Full Text of HB4469 99th General Assembly
HB4469 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4469 Introduced , by Rep. Norine Hammond SYNOPSIS AS INTRODUCED: |
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Amends the Conversion and Formation of School Districts Article of the School Code. Requires the General Assembly to appropriate a sufficient amount each fiscal year to fully fund the payments required to be made under a Section concerning incentives.
Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 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 School Code is amended by changing Section | 5 | | 11E-135 as follows: | 6 | | (105 ILCS 5/11E-135) | 7 | | Sec. 11E-135. Incentives. For districts reorganizing under | 8 | | this Article and for a district or districts that annex all of | 9 | | the territory of one or more entire other school districts in | 10 | | accordance with Article 7 of this Code, the following payments | 11 | | shall be made from appropriations made for these purposes and | 12 | | the General Assembly must appropriate a sufficient amount each | 13 | | fiscal year to fully fund these payments : | 14 | | (a)(1) For a combined school district, as defined in | 15 | | Section 11E-20 of this Code, or for a unit district, as defined | 16 | | in Section 11E-25 of this Code, for its first year of | 17 | | existence, the general State aid and supplemental general State | 18 | | aid calculated under Section 18-8.05 of this Code shall be | 19 | | computed for the new district and for the previously existing | 20 | | districts for which property is totally included within the new | 21 | | district. If the computation on the basis of the previously | 22 | | existing districts is greater, a supplementary payment equal to | 23 | | the difference shall be made for the first 4 years of existence |
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| 1 | | of the new district. | 2 | | (2) For a school district that annexes all of the territory | 3 | | of one or more entire other school districts as defined in | 4 | | Article 7 of this Code, for the first year during which the | 5 | | change of boundaries attributable to the annexation becomes | 6 | | effective for all purposes, as determined under Section 7-9 of | 7 | | this Code, the general State aid and supplemental general State | 8 | | aid calculated under Section 18-8.05 of this Code shall be | 9 | | computed for the annexing district as constituted after the | 10 | | annexation and for the annexing and each annexed district as | 11 | | constituted prior to the annexation; and if the computation on | 12 | | the basis of the annexing and annexed districts as constituted | 13 | | prior to the annexation is greater, then a supplementary | 14 | | payment equal to the difference shall be made for the first 4 | 15 | | years of existence of the annexing school district as | 16 | | constituted upon the annexation. | 17 | | (3) For 2 or more school districts that annex all of the | 18 | | territory of one or more entire other school districts, as | 19 | | defined in Article 7 of this Code, for the first year during | 20 | | which the change of boundaries attributable to the annexation | 21 | | becomes effective for all purposes, as determined under Section | 22 | | 7-9 of this Code, the general State aid and supplemental | 23 | | general State aid calculated under Section 18-8.05 of this Code | 24 | | shall be computed for each annexing district as constituted | 25 | | after the annexation and for each annexing and annexed district | 26 | | as constituted prior to the annexation; and if the aggregate of |
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| 1 | | the general State aid and supplemental general State aid as so | 2 | | computed for the annexing districts as constituted after the | 3 | | annexation is less than the aggregate of the general State aid | 4 | | and supplemental general State aid as so computed for the | 5 | | annexing and annexed districts, as constituted prior to the | 6 | | annexation, then a supplementary payment equal to the | 7 | | difference shall be made and allocated between or among the | 8 | | annexing districts, as constituted upon the annexation, for the | 9 | | first 4 years of their existence. The total difference payment | 10 | | shall be allocated between or among the annexing districts in | 11 | | the same ratio as the pupil enrollment from that portion of the | 12 | | annexed district or districts that is annexed to each annexing | 13 | | district bears to the total pupil enrollment from the entire | 14 | | annexed district or districts, as such pupil enrollment is | 15 | | determined for the school year last ending prior to the date | 16 | | when the change of boundaries attributable to the annexation | 17 | | becomes effective for all purposes. The amount of the total | 18 | | difference payment and the amount thereof to be allocated to | 19 | | the annexing districts shall be computed by the State Board of | 20 | | Education on the basis of pupil enrollment and other data that | 21 | | shall be certified to the State Board of Education, on forms | 22 | | that it shall provide for that purpose, by the regional | 23 | | superintendent of schools for each educational service region | 24 | | in which the annexing and annexed districts are located. | 25 | | (4) For a school district conversion, as defined in Section | 26 | | 11E-15 of this Code, or a multi-unit conversion, as defined in |
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| 1 | | subsection (b) of Section 11E-30 of this Code, if in their | 2 | | first year of existence the newly created elementary districts | 3 | | and the newly created high school district, from a school | 4 | | district conversion, or the newly created elementary district | 5 | | or districts and newly created combined high school - unit | 6 | | district, from a multi-unit conversion, qualify for less | 7 | | general State aid under Section 18-8.05 of this Code than would | 8 | | have been payable under Section 18-8.05 for that same year to | 9 | | the previously existing districts, then a supplementary | 10 | | payment equal to that difference shall be made for the first 4 | 11 | | years of existence of the newly created districts. The | 12 | | aggregate amount of each supplementary payment shall be | 13 | | allocated among the newly created districts in the proportion | 14 | | that the deemed pupil enrollment in each district during its | 15 | | first year of existence bears to the actual aggregate pupil | 16 | | enrollment in all of the districts during their first year of | 17 | | existence. For purposes of each allocation: | 18 | | (A) the deemed pupil enrollment of the newly created | 19 | | high school district from a school district conversion | 20 | | shall be an amount equal to its actual pupil enrollment for | 21 | | its first year of existence multiplied by 1.25; | 22 | | (B) the deemed pupil enrollment of each newly created | 23 | | elementary district from a school district conversion | 24 | | shall be an amount equal to its actual pupil enrollment for | 25 | | its first year of existence reduced by an amount equal to | 26 | | the product obtained when the amount by which the newly |
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| 1 | | created high school district's deemed pupil enrollment | 2 | | exceeds its actual pupil enrollment for its first year of | 3 | | existence is multiplied by a fraction, the numerator of | 4 | | which is the actual pupil enrollment of the newly created | 5 | | elementary district for its first year of existence and the | 6 | | denominator of which is the actual aggregate pupil | 7 | | enrollment of all of the newly created elementary districts | 8 | | for their first year of existence; | 9 | | (C) the deemed high school pupil enrollment of the | 10 | | newly created combined high school - unit district from a | 11 | | multi-unit conversion shall be an amount equal to its | 12 | | actual grades 9 through 12 pupil enrollment for its first | 13 | | year of existence multiplied by 1.25; and | 14 | | (D) the deemed elementary pupil enrollment of each | 15 | | newly created district from a multi-unit conversion shall | 16 | | be an amount equal to each district's actual grade K | 17 | | through 8 pupil enrollment for its first year of existence, | 18 | | reduced by an amount equal to the product obtained when the | 19 | | amount by which the newly created combined high school - | 20 | | unit district's deemed high school pupil enrollment | 21 | | exceeds its actual grade 9 through 12 pupil enrollment for | 22 | | its first year of existence is multiplied by a fraction, | 23 | | the numerator of which is the actual grade K through 8 | 24 | | pupil enrollment of each newly created district for its | 25 | | first year of existence and the denominator of which is the | 26 | | actual aggregate grade K through 8 pupil enrollment of all |
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| 1 | | such newly created districts for their first year of | 2 | | existence. | 3 | |
The aggregate amount of each supplementary payment under | 4 | | this subdivision (4) and the amount thereof to be allocated to | 5 | | the newly created districts shall be computed by the State | 6 | | Board of Education on the basis of pupil enrollment and other | 7 | | data, which shall be certified to the State Board of Education, | 8 | | on forms that it shall provide for that purpose, by the | 9 | | regional superintendent of schools for each educational | 10 | | service region in which the newly created districts are | 11 | | located.
| 12 | | (5) For a partial elementary unit district, as defined in | 13 | | subsection (a) or (c) of Section 11E-30 of this Code, if, in | 14 | | the first year of existence, the newly created partial | 15 | | elementary unit district qualifies for less general State aid | 16 | | and supplemental general State aid under Section 18-8.05 of | 17 | | this Code than would have been payable under that Section for | 18 | | that same year to the previously existing districts that formed | 19 | | the partial elementary unit district, then a supplementary | 20 | | payment equal to that difference shall be made to the partial | 21 | | elementary unit district for the first 4 years of existence of | 22 | | that newly created district. | 23 | | (6) For an elementary opt-in, as described in subsection | 24 | | (d) of Section 11E-30 of this Code, the general State aid | 25 | | difference shall be computed in accordance with paragraph (5) | 26 | | of this subsection (a) as if the elementary opt-in was included |
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| 1 | | in an optional elementary unit district at the optional | 2 | | elementary unit district's original effective date. If the | 3 | | calculation in this paragraph (6) is less than that calculated | 4 | | in paragraph (5) of this subsection (a) at the optional | 5 | | elementary unit district's original effective date, then no | 6 | | adjustments may be made. If the calculation in this paragraph | 7 | | (6) is more than that calculated in paragraph (5) of this | 8 | | subsection (a) at the optional elementary unit district's | 9 | | original effective date, then the excess must be paid as | 10 | | follows: | 11 | | (A) If the effective date for the elementary opt-in is | 12 | | one year after the effective date for the optional | 13 | | elementary unit district, 100% of the calculated excess | 14 | | shall be paid to the optional elementary unit district in | 15 | | each of the first 4 years after the effective date of the | 16 | | elementary opt-in. | 17 | | (B) If the effective date for the elementary opt-in is | 18 | | 2 years after the effective date for the optional | 19 | | elementary unit district, 75% of the calculated excess | 20 | | shall be paid to the optional elementary unit district in | 21 | | each of the first 4 years after the effective date of the | 22 | | elementary opt-in. | 23 | | (C) If the effective date for the elementary opt-in is | 24 | | 3 years after the effective date for the optional | 25 | | elementary unit district, 50% of the calculated excess | 26 | | shall be paid to the optional elementary unit district in |
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| 1 | | each of the first 4 years after the effective date of the | 2 | | elementary opt-in. | 3 | | (D) If the effective date for the elementary opt-in is | 4 | | 4 years after the effective date for the optional | 5 | | elementary unit district, 25% of the calculated excess | 6 | | shall be paid to the optional elementary unit district in | 7 | | each of the first 4 years after the effective date of the | 8 | | elementary opt-in. | 9 | | (E) If the effective date for the elementary opt-in is | 10 | | 5 years after the effective date for the optional | 11 | | elementary unit district, the optional elementary unit | 12 | | district is not eligible for any additional incentives due | 13 | | to the elementary opt-in. | 14 | | (6.5) For a school district that annexes territory detached | 15 | | from another school district whereby the enrollment of the | 16 | | annexing district increases by 90% or more as a result of the | 17 | | annexation, for the first year during which the change of | 18 | | boundaries attributable to the annexation becomes effective | 19 | | for all purposes as determined under Section 7-9 of this Code, | 20 | | the general State aid and supplemental general State aid | 21 | | calculated under this Section shall be computed for the | 22 | | district gaining territory and the district losing territory as | 23 | | constituted after the annexation and for the same districts as | 24 | | constituted prior to the annexation; and if the aggregate of | 25 | | the general State aid and supplemental general State aid as so | 26 | | computed for the district gaining territory and the district |
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| 1 | | losing territory as constituted after the annexation is less | 2 | | than the aggregate of the general State aid and supplemental | 3 | | general State aid as so computed for the district gaining | 4 | | territory and the district losing territory as constituted | 5 | | prior to the annexation, then a supplementary payment shall be | 6 | | made to the annexing district for the first 4 years of | 7 | | existence after the annexation, equal to the difference | 8 | | multiplied by the ratio of student enrollment in the territory | 9 | | detached to the total student enrollment in the district losing | 10 | | territory for the year prior to the effective date of the | 11 | | annexation. The amount of the total difference and the | 12 | | proportion paid to the annexing district shall be computed by | 13 | | the State Board of Education on the basis of pupil enrollment | 14 | | and other data that must be submitted to the State Board of | 15 | | Education in accordance with Section 7-14A of this Code. The | 16 | | changes to this Section made by Public Act 95-707
are intended | 17 | | to be retroactive and applicable to any annexation taking | 18 | | effect on or after July 1, 2004. For annexations that are | 19 | | eligible for payments under this paragraph (6.5) and that are | 20 | | effective on or after July 1, 2004, but before January 11, 2008 | 21 | | (the effective date of Public Act 95-707), the first required | 22 | | yearly payment under this paragraph (6.5) shall be paid in the | 23 | | fiscal year of January 11, 2008 (the effective date of Public | 24 | | Act 95-707). Subsequent required yearly payments shall be paid | 25 | | in subsequent fiscal years until the payment obligation under | 26 | | this paragraph (6.5) is complete. |
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| 1 | | (7) Claims for financial assistance under this subsection | 2 | | (a) may not be recomputed except as expressly provided under | 3 | | Section 18-8.05 of this Code. | 4 | | (8) Any supplementary payment made under this subsection | 5 | | (a) must be treated as separate from all other payments made | 6 | | pursuant to Section 18-8.05 of this Code. | 7 | | (b)(1) After the formation of a combined school district, | 8 | | as defined in Section 11E-20 of this Code, or a unit district, | 9 | | as defined in Section 11E-25 of this Code, a computation shall | 10 | | be made to determine the difference between the salaries | 11 | | effective in each of the previously existing districts on June | 12 | | 30, prior to the creation of the new district. For the first 4 | 13 | | years after the formation of the new district, a supplementary | 14 | | State aid reimbursement shall be paid to the new district equal | 15 | | to the difference between the sum of the salaries earned by | 16 | | each of the certificated members of the new district, while | 17 | | employed in one of the previously existing districts during the | 18 | | year immediately preceding the formation of the new district, | 19 | | and the sum of the salaries those certificated members would | 20 | | have been paid during the year immediately prior to the | 21 | | formation of the new district if placed on the salary schedule | 22 | | of the previously existing district with the highest salary | 23 | | schedule. | 24 | | (2) After the territory of one or more school districts is | 25 | | annexed by one or more other school districts as defined in | 26 | | Article 7 of this Code, a computation shall be made to |
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| 1 | | determine the difference between the salaries effective in each | 2 | | annexed district and in the annexing district or districts as | 3 | | they were each constituted on June 30 preceding the date when | 4 | | the change of boundaries attributable to the annexation became | 5 | | effective for all purposes, as determined under Section 7-9 of | 6 | | this Code. For the first 4 years after the annexation, a | 7 | | supplementary State aid reimbursement shall be paid to each | 8 | | annexing district as constituted after the annexation equal to | 9 | | the difference between the sum of the salaries earned by each | 10 | | of the certificated members of the annexing district as | 11 | | constituted after the annexation, while employed in an annexed | 12 | | or annexing district during the year immediately preceding the | 13 | | annexation, and the sum of the salaries those certificated | 14 | | members would have been paid during the immediately preceding | 15 | | year if placed on the salary schedule of whichever of the | 16 | | annexing or annexed districts had the highest salary schedule | 17 | | during the immediately preceding year. | 18 | | (3) For each new high school district formed under a school | 19 | | district conversion, as defined in Section 11E-15 of this Code, | 20 | | the State shall make a supplementary payment for 4 years equal | 21 | | to the difference between the sum of the salaries earned by | 22 | | each certified member of the new high school district, while | 23 | | employed in one of the previously existing districts, and the | 24 | | sum of the salaries those certified members would have been | 25 | | paid if placed on the salary schedule of the previously | 26 | | existing district with the highest salary schedule. |
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| 1 | | (4) For each newly created partial elementary unit | 2 | | district, the State shall make a supplementary payment for 4 | 3 | | years equal to the difference between the sum of the salaries | 4 | | earned by each certified member of the newly created partial | 5 | | elementary unit district, while employed in one of the | 6 | | previously existing districts that formed the partial | 7 | | elementary unit district, and the sum of the salaries those | 8 | | certified members would have been paid if placed on the salary | 9 | | schedule of the previously existing district with the highest | 10 | | salary schedule. The salary schedules used in the calculation | 11 | | shall be those in effect in the previously existing districts | 12 | | for the school year prior to the creation of the new partial | 13 | | elementary unit district. | 14 | | (5) For an elementary district opt-in, as described in | 15 | | subsection (d) of Section 11E-30 of this Code, the salary | 16 | | difference incentive shall be computed in accordance with | 17 | | paragraph (4) of this subsection (b) as if the opted-in | 18 | | elementary district was included in the optional elementary | 19 | | unit district at the optional elementary unit district's | 20 | | original effective date. If the calculation in this paragraph | 21 | | (5) is less than that calculated in paragraph (4) of this | 22 | | subsection (b) at the optional elementary unit district's | 23 | | original effective date, then no adjustments may be made. If | 24 | | the calculation in this paragraph (5) is more than that | 25 | | calculated in paragraph (4) of this subsection (b) at the | 26 | | optional elementary unit district's original effective date, |
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| 1 | | then the excess must be paid as follows: | 2 | | (A) If the effective date for the elementary opt-in is | 3 | | one year after the effective date for the optional | 4 | | elementary unit district, 100% of the calculated excess | 5 | | shall be paid to the optional elementary unit district in | 6 | | each of the first 4 years after the effective date of the | 7 | | elementary opt-in. | 8 | | (B) If the effective date for the elementary opt-in is | 9 | | 2 years after the effective date for the optional | 10 | | elementary unit district, 75% of the calculated excess | 11 | | shall be paid to the optional elementary unit district in | 12 | | each of the first 4 years after the effective date of the | 13 | | elementary opt-in. | 14 | | (C) If the effective date for the elementary opt-in is | 15 | | 3 years after the effective date for the optional | 16 | | elementary unit district, 50% of the calculated excess | 17 | | shall be paid to the optional elementary unit district in | 18 | | each of the first 4 years after the effective date of the | 19 | | elementary opt-in. | 20 | | (D) If the effective date for the elementary opt-in is | 21 | | 4 years after the effective date for the partial elementary | 22 | | unit district, 25% of the calculated excess shall be paid | 23 | | to the optional elementary unit district in each of the | 24 | | first 4 years after the effective date of the elementary | 25 | | opt-in. | 26 | | (E) If the effective date for the elementary opt-in is |
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| 1 | | 5 years after the effective date for the optional | 2 | | elementary unit district, the optional elementary unit | 3 | | district is not eligible for any additional incentives due | 4 | | to the elementary opt-in. | 5 | | (5.5) After the formation of a cooperative high school by 2 | 6 | | or more school districts under Section 10-22.22c of this Code, | 7 | | a computation shall be made to determine the difference between | 8 | | the salaries effective in each of the previously existing high | 9 | | schools on June 30 prior to the formation of the cooperative | 10 | | high school. For the first 4 years after the formation of the | 11 | | cooperative high school, a supplementary State aid | 12 | | reimbursement shall be paid to the cooperative high school | 13 | | equal to the difference between the sum of the salaries earned | 14 | | by each of the certificated members of the cooperative high | 15 | | school while employed in one of the previously existing high | 16 | | schools during the year immediately preceding the formation of | 17 | | the cooperative high school and the sum of the salaries those | 18 | | certificated members would have been paid during the year | 19 | | immediately prior to the formation of the cooperative high | 20 | | school if placed on the salary schedule of the previously | 21 | | existing high school with the highest salary schedule. | 22 | | (5.10) After the annexation of territory detached from
| 23 | | another school district whereby the enrollment of the annexing
| 24 | | district increases by 90% or more as a result of the
| 25 | | annexation, a computation shall be made to determine the
| 26 | | difference between the salaries effective in the district
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| 1 | | gaining territory and the district losing territory as they
| 2 | | each were constituted on June 30 preceding the date when the
| 3 | | change of boundaries attributable to the annexation became
| 4 | | effective for all purposes as determined under Section 7-9 of
| 5 | | this Code. For the first 4 years after the annexation, a
| 6 | | supplementary State aid reimbursement shall be paid to the
| 7 | | annexing district equal to the difference between the sum of
| 8 | | the salaries earned by each of the certificated members of the
| 9 | | annexing district as constituted after the annexation while
| 10 | | employed in the district gaining territory or the district
| 11 | | losing territory during the year immediately preceding the
| 12 | | annexation and the sum of the salaries those certificated
| 13 | | members would have been paid during such immediately preceding
| 14 | | year if placed on the salary schedule of whichever of the
| 15 | | district gaining territory or district losing territory had the
| 16 | | highest salary schedule during the immediately preceding year.
| 17 | | To be eligible for supplementary State aid reimbursement under
| 18 | | this Section, the intergovernmental agreement to be submitted
| 19 | | pursuant to Section 7-14A of this Code must show that staff
| 20 | | members were transferred from the control of the district
| 21 | | losing territory to the control of the district gaining
| 22 | | territory in the annexation. The changes to this Section made
| 23 | | by Public Act 95-707
are
intended to be retroactive and | 24 | | applicable to any annexation
taking effect on or after July 1, | 25 | | 2004. For annexations that are eligible for payments under this | 26 | | paragraph (5.10) and that are effective on or after July 1, |
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| 1 | | 2004, but before January 11, 2008 (the effective date of Public | 2 | | Act 95-707), the first required yearly payment under this | 3 | | paragraph (5.10) shall be paid in the fiscal year of January | 4 | | 11, 2008 (the effective date of Public Act 95-707). Subsequent | 5 | | required yearly payments shall be paid in subsequent fiscal | 6 | | years until the payment obligation under this paragraph (5.10) | 7 | | is complete.
| 8 | | (5.15)
After the deactivation of a school facility in | 9 | | accordance with Section 10-22.22b of this Code, a computation | 10 | | shall be made to determine the difference between the salaries | 11 | | effective in the sending school district and each receiving | 12 | | school district on June 30 prior to the deactivation of the | 13 | | school facility. For the lesser of the first 4 years after the | 14 | | deactivation of the school facility or the length of the | 15 | | deactivation agreement, including any renewals of the original | 16 | | deactivation agreement, a supplementary State aid | 17 | | reimbursement shall be paid to each receiving district equal to | 18 | | the difference between the sum of the salaries earned by each | 19 | | of the certificated members transferred to that receiving | 20 | | district as a result of the deactivation while employed in the | 21 | | sending district during the year immediately preceding the | 22 | | deactivation and the sum of the salaries those certificated | 23 | | members would have been paid during the year immediately | 24 | | preceding the deactivation if placed on the salary schedule of | 25 | | the sending or receiving district with the highest salary | 26 | | schedule. |
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| 1 | | (6) The supplementary State aid reimbursement under this | 2 | | subsection (b) shall be treated as separate from all other | 3 | | payments made pursuant to Section 18-8.05 of this Code. In the | 4 | | case of the formation of a new district or cooperative high | 5 | | school or a deactivation, reimbursement shall begin during the | 6 | | first year of operation of the new district or cooperative high | 7 | | school or the first year of the deactivation, and in the case | 8 | | of an annexation of the territory of one or more school | 9 | | districts by one or more other school districts or the | 10 | | annexation of territory detached from a school district whereby
| 11 | | the enrollment of the annexing district increases by 90% or
| 12 | | more as a result of the annexation, reimbursement shall begin | 13 | | during the first year when the change in boundaries | 14 | | attributable to the annexation becomes effective for all | 15 | | purposes as determined pursuant to Section 7-9 of this Code, | 16 | | except that for an annexation of territory detached from a | 17 | | school district that is effective on or after July 1, 2004, but | 18 | | before January 11, 2008 (the effective date of Public Act | 19 | | 95-707), whereby the enrollment of the annexing district | 20 | | increases by 90% or more as a result of the annexation, | 21 | | reimbursement shall begin during the fiscal year of January 11, | 22 | | 2008 (the effective date of Public Act 95-707). Each year that | 23 | | the new, annexing, or receiving district or cooperative high | 24 | | school, as the case may be, is entitled to receive | 25 | | reimbursement, the number of eligible certified members who are | 26 | | employed on October 1 in the district or cooperative high |
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| 1 | | school shall be certified to the State Board of Education on | 2 | | prescribed forms by October 15 and payment shall be made on or | 3 | | before November 15 of that year. | 4 | | (c)(1) For the first year after the formation of a combined | 5 | | school district, as defined in Section 11E-20 of this Code or a | 6 | | unit district, as defined in Section 11E-25 of this Code, a | 7 | | computation shall be made totaling each previously existing | 8 | | district's audited fund balances in the educational fund, | 9 | | working cash fund, operations and maintenance fund, and | 10 | | transportation fund for the year ending June 30 prior to the | 11 | | referendum for the creation of the new district. The new | 12 | | district shall be paid supplementary State aid equal to the sum | 13 | | of the differences between the deficit of the previously | 14 | | existing district with the smallest deficit and the deficits of | 15 | | each of the other previously existing districts. | 16 | | (2) For the first year after the annexation of all of the | 17 | | territory of one or more entire school districts by another | 18 | | school district, as defined in Article 7 of this Code, | 19 | | computations shall be made, for the year ending June 30 prior | 20 | | to the date that the change of boundaries attributable to the | 21 | | annexation is allowed by the affirmative decision issued by the | 22 | | regional board of school trustees under Section 7-6 of this | 23 | | Code, notwithstanding any effort to seek administrative review | 24 | | of the decision, totaling the annexing district's and totaling | 25 | | each annexed district's audited fund balances in their | 26 | | respective educational, working cash, operations and |
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| 1 | | maintenance, and transportation funds. The annexing district | 2 | | as constituted after the annexation shall be paid supplementary | 3 | | State aid equal to the sum of the differences between the | 4 | | deficit of whichever of the annexing or annexed districts as | 5 | | constituted prior to the annexation had the smallest deficit | 6 | | and the deficits of each of the other districts as constituted | 7 | | prior to the annexation. | 8 | | (3) For the first year after the annexation of all of the | 9 | | territory of one or more entire school districts by 2 or more | 10 | | other school districts, as defined by Article 7 of this Code, | 11 | | computations shall be made, for the year ending June 30 prior | 12 | | to the date that the change of boundaries attributable to the | 13 | | annexation is allowed by the affirmative decision of the | 14 | | regional board of school trustees under Section 7-6 of this | 15 | | Code, notwithstanding any action for administrative review of | 16 | | the decision, totaling each annexing and annexed district's | 17 | | audited fund balances in their respective educational, working | 18 | | cash, operations and maintenance, and transportation funds. | 19 | | The annexing districts as constituted after the annexation | 20 | | shall be paid supplementary State aid, allocated as provided in | 21 | | this paragraph (3), in an aggregate amount equal to the sum of | 22 | | the differences between the deficit of whichever of the | 23 | | annexing or annexed districts as constituted prior to the | 24 | | annexation had the smallest deficit and the deficits of each of | 25 | | the other districts as constituted prior to the annexation. The | 26 | | aggregate amount of the supplementary State aid payable under |
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| 1 | | this paragraph (3) shall be allocated between or among the | 2 | | annexing districts as follows: | 3 | | (A) the regional superintendent of schools for each | 4 | | educational service region in which an annexed district is | 5 | | located prior to the annexation shall certify to the State | 6 | | Board of Education, on forms that it shall provide for that | 7 | | purpose, the value of all taxable property in each annexed | 8 | | district, as last equalized or assessed by the Department | 9 | | of Revenue prior to the annexation, and the equalized | 10 | | assessed value of each part of the annexed district that | 11 | | was annexed to or included as a part of an annexing | 12 | | district; | 13 | | (B) using equalized assessed values as certified by the | 14 | | regional superintendent of schools under clause (A) of this | 15 | | paragraph (3), the combined audited fund balance deficit of | 16 | | each annexed district as determined under this Section | 17 | | shall be apportioned between or among the annexing | 18 | | districts in the same ratio as the equalized assessed value | 19 | | of that part of the annexed district that was annexed to or | 20 | | included as a part of an annexing district bears to the | 21 | | total equalized assessed value of the annexed district; and | 22 | | (C) the aggregate supplementary State aid payment | 23 | | under this paragraph (3) shall be allocated between or | 24 | | among, and shall be paid to, the annexing districts in the | 25 | | same ratio as the sum of the combined audited fund balance | 26 | | deficit of each annexing district as constituted prior to |
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| 1 | | the annexation, plus all combined audited fund balance | 2 | | deficit amounts apportioned to that annexing district | 3 | | under clause (B) of this subsection, bears to the aggregate | 4 | | of the combined audited fund balance deficits of all of the | 5 | | annexing and annexed districts as constituted prior to the | 6 | | annexation. | 7 | | (4) For the new elementary districts and new high school | 8 | | district formed through a school district conversion, as | 9 | | defined in Section 11E-15 of this Code or the new elementary | 10 | | district or districts and new combined high school - unit | 11 | | district formed through a multi-unit conversion, as defined in | 12 | | subsection (b) of Section 11E-30 of this Code, a computation | 13 | | shall be made totaling each previously existing district's | 14 | | audited fund balances in the educational fund, working cash | 15 | | fund, operations and maintenance fund, and transportation fund | 16 | | for the year ending June 30 prior to the referendum | 17 | | establishing the new districts. In the first year of the new | 18 | | districts, the State shall make a one-time supplementary | 19 | | payment equal to the sum of the differences between the deficit | 20 | | of the previously existing district with the smallest deficit | 21 | | and the deficits of each of the other previously existing | 22 | | districts. A district with a combined balance among the 4 funds | 23 | | that is positive shall be considered to have a deficit of zero. | 24 | | The supplementary payment shall be allocated among the newly | 25 | | formed high school and elementary districts in the manner | 26 | | provided by the petition for the formation of the districts, in |
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| 1 | | the form in which the petition is approved by the regional | 2 | | superintendent of schools or State Superintendent of Education | 3 | | under Section 11E-50 of this Code. | 4 | | (5) For each newly created partial elementary unit | 5 | | district, as defined in subsection (a) or (c) of Section 11E-30 | 6 | | of this Code, a computation shall be made totaling the audited | 7 | | fund balances of each previously existing district that formed | 8 | | the new partial elementary unit district in the educational | 9 | | fund, working cash fund, operations and maintenance fund, and | 10 | | transportation fund for the year ending June 30 prior to the | 11 | | referendum for the formation of the partial elementary unit | 12 | | district. In the first year of the new partial elementary unit | 13 | | district, the State shall make a one-time supplementary payment | 14 | | to the new district equal to the sum of the differences between | 15 | | the deficit of the previously existing district with the | 16 | | smallest deficit and the deficits of each of the other | 17 | | previously existing districts. A district with a combined | 18 | | balance among the 4 funds that is positive shall be considered | 19 | | to have a deficit of zero. | 20 | | (6) For an elementary opt-in as defined in subsection (d) | 21 | | of Section 11E-30 of this Code, the deficit fund balance | 22 | | incentive shall be computed in accordance with paragraph (5) of | 23 | | this subsection (c) as if the opted-in elementary was included | 24 | | in the optional elementary unit district at the optional | 25 | | elementary unit district's original effective date. If the | 26 | | calculation in this paragraph (6) is less than that calculated |
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| 1 | | in paragraph (5) of this subsection (c) at the optional | 2 | | elementary unit district's original effective date, then no | 3 | | adjustments may be made. If the calculation in this paragraph | 4 | | (6) is more than that calculated in paragraph (5) of this | 5 | | subsection (c) at the optional elementary unit district's | 6 | | original effective date, then the excess must be paid as | 7 | | follows: | 8 | | (A) If the effective date for the elementary opt-in is | 9 | | one year after the effective date for the optional | 10 | | elementary unit district, 100% of the calculated excess | 11 | | shall be paid to the optional elementary unit district in | 12 | | the first year after the effective date of the elementary | 13 | | opt-in. | 14 | | (B) If the effective date for the elementary opt-in is | 15 | | 2 years after the effective date for the optional | 16 | | elementary unit district, 75% of the calculated excess | 17 | | shall be paid to the optional elementary unit district in | 18 | | the first year after the effective date of the elementary | 19 | | opt-in. | 20 | | (C) If the effective date for the elementary opt-in is | 21 | | 3 years after the effective date for the optional | 22 | | elementary unit district, 50% of the calculated excess | 23 | | shall be paid to the optional elementary unit district in | 24 | | the first year after the effective date of the elementary | 25 | | opt-in. | 26 | | (D) If the effective date for the elementary opt-in is |
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| 1 | | 4 years after the effective date for the optional | 2 | | elementary unit district, 25% of the calculated excess | 3 | | shall be paid to the optional elementary unit district in | 4 | | the first year after the effective date of the elementary | 5 | | opt-in. | 6 | | (E) If the effective date for the elementary opt-in is | 7 | | 5 years after the effective date for the optional | 8 | | elementary unit district, the optional elementary unit | 9 | | district is not eligible for any additional incentives due | 10 | | to the elementary opt-in. | 11 | | (6.5) For the first year after the annexation of territory
| 12 | | detached from another school district whereby the enrollment of
| 13 | | the annexing district increases by 90% or more as a result of
| 14 | | the annexation, a computation shall be made totaling the
| 15 | | audited fund balances of the district gaining territory and the
| 16 | | audited fund balances of the district losing territory in the
| 17 | | educational fund, working cash fund, operations and
| 18 | | maintenance fund, and transportation fund for the year ending
| 19 | | June 30 prior to the date that the change of boundaries
| 20 | | attributable to the annexation is allowed by the affirmative
| 21 | | decision of the regional board of school trustees under Section
| 22 | | 7-6 of this Code, notwithstanding any action for administrative
| 23 | | review of the decision. The annexing district as constituted
| 24 | | after the annexation shall be paid supplementary State aid
| 25 | | equal to the difference between the deficit of whichever
| 26 | | district included in this calculation as constituted prior to
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| 1 | | the annexation had the smallest deficit and the deficit of each
| 2 | | other district included in this calculation as constituted
| 3 | | prior to the annexation, multiplied by the ratio of equalized
| 4 | | assessed value of the territory detached to the total equalized
| 5 | | assessed value of the district losing territory. The regional
| 6 | | superintendent of schools for the educational service region in
| 7 | | which a district losing territory is located prior to the
| 8 | | annexation shall certify to the State Board of Education the
| 9 | | value of all taxable property in the district losing territory
| 10 | | and the value of all taxable property in the territory being
| 11 | | detached, as last equalized or assessed by the Department of
| 12 | | Revenue prior to the annexation. To be eligible for
| 13 | | supplementary State aid reimbursement under this Section, the
| 14 | | intergovernmental agreement to be submitted pursuant to
| 15 | | Section 7-14A of this Code must show that fund balances were
| 16 | | transferred from the district losing territory to the district
| 17 | | gaining territory in the annexation. The changes to this
| 18 | | Section made by Public Act 95-707
are intended to be | 19 | | retroactive and applicable to any
annexation taking effect on | 20 | | or after July 1, 2004. For annexations that are eligible for | 21 | | payments under this paragraph (6.5) and that are effective on | 22 | | or after July 1, 2004, but before January 11, 2008 (the | 23 | | effective date of Public Act 95-707), the required payment | 24 | | under this paragraph (6.5) shall be paid in the fiscal year of | 25 | | January 11, 2008 (the effective date of Public Act 95-707).
| 26 | | (7) For purposes of any calculation required under |
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| 1 | | paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this | 2 | | subsection (c), a district with a combined fund balance that is | 3 | | positive shall be considered to have a deficit of zero. For | 4 | | purposes of determining each district's audited fund balances | 5 | | in its educational fund, working cash fund, operations and | 6 | | maintenance fund, and transportation fund for the specified | 7 | | year ending June 30, as provided in paragraphs (1), (2), (3), | 8 | | (4), (5), (6), and (6.5) of this subsection (c), the balance of | 9 | | each fund shall be deemed decreased by an amount equal to the | 10 | | amount of the annual property tax theretofore levied in the | 11 | | fund by the district for collection and payment to the district | 12 | | during the calendar year in which the June 30 fell, but only to | 13 | | the extent that the tax so levied in the fund actually was | 14 | | received by the district on or before or comprised a part of | 15 | | the fund on such June 30. For purposes of determining each | 16 | | district's audited fund balances, a calculation shall be made | 17 | | for each fund to determine the average for the 3 years prior to | 18 | | the specified year ending June 30, as provided in paragraphs | 19 | | (1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c), | 20 | | of the district's expenditures in the categories "purchased | 21 | | services", "supplies and materials", and "capital outlay", as | 22 | | those categories are defined in rules of the State Board of | 23 | | Education. If this 3-year average is less than the district's | 24 | | expenditures in these categories for the specified year ending | 25 | | June 30, as provided in paragraphs (1), (2), (3), (4), (5), | 26 | | (6), and (6.5) of this subsection (c), then the 3-year average |
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| 1 | | shall be used in calculating the amounts payable under this | 2 | | Section in place of the amounts shown in these categories for | 3 | | the specified year ending June 30, as provided in paragraphs | 4 | | (1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c). | 5 | | Any deficit because of State aid not yet received may not be | 6 | | considered in determining the June 30 deficits. The same basis | 7 | | of accounting shall be used by all previously existing | 8 | | districts and by all annexing or annexed districts, as | 9 | | constituted prior to the annexation, in making any computation | 10 | | required under paragraphs (1), (2), (3), (4), (5), (6), and | 11 | | (6.5) of this subsection (c). | 12 | | (8) The supplementary State aid payments under this | 13 | | subsection (c) shall be treated as separate from all other | 14 | | payments made pursuant to Section 18-8.05 of this Code. | 15 | | (d)(1) Following the formation of a combined school | 16 | | district, as defined in Section 11E-20 of this Code, a new unit | 17 | | district, as defined in Section 11E-25 of this Code, a new | 18 | | elementary district or districts and a new high school district | 19 | | formed through a school district conversion, as defined in | 20 | | Section 11E-15 of this Code, a new partial elementary unit | 21 | | district, as defined in Section 11E-30 of this Code, or a new | 22 | | elementary district or districts formed through a multi-unit | 23 | | conversion, as defined in subsection (b) of Section 11E-30 of | 24 | | this Code, or the annexation of all of the territory of one or | 25 | | more entire school districts by one or more other school | 26 | | districts, as defined in Article 7 of this Code, a |
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| 1 | | supplementary State aid reimbursement shall be paid for the | 2 | | number of school years determined under the following table to | 3 | | each new or annexing district equal to the sum of $4,000 for | 4 | | each certified employee who is employed by the district on a | 5 | | full-time basis for the regular term of the school year: |
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6 | | Reorganized District's Rank |
Reorganized District's Rank |
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7 | | by type of district (unit, |
in Average Daily Attendance |
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8 | | high school, elementary) |
By Quintile |
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9 | | in Equalized Assessed Value |
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10 | | Per Pupil by Quintile |
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11 | | |
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3rd, 4th, |
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12 | | |
1st |
2nd |
or 5th |
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13 | | |
Quintile |
Quintile |
Quintile |
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14 | | 1st Quintile |
1 year |
1 year |
1 year |
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15 | | 2nd Quintile |
1 year |
2 years |
2 years |
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16 | | 3rd Quintile |
2 years |
3 years |
3 years |
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17 | | 4th Quintile |
2 years |
3 years |
3 years |
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18 | | 5th Quintile |
2 years |
3 years |
3 years |
| 19 | | The State Board of Education shall make a one-time calculation | 20 | | of a reorganized district's quintile ranks. The average daily | 21 | | attendance used in this calculation shall be the best 3 months' | 22 | | average daily attendance for the district's first year. The | 23 | | equalized assessed value per pupil shall be the district's real | 24 | | property equalized assessed value used in calculating the |
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| 1 | | district's first-year general State aid claim, under Section | 2 | | 18-8.05 of this Code, divided by the best 3 months' average | 3 | | daily attendance. | 4 | | No annexing or resulting school district shall be entitled | 5 | | to supplementary State aid under this subsection (d) unless the | 6 | | district acquires at least 30% of the average daily attendance | 7 | | of the district from which the territory is being detached or | 8 | | divided. | 9 | | If a district results from multiple reorganizations that | 10 | | would otherwise qualify the district for multiple payments | 11 | | under this subsection (d) in any year, then the district shall | 12 | | receive a single payment only for that year based solely on the | 13 | | most recent reorganization. | 14 | | (2) For an elementary opt-in, as defined in subsection (d) | 15 | | of Section 11E-30 of this Code, the full-time certified staff | 16 | | incentive shall be computed in accordance with paragraph (1) of | 17 | | this subsection (d), equal to the sum of $4,000 for each | 18 | | certified employee of the elementary district that opts-in who | 19 | | is employed by the optional elementary unit district on a | 20 | | full-time basis for the regular term of the school year. The | 21 | | calculation from this paragraph (2) must be paid as follows: | 22 | | (A) If the effective date for the elementary opt-in is | 23 | | one year after the effective date for the optional | 24 | | elementary unit district, 100% of the amount calculated in | 25 | | this paragraph (2) shall be paid to the optional elementary | 26 | | unit district for the number of years calculated in |
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| 1 | | paragraph (1) of this subsection (d) at the optional | 2 | | elementary unit district's original effective date, | 3 | | starting in the second year after the effective date of the | 4 | | elementary opt-in. | 5 | | (B) If the effective date for the elementary opt-in is | 6 | | 2 years after the effective date for the optional | 7 | | elementary unit district, 75% of the amount calculated in | 8 | | this paragraph (2) shall be paid to the optional elementary | 9 | | unit district for the number of years calculated in | 10 | | paragraph (1) of this subsection (d) at the optional | 11 | | elementary unit district's original effective date, | 12 | | starting in the second year after the effective date of the | 13 | | elementary opt-in. | 14 | | (C) If the effective date for the elementary opt-in is | 15 | | 3 years after the effective date for the optional | 16 | | elementary unit district, 50% of the amount calculated in | 17 | | this paragraph (2) shall be paid to the optional elementary | 18 | | unit district for the number of years calculated in | 19 | | paragraph (1) of this subsection (d) at the optional | 20 | | elementary unit district's original effective date, | 21 | | starting in the second year after the effective date of the | 22 | | elementary opt-in. | 23 | | (D) If the effective date for the elementary opt-in is | 24 | | 4 years after the effective date for the optional | 25 | | elementary unit district, 25% of the amount calculated in | 26 | | this paragraph (2) shall be paid to the optional elementary |
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| 1 | | unit district for the number of years calculated in | 2 | | paragraph (1) of this subsection (d) at the optional | 3 | | elementary unit district's original effective date, | 4 | | starting in the second year after the effective date of the | 5 | | elementary opt-in. | 6 | | (E) If the effective date for the elementary opt-in is | 7 | | 5 years after the effective date for the optional | 8 | | elementary unit district, the optional elementary unit | 9 | | district is not eligible for any additional incentives due | 10 | | to the elementary opt-in. | 11 | | (2.5) Following the formation of a cooperative high school | 12 | | by 2 or more school districts under Section 10-22.22c of this | 13 | | Code, a supplementary State aid reimbursement shall be paid for | 14 | | 3 school years to the cooperative high school equal to the sum | 15 | | of $4,000 for each certified employee who is employed by the | 16 | | cooperative high school on a full-time basis for the regular | 17 | | term of any such school year. If a cooperative high school | 18 | | results from multiple agreements that would otherwise qualify | 19 | | the cooperative high school for multiple payments under this | 20 | | Section in any year, the cooperative high school shall receive | 21 | | a single payment for that year based solely on the most recent | 22 | | agreement. | 23 | | (2.10) Following the annexation of territory detached from
| 24 | | another school district whereby the enrollment of the annexing
| 25 | | district increases 90% or more as a result of the annexation, a
| 26 | | supplementary State aid reimbursement shall be paid to the
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| 1 | | annexing district equal to the sum of $4,000 for each certified
| 2 | | employee who is employed by the annexing district on a
| 3 | | full-time basis and shall be calculated in accordance with
| 4 | | subsection (a) of this Section. To be eligible for
| 5 | | supplementary State aid reimbursement under this Section, the
| 6 | | intergovernmental agreement to be submitted pursuant to
| 7 | | Section 7-14A of this Code must show that certified staff
| 8 | | members were transferred from the control of the district
| 9 | | losing territory to the control of the district gaining
| 10 | | territory in the annexation. The changes to this Section made
| 11 | | by Public Act 95-707
are
intended to be retroactive and | 12 | | applicable to any annexation
taking effect on or after July 1, | 13 | | 2004. For annexations that are eligible for payments under this | 14 | | paragraph (2.10) and that are effective on or after July 1, | 15 | | 2004, but before January 11, 2008 (the effective date of Public | 16 | | Act 95-707), the first required yearly payment under this | 17 | | paragraph (2.10) shall be paid in the second fiscal year after | 18 | | January 11, 2008 (the effective date of Public Act 95-707). Any | 19 | | subsequent required yearly payments shall be paid in subsequent | 20 | | fiscal years until the payment obligation under this paragraph | 21 | | (2.10) is complete.
| 22 | | (2.15)
Following the deactivation of a school facility in | 23 | | accordance with Section 10-22.22b of this Code, a supplementary | 24 | | State aid reimbursement shall be paid for the lesser of 3 | 25 | | school years or the length of the deactivation agreement, | 26 | | including any renewals of the original deactivation agreement, |
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| 1 | | to each receiving school district equal to the sum of $4,000 | 2 | | for each certified employee who is employed by that receiving | 3 | | district on a full-time basis for the regular term of any such | 4 | | school year who was originally transferred to the control of | 5 | | that receiving district as a result of the deactivation. | 6 | | Receiving districts are eligible for payments under this | 7 | | paragraph (2.15)
based on the certified employees transferred | 8 | | to that receiving district as a result of the deactivation and | 9 | | are not required to receive at least 30% of the deactivating | 10 | | district's average daily attendance as required under | 11 | | paragraph (1) of this subsection (d) to be eligible for | 12 | | payments. | 13 | | (3) The supplementary State aid reimbursement payable | 14 | | under this subsection (d) shall be separate from and in | 15 | | addition to all other payments made to the district pursuant to | 16 | | any other Section of this Article. | 17 | | (4) During May of each school year for which a | 18 | | supplementary State aid reimbursement is to be paid to a new, | 19 | | annexing, or receiving school district or cooperative high | 20 | | school pursuant to this subsection (d), the school board or | 21 | | governing board shall certify to the State Board of Education, | 22 | | on forms furnished to the school board or governing board by | 23 | | the State Board of Education for purposes of this subsection | 24 | | (d), the number of certified employees for which the district | 25 | | or cooperative high school is entitled to reimbursement under | 26 | | this Section, together with the names, certificate numbers, and |
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| 1 | | positions held by the certified employees. | 2 | | (5) Upon certification by the State Board of Education to | 3 | | the State Comptroller of the amount of the supplementary State | 4 | | aid reimbursement to which a school district or cooperative | 5 | | high school is entitled under this subsection (d), the State | 6 | | Comptroller shall draw his or her warrant upon the State | 7 | | Treasurer for the payment thereof to the school district or | 8 | | cooperative high school and shall promptly transmit the payment | 9 | | to the school district or cooperative high school through the | 10 | | appropriate school treasurer.
| 11 | | (Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08; | 12 | | 95-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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