in this
18        subparagraph (B-5).
19            (C) For Organizational Units that are Hybrid
20        Districts, the State Superintendent shall use the
21        lesser of the adjusted equalized assessed valuation
22        for property within the partial elementary unit
23        district for elementary purposes, as defined in
24        Article 11E of this Code, or the adjusted equalized
25        assessed valuation for property within the partial
26        elementary unit district for high school purposes, as

 

 

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1        defined in Article 11E of this Code.
2        (4) An Organizational Unit's Adjusted EAV shall be the
3    average of its EAV over the immediately preceding 3 years
4    or its EAV in the immediately preceding year if the EAV in
5    the immediately preceding year has declined by 10% or more
6    compared to the 3-year average. In the event of
7    Organizational Unit reorganization, consolidation, or
8    annexation, the Organizational Unit's Adjusted EAV for the
9    first 3 years after such change shall be as follows: the
10    most current EAV shall be used in the first year, the
11    average of a 2-year EAV or its EAV in the immediately
12    preceding year if the EAV declines by 10% or more compared
13    to the 2-year average for the second year, and a 3-year
14    average EAV or its EAV in the immediately preceding year if
15    the Adjusted adjusted EAV declines by 10% or more compared
16    to the 3-year average for the third year. For any school
17    district whose EAV in the immediately preceding year is
18    used in calculations, in the following year, the Adjusted
19    EAV shall be the average of its EAV over the immediately
20    preceding 2 years or the immediately preceding year if that
21    year represents a decline of 10% or more compared to the
22    2-year average.
23        "PTELL EAV" means a figure calculated by the State
24    Board for Organizational Units subject to PTELL as
25    described in this paragraph (4) for the purposes of
26    calculating an Organizational Unit's Local Capacity Ratio.

 

 

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1    Except as otherwise provided in this paragraph (4), the
2    PTELL EAV of an Organizational Unit shall be equal to the
3    product of the equalized assessed valuation last used in
4    the calculation of general State aid under Section 18-8.05
5    of this Code (now repealed) or Evidence-Based Funding under
6    this Section and the Organizational Unit's Extension
7    Limitation Ratio. If an Organizational Unit has approved or
8    does approve an increase in its limiting rate, pursuant to
9    Section 18-190 of the Property Tax Code, affecting the Base
10    Tax Year, the PTELL EAV shall be equal to the product of
11    the equalized assessed valuation last used in the
12    calculation of general State aid under Section 18-8.05 of
13    this Code (now repealed) or Evidence-Based Funding under
14    this Section multiplied by an amount equal to one plus the
15    percentage increase, if any, in the Consumer Price Index
16    for All Urban Consumers for all items published by the
17    United States Department of Labor for the 12-month calendar
18    year preceding the Base Tax Year, plus the equalized
19    assessed valuation of new property, annexed property, and
20    recovered tax increment value and minus the equalized
21    assessed valuation of disconnected property.
22        As used in this paragraph (4), "new property" and
23    "recovered tax increment value" shall have the meanings set
24    forth in the Property Tax Extension Limitation Law.
25    (e) Base Funding Minimum calculation.
26        (1) For the 2017-2018 school year, the Base Funding

 

 

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1    Minimum of an Organizational Unit or a Specially Funded
2    Unit shall be the amount of State funds distributed to the
3    Organizational Unit or Specially Funded Unit during the
4    2016-2017 school year prior to any adjustments and
5    specified appropriation amounts described in this
6    paragraph (1) from the following Sections, as calculated by
7    the State Superintendent: Section 18-8.05 of this Code (now
8    repealed); Section 5 of Article 224 of Public Act 99-524
9    (equity grants); Section 14-7.02b of this Code (funding for
10    children requiring special education services); Section
11    14-13.01 of this Code (special education facilities and
12    staffing), except for reimbursement of the cost of
13    transportation pursuant to Section 14-13.01; Section
14    14C-12 of this Code (English learners); and Section 18-4.3
15    of this Code (summer school), based on an appropriation
16    level of $13,121,600. For a school district organized under
17    Article 34 of this Code, the Base Funding Minimum also
18    includes (i) the funds allocated to the school district
19    pursuant to Section 1D-1 of this Code attributable to
20    funding programs authorized by the Sections of this Code
21    listed in the preceding sentence; and (ii) the difference
22    between (I) the funds allocated to the school district
23    pursuant to Section 1D-1 of this Code attributable to the
24    funding programs authorized by Section 14-7.02 (non-public
25    special education reimbursement), subsection (b) of
26    Section 14-13.01 (special education transportation),

 

 

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1    Section 29-5 (transportation), Section 2-3.80
2    (agricultural education), Section 2-3.66 (truants'
3    alternative education), Section 2-3.62 (educational
4    service centers), and Section 14-7.03 (special education -
5    orphanage) of this Code and Section 15 of the Childhood
6    Hunger Relief Act (free breakfast program) and (II) the
7    school district's actual expenditures for its non-public
8    special education, special education transportation,
9    transportation programs, agricultural education, truants'
10    alternative education, services that would otherwise be
11    performed by a regional office of education, special
12    education orphanage expenditures, and free breakfast, as
13    most recently calculated and reported pursuant to
14    subsection (f) of Section 1D-1 of this Code. The Base
15    Funding Minimum for Glenwood Academy shall be $625,500. For
16    programs operated by a regional office of education or an
17    intermediate service center, the Base Funding Minimum must
18    be the total amount of State funds allocated to those
19    programs in the 2018-2019 school year and amounts provided
20    pursuant to Article 34 of Public Act 100-586 and Section
21    3-16 of this Code. All programs established after June 5,
22    2019 (the effective date of Public Act 101-10) this
23    amendatory Act of the 101st General Assembly and
24    administered by a regional office of education or an
25    intermediate service center must have an initial Base
26    Funding Minimum set to an amount equal to the first-year

 

 

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1    ASE multiplied by the amount of per pupil funding received
2    in the previous school year by the lowest funded similar
3    existing program type. If the enrollment for a program
4    operated by a regional office of education or an
5    intermediate service center is zero, then it may not
6    receive Base Funding Minimum funds for that program in the
7    next fiscal year, and those funds must be distributed to
8    Organizational Units under subsection (g).
9        (2) For the 2018-2019 and 2019-2020 subsequent school
10    years, the Base Funding Minimum of Organizational Units and
11    Specially Funded Units shall be the sum of (i) the amount
12    of Evidence-Based Funding for the prior school year, (ii)
13    the Base Funding Minimum for the prior school year, and
14    (iii) any amount received by a school district pursuant to
15    Section 7 of Article 97 of Public Act 100-21.
16        (2.5) Except as otherwise provided in paragraph (3) of
17    this subsection (e), for the 2020-2021 school year, the
18    Base Funding Minimum of Organizational Units and Specially
19    Funded Units shall be the sum of (i) the amount of New
20    State Funds they received in the prior school year, (ii)
21    the Base Funding Minimum for the prior school year, and
22    (iii) the amount certified by the Teachers' Retirement
23    System of the State of Illinois as the normal cost of the
24    Organizational Unit's teacher pensions assigned to that
25    Organizational Unit pursuant to subsection (b-5) of
26    Section 16-158 of the Illinois Pension Code for the

 

 

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1    preceding school year or the amount certified by the Public
2    School Teachers' Pension and Retirement Fund of Chicago
3    that the board of education of a school district organized
4    under Article 34 of this Code is obligated to contribute
5    pursuant to subsection (i) of Section 17-127 of the
6    Illinois Pension Code in the preceding school year. Except
7    as otherwise provided in paragraph (3) of this subsection
8    (e), for the 2021-2022 school year and subsequent school
9    years, the Base Funding Minimum of Organizational Units and
10    Specially Funded Units shall be the sum of (i) the amount
11    of New State Funds they received in the prior year and (ii)
12    the Base Funding Minimum for the prior school year.
13        (3) In this paragraph (3):
14        "Excess state payment" means any amount of an
15    Organizational Unit's Preliminary Base Funding Minimum
16    that is in excess of the expected State payment.
17        "Expected State payment" means the amount an
18    Organizational Unit would receive from the State if the
19    Evidence-Based Funding formula under this Section were
20    fully funded, calculated for each Organizational Unit by
21    taking the difference of the Organizational Unit's
22    regionalized Adequacy Target and its preliminary Local
23    Capacity Target.
24        For the 2021-2022 school year and subsequent school
25    years, the Base Funding Minimum of Organizational Units
26    shall exclude any excess State payment specified and

 

 

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1    determined by the State Superintendent pursuant to this
2    paragraph (3). For the 2021-2022 school year, the State
3    Superintendent shall exclude 33% of any excess State
4    payment amount from the Base Funding Minimum of the
5    Organizational Unit. For the 2022-2023 school year, the
6    State Superintendent shall exclude 66% of any excess State
7    payment amount from the Base Funding Minimum of the
8    Organizational Unit. For the 2023-2024 school year and
9    subsequent school years, the State Superintendent shall
10    exclude 100% of any excess State payment amount from the
11    Base Funding Minimum of the Organizational Unit. Each
12    school year, the State Superintendent shall distribute the
13    total amount of excess State payment amounts excluded
14    pursuant to this paragraph (3) as New State Funds pursuant
15    to subsection (g) of this Section.
16    (f) Percent of Adequacy and Final Resources calculation.
17        (1) The Evidence-Based Funding formula establishes a
18    Percent of Adequacy for each Organizational Unit in order
19    to place such units into tiers for the purposes of the
20    funding distribution system described in subsection (g) of
21    this Section. Initially, an Organizational Unit's
22    Preliminary Resources and Preliminary Percent of Adequacy
23    are calculated pursuant to paragraph (2) of this subsection
24    (f). Then, an Organizational Unit's Final Resources and
25    Final Percent of Adequacy are calculated to account for the
26    Organizational Unit's poverty concentration levels

 

 

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1    pursuant to paragraphs (3) and (4) of this subsection (f).
2        (2) An Organizational Unit's Preliminary Resources are
3    equal to the sum of its Local Capacity Target, CPPRT, and
4    Base Funding Minimum. An Organizational Unit's Preliminary
5    Percent of Adequacy is the lesser of (i) its Preliminary
6    Resources divided by its Adequacy Target or (ii) 100%.
7        (3) Except for Specially Funded Units, an
8    Organizational Unit's Final Resources are equal the sum of
9    its Local Capacity, CPPRT, and Adjusted Base Funding
10    Minimum. The Base Funding Minimum of each Specially Funded
11    Unit shall serve as its Final Resources, except that the
12    Base Funding Minimum for State-approved charter schools
13    shall not include any portion of general State aid
14    allocated in the prior year based on the per capita tuition
15    charge times the charter school enrollment.
16        (4) An Organizational Unit's Final Percent of Adequacy
17    is its Final Resources divided by its Adequacy Target. An
18    Organizational Unit's Adjusted Base Funding Minimum is
19    equal to its Base Funding Minimum less its Supplemental
20    Grant Funding, with the resulting figure added to the
21    product of its Supplemental Grant Funding and Preliminary
22    Percent of Adequacy.
23    (g) Evidence-Based Funding formula distribution system.
24        (1) In each school year under the Evidence-Based
25    Funding formula, each Organizational Unit receives funding
26    equal to the sum of its Base Funding Minimum and the unit's

 

 

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1    allocation of New State Funds determined pursuant to this
2    subsection (g). To allocate New State Funds, the
3    Evidence-Based Funding formula distribution system first
4    places all Organizational Units into one of 4 tiers in
5    accordance with paragraph (3) of this subsection (g), based
6    on the Organizational Unit's Final Percent of Adequacy. New
7    State Funds are allocated to each of the 4 tiers as
8    follows: Tier 1 Aggregate Funding equals 50% of all New
9    State Funds, Tier 2 Aggregate Funding equals 49% of all New
10    State Funds, Tier 3 Aggregate Funding equals 0.9% of all
11    New State Funds, and Tier 4 Aggregate Funding equals 0.1%
12    of all New State Funds. Each Organizational Unit within
13    Tier 1 or Tier 2 receives an allocation of New State Funds
14    equal to its tier Funding Gap, as defined in the following
15    sentence, multiplied by the tier's Allocation Rate
16    determined pursuant to paragraph (4) of this subsection
17    (g). For Tier 1, an Organizational Unit's Funding Gap
18    equals the tier's Target Ratio, as specified in paragraph
19    (5) of this subsection (g), multiplied by the
20    Organizational Unit's Adequacy Target, with the resulting
21    amount reduced by the Organizational Unit's Final
22    Resources. For Tier 2, an Organizational Unit's Funding Gap
23    equals the tier's Target Ratio, as described in paragraph
24    (5) of this subsection (g), multiplied by the
25    Organizational Unit's Adequacy Target, with the resulting
26    amount reduced by the Organizational Unit's Final

 

 

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1    Resources and its Tier 1 funding allocation. To determine
2    the Organizational Unit's Funding Gap, the resulting
3    amount is then multiplied by a factor equal to one minus
4    the Organizational Unit's Local Capacity Target
5    percentage. Each Organizational Unit within Tier 3 or Tier
6    4 receives an allocation of New State Funds equal to the
7    product of its Adequacy Target and the tier's Allocation
8    Rate, as specified in paragraph (4) of this subsection (g).
9        (2) To ensure equitable distribution of dollars for all
10    Tier 2 Organizational Units, no Tier 2 Organizational Unit
11    shall receive fewer dollars per ASE than any Tier 3
12    Organizational Unit. Each Tier 2 and Tier 3 Organizational
13    Unit shall have its funding allocation divided by its ASE.
14    Any Tier 2 Organizational Unit with a funding allocation
15    per ASE below the greatest Tier 3 allocation per ASE shall
16    get a funding allocation equal to the greatest Tier 3
17    funding allocation per ASE multiplied by the
18    Organizational Unit's ASE. Each Tier 2 Organizational
19    Unit's Tier 2 funding allocation shall be multiplied by the
20    percentage calculated by dividing the original Tier 2
21    Aggregate Funding by the sum of all Tier 2 Organizational
22    Units' Unit's Tier 2 funding allocation after adjusting
23    districts' funding below Tier 3 levels.
24        (3) Organizational Units are placed into one of 4 tiers
25    as follows:
26            (A) Tier 1 consists of all Organizational Units,

 

 

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1        except for Specially Funded Units, with a Percent of
2        Adequacy less than the Tier 1 Target Ratio. The Tier 1
3        Target Ratio is the ratio level that allows for Tier 1
4        Aggregate Funding to be distributed, with the Tier 1
5        Allocation Rate determined pursuant to paragraph (4)
6        of this subsection (g).
7            (B) Tier 2 consists of all Tier 1 Units and all
8        other Organizational Units, except for Specially
9        Funded Units, with a Percent of Adequacy of less than
10        0.90.
11            (C) Tier 3 consists of all Organizational Units,
12        except for Specially Funded Units, with a Percent of
13        Adequacy of at least 0.90 and less than 1.0.
14            (D) Tier 4 consists of all Organizational Units
15        with a Percent of Adequacy of at least 1.0.
16        (4) The Allocation Rates for Tiers 1 through 4 are is
17    determined as follows:
18            (A) The Tier 1 Allocation Rate is 30%.
19            (B) The Tier 2 Allocation Rate is the result of the
20        following equation: Tier 2 Aggregate Funding, divided
21        by the sum of the Funding Gaps for all Tier 2
22        Organizational Units, unless the result of such
23        equation is higher than 1.0. If the result of such
24        equation is higher than 1.0, then the Tier 2 Allocation
25        Rate is 1.0.
26            (C) The Tier 3 Allocation Rate is the result of the

 

 

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1        following equation: Tier 3 Aggregate Funding, divided
2        by the sum of the Adequacy Targets of all Tier 3
3        Organizational Units.
4            (D) The Tier 4 Allocation Rate is the result of the
5        following equation: Tier 4 Aggregate Funding, divided
6        by the sum of the Adequacy Targets of all Tier 4
7        Organizational Units.
8        (5) A tier's Target Ratio is determined as follows:
9            (A) The Tier 1 Target Ratio is the ratio level that
10        allows for Tier 1 Aggregate Funding to be distributed
11        with the Tier 1 Allocation Rate.
12            (B) The Tier 2 Target Ratio is 0.90.
13            (C) The Tier 3 Target Ratio is 1.0.
14        (6) If, at any point, the Tier 1 Target Ratio is
15    greater than 90%, than all Tier 1 funding shall be
16    allocated to Tier 2 and no Tier 1 Organizational Unit's
17    funding may be identified.
18        (7) In the event that all Tier 2 Organizational Units
19    receive funding at the Tier 2 Target Ratio level, any
20    remaining New State Funds shall be allocated to Tier 3 and
21    Tier 4 Organizational Units.
22        (8) If any Specially Funded Units, excluding Glenwood
23    Academy, recognized by the State Board do not qualify for
24    direct funding following the implementation of Public Act
25    100-465 this amendatory Act of the 100th General Assembly
26    from any of the funding sources included within the

 

 

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1    definition of Base Funding Minimum, the unqualified
2    portion of the Base Funding Minimum shall be transferred to
3    one or more appropriate Organizational Units as determined
4    by the State Superintendent based on the prior year ASE of
5    the Organizational Units.
6        (8.5) If a school district withdraws from a special
7    education cooperative, the portion of the Base Funding
8    Minimum that is attributable to the school district may be
9    redistributed to the school district upon withdrawal. The
10    school district and the cooperative must include the amount
11    of the Base Funding Minimum that is to be reapportioned
12    re-apportioned in their withdrawal agreement and notify
13    the State Board of the change with a copy of the agreement
14    upon withdrawal.
15        (9) The Minimum Funding Level is intended to establish
16    a target for State funding that will keep pace with
17    inflation and continue to advance equity through the
18    Evidence-Based Funding formula. The target for State
19    funding of New Property Tax Relief Pool Funds is
20    $50,000,000 for State fiscal year 2019 and subsequent State
21    fiscal years. The Minimum Funding Level is equal to
22    $350,000,000. In addition to any New State Funds, no more
23    than $50,000,000 New Property Tax Relief Pool Funds may be
24    counted toward towards the Minimum Funding Level. If the
25    sum of New State Funds and applicable New Property Tax
26    Relief Pool Funds are less than the Minimum Funding Level,

 

 

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1    than funding for tiers shall be reduced in the following
2    manner:
3            (A) First, Tier 4 funding shall be reduced by an
4        amount equal to the difference between the Minimum
5        Funding Level and New State Funds until such time as
6        Tier 4 funding is exhausted.
7            (B) Next, Tier 3 funding shall be reduced by an
8        amount equal to the difference between the Minimum
9        Funding Level and New State Funds and the reduction in
10        Tier 4 funding until such time as Tier 3 funding is
11        exhausted.
12            (C) Next, Tier 2 funding shall be reduced by an
13        amount equal to the difference between the Minimum
14        Funding Level level and New new State Funds and the
15        reduction in Tier 4 and Tier 3.
16            (D) Finally, Tier 1 funding shall be reduced by an
17        amount equal to the difference between the Minimum
18        Funding level and New State Funds and the reduction in
19        Tier 2, 3, and 4 funding. In addition, the Allocation
20        Rate for Tier 1 shall be reduced to a percentage equal
21        to the Tier 1 Allocation Rate allocation rate set by
22        paragraph (4) of this subsection (g), multiplied by the
23        result of New State Funds divided by the Minimum
24        Funding Level.
25        (9.5) For State fiscal year 2019 and subsequent State
26    fiscal years, if New State Funds exceed $300,000,000, then

 

 

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1    any amount in excess of $300,000,000 shall be dedicated for
2    purposes of Section 2-3.170 of this Code up to a maximum of
3    $50,000,000.
4        (10) In the event of a decrease in the amount of the
5    appropriation for this Section in any fiscal year after
6    implementation of this Section, the Organizational Units
7    receiving Tier 1 and Tier 2 funding, as determined under
8    paragraph (3) of this subsection (g), shall be held
9    harmless by establishing a Base Funding Guarantee equal to
10    the per pupil kindergarten through grade 12 funding
11    received in accordance with this Section in the prior
12    fiscal year. Reductions shall be made to the Base Funding
13    Minimum of Organizational Units in Tier 3 and Tier 4 on a
14    per pupil basis equivalent to the total number of the ASE
15    in Tier 3-funded and Tier 4-funded Organizational Units
16    divided by the total reduction in State funding. The Base
17    Funding Minimum as reduced shall continue to be applied to
18    Tier 3 and Tier 4 Organizational Units and adjusted by the
19    relative formula when increases in appropriations for this
20    Section resume. In no event may State funding reductions to
21    Organizational Units in Tier 3 or Tier 4 exceed an amount
22    that would be less than the Base Funding Minimum
23    established in the first year of implementation of this
24    Section. If additional reductions are required, all school
25    districts shall receive a reduction by a per pupil amount
26    equal to the aggregate additional appropriation reduction

 

 

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1    divided by the total ASE of all Organizational Units.
2        (11) The State Superintendent shall make minor
3    adjustments to the distribution formula set forth in this
4    subsection (g) to account for the rounding of percentages
5    to the nearest tenth of a percentage and dollar amounts to
6    the nearest whole dollar.
7    (h) State Superintendent administration of funding and
8district submission requirements.
9        (1) The State Superintendent shall, in accordance with
10    appropriations made by the General Assembly, meet the
11    funding obligations created under this Section.
12        (2) The State Superintendent shall calculate the
13    Adequacy Target for each Organizational Unit and Net State
14    Contribution Target for each Organizational Unit under
15    this Section. No Evidence-Based Funding shall be
16    distributed within an Organizational Unit without the
17    approval of the unit's school board.
18        (3) Annually, the State Superintendent shall calculate
19    and report to each Organizational Unit the unit's aggregate
20    financial adequacy amount, which shall be the sum of the
21    Adequacy Target for each Organizational Unit. The State
22    Superintendent shall calculate and report separately for
23    each Organizational Unit the unit's total State funds
24    allocated for its students with disabilities. The State
25    Superintendent shall calculate and report separately for
26    each Organizational Unit the amount of funding and

 

 

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1    applicable FTE calculated for each Essential Element of the
2    unit's Adequacy Target.
3        (4) Annually, the State Superintendent shall calculate
4    and report to each Organizational Unit the amount the unit
5    must expend on special education and bilingual education
6    and computer technology and equipment for Organizational
7    Units assigned to Tier 1 or Tier 2 that received an
8    additional $285.50 per student computer technology and
9    equipment investment grant to their Adequacy Target
10    pursuant to the unit's Base Funding Minimum, Special
11    Education Allocation, Bilingual Education Allocation, and
12    computer technology and equipment investment allocation.
13        (5) Moneys distributed under this Section shall be
14    calculated on a school year basis, but paid on a fiscal
15    year basis, with payments beginning in August and extending
16    through June. Unless otherwise provided, the moneys
17    appropriated for each fiscal year shall be distributed in
18    22 equal payments at least 2 times monthly to each
19    Organizational Unit. If moneys appropriated for any fiscal
20    year are distributed other than monthly, the distribution
21    shall be on the same basis for each Organizational Unit.
22        (6) Any school district that fails, for any given
23    school year, to maintain school as required by law or to
24    maintain a recognized school is not eligible to receive
25    Evidence-Based Funding. In case of non-recognition of one
26    or more attendance centers in a school district otherwise

 

 

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1    operating recognized schools, the claim of the district
2    shall be reduced in the proportion that the enrollment in
3    the attendance center or centers bears to the enrollment of
4    the school district. "Recognized school" means any public
5    school that meets the standards for recognition by the
6    State Board. 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 that was filed while it was recognized.
10        (7) School district claims filed under this Section are
11    subject to Sections 18-9 and 18-12 of this Code, except as
12    otherwise provided in this Section.
13        (8) Each fiscal year, the State Superintendent shall
14    calculate for each Organizational Unit an amount of its
15    Base Funding Minimum and Evidence-Based Funding that shall
16    be deemed attributable to the provision of special
17    educational facilities and services, as defined in Section
18    14-1.08 of this Code, in a manner that ensures compliance
19    with maintenance of State financial support requirements
20    under the federal Individuals with Disabilities Education
21    Act. An Organizational Unit must use such funds only for
22    the provision of special educational facilities and
23    services, as defined in Section 14-1.08 of this Code, and
24    must comply with any expenditure verification procedures
25    adopted by the State Board.
26        (9) All Organizational Units in this State must submit

 

 

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1    annual spending plans by the end of September of each year
2    to the State Board as part of the annual budget process,
3    which shall describe how each Organizational Unit will
4    utilize the Base Funding Minimum Funding and
5    Evidence-Based Funding funding it receives from this State
6    under this Section with specific identification of the
7    intended utilization of Low-Income, English learner, and
8    special education resources. Additionally, the annual
9    spending plans of each Organizational Unit shall describe
10    how the Organizational Unit expects to achieve student
11    growth and how the Organizational Unit will achieve State
12    education goals, as defined by the State Board. The State
13    Superintendent may, from time to time, identify additional
14    requisites for Organizational Units to satisfy when
15    compiling the annual spending plans required under this
16    subsection (h). The format and scope of annual spending
17    plans shall be developed by the State Superintendent and
18    the State Board of Education. School districts that serve
19    students under Article 14C of this Code shall continue to
20    submit information as required under Section 14C-12 of this
21    Code.
22        (10) No later than January 1, 2018, the State
23    Superintendent shall develop a 5-year strategic plan for
24    all Organizational Units to help in planning for adequacy
25    funding under this Section. The State Superintendent shall
26    submit the plan to the Governor and the General Assembly,

 

 

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1    as provided in Section 3.1 of the General Assembly
2    Organization Act. The plan shall include recommendations
3    for:
4            (A) a framework for collaborative, professional,
5        innovative, and 21st century learning environments
6        using the Evidence-Based Funding model;
7            (B) ways to prepare and support this State's
8        educators for successful instructional careers;
9            (C) application and enhancement of the current
10        financial accountability measures, the approved State
11        plan to comply with the federal Every Student Succeeds
12        Act, and the Illinois Balanced Accountability Measures
13        in relation to student growth and elements of the
14        Evidence-Based Funding model; and
15            (D) implementation of an effective school adequacy
16        funding system based on projected and recommended
17        funding levels from the General Assembly.
18        (11) On an annual basis, the State Superintendent must
19    recalibrate all of the following per pupil elements of the
20    Adequacy Target and applied to the formulas, based on the
21    study of average expenses and as reported in the most
22    recent annual financial report:
23            (A) Gifted under subparagraph (M) of paragraph (2)
24        of subsection (b).
25            (B) Instructional materials under subparagraph (O)
26        of paragraph (2) of subsection (b).

 

 

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1            (C) Assessment under subparagraph (P) of paragraph
2        (2) of subsection (b).
3            (D) Student activities under subparagraph (R) of
4        paragraph (2) of subsection (b).
5            (E) Maintenance and operations under subparagraph
6        (S) of paragraph (2) of subsection (b).
7            (F) Central office under subparagraph (T) of
8        paragraph (2) of subsection (b).
9    (i) Professional Review Panel.
10        (1) A Professional Review Panel is created to study and
11    review topics related to the implementation and effect of
12    Evidence-Based Funding, as assigned by a joint resolution
13    or Public Act of the General Assembly or a motion passed by
14    the State Board of Education. The Panel must provide
15    recommendations to and serve the Governor, the General
16    Assembly, and the State Board. The State Superintendent or
17    his or her designee must serve as a voting member and
18    chairperson of the Panel. The State Superintendent must
19    appoint a vice chairperson from the membership of the
20    Panel. The Panel must advance recommendations based on a
21    three-fifths majority vote of Panel panel members present
22    and voting. A minority opinion may also accompany any
23    recommendation of the Panel. The Panel shall be appointed
24    by the State Superintendent, except as otherwise provided
25    in paragraph (2) of this subsection (i) and include the
26    following members:

 

 

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1            (A) Two appointees that represent district
2        superintendents, recommended by a statewide
3        organization that represents district superintendents.
4            (B) Two appointees that represent school boards,
5        recommended by a statewide organization that
6        represents school boards.
7            (C) Two appointees from districts that represent
8        school business officials, recommended by a statewide
9        organization that represents school business
10        officials.
11            (D) Two appointees that represent school
12        principals, recommended by a statewide organization
13        that represents school principals.
14            (E) Two appointees that represent teachers,
15        recommended by a statewide organization that
16        represents teachers.
17            (F) Two appointees that represent teachers,
18        recommended by another statewide organization that
19        represents teachers.
20            (G) Two appointees that represent regional
21        superintendents of schools, recommended by
22        organizations that represent regional superintendents.
23            (H) Two independent experts selected solely by the
24        State Superintendent.
25            (I) Two independent experts recommended by public
26        universities in this State.

 

 

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1            (J) One member recommended by a statewide
2        organization that represents parents.
3            (K) Two representatives recommended by collective
4        impact organizations that represent major metropolitan
5        areas or geographic areas in Illinois.
6            (L) One member from a statewide organization
7        focused on research-based education policy to support
8        a school system that prepares all students for college,
9        a career, and democratic citizenship.
10            (M) One representative from a school district
11        organized under Article 34 of this Code.
12        The State Superintendent shall ensure that the
13    membership of the Panel includes representatives from
14    school districts and communities reflecting the
15    geographic, socio-economic, racial, and ethnic diversity
16    of this State. The State Superintendent shall additionally
17    ensure that the membership of the Panel includes
18    representatives with expertise in bilingual education and
19    special education. Staff from the State Board shall staff
20    the Panel.
21        (2) In addition to those Panel members appointed by the
22    State Superintendent, 4 members of the General Assembly
23    shall be appointed as follows: one member of the House of
24    Representatives appointed by the Speaker of the House of
25    Representatives, one member of the Senate appointed by the
26    President of the Senate, one member of the House of

 

 

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1    Representatives appointed by the Minority Leader of the
2    House of Representatives, and one member of the Senate
3    appointed by the Minority Leader of the Senate. There shall
4    be one additional member appointed by the Governor. All
5    members appointed by legislative leaders or the Governor
6    shall be non-voting, ex officio members.
7        (3) The Panel must study topics at the direction of the
8    General Assembly or State Board of Education, as provided
9    under paragraph (1). The Panel may also study the following
10    topics at the direction of the chairperson: (4)
11            (A) The format and scope of annual spending plans
12        referenced in paragraph (9) of subsection (h) of this
13        Section.
14            (B) The Comparable Wage Index under this Section.
15            (C) Maintenance and operations, including capital
16        maintenance and construction costs.
17            (D) "At-risk student" definition.
18            (E) Benefits.
19            (F) Technology.
20            (G) Local Capacity Target.
21            (H) Funding for Alternative Schools, Laboratory
22        Schools, safe schools, and alternative learning
23        opportunities programs.
24            (I) Funding for college and career acceleration
25        strategies.
26            (J) Special education investments.

 

 

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1            (K) Early childhood investments, in collaboration
2        with the Illinois Early Learning Council.
3        (4) (Blank).
4        (5) Within 5 years after the implementation of this
5    Section, and every 5 years thereafter, the Panel shall
6    complete an evaluative study of the entire Evidence-Based
7    Funding model, including an assessment of whether or not
8    the formula is achieving State goals. The Panel shall
9    report to the State Board, the General Assembly, and the
10    Governor on the findings of the study.
11        (6) (Blank).
12    (j) References. Beginning July 1, 2017, references in other
13laws to general State aid funds or calculations under Section
1418-8.05 of this Code (now repealed) shall be deemed to be
15references to evidence-based model formula funds or
16calculations under this Section.
17(Source: P.A. 100-465, eff. 8-31-17; 100-578, eff. 1-31-18;
18100-582, eff. 3-23-18; 101-10, eff. 6-5-19; 101-17, eff.
196-14-19; revised 7-1-19.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.