94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1484

 

Introduced 2/23/2005, by Sen. Richard J. Winkel, Jr.

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Finance Act. Creates the School District Property Tax Relief Fund. Requires the General Assembly, in FY06, to appropriate $3.5 billion from the education appropriation minimum to the School District Property Tax Relief Fund and to appropriate additional amounts each fiscal year thereafter. Requires the Department of Revenue to annually determine and certify the total amount of property tax relief grants that each school district will receive from the Fund. Sets forth procedures for appropriating these grants. Creates the Higher Education Operating Assistance Fund for the purpose of making grants to colleges and universities. Requires the General Assembly to annually appropriate $500 million to the Fund. Sets forth requirements for appropriating and using moneys from the Fund. Amends the Illinois Income Tax Act. Provides that for taxable years beginning after January 1, 2005, the rate of income tax for individuals, trusts, and estates is increased from 3% to 5% of the taxpayer's net income and the rate of income tax for corporations is increased from 4.8% to 8% of the taxpayer's net income. Provides that the amount of net revenues attributable to those increases shall not be used to calculate the amount transferred into the Local Governmental Distributive Fund. Beginning July 1, 2005, requires 100% of the amount attributable to the income tax increases be deposited into the Education Assistance Fund. Amends the Property Tax Code. Requires the county clerk to abate the extension for educational purposes for each school district in the county by the amount of the property tax relief grants received by each of those school districts. Amends the School Code. In the State aid formula provisions, increases the foundation level of support and grant amount for supplemental general State aid. Changes the distribution of moneys from the Education Assistance Fund. Establishes the Education Assistance Fund Board to make biennial recommendations to the General Assembly concerning appropriations from the Education Assistance Fund. Amends the Public Community College Act. Establishes supplemental base operating grants for all community college districts. Effective immediately.


LRB094 10846 MKM 41371 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1484 LRB094 10846 MKM 41371 b

1     AN ACT concerning education.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Finance Act is amended by changing
5 Section 8h and by adding Sections 5.640, 5.645, 6z-68, and
6 6z-69 as follows:
 
7     (30 ILCS 105/5.640 new)
8     Sec. 5.640. The Higher Education Operating Assistance
9 Fund.
 
10     (30 ILCS 105/5.645 new)
11     Sec. 5.645. The School District Property Tax Relief Fund.
 
12     (30 ILCS 105/6z-68 new)
13     Sec. 6z-68. School District Property Tax Relief Fund.
14     (a) The School District Property Tax Relief Fund is created
15 as a special Fund in the State treasury. All interest earned on
16 moneys in the Fund shall be deposited into the Fund.
17     (b) As used in this Section:
18     "Department" means the Department of Revenue.
19     "School district" means elementary, high school, unit, and
20 community college districts that levy property taxes.
21     "Property tax relief grant" means the amount of property
22 tax relief that will be distributed to each school district
23 from the School District Property Tax Relief Fund in each
24 fiscal year.
25     (c) Beginning in fiscal year 2006, the General Assembly
26 shall appropriate $3.5 billion from the Education Assistance
27 Fund to the School District Property Tax Relief Fund. In each
28 fiscal year thereafter, the General Assembly shall appropriate
29 an amount from the Education Assistance Fund to the School
30 District Property Tax Relief Fund equal to the amount

 

 

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1 appropriated to the School District Property Tax Relief Fund in
2 the immediately preceding fiscal year, increased by the
3 percentage increase in the Consumer Price Index for All Urban
4 Consumers published by the U.S. Bureau of Labor Statistics for
5 the immediately preceding fiscal year.
6     (d) Beginning in 2005 and for every year thereafter, the
7 Department must certify, no earlier than November 15 and no
8 later than November 17, the total amount of property tax relief
9 each school district will receive from the School District
10 Property Tax Relief Fund. The relief shall be determined as
11 follows:
12         In each fiscal year commencing with fiscal year 2006,
13     the General Assembly shall appropriate the total amount
14     appropriated to the School District Property Tax Relief
15     Fund for that fiscal year to fund the aggregate amount of
16     property tax relief grants that will be distributed to all
17     school districts. The Department then shall calculate the
18     amount of property tax relief grant to be distributed to
19     each school district in each fiscal year as follows:
20             (A) for fiscal year 2006, each school district
21         shall receive a property tax relief grant in an amount
22         equal to one-third of the total property taxes levied
23         for that school district in tax year 2001 (payable in
24         2002); and
25             (B) for each fiscal year thereafter, the property
26         tax relief grant for each school district must be
27         increased by the percentage increase, if any, in the
28         Consumer Price Index For All Urban Consumers published
29         for the prior fiscal year.
 
30     (30 ILCS 105/6z-69 new)
31     Sec. 6z-69. Higher Education Operating Assistance Fund.
32     (a) The Higher Education Operating Assistance Fund is
33 created as a special fund in the State treasury. Moneys in the
34 Fund may be used only for the purposes set forth in this
35 Section. All interest earned on moneys in the Fund must be

 

 

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1 deposited into the Fund.
2     (b) Each fiscal year, beginning in fiscal year 2006, the
3 General Assembly must appropriate $500,000,000 from the
4 Education Assistance Fund to the Higher Education Operating
5 Assistance Fund.
6     (c) In each fiscal year, beginning in fiscal year 2006, if
7 the amount appropriated for higher education purposes equals or
8 exceeds the total appropriation for higher education purposes
9 from the prior fiscal year multiplied by the percentage of
10 increase, in the previous calendar year, of the Consumer Price
11 Index for all Urban Consumers published by the federal Bureau
12 of Labor Statistics ("CPI"), then both of the following apply:
13         (1) The General Assembly must appropriate 80% of the
14     moneys in the Higher Education Operating Assistance Fund to
15     the Board of Higher Education for grants to State
16     universities for their ordinary and contingent expenses.
17     The grants under this item (1) must be distributed to each
18     State university based upon each university's full time
19     equivalent head count.
20         (2) The General Assembly must appropriate 20% of the
21     moneys in the Higher Education Operating Assistance Fund to
22     the Illinois Community College Board for grants to
23     community colleges for their ordinary and contingent
24     expenses. The grants under this item (2) must be
25     distributed as supplemental base operating grants under
26     Section 2-16.02 of the Public Community College Act.
27     If, however, the amount appropriated for higher education
28 purposes is less than the amount of the total appropriation for
29 higher education purposes from the prior fiscal year as
30 adjusted by the percentage increase in CPI, then no moneys may
31 be appropriated from the Higher Education Operating Assistance
32 Fund for that fiscal year for any purpose.
33     For purposes of this subsection (c), the term "amount
34 appropriated for higher education purposes" does not include
35 any amount appropriated from the Higher Education Operating
36 Assistance Fund.
 

 

 

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1     (30 ILCS 105/8h)
2     Sec. 8h. Transfers to General Revenue Fund.
3     (a) Except as provided in subsection (b), notwithstanding
4 any other State law to the contrary, the Governor may, through
5 June 30, 2007, from time to time direct the State Treasurer and
6 Comptroller to transfer a specified sum from any fund held by
7 the State Treasurer to the General Revenue Fund in order to
8 help defray the State's operating costs for the fiscal year.
9 The total transfer under this Section from any fund in any
10 fiscal year shall not exceed the lesser of (i) 8% of the
11 revenues to be deposited into the fund during that fiscal year
12 or (ii) an amount that leaves a remaining fund balance of 25%
13 of the July 1 fund balance of that fiscal year. In fiscal year
14 2005 only, prior to calculating the July 1, 2004 final
15 balances, the Governor may calculate and direct the State
16 Treasurer with the Comptroller to transfer additional amounts
17 determined by applying the formula authorized in Public Act
18 93-839 to the funds balances on July 1, 2003. No transfer may
19 be made from a fund under this Section that would have the
20 effect of reducing the available balance in the fund to an
21 amount less than the amount remaining unexpended and unreserved
22 from the total appropriation from that fund estimated to be
23 expended for that fiscal year. This Section does not apply to
24 any funds that are restricted by federal law to a specific use,
25 to any funds in the Motor Fuel Tax Fund, the Hospital Provider
26 Fund, the Medicaid Provider Relief Fund, the Education
27 Assistance Fund, the School District Property Tax Relief Fund,
28 the Higher Education Operating Assistance Fund, or the
29 Reviewing Court Alternative Dispute Resolution Fund, or to any
30 funds to which subsection (f) of Section 20-40 of the Nursing
31 and Advanced Practice Nursing Act applies. Notwithstanding any
32 other provision of this Section, for fiscal year 2004, the
33 total transfer under this Section from the Road Fund or the
34 State Construction Account Fund shall not exceed the lesser of
35 (i) 5% of the revenues to be deposited into the fund during

 

 

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1 that fiscal year or (ii) 25% of the beginning balance in the
2 fund. For fiscal year 2005 through fiscal year 2007, no amounts
3 may be transferred under this Section from the Road Fund, the
4 State Construction Account Fund, the Criminal Justice
5 Information Systems Trust Fund, the Wireless Service Emergency
6 Fund, or the Mandatory Arbitration Fund.
7     In determining the available balance in a fund, the
8 Governor may include receipts, transfers into the fund, and
9 other resources anticipated to be available in the fund in that
10 fiscal year.
11     The State Treasurer and Comptroller shall transfer the
12 amounts designated under this Section as soon as may be
13 practicable after receiving the direction to transfer from the
14 Governor.
15     (b) This Section does not apply to any fund established
16 under the Community Senior Services and Resources Act.
17 (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674,
18 eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04;
19 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff.
20 1-15-05.)
 
21     Section 10. The Illinois Income Tax Act is amended by
22 changing Sections 201 and 901 as follows:
 
23     (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
24     Sec. 201. Tax Imposed.
25     (a) In general. A tax measured by net income is hereby
26 imposed on every individual, corporation, trust and estate for
27 each taxable year ending after July 31, 1969 on the privilege
28 of earning or receiving income in or as a resident of this
29 State. Such tax shall be in addition to all other occupation or
30 privilege taxes imposed by this State or by any municipal
31 corporation or political subdivision thereof.
32     (b) Rates. The tax imposed by subsection (a) of this
33 Section shall be determined as follows, except as adjusted by
34 subsection (d-1):

 

 

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1         (1) In the case of an individual, trust or estate, for
2     taxable years ending prior to July 1, 1989, an amount equal
3     to 2 1/2% of the taxpayer's net income for the taxable
4     year.
5         (2) In the case of an individual, trust or estate, for
6     taxable years beginning prior to July 1, 1989 and ending
7     after June 30, 1989, an amount equal to the sum of (i) 2
8     1/2% of the taxpayer's net income for the period prior to
9     July 1, 1989, as calculated under Section 202.3, and (ii)
10     3% of the taxpayer's net income for the period after June
11     30, 1989, as calculated under Section 202.3.
12         (3) In the case of an individual, trust or estate, for
13     taxable years beginning after June 30, 1989 and beginning
14     on or before January 1, 2005, an amount equal to 3% of the
15     taxpayer's net income for the taxable year.
16         (4) In the case of an individual, trust or estate, for
17     taxable years beginning after January 1, 2005, an amount
18     equal to 5% of the taxpayer's net income for the taxable
19     year (Blank).
20         (5) (Blank).
21         (6) In the case of a corporation, for taxable years
22     ending prior to July 1, 1989, an amount equal to 4% of the
23     taxpayer's net income for the taxable year.
24         (7) In the case of a corporation, for taxable years
25     beginning prior to July 1, 1989 and ending after June 30,
26     1989, an amount equal to the sum of (i) 4% of the
27     taxpayer's net income for the period prior to July 1, 1989,
28     as calculated under Section 202.3, and (ii) 4.8% of the
29     taxpayer's net income for the period after June 30, 1989,
30     as calculated under Section 202.3.
31         (8) In the case of a corporation, for taxable years
32     beginning after June 30, 1989 and beginning on or before
33     January 1, 2005, an amount equal to 4.8% of the taxpayer's
34     net income for the taxable year.
35         (9) In the case of a corporation, for taxable years
36     beginning after January 1, 2005, an amount equal to 8% of

 

 

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1     the taxpayer's net income for the taxable year.
2     (c) Personal Property Tax Replacement Income Tax.
3 Beginning on July 1, 1979 and thereafter, in addition to such
4 income tax, there is also hereby imposed the Personal Property
5 Tax Replacement Income Tax measured by net income on every
6 corporation (including Subchapter S corporations), partnership
7 and trust, for each taxable year ending after June 30, 1979.
8 Such taxes are imposed on the privilege of earning or receiving
9 income in or as a resident of this State. The Personal Property
10 Tax Replacement Income Tax shall be in addition to the income
11 tax imposed by subsections (a) and (b) of this Section and in
12 addition to all other occupation or privilege taxes imposed by
13 this State or by any municipal corporation or political
14 subdivision thereof.
15     (d) Additional Personal Property Tax Replacement Income
16 Tax Rates. The personal property tax replacement income tax
17 imposed by this subsection and subsection (c) of this Section
18 in the case of a corporation, other than a Subchapter S
19 corporation and except as adjusted by subsection (d-1), shall
20 be an additional amount equal to 2.85% of such taxpayer's net
21 income for the taxable year, except that beginning on January
22 1, 1981, and thereafter, the rate of 2.85% specified in this
23 subsection shall be reduced to 2.5%, and in the case of a
24 partnership, trust or a Subchapter S corporation shall be an
25 additional amount equal to 1.5% of such taxpayer's net income
26 for the taxable year.
27     (d-1) Rate reduction for certain foreign insurers. In the
28 case of a foreign insurer, as defined by Section 35A-5 of the
29 Illinois Insurance Code, whose state or country of domicile
30 imposes on insurers domiciled in Illinois a retaliatory tax
31 (excluding any insurer whose premiums from reinsurance assumed
32 are 50% or more of its total insurance premiums as determined
33 under paragraph (2) of subsection (b) of Section 304, except
34 that for purposes of this determination premiums from
35 reinsurance do not include premiums from inter-affiliate
36 reinsurance arrangements), beginning with taxable years ending

 

 

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1 on or after December 31, 1999, the sum of the rates of tax
2 imposed by subsections (b) and (d) shall be reduced (but not
3 increased) to the rate at which the total amount of tax imposed
4 under this Act, net of all credits allowed under this Act,
5 shall equal (i) the total amount of tax that would be imposed
6 on the foreign insurer's net income allocable to Illinois for
7 the taxable year by such foreign insurer's state or country of
8 domicile if that net income were subject to all income taxes
9 and taxes measured by net income imposed by such foreign
10 insurer's state or country of domicile, net of all credits
11 allowed or (ii) a rate of zero if no such tax is imposed on such
12 income by the foreign insurer's state of domicile. For the
13 purposes of this subsection (d-1), an inter-affiliate includes
14 a mutual insurer under common management.
15         (1) For the purposes of subsection (d-1), in no event
16     shall the sum of the rates of tax imposed by subsections
17     (b) and (d) be reduced below the rate at which the sum of:
18             (A) the total amount of tax imposed on such foreign
19         insurer under this Act for a taxable year, net of all
20         credits allowed under this Act, plus
21             (B) the privilege tax imposed by Section 409 of the
22         Illinois Insurance Code, the fire insurance company
23         tax imposed by Section 12 of the Fire Investigation
24         Act, and the fire department taxes imposed under
25         Section 11-10-1 of the Illinois Municipal Code,
26     equals 1.25% for taxable years ending prior to December 31,
27     2003, or 1.75% for taxable years ending on or after
28     December 31, 2003, of the net taxable premiums written for
29     the taxable year, as described by subsection (1) of Section
30     409 of the Illinois Insurance Code. This paragraph will in
31     no event increase the rates imposed under subsections (b)
32     and (d).
33         (2) Any reduction in the rates of tax imposed by this
34     subsection shall be applied first against the rates imposed
35     by subsection (b) and only after the tax imposed by
36     subsection (a) net of all credits allowed under this

 

 

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1     Section other than the credit allowed under subsection (i)
2     has been reduced to zero, against the rates imposed by
3     subsection (d).
4     This subsection (d-1) is exempt from the provisions of
5 Section 250.
6     (e) Investment credit. A taxpayer shall be allowed a credit
7 against the Personal Property Tax Replacement Income Tax for
8 investment in qualified property.
9         (1) A taxpayer shall be allowed a credit equal to .5%
10     of the basis of qualified property placed in service during
11     the taxable year, provided such property is placed in
12     service on or after July 1, 1984. There shall be allowed an
13     additional credit equal to .5% of the basis of qualified
14     property placed in service during the taxable year,
15     provided such property is placed in service on or after
16     July 1, 1986, and the taxpayer's base employment within
17     Illinois has increased by 1% or more over the preceding
18     year as determined by the taxpayer's employment records
19     filed with the Illinois Department of Employment Security.
20     Taxpayers who are new to Illinois shall be deemed to have
21     met the 1% growth in base employment for the first year in
22     which they file employment records with the Illinois
23     Department of Employment Security. The provisions added to
24     this Section by Public Act 85-1200 (and restored by Public
25     Act 87-895) shall be construed as declaratory of existing
26     law and not as a new enactment. If, in any year, the
27     increase in base employment within Illinois over the
28     preceding year is less than 1%, the additional credit shall
29     be limited to that percentage times a fraction, the
30     numerator of which is .5% and the denominator of which is
31     1%, but shall not exceed .5%. The investment credit shall
32     not be allowed to the extent that it would reduce a
33     taxpayer's liability in any tax year below zero, nor may
34     any credit for qualified property be allowed for any year
35     other than the year in which the property was placed in
36     service in Illinois. For tax years ending on or after

 

 

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1     December 31, 1987, and on or before December 31, 1988, the
2     credit shall be allowed for the tax year in which the
3     property is placed in service, or, if the amount of the
4     credit exceeds the tax liability for that year, whether it
5     exceeds the original liability or the liability as later
6     amended, such excess may be carried forward and applied to
7     the tax liability of the 5 taxable years following the
8     excess credit years if the taxpayer (i) makes investments
9     which cause the creation of a minimum of 2,000 full-time
10     equivalent jobs in Illinois, (ii) is located in an
11     enterprise zone established pursuant to the Illinois
12     Enterprise Zone Act and (iii) is certified by the
13     Department of Commerce and Community Affairs (now
14     Department of Commerce and Economic Opportunity) as
15     complying with the requirements specified in clause (i) and
16     (ii) by July 1, 1986. The Department of Commerce and
17     Community Affairs (now Department of Commerce and Economic
18     Opportunity) shall notify the Department of Revenue of all
19     such certifications immediately. For tax years ending
20     after December 31, 1988, the credit shall be allowed for
21     the tax year in which the property is placed in service,
22     or, if the amount of the credit exceeds the tax liability
23     for that year, whether it exceeds the original liability or
24     the liability as later amended, such excess may be carried
25     forward and applied to the tax liability of the 5 taxable
26     years following the excess credit years. The credit shall
27     be applied to the earliest year for which there is a
28     liability. If there is credit from more than one tax year
29     that is available to offset a liability, earlier credit
30     shall be applied first.
31         (2) The term "qualified property" means property
32     which:
33             (A) is tangible, whether new or used, including
34         buildings and structural components of buildings and
35         signs that are real property, but not including land or
36         improvements to real property that are not a structural

 

 

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1         component of a building such as landscaping, sewer
2         lines, local access roads, fencing, parking lots, and
3         other appurtenances;
4             (B) is depreciable pursuant to Section 167 of the
5         Internal Revenue Code, except that "3-year property"
6         as defined in Section 168(c)(2)(A) of that Code is not
7         eligible for the credit provided by this subsection
8         (e);
9             (C) is acquired by purchase as defined in Section
10         179(d) of the Internal Revenue Code;
11             (D) is used in Illinois by a taxpayer who is
12         primarily engaged in manufacturing, or in mining coal
13         or fluorite, or in retailing; and
14             (E) has not previously been used in Illinois in
15         such a manner and by such a person as would qualify for
16         the credit provided by this subsection (e) or
17         subsection (f).
18         (3) For purposes of this subsection (e),
19     "manufacturing" means the material staging and production
20     of tangible personal property by procedures commonly
21     regarded as manufacturing, processing, fabrication, or
22     assembling which changes some existing material into new
23     shapes, new qualities, or new combinations. For purposes of
24     this subsection (e) the term "mining" shall have the same
25     meaning as the term "mining" in Section 613(c) of the
26     Internal Revenue Code. For purposes of this subsection (e),
27     the term "retailing" means the sale of tangible personal
28     property or services rendered in conjunction with the sale
29     of tangible consumer goods or commodities.
30         (4) The basis of qualified property shall be the basis
31     used to compute the depreciation deduction for federal
32     income tax purposes.
33         (5) If the basis of the property for federal income tax
34     depreciation purposes is increased after it has been placed
35     in service in Illinois by the taxpayer, the amount of such
36     increase shall be deemed property placed in service on the

 

 

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1     date of such increase in basis.
2         (6) The term "placed in service" shall have the same
3     meaning as under Section 46 of the Internal Revenue Code.
4         (7) If during any taxable year, any property ceases to
5     be qualified property in the hands of the taxpayer within
6     48 months after being placed in service, or the situs of
7     any qualified property is moved outside Illinois within 48
8     months after being placed in service, the Personal Property
9     Tax Replacement Income Tax for such taxable year shall be
10     increased. Such increase shall be determined by (i)
11     recomputing the investment credit which would have been
12     allowed for the year in which credit for such property was
13     originally allowed by eliminating such property from such
14     computation and, (ii) subtracting such recomputed credit
15     from the amount of credit previously allowed. For the
16     purposes of this paragraph (7), a reduction of the basis of
17     qualified property resulting from a redetermination of the
18     purchase price shall be deemed a disposition of qualified
19     property to the extent of such reduction.
20         (8) Unless the investment credit is extended by law,
21     the basis of qualified property shall not include costs
22     incurred after December 31, 2008, except for costs incurred
23     pursuant to a binding contract entered into on or before
24     December 31, 2008.
25         (9) Each taxable year ending before December 31, 2000,
26     a partnership may elect to pass through to its partners the
27     credits to which the partnership is entitled under this
28     subsection (e) for the taxable year. A partner may use the
29     credit allocated to him or her under this paragraph only
30     against the tax imposed in subsections (c) and (d) of this
31     Section. If the partnership makes that election, those
32     credits shall be allocated among the partners in the
33     partnership in accordance with the rules set forth in
34     Section 704(b) of the Internal Revenue Code, and the rules
35     promulgated under that Section, and the allocated amount of
36     the credits shall be allowed to the partners for that

 

 

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1     taxable year. The partnership shall make this election on
2     its Personal Property Tax Replacement Income Tax return for
3     that taxable year. The election to pass through the credits
4     shall be irrevocable.
5         For taxable years ending on or after December 31, 2000,
6     a partner that qualifies its partnership for a subtraction
7     under subparagraph (I) of paragraph (2) of subsection (d)
8     of Section 203 or a shareholder that qualifies a Subchapter
9     S corporation for a subtraction under subparagraph (S) of
10     paragraph (2) of subsection (b) of Section 203 shall be
11     allowed a credit under this subsection (e) equal to its
12     share of the credit earned under this subsection (e) during
13     the taxable year by the partnership or Subchapter S
14     corporation, determined in accordance with the
15     determination of income and distributive share of income
16     under Sections 702 and 704 and Subchapter S of the Internal
17     Revenue Code. This paragraph is exempt from the provisions
18     of Section 250.
19       (f) Investment credit; Enterprise Zone.
20         (1) A taxpayer shall be allowed a credit against the
21     tax imposed by subsections (a) and (b) of this Section for
22     investment in qualified property which is placed in service
23     in an Enterprise Zone created pursuant to the Illinois
24     Enterprise Zone Act. For partners, shareholders of
25     Subchapter S corporations, and owners of limited liability
26     companies, if the liability company is treated as a
27     partnership for purposes of federal and State income
28     taxation, there shall be allowed a credit under this
29     subsection (f) to be determined in accordance with the
30     determination of income and distributive share of income
31     under Sections 702 and 704 and Subchapter S of the Internal
32     Revenue Code. The credit shall be .5% of the basis for such
33     property. The credit shall be available only in the taxable
34     year in which the property is placed in service in the
35     Enterprise Zone and shall not be allowed to the extent that
36     it would reduce a taxpayer's liability for the tax imposed

 

 

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1     by subsections (a) and (b) of this Section to below zero.
2     For tax years ending on or after December 31, 1985, the
3     credit shall be allowed for the tax year in which the
4     property is placed in service, or, if the amount of the
5     credit exceeds the tax liability for that year, whether it
6     exceeds the original liability or the liability as later
7     amended, such excess may be carried forward and applied to
8     the tax liability of the 5 taxable years following the
9     excess credit year. The credit shall be applied to the
10     earliest year for which there is a liability. If there is
11     credit from more than one tax year that is available to
12     offset a liability, the credit accruing first in time shall
13     be applied first.
14         (2) The term qualified property means property which:
15             (A) is tangible, whether new or used, including
16         buildings and structural components of buildings;
17             (B) is depreciable pursuant to Section 167 of the
18         Internal Revenue Code, except that "3-year property"
19         as defined in Section 168(c)(2)(A) of that Code is not
20         eligible for the credit provided by this subsection
21         (f);
22             (C) is acquired by purchase as defined in Section
23         179(d) of the Internal Revenue Code;
24             (D) is used in the Enterprise Zone by the taxpayer;
25         and
26             (E) has not been previously used in Illinois in
27         such a manner and by such a person as would qualify for
28         the credit provided by this subsection (f) or
29         subsection (e).
30         (3) The basis of qualified property shall be the basis
31     used to compute the depreciation deduction for federal
32     income tax purposes.
33         (4) If the basis of the property for federal income tax
34     depreciation purposes is increased after it has been placed
35     in service in the Enterprise Zone by the taxpayer, the
36     amount of such increase shall be deemed property placed in

 

 

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1     service on the date of such increase in basis.
2         (5) The term "placed in service" shall have the same
3     meaning as under Section 46 of the Internal Revenue Code.
4         (6) If during any taxable year, any property ceases to
5     be qualified property in the hands of the taxpayer within
6     48 months after being placed in service, or the situs of
7     any qualified property is moved outside the Enterprise Zone
8     within 48 months after being placed in service, the tax
9     imposed under subsections (a) and (b) of this Section for
10     such taxable year shall be increased. Such increase shall
11     be determined by (i) recomputing the investment credit
12     which would have been allowed for the year in which credit
13     for such property was originally allowed by eliminating
14     such property from such computation, and (ii) subtracting
15     such recomputed credit from the amount of credit previously
16     allowed. For the purposes of this paragraph (6), a
17     reduction of the basis of qualified property resulting from
18     a redetermination of the purchase price shall be deemed a
19     disposition of qualified property to the extent of such
20     reduction.
21       (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade
22 Zone or Sub-Zone.
23         (1) A taxpayer conducting a trade or business in an
24     enterprise zone or a High Impact Business designated by the
25     Department of Commerce and Economic Opportunity conducting
26     a trade or business in a federally designated Foreign Trade
27     Zone or Sub-Zone shall be allowed a credit against the tax
28     imposed by subsections (a) and (b) of this Section in the
29     amount of $500 per eligible employee hired to work in the
30     zone during the taxable year.
31         (2) To qualify for the credit:
32             (A) the taxpayer must hire 5 or more eligible
33         employees to work in an enterprise zone or federally
34         designated Foreign Trade Zone or Sub-Zone during the
35         taxable year;
36             (B) the taxpayer's total employment within the

 

 

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1         enterprise zone or federally designated Foreign Trade
2         Zone or Sub-Zone must increase by 5 or more full-time
3         employees beyond the total employed in that zone at the
4         end of the previous tax year for which a jobs tax
5         credit under this Section was taken, or beyond the
6         total employed by the taxpayer as of December 31, 1985,
7         whichever is later; and
8             (C) the eligible employees must be employed 180
9         consecutive days in order to be deemed hired for
10         purposes of this subsection.
11         (3) An "eligible employee" means an employee who is:
12             (A) Certified by the Department of Commerce and
13         Economic Opportunity as "eligible for services"
14         pursuant to regulations promulgated in accordance with
15         Title II of the Job Training Partnership Act, Training
16         Services for the Disadvantaged or Title III of the Job
17         Training Partnership Act, Employment and Training
18         Assistance for Dislocated Workers Program.
19             (B) Hired after the enterprise zone or federally
20         designated Foreign Trade Zone or Sub-Zone was
21         designated or the trade or business was located in that
22         zone, whichever is later.
23             (C) Employed in the enterprise zone or Foreign
24         Trade Zone or Sub-Zone. An employee is employed in an
25         enterprise zone or federally designated Foreign Trade
26         Zone or Sub-Zone if his services are rendered there or
27         it is the base of operations for the services
28         performed.
29             (D) A full-time employee working 30 or more hours
30         per week.
31         (4) For tax years ending on or after December 31, 1985
32     and prior to December 31, 1988, the credit shall be allowed
33     for the tax year in which the eligible employees are hired.
34     For tax years ending on or after December 31, 1988, the
35     credit shall be allowed for the tax year immediately
36     following the tax year in which the eligible employees are

 

 

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1     hired. If the amount of the credit exceeds the tax
2     liability for that year, whether it exceeds the original
3     liability or the liability as later amended, such excess
4     may be carried forward and applied to the tax liability of
5     the 5 taxable years following the excess credit year. The
6     credit shall be applied to the earliest year for which
7     there is a liability. If there is credit from more than one
8     tax year that is available to offset a liability, earlier
9     credit shall be applied first.
10         (5) The Department of Revenue shall promulgate such
11     rules and regulations as may be deemed necessary to carry
12     out the purposes of this subsection (g).
13         (6) The credit shall be available for eligible
14     employees hired on or after January 1, 1986.
15     (h) Investment credit; High Impact Business.
16         (1) Subject to subsections (b) and (b-5) of Section 5.5
17     of the Illinois Enterprise Zone Act, a taxpayer shall be
18     allowed a credit against the tax imposed by subsections (a)
19     and (b) of this Section for investment in qualified
20     property which is placed in service by a Department of
21     Commerce and Economic Opportunity designated High Impact
22     Business. The credit shall be .5% of the basis for such
23     property. The credit shall not be available (i) until the
24     minimum investments in qualified property set forth in
25     subdivision (a)(3)(A) of Section 5.5 of the Illinois
26     Enterprise Zone Act have been satisfied or (ii) until the
27     time authorized in subsection (b-5) of the Illinois
28     Enterprise Zone Act for entities designated as High Impact
29     Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
30     (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
31     Act, and shall not be allowed to the extent that it would
32     reduce a taxpayer's liability for the tax imposed by
33     subsections (a) and (b) of this Section to below zero. The
34     credit applicable to such investments shall be taken in the
35     taxable year in which such investments have been completed.
36     The credit for additional investments beyond the minimum

 

 

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1     investment by a designated high impact business authorized
2     under subdivision (a)(3)(A) of Section 5.5 of the Illinois
3     Enterprise Zone Act shall be available only in the taxable
4     year in which the property is placed in service and shall
5     not be allowed to the extent that it would reduce a
6     taxpayer's liability for the tax imposed by subsections (a)
7     and (b) of this Section to below zero. For tax years ending
8     on or after December 31, 1987, the credit shall be allowed
9     for the tax year in which the property is placed in
10     service, or, if the amount of the credit exceeds the tax
11     liability for that year, whether it exceeds the original
12     liability or the liability as later amended, such excess
13     may be carried forward and applied to the tax liability of
14     the 5 taxable years following the excess credit year. The
15     credit shall be applied to the earliest year for which
16     there is a liability. If there is credit from more than one
17     tax year that is available to offset a liability, the
18     credit accruing first in time shall be applied first.
19         Changes made in this subdivision (h)(1) by Public Act
20     88-670 restore changes made by Public Act 85-1182 and
21     reflect existing law.
22         (2) The term qualified property means property which:
23             (A) is tangible, whether new or used, including
24         buildings and structural components of buildings;
25             (B) is depreciable pursuant to Section 167 of the
26         Internal Revenue Code, except that "3-year property"
27         as defined in Section 168(c)(2)(A) of that Code is not
28         eligible for the credit provided by this subsection
29         (h);
30             (C) is acquired by purchase as defined in Section
31         179(d) of the Internal Revenue Code; and
32             (D) is not eligible for the Enterprise Zone
33         Investment Credit provided by subsection (f) of this
34         Section.
35         (3) The basis of qualified property shall be the basis
36     used to compute the depreciation deduction for federal

 

 

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1     income tax purposes.
2         (4) If the basis of the property for federal income tax
3     depreciation purposes is increased after it has been placed
4     in service in a federally designated Foreign Trade Zone or
5     Sub-Zone located in Illinois by the taxpayer, the amount of
6     such increase shall be deemed property placed in service on
7     the date of such increase in basis.
8         (5) The term "placed in service" shall have the same
9     meaning as under Section 46 of the Internal Revenue Code.
10         (6) If during any taxable year ending on or before
11     December 31, 1996, any property ceases to be qualified
12     property in the hands of the taxpayer within 48 months
13     after being placed in service, or the situs of any
14     qualified property is moved outside Illinois within 48
15     months after being placed in service, the tax imposed under
16     subsections (a) and (b) of this Section for such taxable
17     year shall be increased. Such increase shall be determined
18     by (i) recomputing the investment credit which would have
19     been allowed for the year in which credit for such property
20     was originally allowed by eliminating such property from
21     such computation, and (ii) subtracting such recomputed
22     credit from the amount of credit previously allowed. For
23     the purposes of this paragraph (6), a reduction of the
24     basis of qualified property resulting from a
25     redetermination of the purchase price shall be deemed a
26     disposition of qualified property to the extent of such
27     reduction.
28         (7) Beginning with tax years ending after December 31,
29     1996, if a taxpayer qualifies for the credit under this
30     subsection (h) and thereby is granted a tax abatement and
31     the taxpayer relocates its entire facility in violation of
32     the explicit terms and length of the contract under Section
33     18-183 of the Property Tax Code, the tax imposed under
34     subsections (a) and (b) of this Section shall be increased
35     for the taxable year in which the taxpayer relocated its
36     facility by an amount equal to the amount of credit

 

 

SB1484 - 20 - LRB094 10846 MKM 41371 b

1     received by the taxpayer under this subsection (h).
2     (i) Credit for Personal Property Tax Replacement Income
3 Tax. For tax years ending prior to December 31, 2003, a credit
4 shall be allowed against the tax imposed by subsections (a) and
5 (b) of this Section for the tax imposed by subsections (c) and
6 (d) of this Section. This credit shall be computed by
7 multiplying the tax imposed by subsections (c) and (d) of this
8 Section by a fraction, the numerator of which is base income
9 allocable to Illinois and the denominator of which is Illinois
10 base income, and further multiplying the product by the tax
11 rate imposed by subsections (a) and (b) of this Section.
12     Any credit earned on or after December 31, 1986 under this
13 subsection which is unused in the year the credit is computed
14 because it exceeds the tax liability imposed by subsections (a)
15 and (b) for that year (whether it exceeds the original
16 liability or the liability as later amended) may be carried
17 forward and applied to the tax liability imposed by subsections
18 (a) and (b) of the 5 taxable years following the excess credit
19 year, provided that no credit may be carried forward to any
20 year ending on or after December 31, 2003. This credit shall be
21 applied first to the earliest year for which there is a
22 liability. If there is a credit under this subsection from more
23 than one tax year that is available to offset a liability the
24 earliest credit arising under this subsection shall be applied
25 first.
26     If, during any taxable year ending on or after December 31,
27 1986, the tax imposed by subsections (c) and (d) of this
28 Section for which a taxpayer has claimed a credit under this
29 subsection (i) is reduced, the amount of credit for such tax
30 shall also be reduced. Such reduction shall be determined by
31 recomputing the credit to take into account the reduced tax
32 imposed by subsections (c) and (d). If any portion of the
33 reduced amount of credit has been carried to a different
34 taxable year, an amended return shall be filed for such taxable
35 year to reduce the amount of credit claimed.
36     (j) Training expense credit. Beginning with tax years

 

 

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1 ending on or after December 31, 1986 and prior to December 31,
2 2003, a taxpayer shall be allowed a credit against the tax
3 imposed by subsections (a) and (b) under this Section for all
4 amounts paid or accrued, on behalf of all persons employed by
5 the taxpayer in Illinois or Illinois residents employed outside
6 of Illinois by a taxpayer, for educational or vocational
7 training in semi-technical or technical fields or semi-skilled
8 or skilled fields, which were deducted from gross income in the
9 computation of taxable income. The credit against the tax
10 imposed by subsections (a) and (b) shall be 1.6% of such
11 training expenses. For partners, shareholders of subchapter S
12 corporations, and owners of limited liability companies, if the
13 liability company is treated as a partnership for purposes of
14 federal and State income taxation, there shall be allowed a
15 credit under this subsection (j) to be determined in accordance
16 with the determination of income and distributive share of
17 income under Sections 702 and 704 and subchapter S of the
18 Internal Revenue Code.
19     Any credit allowed under this subsection which is unused in
20 the year the credit is earned may be carried forward to each of
21 the 5 taxable years following the year for which the credit is
22 first computed until it is used. This credit shall be applied
23 first to the earliest year for which there is a liability. If
24 there is a credit under this subsection from more than one tax
25 year that is available to offset a liability the earliest
26 credit arising under this subsection shall be applied first. No
27 carryforward credit may be claimed in any tax year ending on or
28 after December 31, 2003.
29     (k) Research and development credit.
30     For tax years ending after July 1, 1990 and prior to
31 December 31, 2003, and beginning again for tax years ending on
32 or after December 31, 2004, a taxpayer shall be allowed a
33 credit against the tax imposed by subsections (a) and (b) of
34 this Section for increasing research activities in this State.
35 The credit allowed against the tax imposed by subsections (a)
36 and (b) shall be equal to 6 1/2% of the qualifying expenditures

 

 

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1 for increasing research activities in this State. For partners,
2 shareholders of subchapter S corporations, and owners of
3 limited liability companies, if the liability company is
4 treated as a partnership for purposes of federal and State
5 income taxation, there shall be allowed a credit under this
6 subsection to be determined in accordance with the
7 determination of income and distributive share of income under
8 Sections 702 and 704 and subchapter S of the Internal Revenue
9 Code.
10     For purposes of this subsection, "qualifying expenditures"
11 means the qualifying expenditures as defined for the federal
12 credit for increasing research activities which would be
13 allowable under Section 41 of the Internal Revenue Code and
14 which are conducted in this State, "qualifying expenditures for
15 increasing research activities in this State" means the excess
16 of qualifying expenditures for the taxable year in which
17 incurred over qualifying expenditures for the base period,
18 "qualifying expenditures for the base period" means the average
19 of the qualifying expenditures for each year in the base
20 period, and "base period" means the 3 taxable years immediately
21 preceding the taxable year for which the determination is being
22 made.
23     Any credit in excess of the tax liability for the taxable
24 year may be carried forward. A taxpayer may elect to have the
25 unused credit shown on its final completed return carried over
26 as a credit against the tax liability for the following 5
27 taxable years or until it has been fully used, whichever occurs
28 first; provided that no credit earned in a tax year ending
29 prior to December 31, 2003 may be carried forward to any year
30 ending on or after December 31, 2003.
31     If an unused credit is carried forward to a given year from
32 2 or more earlier years, that credit arising in the earliest
33 year will be applied first against the tax liability for the
34 given year. If a tax liability for the given year still
35 remains, the credit from the next earliest year will then be
36 applied, and so on, until all credits have been used or no tax

 

 

SB1484 - 23 - LRB094 10846 MKM 41371 b

1 liability for the given year remains. Any remaining unused
2 credit or credits then will be carried forward to the next
3 following year in which a tax liability is incurred, except
4 that no credit can be carried forward to a year which is more
5 than 5 years after the year in which the expense for which the
6 credit is given was incurred.
7     No inference shall be drawn from this amendatory Act of the
8 91st General Assembly in construing this Section for taxable
9 years beginning before January 1, 1999.
10     (l) Environmental Remediation Tax Credit.
11         (i) For tax years ending after December 31, 1997 and on
12     or before December 31, 2001, a taxpayer shall be allowed a
13     credit against the tax imposed by subsections (a) and (b)
14     of this Section for certain amounts paid for unreimbursed
15     eligible remediation costs, as specified in this
16     subsection. For purposes of this Section, "unreimbursed
17     eligible remediation costs" means costs approved by the
18     Illinois Environmental Protection Agency ("Agency") under
19     Section 58.14 of the Environmental Protection Act that were
20     paid in performing environmental remediation at a site for
21     which a No Further Remediation Letter was issued by the
22     Agency and recorded under Section 58.10 of the
23     Environmental Protection Act. The credit must be claimed
24     for the taxable year in which Agency approval of the
25     eligible remediation costs is granted. The credit is not
26     available to any taxpayer if the taxpayer or any related
27     party caused or contributed to, in any material respect, a
28     release of regulated substances on, in, or under the site
29     that was identified and addressed by the remedial action
30     pursuant to the Site Remediation Program of the
31     Environmental Protection Act. After the Pollution Control
32     Board rules are adopted pursuant to the Illinois
33     Administrative Procedure Act for the administration and
34     enforcement of Section 58.9 of the Environmental
35     Protection Act, determinations as to credit availability
36     for purposes of this Section shall be made consistent with

 

 

SB1484 - 24 - LRB094 10846 MKM 41371 b

1     those rules. For purposes of this Section, "taxpayer"
2     includes a person whose tax attributes the taxpayer has
3     succeeded to under Section 381 of the Internal Revenue Code
4     and "related party" includes the persons disallowed a
5     deduction for losses by paragraphs (b), (c), and (f)(1) of
6     Section 267 of the Internal Revenue Code by virtue of being
7     a related taxpayer, as well as any of its partners. The
8     credit allowed against the tax imposed by subsections (a)
9     and (b) shall be equal to 25% of the unreimbursed eligible
10     remediation costs in excess of $100,000 per site, except
11     that the $100,000 threshold shall not apply to any site
12     contained in an enterprise zone as determined by the
13     Department of Commerce and Community Affairs (now
14     Department of Commerce and Economic Opportunity). The
15     total credit allowed shall not exceed $40,000 per year with
16     a maximum total of $150,000 per site. For partners and
17     shareholders of subchapter S corporations, there shall be
18     allowed a credit under this subsection to be determined in
19     accordance with the determination of income and
20     distributive share of income under Sections 702 and 704 and
21     subchapter S of the Internal Revenue Code.
22         (ii) A credit allowed under this subsection that is
23     unused in the year the credit is earned may be carried
24     forward to each of the 5 taxable years following the year
25     for which the credit is first earned until it is used. The
26     term "unused credit" does not include any amounts of
27     unreimbursed eligible remediation costs in excess of the
28     maximum credit per site authorized under paragraph (i).
29     This credit shall be applied first to the earliest year for
30     which there is a liability. If there is a credit under this
31     subsection from more than one tax year that is available to
32     offset a liability, the earliest credit arising under this
33     subsection shall be applied first. A credit allowed under
34     this subsection may be sold to a buyer as part of a sale of
35     all or part of the remediation site for which the credit
36     was granted. The purchaser of a remediation site and the

 

 

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1     tax credit shall succeed to the unused credit and remaining
2     carry-forward period of the seller. To perfect the
3     transfer, the assignor shall record the transfer in the
4     chain of title for the site and provide written notice to
5     the Director of the Illinois Department of Revenue of the
6     assignor's intent to sell the remediation site and the
7     amount of the tax credit to be transferred as a portion of
8     the sale. In no event may a credit be transferred to any
9     taxpayer if the taxpayer or a related party would not be
10     eligible under the provisions of subsection (i).
11         (iii) For purposes of this Section, the term "site"
12     shall have the same meaning as under Section 58.2 of the
13     Environmental Protection Act.
14     (m) Education expense credit. Beginning with tax years
15 ending after December 31, 1999, a taxpayer who is the custodian
16 of one or more qualifying pupils shall be allowed a credit
17 against the tax imposed by subsections (a) and (b) of this
18 Section for qualified education expenses incurred on behalf of
19 the qualifying pupils. The credit shall be equal to 25% of
20 qualified education expenses, but in no event may the total
21 credit under this subsection claimed by a family that is the
22 custodian of qualifying pupils exceed $500. In no event shall a
23 credit under this subsection reduce the taxpayer's liability
24 under this Act to less than zero. This subsection is exempt
25 from the provisions of Section 250 of this Act.
26     For purposes of this subsection:
27     "Qualifying pupils" means individuals who (i) are
28 residents of the State of Illinois, (ii) are under the age of
29 21 at the close of the school year for which a credit is
30 sought, and (iii) during the school year for which a credit is
31 sought were full-time pupils enrolled in a kindergarten through
32 twelfth grade education program at any school, as defined in
33 this subsection.
34     "Qualified education expense" means the amount incurred on
35 behalf of a qualifying pupil in excess of $250 for tuition,
36 book fees, and lab fees at the school in which the pupil is

 

 

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1 enrolled during the regular school year.
2     "School" means any public or nonpublic elementary or
3 secondary school in Illinois that is in compliance with Title
4 VI of the Civil Rights Act of 1964 and attendance at which
5 satisfies the requirements of Section 26-1 of the School Code,
6 except that nothing shall be construed to require a child to
7 attend any particular public or nonpublic school to qualify for
8 the credit under this Section.
9     "Custodian" means, with respect to qualifying pupils, an
10 Illinois resident who is a parent, the parents, a legal
11 guardian, or the legal guardians of the qualifying pupils.
12 (Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-651,
13 eff. 7-11-02; 93-840, eff. 7-30-04; 92-846, eff. 8-23-02;
14 93-29, eff. 6-20-03; 93-840, eff. 7-30-04; 93-871, eff. 8-6-04;
15 revised 10-25-04.)
 
16     (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
17     Sec. 901. Collection Authority.
18     (a) In general.
19     The Department shall collect the taxes imposed by this Act.
20 The Department shall collect certified past due child support
21 amounts under Section 2505-650 of the Department of Revenue Law
22 (20 ILCS 2505/2505-650). Except as provided in subsections (c)
23 and (e) of this Section, money collected pursuant to
24 subsections (a) and (b) of Section 201 of this Act shall be
25 paid into the General Revenue Fund in the State treasury; money
26 collected pursuant to subsections (c) and (d) of Section 201 of
27 this Act shall be paid into the Personal Property Tax
28 Replacement Fund, a special fund in the State Treasury; and
29 money collected under Section 2505-650 of the Department of
30 Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
31 Child Support Enforcement Trust Fund, a special fund outside
32 the State Treasury, or to the State Disbursement Unit
33 established under Section 10-26 of the Illinois Public Aid
34 Code, as directed by the Department of Public Aid.
35     (b) Local Governmental Distributive Fund.

 

 

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1     Beginning August 1, 1969, and continuing through June 30,
2 1994, the Treasurer shall transfer each month from the General
3 Revenue Fund to a special fund in the State treasury, to be
4 known as the "Local Government Distributive Fund", an amount
5 equal to 1/12 of the net revenue realized from the tax imposed
6 by subsections (a) and (b) of Section 201 of this Act during
7 the preceding month. Beginning July 1, 1994, and continuing
8 through June 30, 1995, the Treasurer shall transfer each month
9 from the General Revenue Fund to the Local Government
10 Distributive Fund an amount equal to 1/11 of the net revenue
11 realized from the tax imposed by subsections (a) and (b) of
12 Section 201 of this Act during the preceding month. Beginning
13 July 1, 1995, the Treasurer shall transfer each month from the
14 General Revenue Fund to the Local Government Distributive Fund
15 an amount equal to the net of (i) 1/10 of the net revenue
16 realized from the tax imposed by subsections (a) and (b) of
17 Section 201 of the Illinois Income Tax Act during the preceding
18 month, except that the net revenue attributable to the increase
19 in the income tax imposed by subsections (a) and (b) of Section
20 201 of this Act in accordance with this amendatory Act of the
21 94th General Assembly shall not be used to calculate the amount
22 transferred to the Local Governmental Distributive Fund (ii)
23 minus, beginning July 1, 2003 and ending June 30, 2004,
24 $6,666,666, and beginning July 1, 2004, zero. Net revenue
25 realized for a month shall be defined as the revenue from the
26 tax imposed by subsections (a) and (b) of Section 201 of this
27 Act which is deposited in the General Revenue Fund, the
28 Educational Assistance Fund and the Income Tax Surcharge Local
29 Government Distributive Fund during the month minus the amount
30 paid out of the General Revenue Fund in State warrants during
31 that same month as refunds to taxpayers for overpayment of
32 liability under the tax imposed by subsections (a) and (b) of
33 Section 201 of this Act.
34     (c) Deposits Into Income Tax Refund Fund.
35         (1) Beginning on January 1, 1989 and thereafter, the
36     Department shall deposit a percentage of the amounts

 

 

SB1484 - 28 - LRB094 10846 MKM 41371 b

1     collected pursuant to subsections (a) and (b)(1), (2), and
2     (3), of Section 201 of this Act into a fund in the State
3     treasury known as the Income Tax Refund Fund. The
4     Department shall deposit 6% of such amounts during the
5     period beginning January 1, 1989 and ending on June 30,
6     1989. Beginning with State fiscal year 1990 and for each
7     fiscal year thereafter, the percentage deposited into the
8     Income Tax Refund Fund during a fiscal year shall be the
9     Annual Percentage. For fiscal years 1999 through 2001, the
10     Annual Percentage shall be 7.1%. For fiscal year 2003, the
11     Annual Percentage shall be 8%. For fiscal year 2004, the
12     Annual Percentage shall be 11.7%. Upon the effective date
13     of this amendatory Act of the 93rd General Assembly, the
14     Annual Percentage shall be 10% for fiscal year 2005. For
15     all other fiscal years, the Annual Percentage shall be
16     calculated as a fraction, the numerator of which shall be
17     the amount of refunds approved for payment by the
18     Department during the preceding fiscal year as a result of
19     overpayment of tax liability under subsections (a) and
20     (b)(1), (2), and (3) of Section 201 of this Act plus the
21     amount of such refunds remaining approved but unpaid at the
22     end of the preceding fiscal year, minus the amounts
23     transferred into the Income Tax Refund Fund from the
24     Tobacco Settlement Recovery Fund, and the denominator of
25     which shall be the amounts which will be collected pursuant
26     to subsections (a) and (b)(1), (2), and (3) of Section 201
27     of this Act during the preceding fiscal year; except that
28     in State fiscal year 2002, the Annual Percentage shall in
29     no event exceed 7.6%. The Director of Revenue shall certify
30     the Annual Percentage to the Comptroller on the last
31     business day of the fiscal year immediately preceding the
32     fiscal year for which it is to be effective.
33         (2) Beginning on January 1, 1989 and thereafter, the
34     Department shall deposit a percentage of the amounts
35     collected pursuant to subsections (a) and (b)(6), (7), and
36     (8), (c) and (d) of Section 201 of this Act into a fund in

 

 

SB1484 - 29 - LRB094 10846 MKM 41371 b

1     the State treasury known as the Income Tax Refund Fund. The
2     Department shall deposit 18% of such amounts during the
3     period beginning January 1, 1989 and ending on June 30,
4     1989. Beginning with State fiscal year 1990 and for each
5     fiscal year thereafter, the percentage deposited into the
6     Income Tax Refund Fund during a fiscal year shall be the
7     Annual Percentage. For fiscal years 1999, 2000, and 2001,
8     the Annual Percentage shall be 19%. For fiscal year 2003,
9     the Annual Percentage shall be 27%. For fiscal year 2004,
10     the Annual Percentage shall be 32%. Upon the effective date
11     of this amendatory Act of the 93rd General Assembly, the
12     Annual Percentage shall be 24% for fiscal year 2005. For
13     all other fiscal years, the Annual Percentage shall be
14     calculated as a fraction, the numerator of which shall be
15     the amount of refunds approved for payment by the
16     Department during the preceding fiscal year as a result of
17     overpayment of tax liability under subsections (a) and
18     (b)(6), (7), and (8), (c) and (d) of Section 201 of this
19     Act plus the amount of such refunds remaining approved but
20     unpaid at the end of the preceding fiscal year, and the
21     denominator of which shall be the amounts which will be
22     collected pursuant to subsections (a) and (b)(6), (7), and
23     (8), (c) and (d) of Section 201 of this Act during the
24     preceding fiscal year; except that in State fiscal year
25     2002, the Annual Percentage shall in no event exceed 23%.
26     The Director of Revenue shall certify the Annual Percentage
27     to the Comptroller on the last business day of the fiscal
28     year immediately preceding the fiscal year for which it is
29     to be effective.
30         (3) The Comptroller shall order transferred and the
31     Treasurer shall transfer from the Tobacco Settlement
32     Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
33     in January, 2001, (ii) $35,000,000 in January, 2002, and
34     (iii) $35,000,000 in January, 2003.
35     (d) Expenditures from Income Tax Refund Fund.
36         (1) Beginning January 1, 1989, money in the Income Tax

 

 

SB1484 - 30 - LRB094 10846 MKM 41371 b

1     Refund Fund shall be expended exclusively for the purpose
2     of paying refunds resulting from overpayment of tax
3     liability under Section 201 of this Act, for paying rebates
4     under Section 208.1 in the event that the amounts in the
5     Homeowners' Tax Relief Fund are insufficient for that
6     purpose, and for making transfers pursuant to this
7     subsection (d).
8         (2) The Director shall order payment of refunds
9     resulting from overpayment of tax liability under Section
10     201 of this Act from the Income Tax Refund Fund only to the
11     extent that amounts collected pursuant to Section 201 of
12     this Act and transfers pursuant to this subsection (d) and
13     item (3) of subsection (c) have been deposited and retained
14     in the Fund.
15         (3) As soon as possible after the end of each fiscal
16     year, the Director shall order transferred and the State
17     Treasurer and State Comptroller shall transfer from the
18     Income Tax Refund Fund to the Personal Property Tax
19     Replacement Fund an amount, certified by the Director to
20     the Comptroller, equal to the excess of the amount
21     collected pursuant to subsections (c) and (d) of Section
22     201 of this Act deposited into the Income Tax Refund Fund
23     during the fiscal year over the amount of refunds resulting
24     from overpayment of tax liability under subsections (c) and
25     (d) of Section 201 of this Act paid from the Income Tax
26     Refund Fund during the fiscal year.
27         (4) As soon as possible after the end of each fiscal
28     year, the Director shall order transferred and the State
29     Treasurer and State Comptroller shall transfer from the
30     Personal Property Tax Replacement Fund to the Income Tax
31     Refund Fund an amount, certified by the Director to the
32     Comptroller, equal to the excess of the amount of refunds
33     resulting from overpayment of tax liability under
34     subsections (c) and (d) of Section 201 of this Act paid
35     from the Income Tax Refund Fund during the fiscal year over
36     the amount collected pursuant to subsections (c) and (d) of

 

 

SB1484 - 31 - LRB094 10846 MKM 41371 b

1     Section 201 of this Act deposited into the Income Tax
2     Refund Fund during the fiscal year.
3         (4.5) As soon as possible after the end of fiscal year
4     1999 and of each fiscal year thereafter, the Director shall
5     order transferred and the State Treasurer and State
6     Comptroller shall transfer from the Income Tax Refund Fund
7     to the General Revenue Fund any surplus remaining in the
8     Income Tax Refund Fund as of the end of such fiscal year;
9     excluding for fiscal years 2000, 2001, and 2002 amounts
10     attributable to transfers under item (3) of subsection (c)
11     less refunds resulting from the earned income tax credit.
12         (5) This Act shall constitute an irrevocable and
13     continuing appropriation from the Income Tax Refund Fund
14     for the purpose of paying refunds upon the order of the
15     Director in accordance with the provisions of this Section.
16     (e) Deposits into the Education Assistance Fund and the
17 Income Tax Surcharge Local Government Distributive Fund.
18     On July 1, 2005 and thereafter, of the amounts collected
19 pursuant to subsections (a) and (b) of Section 201 of this Act,
20 minus deposits into the Income Tax Refund Fund, the Department
21 shall deposit into the Education Assistance Fund in the State
22 treasury: (i) an amount equal to 7.3% of the amount
23 attributable to the rates in effect prior to the effective date
24 of this amendatory Act of the 94th General Assembly, plus (ii)
25 100% of the amount attributable to the increase in the amounts
26 collected pursuant to subsections (a) and (b) of Section 201 of
27 this Act under this amendatory Act of the 94th General
28 Assembly. On July 1, 1991, and through June 30, 2005
29 thereafter, of the amounts collected pursuant to subsections
30 (a) and (b) of Section 201 of this Act, minus deposits into the
31 Income Tax Refund Fund, the Department shall deposit 7.3% into
32 the Education Assistance Fund in the State Treasury. Beginning
33 July 1, 1991, and continuing through January 31, 1993, of the
34 amounts collected pursuant to subsections (a) and (b) of
35 Section 201 of the Illinois Income Tax Act, minus deposits into
36 the Income Tax Refund Fund, the Department shall deposit 3.0%

 

 

SB1484 - 32 - LRB094 10846 MKM 41371 b

1 into the Income Tax Surcharge Local Government Distributive
2 Fund in the State Treasury. Beginning February 1, 1993 and
3 continuing through June 30, 1993, of the amounts collected
4 pursuant to subsections (a) and (b) of Section 201 of the
5 Illinois Income Tax Act, minus deposits into the Income Tax
6 Refund Fund, the Department shall deposit 4.4% into the Income
7 Tax Surcharge Local Government Distributive Fund in the State
8 Treasury. Beginning July 1, 1993, and continuing through June
9 30, 1994, of the amounts collected under subsections (a) and
10 (b) of Section 201 of this Act, minus deposits into the Income
11 Tax Refund Fund, the Department shall deposit 1.475% into the
12 Income Tax Surcharge Local Government Distributive Fund in the
13 State Treasury.
14 (Source: P.A. 92-11, eff. 6-11-01; 92-16, eff. 6-28-01; 92-600,
15 eff. 6-28-02; 93-32, eff. 6-20-03; 93-839, eff. 7-30-04.)
 
16     Section 15. The Property Tax Code is amended by changing
17 Sections 18-255, 20-15, and 21-30 and by adding Section 18-178
18 as follows:
 
19     (35 ILCS 200/18-178 new)
20     Sec. 18-178. Education tax abatement. Beginning with taxes
21 levied for 2005 (payable in 2006), the county clerk must
22 determine the final extension for educational purposes for all
23 taxable property in a school district located in the county or
24 for the taxable property of that part of a school district
25 located in the county, taking into account the maximum rate,
26 levy, and extension authorized under the Property Tax Extension
27 Limitation Law, the Truth in Taxation Law, and any other
28 statute. The county clerk must then abate the extension for
29 educational purposes for each school district or part of a
30 school district in the county by the amount of the property tax
31 relief grant certified to the county clerk for that school
32 district or part of a school district by the Department of
33 Revenue under Section 6z-68 of the State Finance Act. When the
34 final extension for educational purposes has been determined

 

 

SB1484 - 33 - LRB094 10846 MKM 41371 b

1 and abated, the county clerk must notify the Department of
2 Revenue. The county clerk must determine the prorated portion
3 of the certified property tax relief grants allocable to each
4 taxpayer in a given school district based on the tax rate for
5 educational purposes for that school district and the aggregate
6 relief granted to that school district. The extension amount
7 for educational purposes, as originally calculated before
8 abatement, is the official, final extension for educational
9 purposes and must be used for all other purposes, including
10 determining the maximum rate, levy, and extension authorized
11 under the Property Tax Extension Limitation Law, the Truth in
12 Taxation Law, and any other statute and the maximum amount of
13 tax anticipation warrants under Sections 17-16 and 34-23 of the
14 School Code.
 
15     (35 ILCS 200/18-255)
16     Sec. 18-255. Abstract of assessments and extensions. When
17 the collector's books are completed, the county clerk shall
18 make a complete statement of the assessment and extensions, in
19 conformity to the instructions of the Department. The clerk
20 shall certify the statement to the Department. Beginning with
21 the 2005 levy year, the Department shall require the statement
22 to include a separate listing of the amount of any extension
23 that is abated under Section 18-178 of this Act.
24 (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)
 
25     (35 ILCS 200/20-15)
26     Sec. 20-15. Information on bill or separate statement. The
27 amount of tax due and rates shown on the tax bill pursuant to
28 this Section shall be net of any abatement under Section
29 18-178. There shall be printed on each bill, or on a separate
30 slip which shall be mailed with the bill:
31         (a) a statement itemizing the rate at which taxes have
32     been extended for each of the taxing districts in the
33     county in whose district the property is located, and in
34     those counties utilizing electronic data processing

 

 

SB1484 - 34 - LRB094 10846 MKM 41371 b

1     equipment the dollar amount of tax due from the person
2     assessed allocable to each of those taxing districts,
3     including a separate statement of the dollar amount of tax
4     due which is allocable to a tax levied under the Illinois
5     Local Library Act or to any other tax levied by a
6     municipality or township for public library purposes,
7         (b) a separate statement for each of the taxing
8     districts of the dollar amount of tax due which is
9     allocable to a tax levied under the Illinois Pension Code
10     or to any other tax levied by a municipality or township
11     for public pension or retirement purposes,
12         (c) the total tax rate,
13         (d) the total amount of tax due, and
14         (e) the amount by which the total tax and the tax
15     allocable to each taxing district differs from the
16     taxpayer's last prior tax bill, and
17         (f) the amount of tax abated under Section 18-178
18     labeled "Portion of your Education Related Property Taxes
19     paid by the State of Illinois".
20     The county treasurer shall ensure that only those taxing
21 districts in which a parcel of property is located shall be
22 listed on the bill for that property.
23     In all counties the statement shall also provide:
24         (1) the property index number or other suitable
25     description,
26         (2) the assessment of the property,
27         (3) the equalization factors imposed by the county and
28     by the Department, and
29         (4) the equalized assessment resulting from the
30     application of the equalization factors to the basic
31     assessment.
32     In all counties which do not classify property for purposes
33 of taxation, for property on which a single family residence is
34 situated the statement shall also include a statement to
35 reflect the fair cash value determined for the property. In all
36 counties which classify property for purposes of taxation in

 

 

SB1484 - 35 - LRB094 10846 MKM 41371 b

1 accordance with Section 4 of Article IX of the Illinois
2 Constitution, for parcels of residential property in the lowest
3 assessment classification the statement shall also include a
4 statement to reflect the fair cash value determined for the
5 property.
6     In all counties, the statement shall include information
7 that certain taxpayers may be eligible for the Senior Citizens
8 and Disabled Persons Property Tax Relief and Pharmaceutical
9 Assistance Act and that applications are available from the
10 Illinois Department of Revenue.
11     In counties which use the estimated or accelerated billing
12 methods, these statements shall only be provided with the final
13 installment of taxes due, except that the statement under item
14 (f) shall be included with both installments in those counties
15 under estimated or accelerated billing methods, the first
16 billing showing the amount deducted from the first installment,
17 and the final billing showing the total tax abated for the levy
18 year under Section 18-178. The provisions of this Section
19 create a mandatory statutory duty. They are not merely
20 directory or discretionary. The failure or neglect of the
21 collector to mail the bill, or the failure of the taxpayer to
22 receive the bill, shall not affect the validity of any tax, or
23 the liability for the payment of any tax.
24 (Source: P.A. 91-699, eff. 1-1-01.)
 
25     (35 ILCS 200/21-30)
26     Sec. 21-30. Accelerated billing. Except as provided in this
27 Section, Section 9-260, and Section 21-40, in counties with
28 3,000,000 or more inhabitants, by January 31 annually,
29 estimated tax bills setting out the first installment of
30 property taxes for the preceding year, payable in that year,
31 shall be prepared and mailed. The first installment of taxes on
32 the estimated tax bills shall be computed at 50% of the total
33 of each tax bill before the abatement of taxes under Section
34 18-178 for the preceding year, less an estimate of one-half of
35 the school district property tax relief grant for the current

 

 

SB1484 - 36 - LRB094 10846 MKM 41371 b

1 year determined based on information available. If, prior to
2 the preparation of the estimated tax bills, a certificate of
3 error has been either approved by a court on or before November
4 30 of the preceding year or certified pursuant to Section 14-15
5 on or before November 30 of the preceding year, then the first
6 installment of taxes on the estimated tax bills shall be
7 computed at 50% of the total taxes before the abatement of
8 taxes under Section 18-178 for the preceding year as corrected
9 by the certificate of error, less an estimate of one-half of
10 the school district property tax relief grant for the current
11 year determined based on information available. By June 30
12 annually, actual tax bills shall be prepared and mailed. These
13 bills shall set out total taxes due and the amount of estimated
14 taxes billed in the first installment, and shall state the
15 balance of taxes due for that year as represented by the sum
16 derived from subtracting the amount of the first installment
17 from the total taxes due for that year.
18     The county board may provide by ordinance, in counties with
19 3,000,000 or more inhabitants, for taxes to be paid in 4
20 installments. For the levy year for which the ordinance is
21 first effective and each subsequent year, estimated tax bills
22 setting out the first, second, and third installment of taxes
23 for the preceding year, payable in that year, shall be prepared
24 and mailed not later than the date specified by ordinance. Each
25 installment on estimated tax bills shall be computed at 25% of
26 the total of each tax bill for the preceding year. By the date
27 specified in the ordinance, actual tax bills shall be prepared
28 and mailed. These bills shall set out total taxes due and the
29 amount of estimated taxes billed in the first, second, and
30 third installments and shall state the balance of taxes due for
31 that year as represented by the sum derived from subtracting
32 the amount of the estimated installments from the total taxes
33 due for that year.
34     The county board of any county with less than 3,000,000
35 inhabitants may, by ordinance or resolution, adopt an
36 accelerated method of tax billing. The county board may

 

 

SB1484 - 37 - LRB094 10846 MKM 41371 b

1 subsequently rescind the ordinance or resolution and revert to
2 the method otherwise provided for in this Code.
3     Taxes levied on homestead property in which a member of the
4 National Guard or reserves of the armed forces of the United
5 States who was called to active duty on or after August 1,
6 1990, and who has an ownership interest shall not be deemed
7 delinquent and no interest shall accrue or be charged as a
8 penalty on such taxes due and payable in 1991 or 1992 until one
9 year after that member returns to civilian status.
10 (Source: P.A. 92-475, eff. 8-23-01; 93-560, eff. 8-20-03.)
 
11     Section 20. The School Code is amended by changing Sections
12 18-8.05 and 18-19 and by adding Section 18-25 as follows:
 
13     (105 ILCS 5/18-8.05)
14     Sec. 18-8.05. Basis for apportionment of general State
15 financial aid and supplemental general State aid to the common
16 schools for the 1998-1999 and subsequent school years.
 
17 (A) General Provisions.
18     (1) The provisions of this Section apply to the 1998-1999
19 and subsequent school years. The system of general State
20 financial aid provided for in this Section is designed to
21 assure that, through a combination of State financial aid and
22 required local resources, the financial support provided each
23 pupil in Average Daily Attendance equals or exceeds a
24 prescribed per pupil Foundation Level. This formula approach
25 imputes a level of per pupil Available Local Resources and
26 provides for the basis to calculate a per pupil level of
27 general State financial aid that, when added to Available Local
28 Resources, equals or exceeds the Foundation Level. The amount
29 of per pupil general State financial aid for school districts,
30 in general, varies in inverse relation to Available Local
31 Resources. Per pupil amounts are based upon each school
32 district's Average Daily Attendance as that term is defined in
33 this Section.

 

 

SB1484 - 38 - LRB094 10846 MKM 41371 b

1     (2) In addition to general State financial aid, school
2 districts with specified levels or concentrations of pupils
3 from low income households are eligible to receive supplemental
4 general State financial aid grants as provided pursuant to
5 subsection (H). The supplemental State aid grants provided for
6 school districts under subsection (H) shall be appropriated for
7 distribution to school districts as part of the same line item
8 in which the general State financial aid of school districts is
9 appropriated under this Section.
10     (3) To receive financial assistance under this Section,
11 school districts are required to file claims with the State
12 Board of Education, subject to the following requirements:
13         (a) Any school district which fails for any given
14     school year to maintain school as required by law, or to
15     maintain a recognized school is not eligible to file for
16     such school year any claim upon the Common School Fund. In
17     case of nonrecognition of one or more attendance centers in
18     a school district otherwise operating recognized schools,
19     the claim of the district shall be reduced in the
20     proportion which the Average Daily Attendance in the
21     attendance center or centers bear to the Average Daily
22     Attendance in the school district. A "recognized school"
23     means any public school which meets the standards as
24     established for recognition by the State Board of
25     Education. A school district or attendance center not
26     having recognition status at the end of a school term is
27     entitled to receive State aid payments due upon a legal
28     claim which was filed while it was recognized.
29         (b) School district claims filed under this Section are
30     subject to Sections 18-9, 18-10, and 18-12, except as
31     otherwise provided in this Section.
32         (c) If a school district operates a full year school
33     under Section 10-19.1, the general State aid to the school
34     district shall be determined by the State Board of
35     Education in accordance with this Section as near as may be
36     applicable.

 

 

SB1484 - 39 - LRB094 10846 MKM 41371 b

1         (d) (Blank).
2     (4) Except as provided in subsections (H) and (L), the
3 board of any district receiving any of the grants provided for
4 in this Section may apply those funds to any fund so received
5 for which that board is authorized to make 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 financial
14     support levels.
15         (b) "Available Local Resources": A computation of
16     local financial support, calculated on the basis of Average
17     Daily Attendance and derived as provided pursuant to
18     subsection (D).
19         (c) "Corporate Personal Property Replacement Taxes":
20     Funds paid to local school districts pursuant to "An Act in
21     relation to the abolition of ad valorem personal property
22     tax and the replacement of revenues lost thereby, and
23     amending and repealing certain Acts and parts of Acts in
24     connection therewith", certified August 14, 1979, as
25     amended (Public Act 81-1st S.S.-1).
26         (d) "Foundation Level": A prescribed level of per pupil
27     financial support as provided for in subsection (B).
28         (e) "Operating Tax Rate": All school district property
29     taxes extended for all purposes, except Bond and Interest,
30     Summer School, Rent, Capital Improvement, and Vocational
31     Education Building purposes.
 
32 (B) Foundation Level.
33     (1) The Foundation Level is a figure established by the
34 State representing the minimum level of per pupil financial
35 support that should be available to provide for the basic

 

 

SB1484 - 40 - LRB094 10846 MKM 41371 b

1 education of each pupil in Average Daily Attendance. As set
2 forth in this Section, each school district is assumed to exert
3 a sufficient local taxing effort such that, in combination with
4 the aggregate of general State financial aid provided the
5 district, an aggregate of State and local resources are
6 available to meet the basic education needs of pupils in the
7 district.
8     (2) For the 1998-1999 school year, the Foundation Level of
9 support is $4,225. For the 1999-2000 school year, the
10 Foundation Level of support is $4,325. For the 2000-2001 school
11 year, the Foundation Level of support is $4,425. For the
12 2001-2002 school year and 2002-2003 school year, the Foundation
13 Level of support is $4,560. For the 2003-2004 school year, the
14 Foundation Level of support is $4,810. For the 2004-2005 school
15 year, the Foundation Level of support is $4,964.
16     (3) For the 2005-2006 2004-2005 school year and each school
17 year thereafter, the Foundation Level of support is $5,964
18 $4,964 $5,060 or such greater amount as may be established by
19 law by the General Assembly.
 
20 (C) Average Daily Attendance.
21     (1) For purposes of calculating general State aid pursuant
22 to subsection (E), an Average Daily Attendance figure shall be
23 utilized. The Average Daily Attendance figure for formula
24 calculation purposes shall be the monthly average of the actual
25 number of pupils in attendance of each school district, as
26 further averaged for the best 3 months of pupil attendance for
27 each school district. In compiling the figures for the number
28 of pupils in attendance, school districts and the State Board
29 of Education shall, for purposes of general State aid funding,
30 conform attendance figures to the requirements of subsection
31 (F).
32     (2) The Average Daily Attendance figures utilized in
33 subsection (E) shall be the requisite attendance data for the
34 school year immediately preceding the school year for which
35 general State aid is being calculated or the average of the

 

 

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1 attendance data for the 3 preceding school years, whichever is
2 greater. The Average Daily Attendance figures utilized in
3 subsection (H) shall be the requisite attendance data for the
4 school year immediately preceding the school year for which
5 general State aid is being calculated.
 
6 (D) Available Local Resources.
7     (1) For purposes of calculating general State aid pursuant
8 to subsection (E), a representation of Available Local
9 Resources per pupil, as that term is defined and determined in
10 this subsection, shall be utilized. Available Local Resources
11 per pupil shall include a calculated dollar amount representing
12 local school district revenues from local property taxes and
13 from Corporate Personal Property Replacement Taxes, expressed
14 on the basis of pupils in Average Daily Attendance. Calculation
15 of Available Local Resources shall exclude any tax amnesty
16 funds received as a result of Public Act 93-26.
17     (2) In determining a school district's revenue from local
18 property taxes, the State Board of Education shall utilize the
19 equalized assessed valuation of all taxable property of each
20 school district as of September 30 of the previous year. The
21 equalized assessed valuation utilized shall be obtained and
22 determined as provided in subsection (G).
23     (3) For school districts maintaining grades kindergarten
24 through 12, local property tax revenues per pupil shall be
25 calculated as the product of the applicable equalized assessed
26 valuation for the district multiplied by 3.00%, and divided by
27 the district's Average Daily Attendance figure. For school
28 districts maintaining grades kindergarten through 8, local
29 property tax revenues per pupil shall be calculated as the
30 product of the applicable equalized assessed valuation for the
31 district multiplied by 2.30%, and divided by the district's
32 Average Daily Attendance figure. For school districts
33 maintaining grades 9 through 12, local property tax revenues
34 per pupil shall be the applicable equalized assessed valuation
35 of the district multiplied by 1.05%, and divided by the

 

 

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1 district's Average Daily Attendance figure.
2     (4) The Corporate Personal Property Replacement Taxes paid
3 to each school district during the calendar year 2 years before
4 the calendar year in which a school year begins, divided by the
5 Average Daily Attendance figure for that district, shall be
6 added to the local property tax revenues per pupil as derived
7 by the application of the immediately preceding paragraph (3).
8 The sum of these per pupil figures for each school district
9 shall constitute Available Local Resources as that term is
10 utilized in subsection (E) in the calculation of general State
11 aid.
 
12 (E) Computation of General State Aid.
13     (1) For each school year, the amount of general State aid
14 allotted to a school district shall be computed by the State
15 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 the
18 Foundation Level, general State aid for that district shall be
19 calculated as an amount equal to the Foundation Level minus
20 Available Local Resources, multiplied by the Average Daily
21 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 of
24 0.93 times the Foundation Level and less than the product of
25 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 algorithm,
28 the calculated general State aid per pupil shall decline in
29 direct linear fashion from 0.07 times the Foundation Level for
30 a school district with Available Local Resources equal to the
31 product of 0.93 times the Foundation Level, to 0.05 times the
32 Foundation Level for a school district with Available Local
33 Resources equal to the product of 1.75 times the Foundation
34 Level. The allocation of general State aid for school districts
35 subject to this paragraph 3 shall be the calculated general

 

 

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1 State aid per pupil figure multiplied by the Average Daily
2 Attendance of the school district.
3     (4) For any school district for which Available Local
4 Resources per pupil equals or exceeds the product of 1.75 times
5 the Foundation Level, the general State aid for the school
6 district shall be calculated as the product of $218 multiplied
7 by the Average Daily Attendance of the school district.
8     (5) The amount of general State aid allocated to a school
9 district for the 1999-2000 school year meeting the requirements
10 set forth in paragraph (4) of subsection (G) shall be increased
11 by an amount equal to the general State aid that would have
12 been received by the district for the 1998-1999 school year by
13 utilizing the Extension Limitation Equalized Assessed
14 Valuation as calculated in paragraph (4) of subsection (G) less
15 the general State aid allotted for the 1998-1999 school year.
16 This amount shall be deemed a one time increase, and shall not
17 affect any future general State aid allocations.
 
18 (F) Compilation of Average Daily Attendance.
19     (1) Each school district shall, by July 1 of each year,
20 submit to the State Board of Education, on forms prescribed by
21 the State Board of Education, attendance figures for the school
22 year that began in the preceding calendar year. The attendance
23 information so transmitted shall identify the average daily
24 attendance figures for each month of the school year. Beginning
25 with the general State aid claim form for the 2002-2003 school
26 year, districts shall calculate Average Daily Attendance as
27 provided in subdivisions (a), (b), and (c) of this paragraph
28 (1).
29         (a) In districts that do not hold year-round classes,
30     days of attendance in August shall be added to the month of
31     September and any days of attendance in June shall be added
32     to the month of May.
33         (b) In districts in which all buildings hold year-round
34     classes, days of attendance in July and August shall be
35     added to the month of September and any days of attendance

 

 

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1     in June shall be added to the month of May.
2         (c) In districts in which some buildings, but not all,
3     hold year-round classes, for the non-year-round buildings,
4     days of attendance in August shall be added to the month of
5     September and any days of attendance in June shall be added
6     to the month of May. The average daily attendance for the
7     year-round buildings shall be computed as provided in
8     subdivision (b) of this paragraph (1). To calculate the
9     Average Daily Attendance for the district, the average
10     daily attendance for the year-round buildings shall be
11     multiplied by the days in session for the non-year-round
12     buildings for each month and added to the monthly
13     attendance of the non-year-round buildings.
14     Except as otherwise provided in this Section, days of
15 attendance by pupils shall be counted only for sessions of not
16 less than 5 clock hours of school work per day under direct
17 supervision of: (i) teachers, or (ii) non-teaching personnel or
18 volunteer personnel when engaging in non-teaching duties and
19 supervising in those instances specified in subsection (a) of
20 Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
21 of legal school age and in kindergarten and grades 1 through
22 12.
23     Days of attendance by tuition pupils shall be accredited
24 only to the districts that pay the tuition to a recognized
25 school.
26     (2) Days of attendance by pupils of less than 5 clock hours
27 of school shall be subject to the following provisions in the
28 compilation of Average Daily Attendance.
29         (a) Pupils regularly enrolled in a public school for
30     only a part of the school day may be counted on the basis
31     of 1/6 day for every class hour of instruction of 40
32     minutes or more attended pursuant to such enrollment,
33     unless a pupil is enrolled in a block-schedule format of 80
34     minutes or more of instruction, in which case the pupil may
35     be counted on the basis of the proportion of minutes of
36     school work completed each day to the minimum number of

 

 

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1     minutes that school work is required to be held that day.
2         (b) Days of attendance may be less than 5 clock hours
3     on the opening and closing of the school term, and upon the
4     first day of pupil attendance, if preceded by a day or days
5     utilized as an institute or teachers' workshop.
6         (c) A session of 4 or more clock hours may be counted
7     as a day of attendance upon certification by the regional
8     superintendent, and approved by the State Superintendent
9     of Education to the extent that the district has been
10     forced to use daily multiple sessions.
11         (d) A session of 3 or more clock hours may be counted
12     as a day of attendance (1) when the remainder of the school
13     day or at least 2 hours in the evening of that day is
14     utilized for an in-service training program for teachers,
15     up to a maximum of 5 days per school year of which a
16     maximum of 4 days of such 5 days may be used for
17     parent-teacher conferences, provided a district conducts
18     an in-service training program for teachers which has been
19     approved by the State Superintendent of Education; or, in
20     lieu of 4 such days, 2 full days may be used, in which
21     event each such day may be counted as a day of attendance;
22     and (2) when days in addition to those provided in item (1)
23     are scheduled by a school pursuant to its school
24     improvement plan adopted under Article 34 or its revised or
25     amended school improvement plan adopted under Article 2,
26     provided that (i) such sessions of 3 or more clock hours
27     are scheduled to occur at regular intervals, (ii) the
28     remainder of the school days in which such sessions occur
29     are utilized for in-service training programs or other
30     staff development activities for teachers, and (iii) a
31     sufficient number of minutes of school work under the
32     direct supervision of teachers are added to the school days
33     between such regularly scheduled sessions to accumulate
34     not less than the number of minutes by which such sessions
35     of 3 or more clock hours fall short of 5 clock hours. Any
36     full days used for the purposes of this paragraph shall not

 

 

SB1484 - 46 - LRB094 10846 MKM 41371 b

1     be considered for computing average daily attendance. Days
2     scheduled for in-service training programs, staff
3     development activities, or parent-teacher conferences may
4     be scheduled separately for different grade levels and
5     different attendance centers of the district.
6         (e) A session of not less than one clock hour of
7     teaching hospitalized or homebound pupils on-site or by
8     telephone to the classroom may be counted as 1/2 day of
9     attendance, however these pupils must receive 4 or more
10     clock hours of instruction to be counted for a full day of
11     attendance.
12         (f) A session of at least 4 clock hours may be counted
13     as a day of attendance for first grade pupils, and pupils
14     in full day kindergartens, and a session of 2 or more hours
15     may be counted as 1/2 day of attendance by pupils in
16     kindergartens which provide only 1/2 day of attendance.
17         (g) For children with disabilities who are below the
18     age of 6 years and who cannot attend 2 or more clock hours
19     because of their disability or immaturity, a session of not
20     less than one clock hour may be counted as 1/2 day of
21     attendance; however for such children whose educational
22     needs so require a session of 4 or more clock hours may be
23     counted as a full day of attendance.
24         (h) A recognized kindergarten which provides for only
25     1/2 day of attendance by each pupil shall not have more
26     than 1/2 day of attendance counted in any one day. However,
27     kindergartens may count 2 1/2 days of attendance in any 5
28     consecutive school days. When a pupil attends such a
29     kindergarten for 2 half days on any one school day, the
30     pupil shall have the following day as a day absent from
31     school, unless the school district obtains permission in
32     writing from the State Superintendent of Education.
33     Attendance at kindergartens which provide for a full day of
34     attendance by each pupil shall be counted the same as
35     attendance by first grade pupils. Only the first year of
36     attendance in one kindergarten shall be counted, except in

 

 

SB1484 - 47 - LRB094 10846 MKM 41371 b

1     case of children who entered the kindergarten in their
2     fifth year whose educational development requires a second
3     year of kindergarten as determined under the rules and
4     regulations of the State Board of Education.
 
5 (G) Equalized Assessed Valuation Data.
6     (1) For purposes of the calculation of Available Local
7 Resources required pursuant to subsection (D), the State Board
8 of Education shall secure from the Department of Revenue the
9 value as equalized or assessed by the Department of Revenue of
10 all taxable property of every school district, together with
11 (i) the applicable tax rate used in extending taxes for the
12 funds of the district as of September 30 of the previous year
13 and (ii) the limiting rate for all school districts subject to
14 property tax extension limitations as imposed under the
15 Property Tax Extension Limitation Law.
16     The Department of Revenue shall add to the equalized
17 assessed value of all taxable property of each school district
18 situated entirely or partially within a county that is or was
19 subject to the alternative general homestead exemption
20 provisions of Section 15-176 of the Property Tax Code (a) (i)
21 an amount equal to the total amount by which the homestead
22 exemption allowed under Section 15-176 of the Property Tax Code
23 for real property situated in that school district exceeds the
24 total amount that would have been allowed in that school
25 district if the maximum reduction under Section 15-176 was (i)
26 $4,500 in Cook County or $3,500 in all other counties in tax
27 year 2003 or (ii) $5,000 in all counties in tax year 2004 and
28 thereafter and (b) (ii) an amount equal to the aggregate amount
29 for the taxable year of all additional exemptions under Section
30 15-175 of the Property Tax Code for owners with a household
31 income of $30,000 or less. The county clerk of any county that
32 is or was subject to the alternative general homestead
33 exemption provisions of Section 15-176 of the Property Tax Code
34 shall annually calculate and certify to the Department of
35 Revenue for each school district all homestead exemption

 

 

SB1484 - 48 - LRB094 10846 MKM 41371 b

1 amounts under Section 15-176 of the Property Tax Code and all
2 amounts of additional exemptions under Section 15-175 of the
3 Property Tax Code for owners with a household income of $30,000
4 or less. It is the intent of this paragraph that if the general
5 homestead exemption for a parcel of property is determined
6 under Section 15-176 of the Property Tax Code rather than
7 Section 15-175, then the calculation of Available Local
8 Resources shall not be affected by the difference, if any,
9 between the amount of the general homestead exemption allowed
10 for that parcel of property under Section 15-176 of the
11 Property Tax Code and the amount that would have been allowed
12 had the general homestead exemption for that parcel of property
13 been determined under Section 15-175 of the Property Tax Code.
14 It is further the intent of this paragraph that if additional
15 exemptions are allowed under Section 15-175 of the Property Tax
16 Code for owners with a household income of less than $30,000,
17 then the calculation of Available Local Resources shall not be
18 affected by the difference, if any, because of those additional
19 exemptions.
20     This equalized assessed valuation, as adjusted further by
21 the requirements of this subsection, shall be utilized in the
22 calculation of Available Local Resources.
23     (2) The equalized assessed valuation in paragraph (1) shall
24 be adjusted, as applicable, in the following manner:
25         (a) For the purposes of calculating State aid under
26     this Section, with respect to any part of a school district
27     within a redevelopment project area in respect to which a
28     municipality has adopted tax increment allocation
29     financing pursuant to the Tax Increment Allocation
30     Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
31     of the Illinois Municipal Code or the Industrial Jobs
32     Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
33     Illinois Municipal Code, no part of the current equalized
34     assessed valuation of real property located in any such
35     project area which is attributable to an increase above the
36     total initial equalized assessed valuation of such

 

 

SB1484 - 49 - LRB094 10846 MKM 41371 b

1     property shall be used as part of the equalized assessed
2     valuation of the district, until such time as all
3     redevelopment project costs have been paid, as provided in
4     Section 11-74.4-8 of the Tax Increment Allocation
5     Redevelopment Act or in Section 11-74.6-35 of the
6     Industrial Jobs Recovery Law. For the purpose of the
7     equalized assessed valuation of the district, the total
8     initial equalized assessed valuation or the current
9     equalized assessed valuation, whichever is lower, shall be
10     used until such time as all redevelopment project costs
11     have been paid.
12         (b) The real property equalized assessed valuation for
13     a school district shall be adjusted by subtracting from the
14     real property value as equalized or assessed by the
15     Department of Revenue for the district an amount computed
16     by dividing the amount of any abatement of taxes under
17     Section 18-170 of the Property Tax Code by 3.00% for a
18     district maintaining grades kindergarten through 12, by
19     2.30% for a district maintaining grades kindergarten
20     through 8, or by 1.05% for a district maintaining grades 9
21     through 12 and adjusted by an amount computed by dividing
22     the amount of any abatement of taxes under subsection (a)
23     of Section 18-165 of the Property Tax Code by the same
24     percentage rates for district type as specified in this
25     subparagraph (b).
26     (3) For the 1999-2000 school year and each school year
27 thereafter, if a school district meets all of the criteria of
28 this subsection (G)(3), the school district's Available Local
29 Resources shall be calculated under subsection (D) using the
30 district's Extension Limitation Equalized Assessed Valuation
31 as calculated under this subsection (G)(3).
32     For purposes of this subsection (G)(3) the following terms
33 shall have the following meanings:
34         "Budget Year": The school year for which general State
35     aid is calculated and awarded under subsection (E).
36         "Base Tax Year": The property tax levy year used to

 

 

SB1484 - 50 - LRB094 10846 MKM 41371 b

1     calculate the Budget Year allocation of general State aid.
2         "Preceding Tax Year": The property tax levy year
3     immediately preceding the Base Tax Year.
4         "Base Tax Year's Tax Extension": The product of the
5     equalized assessed valuation utilized by the County Clerk
6     in the Base Tax Year multiplied by the limiting rate as
7     calculated by the County Clerk and defined in the Property
8     Tax Extension Limitation Law.
9         "Preceding Tax Year's Tax Extension": The product of
10     the equalized assessed valuation utilized by the County
11     Clerk in the Preceding Tax Year multiplied by the Operating
12     Tax Rate as defined in subsection (A).
13         "Extension Limitation Ratio": A numerical ratio,
14     certified by the County Clerk, in which the numerator is
15     the Base Tax Year's Tax Extension and the denominator is
16     the Preceding Tax Year's Tax Extension.
17         "Operating Tax Rate": The operating tax rate as defined
18     in subsection (A).
19     If a school district is subject to property tax extension
20 limitations as imposed under the Property Tax Extension
21 Limitation Law, the State Board of Education shall calculate
22 the Extension Limitation Equalized Assessed Valuation of that
23 district. For the 1999-2000 school year, the Extension
24 Limitation Equalized Assessed Valuation of a school district as
25 calculated by the State Board of Education shall be equal to
26 the product of the district's 1996 Equalized Assessed Valuation
27 and the district's Extension Limitation Ratio. For the
28 2000-2001 school year and each school year thereafter, the
29 Extension Limitation Equalized Assessed Valuation of a school
30 district as calculated by the State Board of Education shall be
31 equal to the product of the Equalized Assessed Valuation last
32 used in the calculation of general State aid and the district's
33 Extension Limitation Ratio. If the Extension Limitation
34 Equalized Assessed Valuation of a school district as calculated
35 under this subsection (G)(3) is less than the district's
36 equalized assessed valuation as calculated pursuant to

 

 

SB1484 - 51 - LRB094 10846 MKM 41371 b

1 subsections (G)(1) and (G)(2), then for purposes of calculating
2 the district's general State aid for the Budget Year pursuant
3 to subsection (E), that Extension Limitation Equalized
4 Assessed Valuation shall be utilized to calculate the
5 district's Available Local Resources under subsection (D).
6     (4) For the purposes of calculating general State aid for
7 the 1999-2000 school year only, if a school district
8 experienced a triennial reassessment on the equalized assessed
9 valuation used in calculating its general State financial aid
10 apportionment for the 1998-1999 school year, the State Board of
11 Education shall calculate the Extension Limitation Equalized
12 Assessed Valuation that would have been used to calculate the
13 district's 1998-1999 general State aid. This amount shall equal
14 the product of the equalized assessed valuation used to
15 calculate general State aid for the 1997-1998 school year and
16 the district's Extension Limitation Ratio. If the Extension
17 Limitation Equalized Assessed Valuation of the school district
18 as calculated under this paragraph (4) is less than the
19 district's equalized assessed valuation utilized in
20 calculating the district's 1998-1999 general State aid
21 allocation, then for purposes of calculating the district's
22 general State aid pursuant to paragraph (5) of subsection (E),
23 that Extension Limitation Equalized Assessed Valuation shall
24 be utilized to calculate the district's Available Local
25 Resources.
26     (5) For school districts having a majority of their
27 equalized assessed valuation in any county except Cook, DuPage,
28 Kane, Lake, McHenry, or Will, if the amount of general State
29 aid allocated to the school district for the 1999-2000 school
30 year under the provisions of subsection (E), (H), and (J) of
31 this Section is less than the amount of general State aid
32 allocated to the district for the 1998-1999 school year under
33 these subsections, then the general State aid of the district
34 for the 1999-2000 school year only shall be increased by the
35 difference between these amounts. The total payments made under
36 this paragraph (5) shall not exceed $14,000,000. Claims shall

 

 

SB1484 - 52 - LRB094 10846 MKM 41371 b

1 be prorated if they exceed $14,000,000.
 
2 (H) Supplemental General State Aid.
3     (1) In addition to the general State aid a school district
4 is allotted pursuant to subsection (E), qualifying school
5 districts shall receive a grant, paid in conjunction with a
6 district's payments of general State aid, for supplemental
7 general State aid based upon the concentration level of
8 children from low-income households within the school
9 district. Supplemental State aid grants provided for school
10 districts under this subsection shall be appropriated for
11 distribution to school districts as part of the same line item
12 in which the general State financial aid of school districts is
13 appropriated under this Section. If the appropriation in any
14 fiscal year for general State aid and supplemental general
15 State aid is insufficient to pay the amounts required under the
16 general State aid and supplemental general State aid
17 calculations, then the State Board of Education shall ensure
18 that each school district receives the full amount due for
19 general State aid and the remainder of the appropriation shall
20 be used for supplemental general State aid, which the State
21 Board of Education shall calculate and pay to eligible
22 districts on a prorated basis.
23     (1.5) This paragraph (1.5) applies only to those school
24 years preceding the 2003-2004 school year. For purposes of this
25 subsection (H), the term "Low-Income Concentration Level"
26 shall be the low-income eligible pupil count from the most
27 recently available federal census divided by the Average Daily
28 Attendance of the school district. If, however, (i) the
29 percentage decrease from the 2 most recent federal censuses in
30 the low-income eligible pupil count of a high school district
31 with fewer than 400 students exceeds by 75% or more the
32 percentage change in the total low-income eligible pupil count
33 of contiguous elementary school districts, whose boundaries
34 are coterminous with the high school district, or (ii) a high
35 school district within 2 counties and serving 5 elementary

 

 

SB1484 - 53 - LRB094 10846 MKM 41371 b

1 school districts, whose boundaries are coterminous with the
2 high school district, has a percentage decrease from the 2 most
3 recent federal censuses in the low-income eligible pupil count
4 and there is a percentage increase in the total low-income
5 eligible pupil count of a majority of the elementary school
6 districts in excess of 50% from the 2 most recent federal
7 censuses, then the high school district's low-income eligible
8 pupil count from the earlier federal census shall be the number
9 used as the low-income eligible pupil count for the high school
10 district, for purposes of this subsection (H). The changes made
11 to this paragraph (1) by Public Act 92-28 shall apply to
12 supplemental general State aid grants for school years
13 preceding the 2003-2004 school year that are paid in fiscal
14 year 1999 or thereafter and to any State aid payments made in
15 fiscal year 1994 through fiscal year 1998 pursuant to
16 subsection 1(n) of Section 18-8 of this Code (which was
17 repealed on July 1, 1998), and any high school district that is
18 affected by Public Act 92-28 is entitled to a recomputation of
19 its supplemental general State aid grant or State aid paid in
20 any of those fiscal years. This recomputation shall not be
21 affected by any other funding.
22     (1.10) This paragraph (1.10) applies to the 2003-2004
23 school year and each school year thereafter. For purposes of
24 this subsection (H), the term "Low-Income Concentration Level"
25 shall, for each fiscal year, be the low-income eligible pupil
26 count as of July 1 of the immediately preceding fiscal year (as
27 determined by the Department of Human Services based on the
28 number of pupils who are eligible for at least one of the
29 following low income programs: Medicaid, KidCare, TANF, or Food
30 Stamps, excluding pupils who are eligible for services provided
31 by the Department of Children and Family Services, averaged
32 over the 2 immediately preceding fiscal years for fiscal year
33 2004 and over the 3 immediately preceding fiscal years for each
34 fiscal year thereafter) divided by the Average Daily Attendance
35 of the school district.
36     (2) Supplemental general State aid pursuant to this

 

 

SB1484 - 54 - LRB094 10846 MKM 41371 b

1 subsection (H) shall be provided as follows for the 1998-1999,
2 1999-2000, and 2000-2001 school years only:
3         (a) For any school district with a Low Income
4     Concentration Level of at least 20% and less than 35%, the
5     grant for any school year shall be $800 multiplied by the
6     low income eligible pupil count.
7         (b) For any school district with a Low Income
8     Concentration Level of at least 35% and less than 50%, the
9     grant for the 1998-1999 school year shall be $1,100
10     multiplied by the low income eligible pupil count.
11         (c) For any school district with a Low Income
12     Concentration Level of at least 50% and less than 60%, the
13     grant for the 1998-99 school year shall be $1,500
14     multiplied by the low income eligible pupil count.
15         (d) For any school district with a Low Income
16     Concentration Level of 60% or more, the grant for the
17     1998-99 school year shall be $1,900 multiplied by the low
18     income eligible pupil count.
19         (e) For the 1999-2000 school year, the per pupil amount
20     specified in subparagraphs (b), (c), and (d) immediately
21     above shall be increased to $1,243, $1,600, and $2,000,
22     respectively.
23         (f) For the 2000-2001 school year, the per pupil
24     amounts specified in subparagraphs (b), (c), and (d)
25     immediately above shall be $1,273, $1,640, and $2,050,
26     respectively.
27     (2.5) Supplemental general State aid pursuant to this
28 subsection (H) shall be provided as follows for the 2002-2003
29 school year:
30         (a) For any school district with a Low Income
31     Concentration Level of less than 10%, the grant for each
32     school year shall be $355 multiplied by the low income
33     eligible pupil count.
34         (b) For any school district with a Low Income
35     Concentration Level of at least 10% and less than 20%, the
36     grant for each school year shall be $675 multiplied by the

 

 

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1     low income eligible pupil count.
2         (c) For any school district with a Low Income
3     Concentration Level of at least 20% and less than 35%, the
4     grant for each school year shall be $1,330 multiplied by
5     the low income eligible pupil count.
6         (d) For any school district with a Low Income
7     Concentration Level of at least 35% and less than 50%, the
8     grant for each school year shall be $1,362 multiplied by
9     the low income eligible pupil count.
10         (e) For any school district with a Low Income
11     Concentration Level of at least 50% and less than 60%, the
12     grant for each school year shall be $1,680 multiplied by
13     the low income eligible pupil count.
14         (f) For any school district with a Low Income
15     Concentration Level of 60% or more, the grant for each
16     school year shall be $2,080 multiplied by the low income
17     eligible pupil count.
18     (2.10) Except as otherwise provided, supplemental general
19 State aid pursuant to this subsection (H) shall be provided as
20 follows for the 2003-2004 school year and each school year
21 thereafter:
22         (a) For any school district with a Low Income
23     Concentration Level of 15% or less, the grant for each
24     school year shall be $355 multiplied by the low income
25     eligible pupil count.
26         (b) For any school district with a Low Income
27     Concentration Level greater than 15%, the grant for each
28     school year shall be $294.25 added to the product of $2,700
29     and the square of the Low Income Concentration Level, all
30     multiplied by the low income eligible pupil count.
31     For the 2003-2004 and 2004-2005 school year only, the grant
32 shall be no less than the grant for the 2002-2003 school year.
33 For the 2005-2006 school year only, the grant shall be no less
34 than the grant for the 2002-2003 school year multiplied by
35 0.66. For the 2006-2007 school year only, the grant shall be no
36 less than the grant for the 2002-2003 school year multiplied by

 

 

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1 0.33.
2     For the 2003-2004 school year only, the grant shall be no
3 greater than the grant received during the 2002-2003 school
4 year added to the product of 0.25 multiplied by the difference
5 between the grant amount calculated under subsection (a) or (b)
6 of this paragraph (2.10), whichever is applicable, and the
7 grant received during the 2002-2003 school year. For the
8 2004-2005 school year only, the grant shall be no greater than
9 the grant received during the 2002-2003 school year added to
10 the product of 0.50 multiplied by the difference between the
11 grant amount calculated under subsection (a) or (b) of this
12 paragraph (2.10), whichever is applicable, and the grant
13 received during the 2002-2003 school year. For the 2005-2006
14 school year only, the grant shall be no greater than the grant
15 received during the 2002-2003 school year added to the product
16 of 0.75 multiplied by the difference between the grant amount
17 calculated under subsection (a) or (b) of this paragraph
18 (2.10), whichever is applicable, and the grant received during
19 the 2002-2003 school year.
20     (3) School districts with an Average Daily Attendance of
21 more than 1,000 and less than 50,000 that qualify for
22 supplemental general State aid pursuant to this subsection
23 shall submit a plan to the State Board of Education prior to
24 October 30 of each year for the use of the funds resulting from
25 this grant of supplemental general State aid for the
26 improvement of instruction in which priority is given to
27 meeting the education needs of disadvantaged children. Such
28 plan shall be submitted in accordance with rules and
29 regulations promulgated by the State Board of Education.
30     (4) School districts with an Average Daily Attendance of
31 50,000 or more that qualify for supplemental general State aid
32 pursuant to this subsection shall be required to distribute
33 from funds available pursuant to this Section, no less than
34 $261,000,000 in accordance with the following requirements:
35         (a) The required amounts shall be distributed to the
36     attendance centers within the district in proportion to the

 

 

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1     number of pupils enrolled at each attendance center who are
2     eligible to receive free or reduced-price lunches or
3     breakfasts under the federal Child Nutrition Act of 1966
4     and under the National School Lunch Act during the
5     immediately preceding school year.
6         (b) The distribution of these portions of supplemental
7     and general State aid among attendance centers according to
8     these requirements shall not be compensated for or
9     contravened by adjustments of the total of other funds
10     appropriated to any attendance centers, and the Board of
11     Education shall utilize funding from one or several sources
12     in order to fully implement this provision annually prior
13     to the opening of school.
14         (c) Each attendance center shall be provided by the
15     school district a distribution of noncategorical funds and
16     other categorical funds to which an attendance center is
17     entitled under law in order that the general State aid and
18     supplemental general State aid provided by application of
19     this subsection supplements rather than supplants the
20     noncategorical funds and other categorical funds provided
21     by the school district to the attendance centers.
22         (d) Any funds made available under this subsection that
23     by reason of the provisions of this subsection are not
24     required to be allocated and provided to attendance centers
25     may be used and appropriated by the board of the district
26     for any lawful school purpose.
27         (e) Funds received by an attendance center pursuant to
28     this subsection shall be used by the attendance center at
29     the discretion of the principal and local school council
30     for programs to improve educational opportunities at
31     qualifying schools through the following programs and
32     services: early childhood education, reduced class size or
33     improved adult to student classroom ratio, enrichment
34     programs, remedial assistance, attendance improvement, and
35     other educationally beneficial expenditures which
36     supplement the regular and basic programs as determined by

 

 

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1     the State Board of Education. Funds provided shall not be
2     expended for any political or lobbying purposes as defined
3     by board rule.
4         (f) Each district subject to the provisions of this
5     subdivision (H)(4) shall submit an acceptable plan to meet
6     the educational needs of disadvantaged children, in
7     compliance with the requirements of this paragraph, to the
8     State Board of Education prior to July 15 of each year.
9     This plan shall be consistent with the decisions of local
10     school councils concerning the school expenditure plans
11     developed in accordance with part 4 of Section 34-2.3. The
12     State Board shall approve or reject the plan within 60 days
13     after its submission. If the plan is rejected, the district
14     shall give written notice of intent to modify the plan
15     within 15 days of the notification of rejection and then
16     submit a modified plan within 30 days after the date of the
17     written notice of intent to modify. Districts may amend
18     approved plans pursuant to rules promulgated by the State
19     Board of Education.
20         Upon notification by the State Board of Education that
21     the district has not submitted a plan prior to July 15 or a
22     modified plan within the time period specified herein, the
23     State aid funds affected by that plan or modified plan
24     shall be withheld by the State Board of Education until a
25     plan or modified plan is submitted.
26         If the district fails to distribute State aid to
27     attendance centers in accordance with an approved plan, the
28     plan for the following year shall allocate funds, in
29     addition to the funds otherwise required by this
30     subsection, to those attendance centers which were
31     underfunded during the previous year in amounts equal to
32     such underfunding.
33         For purposes of determining compliance with this
34     subsection in relation to the requirements of attendance
35     center funding, each district subject to the provisions of
36     this subsection shall submit as a separate document by

 

 

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1     December 1 of each year a report of expenditure data for
2     the prior year in addition to any modification of its
3     current plan. If it is determined that there has been a
4     failure to comply with the expenditure provisions of this
5     subsection regarding contravention or supplanting, the
6     State Superintendent of Education shall, within 60 days of
7     receipt of the report, notify the district and any affected
8     local school council. The district shall within 45 days of
9     receipt of that notification inform the State
10     Superintendent of Education of the remedial or corrective
11     action to be taken, whether by amendment of the current
12     plan, if feasible, or by adjustment in the plan for the
13     following year. Failure to provide the expenditure report
14     or the notification of remedial or corrective action in a
15     timely manner shall result in a withholding of the affected
16     funds.
17         The State Board of Education shall promulgate rules and
18     regulations to implement the provisions of this
19     subsection. No funds shall be released under this
20     subdivision (H)(4) to any district that has not submitted a
21     plan that has been approved by the State Board of
22     Education.
 
23 (I) General State Aid for Newly Configured School Districts.
24     (1) For a new school district formed by combining property
25 included totally within 2 or more previously existing school
26 districts, for its first year of existence the general State
27 aid and supplemental general State aid calculated under this
28 Section shall be computed for the new district and for the
29 previously existing districts for which property is totally
30 included within the new district. If the computation on the
31 basis of the previously existing districts is greater, a
32 supplementary payment equal to the difference shall be made for
33 the first 4 years of existence of the new district.
34     (2) For a school district which annexes all of the
35 territory of one or more entire other school districts, for the

 

 

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1 first year during which the change of boundaries attributable
2 to such annexation becomes effective for all purposes as
3 determined under Section 7-9 or 7A-8, the general State aid and
4 supplemental general State aid calculated under this Section
5 shall be computed for the annexing district as constituted
6 after the annexation and for the annexing and each annexed
7 district as constituted prior to the annexation; and if the
8 computation on the basis of the annexing and annexed districts
9 as constituted prior to the annexation is greater, a
10 supplementary payment equal to the difference shall be made for
11 the first 4 years of existence of the annexing school district
12 as constituted upon such annexation.
13     (3) For 2 or more school districts which annex all of the
14 territory of one or more entire other school districts, and for
15 2 or more community unit districts which result upon the
16 division (pursuant to petition under Section 11A-2) of one or
17 more other unit school districts into 2 or more parts and which
18 together include all of the parts into which such other unit
19 school district or districts are so divided, for the first year
20 during which the change of boundaries attributable to such
21 annexation or division becomes effective for all purposes as
22 determined under Section 7-9 or 11A-10, as the case may be, the
23 general State aid and supplemental general State aid calculated
24 under this Section shall be computed for each annexing or
25 resulting district as constituted after the annexation or
26 division and for each annexing and annexed district, or for
27 each resulting and divided district, as constituted prior to
28 the annexation or division; and if the aggregate of the general
29 State aid and supplemental general State aid as so computed for
30 the annexing or resulting districts as constituted after the
31 annexation or division is less than the aggregate of the
32 general State aid and supplemental general State aid as so
33 computed for the annexing and annexed districts, or for the
34 resulting and divided districts, as constituted prior to the
35 annexation or division, then a supplementary payment equal to
36 the difference shall be made and allocated between or among the

 

 

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1 annexing or resulting districts, as constituted upon such
2 annexation or division, for the first 4 years of their
3 existence. The total difference payment shall be allocated
4 between or among the annexing or resulting districts in the
5 same ratio as the pupil enrollment from that portion of the
6 annexed or divided district or districts which is annexed to or
7 included in each such annexing or resulting district bears to
8 the total pupil enrollment from the entire annexed or divided
9 district or districts, as such pupil enrollment is determined
10 for the school year last ending prior to the date when the
11 change of boundaries attributable to the annexation or division
12 becomes effective for all purposes. The amount of the total
13 difference payment and the amount thereof to be allocated to
14 the annexing or resulting districts shall be computed by the
15 State Board of Education on the basis of pupil enrollment and
16 other data which shall be certified to the State Board of
17 Education, on forms which it shall provide for that purpose, by
18 the regional superintendent of schools for each educational
19 service region in which the annexing and annexed districts, or
20 resulting and divided districts are located.
21     (3.5) Claims for financial assistance under this
22 subsection (I) shall not be recomputed except as expressly
23 provided under this Section.
24     (4) Any supplementary payment made under this subsection
25 (I) shall be treated as separate from all other payments made
26 pursuant to this Section.
 
27 (J) Supplementary Grants in Aid.
28     (1) Notwithstanding any other provisions of this Section,
29 the amount of the aggregate general State aid in combination
30 with supplemental general State aid under this Section for
31 which each school district is eligible shall be no less than
32 the amount of the aggregate general State aid entitlement that
33 was received by the district under Section 18-8 (exclusive of
34 amounts received under subsections 5(p) and 5(p-5) of that
35 Section) for the 1997-98 school year, pursuant to the

 

 

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1 provisions of that Section as it was then in effect. If a
2 school district qualifies to receive a supplementary payment
3 made under this subsection (J), the amount of the aggregate
4 general State aid in combination with supplemental general
5 State aid under this Section which that district is eligible to
6 receive for each school year shall be no less than the amount
7 of the aggregate general State aid entitlement that was
8 received by the district under Section 18-8 (exclusive of
9 amounts received under subsections 5(p) and 5(p-5) of that
10 Section) for the 1997-1998 school year, pursuant to the
11 provisions of that Section as it was then in effect.
12     (2) If, as provided in paragraph (1) of this subsection
13 (J), a school district is to receive aggregate general State
14 aid in combination with supplemental general State aid under
15 this Section for the 1998-99 school year and any subsequent
16 school year that in any such school year is less than the
17 amount of the aggregate general State aid entitlement that the
18 district received for the 1997-98 school year, the school
19 district shall also receive, from a separate appropriation made
20 for purposes of this subsection (J), a supplementary payment
21 that is equal to the amount of the difference in the aggregate
22 State aid figures as described in paragraph (1).
23     (3) (Blank).
 
24 (K) Grants to Laboratory and Alternative Schools.
25     In calculating the amount to be paid to the governing board
26 of a public university that operates a laboratory school under
27 this Section or to any alternative school that is operated by a
28 regional superintendent of schools, the State Board of
29 Education shall require by rule such reporting requirements as
30 it deems necessary.
31     As used in this Section, "laboratory school" means a public
32 school which is created and operated by a public university and
33 approved by the State Board of Education. The governing board
34 of a public university which receives funds from the State
35 Board under this subsection (K) may not increase the number of

 

 

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

 

 

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1 Section, but not the supplemental general State aid, shall be
2 reduced by an amount equal to the budget for the operations of
3 the Authority as certified by the Authority to the State Board
4 of Education, and an amount equal to such reduction shall be
5 paid to the Authority created for such district for its
6 operating expenses in the manner provided in Section 18-11. The
7 remainder of general State school aid for any such district
8 shall be paid in accordance with Article 34A when that Article
9 provides for a disposition other than that provided by this
10 Article.
11     (2) (Blank).
12     (3) Summer school. Summer school payments shall be made as
13 provided in Section 18-4.3.
 
14 (M) Education Funding Advisory Board.
15     The Education Funding Advisory Board, hereinafter in this
16 subsection (M) referred to as the "Board", is hereby created.
17 The Board shall consist of 5 members who are appointed by the
18 Governor, by and with the advice and consent of the Senate. The
19 members appointed shall include representatives of education,
20 business, and the general public. One of the members so
21 appointed shall be designated by the Governor at the time the
22 appointment is made as the chairperson of the Board. The
23 initial members of the Board may be appointed any time after
24 the effective date of this amendatory Act of 1997. The regular
25 term of each member of the Board shall be for 4 years from the
26 third Monday of January of the year in which the term of the
27 member's appointment is to commence, except that of the 5
28 initial members appointed to serve on the Board, the member who
29 is appointed as the chairperson shall serve for a term that
30 commences on the date of his or her appointment and expires on
31 the third Monday of January, 2002, and the remaining 4 members,
32 by lots drawn at the first meeting of the Board that is held
33 after all 5 members are appointed, shall determine 2 of their
34 number to serve for terms that commence on the date of their
35 respective appointments and expire on the third Monday of

 

 

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1 January, 2001, and 2 of their number to serve for terms that
2 commence on the date of their respective appointments and
3 expire on the third Monday of January, 2000. All members
4 appointed to serve on the Board shall serve until their
5 respective successors are appointed and confirmed. Vacancies
6 shall be filled in the same manner as original appointments. If
7 a vacancy in membership occurs at a time when the Senate is not
8 in session, the Governor shall make a temporary appointment
9 until the next meeting of the Senate, when he or she shall
10 appoint, by and with the advice and consent of the Senate, a
11 person to fill that membership for the unexpired term. If the
12 Senate is not in session when the initial appointments are
13 made, those appointments shall be made as in the case of
14 vacancies.
15     The Education Funding Advisory Board shall be deemed
16 established, and the initial members appointed by the Governor
17 to serve as members of the Board shall take office, on the date
18 that the Governor makes his or her appointment of the fifth
19 initial member of the Board, whether those initial members are
20 then serving pursuant to appointment and confirmation or
21 pursuant to temporary appointments that are made by the
22 Governor as in the case of vacancies.
23     The State Board of Education shall provide such staff
24 assistance to the Education Funding Advisory Board as is
25 reasonably required for the proper performance by the Board of
26 its responsibilities.
27     For school years after the 2000-2001 school year, the
28 Education Funding Advisory Board, in consultation with the
29 State Board of Education, shall make recommendations as
30 provided in this subsection (M) to the General Assembly for the
31 foundation level under subsection (B) subdivision (B)(3) of
32 this Section and for the supplemental general State aid grant
33 level under subsection (H) of this Section for districts with
34 high concentrations of children from poverty. The recommended
35 foundation level shall be determined based on a methodology
36 which incorporates the basic education expenditures of

 

 

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1 low-spending schools exhibiting high academic performance. The
2 Education Funding Advisory Board shall make such
3 recommendations to the General Assembly on January 1 of odd
4 numbered years, beginning January 1, 2001.
 
5 (N) (Blank).
 
6 (O) References.
7     (1) References in other laws to the various subdivisions of
8 Section 18-8 as that Section existed before its repeal and
9 replacement by this Section 18-8.05 shall be deemed to refer to
10 the corresponding provisions of this Section 18-8.05, to the
11 extent that those references remain applicable.
12     (2) References in other laws to State Chapter 1 funds shall
13 be deemed to refer to the supplemental general State aid
14 provided under subsection (H) of this Section.
 
15 (P) Public Act 93-838 This amendatory Act of the 93rd General
16 Assembly and Public Act 93-808 House Bill 4266 of the 93rd
17 General Assembly make inconsistent changes to this Section. If
18 House Bill 4266 becomes law, then Under Section 6 of the
19 Statute on Statutes there is an irreconcilable conflict between
20 Public Act 93-808 and Public Act 93-838 House Bill 4266 and
21 this amendatory Act. Public Act 93-838 This amendatory Act,
22 being the last acted upon, is controlling. The text of Public
23 Act 93-838 this amendatory Act is the law regardless of the
24 text of Public Act 93-808 House Bill 4266.
25 (Source: P.A. 92-16, eff. 6-28-01; 92-28, eff. 7-1-01; 92-29,
26 eff. 7-1-01; 92-269, eff. 8-7-01; 92-604, eff. 7-1-02; 92-636,
27 eff. 7-11-02; 92-651, eff. 7-11-02; 93-21, eff. 7-1-03; 93-715,
28 eff. 7-12-04; 93-808, eff. 7-26-04; 93-838, eff. 7-30-04;
29 93-875, eff. 8-6-04; revised 10-21-04.)
 
30     (105 ILCS 5/18-19)  (from Ch. 122, par. 18-19)
31     Sec. 18-19. The State Board of Education shall may make
32 distributions of moneys monies from the Education Assistance

 

 

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1 Fund, pursuant to appropriation, in addition to such sums as
2 may have been otherwise appropriated for the same purpose, for
3 any of the purposes set forth in this Article, subject to the
4 same terms and conditions that apply to distributions under the
5 several sections of this Article, respectively, and as follows:
6         (1) $500,000,000 per year to the Higher Education
7     Operating Assistance Fund.
8         (2) Moneys to the School District Property Tax Relief
9     Fund, as specified in Section 6z-68 of the State Finance
10     Act.
11         (3) Moneys sufficient to fund the foundation level
12     increase under Section 18-8.05 of this Code provided in
13     this amendatory Act of the 94th General Assembly.
14 (Source: P.A. 86-18.)
 
15     (105 ILCS 5/18-25 new)
16     Sec. 18-25. Education Assistance Fund Board. The Education
17 Assistance Fund Board is established. The Board shall consist
18 of 4 members of the General Assembly. The Senate President, the
19 Senate Minority Leader, the Speaker of the House of
20 Representatives, and the House Minority Leader shall each
21 appoint one member to the Board. The members of the Board shall
22 designate one of the members to serve as chairperson. All
23 members shall serve until their respective successors are
24 appointed or until they cease to be members of the General
25 Assembly, whichever occurs first. Vacancies shall be filled in
26 the same manner as the original appointments.
27     For school years after the 2005-2006 school year and every
28 2 fiscal years thereafter, the Board must make a recommendation
29 to the General Assembly concerning appropriations from the
30 Education Assistance Fund. The Board must make its
31 recommendation to the General Assembly on April 1 of each even
32 numbered year, beginning on April 1, 2008.
 
33     Section 25. The Public Community College Act is amended by
34 changing Section 2-16.02 as follows:
 

 

 

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1     (110 ILCS 805/2-16.02)  (from Ch. 122, par. 102-16.02)
2     Sec. 2-16.02. Grants. Any community college district that
3 maintains a community college recognized by the State Board
4 shall receive, when eligible, grants enumerated in this
5 Section. Funded semester credit hours or other measures or both
6 as specified by the State Board shall be used to distribute
7 grants to community colleges. Funded semester credit hours
8 shall be defined, for purposes of this Section, as the greater
9 of (1) the number of semester credit hours, or equivalent, in
10 all funded instructional categories of students who have been
11 certified as being in attendance at midterm during the
12 respective terms of the base fiscal year or (2) the average of
13 semester credit hours, or equivalent, in all funded
14 instructional categories of students who have been certified as
15 being in attendance at midterm during the respective terms of
16 the base fiscal year and the 2 prior fiscal years. For purposes
17 of this Section, "base fiscal year" means the fiscal year 2
18 years prior to the fiscal year for which the grants are
19 appropriated. Such students shall have been residents of
20 Illinois and shall have been enrolled in courses that are part
21 of instructional program categories approved by the State Board
22 and that are applicable toward an associate degree or
23 certificate. Courses that are eligible for reimbursement are
24 those courses for which the district pays 50% or more of the
25 program costs from unrestricted revenue sources, with the
26 exception of courses offered by contract with the Department of
27 Corrections in correctional institutions. For the purposes of
28 this Section, "unrestricted revenue sources" means those
29 revenues in which the provider of the revenue imposes no
30 financial limitations upon the district as it relates to the
31 expenditure of the funds.
32     Base operating grants shall be paid based on rates per
33 funded semester credit hour or equivalent calculated by the
34 State Board for funded instructional categories using cost of
35 instruction, enrollment, inflation, and other relevant

 

 

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1 factors. A portion of the base operating grant shall be
2 allocated on the basis of non-residential gross square footage
3 of space maintained by the district.
4     Supplemental base operating grants shall be paid from the
5 Higher Education Operating Assistance Fund based on rates per
6 funded semester credit hour or equivalent calculated by the
7 State Board for funded instructional categories using cost of
8 instruction, enrollment, inflation, and other relevant
9 factors. A portion of the supplemental base operating grant
10 shall be allocated on the basis of non-residential gross square
11 footage of space maintained by the district.
12     Equalization grants shall be calculated by the State Board
13 by determining a local revenue factor for each district by: (A)
14 adding (1) each district's Corporate Personal Property
15 Replacement Fund allocations from the base fiscal year or the
16 average of the base fiscal year and prior year, whichever is
17 less, divided by the applicable statewide average tax rate to
18 (2) the district's most recently audited year's equalized
19 assessed valuation or the average of the most recently audited
20 year and prior year, whichever is less, (B) then dividing by
21 the district's audited full-time equivalent resident students
22 for the base fiscal year or the average for the base fiscal
23 year and the 2 prior fiscal years, whichever is greater, and
24 (C) then multiplying by the applicable statewide average tax
25 rate. The State Board shall calculate a statewide weighted
26 average threshold by applying the same methodology to the
27 totals of all districts' Corporate Personal Property Tax
28 Replacement Fund allocations, equalized assessed valuations,
29 and audited full-time equivalent district resident students
30 and multiplying by the applicable statewide average tax rate.
31 The difference between the statewide weighted average
32 threshold and the local revenue factor, multiplied by the
33 number of full-time equivalent resident students, shall
34 determine the amount of equalization funding that each district
35 is eligible to receive. A percentage factor, as determined by
36 the State Board, may be applied to the statewide threshold as a

 

 

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1 method for allocating equalization funding. A minimum
2 equalization grant of an amount per district as determined by
3 the State Board shall be established for any community college
4 district which qualifies for an equalization grant based upon
5 the preceding criteria, but becomes ineligible for
6 equalization funding, or would have received a grant of less
7 than the minimum equalization grant, due to threshold
8 prorations applied to reduce equalization funding. As of July
9 1, 2004, a community college district must maintain a minimum
10 required combined in-district tuition and universal fee rate
11 per semester credit hour equal to 85% of the State-average
12 combined rate, as determined by the State Board, for
13 equalization funding. As of July 1, 2004, a community college
14 district must maintain a minimum required operating tax rate
15 equal to at least 95% of its maximum authorized tax rate to
16 qualify for equalization funding. This 95% minimum tax rate
17 requirement shall be based upon the maximum operating tax rate
18 as limited by the Property Tax Extension Limitation Law.
19     The State Board shall distribute such other grants as may
20 be authorized or appropriated by the General Assembly.
21     Each community college district entitled to State grants
22 under this Section must submit a report of its enrollment to
23 the State Board not later than 30 days following the end of
24 each semester, quarter, or term in a format prescribed by the
25 State Board. These semester credit hours, or equivalent, shall
26 be certified by each district on forms provided by the State
27 Board. Each district's certified semester credit hours, or
28 equivalent, are subject to audit pursuant to Section 3-22.1.
29     The State Board shall certify, prepare, and submit to the
30 State Comptroller during August, November, February, and May of
31 each fiscal year vouchers setting forth an amount equal to 25%
32 of the grants approved by the State Board for base operating
33 grants and equalization grants. The State Board shall prepare
34 and submit to the State Comptroller vouchers for payments of
35 other grants as appropriated by the General Assembly. If the
36 amount appropriated for grants is different from the amount

 

 

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1 provided for such grants under this Act, the grants shall be
2 proportionately reduced or increased accordingly.
3     For the purposes of this Section, "resident student" means
4 a student in a community college district who maintains
5 residency in that district or meets other residency definitions
6 established by the State Board, and who was enrolled either in
7 one of the approved instructional program categories in that
8 district, or in another community college district to which the
9 resident's district is paying tuition under Section 6-2 or with
10 which the resident's district has entered into a cooperative
11 agreement in lieu of such tuition.
12     For the purposes of this Section, a "full-time equivalent"
13 student is equal to 30 semester credit hours.
14     The Illinois Community College Board Contracts and Grants
15 Fund is hereby created in the State Treasury. Items of income
16 to this fund shall include any grants, awards, endowments, or
17 like proceeds, and where appropriate, other funds made
18 available through contracts with governmental, public, and
19 private agencies or persons. The General Assembly shall from
20 time to time make appropriations payable from such fund for the
21 support, improvement, and expenses of the State Board and
22 Illinois community college districts.
23 (Source: P.A. 93-21, eff. 7-1-03.)
 
24     Section 99. Effective date. This Act takes effect upon
25 becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3     30 ILCS 105/5.640 new
4     30 ILCS 105/5.645 new
5     30 ILCS 105/6z-68 new
6     30 ILCS 105/6z-69 new
7     30 ILCS 105/8h
8     35 ILCS 5/201 from Ch. 120, par. 2-201
9     35 ILCS 5/901 from Ch. 120, par. 9-901
10     35 ILCS 200/18-178 new
11     35 ILCS 200/18-255
12     35 ILCS 200/20-15
13     35 ILCS 200/21-30
14     105 ILCS 5/18-8.05
15     105 ILCS 5/18-19 from Ch. 122, par. 18-19
16     105 ILCS 5/18-25 new
17     110 ILCS 805/2-16.02 from Ch. 122, par. 102-16.02