State of Illinois
90th General Assembly
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90_HB2579

      105 ILCS 5/18-8.05
          Amends the School Code.  Makes changes of grammar in  the
      school aid formula that applies to the 1998-99 and subsequent
      school years.
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 1        AN  ACT  to  amend  the  School  Code by changing Section
 2    18-8.05.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  School  Code  is  amended  by changing
 6    Section 18-8.05 as follows:
 7        (105 ILCS 5/18-8.05)
 8        (This Section may contain text from a Public Act  with  a
 9    delayed effective date.)
10        Sec.  18-8.05.  Basis  for apportionment of general State
11    financial aid and  supplemental  general  State  aid  to  the
12    common schools for the 1998-1999 and subsequent school years.
13    (A)  General Provisions.
14        (1)  The  provisions  of  this Section shall apply to the
15    1998-1999 and subsequent school years.  The system of general
16    State financial aid that is provided for in this  Section  is
17    designed  to  assure  that,  through  a  combination of State
18    financial aid and required  local  resources,  the  financial
19    support  provided  each  pupil  in  Average  Daily Attendance
20    equals or exceeds a prescribed per  pupil  Foundation  Level.
21    This  formula approach imputes a level of per pupil Available
22    Local Resources and provides for the basis to calculate a per
23    pupil level of general State financial aid that,  when  added
24    to   Available   Local   Resources,  equals  or  exceeds  the
25    Foundation Level.  The amount  of  per  pupil  general  State
26    financial  aid  for  school  districts, in general, varies in
27    inverse relation to Available  Local  Resources.   Per  pupil
28    amounts  are  based upon each school district's Average Daily
29    Attendance as that term is defined in this Section.
30        (2)  In addition to general State financial  aid,  school
31    districts  with  specified levels or concentrations of pupils
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 1    from  low  income  households   are   eligible   to   receive
 2    supplemental  general  State financial aid grants as provided
 3    pursuant to subsection (H). The supplemental State aid grants
 4    provided for school districts under subsection (H)  shall  be
 5    appropriated  for distribution to school districts as part of
 6    the same line item in which the general State  financial  aid
 7    of school districts is appropriated under this Section.
 8        (3)  To  receive financial assistance under this Section,
 9    school districts are required to file claims with  the  State
10    Board of Education, subject to the following requirements:
11             (a)  Any  school  district which fails for any given
12        school year to maintain school as required by law, or  to
13        maintain  a recognized school is not eligible to file for
14        such school year any claim upon the Common  School  Fund.
15        In  case  of  nonrecognition  of  one  or more attendance
16        centers  in  a  school   district   otherwise   operating
17        recognized  schools,  the  claim of the district shall be
18        reduced  in  the  proportion  which  the  Average   Daily
19        Attendance  in  the  attendance center or centers bear to
20        the Average Daily Attendance in the school  district.   A
21        "recognized  school"  means any public school which meets
22        the standards as established for recognition by the State
23        Board of Education.   A  school  district  or  attendance
24        center  not  having  recognition  status  at the end of a
25        school term is entitled to receive State aid payments due
26        upon  a  legal  claim  which  was  filed  while  it   was
27        recognized.
28             (b)  School district claims filed under this Section
29        are subject to Sections 18-9, 18-10, and 18-12, except as
30        otherwise provided in this Section.
31             (c)  If  a  school  district  operates  a  full year
32        school under Section 10-19.1, the general  State  aid  to
33        the  school  district  shall  be  determined by the State
34        Board of Education in accordance  with  this  Section  as
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 1        near as may be applicable.
 2             (d)  Claims  for  financial  assistance  under  this
 3        Section  shall  not  be  recomputed  except  as expressly
 4        provided under this Section.
 5        (4)  Except as provided in subsections (H) and  (L),  the
 6    board  of  any  district receiving any of the grants provided
 7    for in this Section may apply those  funds  to  any  fund  so
 8    received   for   which  that  board  is  authorized  to  make
 9    expenditures by law.
10        School districts are not  required  to  exert  a  minimum
11    Operating  Tax  Rate in order to qualify for assistance under
12    this Section.
13        (5)  As used in this Section the  following  terms,  when
14    capitalized, shall have the meaning ascribed herein:
15             (a)  "Average  Daily  Attendance":  A count of pupil
16        attendance  in  school,  averaged  as  provided  for   in
17        subsection   (C)  and  utilized  in  deriving  per  pupil
18        financial support levels.
19             (b)  "Available Local Resources":  A computation  of
20        local  financial support, calculated on the basis Average
21        Daily Attendance and  derived  as  provided  pursuant  to
22        subsection (D).
23             (c)  "Corporate    Personal   Property   Replacement
24        Taxes":  Funds paid to local school districts pursuant to
25        "An Act in  relation  to  the  abolition  of  ad  valorem
26        personal  property  tax  and  the replacement of revenues
27        lost thereby, and amending and repealing certain Acts and
28        parts of Acts in connection therewith", certified  August
29        14, 1979, as amended (Public Act 81-1st S.S.-1).
30             (d)  "Foundation  Level":  A prescribed level of per
31        pupil financial support as  provided  for  in  subsection
32        (B).
33             (e)  "Operating  Tax  Rate":   All  school  district
34        property   taxes   extended   for  all  purposes,  except
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 1        community college educational purposes for the payment of
 2        tuition under Section 6-1 of the Public Community College
 3        Act, Bond and  Interest,  Summer  School,  Rent,  Capital
 4        Improvement, and Vocational Education Building purposes.
 5    (B)  Foundation Level.
 6        (1)  The  Foundation Level is a figure established by the
 7    State representing the minimum level of per  pupil  financial
 8    support  that  should  be  available to provide for the basic
 9    education of each pupil in Average Daily Attendance.  As  set
10    forth  in  this  Section,  each school district is assumed to
11    exert  a  sufficient  local  taxing  effort  such  that,   in
12    combination with the aggregate of general State financial aid
13    provided  the  district,  an  aggregate  of  State  and local
14    resources are available to meet the basic education needs  of
15    pupils in the district.
16        (2)  For  the 1998-1999 school year, the Foundation Level
17    of support is $4,225.  For the  1999-2000  school  year,  the
18    Foundation  Level  of  support  is $4,325.  For the 2000-2001
19    school year, the Foundation Level of support is $4,425.
20        (3)  For the 2001-2002 school year and each  school  year
21    thereafter, the Foundation Level of support is $4,425 or such
22    greater  amount  as  may be established by law by the General
23    Assembly.
24    (C)  Average Daily Attendance.
25        (1)  For  purposes  of  calculating  general  State   aid
26    pursuant  to  subsection  (E),  an  Average  Daily Attendance
27    figure shall  be  utilized.   The  Average  Daily  Attendance
28    figure  for formula calculation purposes shall be the monthly
29    average of the actual number of pupils in attendance of  each
30    school district, as further averaged for the best 3 months of
31    pupil  attendance for each school district.  In compiling the
32    figures for  the  number  of  pupils  in  attendance,  school
33    districts  and  the  State  Board  of  Education  shall,  for
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 1    purposes  of  general  State  aid funding, conform attendance
 2    figures to the requirements of subsection (F).
 3        (2)  The Average Daily  Attendance  figures  utilized  in
 4    subsection (E) shall be the requisite attendance data for the
 5    school  year  immediately preceding the school year for which
 6    general State aid is being calculated.
 7    (D)  Available Local Resources.
 8        (1)  For  purposes  of  calculating  general  State   aid
 9    pursuant  to  subsection  (E),  a representation of Available
10    Local Resources per  pupil,  as  that  term  is  defined  and
11    determined  in this subsection, shall be utilized.  Available
12    Local Resources per pupil shall include a  calculated  dollar
13    amount representing local school district revenues from local
14    property   taxes   and   from   Corporate  Personal  Property
15    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
16    Average Daily Attendance.
17        (2)  In  determining  a  school  district's  revenue from
18    local property taxes, the  State  Board  of  Education  shall
19    utilize  the  equalized  assessed  valuation  of  all taxable
20    property of each school district as of September  30  of  the
21    previous  year.   The  equalized  assessed valuation utilized
22    shall be obtained and determined as  provided  in  subsection
23    (G).
24        (3)  For school districts maintaining grades kindergarten
25    through  12,  local  property tax revenues per pupil shall be
26    calculated  as  the  product  of  the  applicable   equalized
27    assessed  valuation for the district multiplied by 3.00%, and
28    divided by the district's Average  Daily  Attendance  figure.
29    For  school districts maintaining grades kindergarten through
30    8, local property tax revenues per pupil shall be  calculated
31    as the product of the applicable equalized assessed valuation
32    for  the  district  multiplied  by  2.30%, and divided by the
33    district's  Average  Daily  Attendance  figure.   For  school
34    districts maintaining grades 9 through 12, local property tax
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 1    revenues per pupil shall be the applicable equalized assessed
 2    valuation of the district multiplied by 1.20%, and divided by
 3    the district's Average Daily Attendance figure.
 4        (4)  The Corporate Personal  Property  Replacement  Taxes
 5    paid to each school district during the calendar year 2 years
 6    before  the  calendar  year  in  which  a school year begins,
 7    divided by the  Average  Daily  Attendance  figure  for  that
 8    district,  shall  be added to the local property tax revenues
 9    per pupil as derived by the application  of  the  immediately
10    preceding  paragraph (3).  The sum of these per pupil figures
11    for each school district  shall  constitute  Available  Local
12    Resources  as  that term is utilized in subsection (E) in the
13    calculation of general State aid.
14    (E)  Computation of General State Aid.
15        (1)  For each school year, the amount  of  general  State
16    aid  allotted  to  a school district shall be computed by the
17    State Board of Education as provided in this subsection.
18        (2)  For any school district for  which  Available  Local
19    Resources  per  pupil  is less than the product of 0.93 times
20    the Foundation Level, general State  aid  for  that  district
21    shall  be  calculated  as  an  amount equal to the Foundation
22    Level minus Available  Local  Resources,  multiplied  by  the
23    Average Daily Attendance of the school district.
24        (3)  For  any  school  district for which Available Local
25    Resources per pupil is equal to or greater than  the  product
26    of  0.93 times the Foundation Level and less than the product
27    of 1.75 times the Foundation Level, the general State aid per
28    pupil shall be a decimal proportion of the  Foundation  Level
29    derived   using   a  linear  algorithm.   Under  this  linear
30    algorithm, the calculated general State aid per  pupil  shall
31    decline   in  direct  linear  fashion  from  0.07  times  the
32    Foundation Level for a school district with  Available  Local
33    Resources  equal  to the product of 0.93 times the Foundation
34    Level, to 0.05  times  the  Foundation  Level  for  a  school
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 1    district  with Available Local Resources equal to the product
 2    of 1.75  times  the  Foundation  Level.   The  allocation  of
 3    general  State  aid  for  school  districts  subject  to this
 4    paragraph 3 shall be the calculated  general  State  aid  per
 5    pupil  figure  multiplied  by the Average Daily Attendance of
 6    the school district.
 7        (4)  For any school district for  which  Available  Local
 8    Resources  per  pupil  equals  or exceeds the product of 1.75
 9    times the Foundation Level, the general  State  aid  for  the
10    school  district  shall  be calculated as the product of $218
11    multiplied by the Average  Daily  Attendance  of  the  school
12    district.
13    (F)  Compilation of Average Daily Attendance.
14        (1)  Each  school district shall, by July 1 of each year,
15    submit to the State Board of Education, on  forms  prescribed
16    by  the  State Board of Education, attendance figures for the
17    school year that began in the preceding calendar  year.   The
18    attendance  information  so  transmitted  shall  identify the
19    average daily attendance figures for each month of the school
20    year, except that any days of attendance in August  shall  be
21    added to the month of September and any days of attendance in
22    June shall be added to the month of May.
23        Except  as  otherwise  provided  in this Section, days of
24    attendance by pupils shall be counted only  for  sessions  of
25    not  less  than  5  clock  hours of school work per day under
26    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
27    personnel   or   volunteer   personnel   when   engaging   in
28    non-teaching   duties  and  supervising  in  those  instances
29    specified in subsection (a) of Section 10-22.34 and paragraph
30    10 of Section 34-18, with pupils of legal school age  and  in
31    kindergarten and grades 1 through 12.
32        Days  of attendance by tuition pupils shall be accredited
33    only to the districts that pay the tuition  to  a  recognized
34    school.
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 1        (2)  Days  of  attendance  by pupils of less than 5 clock
 2    hours of school shall be subject to the following  provisions
 3    in the compilation of Average Daily Attendance.
 4             (a)  Pupils  regularly  enrolled  in a public school
 5        for only a part of the school day may be counted  on  the
 6        basis  of  1/6 day for every class hour of instruction of
 7        40 minutes or more attended pursuant to such enrollment.
 8             (b)  Days of attendance may be  less  than  5  clock
 9        hours  on the opening and closing of the school term, and
10        upon the first day of pupil attendance, if preceded by  a
11        day  or  days  utilized  as  an  institute  or  teachers'
12        workshop.
13             (c)  A  session  of  4  or  more  clock hours may be
14        counted as a day of attendance upon certification by  the
15        regional   superintendent,  and  approved  by  the  State
16        Superintendent  of  Education  to  the  extent  that  the
17        district has been forced to use daily multiple sessions.
18             (d)  A session of 3  or  more  clock  hours  may  be
19        counted  as a day of attendance (1) when the remainder of
20        the school day or at least 2 hours in the evening of that
21        day is utilized for an in-service  training  program  for
22        teachers,  up  to  a maximum of 5 days per school year of
23        which a maximum of 4 days of such 5 days may be used  for
24        parent-teacher  conferences, provided a district conducts
25        an in-service training program  for  teachers  which  has
26        been  approved  by the State Superintendent of Education;
27        or, in lieu of 4 such days, 2 full days may be  used,  in
28        which  event  each  such  day  may be counted as a day of
29        attendance; and  (2)  when  days  in  addition  to  those
30        provided  in  item (1) are scheduled by a school pursuant
31        to its school improvement plan adopted under  Article  34
32        or its revised or amended school improvement plan adopted
33        under  Article 2, provided that (i) such sessions of 3 or
34        more clock  hours  are  scheduled  to  occur  at  regular
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 1        intervals, (ii) the remainder of the school days in which
 2        such  sessions occur are utilized for in-service training
 3        programs  or  other  staff  development  activities   for
 4        teachers,  and  (iii)  a  sufficient number of minutes of
 5        school work under the direct supervision of teachers  are
 6        added to the school days between such regularly scheduled
 7        sessions  to  accumulate  not  less  than  the  number of
 8        minutes by which such sessions of 3 or more  clock  hours
 9        fall  short  of 5 clock hours. Any full days used for the
10        purposes of this paragraph shall not  be  considered  for
11        computing  average  daily attendance.  Days scheduled for
12        in-service   training   programs,    staff    development
13        activities,   or   parent-teacher   conferences   may  be
14        scheduled  separately  for  different  grade  levels  and
15        different attendance centers of the district.
16             (e)  A session of  not  less  than  one  clock  hour
17        teaching  of  hospitalized or homebound pupils on-site or
18        by telephone to the classroom may be counted as  1/2  day
19        of  attendance,  however  these  pupils must receive 4 or
20        more clock hours of instruction to be counted for a  full
21        day of attendance.
22             (f)  A  session  of  at  least  4 clock hours may be
23        counted as a day of attendance for  first  grade  pupils,
24        and  pupils in full day kindergartens, and a session of 2
25        or more hours may be counted as 1/2 day of attendance  by
26        pupils  in  kindergartens  which  provide only 1/2 day of
27        attendance.
28             (g)  For children with disabilities  who  are  below
29        the  age of 6 years and who cannot attend 2 or more clock
30        hours  because  of  their  disability  or  immaturity,  a
31        session of not less than one clock hour may be counted as
32        1/2 day of attendance; however for  such  children  whose
33        educational needs so require a session of 4 or more clock
34        hours may be counted as a full day of attendance.
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 1             (h)  A  recognized  kindergarten  which provides for
 2        only 1/2 day of attendance by each pupil shall  not  have
 3        more  than  1/2  day  of attendance counted in any 1 day.
 4        However, kindergartens may count 2 1/2 days of attendance
 5        in any 5 consecutive school days.  When a  pupil  attends
 6        such  a  kindergarten  for  2 half days on any one school
 7        day, the pupil shall have the  following  day  as  a  day
 8        absent  from  school,  unless the school district obtains
 9        permission in writing from the  State  Superintendent  of
10        Education.  Attendance at kindergartens which provide for
11        a  full  day of attendance by each pupil shall be counted
12        the same as attendance by first grade pupils.   Only  the
13        first  year  of  attendance  in one kindergarten shall be
14        counted, except in  case  of  children  who  entered  the
15        kindergarten   in  their  fifth  year  whose  educational
16        development requires a second  year  of  kindergarten  as
17        determined  under  the rules and regulations of the State
18        Board of Education.
19    (G)  Equalized Assessed Valuation Data.
20        (1)  For purposes of the calculation of  Available  Local
21    Resources  required  pursuant  to  subsection  (D), the State
22    Board of  Education  shall  secure  from  the  Department  of
23    Revenue  the value as equalized or assessed by the Department
24    of Revenue of all taxable property of every  school  district
25    together with the applicable tax rate used in extending taxes
26    for  the  funds  of  the  district  as of September 30 of the
27    previous year.
28        This equalized assessed valuation, as adjusted further by
29    the requirements of this subsection, shall be utilized in the
30    calculation of Available Local Resources.
31        (2)  The equalized assessed valuation  in  paragraph  (1)
32    shall be adjusted, as applicable, in the following manner:
33             (a)  For the purposes of calculating State aid under
34        this  Section,  with  respect  to  any  part  of a school
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 1        district within a redevelopment project area  in  respect
 2        to   which  a  municipality  has  adopted  tax  increment
 3        allocation  financing  pursuant  to  the  Tax   Increment
 4        Allocation  Redevelopment Act, Sections 11-74.4-1 through
 5        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
 6        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
 7        11-74.6-50 of the Illinois Municipal Code, no part of the
 8        current equalized assessed  valuation  of  real  property
 9        located in any such project area which is attributable to
10        an  increase  above  the total initial equalized assessed
11        valuation of such property shall be used as part  of  the
12        equalized  assessed valuation of the district, until such
13        time as all redevelopment project costs have  been  paid,
14        as  provided  in  Section  11-74.4-8 of the Tax Increment
15        Allocation Redevelopment Act or in Section 11-74.6-35  of
16        the Industrial Jobs Recovery Law.  For the purpose of the
17        equalized  assessed  valuation of the district, the total
18        initial  equalized  assessed  valuation  or  the  current
19        equalized assessed valuation, whichever is  lower,  shall
20        be  used  until  such  time  as all redevelopment project
21        costs have been paid.
22             (b)  The real property equalized assessed  valuation
23        for  a  school  district shall be adjusted by subtracting
24        from the real property value as equalized or assessed  by
25        the  Department  of  Revenue  for  the district an amount
26        computed by dividing the amount of any abatement of taxes
27        under Section 18-170 of the Property Tax  Code  by  3.00%
28        for a district maintaining grades kindergarten through 12
29        or   by   2.30%   for   a   district  maintaining  grades
30        kindergarten through  8,  or  by  1.20%  for  a  district
31        maintaining grades 9 through 12 and adjusted by an amount
32        computed by dividing the amount of any abatement of taxes
33        under  subsection  (a)  of Section 18-165 of the Property
34        Tax Code by the same percentage rates for  district  type
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 1        as specified in this subparagraph (c).
 2    (H)  Supplemental General State Aid.
 3        (1)  In  addition  to  the  general  State  aid  a school
 4    district is allotted pursuant to subsection  (E),  qualifying
 5    school  districts  shall receive a grant, paid in conjunction
 6    with  a  district's  payments  of  general  State  aid,   for
 7    supplemental  general  State aid based upon the concentration
 8    level of  children  from  low-income  households  within  the
 9    school  district.  Supplemental State aid grants provided for
10    school districts under this subsection shall be  appropriated
11    for distribution to school districts as part of the same line
12    item  in  which  the  general  State  financial aid of school
13    districts is appropriated under this Section. For purposes of
14    this subsection, the term  "Low-Income  Concentration  Level"
15    shall  be  the  low-income eligible pupil count from the most
16    recently available federal  census  divided  by  the  Average
17    Daily Attendance of the school district.
18        (2)  Supplemental  general  State  aid  pursuant  to this
19    subsection shall be provided as follows:
20             (a)  For any  school  district  with  a  Low  Income
21        Concentration  Level  of  at least 20% and less than 35%,
22        the grant for any school year shall be $800 multiplied by
23        the low income eligible pupil count.
24             (b)  For any  school  district  with  a  Low  Income
25        Concentration  Level  of  at least 35% and less than 50%,
26        the grant for the 1998-1999 school year shall  be  $1,100
27        multiplied by the low income eligible pupil count.
28             (c)  For  any  school  district  with  a  Low Income
29        Concentration Level of at least 50% and  less  than  60%,
30        the  grant  for  the  1998-99 school year shall be $1,500
31        multiplied by the low income eligible pupil count.
32             (d)  For any  school  district  with  a  Low  Income
33        Concentration  Level  of  60%  or more, the grant for the
34        1998-99 school year shall be $1,900 multiplied by the low
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 1        income eligible pupil count.
 2             (e)  For the 1999-2000 school year,  the  per  pupil
 3        amount  specified  in  subparagraphs  (b),  (c), and (d),
 4        immediately above shall be increased by $100  to  $1,200,
 5        $1,600, and $2,000, respectively.
 6             (f)  For  the  2000-2001  school year, the per pupil
 7        amounts specified  in  subparagraphs  (b),  (c)  and  (d)
 8        immediately  above  shall be increased to $1,230, $1,640,
 9        and $2,050, respectively.
10        (3)  School districts with an Average Daily Attendance of
11    more than  1,000  and  less  than  50,000  that  qualify  for
12    supplemental  general  State  aid pursuant to this subsection
13    shall submit a plan to the State Board of Education prior  to
14    October  30  of  each year for the use of the funds resulting
15    from this grant of supplemental general  State  aid  for  the
16    improvement  of  instruction  in  which  priority is given to
17    meeting the education needs of disadvantaged children.   Such
18    plan   shall  be  submitted  in  accordance  with  rules  and
19    regulations promulgated by the State Board of Education.
20        (4)  School districts with an Average Daily Attendance of
21    50,000 or more that qualify for  supplemental  general  State
22    aid   pursuant  to  this  subsection  shall  be  required  to
23    distribute from funds available pursuant to this Section,  no
24    less  than  $261,000,000  in  accordance  with  the following
25    requirements:
26             (a)  The required amounts shall  be  distributed  to
27        the  attendance centers within the district in proportion
28        to the number  of  pupils  enrolled  at  each  attendance
29        center  who are eligible to receive free or reduced-price
30        lunches or breakfasts under the federal  Child  Nutrition
31        Act  of  1966  and  under  the  National School Lunch Act
32        during the immediately preceding school year.
33             (b)  The   distribution   of   these   portions   of
34        supplemental  and  general  State  aid  among  attendance
                            -14-               LRB9009191THmb
 1        centers according to  these  requirements  shall  not  be
 2        compensated  for  or  contravened  by  adjustments of the
 3        total of  other  funds  appropriated  to  any  attendance
 4        centers, and the Board of Education shall utilize funding
 5        from  one  or several sources in order to fully implement
 6        this provision annually prior to the opening of school.
 7             (c)  Each attendance center shall be provided by the
 8        school district a distribution  of  noncategorical  funds
 9        and other categorical funds to which an attendance center
10        is entitled under law in order that the general State aid
11        and   supplemental   general   State   aid   provided  by
12        application of this subsection  supplements  rather  than
13        supplants  the noncategorical funds and other categorical
14        funds provided by the school district to  the  attendance
15        centers.
16             (d)  Any  funds made available under this subsection
17        that by reason of the provisions of this  subsection  are
18        not  required  to be allocated and provided to attendance
19        centers may be used and appropriated by the board of  the
20        district for any lawful school purpose.
21             (e)  Funds received by an attendance center pursuant
22        to this subsection shall be used by the attendance center
23        at  the  discretion  of  the  principal  and local school
24        council for programs to improve educational opportunities
25        at qualifying schools through the following programs  and
26        services:  early  childhood education, reduced class size
27        or improved adult to student classroom ratio,  enrichment
28        programs, remedial assistance, attendance improvement and
29        other   educationally   beneficial   expenditures   which
30        supplement  the  regular and basic programs as determined
31        by the State Board of Education.   Funds  provided  shall
32        not be expended for any political or lobbying purposes as
33        defined by board rule.
34             (f)  Each district subject to the provisions of this
                            -15-               LRB9009191THmb
 1        subdivision  (H)(4)  shall  submit  an acceptable plan to
 2        meet the educational needs of disadvantaged children,  in
 3        compliance  with  the  requirements of this paragraph, to
 4        the State Board of Education prior to  July  15  of  each
 5        year. This plan shall be consistent with the decisions of
 6        local  school  councils concerning the school expenditure
 7        plans developed in accordance  with  part  4  of  Section
 8        34-2.3.  The State Board shall approve or reject the plan
 9        within  60  days  after  its  submission.  If the plan is
10        rejected, the  district  shall  give  written  notice  of
11        intent   to  modify  the  plan  within  15  days  of  the
12        notification of rejection and then submit a modified plan
13        within 30 days after the date of the  written  notice  of
14        intent  to  modify.    Districts may amend approved plans
15        pursuant to rules  promulgated  by  the  State  Board  of
16        Education.
17             Upon  notification  by  the State Board of Education
18        that the district has not submitted a plan prior to  July
19        15  or  a  modified plan within the time period specified
20        herein, the State aid funds  affected  by  that  plan  or
21        modified  plan  shall  be  withheld by the State Board of
22        Education until a plan or modified plan is submitted.
23             If the district fails to  distribute  State  aid  to
24        attendance  centers  in accordance with an approved plan,
25        the plan for the following year shall allocate funds,  in
26        addition   to   the  funds  otherwise  required  by  this
27        subsection,  to  those  attendance  centers  which   were
28        underfunded  during the previous year in amounts equal to
29        such underfunding.
30             For purposes of  determining  compliance  with  this
31        subsection  in relation to the requirements of attendance
32        center funding, each district subject to  the  provisions
33        of this subsection shall submit as a separate document by
34        December  1 of each year a report of expenditure data for
                            -16-               LRB9009191THmb
 1        the prior year in addition to  any  modification  of  its
 2        current  plan.  If it is determined that there has been a
 3        failure to comply with the expenditure provisions of this
 4        subsection regarding contravention  or  supplanting,  the
 5        State  Superintendent  of Education shall, within 60 days
 6        of receipt of the report, notify  the  district  and  any
 7        affected local school council.  The district shall within
 8        45  days of receipt of that notification inform the State
 9        Superintendent of Education of the remedial or corrective
10        action to be taken, whether  by amendment of the  current
11        plan,  if  feasible, or by adjustment in the plan for the
12        following  year.   Failure  to  provide  the  expenditure
13        report or the  notification  of  remedial  or  corrective
14        action  in  a timely manner shall result in a withholding
15        of the affected funds.
16             The State Board of Education shall promulgate  rules
17        and  regulations  to  implement  the  provisions  of this
18        subsection.   No  funds  shall  be  released  under  this
19        subdivision (H)(4) to any district that has not submitted
20        a plan that has been  approved  by  the  State  Board  of
21        Education.
22    (I)  General State Aid for Newly Configured School Districts.
23        (1)  For  a  new  school  district  formed  by  combining
24    property   included  totally  within  2  or  more  previously
25    existing school districts, for its first  year  of  existence
26    the  general  State  aid  and  supplemental general State aid
27    calculated under this Section shall be computed for  the  new
28    district  and for the previously existing districts for which
29    property is totally included within the new district.  If the
30    computation on the basis of the previously existing districts
31    is greater, a supplementary payment equal to  the  difference
32    shall  be  made for the first 4 years of existence of the new
33    district.
34        (2)  For a school  district  which  annexes  all  of  the
                            -17-               LRB9009191THmb
 1    territory  of  one or more entire other school districts, for
 2    the  first  year  during  which  the  change  of   boundaries
 3    attributable  to  such  annexation  becomes effective for all
 4    purposes as determined under Section 7-9 or 7A-8, the general
 5    State aid and supplemental general State aid calculated under
 6    this Section shall be computed for the annexing  district  as
 7    constituted  after  the  annexation  and for the annexing and
 8    each annexed district as constituted prior to the annexation;
 9    and if the computation on  the  basis  of  the  annexing  and
10    annexed  districts  as constituted prior to the annexation is
11    greater, a supplementary  payment  equal  to  the  difference
12    shall  be  made  for  the  first  4 years of existence of the
13    annexing school district as constituted upon such annexation.
14        (3)  For 2 or more school districts which  annex  all  of
15    the  territory  of one or more entire other school districts,
16    and for 2 or more community unit districts which result  upon
17    the  division  (pursuant  to petition under Section 11A-2) of
18    one or more other unit school districts into 2 or more  parts
19    and  which  together include all of the parts into which such
20    other unit school district or districts are so  divided,  for
21    the   first  year  during  which  the  change  of  boundaries
22    attributable to such annexation or division becomes effective
23    for all purposes as determined under Section 7-9  or  11A-10,
24    as  the  case  may be, the general State aid and supplemental
25    general State aid calculated  under  this  Section  shall  be
26    computed   for   each   annexing  or  resulting  district  as
27    constituted after the annexation or  division  and  for  each
28    annexing  and  annexed  district,  or  for each resulting and
29    divided district, as constituted prior to the  annexation  or
30    division;  and  if the aggregate of the general State aid and
31    supplemental  general  State  aid  as  so  computed  for  the
32    annexing or resulting  districts  as  constituted  after  the
33    annexation  or  division  is  less  than the aggregate of the
34    general State aid and supplemental general State  aid  as  so
                            -18-               LRB9009191THmb
 1    computed  for  the annexing and annexed districts, or for the
 2    resulting and divided districts, as constituted prior to  the
 3    annexation or division, then a supplementary payment equal to
 4    the  difference  shall be made and allocated between or among
 5    the annexing or resulting districts, as constituted upon such
 6    annexation or division,  for  the  first  4  years  of  their
 7    existence.   The  total difference payment shall be allocated
 8    between or among the annexing or resulting districts  in  the
 9    same  ratio  as the pupil enrollment from that portion of the
10    annexed or divided district or districts which is annexed  to
11    or included in each such annexing or resulting district bears
12    to  the  total  pupil  enrollment  from the entire annexed or
13    divided district or districts, as such  pupil  enrollment  is
14    determined  for the school year last ending prior to the date
15    when the change of boundaries attributable to the  annexation
16    or  division  becomes effective for all purposes.  The amount
17    of the total difference payment and the amount thereof to  be
18    allocated  to  the  annexing  or resulting districts shall be
19    computed by the State Board of  Education  on  the  basis  of
20    pupil  enrollment  and other data which shall be certified to
21    the State Board of Education, on forms which it shall provide
22    for that purpose, by the regional superintendent  of  schools
23    for each educational service region in which the annexing and
24    annexed  districts,  or  resulting  and divided districts are
25    located.
26        (4)  Any supplementary payment made under this subsection
27    (I) shall be treated as separate from all other payments made
28    pursuant to this Section.
29    (J)  Supplementary Grants in Aid.
30        (1)  Notwithstanding  any  other   provisions   of   this
31    Section,  the  amount  of  the aggregate general State aid in
32    combination with supplemental general State  aid  under  this
33    Section  for  which  each school district is eligible for the
34    1998-1999 school year shall be no less than the amount of the
                            -19-               LRB9009191THmb
 1    aggregate general State aid entitlement that was received  by
 2    the   district  under  Section  18-8  (exclusive  of  amounts
 3    received under subsections 5(p) and 5(p-5) of  that  Section)
 4    for  the  1997-98  school year, pursuant to the provisions of
 5    that Section as it was then in effect. If a  school  district
 6    qualifies  to receive a supplementary payment made under this
 7    subsection (J) for the 1998-1999 school year, the  amount  of
 8    the   aggregate   general   State  aid  in  combination  with
 9    supplemental general State aid under this Section  which that
10    district  is  eligible  to  receive  for  each  school   year
11    subsequent to the 1998-1999 school year shall be no less than
12    the  amount  of  the  aggregate general State aid entitlement
13    that  was  received  by  the  district  under  Section   18-8
14    (exclusive  of  amounts  received  under subsections 5(p) and
15    5(p-5) of  that  Section)  for  the  1997-1998  school  year,
16    pursuant  to the provisions of that Section as it was then in
17    effect.
18        (2)  If, as provided in paragraph (1) of this  subsection
19    (J),  a school district is to receive aggregate general State
20    aid in combination with supplemental general State aid  under
21    this  Section for the 1998-99 school year, or for the 1998-99
22    school year and any subsequent school year, that in any  such
23    school  year is less than the amount of the aggregate general
24    State aid entitlement that  the  district  received  for  the
25    1997-98  school year, the school district shall also receive,
26    from a separate  appropriation  made  for  purposes  of  this
27    subsection  (J), a supplementary payment that is equal to the
28    amount of the difference in the aggregate State  aid  figures
29    as described in paragraph (1).
30        (3)  If   the   amount   appropriated  for  supplementary
31    payments to school districts under  this  subsection  (J)  is
32    insufficient  for  that  purpose,  the supplementary payments
33    that districts are to receive under this subsection shall  be
34    prorated   according   to   the   aggregate   amount  of  the
                            -20-               LRB9009191THmb
 1    appropriation made for purposes of this subsection.
 2    (K)  Grants to Laboratory and Alternative Schools.
 3        In calculating the amount to be  paid  to  the  governing
 4    board  of  a  public  university  that  operates a laboratory
 5    school under this Section or to any alternative  school  that
 6    is  operated by a regional superintendent, the State Board of
 7    Education shall require by rule such  reporting  requirements
 8    as it deems necessary.
 9        As  used  in  this  Section,  "laboratory school" means a
10    public school which is  created  and  operated  by  a  public
11    university and approved by the State Board of Education.  The
12    governing  board  of a public university which receives funds
13    from the State  Board  under  this  subsection  (K)  may  not
14    increase  the  number  of students enrolled in its laboratory
15    school from a single district, if that  district  is  already
16    sending  50 or more students, except under a mutual agreement
17    between the school board of a student's district of residence
18    and the university which operates the laboratory  school.   A
19    laboratory  school  may  not  have  more than 1,000 students,
20    excluding students with disabilities in a  special  education
21    program.
22        As  used  in  this  Section, "alternative school" means a
23    public school which is created and  operated  by  a  Regional
24    Superintendent  of Schools and approved by the State Board of
25    Education. Such alternative  schools  may  offer  courses  of
26    instruction  for  which  credit  is  given  in regular school
27    programs, courses to prepare students  for  the  high  school
28    equivalency  testing  program  or vocational and occupational
29    training.
30        Each laboratory and alternative  school  shall  file,  on
31    forms  provided  by the State Superintendent of Education, an
32    annual  State  aid  claim  which  states  the  Average  Daily
33    Attendance of the school's students by  month.   The  best  3
34    months'  Average  Daily Attendance shall be computed for each
                            -21-               LRB9009191THmb
 1    school. The general State aid entitlement shall  be  computed
 2    by multiplying the applicable Average Daily Attendance by the
 3    Foundation Level as determined under this Section.
 4    (L)  Payments,   Additional   Grants   in   Aid   and   Other
 5    Requirements.
 6        (1)  For  a school district operating under the financial
 7    supervision of an Authority created under  Article  34A,  the
 8    general  State  aid  otherwise payable to that district under
 9    this Section, but not the  supplemental  general  State  aid,
10    shall  be  reduced  by  an amount equal to the budget for the
11    operations of the Authority as certified by the Authority  to
12    the  State  Board  of  Education, and an amount equal to such
13    reduction shall be paid to the  Authority  created  for  such
14    district for its operating expenses in the manner provided in
15    Section 18-11.  The remainder of general State school aid for
16    any  such  district  shall be paid in accordance with Article
17    34A when that Article provides for a disposition  other  than
18    that provided by this Article.
19        (2)  Impaction.   Impaction  payments  shall  be  made as
20    provided for in Section 18-4.2.
21        (3)  Summer school.  Summer school payments shall be made
22    as provided in Section 18-4.3.
23    (M)  Education Funding Advisory Board.
24        The Education Funding Advisory Board, hereinafter in this
25    subsection (M) referred to as the "Board", is hereby created.
26    The Board shall consist of 5 members who are appointed by the
27    Governor, by and with the advice and consent of  the  Senate.
28    The   members  appointed  shall  include  representatives  of
29    education, business, and  the  general  public.  One  of  the
30    members  so  appointed shall be designated by the Governor at
31    the time the appointment is made as the  chairperson  of  the
32    Board.  The initial members of the Board may be appointed any
33    time after the effective date of this amendatory Act of 1997.
                            -22-               LRB9009191THmb
 1    The regular term of each member of the Board shall be  for  4
 2    years  from  the third Monday of January of the year in which
 3    the term of the member's appointment is to  commence,  except
 4    that  of  the  5  initial  members  appointed to serve on the
 5    Board, the member who is appointed as the  chairperson  shall
 6    serve  for  a  term  that commences on the date of his or her
 7    appointment and expires on the third Monday of January, 2002,
 8    and the remaining 4 members,  by  lots  drawn  at  the  first
 9    meeting  of  the  Board  that is held after all 5 members are
10    appointed, shall determine 2 of their  number  to  serve  for
11    terms   that   commence  on  the  date  of  their  respective
12    appointments and expire on the third Monday of January, 2001,
13    and 2 of their number to serve for terms that commence on the
14    date of their respective appointments and expire on the third
15    Monday of January, 2000.  All members appointed to  serve  on
16    the  Board  shall serve until their respective successors are
17    appointed and confirmed.  Vacancies shall be  filled  in  the
18    same  manner  as  original  appointments.   If  a  vacancy in
19    membership occurs at  a  time  when  the  Senate  is  not  in
20    session,  the  Governor  shall  make  a temporary appointment
21    until the next meeting of the Senate, when he  or  she  shall
22    appoint,  by and with the advice and consent of the Senate, a
23    person to fill that membership for the  unexpired  term.   If
24    the  Senate  is  not in session when the initial appointments
25    are made, those appointments shall be made as in the case  of
26    vacancies.
27        The  Education  Funding  Advisory  Board  shall be deemed
28    established,  and  the  initial  members  appointed  by   the
29    Governor  to serve as members of the Board shall take office,
30    on the date that the Governor makes his or her appointment of
31    the fifth initial member of the Board, whether those  initial
32    members   are   then  serving  pursuant  to  appointment  and
33    confirmation or pursuant to temporary appointments  that  are
34    made by the Governor as in the case of vacancies.
                            -23-               LRB9009191THmb
 1        The  State  Board  of  Education shall provide such staff
 2    assistance to the Education  Funding  Advisory  Board  as  is
 3    reasonably  required  for the proper performance by the Board
 4    of its responsibilities.
 5        For school years after the  2000-2001  school  year,  the
 6    Education  Funding  Advisory  Board, in consultation with the
 7    State Board  of  Education,  shall  make  recommendations  as
 8    provided  in  this subsection (M) to the General Assembly for
 9    the foundation level under subdivision (B)(3) of this Section
10    and for the supplemental general State aid grant level  under
11    subsection  (H)  of  this  Section  for  districts  with high
12    concentrations of children  from  poverty.   The  recommended
13    foundation  level  shall be determined based on a methodology
14    which  incorporates  the  basic  education  expenditures   of
15    low-spending  schools  exhibiting  high academic performance.
16    The  Education  Funding  Advisory  Board  shall   make   such
17    recommendations  to  the General Assembly on January 1 of odd
18    numbered years, beginning January 1, 2001.
19    (N)  General State Aid Adjustment Grant.
20        (1)  Any  school  district  subject   to   property   tax
21    extension  limitations as imposed under the provisions of the
22    Property Tax Extension Limitation Law shall  be  entitled  to
23    receive,  subject  to  the qualifications and requirements of
24    this  subsection,  a  general  State  aid  adjustment  grant.
25    Eligibility for this grant shall be determined on  an  annual
26    basis  and claims for grant payments shall be paid subject to
27    appropriations  made  specific  to  this   subsection.    For
28    purposes  of  this  subsection the following terms shall have
29    the following meanings:
30        "Budget Year":  The school year for which  general  State
31    aid is calculated and awarded under subsection (E).
32        "Current  Year":   The  school year immediately preceding
33    the Budget Year.
34        "Base Tax Year":  The property  tax  levy  year  used  to
                            -24-               LRB9009191THmb
 1    calculate the Budget Year allocation of general State aid.
 2        "Preceding   Tax  Year":   The  property  tax  levy  year
 3    immediately preceding the Base Tax Year.
 4        "Extension  Limitation   Ratio":   A   numerical   ratio,
 5    certified  by  a school district's County Clerk, in which the
 6    numerator  is  the  Base  Tax  Year's  tax  extension  amount
 7    resulting from the Operating Tax Rate and the denominator  is
 8    the  Preceding Tax Year's tax extension amount resulting from
 9    the Operating Tax Rate.
10        "Operating Tax Rate": The operating tax rate  as  defined
11    in subsection (A).
12        (2)  To qualify for a general State aid adjustment grant,
13    a  school district must meet all of the following eligibility
14    criteria for each Budget Year for which a grant is claimed:
15             (a)  The Operating Tax Rate of the  school  district
16        in  the Preceding Tax Year was at least 3.00% in the case
17        of a  school  district  maintaining  grades  kindergarten
18        through  12,  at  least  2.30%  in  the  case of a school
19        district maintaining grades kindergarten through 8, or at
20        least 1.41% in the case of a school district  maintaining
21        grades 9 through 12.
22             (b)  The  Operating  Tax Rate of the school district
23        for the Base Tax Year was reduced by  the  Clerk  of  the
24        County  as  a  result of the requirements of the Property
25        Tax Extension Limitation Law.
26             (c)  The Available Local Resources per pupil of  the
27        school  district as calculated pursuant to subsection (D)
28        using the Base Tax Year are less than the product of 1.75
29        times the Foundation Level for the Budget Year.
30             (d)  The school district  has  filed  a  proper  and
31        timely  claim for a general State aid adjustment grant as
32        required under this subsection.
33        (3)  A claim for grant assistance under  this  subsection
34    shall be filed with the State Board of Education on or before
                            -25-               LRB9009191THmb
 1    January  1  of  the  Current  Year for a grant for the Budget
 2    Year.  The claim shall be made on  forms  prescribed  by  the
 3    State Board of Education and must be accompanied by a written
 4    statement from the Clerk of the County, certifying:
 5             (a)  That  the school district has its extension for
 6        the Base Tax Year reduced as a result of the Property Tax
 7        Extension Limitation Law.
 8             (b)  That the  Operating  Tax  Rate  of  the  school
 9        district  for  the  Preceding  Tax  Year met the tax rate
10        requirements of subdivision (N)(2) of this Section.
11             (c)  The Extension Limitation Ratio as that term  is
12        defined in this subsection.
13        (4)  On  or  before August 1 of the Budget Year the State
14    Board of Education shall calculate, for all school  districts
15    meeting the other requirements of this subsection, the amount
16    of  the  general State aid adjustment grant, if any, that the
17    school districts are eligible to receive in the Budget  Year.
18    The amount of the general State aid adjustment grant shall be
19    calculated as follows:
20             (a)  Determine  the  school district's general State
21        aid grant for the Budget Year as provided  in  accordance
22        with the provisions of subsection (E).
23             (b)  Determine  the school district's adjusted level
24        of general State aid by utilizing in the  calculation  of
25        Available Local Resources an equalized assessed valuation
26        that is the equalized assessed valuation of the Preceding
27        Tax Year multiplied by the Extension Limitation Ratio.
28             (c)  Subtract  the  sum  derived in subparagraph (a)
29        from the sum derived in subparagraph (b).  If the  result
30        is  a  positive  number, that amount shall be the general
31        State aid adjustment grant that the district is  eligible
32        to receive.
33        (5)  The  State  Board  of Education shall in the Current
34    Year, based upon claims filed in the Current Year,  recommend
                            -26-               LRB9009191THmb
 1    to  the  General  Assembly  an  appropriation  amount for the
 2    general State aid adjustment grants to be made in the  Budget
 3    Year.
 4        (6)  Claims for general State aid adjustment grants shall
 5    be  paid  in  a lump sum on or before January 1 of the Budget
 6    Year only from appropriations made by  the  General  Assembly
 7    expressly  for  claims under this subsection.  No such claims
 8    may be paid from amounts appropriated for any  other  purpose
 9    provided  for  under  this  Section.   In  the event that the
10    appropriation   for   claims   under   this   subsection   is
11    insufficient to meet all Budget Year  claims  for  a  general
12    State aid adjustment grant, the appropriation available shall
13    be  proportionately  prorated by the State Board of Education
14    amongst all districts filing for and entitled to payments.
15        (7)  The State Board of Education  shall  promulgate  the
16    required  claim  forms  and  rules necessary to implement the
17    provisions of this subsection.
18    (O)  References.
19        (1)  References in other laws to the various subdivisions
20    of Section 18-8 as that Section existed before its repeal and
21    replacement by this Section 18-8.05 shall be deemed to  refer
22    to  the  corresponding provisions of this Section 18-8.05, to
23    the extent that those references remain applicable.
24        (2)  References in other laws to State  Chapter  1  funds
25    shall  be  deemed  to refer to the supplemental general State
26    aid provided under subsection (H) of this Section.
27    (Source: P.A. 90-548, eff. 7-1-98.)

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