102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1722

 

Introduced 2/26/2021, by Sen. Emil Jones, III

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/11E-135
105 ILCS 5/11E-140 new

    Amends the School Code. Creates the School District Efficiency Commission. Provides for the membership and support of the Commission. Requires the Commission to make recommendations to the Governor and the General Assembly on the number of school districts in this State, the optimal amount of enrollment for a school district, and where reorganization and realignment of school districts would be beneficial in this State; specifies the topics on which the recommendations must focus. Provides that, on or before May 1, 2023, the Commission must vote on its recommendations and submit a report to the Governor and the General Assembly. Provides that if the Commission adopts the report recommendations by an affirmative vote of at least 11 of its members, then the Commission's recommendations for reorganization of school districts into unit school districts must be placed on the ballots of the designated school districts in the next general election in the same manner as petitions approved by a regional superintendent of schools, except without financial incentives. Provides that the Commission is dissolved the day after the report is filed with the Governor and the General Assembly. Repeals the provision on February 1, 2024. Makes a conforming change in the Conversion and Formation of School Districts Article. Effective immediately.


LRB102 10193 CMG 15516 b

FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB1722LRB102 10193 CMG 15516 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the Classrooms
5First Act.
 
6    Section 5. The School Code is amended by changing Section
711E-135 and by adding Section 11E-140 as follows:
 
8    (105 ILCS 5/11E-135)
9    Sec. 11E-135. Incentives. Except as provided under Section
1011E-140, for For districts reorganizing under this Article and
11for a district or districts that annex all of the territory of
12one or more entire other school districts in accordance with
13Article 7 of this Code, the following payments shall be made
14from appropriations made for these purposes:
15    (a)(1) For a combined school district, as defined in
16Section 11E-20 of this Code, or for a unit district, as defined
17in Section 11E-25 of this Code, for its first year of
18existence, the general State aid and supplemental general
19State aid calculated under Section 18-8.05 of this Code or the
20evidence-based funding calculated under Section 18-8.15 of
21this Code, as applicable, shall be computed for the new
22district and for the previously existing districts for which

 

 

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1property is totally included within the new district. If the
2computation on the basis of the previously existing districts
3is greater, a supplementary payment equal to the difference
4shall be made for the first 4 years of existence of the new
5district.
6    (2) For a school district that annexes all of the
7territory of one or more entire other school districts as
8defined in Article 7 of this Code, for the first year during
9which the change of boundaries attributable to the annexation
10becomes effective for all purposes, as determined under
11Section 7-9 of this Code, the general State aid and
12supplemental general State aid calculated under Section
1318-8.05 of this Code or the evidence-based funding calculated
14under Section 18-8.15 of this Code, as applicable, shall be
15computed for the annexing district as constituted after the
16annexation and for the annexing and each annexed district as
17constituted prior to the annexation; and if the computation on
18the basis of the annexing and annexed districts as constituted
19prior to the annexation is greater, then a supplementary
20payment equal to the difference shall be made for the first 4
21years of existence of the annexing school district as
22constituted upon the annexation.
23    (3) For 2 or more school districts that annex all of the
24territory of one or more entire other school districts, as
25defined in Article 7 of this Code, for the first year during
26which the change of boundaries attributable to the annexation

 

 

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1becomes effective for all purposes, as determined under
2Section 7-9 of this Code, the general State aid and
3supplemental general State aid calculated under Section
418-8.05 of this Code or the evidence-based funding calculated
5under Section 18-8.15 of this Code, as applicable, shall be
6computed for each annexing district as constituted after the
7annexation and for each annexing and annexed district as
8constituted prior to the annexation; and if the aggregate of
9the general State aid and supplemental general State aid or
10evidence-based funding, as applicable, as so computed for the
11annexing districts as constituted after the annexation is less
12than the aggregate of the general State aid and supplemental
13general State aid or evidence-based funding, as applicable, as
14so computed for the annexing and annexed districts, as
15constituted prior to the annexation, then a supplementary
16payment equal to the difference shall be made and allocated
17between or among the annexing districts, as constituted upon
18the annexation, for the first 4 years of their existence. The
19total difference payment shall be allocated between or among
20the annexing districts in the same ratio as the pupil
21enrollment from that portion of the annexed district or
22districts that is annexed to each annexing district bears to
23the total pupil enrollment from the entire annexed district or
24districts, as such pupil enrollment is determined for the
25school year last ending prior to the date when the change of
26boundaries attributable to the annexation becomes effective

 

 

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1for all purposes. The amount of the total difference payment
2and the amount thereof to be allocated to the annexing
3districts shall be computed by the State Board of Education on
4the basis of pupil enrollment and other data that shall be
5certified to the State Board of Education, on forms that it
6shall provide for that purpose, by the regional superintendent
7of schools for each educational service region in which the
8annexing and annexed districts are located.
9    (4) For a school district conversion, as defined in
10Section 11E-15 of this Code, or a multi-unit conversion, as
11defined in subsection (b) of Section 11E-30 of this Code, if in
12their first year of existence the newly created elementary
13districts and the newly created high school district, from a
14school district conversion, or the newly created elementary
15district or districts and newly created combined high school -
16unit district, from a multi-unit conversion, qualify for less
17general State aid under Section 18-8.05 of this Code or
18evidence-based funding under Section 18-8.15 of this Code than
19would have been payable under Section 18-8.05 or 18-8.15, as
20applicable, for that same year to the previously existing
21districts, then a supplementary payment equal to that
22difference shall be made for the first 4 years of existence of
23the newly created districts. The aggregate amount of each
24supplementary payment shall be allocated among the newly
25created districts in the proportion that the deemed pupil
26enrollment in each district during its first year of existence

 

 

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1bears to the actual aggregate pupil enrollment in all of the
2districts during their first year of existence. For purposes
3of each allocation:
4        (A) the deemed pupil enrollment of the newly created
5    high school district from a school district conversion
6    shall be an amount equal to its actual pupil enrollment
7    for its first year of existence multiplied by 1.25;
8        (B) the deemed pupil enrollment of each newly created
9    elementary district from a school district conversion
10    shall be an amount equal to its actual pupil enrollment
11    for its first year of existence reduced by an amount equal
12    to the product obtained when the amount by which the newly
13    created high school district's deemed pupil enrollment
14    exceeds its actual pupil enrollment for its first year of
15    existence is multiplied by a fraction, the numerator of
16    which is the actual pupil enrollment of the newly created
17    elementary district for its first year of existence and
18    the denominator of which is the actual aggregate pupil
19    enrollment of all of the newly created elementary
20    districts for their first year of existence;
21        (C) the deemed high school pupil enrollment of the
22    newly created combined high school - unit district from a
23    multi-unit conversion shall be an amount equal to its
24    actual grades 9 through 12 pupil enrollment for its first
25    year of existence multiplied by 1.25; and
26        (D) the deemed elementary pupil enrollment of each

 

 

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1    newly created district from a multi-unit conversion shall
2    be an amount equal to each district's actual grade K
3    through 8 pupil enrollment for its first year of
4    existence, reduced by an amount equal to the product
5    obtained when the amount by which the newly created
6    combined high school - unit district's deemed high school
7    pupil enrollment exceeds its actual grade 9 through 12
8    pupil enrollment for its first year of existence is
9    multiplied by a fraction, the numerator of which is the
10    actual grade K through 8 pupil enrollment of each newly
11    created district for its first year of existence and the
12    denominator of which is the actual aggregate grade K
13    through 8 pupil enrollment of all such newly created
14    districts for their first year of existence.
15    The aggregate amount of each supplementary payment under
16this subdivision (4) and the amount thereof to be allocated to
17the newly created districts shall be computed by the State
18Board of Education on the basis of pupil enrollment and other
19data, which shall be certified to the State Board of
20Education, on forms that it shall provide for that purpose, by
21the regional superintendent of schools for each educational
22service region in which the newly created districts are
23located.
24    (5) For a partial elementary unit district, as defined in
25subsection (a) or (c) of Section 11E-30 of this Code, if, in
26the first year of existence, the newly created partial

 

 

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1elementary unit district qualifies for less general State aid
2and supplemental general State aid under Section 18-8.05 of
3this Code or less evidence-based funding under Section 18-8.15
4of this Code, as applicable, than would have been payable
5under those Sections for that same year to the previously
6existing districts that formed the partial elementary unit
7district, then a supplementary payment equal to that
8difference shall be made to the partial elementary unit
9district for the first 4 years of existence of that newly
10created district.
11    (6) For an elementary opt-in, as described in subsection
12(d) of Section 11E-30 of this Code, the general State aid or
13evidence-based funding difference shall be computed in
14accordance with paragraph (5) of this subsection (a) as if the
15elementary opt-in was included in an optional elementary unit
16district at the optional elementary unit district's original
17effective date. If the calculation in this paragraph (6) is
18less than that calculated in paragraph (5) of this subsection
19(a) at the optional elementary unit district's original
20effective date, then no adjustments may be made. If the
21calculation in this paragraph (6) is more than that calculated
22in paragraph (5) of this subsection (a) at the optional
23elementary unit district's original effective date, then the
24excess must be paid as follows:
25        (A) If the effective date for the elementary opt-in is
26    one year after the effective date for the optional

 

 

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1    elementary unit district, 100% of the calculated excess
2    shall be paid to the optional elementary unit district in
3    each of the first 4 years after the effective date of the
4    elementary opt-in.
5        (B) If the effective date for the elementary opt-in is
6    2 years after the effective date for the optional
7    elementary unit district, 75% of the calculated excess
8    shall be paid to the optional elementary unit district in
9    each of the first 4 years after the effective date of the
10    elementary opt-in.
11        (C) If the effective date for the elementary opt-in is
12    3 years after the effective date for the optional
13    elementary unit district, 50% of the calculated excess
14    shall be paid to the optional elementary unit district in
15    each of the first 4 years after the effective date of the
16    elementary opt-in.
17        (D) If the effective date for the elementary opt-in is
18    4 years after the effective date for the optional
19    elementary unit district, 25% of the calculated excess
20    shall be paid to the optional elementary unit district in
21    each of the first 4 years after the effective date of the
22    elementary opt-in.
23        (E) If the effective date for the elementary opt-in is
24    5 years after the effective date for the optional
25    elementary unit district, the optional elementary unit
26    district is not eligible for any additional incentives due

 

 

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1    to the elementary opt-in.
2    (6.5) For a school district that annexes territory
3detached from another school district whereby the enrollment
4of the annexing district increases by 90% or more as a result
5of the annexation, for the first year during which the change
6of boundaries attributable to the annexation becomes effective
7for all purposes as determined under Section 7-9 of this Code,
8the general State aid and supplemental general State aid or
9evidence-based funding, as applicable, calculated under this
10Section shall be computed for the district gaining territory
11and the district losing territory as constituted after the
12annexation and for the same districts as constituted prior to
13the annexation; and if the aggregate of the general State aid
14and supplemental general State aid or evidence-based funding,
15as applicable, as so computed for the district gaining
16territory and the district losing territory as constituted
17after the annexation is less than the aggregate of the general
18State aid and supplemental general State aid or evidence-based
19funding, as applicable, as so computed for the district
20gaining territory and the district losing territory as
21constituted prior to the annexation, then a supplementary
22payment shall be made to the annexing district for the first 4
23years of existence after the annexation, equal to the
24difference multiplied by the ratio of student enrollment in
25the territory detached to the total student enrollment in the
26district losing territory for the year prior to the effective

 

 

SB1722- 10 -LRB102 10193 CMG 15516 b

1date of the annexation. The amount of the total difference and
2the proportion paid to the annexing district shall be computed
3by the State Board of Education on the basis of pupil
4enrollment and other data that must be submitted to the State
5Board of Education in accordance with Section 7-14A of this
6Code. The changes to this Section made by Public Act 95-707 are
7intended to be retroactive and applicable to any annexation
8taking effect on or after July 1, 2004. For annexations that
9are eligible for payments under this paragraph (6.5) and that
10are effective on or after July 1, 2004, but before January 11,
112008 (the effective date of Public Act 95-707), the first
12required yearly payment under this paragraph (6.5) shall be
13paid in the fiscal year of January 11, 2008 (the effective date
14of Public Act 95-707). Subsequent required yearly payments
15shall be paid in subsequent fiscal years until the payment
16obligation under this paragraph (6.5) is complete.
17    (7) Claims for financial assistance under this subsection
18(a) may not be recomputed except as expressly provided under
19Section 18-8.05 or 18-8.15 of this Code.
20    (8) Any supplementary payment made under this subsection
21(a) must be treated as separate from all other payments made
22pursuant to Section 18-8.05 or 18-8.15 of this Code.
23    (b)(1) After the formation of a combined school district,
24as defined in Section 11E-20 of this Code, or a unit district,
25as defined in Section 11E-25 of this Code, a computation shall
26be made to determine the difference between the salaries

 

 

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1effective in each of the previously existing districts on June
230, prior to the creation of the new district. For the first 4
3years after the formation of the new district, a supplementary
4State aid reimbursement shall be paid to the new district
5equal to the difference between the sum of the salaries earned
6by each of the certificated members of the new district, while
7employed in one of the previously existing districts during
8the year immediately preceding the formation of the new
9district, and the sum of the salaries those certificated
10members would have been paid during the year immediately prior
11to the formation of the new district if placed on the salary
12schedule of the previously existing district with the highest
13salary schedule.
14    (2) After the territory of one or more school districts is
15annexed by one or more other school districts as defined in
16Article 7 of this Code, a computation shall be made to
17determine the difference between the salaries effective in
18each annexed district and in the annexing district or
19districts as they were each constituted on June 30 preceding
20the date when the change of boundaries attributable to the
21annexation became effective for all purposes, as determined
22under Section 7-9 of this Code. For the first 4 years after the
23annexation, a supplementary State aid reimbursement shall be
24paid to each annexing district as constituted after the
25annexation equal to the difference between the sum of the
26salaries earned by each of the certificated members of the

 

 

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1annexing district as constituted after the annexation, while
2employed in an annexed or annexing district during the year
3immediately preceding the annexation, and the sum of the
4salaries those certificated members would have been paid
5during the immediately preceding year if placed on the salary
6schedule of whichever of the annexing or annexed districts had
7the highest salary schedule during the immediately preceding
8year.
9    (3) For each new high school district formed under a
10school district conversion, as defined in Section 11E-15 of
11this Code, the State shall make a supplementary payment for 4
12years equal to the difference between the sum of the salaries
13earned by each certified member of the new high school
14district, while employed in one of the previously existing
15districts, and the sum of the salaries those certified members
16would have been paid if placed on the salary schedule of the
17previously existing district with the highest salary schedule.
18    (4) For each newly created partial elementary unit
19district, the State shall make a supplementary payment for 4
20years equal to the difference between the sum of the salaries
21earned by each certified member of the newly created partial
22elementary unit district, while employed in one of the
23previously existing districts that formed the partial
24elementary unit district, and the sum of the salaries those
25certified members would have been paid if placed on the salary
26schedule of the previously existing district with the highest

 

 

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1salary schedule. The salary schedules used in the calculation
2shall be those in effect in the previously existing districts
3for the school year prior to the creation of the new partial
4elementary unit district.
5    (5) For an elementary district opt-in, as described in
6subsection (d) of Section 11E-30 of this Code, the salary
7difference incentive shall be computed in accordance with
8paragraph (4) of this subsection (b) as if the opted-in
9elementary district was included in the optional elementary
10unit district at the optional elementary unit district's
11original effective date. If the calculation in this paragraph
12(5) is less than that calculated in paragraph (4) of this
13subsection (b) at the optional elementary unit district's
14original effective date, then no adjustments may be made. If
15the calculation in this paragraph (5) is more than that
16calculated in paragraph (4) of this subsection (b) at the
17optional elementary unit district's original effective date,
18then the excess must be paid as follows:
19        (A) If the effective date for the elementary opt-in is
20    one year after the effective date for the optional
21    elementary unit district, 100% of the calculated excess
22    shall be paid to the optional elementary unit district in
23    each of the first 4 years after the effective date of the
24    elementary opt-in.
25        (B) If the effective date for the elementary opt-in is
26    2 years after the effective date for the optional

 

 

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1    elementary unit district, 75% of the calculated excess
2    shall be paid to the optional elementary unit district in
3    each of the first 4 years after the effective date of the
4    elementary opt-in.
5        (C) If the effective date for the elementary opt-in is
6    3 years after the effective date for the optional
7    elementary unit district, 50% of the calculated excess
8    shall be paid to the optional elementary unit district in
9    each of the first 4 years after the effective date of the
10    elementary opt-in.
11        (D) If the effective date for the elementary opt-in is
12    4 years after the effective date for the partial
13    elementary unit district, 25% of the calculated excess
14    shall be paid to the optional elementary unit district in
15    each of the first 4 years after the effective date of the
16    elementary opt-in.
17        (E) If the effective date for the elementary opt-in is
18    5 years after the effective date for the optional
19    elementary unit district, the optional elementary unit
20    district is not eligible for any additional incentives due
21    to the elementary opt-in.
22    (5.5) After the formation of a cooperative high school by
232 or more school districts under Section 10-22.22c of this
24Code, a computation shall be made to determine the difference
25between the salaries effective in each of the previously
26existing high schools on June 30 prior to the formation of the

 

 

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1cooperative high school. For the first 4 years after the
2formation of the cooperative high school, a supplementary
3State aid reimbursement shall be paid to the cooperative high
4school equal to the difference between the sum of the salaries
5earned by each of the certificated members of the cooperative
6high school while employed in one of the previously existing
7high schools during the year immediately preceding the
8formation of the cooperative high school and the sum of the
9salaries those certificated members would have been paid
10during the year immediately prior to the formation of the
11cooperative high school if placed on the salary schedule of
12the previously existing high school with the highest salary
13schedule.
14    (5.10) After the annexation of territory detached from
15another school district whereby the enrollment of the annexing
16district increases by 90% or more as a result of the
17annexation, a computation shall be made to determine the
18difference between the salaries effective in the district
19gaining territory and the district losing territory as they
20each were constituted on June 30 preceding the date when the
21change of boundaries attributable to the annexation became
22effective for all purposes as determined under Section 7-9 of
23this Code. For the first 4 years after the annexation, a
24supplementary State aid reimbursement shall be paid to the
25annexing district equal to the difference between the sum of
26the salaries earned by each of the certificated members of the

 

 

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1annexing district as constituted after the annexation while
2employed in the district gaining territory or the district
3losing territory during the year immediately preceding the
4annexation and the sum of the salaries those certificated
5members would have been paid during such immediately preceding
6year if placed on the salary schedule of whichever of the
7district gaining territory or district losing territory had
8the highest salary schedule during the immediately preceding
9year. To be eligible for supplementary State aid reimbursement
10under this Section, the intergovernmental agreement to be
11submitted pursuant to Section 7-14A of this Code must show
12that staff members were transferred from the control of the
13district losing territory to the control of the district
14gaining territory in the annexation. The changes to this
15Section made by Public Act 95-707 are intended to be
16retroactive and applicable to any annexation taking effect on
17or after July 1, 2004. For annexations that are eligible for
18payments under this paragraph (5.10) and that are effective on
19or after July 1, 2004, but before January 11, 2008 (the
20effective date of Public Act 95-707), the first required
21yearly payment under this paragraph (5.10) shall be paid in
22the fiscal year of January 11, 2008 (the effective date of
23Public Act 95-707). Subsequent required yearly payments shall
24be paid in subsequent fiscal years until the payment
25obligation under this paragraph (5.10) is complete.
26    (5.15) After the deactivation of a school facility in

 

 

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1accordance with Section 10-22.22b of this Code, a computation
2shall be made to determine the difference between the salaries
3effective in the sending school district and each receiving
4school district on June 30 prior to the deactivation of the
5school facility. For the lesser of the first 4 years after the
6deactivation of the school facility or the length of the
7deactivation agreement, including any renewals of the original
8deactivation agreement, a supplementary State aid
9reimbursement shall be paid to each receiving district equal
10to the difference between the sum of the salaries earned by
11each of the certificated members transferred to that receiving
12district as a result of the deactivation while employed in the
13sending district during the year immediately preceding the
14deactivation and the sum of the salaries those certificated
15members would have been paid during the year immediately
16preceding the deactivation if placed on the salary schedule of
17the sending or receiving district with the highest salary
18schedule.
19    (6) The supplementary State aid reimbursement under this
20subsection (b) shall be treated as separate from all other
21payments made pursuant to Section 18-8.05 of this Code. In the
22case of the formation of a new district or cooperative high
23school or a deactivation, reimbursement shall begin during the
24first year of operation of the new district or cooperative
25high school or the first year of the deactivation, and in the
26case of an annexation of the territory of one or more school

 

 

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1districts by one or more other school districts or the
2annexation of territory detached from a school district
3whereby the enrollment of the annexing district increases by
490% or more as a result of the annexation, reimbursement shall
5begin during the first year when the change in boundaries
6attributable to the annexation becomes effective for all
7purposes as determined pursuant to Section 7-9 of this Code,
8except that for an annexation of territory detached from a
9school district that is effective on or after July 1, 2004, but
10before January 11, 2008 (the effective date of Public Act
1195-707), whereby the enrollment of the annexing district
12increases by 90% or more as a result of the annexation,
13reimbursement shall begin during the fiscal year of January
1411, 2008 (the effective date of Public Act 95-707). Each year
15that the new, annexing, or receiving district or cooperative
16high school, as the case may be, is entitled to receive
17reimbursement, the number of eligible certified members who
18are employed on October 1 in the district or cooperative high
19school shall be certified to the State Board of Education on
20prescribed forms by October 15 and payment shall be made on or
21before November 15 of that year.
22    (c)(1) For the first year after the formation of a
23combined school district, as defined in Section 11E-20 of this
24Code or a unit district, as defined in Section 11E-25 of this
25Code, a computation shall be made totaling each previously
26existing district's audited fund balances in the educational

 

 

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1fund, working cash fund, operations and maintenance fund, and
2transportation fund for the year ending June 30 prior to the
3referendum for the creation of the new district. The new
4district shall be paid supplementary State aid equal to the
5sum of the differences between the deficit of the previously
6existing district with the smallest deficit and the deficits
7of each of the other previously existing districts.
8    (2) For the first year after the annexation of all of the
9territory of one or more entire school districts by another
10school district, as defined in Article 7 of this Code,
11computations shall be made, for the year ending June 30 prior
12to the date that the change of boundaries attributable to the
13annexation is allowed by the affirmative decision issued by
14the regional board of school trustees under Section 7-6 of
15this Code, notwithstanding any effort to seek administrative
16review of the decision, totaling the annexing district's and
17totaling each annexed district's audited fund balances in
18their respective educational, working cash, operations and
19maintenance, and transportation funds. The annexing district
20as constituted after the annexation shall be paid
21supplementary State aid equal to the sum of the differences
22between the deficit of whichever of the annexing or annexed
23districts as constituted prior to the annexation had the
24smallest deficit and the deficits of each of the other
25districts as constituted prior to the annexation.
26    (3) For the first year after the annexation of all of the

 

 

SB1722- 20 -LRB102 10193 CMG 15516 b

1territory of one or more entire school districts by 2 or more
2other school districts, as defined by Article 7 of this Code,
3computations shall be made, for the year ending June 30 prior
4to the date that the change of boundaries attributable to the
5annexation is allowed by the affirmative decision of the
6regional board of school trustees under Section 7-6 of this
7Code, notwithstanding any action for administrative review of
8the decision, totaling each annexing and annexed district's
9audited fund balances in their respective educational, working
10cash, operations and maintenance, and transportation funds.
11The annexing districts as constituted after the annexation
12shall be paid supplementary State aid, allocated as provided
13in this paragraph (3), in an aggregate amount equal to the sum
14of the differences between the deficit of whichever of the
15annexing or annexed districts as constituted prior to the
16annexation had the smallest deficit and the deficits of each
17of the other districts as constituted prior to the annexation.
18The aggregate amount of the supplementary State aid payable
19under this paragraph (3) shall be allocated between or among
20the annexing districts as follows:
21        (A) the regional superintendent of schools for each
22    educational service region in which an annexed district is
23    located prior to the annexation shall certify to the State
24    Board of Education, on forms that it shall provide for
25    that purpose, the value of all taxable property in each
26    annexed district, as last equalized or assessed by the

 

 

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1    Department of Revenue prior to the annexation, and the
2    equalized assessed value of each part of the annexed
3    district that was annexed to or included as a part of an
4    annexing district;
5        (B) using equalized assessed values as certified by
6    the regional superintendent of schools under clause (A) of
7    this paragraph (3), the combined audited fund balance
8    deficit of each annexed district as determined under this
9    Section shall be apportioned between or among the annexing
10    districts in the same ratio as the equalized assessed
11    value of that part of the annexed district that was
12    annexed to or included as a part of an annexing district
13    bears to the total equalized assessed value of the annexed
14    district; and
15        (C) the aggregate supplementary State aid payment
16    under this paragraph (3) shall be allocated between or
17    among, and shall be paid to, the annexing districts in the
18    same ratio as the sum of the combined audited fund balance
19    deficit of each annexing district as constituted prior to
20    the annexation, plus all combined audited fund balance
21    deficit amounts apportioned to that annexing district
22    under clause (B) of this subsection, bears to the
23    aggregate of the combined audited fund balance deficits of
24    all of the annexing and annexed districts as constituted
25    prior to the annexation.
26    (4) For the new elementary districts and new high school

 

 

SB1722- 22 -LRB102 10193 CMG 15516 b

1district formed through a school district conversion, as
2defined in Section 11E-15 of this Code or the new elementary
3district or districts and new combined high school - unit
4district formed through a multi-unit conversion, as defined in
5subsection (b) of Section 11E-30 of this Code, a computation
6shall be made totaling each previously existing district's
7audited fund balances in the educational fund, working cash
8fund, operations and maintenance fund, and transportation fund
9for the year ending June 30 prior to the referendum
10establishing the new districts. In the first year of the new
11districts, the State shall make a one-time supplementary
12payment equal to the sum of the differences between the
13deficit of the previously existing district with the smallest
14deficit and the deficits of each of the other previously
15existing districts. A district with a combined balance among
16the 4 funds that is positive shall be considered to have a
17deficit of zero. The supplementary payment shall be allocated
18among the newly formed high school and elementary districts in
19the manner provided by the petition for the formation of the
20districts, in the form in which the petition is approved by the
21regional superintendent of schools or State Superintendent of
22Education under Section 11E-50 of this Code.
23    (5) For each newly created partial elementary unit
24district, as defined in subsection (a) or (c) of Section
2511E-30 of this Code, a computation shall be made totaling the
26audited fund balances of each previously existing district

 

 

SB1722- 23 -LRB102 10193 CMG 15516 b

1that formed the new partial elementary unit district in the
2educational fund, working cash fund, operations and
3maintenance fund, and transportation fund for the year ending
4June 30 prior to the referendum for the formation of the
5partial elementary unit district. In the first year of the new
6partial elementary unit district, the State shall make a
7one-time supplementary payment to the new district equal to
8the sum of the differences between the deficit of the
9previously existing district with the smallest deficit and the
10deficits of each of the other previously existing districts. A
11district with a combined balance among the 4 funds that is
12positive shall be considered to have a deficit of zero.
13    (6) For an elementary opt-in as defined in subsection (d)
14of Section 11E-30 of this Code, the deficit fund balance
15incentive shall be computed in accordance with paragraph (5)
16of this subsection (c) as if the opted-in elementary was
17included in the optional elementary unit district at the
18optional elementary unit district's original effective date.
19If the calculation in this paragraph (6) is less than that
20calculated in paragraph (5) of this subsection (c) at the
21optional elementary unit district's original effective date,
22then no adjustments may be made. If the calculation in this
23paragraph (6) is more than that calculated in paragraph (5) of
24this subsection (c) at the optional elementary unit district's
25original effective date, then the excess must be paid as
26follows:

 

 

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1        (A) If the effective date for the elementary opt-in is
2    one year after the effective date for the optional
3    elementary unit district, 100% of the calculated excess
4    shall be paid to the optional elementary unit district in
5    the first year after the effective date of the elementary
6    opt-in.
7        (B) If the effective date for the elementary opt-in is
8    2 years after the effective date for the optional
9    elementary unit district, 75% of the calculated excess
10    shall be paid to the optional elementary unit district in
11    the first year after the effective date of the elementary
12    opt-in.
13        (C) If the effective date for the elementary opt-in is
14    3 years after the effective date for the optional
15    elementary unit district, 50% of the calculated excess
16    shall be paid to the optional elementary unit district in
17    the first year after the effective date of the elementary
18    opt-in.
19        (D) If the effective date for the elementary opt-in is
20    4 years after the effective date for the optional
21    elementary unit district, 25% of the calculated excess
22    shall be paid to the optional elementary unit district in
23    the first year after the effective date of the elementary
24    opt-in.
25        (E) If the effective date for the elementary opt-in is
26    5 years after the effective date for the optional

 

 

SB1722- 25 -LRB102 10193 CMG 15516 b

1    elementary unit district, the optional elementary unit
2    district is not eligible for any additional incentives due
3    to the elementary opt-in.
4    (6.5) For the first year after the annexation of territory
5detached from another school district whereby the enrollment
6of the annexing district increases by 90% or more as a result
7of the annexation, a computation shall be made totaling the
8audited fund balances of the district gaining territory and
9the audited fund balances of the district losing territory in
10the educational fund, working cash fund, operations and
11maintenance fund, and transportation fund for the year ending
12June 30 prior to the date that the change of boundaries
13attributable to the annexation is allowed by the affirmative
14decision of the regional board of school trustees under
15Section 7-6 of this Code, notwithstanding any action for
16administrative review of the decision. The annexing district
17as constituted after the annexation shall be paid
18supplementary State aid equal to the difference between the
19deficit of whichever district included in this calculation as
20constituted prior to the annexation had the smallest deficit
21and the deficit of each other district included in this
22calculation as constituted prior to the annexation, multiplied
23by the ratio of equalized assessed value of the territory
24detached to the total equalized assessed value of the district
25losing territory. The regional superintendent of schools for
26the educational service region in which a district losing

 

 

SB1722- 26 -LRB102 10193 CMG 15516 b

1territory is located prior to the annexation shall certify to
2the State Board of Education the value of all taxable property
3in the district losing territory and the value of all taxable
4property in the territory being detached, as last equalized or
5assessed by the Department of Revenue prior to the annexation.
6To be eligible for supplementary State aid reimbursement under
7this Section, the intergovernmental agreement to be submitted
8pursuant to Section 7-14A of this Code must show that fund
9balances were transferred from the district losing territory
10to the district gaining territory in the annexation. The
11changes to this Section made by Public Act 95-707 are intended
12to be retroactive and applicable to any annexation taking
13effect on or after July 1, 2004. For annexations that are
14eligible for payments under this paragraph (6.5) and that are
15effective on or after July 1, 2004, but before January 11, 2008
16(the effective date of Public Act 95-707), the required
17payment under this paragraph (6.5) shall be paid in the fiscal
18year of January 11, 2008 (the effective date of Public Act
1995-707).
20    (7) For purposes of any calculation required under
21paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
22subsection (c), a district with a combined fund balance that
23is positive shall be considered to have a deficit of zero. For
24purposes of determining each district's audited fund balances
25in its educational fund, working cash fund, operations and
26maintenance fund, and transportation fund for the specified

 

 

SB1722- 27 -LRB102 10193 CMG 15516 b

1year ending June 30, as provided in paragraphs (1), (2), (3),
2(4), (5), (6), and (6.5) of this subsection (c), the balance of
3each fund shall be deemed decreased by an amount equal to the
4amount of the annual property tax theretofore levied in the
5fund by the district for collection and payment to the
6district during the calendar year in which the June 30 fell,
7but only to the extent that the tax so levied in the fund
8actually was received by the district on or before or
9comprised a part of the fund on such June 30. For purposes of
10determining each district's audited fund balances, a
11calculation shall be made for each fund to determine the
12average for the 3 years prior to the specified year ending June
1330, as provided in paragraphs (1), (2), (3), (4), (5), (6), and
14(6.5) of this subsection (c), of the district's expenditures
15in the categories "purchased services", "supplies and
16materials", and "capital outlay", as those categories are
17defined in rules of the State Board of Education. If this
183-year average is less than the district's expenditures in
19these categories for the specified year ending June 30, as
20provided in paragraphs (1), (2), (3), (4), (5), (6), and (6.5)
21of this subsection (c), then the 3-year average shall be used
22in calculating the amounts payable under this Section in place
23of the amounts shown in these categories for the specified
24year ending June 30, as provided in paragraphs (1), (2), (3),
25(4), (5), (6), and (6.5) of this subsection (c). Any deficit
26because of State aid not yet received may not be considered in

 

 

SB1722- 28 -LRB102 10193 CMG 15516 b

1determining the June 30 deficits. The same basis of accounting
2shall be used by all previously existing districts and by all
3annexing or annexed districts, as constituted prior to the
4annexation, in making any computation required under
5paragraphs (1), (2), (3), (4), (5), (6), and (6.5) of this
6subsection (c).
7    (8) The supplementary State aid payments under this
8subsection (c) shall be treated as separate from all other
9payments made pursuant to Section 18-8.05 of this Code.
10    (d)(1) Following the formation of a combined school
11district, as defined in Section 11E-20 of this Code, a new unit
12district, as defined in Section 11E-25 of this Code, a new
13elementary district or districts and a new high school
14district formed through a school district conversion, as
15defined in Section 11E-15 of this Code, a new partial
16elementary unit district, as defined in Section 11E-30 of this
17Code, or a new elementary district or districts formed through
18a multi-unit conversion, as defined in subsection (b) of
19Section 11E-30 of this Code, or the annexation of all of the
20territory of one or more entire school districts by one or more
21other school districts, as defined in Article 7 of this Code, a
22supplementary State aid reimbursement shall be paid for the
23number of school years determined under the following table to
24each new or annexing district equal to the sum of $4,000 for
25each certified employee who is employed by the district on a
26full-time basis for the regular term of the school year:
 

 

 

 

SB1722- 29 -LRB102 10193 CMG 15516 b

1Reorganized District's RankReorganized District's Rank
2by type of district (unit,in Average Daily Attendance
3high school, elementary)By Quintile
4in Equalized Assessed Value
5Per Pupil by Quintile
63rd, 4th,
71st2ndor 5th
8QuintileQuintileQuintile
9    1st Quintile1 year1 year1 year
10    2nd Quintile1 year2 years2 years
11    3rd Quintile2 years3 years3 years
12    4th Quintile2 years3 years3 years
13    5th Quintile2 years3 years3 years
14The State Board of Education shall make a one-time calculation
15of a reorganized district's quintile ranks. The average daily
16attendance used in this calculation shall be the best 3
17months' average daily attendance for the district's first
18year. The equalized assessed value per pupil shall be the
19district's real property equalized assessed value used in
20calculating the district's first-year general State aid claim,
21under Section 18-8.05 of this Code, or first-year
22evidence-based funding claim, under Section 18-8.15 of this
23Code, as applicable, divided by the best 3 months' average
24daily attendance.

 

 

SB1722- 30 -LRB102 10193 CMG 15516 b

1    No annexing or resulting school district shall be entitled
2to supplementary State aid under this subsection (d) unless
3the district acquires at least 30% of the average daily
4attendance of the district from which the territory is being
5detached or divided.
6    If a district results from multiple reorganizations that
7would otherwise qualify the district for multiple payments
8under this subsection (d) in any year, then the district shall
9receive a single payment only for that year based solely on the
10most recent reorganization.
11    (2) For an elementary opt-in, as defined in subsection (d)
12of Section 11E-30 of this Code, the full-time certified staff
13incentive shall be computed in accordance with paragraph (1)
14of this subsection (d), equal to the sum of $4,000 for each
15certified employee of the elementary district that opts-in who
16is employed by the optional elementary unit district on a
17full-time basis for the regular term of the school year. The
18calculation from this paragraph (2) must be paid as follows:
19        (A) If the effective date for the elementary opt-in is
20    one year after the effective date for the optional
21    elementary unit district, 100% of the amount calculated in
22    this paragraph (2) shall be paid to the optional
23    elementary unit district for the number of years
24    calculated in paragraph (1) of this subsection (d) at the
25    optional elementary unit district's original effective
26    date, starting in the second year after the effective date

 

 

SB1722- 31 -LRB102 10193 CMG 15516 b

1    of the elementary opt-in.
2        (B) If the effective date for the elementary opt-in is
3    2 years after the effective date for the optional
4    elementary unit district, 75% of the amount calculated in
5    this paragraph (2) shall be paid to the optional
6    elementary unit district for the number of years
7    calculated in paragraph (1) of this subsection (d) at the
8    optional elementary unit district's original effective
9    date, starting in the second year after the effective date
10    of the elementary opt-in.
11        (C) If the effective date for the elementary opt-in is
12    3 years after the effective date for the optional
13    elementary unit district, 50% of the amount calculated in
14    this paragraph (2) shall be paid to the optional
15    elementary unit district for the number of years
16    calculated in paragraph (1) of this subsection (d) at the
17    optional elementary unit district's original effective
18    date, starting in the second year after the effective date
19    of the elementary opt-in.
20        (D) If the effective date for the elementary opt-in is
21    4 years after the effective date for the optional
22    elementary unit district, 25% of the amount calculated in
23    this paragraph (2) shall be paid to the optional
24    elementary unit district for the number of years
25    calculated in paragraph (1) of this subsection (d) at the
26    optional elementary unit district's original effective

 

 

SB1722- 32 -LRB102 10193 CMG 15516 b

1    date, starting in the second year after the effective date
2    of the elementary opt-in.
3        (E) If the effective date for the elementary opt-in is
4    5 years after the effective date for the optional
5    elementary unit district, the optional elementary unit
6    district is not eligible for any additional incentives due
7    to the elementary opt-in.
8    (2.5) Following the formation of a cooperative high school
9by 2 or more school districts under Section 10-22.22c of this
10Code, a supplementary State aid reimbursement shall be paid
11for 3 school years to the cooperative high school equal to the
12sum of $4,000 for each certified employee who is employed by
13the cooperative high school on a full-time basis for the
14regular term of any such school year. If a cooperative high
15school results from multiple agreements that would otherwise
16qualify the cooperative high school for multiple payments
17under this Section in any year, the cooperative high school
18shall receive a single payment for that year based solely on
19the most recent agreement.
20    (2.10) Following the annexation of territory detached from
21another school district whereby the enrollment of the annexing
22district increases 90% or more as a result of the annexation, a
23supplementary State aid reimbursement shall be paid to the
24annexing district equal to the sum of $4,000 for each
25certified employee who is employed by the annexing district on
26a full-time basis and shall be calculated in accordance with

 

 

SB1722- 33 -LRB102 10193 CMG 15516 b

1subsection (a) of this Section. To be eligible for
2supplementary State aid reimbursement under this Section, the
3intergovernmental agreement to be submitted pursuant to
4Section 7-14A of this Code must show that certified staff
5members were transferred from the control of the district
6losing territory to the control of the district gaining
7territory in the annexation. The changes to this Section made
8by Public Act 95-707 are intended to be retroactive and
9applicable to any annexation taking effect on or after July 1,
102004. For annexations that are eligible for payments under
11this paragraph (2.10) and that are effective on or after July
121, 2004, but before January 11, 2008 (the effective date of
13Public Act 95-707), the first required yearly payment under
14this paragraph (2.10) shall be paid in the second fiscal year
15after January 11, 2008 (the effective date of Public Act
1695-707). Any subsequent required yearly payments shall be paid
17in subsequent fiscal years until the payment obligation under
18this paragraph (2.10) is complete.
19    (2.15) Following the deactivation of a school facility in
20accordance with Section 10-22.22b of this Code, a
21supplementary State aid reimbursement shall be paid for the
22lesser of 3 school years or the length of the deactivation
23agreement, including any renewals of the original deactivation
24agreement, to each receiving school district equal to the sum
25of $4,000 for each certified employee who is employed by that
26receiving district on a full-time basis for the regular term

 

 

SB1722- 34 -LRB102 10193 CMG 15516 b

1of any such school year who was originally transferred to the
2control of that receiving district as a result of the
3deactivation. Receiving districts are eligible for payments
4under this paragraph (2.15) based on the certified employees
5transferred to that receiving district as a result of the
6deactivation and are not required to receive at least 30% of
7the deactivating district's average daily attendance as
8required under paragraph (1) of this subsection (d) to be
9eligible for payments.
10    (3) The supplementary State aid reimbursement payable
11under this subsection (d) shall be separate from and in
12addition to all other payments made to the district pursuant
13to any other Section of this Article.
14    (4) During May of each school year for which a
15supplementary State aid reimbursement is to be paid to a new,
16annexing, or receiving school district or cooperative high
17school pursuant to this subsection (d), the school board or
18governing board shall certify to the State Board of Education,
19on forms furnished to the school board or governing board by
20the State Board of Education for purposes of this subsection
21(d), the number of certified employees for which the district
22or cooperative high school is entitled to reimbursement under
23this Section, together with the names, certificate numbers,
24and positions held by the certified employees.
25    (5) Upon certification by the State Board of Education to
26the State Comptroller of the amount of the supplementary State

 

 

SB1722- 35 -LRB102 10193 CMG 15516 b

1aid reimbursement to which a school district or cooperative
2high school is entitled under this subsection (d), the State
3Comptroller shall draw his or her warrant upon the State
4Treasurer for the payment thereof to the school district or
5cooperative high school and shall promptly transmit the
6payment to the school district or cooperative high school
7through the appropriate school treasurer.
8(Source: P.A. 100-465, eff. 8-31-17.)
 
9    (105 ILCS 5/11E-140 new)
10    Sec. 11E-140. School District Efficiency Commission.
11    (a) The School District Efficiency Commission is created.
12The Commission shall consist of all of the following voting
13members:
14        (1) The Lieutenant Governor or his or her appointee.
15        (2) One member appointed by the State Board of
16    Education.
17        (3) One representative appointed by the Speaker of the
18    House of Representatives.
19        (4) One representative appointed by the Minority
20    Leader of the House of Representatives.
21        (5) One senator appointed by the President of the
22    Senate.
23        (6) One senator appointed by the Minority Leader of
24    the Senate.
25        (7) A representative of a statewide professional

 

 

SB1722- 36 -LRB102 10193 CMG 15516 b

1    teachers' organization appointed by the head of that
2    organization.
3        (8) A representative of a different statewide
4    professional teachers' organization appointed by the head
5    of that organization.
6        (9) A representative of a statewide organization that
7    represents school boards appointed by the head of that
8    organization.
9        (10) A representative of a statewide organization
10    representing principals appointed by the head of that
11    organization.
12        (11) A representative of an organization representing
13    professional teachers in a city having a population
14    exceeding 500,000 appointed by the head of that
15    organization.
16        (12) A representative of an association representing
17    school business officials appointed by the head of that
18    association.
19        (13) A representative of an association representing
20    school administrators appointed by the head of that
21    association.
22        (14) A member of the Chicago Board of Education
23    appointed by the Chicago Board of Education.
24        (15) A representative from an organization
25    representing administrators of special education appointed
26    by the head of that organization.

 

 

SB1722- 37 -LRB102 10193 CMG 15516 b

1        (16) A representative from a statewide parent
2    organization appointed by the head of that organization.
3        (17) A representative from an organization
4    representing high school districts appointed by the head
5    of that organization.
6        (18) A representative from a rural school district in
7    this State appointed by the Governor.
8        (19) A representative from a suburban school district
9    in this State appointed by the Governor.
10        (20) A representative of an association that
11    represents regional superintendents of schools appointed
12    by the head of that association.
13    Members shall serve without compensation, but shall be
14reimbursed for their reasonable and necessary expenses from
15funds appropriated for that purpose. Members shall be
16reimbursed for their travel expenses from appropriations to
17the State Board of Education made available for that purpose
18and subject to the rules of the appropriate travel control
19board. No later than 60 days after the effective date of this
20amendatory Act of the 102nd General Assembly, the Commission
21must hold its first meeting, on a date determined by the State
22Board, and must select a chairperson from among the members of
23the Commission. After its first meeting, the Commission must
24meet at the call of the chairperson and must hold public
25hearings throughout this State. The State Board shall provide
26administrative assistance and necessary staff support services

 

 

SB1722- 38 -LRB102 10193 CMG 15516 b

1to the Commission.
2    (b) The Commission must make recommendations to the
3Governor and the General Assembly on the number of school
4districts in this State, the optimal amount of enrollment for
5a school district, and where reorganization and realignment of
6school districts would be beneficial in this State. The
7Commission's recommendations must focus on all of the
8following areas:
9        (1) Reducing the money spent on the duplication of
10    efforts.
11        (2) Improving the education of students by having
12    fewer obstacles between qualified teachers and their
13    students.
14        (3) Lowering the property tax burden.
15        (4) Providing recommendations on what the net cost
16    savings of realignment is to this State.
17        (5) With a view toward reducing unnecessary
18    administrative costs, improving the education of students,
19    and lowering the property tax burden, drafting specific
20    recommendations to reduce the statewide total number of
21    school districts by no less than 25% through the
22    reorganization of school districts into unit districts
23    under Section 11E-25. Each recommendation under this
24    paragraph must include all of the following:
25            (A) A request to submit propositions at the next
26        general election for the purpose of voting for or

 

 

SB1722- 39 -LRB102 10193 CMG 15516 b

1        against the establishment of a combined unit district.
2            (B) A description of the territory comprising the
3        districts proposed to be dissolved and those to be
4        created, which, for an entire district, may be a
5        general reference to all of the territory included
6        within that district.
7            (C) A specification of the maximum tax rates the
8        proposed district or districts are authorized to levy
9        for various purposes and, if applicable, the
10        specifications related to the Property Tax Extension
11        Limitation Law, in accordance with Section 11E-80 of
12        this Code.
13    The Commission may not make any recommendations under this
14subsection that would provide for the consolidation of
15individual schools.
16    (c) On or before May 1, 2023, the Commission must vote on
17its recommendations and file a report with the Governor and
18the General Assembly. If the Commission adopts the report
19recommendations by an affirmative vote of at least 11 of its
20members, then the Commission's specific recommendations for
21reorganization of school districts into unit districts under
22paragraph (5) of subsection (b) shall be placed on the ballots
23of the designated school districts in the next general
24election in the same manner as if the Commission's
25recommendations were petitions approved by a regional
26superintendent of schools under Section 11E-50, except that

 

 

SB1722- 40 -LRB102 10193 CMG 15516 b

1Section 11E-135 does not apply to school district
2reorganizations resulting from referenda submitted under this
3Section. The Commission is dissolved on the day after the
4report is filed with both the Governor and the General
5Assembly.
6    (d) This Section is repealed on February 1, 2024.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.