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1    AN ACT concerning education.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The School Code is amended by changing Sections
51C-4 and 1D-1 as follows:
6    (105 ILCS 5/1C-4)
7    Sec. 1C-4. Reports. The State Superintendent of Education,
8in cooperation with the school districts participating under
9this Article, shall annually report to the leadership of the
10General Assembly on the progress made in implementing this
11Article. By February 1, 1997, the State Board of Education
12shall submit to the Governor and General Assembly a
13comprehensive plan for Illinois school districts, including
14the school district that has been organized under Article 34
15and is under the jurisdiction of the Chicago Board of
16Education, to establish and implement a block grant funding
17system for educational programs that are currently funded
18through single-program grants. Before submitting its plan to
19establish and implement a block grant funding system to the
20Governor and General Assembly as required by this Section, the
21State Board of Education shall give appropriate notice of and
22hold statewide public hearings on the subject of funding
23educational programs through block grants. The plan shall be



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1designed to relieve school districts of the administrative
2burdens that impede efficiency and accompany single-program
4    A school district that receives an Early Childhood
5Education Block Grant shall report to the State Board of
6Education on its use of the block grant in such form and detail
7as the State Board of Education may specify. In addition, the
8report must include the following description for the district,
9which must also be reported to the General Assembly: block
10grant allocation and expenditures by program; population and
11service levels by program; and administrative expenditures by
12program. The State Board of Education shall ensure that the
13reporting requirements for a district organized under Article
1434 of this Code are the same as for all other school districts
15in this State.
16(Source: P.A. 88-555, eff. 7-27-94; 89-397, eff. 8-20-95;
1789-610, eff. 8-6-96.)
18    (105 ILCS 5/1D-1)
19    Sec. 1D-1. Block grant funding.
20    (a) For fiscal year 1996 and each fiscal year thereafter,
21the State Board of Education shall award to a school district
22having a population exceeding 500,000 inhabitants a general
23education block grant and an educational services block grant,
24determined as provided in this Section, in lieu of distributing
25to the district separate State funding for the programs



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1described in subsections (b) and (c). The provisions of this
2Section, however, do not apply to any federal funds that the
3district is entitled to receive. In accordance with Section
42-3.32, all block grants are subject to an audit. Therefore,
5block grant receipts and block grant expenditures shall be
6recorded to the appropriate fund code for the designated block
8    (b) The general education block grant shall include the
9following programs: REI Initiative, Summer Bridges, Preschool
10At Risk, K-6 Comprehensive Arts, School Improvement Support,
11Urban Education, Scientific Literacy, Substance Abuse
12Prevention, Second Language Planning, Staff Development,
13Outcomes and Assessment, K-6 Reading Improvement, 7-12
14Continued Reading Improvement, Truants' Optional Education,
15Hispanic Programs, Agriculture Education, Parental Education,
16Prevention Initiative, Report Cards, and Criminal Background
17Investigations. Notwithstanding any other provision of law,
18all amounts paid under the general education block grant from
19State appropriations to a school district in a city having a
20population exceeding 500,000 inhabitants shall be appropriated
21and expended by the board of that district for any of the
22programs included in the block grant or any of the board's
23lawful purposes.
24    (c) The educational services block grant shall include the
25following programs: Bilingual, Regular and Vocational
26Transportation, State Lunch and Free Breakfast Program,



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1Special Education (Personnel, Transportation, Orphanage,
2Private Tuition), funding for children requiring special
3education services, Summer School, Educational Service
4Centers, and Administrator's Academy. This subsection (c) does
5not relieve the district of its obligation to provide the
6services required under a program that is included within the
7educational services block grant. It is the intention of the
8General Assembly in enacting the provisions of this subsection
9(c) to relieve the district of the administrative burdens that
10impede efficiency and accompany single-program funding. The
11General Assembly encourages the board to pursue mandate waivers
12pursuant to Section 2-3.25g.
13    The funding program included in the educational services
14block grant for funding for children requiring special
15education services in each fiscal year shall be treated in that
16fiscal year as a payment to the school district in respect of
17services provided or costs incurred in the prior fiscal year,
18calculated in each case as provided in this Section. Nothing in
19this Section shall change the nature of payments for any
20program that, apart from this Section, would be or, prior to
21adoption or amendment of this Section, was on the basis of a
22payment in a fiscal year in respect of services provided or
23costs incurred in the prior fiscal year, calculated in each
24case as provided in this Section.
25    (d) For fiscal year 1996 and each fiscal year thereafter,
26the amount of the district's block grants shall be determined



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1as follows: (i) with respect to each program that is included
2within each block grant, the district shall receive an amount
3equal to the same percentage of the current fiscal year
4appropriation made for that program as the percentage of the
5appropriation received by the district from the 1995 fiscal
6year appropriation made for that program, and (ii) the total
7amount that is due the district under the block grant shall be
8the aggregate of the amounts that the district is entitled to
9receive for the fiscal year with respect to each program that
10is included within the block grant that the State Board of
11Education shall award the district under this Section for that
12fiscal year. In the case of the Summer Bridges program, the
13amount of the district's block grant shall be equal to 44% of
14the amount of the current fiscal year appropriation made for
15that program.
16    (e) The district is not required to file any application or
17other claim in order to receive the block grants to which it is
18entitled under this Section. The State Board of Education shall
19make payments to the district of amounts due under the
20district's block grants on a schedule determined by the State
21Board of Education.
22    (f) A school district to which this Section applies shall
23report to the State Board of Education on its use of the block
24grants in such form and detail as the State Board of Education
25may specify. In addition, the report must include the following
26description for the district, which must also be reported to



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1the General Assembly: block grant allocation and expenditures
2by program; population and service levels by program; and
3administrative expenditures by program. The State Board of
4Education shall ensure that the reporting requirements for the
5district are the same as for all other school districts in this
7    (g) This paragraph provides for the treatment of block
8grants under Article 1C for purposes of calculating the amount
9of block grants for a district under this Section. Those block
10grants under Article 1C are, for this purpose, treated as
11included in the amount of appropriation for the various
12programs set forth in paragraph (b) above. The appropriation in
13each current fiscal year for each block grant under Article 1C
14shall be treated for these purposes as appropriations for the
15individual program included in that block grant. The proportion
16of each block grant so allocated to each such program included
17in it shall be the proportion which the appropriation for that
18program was of all appropriations for such purposes now in that
19block grant, in fiscal 1995.
20    Payments to the school district under this Section with
21respect to each program for which payments to school districts
22generally, as of the date of this amendatory Act of the 92nd
23General Assembly, are on a reimbursement basis shall continue
24to be made to the district on a reimbursement basis, pursuant
25to the provisions of this Code governing those programs.
26    (h) Notwithstanding any other provision of law, any school



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1district receiving a block grant under this Section may
2classify all or a portion of the funds that it receives in a
3particular fiscal year from any block grant authorized under
4this Code or from general State aid pursuant to Section 18-8.05
5of this Code (other than supplemental general State aid) as
6funds received in connection with any funding program for which
7it is entitled to receive funds from the State in that fiscal
8year (including, without limitation, any funding program
9referred to in subsection (c) of this Section), regardless of
10the source or timing of the receipt. The district may not
11classify more funds as funds received in connection with the
12funding program than the district is entitled to receive in
13that fiscal year for that program. Any classification by a
14district must be made by a resolution of its board of
15education. The resolution must identify the amount of any block
16grant or general State aid to be classified under this
17subsection (h) and must specify the funding program to which
18the funds are to be treated as received in connection
19therewith. This resolution is controlling as to the
20classification of funds referenced therein. A certified copy of
21the resolution must be sent to the State Superintendent of
22Education. The resolution shall still take effect even though a
23copy of the resolution has not been sent to the State
24Superintendent of Education in a timely manner. No
25classification under this subsection (h) by a district shall
26affect the total amount or timing of money the district is



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1entitled to receive under this Code. No classification under
2this subsection (h) by a district shall in any way relieve the
3district from or affect any requirements that otherwise would
4apply with respect to the block grant as provided in this
5Section, including any accounting of funds by source, reporting
6expenditures by original source and purpose, reporting
7requirements, or requirements of provision of services.
8(Source: P.A. 92-568, eff. 6-26-02; 92-651, eff. 7-11-02;
993-21, eff. 7-1-03; 93-53, eff. 7-1-03; 93-1022, eff. 8-24-04.)
10    Section 99. Effective date. This Act takes effect July 1,