093_HB1297

 
                                     LRB093 09151 SJM 09383 b

 1        AN ACT in relation to a school district income tax.

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

 4        Section  1.  Short  title.   This Act may be cited as the
 5    School District Income Tax Act.

 6        Section 5.  Net income tax; referendum.  The school board
 7    of any school district may, by  proper  resolution,  cause  a
 8    proposition  to  authorize  an  annual  tax,  measured  as  a
 9    percentage  of  net  income,  on  the privilege of earning or
10    receiving income (i) as a resident of the district or (ii) as
11    a record owner of real property in the district to the extent
12    of  the  income  derived  from  that  real  property,  to  be
13    certified to the proper election officials, who shall  submit
14    the  proposition to the voters in accordance with the general
15    election law; provided that the rate of such tax shall be  an
16    even  multiple  of  eighths of a percent.  When imposed, this
17    tax shall be levied on every individual subject  to  taxation
18    under this Act.
19        The election called for this purpose shall be governed by
20    the general election law.  If a majority of the votes cast on
21    the  proposition  is  in  favor thereof, the school board may
22    thereafter levy the tax as authorized, or at any lesser rate,
23    provided such lesser rate is an even multiple of eighths of a
24    percent.  Such tax  may  be  levied  only  on  income  earned
25    following  120 days after certification of the results of the
26    referendum by the proper election officials.
27        For purposes of this Act, a taxpayer's net income  for  a
28    taxable  year  shall  be  as  defined  in  Section 202 of the
29    Illinois Income Tax Act  for such year which is allocable  to
30    a district under the provisions of this Act.
31        For purposes of this Act, (i) an individual is a resident
 
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 1    of  a  school  district  for a taxable year if he or she is a
 2    resident of the State, as defined in the Illinois Income  Tax
 3    Act,  and  maintains  his or her principal place of residence
 4    within that school district on the first day of that  taxable
 5    year  and  (ii)  an  individual  owns  real  property  in the
 6    district if a record owner of the property and liable for the
 7    property taxes according to the property tax assessment  book
 8    or roll.

 9        Section  10.  Additional  levies;  Submission  to voters.
10    The school board  of  any  school  district  may,  by  proper
11    resolution,  cause  a  proposition to increase the annual tax
12    rate for the tax imposed under Section 5 to be  submitted  to
13    the  voters of the district at an election in accordance with
14    the general election law, provided such increase results in a
15    rate that is an even multiple of eighths of a  percent.   The
16    tax  may  be  levied only on income earned following 120 days
17    after certification of the results of the referendum  by  the
18    proper election officials.
19        The  election  called for such purposes shall be governed
20    by the general election law.  If a majority of the votes cast
21    on the proposition is in favor thereof, the school board  may
22    thereafter,  until  such authority is revoked in like manner,
23    levy an annual tax as authorized.

24        Section 15.  Collection of tax; promulgation of rules and
25    regulations.  On or before July 1 of each  year,  the  school
26    board  of  each  district imposing a tax under this Act shall
27    prepare and certify the annual tax rate to the Department  of
28    Revenue,  hereinafter  referred  to  as the Department, which
29    rate shall be applicable to the taxable year of any  taxpayer
30    which  includes  that July 1.  The tax imposed under this Act
31    shall be collected by and paid to the Department at the  same
32    time  and  in  the  same  manner,  and  subject  to  the same
 
                            -3-      LRB093 09151 SJM 09383 b
 1    assessment procedures, penalties, and interests, as  the  tax
 2    imposed  by  the Illinois Income Tax Act, except that the tax
 3    imposed by this Act shall not be subject to  any  withholding
 4    or  estimated payment requirements of the Illinois Income Tax
 5    Act.  The Department shall forthwith pay over  to  the  State
 6    Treasurer,  ex officio, as trustee, all monies received by it
 7    under this Act to be deposited in the School District  Income
 8    Tax  Fund,  to  be  held  and  disbursed  by the Treasurer as
 9    provided in Section 20.
10        The  Department   shall   promulgate   such   rules   and
11    regulations  as  may be necessary to implement the provisions
12    of this Act.

13        Section 20.  Distribution of tax revenue.  On  or  before
14    December  1 of each year, or the first following business day
15    if December 1 falls on a Saturday, Sunday,  or  holiday,  the
16    Department  shall certify to the Comptroller the disbursement
17    of stated sums of money to named school  districts.   On  any
18    given  certification  date,  the  amount  to be certified for
19    disbursement to each school district shall be the sum of  the
20    following:
21        (a)  The  amount of tax collected by the Department under
22    this Act from  individuals  who  maintained  their  principal
23    places  of  residence  or  who owned real property within the
24    school district on the first day of their last  full  taxable
25    year ended prior to the previous January 1, and
26        (b)  any  amount  of  tax which would have been certified
27    for  disbursement  to  the  school  district  on  a  previous
28    certification date under paragraph (a) above except  for  the
29    fact  that  it  had  not  been  collected  by  that  previous
30    certification date; less the sum of the following:
31        (c)  any   amount   of   tax   previously  certified  for
32    disbursement to that school district but  since  refunded  to
33    the taxpayer, and
 
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 1        (d)  an amount equal to 2% of the sum of amounts computed
 2    in  paragraphs  (a)  and  (b), which shall be retained by the
 3    Treasurer to cover the costs incurred by  the  Department  in
 4    administering and enforcing this Act.
 5        The  Department  at  the  time  of each disbursement to a
 6    school district shall prepare and certify to the  Comptroller
 7    the amount so retained by the State Treasurer to be paid into
 8    the  General  Revenue  Fund of the State Treasury.  Within 10
 9    days after receipt by the Comptroller of the certification of
10    disbursement to the  school  districts  and  to  the  General
11    Revenue  Fund  given  by  the  Department under this Act, the
12    Comptroller shall cause the warrants  to  be  drawn  for  the
13    respective   amounts   in   accordance  with  the  directions
14    contained in the certification.
15        The  board  of  any  district  receiving   any   of   the
16    disbursements provided for in this Section may apply those to
17    any  fund  from  which  that  board  is  authorized  to  make
18    expenditures by law.

19        Section 25.  Willful and fraudulent acts.  Any person who
20    is  subject  to  the provisions of this Act and who willfully
21    fails to file a return, or who willfully violates any rule or
22    regulation  of  the  Department  for  the  administration  or
23    enforcement of this Act, or who  willfully  attempts  in  any
24    other  manner  to evade or defeat any tax imposed by this Act
25    or the payment thereof, shall in addition to other  penalties
26    be  guilty  of  a Class B misdemeanor.  A prosecution for any
27    violation of this Section may be commenced within 3 years  of
28    the commission of that act.

29        Section   30.  Corporations.    Nothing   in   this   Act
30    authorizes  the tax imposed on net income by school districts
31    hereunder  to  be   levied  on  any  corporation   except   a
32    corporation  that  elects  to be taxed as an individual under
 
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 1    the Internal Revenue  Code.   If,  however,  the  income  tax
 2    authorized  by  this Act is imposed by a school district, the
 3    rate of ad valorem property taxes levied on the  property  of
 4    corporations  within  that  district, other than corporations
 5    electing to  be  taxed  as  individuals  under  the  Internal
 6    Revenue  Code,  shall  be  increased  as  provided in Section
 7    17-11 of the School Code.

 8        Section 35.  Property tax abatement.
 9        (a)  The extension of real property taxes  for  a  school
10    district  within  which  the  local  income  tax  for schools
11    authorized by this Act already has been imposed, levied,  and
12    collected  shall  be  abated by the county clerk in which the
13    school district is located on residential real property, farm
14    real property defined in Section 1-60  of  the  Property  Tax
15    Code,  and  real  property  of a small business as defined in
16    Section 1-75 of the  Illinois  Administrative  Procedure  Act
17    only  in  the  manner provided by this Section, provided that
18    (i) if any such school district is located in more  than  one
19    county  the  amount of real property taxes of the district to
20    be so abated shall be apportioned by  the  county  clerks  of
21    those counties based upon the ratio of the aggregate assessed
22    value  of  the  taxable property of the district in each such
23    county and (ii) prior to any abatement under this Section the
24    county clerk shall determine whether the amount of  each  tax
25    levied  by  the  district  for  a  lawful  school purpose and
26    certified for extension is based  on  a  rate  at  which  the
27    district making the certification is authorized by statute or
28    referendum  to levy that tax, shall disregard any excess, and
29    shall extend the levy of that  tax  in  accordance  with  the
30    provisions of Section 18-45 of the Property Tax Code, subject
31    to abatement as provided in this Section.
32        (b)  Not  later  than  September  1 of the first calendar
33    year in which the tax authorized  by  this  Act  is  imposed,
 
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 1    levied,   and   collected   within  a  school  district,  the
 2    Department of Revenue shall certify to the  county  clerk  of
 3    each  county  in  which  any  part  of the school district is
 4    located the estimated amount of the tax that would have  been
 5    collected  under  this  Act  during the immediately preceding
 6    calendar year in that part of the  district  located  in  the
 7    county  had  this  Act  been  in effect and had that tax been
 8    imposed, levied, and collected within  that  district  during
 9    that  immediately  preceding calendar year at the same annual
10    rate and for the same period of time as that tax is  imposed,
11    levied,  and  collected  in  the district during the calendar
12    year in which the certification is made.
13        (c)  During the calendar year immediately succeeding  the
14    calendar year in which the certification under subsection (b)
15    is  required to be made, in extending the real property taxes
16    last levied by a school district  for  educational  purposes,
17    the county clerk shall abate that extension of the district's
18    levy  for  educational  purposes on the property described in
19    subsection (a) only  by  an  amount  equal  to  100%  of  the
20    estimated  amount  that  was certified to the county clerk by
21    the Department of Revenue under the provisions of  subsection
22    (b)  during  the  calendar  year  immediately  preceding  the
23    calendar  year  in  which  the  extension  is  made.  In each
24    subsequent calendar year,  in  extending  the  real  property
25    taxes  levied by the school district for educational purposes
26    during the immediately preceding calendar  year,  the  county
27    clerk  shall abate each such extension of the district's levy
28    for  educational  purposes  on  the  property  described   in
29    subsection  (a) only by an amount equal to 100% of the amount
30    disbursed to the school district under Section 30 during June
31    of the calendar year immediately preceding the calendar  year
32    in which the extension and abatement are made.

33        Section  40.  Residential  rent  credit.  Each individual
 
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 1    taxpayer residing within a school district within  which  the
 2    local  income tax for schools authorized by this Act has been
 3    imposed, levied, and collected is entitled to a  credit,  not
 4    to exceed $500, against the tax imposed under this Act in the
 5    amount  of  5% of the annual rent paid by the taxpayer during
 6    the taxable year for the residence of the  taxpayer.   In  no
 7    event shall a credit under this Section reduce the taxpayer's
 8    liability under this Act to less than zero.

 9        Section  70.  The  State Finance Act is amended by adding
10    Section 5.595  as follows:

11        (30 ILCS 105/5.595 new)
12        Sec. 5.595.  The School District Income Tax Fund.

13        Section 75.  The Property Tax Code is amended by changing
14    Section 18-45 as follows:

15        (35 ILCS 200/18-45)
16        Sec. 18-45.  Computation of rates.   Except  as  provided
17    below,  each  county  clerk  shall estimate and determine the
18    rate per cent upon the equalized assessed valuation  for  the
19    levy  year  of  the property in the county's taxing districts
20    and special service areas, as established under  Article  VII
21    of  the Illinois Constitution, so that the rate will produce,
22    within the proper divisions of that county, not less than the
23    net amount that will be  required  by  the  county  board  or
24    certified  to  the  county  clerk according to law.  Prior to
25    extension, the  county  clerk  shall  determine  the  maximum
26    amount of tax authorized to be levied by any statute.  If the
27    amount of any tax certified to the county clerk for extension
28    exceeds  the maximum, the clerk shall extend only the maximum
29    allowable levy.
30        The county clerk shall exclude from the  total  equalized
 
                            -8-      LRB093 09151 SJM 09383 b
 1    assessed  valuation,  whenever  estimating and determining it
 2    under this Section and Sections  18-50  through  18-105,  the
 3    equalized assessed valuation in the percentage which has been
 4    agreed to by each taxing district, of any property or portion
 5    thereof  within an Enterprise Zone upon which an abatement of
 6    taxes  was  made  under  Section  18-170.   However,   if   a
 7    municipality   has  adopted  tax  increment  financing  under
 8    Division 74.4 of Article 11 of the Illinois  Municipal  Code,
 9    the  county  clerk  shall  estimate  and  determine  rates in
10    accordance with Sections 11-74.4-7 through 11-74.4-9 of  that
11    Act.  Beginning  on  January  1,  1998  and  thereafter,  the
12    equalized  assessed value of all property for the computation
13    of the amount to be extended within a county  with  3,000,000
14    or  more  inhabitants  shall  be the sum of (i) the equalized
15    assessed value of such  property  for  the  year  immediately
16    preceding  the levy year as established by the assessment and
17    equalization process for the year immediately  prior  to  the
18    levy  year, (ii) the equalized assessed value of any property
19    that qualifies as new property, as defined in Section 18-185,
20    or annexed property, as defined in Section  18-225,  for  the
21    current  levy  year,  and  (iii)  any recovered tax increment
22    value, as defined in Section 18-185,  for  the  current  levy
23    year,  less the equalized assessed value of any property that
24    qualifies as disconnected property,  as  defined  in  Section
25    18-225, for the current levy year.
26        The  provisions  of this Section and the authority of the
27    county clerk under this Section are subject to the  abatement
28    provisions  of  Section  35 of the School District Income Tax
29    Act with respect to the extension of taxes levied by a school
30    district on  residential  property,  farm  real  property  as
31    defined  in  Section  1-60,  and  real  property  of  a small
32    business  as  defined  in  Section  1-75  of   the   Illinois
33    Administrative Procedure Act.
34    (Source: P.A. 90-320, eff. 1-1-98.)
 
                            -9-      LRB093 09151 SJM 09383 b
 1        Section  80.  The  School  Code  is  amended  by changing
 2    Sections 17-11 and 18-8.05 as follows:

 3        (105 ILCS 5/17-11) (from Ch. 122, par. 17-11)
 4        Sec. 17-11.  Certificate of tax levy.  The  school  board
 5    of  each  district  shall  ascertain, as near as practicable,
 6    annually, how much money must be raised by  special  tax  for
 7    transportation  purposes  if  any and for educational and for
 8    operations and maintenance  purposes  for  the  next  ensuing
 9    year.   In  school  districts  with a population of less than
10    500,000, these amounts shall be  certified  and  returned  to
11    each  county clerk on or before the last Tuesday in December,
12    annually.  The certificate shall be signed by  the  president
13    and clerk or secretary, and may be in the following form:
14                       CERTIFICATE OF TAX LEVY
15        We  hereby  certify  that  we  require  the sum of ......
16    dollars, to be levied as a  special  tax  for  transportation
17    purposes  and  the  sum  of  ...... dollars to be levied as a
18    special tax for educational  purposes,  and  the  sum  ......
19    dollars  to  be  levied  as  a special tax for operations and
20    maintenance purposes, and the sum of ...... to be levied as a
21    special tax  for  a  working  cash  fund,  on  the  equalized
22    assessed  value  of the taxable property of our district, for
23    the year (insert year).
24        Signed on (insert date).
25        A ........... B ............., President
26        C ........... D............., Clerk (Secretary)
27        Dist. No. .........., ............ County

28        A failure by the school board  to  file  the  certificate
29    with  the county clerk in the time required shall not vitiate
30    the assessment. A district levying a  tax  under  the  School
31    District   Income  Tax  Act,  enacted  by  the  93rd  General
32    Assembly, shall together with such certificate of  tax  levy,
33    also  certify  for  property tax abatement purposes an amount
 
                            -10-     LRB093 09151 SJM 09383 b
 1    equal to  the  amount  of  revenue  realized  by  the  school
 2    district's tax on net income during the previous fiscal year,
 3    which  amount shall be used by the county clerk in the manner
 4    provided by Section 35 of the School District Income Tax Act.
 5    This provision shall  be  effective  for  a  school  district
 6    beginning  in  the  fiscal  year following the fiscal year it
 7    begins levying a net income tax.
 8    (Source: P.A. 91-357, eff. 7-29-99.)

 9        (105 ILCS 5/18-8.05)
10        Sec. 18-8.05.  Basis for apportionment of  general  State
11    financial  aid  and  supplemental  general  State  aid to the
12    common schools for the 1998-1999 and subsequent school years.

13    (A)  General Provisions.
14        (1)  The  provisions  of  this  Section  apply   to   the
15    1998-1999 and subsequent school years.  The system of general
16    State  financial aid provided for in this Section is designed
17    to assure that, through a combination of State financial  aid
18    and  required local resources, the financial support provided
19    each pupil in Average Daily Attendance equals  or  exceeds  a
20    prescribed per pupil Foundation Level.  This formula approach
21    imputes  a  level  of per pupil Available Local Resources and
22    provides for the basis to calculate  a  per  pupil  level  of
23    general  State  financial  aid  that, when added to Available
24    Local Resources, equals or exceeds the Foundation Level.  The
25    amount of per pupil general State financial  aid  for  school
26    districts,   in   general,  varies  in  inverse  relation  to
27    Available Local Resources.  Per pupil amounts are based  upon
28    each  school district's Average Daily Attendance as that term
29    is defined in this Section.
30        (2)  In addition to general State financial  aid,  school
31    districts  with  specified levels or concentrations of pupils
32    from  low  income  households   are   eligible   to   receive
33    supplemental  general  State financial aid grants as provided
 
                            -11-     LRB093 09151 SJM 09383 b
 1    pursuant to subsection (H). The supplemental State aid grants
 2    provided for school districts under subsection (H)  shall  be
 3    appropriated  for distribution to school districts as part of
 4    the same line item in which the general State  financial  aid
 5    of school districts is appropriated under this Section.
 6        (3)  To  receive financial assistance under this Section,
 7    school districts are required to file claims with  the  State
 8    Board of Education, subject to the following requirements:
 9             (a)  Any  school  district which fails for any given
10        school year to maintain school as required by law, or  to
11        maintain  a recognized school is not eligible to file for
12        such school year any claim upon the Common  School  Fund.
13        In  case  of  nonrecognition  of  one  or more attendance
14        centers  in  a  school   district   otherwise   operating
15        recognized  schools,  the  claim of the district shall be
16        reduced  in  the  proportion  which  the  Average   Daily
17        Attendance  in  the  attendance center or centers bear to
18        the Average Daily Attendance in the school  district.   A
19        "recognized  school"  means any public school which meets
20        the standards as established for recognition by the State
21        Board of Education.   A  school  district  or  attendance
22        center  not  having  recognition  status  at the end of a
23        school term is entitled to receive State aid payments due
24        upon  a  legal  claim  which  was  filed  while  it   was
25        recognized.
26             (b)  School district claims filed under this Section
27        are subject to Sections 18-9, 18-10, and 18-12, except as
28        otherwise provided in this Section.
29             (c)  If  a  school  district  operates  a  full year
30        school under Section 10-19.1, the general  State  aid  to
31        the  school  district  shall  be  determined by the State
32        Board of Education in accordance  with  this  Section  as
33        near as may be applicable.
34             (d)  (Blank).
 
                            -12-     LRB093 09151 SJM 09383 b
 1        (4)  Except  as  provided in subsections (H) and (L), the
 2    board of any district receiving any of  the  grants  provided
 3    for  in  this  Section  may  apply those funds to any fund so
 4    received  for  which  that  board  is  authorized   to   make
 5    expenditures by law.
 6        School  districts  are  not  required  to exert a minimum
 7    Operating Tax Rate in order to qualify for  assistance  under
 8    this Section.
 9        (5)  As  used  in  this Section the following terms, when
10    capitalized, shall have the meaning ascribed herein:
11             (a)  "Average Daily Attendance":  A count  of  pupil
12        attendance   in  school,  averaged  as  provided  for  in
13        subsection  (C)  and  utilized  in  deriving  per   pupil
14        financial support levels.
15             (b)  "Available  Local Resources":  A computation of
16        local financial  support,  calculated  on  the  basis  of
17        Average Daily Attendance and derived as provided pursuant
18        to subsection (D).
19             (c)  "Corporate    Personal   Property   Replacement
20        Taxes":  Funds paid to local school districts pursuant to
21        "An Act in  relation  to  the  abolition  of  ad  valorem
22        personal  property  tax  and  the replacement of revenues
23        lost thereby, and amending and repealing certain Acts and
24        parts of Acts in connection therewith", certified  August
25        14, 1979, as amended (Public Act 81-1st S.S.-1).
26             (d)  "Foundation  Level":  A prescribed level of per
27        pupil financial support as  provided  for  in  subsection
28        (B).
29             (e)  "Operating  Tax  Rate":   All  school  district
30        property taxes extended for all purposes, except Bond and
31        Interest,  Summer  School, Rent, Capital Improvement, and
32        Vocational Education Building purposes.

33    (B)  Foundation Level.
34        (1)  The Foundation Level is a figure established by  the
 
                            -13-     LRB093 09151 SJM 09383 b
 1    State  representing  the minimum level of per pupil financial
 2    support that should be available to  provide  for  the  basic
 3    education  of each pupil in Average Daily Attendance.  As set
 4    forth in this Section, each school  district  is  assumed  to
 5    exert   a  sufficient  local  taxing  effort  such  that,  in
 6    combination with the aggregate of general State financial aid
 7    provided the  district,  an  aggregate  of  State  and  local
 8    resources  are available to meet the basic education needs of
 9    pupils in the district.
10        (2)  For the 1998-1999 school year, the Foundation  Level
11    of  support  is  $4,225.   For the 1999-2000 school year, the
12    Foundation Level of support is  $4,325.   For  the  2000-2001
13    school year, the Foundation Level of support is $4,425.
14        (3)  For  the  2001-2002 school year and each school year
15    thereafter, the Foundation Level of support is $4,560 or such
16    greater amount as may be established by law  by  the  General
17    Assembly.

18    (C)  Average Daily Attendance.
19        (1)  For   purposes  of  calculating  general  State  aid
20    pursuant to  subsection  (E),  an  Average  Daily  Attendance
21    figure  shall  be  utilized.   The  Average  Daily Attendance
22    figure for formula calculation purposes shall be the  monthly
23    average  of the actual number of pupils in attendance of each
24    school district, as further averaged for the best 3 months of
25    pupil attendance for each school district.  In compiling  the
26    figures  for  the  number  of  pupils  in  attendance, school
27    districts  and  the  State  Board  of  Education  shall,  for
28    purposes of general State  aid  funding,  conform  attendance
29    figures to the requirements of subsection (F).
30        (2)  The  Average  Daily  Attendance  figures utilized in
31    subsection (E) shall be the requisite attendance data for the
32    school year immediately preceding the school year  for  which
33    general  State  aid is being calculated or the average of the
34    attendance data for the 3 preceding school  years,  whichever
 
                            -14-     LRB093 09151 SJM 09383 b
 1    is greater.  The Average Daily Attendance figures utilized in
 2    subsection (H) shall be the requisite attendance data for the
 3    school  year  immediately preceding the school year for which
 4    general State aid is being calculated.

 5    (D)  Available Local Resources.
 6        (1)  For  purposes  of  calculating  general  State   aid
 7    pursuant  to  subsection  (E),  a representation of Available
 8    Local Resources per  pupil,  as  that  term  is  defined  and
 9    determined  in this subsection, shall be utilized.  Available
10    Local Resources per pupil shall include a  calculated  dollar
11    amount representing local school district revenues from local
12    property   taxes   and   from   Corporate  Personal  Property
13    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
14    Average Daily Attendance.
15        (2)  In  determining  a  school  district's  revenue from
16    local property taxes, the  State  Board  of  Education  shall
17    utilize  the  equalized  assessed  valuation  of  all taxable
18    property of each school district as of September  30  of  the
19    previous  year.   The  equalized  assessed valuation utilized
20    shall be obtained and determined as  provided  in  subsection
21    (G).
22        (3)  For school districts maintaining grades kindergarten
23    through  12,  local  property tax revenues per pupil shall be
24    calculated  as  the  product  of  the  applicable   equalized
25    assessed  valuation for the district multiplied by 3.00%, and
26    divided by the district's Average  Daily  Attendance  figure.
27    For  school districts maintaining grades kindergarten through
28    8, local property tax revenues per pupil shall be  calculated
29    as the product of the applicable equalized assessed valuation
30    for  the  district  multiplied  by  2.30%, and divided by the
31    district's  Average  Daily  Attendance  figure.   For  school
32    districts maintaining grades 9 through 12, local property tax
33    revenues per pupil shall be the applicable equalized assessed
34    valuation of the district multiplied by 1.05%, and divided by
 
                            -15-     LRB093 09151 SJM 09383 b
 1    the district's Average Daily Attendance figure.
 2        (4)  The Corporate Personal  Property  Replacement  Taxes
 3    paid to each school district during the calendar year 2 years
 4    before  the  calendar  year  in  which  a school year begins,
 5    divided by the  Average  Daily  Attendance  figure  for  that
 6    district,  shall  be added to the local property tax revenues
 7    per pupil as derived by the application  of  the  immediately
 8    preceding  paragraph (3).  The sum of these per pupil figures
 9    for each school district  shall  constitute  Available  Local
10    Resources  as  that term is utilized in subsection (E) in the
11    calculation of general State aid.

12    (E)  Computation of General State Aid.
13        (1)  For each school year, the amount  of  general  State
14    aid  allotted  to  a school district shall be computed by the
15    State Board of Education as provided in this subsection.
16        (2)  For any school district for  which  Available  Local
17    Resources  per  pupil  is less than the product of 0.93 times
18    the Foundation Level, general State  aid  for  that  district
19    shall  be  calculated  as  an  amount equal to the Foundation
20    Level minus Available  Local  Resources,  multiplied  by  the
21    Average Daily Attendance of the school district.
22        (3)  For  any  school  district for which Available Local
23    Resources per pupil is equal to or greater than  the  product
24    of  0.93 times the Foundation Level and less than the product
25    of 1.75 times the Foundation Level, the general State aid per
26    pupil shall be a decimal proportion of the  Foundation  Level
27    derived   using   a  linear  algorithm.   Under  this  linear
28    algorithm, the calculated general State aid per  pupil  shall
29    decline   in  direct  linear  fashion  from  0.07  times  the
30    Foundation Level for a school district with  Available  Local
31    Resources  equal  to the product of 0.93 times the Foundation
32    Level, to 0.05  times  the  Foundation  Level  for  a  school
33    district  with Available Local Resources equal to the product
34    of 1.75  times  the  Foundation  Level.   The  allocation  of
 
                            -16-     LRB093 09151 SJM 09383 b
 1    general  State  aid  for  school  districts  subject  to this
 2    paragraph 3 shall be the calculated  general  State  aid  per
 3    pupil  figure  multiplied  by the Average Daily Attendance of
 4    the school district.
 5        (4)  For any school district for  which  Available  Local
 6    Resources  per  pupil  equals  or exceeds the product of 1.75
 7    times the Foundation Level, the general  State  aid  for  the
 8    school  district  shall  be calculated as the product of $218
 9    multiplied by the Average  Daily  Attendance  of  the  school
10    district.
11        (5)  The  amount  of  general  State  aid  allocated to a
12    school district for the 1999-2000  school  year  meeting  the
13    requirements  set  forth  in  paragraph (4) of subsection (G)
14    shall be increased by an amount equal to  the  general  State
15    aid  that  would  have  been received by the district for the
16    1998-1999 school year by utilizing the  Extension  Limitation
17    Equalized  Assessed  Valuation as calculated in paragraph (4)
18    of subsection (G) less the general State aid allotted for the
19    1998-1999 school year.  This amount shall  be  deemed  a  one
20    time  increase, and shall not affect any future general State
21    aid allocations.
22        (6)  The operating tax rate of a district levying  a  net
23    income  tax under the School District Income Tax Act, enacted
24    by the 93rd General Assembly, shall  be  increased,  for  the
25    calculation  of  aid under this Section, by a rate which when
26    applied to the equalized assessed valuation of  the  district
27    would  yield  an  amount equal to the revenue received by the
28    district from its income tax during the current fiscal year.

29    (F)  Compilation of Average Daily Attendance.
30        (1)  Each school district shall, by July 1 of each  year,
31    submit  to  the State Board of Education, on forms prescribed
32    by the State Board of Education, attendance figures  for  the
33    school  year  that began in the preceding calendar year.  The
34    attendance information  so  transmitted  shall  identify  the
 
                            -17-     LRB093 09151 SJM 09383 b
 1    average daily attendance figures for each month of the school
 2    year.   Beginning  with  the general State aid claim form for
 3    the 2002-2003 school year, districts shall calculate  Average
 4    Daily  Attendance  as  provided in subdivisions (a), (b), and
 5    (c) of this paragraph (1).
 6             (a)  In  districts  that  do  not  hold   year-round
 7        classes,  days  of attendance in August shall be added to
 8        the month of September and any days of attendance in June
 9        shall be added to the month of May.
10             (b)  In  districts  in  which  all  buildings   hold
11        year-round classes, days of attendance in July and August
12        shall  be added to the month of September and any days of
13        attendance in June shall be added to the month of May.
14             (c)  In districts in which some buildings,  but  not
15        all,  hold  year-round  classes,  for  the non-year-round
16        buildings, days of attendance in August shall be added to
17        the month of September and any days of attendance in June
18        shall be added to the month of  May.  The  average  daily
19        attendance for the year-round buildings shall be computed
20        as  provided in subdivision (b) of this paragraph (1). To
21        calculate the Average Daily Attendance for the  district,
22        the average daily attendance for the year-round buildings
23        shall  be  multiplied  by  the  days  in  session for the
24        non-year-round buildings for each month and added to  the
25        monthly attendance of the non-year-round buildings.
26        Except  as  otherwise  provided  in this Section, days of
27    attendance by pupils shall be counted only  for  sessions  of
28    not  less  than  5  clock  hours of school work per day under
29    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
30    personnel   or   volunteer   personnel   when   engaging   in
31    non-teaching   duties  and  supervising  in  those  instances
32    specified in subsection (a) of Section 10-22.34 and paragraph
33    10 of Section 34-18, with pupils of legal school age  and  in
34    kindergarten and grades 1 through 12.
 
                            -18-     LRB093 09151 SJM 09383 b
 1        Days  of attendance by tuition pupils shall be accredited
 2    only to the districts that pay the tuition  to  a  recognized
 3    school.
 4        (2)  Days  of  attendance  by pupils of less than 5 clock
 5    hours of school shall be subject to the following  provisions
 6    in the compilation of Average Daily Attendance.
 7             (a)  Pupils  regularly  enrolled  in a public school
 8        for only a part of the school day may be counted  on  the
 9        basis  of  1/6 day for every class hour of instruction of
10        40 minutes or more attended pursuant to such  enrollment,
11        unless  a pupil is enrolled in a block-schedule format of
12        80 minutes or more of  instruction,  in  which  case  the
13        pupil  may  be  counted on the basis of the proportion of
14        minutes of school work completed each day to the  minimum
15        number of minutes that school work is required to be held
16        that day.
17             (b)  Days  of  attendance  may  be less than 5 clock
18        hours on the opening and closing of the school term,  and
19        upon  the first day of pupil attendance, if preceded by a
20        day  or  days  utilized  as  an  institute  or  teachers'
21        workshop.
22             (c)  A session of 4  or  more  clock  hours  may  be
23        counted  as a day of attendance upon certification by the
24        regional  superintendent,  and  approved  by  the   State
25        Superintendent  of  Education  to  the  extent  that  the
26        district has been forced to use daily multiple sessions.
27             (d)  A  session  of  3  or  more  clock hours may be
28        counted as a day of attendance (1) when the remainder  of
29        the school day or at least 2 hours in the evening of that
30        day  is  utilized  for an in-service training program for
31        teachers, up to a maximum of 5 days per  school  year  of
32        which  a maximum of 4 days of such 5 days may be used for
33        parent-teacher conferences, provided a district  conducts
34        an  in-service  training  program  for teachers which has
 
                            -19-     LRB093 09151 SJM 09383 b
 1        been approved by the State Superintendent  of  Education;
 2        or,  in  lieu of 4 such days, 2 full days may be used, in
 3        which event each such day may be  counted  as  a  day  of
 4        attendance;  and  (2)  when  days  in  addition  to those
 5        provided in item (1) are scheduled by a  school  pursuant
 6        to  its  school improvement plan adopted under Article 34
 7        or its revised or amended school improvement plan adopted
 8        under Article 2, provided that (i) such sessions of 3  or
 9        more  clock  hours  are  scheduled  to  occur  at regular
10        intervals, (ii) the remainder of the school days in which
11        such sessions occur are utilized for in-service  training
12        programs   or  other  staff  development  activities  for
13        teachers, and (iii) a sufficient  number  of  minutes  of
14        school  work under the direct supervision of teachers are
15        added to the school days between such regularly scheduled
16        sessions to  accumulate  not  less  than  the  number  of
17        minutes  by  which such sessions of 3 or more clock hours
18        fall short of 5 clock hours. Any full days used  for  the
19        purposes  of  this  paragraph shall not be considered for
20        computing average daily attendance.  Days  scheduled  for
21        in-service    training    programs,   staff   development
22        activities,  or   parent-teacher   conferences   may   be
23        scheduled  separately  for  different  grade  levels  and
24        different attendance centers of the district.
25             (e)  A  session  of  not less than one clock hour of
26        teaching hospitalized or homebound pupils on-site  or  by
27        telephone  to  the classroom may be counted as 1/2 day of
28        attendance, however these pupils must receive 4  or  more
29        clock  hours  of instruction to be counted for a full day
30        of attendance.
31             (f)  A session of at least  4  clock  hours  may  be
32        counted  as  a  day of attendance for first grade pupils,
33        and pupils in full day kindergartens, and a session of  2
34        or  more hours may be counted as 1/2 day of attendance by
 
                            -20-     LRB093 09151 SJM 09383 b
 1        pupils in kindergartens which provide  only  1/2  day  of
 2        attendance.
 3             (g)  For  children  with  disabilities who are below
 4        the age of 6 years and who cannot attend 2 or more  clock
 5        hours  because  of  their  disability  or  immaturity,  a
 6        session of not less than one clock hour may be counted as
 7        1/2  day  of  attendance; however for such children whose
 8        educational needs so require a session of 4 or more clock
 9        hours may be counted as a full day of attendance.
10             (h)  A recognized kindergarten  which  provides  for
11        only  1/2  day of attendance by each pupil shall not have
12        more than 1/2 day of attendance counted in any  one  day.
13        However, kindergartens may count 2 1/2 days of attendance
14        in  any  5 consecutive school days.  When a pupil attends
15        such a kindergarten for 2 half days  on  any  one  school
16        day,  the  pupil  shall  have  the following day as a day
17        absent from school, unless the  school  district  obtains
18        permission  in  writing  from the State Superintendent of
19        Education. Attendance at kindergartens which provide  for
20        a  full  day of attendance by each pupil shall be counted
21        the same as attendance by first grade  pupils.  Only  the
22        first  year  of  attendance  in one kindergarten shall be
23        counted, except in  case  of  children  who  entered  the
24        kindergarten   in  their  fifth  year  whose  educational
25        development requires a second  year  of  kindergarten  as
26        determined  under  the rules and regulations of the State
27        Board of Education.

28    (G)  Equalized Assessed Valuation Data.
29        (1)  For purposes of the calculation of  Available  Local
30    Resources  required  pursuant  to  subsection  (D), the State
31    Board of  Education  shall  secure  from  the  Department  of
32    Revenue  the value as equalized or assessed by the Department
33    of Revenue of all taxable property of every school  district,
34    together  with  (i) the applicable tax rate used in extending
 
                            -21-     LRB093 09151 SJM 09383 b
 1    taxes for the funds of the district as of September 30 of the
 2    previous year and (ii)  the  limiting  rate  for  all  school
 3    districts  subject  to  property tax extension limitations as
 4    imposed under the Property Tax Extension Limitation Law.
 5        This equalized assessed valuation, as adjusted further by
 6    the requirements of this subsection, shall be utilized in the
 7    calculation of Available Local Resources.
 8        (2)  The equalized assessed valuation  in  paragraph  (1)
 9    shall be adjusted, as applicable, in the following manner:
10             (a)  For the purposes of calculating State aid under
11        this  Section,  with  respect  to  any  part  of a school
12        district within a redevelopment project area  in  respect
13        to   which  a  municipality  has  adopted  tax  increment
14        allocation  financing  pursuant  to  the  Tax   Increment
15        Allocation  Redevelopment Act, Sections 11-74.4-1 through
16        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
17        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
18        11-74.6-50 of the Illinois Municipal Code, no part of the
19        current equalized assessed  valuation  of  real  property
20        located in any such project area which is attributable to
21        an  increase  above  the total initial equalized assessed
22        valuation of such property shall be used as part  of  the
23        equalized  assessed valuation of the district, until such
24        time as all redevelopment project costs have  been  paid,
25        as  provided  in  Section  11-74.4-8 of the Tax Increment
26        Allocation Redevelopment Act or in Section 11-74.6-35  of
27        the Industrial Jobs Recovery Law.  For the purpose of the
28        equalized  assessed  valuation of the district, the total
29        initial  equalized  assessed  valuation  or  the  current
30        equalized assessed valuation, whichever is  lower,  shall
31        be  used  until  such  time  as all redevelopment project
32        costs have been paid.
33             (b)  The real property equalized assessed  valuation
34        for  a  school  district shall be adjusted by subtracting
 
                            -22-     LRB093 09151 SJM 09383 b
 1        from the real property value as equalized or assessed  by
 2        the  Department  of  Revenue  for  the district an amount
 3        computed by dividing the amount of any abatement of taxes
 4        under Section 18-170 of the Property Tax  Code  by  3.00%
 5        for  a  district  maintaining grades kindergarten through
 6        12,  by  2.30%  for   a   district   maintaining   grades
 7        kindergarten  through  8,  or  by  1.05%  for  a district
 8        maintaining grades 9 through 12 and adjusted by an amount
 9        computed by dividing the amount of any abatement of taxes
10        under subsection (a) of Section 18-165  of  the  Property
11        Tax  Code  by the same percentage rates for district type
12        as specified in this subparagraph (b).
13        (3)  For the 1999-2000 school year and each  school  year
14    thereafter, if a school district meets all of the criteria of
15    this subsection (G)(3), the school district's Available Local
16    Resources  shall be calculated under subsection (D) using the
17    district's Extension Limitation Equalized Assessed  Valuation
18    as calculated under this subsection (G)(3).
19        For  purposes  of  this  subsection  (G)(3) the following
20    terms shall have the following meanings:
21             "Budget Year":  The school year  for  which  general
22        State aid is calculated and awarded under subsection (E).
23             "Base  Tax Year": The property tax levy year used to
24        calculate the Budget Year  allocation  of  general  State
25        aid.
26             "Preceding  Tax  Year":  The  property tax levy year
27        immediately preceding the Base Tax Year.
28             "Base Tax Year's Tax Extension": The product of  the
29        equalized assessed valuation utilized by the County Clerk
30        in  the  Base Tax Year multiplied by the limiting rate as
31        calculated  by  the  County  Clerk  and  defined  in  the
32        Property Tax Extension Limitation Law.
33             "Preceding Tax Year's Tax Extension": The product of
34        the equalized assessed valuation utilized by  the  County
 
                            -23-     LRB093 09151 SJM 09383 b
 1        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
 2        Operating Tax Rate as defined in subsection (A).
 3             "Extension  Limitation  Ratio":  A  numerical ratio,
 4        certified by the County Clerk, in which the numerator  is
 5        the  Base Tax Year's Tax Extension and the denominator is
 6        the Preceding Tax Year's Tax Extension.
 7             "Operating Tax Rate":  The  operating  tax  rate  as
 8        defined in subsection (A).
 9        If a school district is subject to property tax extension
10    limitations  as  imposed  under  the  Property  Tax Extension
11    Limitation Law, the State Board of Education shall  calculate
12    the Extension Limitation Equalized Assessed Valuation of that
13    district.   For  the  1999-2000  school  year,  the Extension
14    Limitation Equalized Assessed Valuation of a school  district
15    as  calculated by the State Board of Education shall be equal
16    to the product of  the  district's  1996  Equalized  Assessed
17    Valuation and the district's Extension Limitation Ratio.  For
18    the  2000-2001  school  year and each school year thereafter,
19    the Extension Limitation Equalized Assessed  Valuation  of  a
20    school district as calculated by the State Board of Education
21    shall  be  equal  to  the  product  of the Equalized Assessed
22    Valuation last used in the calculation of general  State  aid
23    and   the  district's  Extension  Limitation  Ratio.  If  the
24    Extension Limitation Equalized Assessed Valuation of a school
25    district as calculated under this subsection (G)(3)  is  less
26    than   the   district's   equalized   assessed  valuation  as
27    calculated pursuant to subsections (G)(1)  and  (G)(2),  then
28    for  purposes of calculating the district's general State aid
29    for  the  Budget  Year  pursuant  to  subsection  (E),   that
30    Extension  Limitation  Equalized  Assessed Valuation shall be
31    utilized  to  calculate  the   district's   Available   Local
32    Resources under subsection (D).
33        (4)  For  the  purposes  of calculating general State aid
34    for the 1999-2000 school year  only,  if  a  school  district
 
                            -24-     LRB093 09151 SJM 09383 b
 1    experienced   a   triennial  reassessment  on  the  equalized
 2    assessed valuation used  in  calculating  its  general  State
 3    financial  aid  apportionment  for the 1998-1999 school year,
 4    the State Board of Education shall  calculate  the  Extension
 5    Limitation  Equalized Assessed Valuation that would have been
 6    used to calculate the district's 1998-1999 general State aid.
 7    This amount shall equal the product of the equalized assessed
 8    valuation  used  to  calculate  general  State  aid  for  the
 9    1997-1998 school year and the district's Extension Limitation
10    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
11    Valuation  of  the  school  district as calculated under this
12    paragraph (4) is less than the district's equalized  assessed
13    valuation  utilized  in  calculating the district's 1998-1999
14    general  State  aid  allocation,   then   for   purposes   of
15    calculating  the  district's  general  State  aid pursuant to
16    paragraph (5) of subsection (E),  that  Extension  Limitation
17    Equalized  Assessed  Valuation shall be utilized to calculate
18    the district's Available Local Resources.
19        (5)  For school districts  having  a  majority  of  their
20    equalized  assessed  valuation  in  any  county  except Cook,
21    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
22    general  State  aid  allocated to the school district for the
23    1999-2000 school year under the provisions of subsection (E),
24    (H), and (J) of this Section  is  less  than  the  amount  of
25    general State aid allocated to the district for the 1998-1999
26    school  year  under these subsections, then the general State
27    aid of the district for the 1999-2000 school year only  shall
28    be  increased  by  the difference between these amounts.  The
29    total payments made under this paragraph (5) shall not exceed
30    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
31    $14,000,000.

32    (H)  Supplemental General State Aid.
33        (1)  In  addition  to  the  general  State  aid  a school
34    district is allotted pursuant to subsection  (E),  qualifying
 
                            -25-     LRB093 09151 SJM 09383 b
 1    school  districts  shall receive a grant, paid in conjunction
 2    with  a  district's  payments  of  general  State  aid,   for
 3    supplemental  general  State aid based upon the concentration
 4    level of  children  from  low-income  households  within  the
 5    school  district.  Supplemental State aid grants provided for
 6    school districts under this subsection shall be  appropriated
 7    for distribution to school districts as part of the same line
 8    item  in  which  the  general  State  financial aid of school
 9    districts is appropriated under this Section. For purposes of
10    this subsection, the term  "Low-Income  Concentration  Level"
11    shall  be  the  low-income eligible pupil count from the most
12    recently available federal  census  divided  by  the  Average
13    Daily Attendance of the school district. If, however, (i) the
14    percentage  decrease  from the 2 most recent federal censuses
15    in the low-income eligible  pupil  count  of  a  high  school
16    district  with fewer than 400 students exceeds by 75% or more
17    the percentage change in the total low-income eligible  pupil
18    count   of  contiguous  elementary  school  districts,  whose
19    boundaries are coterminous with the high school district,  or
20    (ii)  a  high school district within 2 counties and serving 5
21    elementary school districts, whose boundaries are coterminous
22    with the high school district, has a percentage decrease from
23    the 2 most recent federal censuses in the low-income eligible
24    pupil count and there is a percentage increase in  the  total
25    low-income   eligible  pupil  count  of  a  majority  of  the
26    elementary school districts in excess of 50% from the 2  most
27    recent  federal  censuses,  then  the  high school district's
28    low-income eligible pupil  count  from  the  earlier  federal
29    census  shall  be  the number used as the low-income eligible
30    pupil count for the high school  district,  for  purposes  of
31    this  subsection (H).  The changes made to this paragraph (1)
32    by Public Act 92-28 shall apply to supplemental general State
33    aid grants paid in fiscal year 1999 and in each  fiscal  year
34    thereafter  and to any State aid payments made in fiscal year
 
                            -26-     LRB093 09151 SJM 09383 b
 1    1994 through fiscal year 1998 pursuant to subsection 1(n)  of
 2    Section  18-8  of  this  Code  (which was repealed on July 1,
 3    1998), and any high  school  district  that  is  affected  by
 4    Public  Act  92-28  is  entitled  to  a  recomputation of its
 5    supplemental general State aid grant or State aid paid in any
 6    of those fiscal  years.   This  recomputation  shall  not  be
 7    affected by any other funding.
 8        (2)  Supplemental  general  State  aid  pursuant  to this
 9    subsection  (H)  shall  be  provided  as  follows   for   the
10    1998-1999, 1999-2000, and 2000-2001 school years only:
11             (a)  For  any  school  district  with  a  Low Income
12        Concentration Level of at least 20% and  less  than  35%,
13        the grant for any school year shall be $800 multiplied by
14        the low income eligible pupil count.
15             (b)  For  any  school  district  with  a  Low Income
16        Concentration Level of at least 35% and  less  than  50%,
17        the  grant  for the 1998-1999 school year shall be $1,100
18        multiplied by the low income eligible pupil count.
19             (c)  For any  school  district  with  a  Low  Income
20        Concentration  Level  of  at least 50% and less than 60%,
21        the grant for the 1998-99 school  year  shall  be  $1,500
22        multiplied by the low income eligible pupil count.
23             (d)  For  any  school  district  with  a  Low Income
24        Concentration Level of 60% or more,  the  grant  for  the
25        1998-99 school year shall be $1,900 multiplied by the low
26        income eligible pupil count.
27             (e)  For  the  1999-2000  school year, the per pupil
28        amount specified  in  subparagraphs  (b),  (c),  and  (d)
29        immediately  above  shall be increased to $1,243, $1,600,
30        and $2,000, respectively.
31             (f)  For the 2000-2001 school year,  the  per  pupil
32        amounts  specified  in  subparagraphs  (b),  (c), and (d)
33        immediately above shall be $1,273,  $1,640,  and  $2,050,
34        respectively.
 
                            -27-     LRB093 09151 SJM 09383 b
 1        (2.5)  Supplemental  general  State  aid pursuant to this
 2    subsection (H) shall be provided as follows for the 2002-2003
 3    school year and each school year thereafter:
 4             (a)  For any  school  district  with  a  Low  Income
 5        Concentration  Level of less than 10%, the grant for each
 6        school year shall be $355 multiplied by  the  low  income
 7        eligible pupil count.
 8             (b)  For  any  school  district  with  a  Low Income
 9        Concentration Level of at least 10% and  less  than  20%,
10        the  grant  for each school year shall be $675 multiplied
11        by the low income eligible pupil count.
12             (c)  For any  school  district  with  a  Low  Income
13        Concentration  Level  of  at least 20% and less than 35%,
14        the grant for each school year shall be $1,330 multiplied
15        by the low income eligible pupil count.
16             (d)  For any  school  district  with  a  Low  Income
17        Concentration  Level  of  at least 35% and less than 50%,
18        the grant for each school year shall be $1,362 multiplied
19        by the low income eligible pupil count.
20             (e)  For any  school  district  with  a  Low  Income
21        Concentration  Level  of  at least 50% and less than 60%,
22        the grant for each school year shall be $1,680 multiplied
23        by the low income eligible pupil count.
24             (f)  For any  school  district  with  a  Low  Income
25        Concentration  Level  of  60% or more, the grant for each
26        school year shall be $2,080 multiplied by the low  income
27        eligible pupil count.
28        (3)  School districts with an Average Daily Attendance of
29    more  than  1,000  and  less  than  50,000  that  qualify for
30    supplemental general State aid pursuant  to  this  subsection
31    shall  submit a plan to the State Board of Education prior to
32    October 30 of each year for the use of  the  funds  resulting
33    from  this  grant  of  supplemental general State aid for the
34    improvement of instruction in  which  priority  is  given  to
 
                            -28-     LRB093 09151 SJM 09383 b
 1    meeting  the education needs of disadvantaged children.  Such
 2    plan  shall  be  submitted  in  accordance  with  rules   and
 3    regulations promulgated by the State Board of Education.
 4        (4)  School districts with an Average Daily Attendance of
 5    50,000  or  more  that qualify for supplemental general State
 6    aid  pursuant  to  this  subsection  shall  be  required   to
 7    distribute  from funds available pursuant to this Section, no
 8    less than  $261,000,000  in  accordance  with  the  following
 9    requirements:
10             (a)  The  required  amounts  shall be distributed to
11        the attendance centers within the district in  proportion
12        to  the  number  of  pupils  enrolled  at each attendance
13        center who are eligible to receive free or  reduced-price
14        lunches  or  breakfasts under the federal Child Nutrition
15        Act of 1966 and  under  the  National  School  Lunch  Act
16        during the immediately preceding school year.
17             (b)  The   distribution   of   these   portions   of
18        supplemental  and  general  State  aid  among  attendance
19        centers  according  to  these  requirements  shall not be
20        compensated for or  contravened  by  adjustments  of  the
21        total  of  other  funds  appropriated  to  any attendance
22        centers, and the Board of Education shall utilize funding
23        from one or several sources in order to  fully  implement
24        this provision annually prior to the opening of school.
25             (c)  Each attendance center shall be provided by the
26        school  district  a  distribution of noncategorical funds
27        and other categorical funds to which an attendance center
28        is entitled under law in order that the general State aid
29        and  supplemental   general   State   aid   provided   by
30        application  of  this  subsection supplements rather than
31        supplants the noncategorical funds and other  categorical
32        funds  provided  by the school district to the attendance
33        centers.
34             (d)  Any funds made available under this  subsection
 
                            -29-     LRB093 09151 SJM 09383 b
 1        that  by  reason of the provisions of this subsection are
 2        not required to be allocated and provided  to  attendance
 3        centers  may be used and appropriated by the board of the
 4        district for any lawful school purpose.
 5             (e)  Funds received by an attendance center pursuant
 6        to this subsection shall be used by the attendance center
 7        at the discretion  of  the  principal  and  local  school
 8        council for programs to improve educational opportunities
 9        at  qualifying schools through the following programs and
10        services: early childhood education, reduced  class  size
11        or  improved adult to student classroom ratio, enrichment
12        programs, remedial  assistance,  attendance  improvement,
13        and  other  educationally  beneficial  expenditures which
14        supplement the regular and basic programs  as  determined
15        by the State Board of Education. Funds provided shall not
16        be  expended  for  any  political or lobbying purposes as
17        defined by board rule.
18             (f)  Each district subject to the provisions of this
19        subdivision (H)(4) shall submit  an  acceptable  plan  to
20        meet  the educational needs of disadvantaged children, in
21        compliance with the requirements of  this  paragraph,  to
22        the  State  Board  of  Education prior to July 15 of each
23        year. This plan shall be consistent with the decisions of
24        local school councils concerning the  school  expenditure
25        plans  developed  in  accordance  with  part 4 of Section
26        34-2.3.  The State Board shall approve or reject the plan
27        within 60 days after its  submission.   If  the  plan  is
28        rejected,  the  district  shall  give  written  notice of
29        intent  to  modify  the  plan  within  15  days  of   the
30        notification of rejection and then submit a modified plan
31        within  30  days  after the date of the written notice of
32        intent to modify.  Districts  may  amend  approved  plans
33        pursuant  to  rules  promulgated  by  the  State Board of
34        Education.
 
                            -30-     LRB093 09151 SJM 09383 b
 1             Upon notification by the State  Board  of  Education
 2        that  the district has not submitted a plan prior to July
 3        15 or a modified plan within the  time  period  specified
 4        herein,  the  State  aid  funds  affected by that plan or
 5        modified plan shall be withheld by  the  State  Board  of
 6        Education until a plan or modified plan is submitted.
 7             If  the  district  fails  to distribute State aid to
 8        attendance centers in accordance with an  approved  plan,
 9        the  plan for the following year shall allocate funds, in
10        addition  to  the  funds  otherwise  required   by   this
11        subsection,   to  those  attendance  centers  which  were
12        underfunded during the previous year in amounts equal  to
13        such underfunding.
14             For  purposes  of  determining  compliance with this
15        subsection in relation to the requirements of  attendance
16        center  funding,  each district subject to the provisions
17        of this subsection shall submit as a separate document by
18        December 1 of each year a report of expenditure data  for
19        the  prior  year  in  addition to any modification of its
20        current plan.  If it is determined that there has been  a
21        failure to comply with the expenditure provisions of this
22        subsection  regarding  contravention  or supplanting, the
23        State Superintendent of Education shall, within  60  days
24        of  receipt  of  the  report, notify the district and any
25        affected local school council.  The district shall within
26        45 days of receipt of that notification inform the  State
27        Superintendent of Education of the remedial or corrective
28        action  to be taken, whether  by amendment of the current
29        plan, if feasible, or by adjustment in the plan  for  the
30        following  year.   Failure  to  provide  the  expenditure
31        report  or  the  notification  of  remedial or corrective
32        action in a timely manner shall result in  a  withholding
33        of the affected funds.
34             The  State Board of Education shall promulgate rules
 
                            -31-     LRB093 09151 SJM 09383 b
 1        and regulations  to  implement  the  provisions  of  this
 2        subsection.   No  funds  shall  be  released  under  this
 3        subdivision (H)(4) to any district that has not submitted
 4        a  plan  that  has  been  approved  by the State Board of
 5        Education.

 6    (I)  General State Aid for Newly Configured School Districts.
 7        (1)  For  a  new  school  district  formed  by  combining
 8    property  included  totally  within  2  or  more   previously
 9    existing  school  districts,  for its first year of existence
10    the general State aid  and  supplemental  general  State  aid
11    calculated  under  this Section shall be computed for the new
12    district and for the previously existing districts for  which
13    property is totally included within the new district.  If the
14    computation on the basis of the previously existing districts
15    is  greater,  a supplementary payment equal to the difference
16    shall be made for the first 4 years of existence of  the  new
17    district.
18        (2)  For  a  school  district  which  annexes  all of the
19    territory of one or more entire other school  districts,  for
20    the   first  year  during  which  the  change  of  boundaries
21    attributable to such annexation  becomes  effective  for  all
22    purposes as determined under Section 7-9 or 7A-8, the general
23    State aid and supplemental general State aid calculated under
24    this  Section  shall be computed for the annexing district as
25    constituted after the annexation and  for  the  annexing  and
26    each annexed district as constituted prior to the annexation;
27    and  if  the  computation  on  the  basis of the annexing and
28    annexed districts as constituted prior to the  annexation  is
29    greater,  a  supplementary  payment  equal  to the difference
30    shall be made for the first  4  years  of  existence  of  the
31    annexing school district as constituted upon such annexation.
32        (3)  For  2  or  more school districts which annex all of
33    the territory of one or more entire other  school  districts,
34    and  for 2 or more community unit districts which result upon
 
                            -32-     LRB093 09151 SJM 09383 b
 1    the division (pursuant to petition under  Section  11A-2)  of
 2    one  or more other unit school districts into 2 or more parts
 3    and which together include all of the parts into  which  such
 4    other  unit  school district or districts are so divided, for
 5    the  first  year  during  which  the  change  of   boundaries
 6    attributable to such annexation or division becomes effective
 7    for  all  purposes as determined under Section 7-9 or 11A-10,
 8    as the case may be, the general State  aid  and  supplemental
 9    general  State  aid  calculated  under  this Section shall be
10    computed  for  each  annexing  or   resulting   district   as
11    constituted  after  the  annexation  or division and for each
12    annexing and annexed district,  or  for  each  resulting  and
13    divided  district,  as constituted prior to the annexation or
14    division; and if the aggregate of the general State  aid  and
15    supplemental  general  State  aid  as  so  computed  for  the
16    annexing  or  resulting  districts  as  constituted after the
17    annexation or division is less  than  the  aggregate  of  the
18    general  State  aid  and supplemental general State aid as so
19    computed for the annexing and annexed districts, or  for  the
20    resulting  and divided districts, as constituted prior to the
21    annexation or division, then a supplementary payment equal to
22    the difference shall be made and allocated between  or  among
23    the annexing or resulting districts, as constituted upon such
24    annexation  or  division,  for  the  first  4  years of their
25    existence.  The total difference payment shall  be  allocated
26    between  or  among the annexing or resulting districts in the
27    same ratio as the pupil enrollment from that portion  of  the
28    annexed  or divided district or districts which is annexed to
29    or included in each such annexing or resulting district bears
30    to the total pupil enrollment  from  the  entire  annexed  or
31    divided  district  or  districts, as such pupil enrollment is
32    determined for the school year last ending prior to the  date
33    when  the change of boundaries attributable to the annexation
34    or division becomes effective for all purposes.   The  amount
 
                            -33-     LRB093 09151 SJM 09383 b
 1    of  the total difference payment and the amount thereof to be
 2    allocated to the annexing or  resulting  districts  shall  be
 3    computed  by  the  State  Board  of Education on the basis of
 4    pupil enrollment and other data which shall be  certified  to
 5    the State Board of Education, on forms which it shall provide
 6    for  that  purpose, by the regional superintendent of schools
 7    for each educational service region in which the annexing and
 8    annexed districts, or resulting  and  divided  districts  are
 9    located.
10        (3.5)  Claims   for   financial   assistance  under  this
11    subsection (I) shall not be recomputed  except  as  expressly
12    provided under this Section.
13        (4)  Any supplementary payment made under this subsection
14    (I) shall be treated as separate from all other payments made
15    pursuant to this Section.

16    (J)  Supplementary Grants in Aid.
17        (1)  Notwithstanding   any   other   provisions  of  this
18    Section, the amount of the aggregate  general  State  aid  in
19    combination  with  supplemental  general State aid under this
20    Section for which each school district is eligible  shall  be
21    no  less  than  the amount of the aggregate general State aid
22    entitlement that was received by the district  under  Section
23    18-8  (exclusive  of  amounts received under subsections 5(p)
24    and 5(p-5) of that Section)  for  the  1997-98  school  year,
25    pursuant  to the provisions of that Section as it was then in
26    effect.  If  a  school  district  qualifies  to   receive   a
27    supplementary  payment  made  under  this subsection (J), the
28    amount of the aggregate general State aid in combination with
29    supplemental general State aid under this Section which  that
30    district is eligible to receive for each school year shall be
31    no  less  than  the amount of the aggregate general State aid
32    entitlement that was received by the district  under  Section
33    18-8  (exclusive  of  amounts received under subsections 5(p)
34    and 5(p-5) of that Section) for the  1997-1998  school  year,
 
                            -34-     LRB093 09151 SJM 09383 b
 1    pursuant  to the provisions of that Section as it was then in
 2    effect.
 3        (2)  If, as provided in paragraph (1) of this  subsection
 4    (J),  a school district is to receive aggregate general State
 5    aid in combination with supplemental general State aid  under
 6    this  Section  for the 1998-99 school year and any subsequent
 7    school year that in any such school year  is  less  than  the
 8    amount  of  the  aggregate general State aid entitlement that
 9    the district received for the 1997-98 school year, the school
10    district shall also receive, from  a  separate  appropriation
11    made  for  purposes  of  this subsection (J), a supplementary
12    payment that is equal to the amount of the difference in  the
13    aggregate State aid figures as described in paragraph (1).
14        (3)  (Blank).

15    (K)  Grants to Laboratory and Alternative Schools.
16        In  calculating  the  amount  to be paid to the governing
17    board of a  public  university  that  operates  a  laboratory
18    school  under  this Section or to any alternative school that
19    is operated by a  regional  superintendent  of  schools,  the
20    State Board of Education shall require by rule such reporting
21    requirements as it deems necessary.
22        As  used  in  this  Section,  "laboratory school" means a
23    public school which is  created  and  operated  by  a  public
24    university and approved by the State Board of Education.  The
25    governing  board  of a public university which receives funds
26    from the State  Board  under  this  subsection  (K)  may  not
27    increase  the  number  of students enrolled in its laboratory
28    school from a single district, if that  district  is  already
29    sending  50 or more students, except under a mutual agreement
30    between the school board of a student's district of residence
31    and the university which operates the laboratory  school.   A
32    laboratory  school  may  not  have  more than 1,000 students,
33    excluding students with disabilities in a  special  education
34    program.
 
                            -35-     LRB093 09151 SJM 09383 b
 1        As  used  in  this  Section, "alternative school" means a
 2    public school which is created and  operated  by  a  Regional
 3    Superintendent  of Schools and approved by the State Board of
 4    Education.  Such alternative schools  may  offer  courses  of
 5    instruction  for  which  credit  is  given  in regular school
 6    programs, courses to prepare students  for  the  high  school
 7    equivalency  testing  program  or vocational and occupational
 8    training.   A regional superintendent of schools may contract
 9    with a school district or a public community college district
10    to operate an  alternative  school.   An  alternative  school
11    serving  more  than  one  educational  service  region may be
12    established by the regional superintendents of schools of the
13    affected educational service regions.  An alternative  school
14    serving  more  than  one  educational  service  region may be
15    operated under such terms as the regional superintendents  of
16    schools of those educational service regions may agree.
17        Each  laboratory  and  alternative  school shall file, on
18    forms provided by the State Superintendent of  Education,  an
19    annual  State  aid  claim  which  states  the  Average  Daily
20    Attendance  of  the  school's  students by month.  The best 3
21    months' Average Daily Attendance shall be computed  for  each
22    school.  The  general State aid entitlement shall be computed
23    by multiplying the applicable Average Daily Attendance by the
24    Foundation Level as determined under this Section.

25    (L)  Payments,   Additional   Grants   in   Aid   and   Other
26    Requirements.
27        (1)  For a school district operating under the  financial
28    supervision  of  an  Authority created under Article 34A, the
29    general State aid otherwise payable to  that  district  under
30    this  Section,  but  not  the supplemental general State aid,
31    shall be reduced by an amount equal to  the  budget  for  the
32    operations  of the Authority as certified by the Authority to
33    the State Board of Education, and an  amount  equal  to  such
34    reduction  shall  be  paid  to the Authority created for such
 
                            -36-     LRB093 09151 SJM 09383 b
 1    district for its operating expenses in the manner provided in
 2    Section 18-11.  The remainder of general State school aid for
 3    any such district shall be paid in  accordance  with  Article
 4    34A  when  that Article provides for a disposition other than
 5    that provided by this Article.
 6        (2)  (Blank).
 7        (3)  Summer school.  Summer school payments shall be made
 8    as provided in Section 18-4.3.

 9    (M)  Education Funding Advisory Board.
10        The Education Funding Advisory Board, hereinafter in this
11    subsection (M) referred to as the "Board", is hereby created.
12    The Board shall consist of 5 members who are appointed by the
13    Governor, by and with the advice and consent of  the  Senate.
14    The   members  appointed  shall  include  representatives  of
15    education, business, and  the  general  public.  One  of  the
16    members  so  appointed shall be designated by the Governor at
17    the time the appointment is made as the  chairperson  of  the
18    Board.  The initial members of the Board may be appointed any
19    time after the effective date of this amendatory Act of 1997.
20    The regular term of each member of the Board shall be  for  4
21    years  from  the third Monday of January of the year in which
22    the term of the member's appointment is to  commence,  except
23    that  of  the  5  initial  members  appointed to serve on the
24    Board, the member who is appointed as the  chairperson  shall
25    serve  for  a  term  that commences on the date of his or her
26    appointment and expires on the third Monday of January, 2002,
27    and the remaining 4 members,  by  lots  drawn  at  the  first
28    meeting  of  the  Board  that is held after all 5 members are
29    appointed, shall determine 2 of their  number  to  serve  for
30    terms   that   commence  on  the  date  of  their  respective
31    appointments and expire on the third Monday of January, 2001,
32    and 2 of their number to serve for terms that commence on the
33    date of their respective appointments and expire on the third
34    Monday of January, 2000.  All members appointed to  serve  on
 
                            -37-     LRB093 09151 SJM 09383 b
 1    the  Board  shall serve until their respective successors are
 2    appointed and confirmed.  Vacancies shall be  filled  in  the
 3    same  manner  as  original  appointments.   If  a  vacancy in
 4    membership occurs at  a  time  when  the  Senate  is  not  in
 5    session,  the  Governor  shall  make  a temporary appointment
 6    until the next meeting of the Senate, when he  or  she  shall
 7    appoint,  by and with the advice and consent of the Senate, a
 8    person to fill that membership for the  unexpired  term.   If
 9    the  Senate  is  not in session when the initial appointments
10    are made, those appointments shall be made as in the case  of
11    vacancies.
12        The  Education  Funding  Advisory  Board  shall be deemed
13    established,  and  the  initial  members  appointed  by   the
14    Governor  to serve as members of the Board shall take office,
15    on the date that the Governor makes his or her appointment of
16    the fifth initial member of the Board, whether those  initial
17    members   are   then  serving  pursuant  to  appointment  and
18    confirmation or pursuant to temporary appointments  that  are
19    made by the Governor as in the case of vacancies.
20        The  State  Board  of  Education shall provide such staff
21    assistance to the Education  Funding  Advisory  Board  as  is
22    reasonably  required  for the proper performance by the Board
23    of its responsibilities.
24        For school years after the  2000-2001  school  year,  the
25    Education  Funding  Advisory  Board, in consultation with the
26    State Board  of  Education,  shall  make  recommendations  as
27    provided  in  this subsection (M) to the General Assembly for
28    the foundation level under subdivision (B)(3) of this Section
29    and for the supplemental general State aid grant level  under
30    subsection  (H)  of  this  Section  for  districts  with high
31    concentrations of children  from  poverty.   The  recommended
32    foundation  level  shall be determined based on a methodology
33    which  incorporates  the  basic  education  expenditures   of
34    low-spending  schools  exhibiting  high academic performance.
 
                            -38-     LRB093 09151 SJM 09383 b
 1    The  Education  Funding  Advisory  Board  shall   make   such
 2    recommendations  to  the General Assembly on January 1 of odd
 3    numbered years, beginning January 1, 2001.

 4    (N)  (Blank).

 5    (O)  References.
 6        (1)  References in other laws to the various subdivisions
 7    of Section 18-8 as that Section existed before its repeal and
 8    replacement by this Section 18-8.05 shall be deemed to  refer
 9    to  the  corresponding provisions of this Section 18-8.05, to
10    the extent that those references remain applicable.
11        (2)  References in other laws to State  Chapter  1  funds
12    shall  be  deemed  to refer to the supplemental general State
13    aid provided under subsection (H) of this Section.
14    (Source: P.A. 91-24, eff. 7-1-99; 91-93, eff. 7-9-99;  91-96,
15    eff.  7-9-99;  91-111,  eff.  7-14-99;  91-357, eff. 7-29-99;
16    91-533,  eff.  8-13-99;  92-7,  eff.  6-29-01;  92-16,   eff.
17    6-28-01; 92-28, eff. 7-1-01; 92-29, eff. 7-1-01; 92-269, eff.
18    8-7-01;  92-604,  eff.  7-1-02; 92-636, eff. 7-11-02; 92-651,
19    eff. 7-11-02; revised 7-26-02.)

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