102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2787

 

Introduced 2/19/2021, by Rep. William Davis

 

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
105 ILCS 5/18-8.15

     Amends the evidence-based funding formula provisions of the School Code to make changes concerning the employee benefit investments calculation and the Adjusted Base Funding Minimum calculation in relation to the employer normal cost of teacher pensions and the Base Funding Minimum calculation in relation to excess State payments. Amends the Downstate and Chicago Teacher Articles of the Illinois Pension Code to make related changes. Effective immediately.


LRB102 15092 NHT 20447 b

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

 

 

A BILL FOR

 

HB2787LRB102 15092 NHT 20447 b

1    AN ACT concerning education.
 
2    WHEREAS, This Act may be referred to as the Acceleration
3of School Funding Equity Act of 2021; 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
21teacher pension costs provides school districts funded above
22100% adequacy a benefit of $328 more per pupil than it provides

 

 

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1to school districts funded below 80% of adequacy; and
 
2    WHEREAS, The evidence-based funding formula depends on new
3funding being invested each year in order to close the
4adequacy gap; however, no increased tier funding was
5appropriated in fiscal year 2021; and
 
6    WHEREAS, By applying the same principles found in the
7evidence-based funding formula, the inequitable teacher
8pension funding structure can be improved to accelerate
9equity, accelerate the timeline for bringing the school
10funding system closer to adequacy, and protect teacher pension
11funding; therefore
 
12    Be it enacted by the People of the State of Illinois,
13represented in the General Assembly:
 
14    Section 5. The Illinois Pension Code is amended by
15changing Sections 16-158 and 17-127 as follows:
 
16    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
17    Sec. 16-158. Contributions by State and other employing
18units.
19    (a) The State shall make contributions to the System by
20means of appropriations from the Common School Fund and other
21State funds of amounts which, together with other employer

 

 

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1contributions, employee contributions, investment income, and
2other income, will be sufficient to meet the cost of
3maintaining and administering the System on a 90% funded basis
4in accordance with actuarial recommendations.
5    The Board shall determine the amount of State
6contributions required for each fiscal year on the basis of
7the actuarial tables and other assumptions adopted by the
8Board and the recommendations of the actuary, using the
9formula in subsection (b-3).
10    (a-1) Annually, on or before November 15 until November
1115, 2011, the Board shall certify to the Governor the amount of
12the required State contribution for the coming fiscal year.
13The certification under this subsection (a-1) shall include a
14copy of the actuarial recommendations upon which it is based
15and shall specifically identify the System's projected State
16normal cost for that fiscal year.
17    On or before May 1, 2004, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2005, taking
20into account the amounts appropriated to and received by the
21System under subsection (d) of Section 7.2 of the General
22Obligation Bond Act.
23    On or before July 1, 2005, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2006, taking
26into account the changes in required State contributions made

 

 

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1by Public Act 94-4.
2    On or before April 1, 2011, the Board shall recalculate
3and recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2011,
5applying the changes made by Public Act 96-889 to the System's
6assets and liabilities as of June 30, 2009 as though Public Act
796-889 was approved on that date.
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
11certification of the amount of the required State contribution
12to the System for the next fiscal year, along with all of the
13actuarial assumptions, calculations, and data upon which that
14proposed certification is based. On or before January 1 of
15each year, beginning January 1, 2013, the State Actuary shall
16issue a preliminary report concerning the proposed
17certification and identifying, if necessary, recommended
18changes in actuarial assumptions that the Board must consider
19before finalizing its certification of the required State
20contributions. On or before January 15, 2013 and each January
2115 thereafter, the Board shall certify to the Governor and the
22General Assembly the amount of the required State contribution
23for the next fiscal year. The Board's certification must note
24any deviations from the State Actuary's recommended changes,
25the reason or reasons for not following the State Actuary's
26recommended changes, and the fiscal impact of not following

 

 

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1the State Actuary's recommended changes on the required State
2contribution.
3    (a-10) By November 1, 2017, the Board shall recalculate
4and recertify to the State Actuary, the Governor, and the
5General Assembly the amount of the State contribution to the
6System for State fiscal year 2018, taking into account the
7changes in required State contributions made by Public Act
8100-23. The State Actuary shall review the assumptions and
9valuations underlying the Board's revised certification and
10issue a preliminary report concerning the proposed
11recertification and identifying, if necessary, recommended
12changes in actuarial assumptions that the Board must consider
13before finalizing its certification of the required State
14contributions. The Board's final certification must note any
15deviations from the State Actuary's recommended changes, the
16reason or reasons for not following the State Actuary's
17recommended changes, and the fiscal impact of not following
18the State Actuary's recommended changes on the required State
19contribution.
20    (a-15) On or after June 15, 2019, but no later than June
2130, 2019, the Board shall recalculate and recertify to the
22Governor and the General Assembly the amount of the State
23contribution to the System for State fiscal year 2019, taking
24into account the changes in required State contributions made
25by Public Act 100-587. The recalculation shall be made using
26assumptions adopted by the Board for the original fiscal year

 

 

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12019 certification. The monthly voucher for the 12th month of
2fiscal year 2019 shall be paid by the Comptroller after the
3recertification required pursuant to this subsection is
4submitted to the Governor, Comptroller, and General Assembly.
5The recertification submitted to the General Assembly shall be
6filed with the Clerk of the House of Representatives and the
7Secretary of the Senate in electronic form only, in the manner
8that the Clerk and the Secretary shall direct.
9    (b) Through State fiscal year 1995, the State
10contributions shall be paid to the System in accordance with
11Section 18-7 of the School Code.
12    (b-1) Beginning in State fiscal year 1996, on the 15th day
13of each month, or as soon thereafter as may be practicable, the
14Board shall submit vouchers for payment of State contributions
15to the System, in a total monthly amount of one-twelfth of the
16required annual State contribution certified under subsection
17(a-1). From March 5, 2004 (the effective date of Public Act
1893-665) through June 30, 2004, the Board shall not submit
19vouchers for the remainder of fiscal year 2004 in excess of the
20fiscal year 2004 certified contribution amount determined
21under this Section after taking into consideration the
22transfer to the System under subsection (a) of Section 6z-61
23of the State Finance Act. These vouchers shall be paid by the
24State Comptroller and Treasurer by warrants drawn on the funds
25appropriated to the System for that fiscal year.
26    If in any month the amount remaining unexpended from all

 

 

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

 

 

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1    A change in an actuarial or investment assumption that
2increases or decreases the required State contribution and
3first applies in State fiscal year 2018 or thereafter shall be
4implemented in equal annual amounts over a 5-year period
5beginning in the State fiscal year in which the actuarial
6change first applies to the required State contribution.
7    A change in an actuarial or investment assumption that
8increases or decreases the required State contribution and
9first applied to the State contribution in fiscal year 2014,
102015, 2016, or 2017 shall be implemented:
11        (i) as already applied in State fiscal years before
12    2018; and
13        (ii) in the portion of the 5-year period beginning in
14    the State fiscal year in which the actuarial change first
15    applied that occurs in State fiscal year 2018 or
16    thereafter, by calculating the change in equal annual
17    amounts over that 5-year period and then implementing it
18    at the resulting annual rate in each of the remaining
19    fiscal years in that 5-year period.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual
23increments so that by State fiscal year 2011, the State is
24contributing at the rate required under this Section; except
25that in the following specified State fiscal years, the State
26contribution to the System shall not be less than the

 

 

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1following indicated percentages of the applicable employee
2payroll, even if the indicated percentage will produce a State
3contribution in excess of the amount otherwise required under
4this subsection and subsection (a), and notwithstanding any
5contrary certification made under subsection (a-1) before May
627, 1998 (the effective date of Public Act 90-582): 10.02% in
7FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
82002; 12.86% in FY 2003; and 13.56% in FY 2004.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2006
11is $534,627,700.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2007
14is $738,014,500.
15    For each of State fiscal years 2008 through 2009, the
16State contribution to the System, as a percentage of the
17applicable employee payroll, shall be increased in equal
18annual increments from the required State contribution for
19State fiscal year 2007, so that by State fiscal year 2011, the
20State is contributing at the rate otherwise required under
21this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010
24is $2,089,268,000 and shall be made from the proceeds of bonds
25sold in fiscal year 2010 pursuant to Section 7.2 of the General
26Obligation Bond Act, less (i) the pro rata share of bond sale

 

 

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1expenses determined by the System's share of total bond
2proceeds, (ii) any amounts received from the Common School
3Fund in fiscal year 2010, and (iii) any reduction in bond
4proceeds due to the issuance of discounted bonds, if
5applicable.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2011
8is the amount recertified by the System on or before April 1,
92011 pursuant to subsection (a-1) of this Section and shall be
10made from the proceeds of bonds sold in fiscal year 2011
11pursuant to Section 7.2 of the General Obligation Bond Act,
12less (i) the pro rata share of bond sale expenses determined by
13the System's share of total bond proceeds, (ii) any amounts
14received from the Common School Fund in fiscal year 2011, and
15(iii) any reduction in bond proceeds due to the issuance of
16discounted bonds, if applicable. This amount shall include, in
17addition to the amount certified by the System, an amount
18necessary to meet employer contributions required by the State
19as an employer under paragraph (e) of this Section, which may
20also be used by the System for contributions required by
21paragraph (a) of Section 16-127.
22    Beginning in State fiscal year 2046, the minimum State
23contribution for each fiscal year shall be the amount needed
24to maintain the total assets of the System at 90% of the total
25actuarial liabilities of the System.
26    Amounts received by the System pursuant to Section 25 of

 

 

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1the Budget Stabilization Act or Section 8.12 of the State
2Finance Act in any fiscal year do not reduce and do not
3constitute payment of any portion of the minimum State
4contribution required under this Article in that fiscal year.
5Such amounts shall not reduce, and shall not be included in the
6calculation of, the required State contributions under this
7Article in any future year until the System has reached a
8funding ratio of at least 90%. A reference in this Article to
9the "required State contribution" or any substantially similar
10term does not include or apply to any amounts payable to the
11System under Section 25 of the Budget Stabilization Act.
12    Notwithstanding any other provision of this Section, the
13required State contribution for State fiscal year 2005 and for
14fiscal year 2008 and each fiscal year thereafter, as
15calculated under this Section and certified under subsection
16(a-1), shall not exceed an amount equal to (i) the amount of
17the required State contribution that would have been
18calculated under this Section for that fiscal year if the
19System had not received any payments under subsection (d) of
20Section 7.2 of the General Obligation Bond Act, minus (ii) the
21portion of the State's total debt service payments for that
22fiscal year on the bonds issued in fiscal year 2003 for the
23purposes of that Section 7.2, as determined and certified by
24the Comptroller, that is the same as the System's portion of
25the total moneys distributed under subsection (d) of Section
267.2 of the General Obligation Bond Act. In determining this

 

 

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1maximum for State fiscal years 2008 through 2010, however, the
2amount referred to in item (i) shall be increased, as a
3percentage of the applicable employee payroll, in equal
4increments calculated from the sum of the required State
5contribution for State fiscal year 2007 plus the applicable
6portion of the State's total debt service payments for fiscal
7year 2007 on the bonds issued in fiscal year 2003 for the
8purposes of Section 7.2 of the General Obligation Bond Act, so
9that, by State fiscal year 2011, the State is contributing at
10the rate otherwise required under this Section.
11    (b-4) Beginning in fiscal year 2018, each employer under
12this Article shall pay to the System a required contribution
13determined as a percentage of projected payroll and sufficient
14to produce an annual amount equal to:
15        (i) for each of fiscal years 2018, 2019, and 2020, the
16    defined benefit normal cost of the defined benefit plan,
17    less the employee contribution, for each employee of that
18    employer who has elected or who is deemed to have elected
19    the benefits under Section 1-161 or who has made the
20    election under subsection (b) of Section 1-161; for fiscal
21    year 2021 and each fiscal year thereafter, the defined
22    benefit normal cost of the defined benefit plan, less the
23    employee contribution, plus 2%, for each employee of that
24    employer who has elected or who is deemed to have elected
25    the benefits under Section 1-161 or who has made the
26    election under subsection (b) of Section 1-161; plus

 

 

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1        (ii) the amount required for that fiscal year to
2    amortize any unfunded actuarial accrued liability
3    associated with the present value of liabilities
4    attributable to the employer's account under Section
5    16-158.3, determined as a level percentage of payroll over
6    a 30-year rolling amortization period.
7    In determining contributions required under item (i) of
8this subsection, the System shall determine an aggregate rate
9for all employers, expressed as a percentage of projected
10payroll.
11    In determining the contributions required under item (ii)
12of this subsection, the amount shall be computed by the System
13on the basis of the actuarial assumptions and tables used in
14the most recent actuarial valuation of the System that is
15available at the time of the computation.
16    The contributions required under this subsection (b-4)
17shall be paid by an employer concurrently with that employer's
18payroll payment period. The State, as the actual employer of
19an employee, shall make the required contributions under this
20subsection.
21    (b-5) Beginning in fiscal year 2022, by February 15 of
22each year or upon a date mutually agreed upon by the System and
23the State Superintendent of Education, the System shall
24certify to the State Superintendent of Education the amount
25attributable to each employer under this Article for the
26State-paid employer normal cost paid on behalf of the

 

 

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1employer's employees determined as a percentage of projected
2payroll and sufficient to produce an annual amount equal to:
3        (1) for fiscal year 2022, the normal cost of each
4    member employed by the employer, other than a member
5    covered by subsection (b-4) of this Section, less the
6    employee contribution; and
7        (2) for fiscal year 2023 and each fiscal year
8    thereafter, the amount required for that fiscal year to
9    amortize any unfunded actuarial accrued liability accrued
10    from differences between estimated and actual normal cost
11    rates paid by the employer determined as a level
12    percentage of payroll over a 30-year rolling amortization
13    period.
14    In determining the amounts required to be calculated under
15item (1) of this subsection (b-5), the System shall determine
16an aggregate rate for all employers, expressed as a percentage
17of projected payroll. In determining the amounts required to
18be calculated under item (2) of this subsection (b-5), the
19amount shall be computed by the System on the basis of
20actuarial assumptions and tables used in the most recent
21actuarial valuation of the System that is available at the
22time of the computation.
23    (c) Payment of the required State contributions and of all
24pensions, retirement annuities, death benefits, refunds, and
25other benefits granted under or assumed by this System, and
26all expenses in connection with the administration and

 

 

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1operation thereof, are obligations of the State.
2    If members are paid from special trust or federal funds
3which are administered by the employing unit, whether school
4district or other unit, the employing unit shall pay to the
5System from such funds the full accruing retirement costs
6based upon that service, which, beginning July 1, 2017, shall
7be at a rate, expressed as a percentage of salary, equal to the
8total employer's normal cost, expressed as a percentage of
9payroll, as determined by the System. Employer contributions,
10based on salary paid to members from federal funds, may be
11forwarded by the distributing agency of the State of Illinois
12to the System prior to allocation, in an amount determined in
13accordance with guidelines established by such agency and the
14System. Any contribution for fiscal year 2015 collected as a
15result of the change made by Public Act 98-674 shall be
16considered a State contribution under subsection (b-3) of this
17Section.
18    (d) Effective July 1, 1986, any employer of a teacher as
19defined in paragraph (8) of Section 16-106 shall pay the
20employer's normal cost of benefits based upon the teacher's
21service, in addition to employee contributions, as determined
22by the System. Such employer contributions shall be forwarded
23monthly in accordance with guidelines established by the
24System.
25    However, with respect to benefits granted under Section
2616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)

 

 

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1of Section 16-106, the employer's contribution shall be 12%
2(rather than 20%) of the member's highest annual salary rate
3for each year of creditable service granted, and the employer
4shall also pay the required employee contribution on behalf of
5the teacher. For the purposes of Sections 16-133.4 and
616-133.5, a teacher as defined in paragraph (8) of Section
716-106 who is serving in that capacity while on leave of
8absence from another employer under this Article shall not be
9considered an employee of the employer from which the teacher
10is on leave.
11    (e) Beginning July 1, 1998, every employer of a teacher
12shall pay to the System an employer contribution computed as
13follows:
14        (1) Beginning July 1, 1998 through June 30, 1999, the
15    employer contribution shall be equal to 0.3% of each
16    teacher's salary.
17        (2) Beginning July 1, 1999 and thereafter, the
18    employer contribution shall be equal to 0.58% of each
19    teacher's salary.
20The school district or other employing unit may pay these
21employer contributions out of any source of funding available
22for that purpose and shall forward the contributions to the
23System on the schedule established for the payment of member
24contributions.
25    These employer contributions are intended to offset a
26portion of the cost to the System of the increases in

 

 

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1retirement benefits resulting from Public Act 90-582.
2    Each employer of teachers is entitled to a credit against
3the contributions required under this subsection (e) with
4respect to salaries paid to teachers for the period January 1,
52002 through June 30, 2003, equal to the amount paid by that
6employer under subsection (a-5) of Section 6.6 of the State
7Employees Group Insurance Act of 1971 with respect to salaries
8paid to teachers for that period.
9    The additional 1% employee contribution required under
10Section 16-152 by Public Act 90-582 is the responsibility of
11the teacher and not the teacher's employer, unless the
12employer agrees, through collective bargaining or otherwise,
13to make the contribution on behalf of the teacher.
14    If an employer is required by a contract in effect on May
151, 1998 between the employer and an employee organization to
16pay, on behalf of all its full-time employees covered by this
17Article, all mandatory employee contributions required under
18this Article, then the employer shall be excused from paying
19the employer contribution required under this subsection (e)
20for the balance of the term of that contract. The employer and
21the employee organization shall jointly certify to the System
22the existence of the contractual requirement, in such form as
23the System may prescribe. This exclusion shall cease upon the
24termination, extension, or renewal of the contract at any time
25after May 1, 1998.
26    (f) If June 4, 2018 (Public Act 100-587) the amount of a

 

 

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1teacher's salary for any school year used to determine final
2average salary exceeds the member's annual full-time salary
3rate with the same employer for the previous school year by
4more than 6%, the teacher's employer shall pay to the System,
5in addition to all other payments required under this Section
6and in accordance with guidelines established by the System,
7the present value of the increase in benefits resulting from
8the portion of the increase in salary that is in excess of 6%.
9This present value shall be computed by the System on the basis
10of the actuarial assumptions and tables used in the most
11recent actuarial valuation of the System that is available at
12the time of the computation. If a teacher's salary for the
132005-2006 school year is used to determine final average
14salary under this subsection (f), then the changes made to
15this subsection (f) by Public Act 94-1057 shall apply in
16calculating whether the increase in his or her salary is in
17excess of 6%. For the purposes of this Section, change in
18employment under Section 10-21.12 of the School Code on or
19after June 1, 2005 shall constitute a change in employer. The
20System may require the employer to provide any pertinent
21information or documentation. The changes made to this
22subsection (f) by Public Act 94-1111 apply without regard to
23whether the teacher was in service on or after its effective
24date.
25    Whenever it determines that a payment is or may be
26required under this subsection, the System shall calculate the

 

 

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1amount of the payment and bill the employer for that amount.
2The bill shall specify the calculations used to determine the
3amount due. If the employer disputes the amount of the bill, it
4may, within 30 days after receipt of the bill, apply to the
5System in writing for a recalculation. The application must
6specify in detail the grounds of the dispute and, if the
7employer asserts that the calculation is subject to subsection
8(g) or (h) of this Section, must include an affidavit setting
9forth and attesting to all facts within the employer's
10knowledge that are pertinent to the applicability of that
11subsection. Upon receiving a timely application for
12recalculation, the System shall review the application and, if
13appropriate, recalculate the amount due.
14    The employer contributions required under this subsection
15(f) may be paid in the form of a lump sum within 90 days after
16receipt of the bill. If the employer contributions are not
17paid within 90 days after receipt of the bill, then interest
18will be charged at a rate equal to the System's annual
19actuarially assumed rate of return on investment compounded
20annually from the 91st day after receipt of the bill. Payments
21must be concluded within 3 years after the employer's receipt
22of the bill.
23    (f-1) (Blank). June 4, 2018 (Public Act 100-587)
24    (g) This subsection (g) applies only to payments made or
25salary increases given on or after June 1, 2005 but before July
261, 2011. The changes made by Public Act 94-1057 shall not

 

 

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1require the System to refund any payments received before July
231, 2006 (the effective date of Public Act 94-1057).
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases paid to
5teachers under contracts or collective bargaining agreements
6entered into, amended, or renewed before June 1, 2005.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude salary increases paid to a
9teacher at a time when the teacher is 10 or more years from
10retirement eligibility under Section 16-132 or 16-133.2.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude salary increases resulting from
13overload work, including summer school, when the school
14district has certified to the System, and the System has
15approved the certification, that (i) the overload work is for
16the sole purpose of classroom instruction in excess of the
17standard number of classes for a full-time teacher in a school
18district during a school year and (ii) the salary increases
19are equal to or less than the rate of pay for classroom
20instruction computed on the teacher's current salary and work
21schedule.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude a salary increase resulting from
24a promotion (i) for which the employee is required to hold a
25certificate or supervisory endorsement issued by the State
26Teacher Certification Board that is a different certification

 

 

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

 

 

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1the report with the Governor and the General Assembly by
2January 1, 2007 that contains all of the following
3information:
4        (1) The number of recalculations required by the
5    changes made to this Section by Public Act 94-1057 for
6    each 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
22amount determined by the System to be equal to the employer
23normal cost, as established by the System and expressed as a
24total percentage of payroll, multiplied by the amount of
25salary in excess of the amount of the salary set for the
26Governor. This amount shall be computed by the System on the

 

 

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

 

 

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1contribution to the System, the value of the System's assets
2shall be equal to the actuarial value of the System's assets,
3which shall be calculated as follows:
4    As of June 30, 2008, the actuarial value of the System's
5assets shall be equal to the market value of the assets as of
6that date. In determining the actuarial value of the System's
7assets for fiscal years after June 30, 2008, any actuarial
8gains or losses from investment return incurred in a fiscal
9year shall be recognized in equal annual amounts over the
105-year period following that fiscal year.
11    (k) For purposes of determining the required State
12contribution to the system for a particular year, the
13actuarial value of assets shall be assumed to earn a rate of
14return equal to the system's actuarially assumed rate of
15return.
16(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
17100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
188-14-18; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; revised
198-13-19.)
 
20    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
21    Sec. 17-127. Financing; revenues for the Fund.
22    (a) The revenues for the Fund shall consist of: (1)
23amounts paid into the Fund by contributors thereto and from
24employer contributions and State appropriations in accordance
25with this Article; (2) amounts contributed to the Fund by an

 

 

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

 

 

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1    (3) of Section 17-142.1 of this Code to defray health
2    insurance costs. Funds for this paragraph (1) shall come
3    from funds appropriated for Evidence-Based Funding
4    pursuant to Section 18-8.15 of the School Code.
5        (2) Beginning in State fiscal year 2019, the State
6    shall contribute for each fiscal year an amount to be
7    determined by the Fund, equal to the employer normal cost
8    for that fiscal year, plus the amount allowed pursuant to
9    paragraph (3) of Section 17-142.1 to defray health
10    insurance costs.
11    (e) The Board shall determine the amount of State
12contributions required for each fiscal year on the basis of
13the actuarial tables and other assumptions adopted by the
14Board and the recommendations of the actuary. On or before
15November 1 of each year, beginning November 1, 2017, the Board
16shall submit to the State Actuary, the Governor, and the
17General Assembly a proposed certification of the amount of the
18required State contribution to the Fund for the next fiscal
19year, along with all of the actuarial assumptions,
20calculations, and data upon which that proposed certification
21is 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 of each year , 2018 and each
3January 15 thereafter, the Board shall certify to the
4Governor, the State Superintendent of Education, and the
5General Assembly the amount of the required State contribution
6for the next fiscal year. The certification shall include a
7copy of the actuarial recommendations upon which it is based
8and shall specifically identify the Fund's projected employer
9normal cost for that fiscal year. The Board's certification
10must note any deviations from the State Actuary's recommended
11changes, the reason or reasons for not following the State
12Actuary's recommended changes, and the fiscal impact of not
13following the State Actuary's recommended changes on the
14required State contribution.
15    For the purposes of this Article, including issuing
16vouchers, and for the purposes of subsection (h) of Section
171.1 of the State Pension Funds Continuing Appropriation Act,
18the State contribution specified for State fiscal year 2018
19shall be deemed to have been certified, by operation of law and
20without official action by the Board or the State Actuary, in
21the amount provided in subsection (c) and subsection (d) of
22this Section.
23    (g) For State fiscal year 2018, the State Board of
24Education shall submit vouchers, as directed by the Board, for
25payment of State contributions to the Fund for the required
26annual State contribution under subsection (d) of this

 

 

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1Section. These vouchers shall be paid by the State Comptroller
2and Treasurer by warrants drawn on the amount appropriated to
3the State Board of Education from the Common School Fund in
4Section 5 of Article 97 of Public Act 100-21. If State
5appropriations for State fiscal year 2018 are less than the
6amount lawfully vouchered under this subsection, the
7difference shall be paid from the Common School Fund under the
8continuing appropriation authority provided in Section 1.1 of
9the State Pension Funds Continuing Appropriation Act.
10    (h) For State fiscal year 2018, the Board shall submit
11vouchers for the payment of State contributions to the Fund
12for the required annual State contribution under subsection
13(c) of this Section. Beginning in State fiscal year 2019, the
14Board shall submit vouchers for payment of State contributions
15to the Fund for the required annual State contribution under
16subsections (c) and (d) of this Section. These vouchers shall
17be paid by the State Comptroller and Treasurer by warrants
18drawn on the funds appropriated to the Fund for that fiscal
19year. If State appropriations to the Fund for the applicable
20fiscal year are less than the amount lawfully vouchered under
21this subsection, the difference shall be paid from the Common
22School Fund under the continuing appropriation authority
23provided in Section 1.1 of the State Pension Funds Continuing
24Appropriation Act.
25(Source: P.A. 100-465, eff. 8-31-17.)
 

 

 

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1    Section 10. The School Code is amended by changing Section
218-8.15 as follows:
 
3    (105 ILCS 5/18-8.15)
4    Sec. 18-8.15. Evidence-Based Funding for student success
5for the 2017-2018 and subsequent school years.
6    (a) General provisions.
7        (1) The purpose of this Section is to ensure that, by
8    June 30, 2027 and beyond, this State has a kindergarten
9    through grade 12 public education system with the capacity
10    to ensure the educational development of all persons to
11    the limits of their capacities in accordance with Section
12    1 of Article X of the Constitution of the State of
13    Illinois. To accomplish that objective, this Section
14    creates a method of funding public education that is
15    evidence-based; is sufficient to ensure every student
16    receives a meaningful opportunity to learn irrespective of
17    race, ethnicity, sexual orientation, gender, or
18    community-income level; and is sustainable and
19    predictable. When fully funded under this Section, every
20    school shall have the resources, based on what the
21    evidence indicates is needed, to:
22            (A) provide all students with a high quality
23        education that offers the academic, enrichment, social
24        and emotional support, technical, and career-focused
25        programs that will allow them to become competitive

 

 

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1        workers, responsible parents, productive citizens of
2        this State, and active members of our national
3        democracy;
4            (B) ensure all students receive the education they
5        need to graduate from high school with the skills
6        required to pursue post-secondary education and
7        training for a rewarding career;
8            (C) reduce, with a goal of eliminating, the
9        achievement gap between at-risk and non-at-risk
10        students by raising the performance of at-risk
11        students and not by reducing standards; and
12            (D) ensure this State satisfies its obligation to
13        assume the primary responsibility to fund public
14        education and simultaneously relieve the
15        disproportionate burden placed on local property taxes
16        to fund schools.
17        (2) The Evidence-Based Funding formula under this
18    Section shall be applied to all Organizational Units in
19    this State. The Evidence-Based Funding formula outlined in
20    this Act is based on the formula outlined in Senate Bill 1
21    of the 100th General Assembly, as passed by both
22    legislative chambers. As further defined and described in
23    this Section, there are 4 major components of the
24    Evidence-Based Funding model:
25            (A) First, the model calculates a unique Adequacy
26        Target for each Organizational Unit in this State that

 

 

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1        considers the costs to implement research-based
2        activities, the unit's student demographics, and
3        regional wage differences.
4            (B) Second, the model calculates each
5        Organizational Unit's Local Capacity, or the amount
6        each Organizational Unit is assumed to contribute
7        toward its Adequacy Target from local resources.
8            (C) Third, the model calculates how much funding
9        the State currently contributes to the Organizational
10        Unit and adds that to the unit's Local Capacity to
11        determine the unit's overall current adequacy of
12        funding.
13            (D) Finally, the model's distribution method
14        allocates new State funding to those Organizational
15        Units that are least well-funded, considering both
16        Local Capacity and State funding, in relation to their
17        Adequacy Target.
18        (3) An Organizational Unit receiving any funding under
19    this Section may apply those funds to any fund so received
20    for which that Organizational Unit is authorized to make
21    expenditures by law.
22        (4) As used in this Section, the following terms shall
23    have the meanings ascribed in this paragraph (4):
24        "Adequacy Target" is defined in paragraph (1) of
25    subsection (b) of this Section.
26        "Adjusted EAV" is defined in paragraph (4) of

 

 

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

 

 

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

 

 

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1    to the State Board as enrolled in the Organizational Unit
2    on October 1 in the immediately preceding school year,
3    plus the pre-kindergarten students who receive special
4    education services of 2 or more hours a day as reported to
5    the State Board on December 1 in the immediately preceding
6    school year, or the average number of students (grades K
7    through 12) reported to the State Board as enrolled in the
8    Organizational Unit on October 1, plus the
9    pre-kindergarten students who receive special education
10    services of 2 or more hours a day as reported to the State
11    Board on December 1, for each of the immediately preceding
12    3 school years. For fiscal year 2019 and each subsequent
13    fiscal year, "Average Student Enrollment" or "ASE" means,
14    for an Organizational Unit, the greater of the average
15    number of students (grades K through 12) reported to the
16    State Board as enrolled in the Organizational Unit on
17    October 1 and March 1 in the immediately preceding school
18    year, plus the pre-kindergarten students who receive
19    special education services as reported to the State Board
20    on October 1 and March 1 in the immediately preceding
21    school year, or the average number of students (grades K
22    through 12) reported to the State Board as enrolled in the
23    Organizational Unit on October 1 and March 1, plus the
24    pre-kindergarten students who receive special education
25    services as reported to the State Board on October 1 and
26    March 1, for each of the immediately preceding 3 school

 

 

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1    years. For the purposes of this definition, "enrolled in
2    the Organizational Unit" means the number of students
3    reported to the State Board who are enrolled in schools
4    within the Organizational Unit that the student attends or
5    would attend if not placed or transferred to another
6    school or program to receive needed services. For the
7    purposes of calculating "ASE", all students, grades K
8    through 12, excluding those attending kindergarten for a
9    half day and students attending an alternative education
10    program operated by a regional office of education or
11    intermediate service center, shall be counted as 1.0. All
12    students attending kindergarten for a half day shall be
13    counted as 0.5, unless in 2017 by June 15 or by March 1 in
14    subsequent years, the school district reports to the State
15    Board of Education the intent to implement full-day
16    kindergarten district-wide for all students, then all
17    students attending kindergarten shall be counted as 1.0.
18    Special education pre-kindergarten students shall be
19    counted as 0.5 each. If the State Board does not collect or
20    has not collected both an October 1 and March 1 enrollment
21    count by grade or a December 1 collection of special
22    education pre-kindergarten students as of August 31, 2017
23    (the effective date of Public Act 100-465), it shall
24    establish such collection for all future years. For any
25    year in which a count by grade level was collected only
26    once, that count shall be used as the single count

 

 

HB2787- 36 -LRB102 15092 NHT 20447 b

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

 

 

HB2787- 37 -LRB102 15092 NHT 20447 b

1    of subsection (g) of this Section.
2        "Base Funding Minimum" is defined in subsection (e) of
3    this Section.
4        "Base Tax Year" means the property tax levy year used
5    to calculate the Budget Year allocation of primary State
6    aid.
7        "Base Tax Year's Extension" means the product of the
8    equalized assessed valuation utilized by the county clerk
9    in the Base Tax Year multiplied by the limiting rate as
10    calculated by the county clerk and defined in PTELL.
11        "Bilingual Education Allocation" means the amount of
12    an Organizational Unit's final Adequacy Target
13    attributable to bilingual education divided by the
14    Organizational Unit's final Adequacy Target, the product
15    of which shall be multiplied by the amount of new funding
16    received pursuant to this Section. An Organizational
17    Unit's final Adequacy Target attributable to bilingual
18    education shall include all additional investments in
19    English learner students' adequacy elements.
20        "Budget Year" means the school year for which primary
21    State aid is calculated and awarded under this Section.
22        "Central office" means individual administrators and
23    support service personnel charged with managing the
24    instructional programs, business and operations, and
25    security of the Organizational Unit.
26        "Comparable Wage Index" or "CWI" means a regional cost

 

 

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1    differentiation metric that measures systemic, regional
2    variations in the salaries of college graduates who are
3    not educators. The CWI utilized for this Section shall,
4    for the first 3 years of Evidence-Based Funding
5    implementation, be the CWI initially developed by the
6    National Center for Education Statistics, as most recently
7    updated by Texas A & M University. In the fourth and
8    subsequent years of Evidence-Based Funding implementation,
9    the State Superintendent shall re-determine the CWI using
10    a similar methodology to that identified in the Texas A & M
11    University study, with adjustments made no less frequently
12    than once every 5 years.
13        "Computer technology and equipment" means computers
14    servers, notebooks, network equipment, copiers, printers,
15    instructional software, security software, curriculum
16    management courseware, and other similar materials and
17    equipment.
18        "Computer technology and equipment investment
19    allocation" means the final Adequacy Target amount of an
20    Organizational Unit assigned to Tier 1 or Tier 2 in the
21    prior school year attributable to the additional $285.50
22    per student computer technology and equipment investment
23    grant divided by the Organizational Unit's final Adequacy
24    Target, the result of which shall be multiplied by the
25    amount of new funding received pursuant to this Section.
26    An Organizational Unit assigned to a Tier 1 or Tier 2 final

 

 

HB2787- 39 -LRB102 15092 NHT 20447 b

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

 

 

HB2787- 40 -LRB102 15092 NHT 20447 b

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

 

 

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1    learners, with the exception that EL student enrollment
2    shall include students in grades pre-kindergarten through
3    12.
4        "Essential Elements" means those elements, resources,
5    and educational programs that have been identified through
6    academic research as necessary to improve student success,
7    improve academic performance, close achievement gaps, and
8    provide for other per student costs related to the
9    delivery and leadership of the Organizational Unit, as
10    well as the maintenance and operations of the unit, and
11    which are specified in paragraph (2) of subsection (b) of
12    this Section.
13        "Evidence-Based Funding" means State funding provided
14    to an Organizational Unit pursuant to this Section.
15        "Extended day" means academic and enrichment programs
16    provided to students outside the regular school day before
17    and after school or during non-instructional times during
18    the school day.
19        "Extension Limitation Ratio" means a numerical ratio
20    in which the numerator is the Base Tax Year's Extension
21    and the denominator is the Preceding Tax Year's Extension.
22        "Final Percent of Adequacy" is defined in paragraph
23    (4) of subsection (f) of this Section.
24        "Final Resources" is defined in paragraph (3) of
25    subsection (f) of this Section.
26        "Full-time equivalent" or "FTE" means the full-time

 

 

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1    equivalency compensation for staffing the relevant
2    position at an Organizational Unit.
3        "Funding Gap" is defined in paragraph (1) of
4    subsection (g).
5        "Guidance counselor" means a licensed guidance
6    counselor who provides guidance and counseling support for
7    students within an Organizational Unit.
8        "Hybrid District" means a partial elementary unit
9    district created pursuant to Article 11E of this Code.
10        "Instructional assistant" means a core or special
11    education, non-licensed employee who assists a teacher in
12    the classroom and provides academic support to students.
13        "Instructional facilitator" means a qualified teacher
14    or licensed teacher leader who facilitates and coaches
15    continuous improvement in classroom instruction; provides
16    instructional support to teachers in the elements of
17    research-based instruction or demonstrates the alignment
18    of instruction with curriculum standards and assessment
19    tools; develops or coordinates instructional programs or
20    strategies; develops and implements training; chooses
21    standards-based instructional materials; provides
22    teachers with an understanding of current research; serves
23    as a mentor, site coach, curriculum specialist, or lead
24    teacher; or otherwise works with fellow teachers, in
25    collaboration, to use data to improve instructional
26    practice or develop model lessons.

 

 

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1        "Instructional materials" means relevant
2    instructional materials for student instruction,
3    including, but not limited to, textbooks, consumable
4    workbooks, laboratory equipment, library books, and other
5    similar materials.
6        "Laboratory School" means a public school that is
7    created and operated by a public university and approved
8    by the State Board.
9        "Librarian" means a teacher with an endorsement as a
10    library information specialist or another individual whose
11    primary responsibility is overseeing library resources
12    within an Organizational Unit.
13        "Limiting rate for Hybrid Districts" means the
14    combined elementary school and high school limiting rates.
15        "Local Capacity" is defined in paragraph (1) of
16    subsection (c) of this Section.
17        "Local Capacity Percentage" is defined in subparagraph
18    (A) of paragraph (2) of subsection (c) of this Section.
19        "Local Capacity Ratio" is defined in subparagraph (B)
20    of paragraph (2) of subsection (c) of this Section.
21        "Local Capacity Target" is defined in paragraph (2) of
22    subsection (c) of this Section.
23        "Low-Income Count" means, for an Organizational Unit
24    in a fiscal year, the higher of the average number of
25    students for the prior school year or the immediately
26    preceding 3 school years who, as of July 1 of the

 

 

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1    immediately preceding fiscal year (as determined by the
2    Department of Human Services), are eligible for at least
3    one of the following low-income programs: Medicaid, the
4    Children's Health Insurance Program, Temporary Assistance
5    for Needy Families (TANF), or the Supplemental Nutrition
6    Assistance Program, excluding pupils who are eligible for
7    services provided by the Department of Children and Family
8    Services. Until such time that grade level low-income
9    populations become available, grade level low-income
10    populations shall be determined by applying the low-income
11    percentage to total student enrollments by grade level.
12    The low-income percentage is determined by dividing the
13    Low-Income Count by the Average Student Enrollment. The
14    low-income percentage for programs operated by a regional
15    office of education or an intermediate service center must
16    be set to the weighted average of the low-income
17    percentages of all of the school districts in the service
18    region. The weighted low-income percentage is the result
19    of multiplying the low-income percentage of each school
20    district served by the regional office of education or
21    intermediate service center by each school district's
22    Average Student Enrollment, summarizing those products and
23    dividing the total by the total Average Student Enrollment
24    for the service region.
25        "Maintenance and operations" means custodial services,
26    facility and ground maintenance, facility operations,

 

 

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1    facility security, routine facility repairs, and other
2    similar services and functions.
3        "Minimum Funding Level" is defined in paragraph (9) of
4    subsection (g) of this Section.
5        "New Property Tax Relief Pool Funds" means, for any
6    given fiscal year, all State funds appropriated under
7    Section 2-3.170 of this the School Code.
8        "New State Funds" means, for a given school year, all
9    State funds appropriated for Evidence-Based Funding in
10    excess of the amount needed to fund the Base Funding
11    Minimum for all Organizational Units in that school year.
12        "Net State Contribution Target" means, for a given
13    school year, the amount of State funds that would be
14    necessary to fully meet the Adequacy Target of an
15    Operational Unit minus the Preliminary Resources available
16    to each unit.
17        "Nurse" means an individual licensed as a certified
18    school nurse, in accordance with the rules established for
19    nursing services by the State Board, who is an employee of
20    and is available to provide health care-related services
21    for students of an Organizational Unit.
22        "Operating Tax Rate" means the rate 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    For Hybrid Districts, the Operating Tax Rate shall be the

 

 

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1    combined elementary and high school rates utilized in the
2    previous year to extend property taxes for all purposes,
3    except Bond and Interest, Summer School, Rent, Capital
4    Improvement, and Vocational Education Building purposes.
5        "Organizational Unit" means a Laboratory School or any
6    public school district that is recognized as such by the
7    State Board and that contains elementary schools typically
8    serving kindergarten through 5th grades, middle schools
9    typically serving 6th through 8th grades, high schools
10    typically serving 9th through 12th grades, a program
11    established under Section 2-3.66 or 2-3.41, or a program
12    operated by a regional office of education or an
13    intermediate service center under Article 13A or 13B. The
14    General Assembly acknowledges that the actual grade levels
15    served by a particular Organizational Unit may vary
16    slightly from what is typical.
17        "Organizational Unit CWI" is determined by calculating
18    the CWI in the region and original county in which an
19    Organizational Unit's primary administrative office is
20    located as set forth in this paragraph, provided that if
21    the Organizational Unit CWI as calculated in accordance
22    with this paragraph is less than 0.9, the Organizational
23    Unit CWI shall be increased to 0.9. Each county's current
24    CWI value shall be adjusted based on the CWI value of that
25    county's neighboring Illinois counties, to create a
26    "weighted adjusted index value". This shall be calculated

 

 

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1    by summing the CWI values of all of a county's adjacent
2    Illinois counties and dividing by the number of adjacent
3    Illinois counties, then taking the weighted value of the
4    original county's CWI value and the adjacent Illinois
5    county average. To calculate this weighted value, if the
6    number of adjacent Illinois counties is greater than 2,
7    the original county's CWI value will be weighted at 0.25
8    and the adjacent Illinois county average will be weighted
9    at 0.75. If the number of adjacent Illinois counties is 2,
10    the original county's CWI value will be weighted at 0.33
11    and the adjacent Illinois county average will be weighted
12    at 0.66. The greater of the county's current CWI value and
13    its weighted adjusted index value shall be used as the
14    Organizational Unit CWI.
15        "Preceding Tax Year" means the property tax levy year
16    immediately preceding the Base Tax Year.
17        "Preceding Tax Year's Extension" means the product of
18    the equalized assessed valuation utilized by the county
19    clerk in the Preceding Tax Year multiplied by the
20    Operating Tax Rate.
21        "Preliminary Percent of Adequacy" is defined in
22    paragraph (2) of subsection (f) of this Section.
23        "Preliminary Resources" is defined in paragraph (2) of
24    subsection (f) of this Section.
25        "Principal" means a school administrator duly endorsed
26    to be employed as a principal in this State.

 

 

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1        "Professional development" means training programs for
2    licensed staff in schools, including, but not limited to,
3    programs that assist in implementing new curriculum
4    programs, provide data focused or academic assessment data
5    training to help staff identify a student's weaknesses and
6    strengths, target interventions, improve instruction,
7    encompass instructional strategies for English learner,
8    gifted, or at-risk students, address inclusivity, cultural
9    sensitivity, or implicit bias, or otherwise provide
10    professional support for licensed staff.
11        "Prototypical" means 450 special education
12    pre-kindergarten and kindergarten through grade 5 students
13    for an elementary school, 450 grade 6 through 8 students
14    for a middle school, and 600 grade 9 through 12 students
15    for a high school.
16        "PTELL" means the Property Tax Extension Limitation
17    Law.
18        "PTELL EAV" is defined in paragraph (4) of subsection
19    (d) of this Section.
20        "Pupil support staff" means a nurse, psychologist,
21    social worker, family liaison personnel, or other staff
22    member who provides support to at-risk or struggling
23    students.
24        "Real Receipts" is defined in paragraph (1) of
25    subsection (d) of this Section.
26        "Regionalization Factor" means, for a particular

 

 

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1    Organizational Unit, the figure derived by dividing the
2    Organizational Unit CWI by the Statewide Weighted CWI.
3        "School site staff" means the primary school secretary
4    and any additional clerical personnel assigned to a
5    school.
6        "Special education" means special educational
7    facilities and services, as defined in Section 14-1.08 of
8    this Code.
9        "Special Education Allocation" means the amount of an
10    Organizational Unit's final Adequacy Target attributable
11    to special education divided by the Organizational Unit's
12    final Adequacy Target, the product of which shall be
13    multiplied by the amount of new funding received pursuant
14    to this Section. An Organizational Unit's final Adequacy
15    Target attributable to special education shall include all
16    special education investment adequacy elements.
17        "Specialist teacher" means a teacher who provides
18    instruction in subject areas not included in core
19    subjects, including, but not limited to, art, music,
20    physical education, health, driver education,
21    career-technical education, and such other subject areas
22    as may be mandated by State law or provided by an
23    Organizational Unit.
24        "Specially Funded Unit" means an Alternative School,
25    safe school, Department of Juvenile Justice school,
26    special education cooperative or entity recognized by the

 

 

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1    State Board as a special education cooperative,
2    State-approved charter school, or alternative learning
3    opportunities program that received direct funding from
4    the State Board during the 2016-2017 school year through
5    any of the funding sources included within the calculation
6    of the Base Funding Minimum or Glenwood Academy.
7        "Supplemental Grant Funding" means supplemental
8    general State aid funding received by an Organizational
9    Unit during the 2016-2017 school year pursuant to
10    subsection (H) of Section 18-8.05 of this Code (now
11    repealed).
12        "State Adequacy Level" is the sum of the Adequacy
13    Targets of all Organizational Units.
14        "State Board" means the State Board of Education.
15        "State Superintendent" means the State Superintendent
16    of Education.
17        "Statewide Weighted CWI" means a figure determined by
18    multiplying each Organizational Unit CWI times the ASE for
19    that Organizational Unit creating a weighted value,
20    summing all Organizational Units' weighted values, and
21    dividing by the total ASE of all Organizational Units,
22    thereby creating an average weighted index.
23        "Student activities" means non-credit producing
24    after-school programs, including, but not limited to,
25    clubs, bands, sports, and other activities authorized by
26    the school board of the Organizational Unit.

 

 

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1        "Substitute teacher" means an individual teacher or
2    teaching assistant who is employed by an Organizational
3    Unit and is temporarily serving the Organizational Unit on
4    a per diem or per period-assignment basis to replace
5    another staff member.
6        "Summer school" means academic and enrichment programs
7    provided to students during the summer months outside of
8    the regular school year.
9        "Supervisory aide" means a non-licensed staff member
10    who helps in supervising students of an Organizational
11    Unit, but does so outside of the classroom, in situations
12    such as, but not limited to, monitoring hallways and
13    playgrounds, supervising lunchrooms, or supervising
14    students when being transported in buses serving the
15    Organizational Unit.
16        "Target Ratio" is defined in paragraph (4) of
17    subsection (g).
18        "Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined
19    in paragraph (3) of subsection (g).
20        "Tier 1 Aggregate Funding", "Tier 2 Aggregate
21    Funding", "Tier 3 Aggregate Funding", and "Tier 4
22    Aggregate Funding" are defined in paragraph (1) of
23    subsection (g).
24    (b) Adequacy Target calculation.
25        (1) Each Organizational Unit's Adequacy Target is the
26    sum of the Organizational Unit's cost of providing

 

 

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1    Essential Elements, as calculated in accordance with this
2    subsection (b), with the salary amounts in the Essential
3    Elements multiplied by a Regionalization Factor calculated
4    pursuant to paragraph (3) of this subsection (b).
5        (2) The Essential Elements are attributable on a pro
6    rata basis related to defined subgroups of the ASE of each
7    Organizational Unit as specified in this paragraph (2),
8    with investments and FTE positions pro rata funded based
9    on ASE counts in excess of or less than the thresholds set
10    forth in this paragraph (2). The method for calculating
11    attributable pro rata costs and the defined subgroups
12    thereto are as follows:
13            (A) Core class size investments. Each
14        Organizational Unit shall receive the funding required
15        to support that number of FTE core teacher positions
16        as is needed to keep the respective class sizes of the
17        Organizational Unit to the following maximum numbers:
18                (i) For grades kindergarten through 3, the
19            Organizational Unit shall receive funding required
20            to support one FTE core teacher position for every
21            15 Low-Income Count students in those grades and
22            one FTE core teacher position for every 20
23            non-Low-Income Count students in those grades.
24                (ii) For grades 4 through 12, the
25            Organizational Unit shall receive funding required
26            to support one FTE core teacher position for every

 

 

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1            20 Low-Income Count students in those grades and
2            one FTE core teacher position for every 25
3            non-Low-Income Count students in those grades.
4            The number of non-Low-Income Count students in a
5        grade shall be determined by subtracting the
6        Low-Income students in that grade from the ASE of the
7        Organizational Unit for that grade.
8            (B) Specialist teacher investments. Each
9        Organizational Unit shall receive the funding needed
10        to cover that number of FTE specialist teacher
11        positions that correspond to the following
12        percentages:
13                (i) if the Organizational Unit operates an
14            elementary or middle school, then 20.00% of the
15            number of the Organizational Unit's core teachers,
16            as determined under subparagraph (A) of this
17            paragraph (2); and
18                (ii) if such Organizational Unit operates a
19            high school, then 33.33% of the number of the
20            Organizational Unit's core teachers.
21            (C) Instructional facilitator investments. Each
22        Organizational Unit shall receive the funding needed
23        to cover one FTE instructional facilitator position
24        for every 200 combined ASE of pre-kindergarten
25        children with disabilities and all kindergarten
26        through grade 12 students of the Organizational Unit.

 

 

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1            (D) Core intervention teacher (tutor) investments.
2        Each Organizational Unit shall receive the funding
3        needed to cover one FTE teacher position for each
4        prototypical elementary, middle, and high school.
5            (E) Substitute teacher investments. Each
6        Organizational Unit shall receive the funding needed
7        to cover substitute teacher costs that is equal to
8        5.70% of the minimum pupil attendance days required
9        under Section 10-19 of this Code for all full-time
10        equivalent core, specialist, and intervention
11        teachers, school nurses, special education teachers
12        and instructional assistants, instructional
13        facilitators, and summer school and extended day
14        teacher positions, as determined under this paragraph
15        (2), at a salary rate of 33.33% of the average salary
16        for grade K through 12 teachers and 33.33% of the
17        average salary of each instructional assistant
18        position.
19            (F) Core guidance counselor investments. Each
20        Organizational Unit shall receive the funding needed
21        to cover one FTE guidance counselor for each 450
22        combined ASE of pre-kindergarten children with
23        disabilities and all kindergarten through grade 5
24        students, plus one FTE guidance counselor for each 250
25        grades 6 through 8 ASE middle school students, plus
26        one FTE guidance counselor for each 250 grades 9

 

 

HB2787- 55 -LRB102 15092 NHT 20447 b

1        through 12 ASE high school students.
2            (G) Nurse investments. Each Organizational Unit
3        shall receive the funding needed to cover one FTE
4        nurse for each 750 combined ASE of pre-kindergarten
5        children with disabilities and all kindergarten
6        through grade 12 students across all grade levels it
7        serves.
8            (H) Supervisory aide investments. Each
9        Organizational Unit shall receive the funding needed
10        to cover one FTE for each 225 combined ASE of
11        pre-kindergarten children with disabilities and all
12        kindergarten through grade 5 students, plus one FTE
13        for each 225 ASE middle school students, plus one FTE
14        for each 200 ASE high school students.
15            (I) Librarian investments. Each Organizational
16        Unit shall receive the funding needed to cover one FTE
17        librarian for each prototypical elementary school,
18        middle school, and high school and one FTE aide or
19        media technician for every 300 combined ASE of
20        pre-kindergarten children with disabilities and all
21        kindergarten through grade 12 students.
22            (J) Principal investments. Each Organizational
23        Unit shall receive the funding needed to cover one FTE
24        principal position for each prototypical elementary
25        school, plus one FTE principal position for each
26        prototypical middle school, plus one FTE principal

 

 

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

 

 

HB2787- 57 -LRB102 15092 NHT 20447 b

1            (O) Instructional material investments. Each
2        Organizational Unit shall receive $190 per student of
3        the combined ASE of pre-kindergarten children with
4        disabilities and all kindergarten through grade 12
5        students to cover instructional material costs.
6            (P) Assessment investments. Each Organizational
7        Unit shall receive $25 per student of the combined ASE
8        of pre-kindergarten children with disabilities and all
9        kindergarten through grade 12 students to cover
10        assessment costs.
11            (Q) Computer technology and equipment investments.
12        Each Organizational Unit shall receive $285.50 per
13        student of the combined ASE of pre-kindergarten
14        children with disabilities and all kindergarten
15        through grade 12 students to cover computer technology
16        and equipment costs. For the 2018-2019 school year and
17        subsequent school years, Organizational Units assigned
18        to Tier 1 and Tier 2 in the prior school year shall
19        receive an additional $285.50 per student of the
20        combined ASE of pre-kindergarten children with
21        disabilities and all kindergarten through grade 12
22        students to cover computer technology and equipment
23        costs in the Organizational Unit's Adequacy Target.
24        The State Board may establish additional requirements
25        for Organizational Unit expenditures of funds received
26        pursuant to this subparagraph (Q), including a

 

 

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1        requirement that funds received pursuant to this
2        subparagraph (Q) may be used only for serving the
3        technology needs of the district. It is the intent of
4        Public Act 100-465 that all Tier 1 and Tier 2 districts
5        receive the addition to their Adequacy Target in the
6        following year, subject to compliance with the
7        requirements of the State Board.
8            (R) Student activities investments. Each
9        Organizational Unit shall receive the following
10        funding amounts to cover student activities: $100 per
11        kindergarten through grade 5 ASE student in elementary
12        school, plus $200 per ASE student in middle school,
13        plus $675 per ASE student in high school.
14            (S) Maintenance and operations investments. Each
15        Organizational Unit shall receive $1,038 per student
16        of the combined ASE of pre-kindergarten children with
17        disabilities and all kindergarten through grade 12
18        students for day-to-day maintenance and operations
19        expenditures, including salary, supplies, and
20        materials, as well as purchased services, but
21        excluding employee benefits. The proportion of salary
22        for the application of a Regionalization Factor and
23        the calculation of benefits is equal to $352.92.
24            (T) Central office investments. Each
25        Organizational Unit shall receive $742 per student of
26        the combined ASE of pre-kindergarten children with

 

 

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1        disabilities and all kindergarten through grade 12
2        students to cover central office operations, including
3        administrators and classified personnel charged with
4        managing the instructional programs, business and
5        operations of the school district, and security
6        personnel. The proportion of salary for the
7        application of a Regionalization Factor and the
8        calculation of benefits is equal to $368.48.
9            (U) Employee benefit investments. Each
10        Organizational Unit shall receive 30% of the total of
11        all salary-calculated elements of the Adequacy Target,
12        excluding substitute teachers and student activities
13        investments, to cover benefit costs. For central
14        office and maintenance and operations investments, the
15        benefit calculation shall be based upon the salary
16        proportion of each investment.
17            For fiscal year 2022 and each fiscal year
18        thereafter, the State Superintendent shall calculate
19        the employer normal cost of teacher pensions of each
20        Organizational Unit, other than a school district
21        organized under Article 34 of this Code, by
22        determining the proportion of the total adequate
23        pensionable payroll attributable to the district's
24        adequate pensionable payroll, in which the adequate
25        pensionable payroll is calculated using the applicable
26        Regionalization Factor multiplied by the salaries of

 

 

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1        the positions set forth in paragraph (3) of this
2        subsection (b) and the administrators and classified
3        personnel described in subparagraph (T) of this
4        paragraph (2) that are covered by Article 16 of the
5        Illinois Pension Code, and multiplying that proportion
6        by the total employer normal cost amount most recently
7        certified by the Teachers' Retirement System of the
8        State of Illinois pursuant to subsection (b-5) of
9        Section 16-158 of the Illinois Pension Code. The
10        amount calculated by the State Superintendent as the
11        employer normal cost of teacher pensions for the
12        Organizational Unit shall be added to the employee
13        benefit investments specified under this subparagraph
14        (U).
15            For fiscal year 2022 and each fiscal year
16        thereafter, the amount most recently certified by the
17        Public School Teachers' Pension and Retirement Fund of
18        Chicago pursuant to subsection (f) of Section 17-127
19        of the Illinois Pension Code as the employer normal
20        cost of teacher pensions for a school district
21        organized under Article 34 of this Code shall be added
22        to the employee benefit investments specified under
23        this subparagraph (U).
24            If at any time the responsibility for funding the
25        employer normal cost of teacher pensions is assigned
26        to school districts, then that amount certified by the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        17-142.1 of the Illinois Pension Code in a given year.
2        In the preceding sentence, item (i) shall be certified
3        to the State Board of Education by the Teachers'
4        Retirement System of the State of Illinois and item
5        (ii) shall be certified to the State Board of
6        Education by the Public School Teachers' Pension and
7        Retirement Fund of the City of Chicago.
8        (3) If an Organizational Unit's Real Receipts are more
9    than its Local Capacity Target, then its Local Capacity
10    shall equal an Adjusted Local Capacity Target as
11    calculated in accordance with this paragraph (3). The
12    Adjusted Local Capacity Target is calculated as the sum of
13    the Organizational Unit's Local Capacity Target and its
14    Real Receipts Adjustment. The Real Receipts Adjustment
15    equals the Organizational Unit's Real Receipts less its
16    Local Capacity Target, with the resulting figure
17    multiplied by the Local Capacity Percentage.
18        As used in this paragraph (3), "Real Percent of
19    Adequacy" means the sum of an Organizational Unit's Real
20    Receipts, CPPRT, and Base Funding Minimum, with the
21    resulting figure divided by the Organizational Unit's
22    Adequacy Target.
23    (d) Calculation of Real Receipts, EAV, and Adjusted EAV
24for purposes of the Local Capacity calculation.
25        (1) An Organizational Unit's Real Receipts are the
26    product of its Applicable Tax Rate and its Adjusted EAV.

 

 

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

 

 

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1        Tax Code (i) an amount equal to the total amount by
2        which the homestead exemption allowed under Section
3        15-176 or 15-177 of the Property Tax Code for real
4        property situated in that Organizational Unit exceeds
5        the total amount that would have been allowed in that
6        Organizational Unit if the maximum reduction under
7        Section 15-176 was (I) $4,500 in Cook County or $3,500
8        in all other counties in tax year 2003 or (II) $5,000
9        in all counties in tax year 2004 and thereafter and
10        (ii) an amount equal to the aggregate amount for the
11        taxable year of all additional exemptions under
12        Section 15-175 of the Property Tax Code for owners
13        with a household income of $30,000 or less. The county
14        clerk of any county that is or was subject to the
15        provisions of Section 15-176 or 15-177 of the Property
16        Tax Code shall annually calculate and certify to the
17        Department of Revenue for each Organizational Unit all
18        homestead exemption amounts under Section 15-176 or
19        15-177 of the Property Tax Code and all amounts of
20        additional exemptions under Section 15-175 of the
21        Property Tax Code for owners with a household income
22        of $30,000 or less. It is the intent of this
23        subparagraph (A) that if the general homestead
24        exemption for a parcel of property is determined under
25        Section 15-176 or 15-177 of the Property Tax Code
26        rather than Section 15-175, then the calculation of

 

 

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1        EAV shall not be affected by the difference, if any,
2        between the amount of the general homestead exemption
3        allowed for that parcel of property under Section
4        15-176 or 15-177 of the Property Tax Code and the
5        amount that would have been allowed had the general
6        homestead exemption for that parcel of property been
7        determined under Section 15-175 of the Property Tax
8        Code. It is further the intent of this subparagraph
9        (A) that if additional exemptions are allowed under
10        Section 15-175 of the Property Tax Code for owners
11        with a household income of less than $30,000, then the
12        calculation of EAV shall not be affected by the
13        difference, if any, because of those additional
14        exemptions.
15            (B) With respect to any part of an Organizational
16        Unit within a redevelopment project area in respect to
17        which a municipality has adopted tax increment
18        allocation financing pursuant to the Tax Increment
19        Allocation Redevelopment Act, Division 74.4 of Article
20        11 of the Illinois Municipal Code, or the Industrial
21        Jobs Recovery Law, Division 74.6 of Article 11 of the
22        Illinois Municipal Code, no part of the current EAV of
23        real property located in any such project area that is
24        attributable to an increase above the total initial
25        EAV of such property shall be used as part of the EAV
26        of the Organizational Unit, until such time as all

 

 

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1        redevelopment project costs have been paid, as
2        provided in Section 11-74.4-8 of the Tax Increment
3        Allocation Redevelopment Act or in Section 11-74.6-35
4        of the Industrial Jobs Recovery Law. For the purpose
5        of the EAV of the Organizational Unit, the total
6        initial EAV or the current EAV, whichever is lower,
7        shall be used until such time as all redevelopment
8        project costs have been paid.
9            (B-5) The real property equalized assessed
10        valuation for a school district shall be adjusted by
11        subtracting from the real property value, as equalized
12        or assessed by the Department of Revenue, for the
13        district an amount computed by dividing the amount of
14        any abatement of taxes under Section 18-170 of the
15        Property Tax Code by 3.00% for a district maintaining
16        grades kindergarten through 12, by 2.30% for a
17        district maintaining grades kindergarten through 8, or
18        by 1.05% for a district maintaining grades 9 through
19        12 and adjusted by an amount computed by dividing the
20        amount of any abatement of taxes under subsection (a)
21        of Section 18-165 of the Property Tax Code by the same
22        percentage rates for district type as specified in
23        this subparagraph (B-5).
24            (C) For Organizational Units that are Hybrid
25        Districts, the State Superintendent shall use the
26        lesser of the adjusted equalized assessed valuation

 

 

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1        for property within the partial elementary unit
2        district for elementary purposes, as defined in
3        Article 11E of this Code, or the adjusted equalized
4        assessed valuation for property within the partial
5        elementary unit district for high school purposes, as
6        defined in Article 11E of this Code.
7        (4) An Organizational Unit's Adjusted EAV shall be the
8    average of its EAV over the immediately preceding 3 years
9    or its EAV in the immediately preceding year if the EAV in
10    the immediately preceding year has declined by 10% or more
11    compared to the 3-year average. In the event of
12    Organizational Unit reorganization, consolidation, or
13    annexation, the Organizational Unit's Adjusted EAV for the
14    first 3 years after such change shall be as follows: the
15    most current EAV shall be used in the first year, the
16    average of a 2-year EAV or its EAV in the immediately
17    preceding year if the EAV declines by 10% or more compared
18    to the 2-year average for the second year, and a 3-year
19    average EAV or its EAV in the immediately preceding year
20    if the Adjusted EAV declines by 10% or more compared to the
21    3-year average for the third year. For any school district
22    whose EAV in the immediately preceding year is used in
23    calculations, in the following year, the Adjusted EAV
24    shall be the average of its EAV over the immediately
25    preceding 2 years or the immediately preceding year if
26    that year represents a decline of 10% or more compared to

 

 

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

 

 

HB2787- 76 -LRB102 15092 NHT 20447 b

1        As used in this paragraph (4), "new property" and
2    "recovered tax increment value" shall have the meanings
3    set forth in the Property Tax Extension Limitation Law.
4    (e) Base Funding Minimum calculation.
5        (1) For the 2017-2018 school year, the Base Funding
6    Minimum of an Organizational Unit or a Specially Funded
7    Unit shall be the amount of State funds distributed to the
8    Organizational Unit or Specially Funded Unit during the
9    2016-2017 school year prior to any adjustments and
10    specified appropriation amounts described in this
11    paragraph (1) from the following Sections, as calculated
12    by the State Superintendent: Section 18-8.05 of this Code
13    (now repealed); Section 5 of Article 224 of Public Act
14    99-524 (equity grants); Section 14-7.02b of this Code
15    (funding for children requiring special education
16    services); Section 14-13.01 of this Code (special
17    education facilities and staffing), except for
18    reimbursement of the cost of transportation pursuant to
19    Section 14-13.01; Section 14C-12 of this Code (English
20    learners); and Section 18-4.3 of this Code (summer
21    school), based on an appropriation level of $13,121,600.
22    For a school district organized under Article 34 of this
23    Code, the Base Funding Minimum also includes (i) the funds
24    allocated to the school district pursuant to Section 1D-1
25    of this Code attributable to funding programs authorized
26    by the Sections of this Code listed in the preceding

 

 

HB2787- 77 -LRB102 15092 NHT 20447 b

1    sentence and (ii) the difference between (I) the funds
2    allocated to the school district pursuant to Section 1D-1
3    of this Code attributable to the funding programs
4    authorized by Section 14-7.02 (non-public special
5    education reimbursement), subsection (b) of Section
6    14-13.01 (special education transportation), Section 29-5
7    (transportation), Section 2-3.80 (agricultural
8    education), Section 2-3.66 (truants' alternative
9    education), Section 2-3.62 (educational service centers),
10    and Section 14-7.03 (special education - orphanage) of
11    this Code and Section 15 of the Childhood Hunger Relief
12    Act (free breakfast program) and (II) the school
13    district's actual expenditures for its non-public special
14    education, special education transportation,
15    transportation programs, agricultural education, truants'
16    alternative education, services that would otherwise be
17    performed by a regional office of education, special
18    education orphanage expenditures, and free breakfast, as
19    most recently calculated and reported pursuant to
20    subsection (f) of Section 1D-1 of this Code. The Base
21    Funding Minimum for Glenwood Academy shall be $625,500.
22    For programs operated by a regional office of education or
23    an intermediate service center, the Base Funding Minimum
24    must be the total amount of State funds allocated to those
25    programs in the 2018-2019 school year and amounts provided
26    pursuant to Article 34 of Public Act 100-586 and Section

 

 

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1    3-16 of this Code. All programs established after June 5,
2    2019 (the effective date of Public Act 101-10) and
3    administered by a regional office of education or an
4    intermediate service center must have an initial Base
5    Funding Minimum set to an amount equal to the first-year
6    ASE multiplied by the amount of per pupil funding received
7    in the previous school year by the lowest funded similar
8    existing program type. If the enrollment for a program
9    operated by a regional office of education or an
10    intermediate service center is zero, then it may not
11    receive Base Funding Minimum funds for that program in the
12    next fiscal year, and those funds must be distributed to
13    Organizational Units under subsection (g).
14        (2) For the 2018-2019 and subsequent school years, the
15    Base Funding Minimum of Organizational Units and Specially
16    Funded Units shall be the sum of (i) the amount of
17    Evidence-Based Funding for the prior school year, (ii) the
18    Base Funding Minimum for the prior school year, and (iii)
19    any amount received by a school district pursuant to
20    Section 7 of Article 97 of Public Act 100-21.
21        (3) Subject to approval by the General Assembly as
22    provided in this paragraph (3), an Organizational Unit
23    that meets all of the following criteria, as determined by
24    the State Board, shall have District Intervention Money
25    added to its Base Funding Minimum at the time the Base
26    Funding Minimum is calculated by the State Board:

 

 

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1            (A) The Organizational Unit is operating under an
2        Independent Authority under Section 2-3.25f-5 of this
3        Code for a minimum of 4 school years or is subject to
4        the control of the State Board pursuant to a court
5        order for a minimum of 4 school years.
6            (B) The Organizational Unit was designated as a
7        Tier 1 or Tier 2 Organizational Unit in the previous
8        school year under paragraph (3) of subsection (g) of
9        this Section.
10            (C) The Organizational Unit demonstrates
11        sustainability through a 5-year financial and
12        strategic plan.
13            (D) The Organizational Unit has made sufficient
14        progress and achieved sufficient stability in the
15        areas of governance, academic growth, and finances.
16        As part of its determination under this paragraph (3),
17    the State Board may consider the Organizational Unit's
18    summative designation, any accreditations of the
19    Organizational Unit, or the Organizational Unit's
20    financial profile, as calculated by the State Board.
21        If the State Board determines that an Organizational
22    Unit has met the criteria set forth in this paragraph (3),
23    it must submit a report to the General Assembly, no later
24    than January 2 of the fiscal year in which the State Board
25    makes it determination, on the amount of District
26    Intervention Money to add to the Organizational Unit's

 

 

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1    Base Funding Minimum. The General Assembly must review the
2    State Board's report and may approve or disapprove, by
3    joint resolution, the addition of District Intervention
4    Money. If the General Assembly fails to act on the report
5    within 40 calendar days from the receipt of the report,
6    the addition of District Intervention Money is deemed
7    approved. If the General Assembly approves the amount of
8    District Intervention Money to be added to the
9    Organizational Unit's Base Funding Minimum, the District
10    Intervention Money must be added to the Base Funding
11    Minimum annually thereafter.
12        For the first 4 years following the initial year that
13    the State Board determines that an Organizational Unit has
14    met the criteria set forth in this paragraph (3) and has
15    received funding under this Section, the Organizational
16    Unit must annually submit to the State Board, on or before
17    November 30, a progress report regarding its financial and
18    strategic plan under subparagraph (C) of this paragraph
19    (3). The plan shall include the financial data from the
20    past 4 annual financial reports or financial audits that
21    must be presented to the State Board by November 15 of each
22    year and the approved budget financial data for the
23    current year. The plan shall be developed according to the
24    guidelines presented to the Organizational Unit by the
25    State Board. The plan shall further include financial
26    projections for the next 3 fiscal years and include a

 

 

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1    discussion and financial summary of the Organizational
2    Unit's facility needs. If the Organizational Unit does not
3    demonstrate sufficient progress toward its 5-year plan or
4    if it has failed to file an annual financial report, an
5    annual budget, a financial plan, a deficit reduction plan,
6    or other financial information as required by law, the
7    State Board may establish a Financial Oversight Panel
8    under Article 1H of this Code. However, if the
9    Organizational Unit already has a Financial Oversight
10    Panel, the State Board may extend the duration of the
11    Panel.
12        (4) In this paragraph (4):
13        "Excess state payment" means any amount of an
14    Organizational Unit's Adjusted Base Funding Minimum that
15    is in excess of the expected State payment.
16        "Expected State payment" means the amount an
17    Organizational Unit would receive from the State if the
18    Evidence-Based Funding formula under this Section were
19    fully funded, calculated for each Organizational Unit by
20    taking the difference of the Organizational Unit's
21    regionalized Adequacy Target and its preliminary Local
22    Capacity Target.
23        For the 2022-2023 school year and subsequent school
24    years, the Base Funding Minimum of Organizational Units
25    shall exclude any excess State payment specified and
26    determined by the State Superintendent pursuant to this

 

 

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1    paragraph (4). For the 2022-2023 school year, the State
2    Superintendent shall exclude 33% of any excess State
3    payment amount from the Base Funding Minimum of the
4    Organizational Unit. For the 2024-2025 school year and
5    subsequent school years, the State Superintendent shall
6    exclude 100% of any excess State payment amount from the
7    Base Funding Minimum of the Organizational Unit. Each
8    school year, the State Superintendent shall distribute the
9    total amount of excess State payment amounts excluded
10    pursuant to this paragraph (4) as New State Funds pursuant
11    to subsection (g) of this Section. For the 2023-2024
12    school year, the State Superintendent shall exclude 66% of
13    any excess State payment amount from the Base Funding
14    Minimum of the Organizational Unit. If the amount of
15    excess State payment exceeds the amount of an
16    Organizational Unit's Base Funding Minimum payment, the
17    State Board shall deduct the remaining amount of excess
18    State payment from other funds due to the Organizational
19    Unit, provided that it may not reduce the Organizational
20    Unit's receipts to less than zero.
21    (f) Percent of Adequacy and Final Resources calculation.
22        (1) The Evidence-Based Funding formula establishes a
23    Percent of Adequacy for each Organizational Unit in order
24    to place such units into tiers for the purposes of the
25    funding distribution system described in subsection (g) of
26    this Section. Initially, an Organizational Unit's

 

 

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

 

 

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1    product of its Supplemental Grant Funding and Preliminary
2    Percent of Adequacy. Beginning in fiscal year 2022, an
3    Organizational Unit's Adjusted Base Funding Minimum is
4    equal to its Base Funding Minimum less its Supplemental
5    Grant Funding, with the resulting figure added to the
6    product of its Supplemental Grant Funding and Preliminary
7    Percent of Adequacy, plus the amount of the State-paid
8    employer normal cost paid on behalf of the Organizational
9    Unit's employees as certified under subsection (b-5) of
10    Section 16-158 or subsection (f) of Section 17-127 of the
11    Illinois Pension Code.
12    (g) Evidence-Based Funding formula distribution system.
13        (1) In each school year under the Evidence-Based
14    Funding formula, each Organizational Unit receives funding
15    equal to the sum of its Base Funding Minimum and the unit's
16    allocation of New State Funds determined pursuant to this
17    subsection (g). To allocate New State Funds, the
18    Evidence-Based Funding formula distribution system first
19    places all Organizational Units into one of 4 tiers in
20    accordance with paragraph (3) of this subsection (g),
21    based on the Organizational Unit's Final Percent of
22    Adequacy. New State Funds are allocated to each of the 4
23    tiers as follows: Tier 1 Aggregate Funding equals 50% of
24    all New State Funds, Tier 2 Aggregate Funding equals 49%
25    of all New State Funds, Tier 3 Aggregate Funding equals
26    0.9% of all New State Funds, and Tier 4 Aggregate Funding

 

 

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1    equals 0.1% of all New State Funds. Each Organizational
2    Unit within Tier 1 or Tier 2 receives an allocation of New
3    State Funds equal to its tier Funding Gap, as defined in
4    the following sentence, multiplied by the tier's
5    Allocation Rate determined pursuant to paragraph (4) of
6    this subsection (g). For Tier 1, an Organizational Unit's
7    Funding Gap equals the tier's Target Ratio, as specified
8    in paragraph (5) of this subsection (g), multiplied by the
9    Organizational Unit's Adequacy Target, with the resulting
10    amount reduced by the Organizational Unit's Final
11    Resources. For Tier 2, an Organizational Unit's Funding
12    Gap equals the tier's Target Ratio, as described in
13    paragraph (5) of this subsection (g), multiplied by the
14    Organizational Unit's Adequacy Target, with the resulting
15    amount reduced by the Organizational Unit's Final
16    Resources and its Tier 1 funding allocation. To determine
17    the Organizational Unit's Funding Gap, the resulting
18    amount is then multiplied by a factor equal to one minus
19    the Organizational Unit's Local Capacity Target
20    percentage. Each Organizational Unit within Tier 3 or Tier
21    4 receives an allocation of New State Funds equal to the
22    product of its Adequacy Target and the tier's Allocation
23    Rate, as specified in paragraph (4) of this subsection
24    (g).
25        (2) To ensure equitable distribution of dollars for
26    all Tier 2 Organizational Units, no Tier 2 Organizational

 

 

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1    Unit shall receive fewer dollars per ASE than any Tier 3
2    Organizational Unit. Each Tier 2 and Tier 3 Organizational
3    Unit shall have its funding allocation divided by its ASE.
4    Any Tier 2 Organizational Unit with a funding allocation
5    per ASE below the greatest Tier 3 allocation per ASE shall
6    get a funding allocation equal to the greatest Tier 3
7    funding allocation per ASE multiplied by the
8    Organizational Unit's ASE. Each Tier 2 Organizational
9    Unit's Tier 2 funding allocation shall be multiplied by
10    the percentage calculated by dividing the original Tier 2
11    Aggregate Funding by the sum of all Tier 2 Organizational
12    Units' Tier 2 funding allocation after adjusting
13    districts' funding below Tier 3 levels.
14        (3) Organizational Units are placed into one of 4
15    tiers as follows:
16            (A) Tier 1 consists of all Organizational Units,
17        except for Specially Funded Units, with a Percent of
18        Adequacy less than the Tier 1 Target Ratio. The Tier 1
19        Target Ratio is the ratio level that allows for Tier 1
20        Aggregate Funding to be distributed, with the Tier 1
21        Allocation Rate determined pursuant to paragraph (4)
22        of this subsection (g).
23            (B) Tier 2 consists of all Tier 1 Units and all
24        other Organizational Units, except for Specially
25        Funded Units, with a Percent of Adequacy of less than
26        0.90.

 

 

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

 

 

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1        with the Tier 1 Allocation Rate.
2            (B) The Tier 2 Target Ratio is 0.90.
3            (C) The Tier 3 Target Ratio is 1.0.
4        (6) If, at any point, the Tier 1 Target Ratio is
5    greater than 90%, then than all Tier 1 funding shall be
6    allocated to Tier 2 and no Tier 1 Organizational Unit's
7    funding may be identified.
8        (7) In the event that all Tier 2 Organizational Units
9    receive funding at the Tier 2 Target Ratio level, any
10    remaining New State Funds shall be allocated to Tier 3 and
11    Tier 4 Organizational Units.
12        (8) If any Specially Funded Units, excluding Glenwood
13    Academy, recognized by the State Board do not qualify for
14    direct funding following the implementation of Public Act
15    100-465 from any of the funding sources included within
16    the definition of Base Funding Minimum, the unqualified
17    portion of the Base Funding Minimum shall be transferred
18    to one or more appropriate Organizational Units as
19    determined by the State Superintendent based on the prior
20    year ASE of the Organizational Units.
21        (8.5) If a school district withdraws from a special
22    education cooperative, the portion of the Base Funding
23    Minimum that is attributable to the school district may be
24    redistributed to the school district upon withdrawal. The
25    school district and the cooperative must include the
26    amount of the Base Funding Minimum that is to be

 

 

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1    reapportioned in their withdrawal agreement and notify the
2    State Board of the change with a copy of the agreement upon
3    withdrawal.
4        (9) The Minimum Funding Level is intended to establish
5    a target for State funding that will keep pace with
6    inflation and continue to advance equity through the
7    Evidence-Based Funding formula. The target for State
8    funding of New Property Tax Relief Pool Funds is
9    $50,000,000 for State fiscal year 2019 and subsequent
10    State fiscal years. The Minimum Funding Level is equal to
11    $350,000,000. In addition to any New State Funds, no more
12    than $50,000,000 New Property Tax Relief Pool Funds may be
13    counted toward the Minimum Funding Level. If the sum of
14    New State Funds and applicable New Property Tax Relief
15    Pool Funds are less than the Minimum Funding Level, than
16    funding for tiers shall be reduced in the following
17    manner:
18            (A) First, Tier 4 funding shall be reduced by an
19        amount equal to the difference between the Minimum
20        Funding Level and New State Funds until such time as
21        Tier 4 funding is exhausted.
22            (B) Next, Tier 3 funding shall be reduced by an
23        amount equal to the difference between the Minimum
24        Funding Level and New State Funds and the reduction in
25        Tier 4 funding until such time as Tier 3 funding is
26        exhausted.

 

 

HB2787- 90 -LRB102 15092 NHT 20447 b

1            (C) Next, Tier 2 funding shall be reduced by an
2        amount equal to the difference between the Minimum
3        Funding Level and New State Funds and the reduction in
4        Tier 4 and Tier 3.
5            (D) Finally, Tier 1 funding shall be reduced by an
6        amount equal to the difference between the Minimum
7        Funding level and New State Funds and the reduction in
8        Tier 2, 3, and 4 funding. In addition, the Allocation
9        Rate for Tier 1 shall be reduced to a percentage equal
10        to the Tier 1 Allocation Rate set by paragraph (4) of
11        this subsection (g), multiplied by the result of New
12        State Funds divided by the Minimum Funding Level.
13        (9.5) For State fiscal year 2019 and subsequent State
14    fiscal years, if New State Funds exceed $300,000,000, then
15    any amount in excess of $300,000,000 shall be dedicated
16    for purposes of Section 2-3.170 of this Code up to a
17    maximum of $50,000,000.
18        (10) In the event of a decrease in the amount of the
19    appropriation for this Section in any fiscal year after
20    implementation of this Section, the Organizational Units
21    receiving Tier 1 and Tier 2 funding, as determined under
22    paragraph (3) of this subsection (g), shall be held
23    harmless by establishing a Base Funding Guarantee equal to
24    the per pupil kindergarten through grade 12 funding
25    received in accordance with this Section in the prior
26    fiscal year. Reductions shall be made to the Base Funding

 

 

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1    Minimum of Organizational Units in Tier 3 and Tier 4 on a
2    per pupil basis equivalent to the total number of the ASE
3    in Tier 3-funded and Tier 4-funded Organizational Units
4    divided by the total reduction in State funding. The Base
5    Funding Minimum as reduced shall continue to be applied to
6    Tier 3 and Tier 4 Organizational Units and adjusted by the
7    relative formula when increases in appropriations for this
8    Section resume. In no event may State funding reductions
9    to Organizational Units in Tier 3 or Tier 4 exceed an
10    amount that would be less than the Base Funding Minimum
11    established in the first year of implementation of this
12    Section. If additional reductions are required, all school
13    districts shall receive a reduction by a per pupil amount
14    equal to the aggregate additional appropriation reduction
15    divided by the total ASE of all Organizational Units.
16        (11) The State Superintendent shall make minor
17    adjustments to the distribution formula set forth in this
18    subsection (g) to account for the rounding of percentages
19    to the nearest tenth of a percentage and dollar amounts to
20    the nearest whole dollar.
21    (h) State Superintendent administration of funding and
22district submission requirements.
23        (1) The State Superintendent shall, in accordance with
24    appropriations made by the General Assembly, meet the
25    funding obligations created under this Section.
26        (2) The State Superintendent shall calculate the

 

 

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1    Adequacy Target for each Organizational Unit and Net State
2    Contribution Target for each Organizational Unit under
3    this Section. No Evidence-Based Funding shall be
4    distributed within an Organizational Unit without the
5    approval of the unit's school board.
6        (3) Annually, the State Superintendent shall calculate
7    and report to each Organizational Unit the unit's
8    aggregate financial adequacy amount, which shall be the
9    sum of the Adequacy Target for each Organizational Unit.
10    The State Superintendent shall calculate and report
11    separately for each Organizational Unit the unit's total
12    State funds allocated for its students with disabilities.
13    The State Superintendent shall calculate and report
14    separately for each Organizational Unit the amount of
15    funding and applicable FTE calculated for each Essential
16    Element of the unit's Adequacy Target.
17        (4) Annually, the State Superintendent shall calculate
18    and report to each Organizational Unit the amount the unit
19    must expend on special education and bilingual education
20    and computer technology and equipment for Organizational
21    Units assigned to Tier 1 or Tier 2 that received an
22    additional $285.50 per student computer technology and
23    equipment investment grant to their Adequacy Target
24    pursuant to the unit's Base Funding Minimum, Special
25    Education Allocation, Bilingual Education Allocation, and
26    computer technology and equipment investment allocation.

 

 

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1        (5) Moneys distributed under this Section shall be
2    calculated on a school year basis, but paid on a fiscal
3    year basis, with payments beginning in August and
4    extending through June. Unless otherwise provided, the
5    moneys appropriated for each fiscal year shall be
6    distributed in 22 equal payments at least 2 times monthly
7    to each Organizational Unit. If moneys appropriated for
8    any fiscal year are distributed other than monthly, the
9    distribution shall be on the same basis for each
10    Organizational Unit.
11        (6) Any school district that fails, for any given
12    school year, to maintain school as required by law or to
13    maintain a recognized school is not eligible to receive
14    Evidence-Based Funding. In case of non-recognition of one
15    or more attendance centers in a school district otherwise
16    operating recognized schools, the claim of the district
17    shall be reduced in the proportion that the enrollment in
18    the attendance center or centers bears to the enrollment
19    of the school district. "Recognized school" means any
20    public school that meets the standards for recognition by
21    the State Board. A school district or attendance center
22    not having recognition status at the end of a school term
23    is entitled to receive State aid payments due upon a legal
24    claim that was filed while it was recognized.
25        (7) School district claims filed under this Section
26    are subject to Sections 18-9 and 18-12 of this Code,

 

 

HB2787- 94 -LRB102 15092 NHT 20447 b

1    except as otherwise provided in this Section.
2        (8) Each fiscal year, the State Superintendent shall
3    calculate for each Organizational Unit an amount of its
4    Base Funding Minimum and Evidence-Based Funding that shall
5    be deemed attributable to the provision of special
6    educational facilities and services, as defined in Section
7    14-1.08 of this Code, in a manner that ensures compliance
8    with maintenance of State financial support requirements
9    under the federal Individuals with Disabilities Education
10    Act. An Organizational Unit must use such funds only for
11    the provision of special educational facilities and
12    services, as defined in Section 14-1.08 of this Code, and
13    must comply with any expenditure verification procedures
14    adopted by the State Board.
15        (9) All Organizational Units in this State must submit
16    annual spending plans by the end of September of each year
17    to the State Board as part of the annual budget process,
18    which shall describe how each Organizational Unit will
19    utilize the Base Funding Minimum and Evidence-Based
20    Funding it receives from this State under this Section
21    with specific identification of the intended utilization
22    of Low-Income, English learner, and special education
23    resources. Additionally, the annual spending plans of each
24    Organizational Unit shall describe how the Organizational
25    Unit expects to achieve student growth and how the
26    Organizational Unit will achieve State education goals, as

 

 

HB2787- 95 -LRB102 15092 NHT 20447 b

1    defined by the State Board. The State Superintendent may,
2    from time to time, identify additional requisites for
3    Organizational Units to satisfy when compiling the annual
4    spending plans required under this subsection (h). The
5    format and scope of annual spending plans shall be
6    developed by the State Superintendent and the State Board
7    of Education. School districts that serve students under
8    Article 14C of this Code shall continue to submit
9    information as required under Section 14C-12 of this Code.
10        (10) No later than January 1, 2018, the State
11    Superintendent shall develop a 5-year strategic plan for
12    all Organizational Units to help in planning for adequacy
13    funding under this Section. The State Superintendent shall
14    submit the plan to the Governor and the General Assembly,
15    as provided in Section 3.1 of the General Assembly
16    Organization Act. The plan shall include recommendations
17    for:
18            (A) a framework for collaborative, professional,
19        innovative, and 21st century learning environments
20        using the Evidence-Based Funding model;
21            (B) ways to prepare and support this State's
22        educators for successful instructional careers;
23            (C) application and enhancement of the current
24        financial accountability measures, the approved State
25        plan to comply with the federal Every Student Succeeds
26        Act, and the Illinois Balanced Accountability Measures

 

 

HB2787- 96 -LRB102 15092 NHT 20447 b

1        in relation to student growth and elements of the
2        Evidence-Based Funding model; and
3            (D) implementation of an effective school adequacy
4        funding system based on projected and recommended
5        funding levels from the General Assembly.
6        (11) On an annual basis, the State Superintendent must
7    recalibrate all of the following per pupil elements of the
8    Adequacy Target and applied to the formulas, based on the
9    study of average expenses and as reported in the most
10    recent annual financial report:
11            (A) Gifted under subparagraph (M) of paragraph (2)
12        of subsection (b).
13            (B) Instructional materials under subparagraph (O)
14        of paragraph (2) of subsection (b).
15            (C) Assessment under subparagraph (P) of paragraph
16        (2) of subsection (b).
17            (D) Student activities under subparagraph (R) of
18        paragraph (2) of subsection (b).
19            (E) Maintenance and operations under subparagraph
20        (S) of paragraph (2) of subsection (b).
21            (F) Central office under subparagraph (T) of
22        paragraph (2) of subsection (b).
23    (i) Professional Review Panel.
24        (1) A Professional Review Panel is created to study
25    and review topics related to the implementation and effect
26    of Evidence-Based Funding, as assigned by a joint

 

 

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1    resolution or Public Act of the General Assembly or a
2    motion passed by the State Board of Education. The Panel
3    must provide recommendations to and serve the Governor,
4    the General Assembly, and the State Board. The State
5    Superintendent or his or her designee must serve as a
6    voting member and chairperson of the Panel. The State
7    Superintendent must appoint a vice chairperson from the
8    membership of the Panel. The Panel must advance
9    recommendations based on a three-fifths majority vote of
10    Panel members present and voting. A minority opinion may
11    also accompany any recommendation of the Panel. The Panel
12    shall be appointed by the State Superintendent, except as
13    otherwise provided in paragraph (2) of this subsection (i)
14    and include the following members:
15            (A) Two appointees that represent district
16        superintendents, recommended by a statewide
17        organization that represents district superintendents.
18            (B) Two appointees that represent school boards,
19        recommended by a statewide organization that
20        represents school boards.
21            (C) Two appointees from districts that represent
22        school business officials, recommended by a statewide
23        organization that represents school business
24        officials.
25            (D) Two appointees that represent school
26        principals, recommended by a statewide organization

 

 

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1        that represents school principals.
2            (E) Two appointees that represent teachers,
3        recommended by a statewide organization that
4        represents teachers.
5            (F) Two appointees that represent teachers,
6        recommended by another statewide organization that
7        represents teachers.
8            (G) Two appointees that represent regional
9        superintendents of schools, recommended by
10        organizations that represent regional superintendents.
11            (H) Two independent experts selected solely by the
12        State Superintendent.
13            (I) Two independent experts recommended by public
14        universities in this State.
15            (J) One member recommended by a statewide
16        organization that represents parents.
17            (K) Two representatives recommended by collective
18        impact organizations that represent major metropolitan
19        areas or geographic areas in Illinois.
20            (L) One member from a statewide organization
21        focused on research-based education policy to support
22        a school system that prepares all students for
23        college, a career, and democratic citizenship.
24            (M) One representative from a school district
25        organized under Article 34 of this Code.
26        The State Superintendent shall ensure that the

 

 

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1    membership of the Panel includes representatives from
2    school districts and communities reflecting the
3    geographic, socio-economic, racial, and ethnic diversity
4    of this State. The State Superintendent shall additionally
5    ensure that the membership of the Panel includes
6    representatives with expertise in bilingual education and
7    special education. Staff from the State Board shall staff
8    the Panel.
9        (2) In addition to those Panel members appointed by
10    the State Superintendent, 4 members of the General
11    Assembly shall be appointed as follows: one member of the
12    House of Representatives appointed by the Speaker of the
13    House of Representatives, one member of the Senate
14    appointed by the President of the Senate, one member of
15    the House of Representatives appointed by the Minority
16    Leader of the House of Representatives, and one member of
17    the Senate appointed by the Minority Leader of the Senate.
18    There shall be one additional member appointed by the
19    Governor. All members appointed by legislative leaders or
20    the Governor shall be non-voting, ex officio members.
21        (3) The Panel must study topics at the direction of
22    the General Assembly or State Board of Education, as
23    provided under paragraph (1). The Panel may also study the
24    following topics at the direction of the chairperson:
25            (A) The format and scope of annual spending plans
26        referenced in paragraph (9) of subsection (h) of this

 

 

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1        Section.
2            (B) The Comparable Wage Index under this Section.
3            (C) Maintenance and operations, including capital
4        maintenance and construction costs.
5            (D) "At-risk student" definition.
6            (E) Benefits.
7            (F) Technology.
8            (G) Local Capacity Target.
9            (H) Funding for Alternative Schools, Laboratory
10        Schools, safe schools, and alternative learning
11        opportunities programs.
12            (I) Funding for college and career acceleration
13        strategies.
14            (J) Special education investments.
15            (K) Early childhood investments, in collaboration
16        with the Illinois Early Learning Council.
17        (4) (Blank).
18        (5) Within 5 years after the implementation of this
19    Section, and every 5 years thereafter, the Panel shall
20    complete an evaluative study of the entire Evidence-Based
21    Funding model, including an assessment of whether or not
22    the formula is achieving State goals. The Panel shall
23    report to the State Board, the General Assembly, and the
24    Governor on the findings of the study.
25        (6) (Blank).
26    (j) References. Beginning July 1, 2017, references in

 

 

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1other laws to general State aid funds or calculations under
2Section 18-8.05 of this Code (now repealed) shall be deemed to
3be references to evidence-based model formula funds or
4calculations under this Section.
5(Source: P.A. 100-465, eff. 8-31-17; 100-578, eff. 1-31-18;
6100-582, eff. 3-23-18; 101-10, eff. 6-5-19; 101-17, eff.
76-14-19; 101-643, eff. 6-18-20; revised 8-21-20.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.