Sen. James F. Clayborne, Jr.

Filed: 5/1/2012

 

 


 

 


 
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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 between a school district and the
7State Board of Education for management oversight or an
8independent authority under Section 2-3.25f of this Code. The
9Illinois Finance Authority may provide loans to school
10districts which are the subject of an approved petition for
11emergency financial assistance under Section 1B-4, 1F-62, or
121H-65, or 2-3.25f of this Code. Neither the State Board of
13Education nor the Illinois Finance Authority may collect any
14fees for providing these services.
15    From the amount allocated to each such school district
16under this Article the State Board shall identify a sum
17sufficient to cover all approved costs of the Financial
18Oversight Panel or intergovernmental agreement between a
19school district and the State Board of Education for management
20oversight or an independent authority established for the
21respective school district. If the State Board and State
22Superintendent of Education have not approved emergency
23financial assistance in conjunction with the appointment of a
24Financial Oversight Panel or the entry into an
25intergovernmental agreement between a school district and the
26State Board of Education for management oversight or an

 

 

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1independent authority, the Panel's approved costs shall be paid
2from deductions from the district's general State aid.
3    The Financial Oversight Panel or a school board that has
4entered into an intergovernmental agreement between the school
5district and the State Board of Education for management
6oversight or an independent authority may prepare and file with
7the State Superintendent a proposal for emergency financial
8assistance for the school district and for its operations
9budget. No expenditures from the Fund shall be authorized by
10the State Superintendent until he or she has approved the
11request of the Panel or the school board, either as submitted
12or in such lesser amount determined by the State
13Superintendent.
14    The maximum amount of an emergency financial assistance
15loan which may be allocated to any school district under this
16Article, including moneys necessary for the operations of any
17Financial Oversight the Panel, shall not exceed $4,000 times
18the number of pupils enrolled in the school district during the
19school year ending June 30 prior to the date of approval by the
20State Board of the petition for emergency financial assistance,
21as certified to the school local board or and the Panel or both
22by the State Superintendent. An emergency financial assistance
23grant shall not exceed $2,000 $1,000 times the number of such
24pupils. A school district may receive both a loan and a grant.
25    The payment of an emergency State financial assistance
26grant or loan shall be subject to appropriation by the General

 

 

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1Assembly. Payment of the emergency State financial assistance
2loan is subject to the applicable provisions of the Illinois
3Finance Authority Act. Emergency State financial assistance
4allocated and paid to a school district under this Article may
5be applied to any fund or funds from which the local board of
6education of that district is authorized to make expenditures
7by law.
8    Any emergency financial assistance grant proposed by the
9Financial Oversight Panel or the school board that has entered
10into an intergovernmental agreement between the school
11district and the State Board of Education for management
12oversight or an independent authority and approved by the State
13Superintendent may be paid in its entirety during the initial
14year of the Panel's existence or the term of the
15intergovernmental agreement between the school district and
16the State Board of Education for management oversight or an
17independent authority or spread in equal or declining amounts
18over a period of years not to exceed the period of the Panel's
19existence or the term of the intergovernmental agreement
20between the school district and the State Board of Education
21for management oversight or an independent authority. An
22emergency financial assistance loan proposed by the Financial
23Oversight Panel or the school board that has entered into an
24intergovernmental agreement between the school district and
25the State Board of Education for management oversight or an
26independent authority and approved by the Illinois Finance

 

 

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1Authority may be paid in its entirety during the initial year
2of the Panel's existence or the term of the intergovernmental
3agreement between the school district and the State Board of
4Education for management oversight or an independent authority
5or spread in equal or declining amounts over a period of years
6not to exceed the period of the Panel's existence or the term
7of the intergovernmental agreement between the school district
8and the State Board of Education for management oversight or an
9independent authority. All loans made by the Illinois Finance
10Authority for a school district shall be required to be repaid,
11with simple interest over the term of the loan at a rate equal
12to 50% of the one-year Constant Maturity Treasury (CMT) yield
13as last published by the Board of Governors of the Federal
14Reserve System before the date on which the district's loan is
15approved by the Illinois Finance Authority, not later than the
16date the Financial Oversight Panel ceases to exist or the
17expiration of the intergovernmental agreement between the
18school district and the State Board of Education for management
19oversight or an independent authority. The Panel or the school
20board that has entered into an intergovernmental agreement
21between the school district and the State Board of Education
22for management oversight or an independent authority shall
23establish and the Illinois Finance Authority shall approve the
24terms and conditions, including the schedule, of repayments.
25The schedule shall provide for repayments commencing July 1 of
26each year or upon each fiscal year's receipt of moneys from a

 

 

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1tax levy for emergency financial assistance. Repayment shall be
2incorporated into the annual budget of the school district and
3may be made from any fund or funds of the district in which
4there are moneys available. An emergency financial assistance
5loan to the Panel or school district shall not be considered
6part of the calculation of a school district's debt for
7purposes of the limitation specified in Section 19-1 of this
8Code. Default on repayment is subject to the Illinois Grant
9Funds Recovery Act. When moneys are repaid as provided herein
10they shall not be made available to the school local board for
11further use as emergency financial assistance under this
12Article at any time thereafter. All repayments required to be
13made by a school district shall be received by the State Board
14and deposited in the School District Emergency Financial
15Assistance Fund.
16    In establishing the terms and conditions for the repayment
17obligation of the school district, the Panel or the school
18board that has entered into an intergovernmental agreement
19between the school district and the State Board of Education
20for management oversight or an independent authority shall
21annually determine whether a separate local property tax levy
22is required. The school board of any school district with a tax
23rate for educational purposes for the prior year of less than
24120% of the maximum rate for educational purposes authorized by
25Section 17-2 shall provide for a separate tax levy for
26emergency financial assistance repayment purposes. Such tax

 

 

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1levy shall not be subject to referendum approval. The amount of
2the levy shall be equal to the amount necessary to meet the
3annual repayment obligations of the school district as
4established by the Panel or the school board that has entered
5into an intergovernmental agreement between the school
6district and the State Board of Education for management
7oversight or an independent authority, or 20% of the amount
8levied for educational purposes for the prior year, whichever
9is less. However, no school district shall be required to levy
10the tax if the district's operating tax rate as determined
11under Section 18-8 or 18-8.05 exceeds 200% of the district's
12tax rate for educational purposes for the prior year.
13(Source: P.A. 97-429, eff. 8-16-11.)
 
14    (105 ILCS 5/2-3.25f)  (from Ch. 122, par. 2-3.25f)
15    Sec. 2-3.25f. State interventions.
16    (a) The State Board of Education shall provide technical
17assistance to assist with the development and implementation of
18School and District Improvement Plans.
19    Schools or school districts that fail to make reasonable
20efforts to implement an approved Improvement Plan may suffer
21loss of State funds by school district, attendance center, or
22program as the State Board of Education deems appropriate.
23    (a-5) In this subsection (a-5), "school" means any of the
24following named public schools or their successor name:
25        (1) Dirksen Middle School in Dolton School District

 

 

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1    149.
2        (2) Diekman Elementary School in Dolton School
3    District 149.
4        (3) Caroline Sibley Elementary School in Dolton School
5    District 149.
6        (4) Berger-Vandenberg Elementary School in Dolton
7    School District 149.
8        (5) Carol Moseley Braun School in Dolton School
9    District 149.
10        (6) New Beginnings Learning Academy in Dolton School
11    District 149.
12        (7) McKinley Junior High School in South Holland School
13    District 150.
14        (8) Greenwood Elementary School in South Holland
15    School District 150.
16        (9) McKinley Elementary School in South Holland School
17    District 150.
18        (10) Eisenhower School in South Holland School
19    District 151.
20        (11) Madison School in South Holland School District
21    151.
22        (12) Taft School in South Holland School District 151.
23        (13) Wolcott School in Thornton School District 154.
24        (14) Memorial Junior High School in Lansing School
25    District 158.
26        (15) Oak Glen Elementary School in Lansing School

 

 

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

 

 

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

 

 

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

 

 

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1federal Elementary and Secondary Education Act of 1965.
2(Source: P.A. 97-370, eff. 1-1-12.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".