Sen. James F. Clayborne, Jr.

Filed: 4/30/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2984

2    AMENDMENT NO. ______. Amend House Bill 2984 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The School Code is amended by changing Sections
51B-8 and 2-3.25f as follows:
 
6    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
7    Sec. 1B-8. There is created in the State Treasury a special
8fund to be known as the School District Emergency Financial
9Assistance Fund (the "Fund"). The School District Emergency
10Financial Assistance Fund shall consist of appropriations,
11loan repayments, grants from the federal government, and
12donations from any public or private source. Moneys in the Fund
13may be appropriated only to the Illinois Finance Authority and
14the State Board for those purposes authorized under this
15Article and Articles 1F and 1H and Section 2-3.25f of this
16Code. The appropriation may be allocated and expended by the

 

 

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1State Board for contractual services to provide technical
2assistance or consultation to school districts to assess their
3financial condition and to Financial Oversight Panels that
4petition for emergency financial assistance grants and as
5necessary to fulfill the goals and obligations of an
6Intergovernmental Agreement for management oversight under
7Section 2-3.25f of this Code. The Illinois Finance Authority
8may provide loans to school districts which are the subject of
9an approved petition for emergency financial assistance under
10Section 1B-4, 1F-62, or 1H-65, or 2-3.25f of this Code. Neither
11the State Board of Education nor the Illinois Finance Authority
12may collect any fees for providing these services.
13    From the amount allocated to each such school district
14under this Article the State Board shall identify a sum
15sufficient to cover all approved costs of the Financial
16Oversight Panel or Intergovernmental Agreement for management
17oversight established for the respective school district. If
18the State Board and State Superintendent of Education have not
19approved emergency financial assistance in conjunction with
20the appointment of a Financial Oversight Panel or the entry
21into an Intergovernmental Agreement for management oversight,
22the Panel's approved costs shall be paid from deductions from
23the district's general State aid.
24    The Financial Oversight Panel or a school board that has
25entered into an Intergovernmental Agreement for management
26oversight may prepare and file with the State Superintendent a

 

 

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1proposal for emergency financial assistance for the school
2district and for its operations budget. No expenditures from
3the Fund shall be authorized by the State Superintendent until
4he or she has approved the request of the Panel or the school
5board, either as submitted or in such lesser amount determined
6by the State Superintendent.
7    The maximum amount of an emergency financial assistance
8loan which may be allocated to any school district under this
9Article, including moneys necessary for the operations of any
10Financial Oversight the Panel, shall not exceed $4,000 times
11the number of pupils enrolled in the school district during the
12school year ending June 30 prior to the date of approval by the
13State Board of the petition for emergency financial assistance,
14as certified to the school local board or and the Panel or both
15by the State Superintendent. An emergency financial assistance
16grant shall not exceed $2,000 $1,000 times the number of such
17pupils. A school district may receive both a loan and a grant.
18    The payment of an emergency State financial assistance
19grant or loan shall be subject to appropriation by the General
20Assembly. Payment of the emergency State financial assistance
21loan is subject to the applicable provisions of the Illinois
22Finance Authority Act. Emergency State financial assistance
23allocated and paid to a school district under this Article may
24be applied to any fund or funds from which the local board of
25education of that district is authorized to make expenditures
26by law.

 

 

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1    Any emergency financial assistance grant proposed by the
2Financial Oversight Panel or the school board that has entered
3into an Intergovernmental Agreement for management oversight
4and approved by the State Superintendent may be paid in its
5entirety during the initial year of the Panel's existence or
6the term of the Intergovernmental Agreement for management
7oversight or spread in equal or declining amounts over a period
8of years not to exceed the period of the Panel's existence or
9the term of the Intergovernmental Agreement for management
10oversight. An emergency financial assistance loan proposed by
11the Financial Oversight Panel or the school board that has
12entered into an Intergovernmental Agreement for management
13oversight and approved by the Illinois Finance Authority may be
14paid in its entirety during the initial year of the Panel's
15existence or the term of the Intergovernmental Agreement for
16management oversight or spread in equal or declining amounts
17over a period of years not to exceed the period of the Panel's
18existence or the term of the Intergovernmental Agreement for
19management oversight. All loans made by the Illinois Finance
20Authority for a school district shall be required to be repaid,
21with simple interest over the term of the loan at a rate equal
22to 50% of the one-year Constant Maturity Treasury (CMT) yield
23as last published by the Board of Governors of the Federal
24Reserve System before the date on which the district's loan is
25approved by the Illinois Finance Authority, not later than the
26date the Financial Oversight Panel ceases to exist or the

 

 

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1expiration of the Intergovernmental Agreement for management
2oversight. The Panel or the school board that has entered into
3an Intergovernmental Agreement for management oversight shall
4establish and the Illinois Finance Authority shall approve the
5terms and conditions, including the schedule, of repayments.
6The schedule shall provide for repayments commencing July 1 of
7each year or upon each fiscal year's receipt of moneys from a
8tax levy for emergency financial assistance. Repayment shall be
9incorporated into the annual budget of the school district and
10may be made from any fund or funds of the district in which
11there are moneys available. An emergency financial assistance
12loan to the Panel or school district shall not be considered
13part of the calculation of a school district's debt for
14purposes of the limitation specified in Section 19-1 of this
15Code. Default on repayment is subject to the Illinois Grant
16Funds Recovery Act. When moneys are repaid as provided herein
17they shall not be made available to the school local board for
18further use as emergency financial assistance under this
19Article at any time thereafter. All repayments required to be
20made by a school district shall be received by the State Board
21and deposited in the School District Emergency Financial
22Assistance Fund.
23    In establishing the terms and conditions for the repayment
24obligation of the school district, the Panel or the school
25board that has entered into an Intergovernmental Agreement for
26management oversight shall annually determine whether a

 

 

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1separate local property tax levy is required. The school board
2of any school district with a tax rate for educational purposes
3for the prior year of less than 120% of the maximum rate for
4educational purposes authorized by Section 17-2 shall provide
5for a separate tax levy for emergency financial assistance
6repayment purposes. Such tax levy shall not be subject to
7referendum approval. The amount of the levy shall be equal to
8the amount necessary to meet the annual repayment obligations
9of the school district as established by the Panel or the
10school board that has entered into an Intergovernmental
11Agreement for management oversight, or 20% of the amount levied
12for educational purposes for the prior year, whichever is less.
13However, no school district shall be required to levy the tax
14if the district's operating tax rate as determined under
15Section 18-8 or 18-8.05 exceeds 200% of the district's tax rate
16for educational purposes for the prior year.
17(Source: P.A. 97-429, eff. 8-16-11.)
 
18    (105 ILCS 5/2-3.25f)  (from Ch. 122, par. 2-3.25f)
19    Sec. 2-3.25f. State interventions.
20    (a) The State Board of Education shall provide technical
21assistance to assist with the development and implementation of
22School and District Improvement Plans.
23    Schools or school districts that fail to make reasonable
24efforts to implement an approved Improvement Plan may suffer
25loss of State funds by school district, attendance center, or

 

 

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1program as the State Board of Education deems appropriate.
2    (a-5) In this subsection (a-5), "school" means any of the
3following named public schools or their successor name:
4        (1) Dirksen Middle School in Dolton School District
5    149.
6        (2) Diekman Elementary School in Dolton School
7    District 149.
8        (3) Caroline Sibley Elementary School in Dolton School
9    District 149.
10        (4) Berger-Vandenberg Elementary School in Dolton
11    School District 149.
12        (5) Carol Moseley Braun School in Dolton School
13    District 149.
14        (6) New Beginnings Learning Academy in Dolton School
15    District 149.
16        (7) McKinley Junior High School in South Holland School
17    District 150.
18        (8) Greenwood Elementary School in South Holland
19    School District 150.
20        (9) McKinley Elementary School in South Holland School
21    District 150.
22        (10) Eisenhower School in South Holland School
23    District 151.
24        (11) Madison School in South Holland School District
25    151.
26        (12) Taft School in South Holland School District 151.

 

 

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1        (13) Wolcott School in Thornton School District 154.
2        (14) Memorial Junior High School in Lansing School
3    District 158.
4        (15) Oak Glen Elementary School in Lansing School
5    District 158.
6        (16) Lester Crawl Primary Center in Lansing School
7    District 158.
8        (17) Brookwood Junior High School in Brookwood School
9    District 167.
10        (18) Brookwood Middle School in Brookwood School
11    District 167.
12        (19) Hickory Bend Elementary School in Brookwood
13    School District 167.
14        (20) Medgar Evers Primary Academic Center in Ford
15    Heights School District 169.
16        (21) Nathan Hale Elementary School in Sunnybrook
17    School District 171.
18        (22) Ira F. Aldridge Elementary School in City of
19    Chicago School District 299.
20        (23) William E.B. DuBois Elementary School in City of
21    Chicago School District 299.
22    If, after 2 years following its placement on academic watch
23status, a school remains on academic watch status, then,
24subject to federal appropriation money being available, the
25State Board of Education shall allow the school board to opt in
26the process of operating that school on a pilot full-year

 

 

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1school plan approved by the State Board of Education upon
2expiration of its teachers' current collective bargaining
3agreement until the expiration of the next collective
4bargaining agreement. A school board must notify the State
5Board of Education of its intent to opt in the process of
6operating a school on a pilot full-year school plan.
7    (b) In addition, if after 3 years following its placement
8on academic watch status a school district or school remains on
9academic watch status, the State Board of Education shall take
10one of the following actions for the district or school:
11        (1) The State Board of Education may authorize the
12    State Superintendent of Education to direct the regional
13    superintendent of schools to remove school board members
14    pursuant to Section 3-14.28 of this Code. Prior to such
15    direction the State Board of Education shall permit members
16    of the local board of education to present written and oral
17    comments to the State Board of Education. The State Board
18    of Education may direct the State Superintendent of
19    Education to appoint an Independent Authority that shall
20    exercise such powers and duties as may be necessary to
21    operate a school or school district for purposes of
22    improving pupil performance and school improvement. The
23    State Superintendent of Education shall designate one
24    member of the Independent Authority to serve as chairman.
25    The Independent Authority shall serve for a period of time
26    specified by the State Board of Education upon the

 

 

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1    recommendation of the State Superintendent of Education.
2        (2) The State Board of Education may (A) change the
3    recognition status of the school district or school to
4    nonrecognized, or (B) authorize the State Superintendent
5    of Education to direct the reassignment of pupils or direct
6    the reassignment or replacement of school district
7    personnel who are relevant to the failure to meet adequate
8    yearly progress criteria. If a school district is
9    nonrecognized in its entirety, it shall automatically be
10    dissolved on July 1 following that nonrecognition and its
11    territory realigned with another school district or
12    districts by the regional board of school trustees in
13    accordance with the procedures set forth in Section 7-11 of
14    the School Code. The effective date of the nonrecognition
15    of a school shall be July 1 following the nonrecognition.
16        (3) The State Board of Education may enter into an
17    Intergovernmental Agreement, pursuant to the
18    Intergovernmental Cooperation Act and the Constitution of
19    the State of Illinois, with the school board for the school
20    district or school for management oversight of the planning
21    and operations of the school district or school by the
22    State Board of Education. A school board that enters into
23    an Intergovernmental Agreement with the State Board of
24    Education under this paragraph (3) may prepare and file
25    with the State Superintendent of Eduction a proposal for
26    emergency financial assistance for the school district in

 

 

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1    accordance with Section 1B-8 of this Code. A school
2    district may receive both a loan and a grant.
3    (c) All federal requirements apply to schools and school
4districts utilizing federal funds under Title I, Part A of the
5federal Elementary and Secondary Education Act of 1965.
6(Source: P.A. 97-370, eff. 1-1-12.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".