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90_SB0616
SEE INDEX
Creates the Fund Education First Act and amends the State
Finance Act, Illinois Income Tax Act, Property Tax Code, and
School Code. Beginning with FY 1998 requires appropriations
to be made for elementary and secondary education that are at
least equal to the sum of (i) the total amount appropriated
from general funds revenues for elementary and secondary
education for the preceding fiscal year (exclusive of
revenues that beginning in FY 1999 are appropriated from the
Education Funding Reform Fund); (ii) 50% of the growth in
general funds revenues during a current fiscal year over the
preceding fiscal year (exclusive of growth in revenues
deposited into the Education Funding Reform Fund); and (iii)
for FY 1999 and thereafter, 100% of the amount deposited in
the Education Funding Reform Fund during the preceding fiscal
year. Establishes a continued minimum funding level after
the aggregate amount appropriated under the foregoing method
represents 50% of total revenues available from local, State,
and federal sources. Increases the income tax rates to 3.25%
for individuals and 5.2% for corporations beginning July 1,
1997 and earmarks the increase for deposit into the Education
Funding Reform Fund created in the State treasury. Requires
the county clerk to abate a school district's educational
purposes tax on farmland and residential property in an
amount that equals the amount the district receives from the
Education Funding Reform Fund during the calendar year
preceding the extension year. Provides that amounts in the
Education Funding Reform Fund are to be used solely for
appropriation and distribution to school districts based on
the ratio of the aggregate value of farmland and residential
property in each district to the aggregate value of all
farmland and residential property in the State. Provides for
an income tax credit equal to 2.5% of the real property taxes
paid by a taxpayer on commercial and industrial property.
Provides that if the maximum rate at which a school district
may levy a school tax (other than to pay debt service on long
term obligations) increases after the amendatory Act's
effective date, the voters of the district may by referendum
require the tax rate to be reduced to a lower rate.
Effective immediately.
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1 AN ACT relating to elementary and secondary education
2 funding.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Fund Education First Act.
7 Section 5. Educational appropriations. Beginning with
8 fiscal year 1998 and in each fiscal year thereafter, subject
9 to the provisions of Section 10 of this Act, the General
10 Assembly shall appropriate for elementary and secondary
11 educational programs an amount that is equal to or exceeds
12 the sum of: (i) the total amount appropriated from general
13 funds revenues (exclusive of any revenues that, beginning in
14 fiscal year 1999 or thereafter, are appropriated from the
15 Education Funding Reform Fund) for elementary and secondary
16 educational programs during the fiscal year immediately
17 preceding the fiscal year for which the appropriation is
18 being made; (ii) 50% of the growth in general funds revenues
19 (exclusive of any growth in the amount of revenues that are
20 deposited into the Education Funding Reform Fund) for the
21 fiscal year for which the appropriation is being made, when
22 comparing those general funds revenues estimated to be
23 available for that fiscal year with the general funds
24 revenues (exclusive of any revenues in the Education Funding
25 Reform Fund) available for the immediately preceding fiscal
26 year, as determined by the Bureau of the Budget; and (iii)
27 for fiscal year 1999 and thereafter, 100% of the amount
28 deposited in the Education Funding Reform Fund during the
29 fiscal year immediately preceding the fiscal year for which
30 the appropriation is being made.
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1 Section 10. Continued minimum funding level. Funding
2 for elementary and secondary educational programs shall
3 continue to be appropriated as required by the formula
4 established in Section 5 until the amount appropriated under
5 items (i), (ii), and (iii) of Section 5 for elementary and
6 secondary educational programs for a fiscal year represents
7 one-half of the total revenues available from local, State,
8 and federal sources for elementary and secondary educational
9 programs for that same fiscal year, as estimated by the State
10 Superintendent of Education. In each subsequent fiscal year,
11 the aggregate amount appropriated from general funds revenues
12 and the Education Funding Reform Fund for elementary and
13 secondary educational programs shall be not less than the
14 greater of the following amounts: (i) the aggregate amount
15 appropriated from general funds revenues and the Education
16 Funding Reform Fund for those purposes during the first
17 fiscal year after the effective date of this Act when the
18 amount so appropriated represents at least one-half of the
19 total revenues available from local, State, and federal
20 sources for elementary and secondary educational programs for
21 that same fiscal year, or (ii) an amount that represents not
22 less than one-half of the total revenues available from
23 local, State, and federal sources for elementary and
24 secondary educational programs for that subsequent fiscal
25 year, as estimated by the State Superintendent of Education.
26 Section 15. Governor's budget. Beginning with fiscal
27 year 1999 and in each fiscal year thereafter, the Governor
28 shall include in his annual budget an allocation for
29 elementary and secondary education that conforms to the
30 provisions of this Act.
31 Section 75. The State Finance Act is amended by adding
32 Section 5.449 as follows:
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1 (30 ILCS 105/5.449 new)
2 Sec. 5.449. The Education Funding Reform Fund.
3 Section 80. The Illinois Income Tax Act is amended by
4 changing Sections 201 and 901 and adding Sections 202.5 and
5 208.5 as follows:
6 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
7 Sec. 201. Tax Imposed.
8 (a) In general. A tax measured by net income is hereby
9 imposed on every individual, corporation, trust and estate
10 for each taxable year ending after July 31, 1969 on the
11 privilege of earning or receiving income in or as a resident
12 of this State. Such tax shall be in addition to all other
13 occupation or privilege taxes imposed by this State or by any
14 municipal corporation or political subdivision thereof.
15 (b) Rates. The tax imposed by subsection (a) of this
16 Section shall be determined as follows:
17 (1) In the case of an individual, trust or estate,
18 for taxable years ending prior to July 1, 1989, an amount
19 equal to 2 1/2% of the taxpayer's net income for the
20 taxable year.
21 (2) In the case of an individual, trust or estate,
22 for taxable years beginning prior to July 1, 1989 and
23 ending after June 30, 1989, an amount equal to the sum of
24 (i) 2 1/2% of the taxpayer's net income for the period
25 prior to July 1, 1989, as calculated under Section 202.3,
26 and (ii) 3% of the taxpayer's net income for the period
27 after June 30, 1989, as calculated under Section 202.3.
28 (3) In the case of an individual, trust or estate,
29 for taxable years beginning after June 30, 1989, and
30 ending prior to July 1, 1997, an amount equal to 3% of
31 the taxpayer's net income for the taxable year.
32 (4) In the case of an individual, trust or estate,
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1 for taxable years beginning prior to July 1 1997, and
2 ending after June 30, 1997, an amount equal to the sum of
3 (i) 3% of the taxpayer's net income for the period prior
4 to July 1, 1997, as calculated under Section 202.5, and
5 (ii) 3.25% of the taxpayer's net income for the period
6 after June 30, 1997, as calculated under Section 202.5
7 (Blank).
8 (5) In the case of an individual, trust or estate,
9 for taxable years beginning after June 30, 1997, an
10 amount equal to 3.25% of the taxpayer's net income for
11 the taxable year(Blank).
12 (6) In the case of a corporation, for taxable years
13 ending prior to July 1, 1989, an amount equal to 4% of
14 the taxpayer's net income for the taxable year.
15 (7) In the case of a corporation, for taxable years
16 beginning prior to July 1, 1989 and ending after June 30,
17 1989, an amount equal to the sum of (i) 4% of the
18 taxpayer's net income for the period prior to July 1,
19 1989, as calculated under Section 202.3, and (ii) 4.8% of
20 the taxpayer's net income for the period after June 30,
21 1989, as calculated under Section 202.3.
22 (8) In the case of a corporation, for taxable years
23 beginning after June 30, 1989, and ending prior to July
24 1, 1997, an amount equal to 4.8% of the taxpayer's net
25 income for the taxable year.
26 (9) In the case of a corporation, for taxable years
27 beginning prior to July 1, 1997, and ending after June
28 30, 1997, an amount equal to the sum of (i) 4.8% of the
29 taxpayer's net income for the period prior to July 1,
30 1997, as calculated under Section 202.5, and (ii) 5.2% of
31 the taxpayer's net income for the period after June 30,
32 1997, as calculated under Section 202.5.
33 (10) In case of a corporation, for taxable years
34 beginning after June 30, 1997, an amount equal to 5.2% of
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1 the taxpayer's net income for the taxable year.
2 (c) Beginning on July 1, 1979 and thereafter, in
3 addition to such income tax, there is also hereby imposed the
4 Personal Property Tax Replacement Income Tax measured by net
5 income on every corporation (including Subchapter S
6 corporations), partnership and trust, for each taxable year
7 ending after June 30, 1979. Such taxes are imposed on the
8 privilege of earning or receiving income in or as a resident
9 of this State. The Personal Property Tax Replacement Income
10 Tax shall be in addition to the income tax imposed by
11 subsections (a) and (b) of this Section and in addition to
12 all other occupation or privilege taxes imposed by this State
13 or by any municipal corporation or political subdivision
14 thereof.
15 (d) Additional Personal Property Tax Replacement Income
16 Tax Rates. The personal property tax replacement income tax
17 imposed by this subsection and subsection (c) of this Section
18 in the case of a corporation, other than a Subchapter S
19 corporation, shall be an additional amount equal to 2.85% of
20 such taxpayer's net income for the taxable year, except that
21 beginning on January 1, 1981, and thereafter, the rate of
22 2.85% specified in this subsection shall be reduced to 2.5%,
23 and in the case of a partnership, trust or a Subchapter S
24 corporation shall be an additional amount equal to 1.5% of
25 such taxpayer's net income for the taxable year.
26 (e) Investment credit. A taxpayer shall be allowed a
27 credit against the Personal Property Tax Replacement Income
28 Tax for investment in qualified property.
29 (1) A taxpayer shall be allowed a credit equal to
30 .5% of the basis of qualified property placed in service
31 during the taxable year, provided such property is placed
32 in service on or after July 1, 1984. There shall be
33 allowed an additional credit equal to .5% of the basis of
34 qualified property placed in service during the taxable
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1 year, provided such property is placed in service on or
2 after July 1, 1986, and the taxpayer's base employment
3 within Illinois has increased by 1% or more over the
4 preceding year as determined by the taxpayer's employment
5 records filed with the Illinois Department of Employment
6 Security. Taxpayers who are new to Illinois shall be
7 deemed to have met the 1% growth in base employment for
8 the first year in which they file employment records with
9 the Illinois Department of Employment Security. The
10 provisions added to this Section by Public Act 85-1200
11 (and restored by Public Act 87-895) shall be construed as
12 declaratory of existing law and not as a new enactment.
13 If, in any year, the increase in base employment within
14 Illinois over the preceding year is less than 1%, the
15 additional credit shall be limited to that percentage
16 times a fraction, the numerator of which is .5% and the
17 denominator of which is 1%, but shall not exceed .5%.
18 The investment credit shall not be allowed to the extent
19 that it would reduce a taxpayer's liability in any tax
20 year below zero, nor may any credit for qualified
21 property be allowed for any year other than the year in
22 which the property was placed in service in Illinois. For
23 tax years ending on or after December 31, 1987, and on or
24 before December 31, 1988, the credit shall be allowed for
25 the tax year in which the property is placed in service,
26 or, if the amount of the credit exceeds the tax liability
27 for that year, whether it exceeds the original liability
28 or the liability as later amended, such excess may be
29 carried forward and applied to the tax liability of the 5
30 taxable years following the excess credit years if the
31 taxpayer (i) makes investments which cause the creation
32 of a minimum of 2,000 full-time equivalent jobs in
33 Illinois, (ii) is located in an enterprise zone
34 established pursuant to the Illinois Enterprise Zone Act
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1 and (iii) is certified by the Department of Commerce and
2 Community Affairs as complying with the requirements
3 specified in clause (i) and (ii) by July 1, 1986. The
4 Department of Commerce and Community Affairs shall notify
5 the Department of Revenue of all such certifications
6 immediately. For tax years ending after December 31,
7 1988, the credit shall be allowed for the tax year in
8 which the property is placed in service, or, if the
9 amount of the credit exceeds the tax liability for that
10 year, whether it exceeds the original liability or the
11 liability as later amended, such excess may be carried
12 forward and applied to the tax liability of the 5 taxable
13 years following the excess credit years. The credit shall
14 be applied to the earliest year for which there is a
15 liability. If there is credit from more than one tax year
16 that is available to offset a liability, earlier credit
17 shall be applied first.
18 (2) The term "qualified property" means property
19 which:
20 (A) is tangible, whether new or used,
21 including buildings and structural components of
22 buildings and signs that are real property, but not
23 including land or improvements to real property that
24 are not a structural component of a building such as
25 landscaping, sewer lines, local access roads,
26 fencing, parking lots, and other appurtenances;
27 (B) is depreciable pursuant to Section 167 of
28 the Internal Revenue Code, except that "3-year
29 property" as defined in Section 168(c)(2)(A) of that
30 Code is not eligible for the credit provided by this
31 subsection (e);
32 (C) is acquired by purchase as defined in
33 Section 179(d) of the Internal Revenue Code;
34 (D) is used in Illinois by a taxpayer who is
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1 primarily engaged in manufacturing, or in mining
2 coal or fluorite, or in retailing; and
3 (E) has not previously been used in Illinois
4 in such a manner and by such a person as would
5 qualify for the credit provided by this subsection
6 (e) or subsection (f).
7 (3) For purposes of this subsection (e),
8 "manufacturing" means the material staging and production
9 of tangible personal property by procedures commonly
10 regarded as manufacturing, processing, fabrication, or
11 assembling which changes some existing material into new
12 shapes, new qualities, or new combinations. For purposes
13 of this subsection (e) the term "mining" shall have the
14 same meaning as the term "mining" in Section 613(c) of
15 the Internal Revenue Code. For purposes of this
16 subsection (e), the term "retailing" means the sale of
17 tangible personal property or services rendered in
18 conjunction with the sale of tangible consumer goods or
19 commodities.
20 (4) The basis of qualified property shall be the
21 basis used to compute the depreciation deduction for
22 federal income tax purposes.
23 (5) If the basis of the property for federal income
24 tax depreciation purposes is increased after it has been
25 placed in service in Illinois by the taxpayer, the amount
26 of such increase shall be deemed property placed in
27 service on the date of such increase in basis.
28 (6) The term "placed in service" shall have the
29 same meaning as under Section 46 of the Internal Revenue
30 Code.
31 (7) If during any taxable year, any property ceases
32 to be qualified property in the hands of the taxpayer
33 within 48 months after being placed in service, or the
34 situs of any qualified property is moved outside Illinois
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1 within 48 months after being placed in service, the
2 Personal Property Tax Replacement Income Tax for such
3 taxable year shall be increased. Such increase shall be
4 determined by (i) recomputing the investment credit which
5 would have been allowed for the year in which credit for
6 such property was originally allowed by eliminating such
7 property from such computation and, (ii) subtracting such
8 recomputed credit from the amount of credit previously
9 allowed. For the purposes of this paragraph (7), a
10 reduction of the basis of qualified property resulting
11 from a redetermination of the purchase price shall be
12 deemed a disposition of qualified property to the extent
13 of such reduction.
14 (8) Unless the investment credit is extended by
15 law, the basis of qualified property shall not include
16 costs incurred after December 31, 2003, except for costs
17 incurred pursuant to a binding contract entered into on
18 or before December 31, 2003.
19 (f) Investment credit; Enterprise Zone.
20 (1) A taxpayer shall be allowed a credit against
21 the tax imposed by subsections (a) and (b) of this
22 Section for investment in qualified property which is
23 placed in service in an Enterprise Zone created pursuant
24 to the Illinois Enterprise Zone Act. For partners and for
25 shareholders of Subchapter S corporations, there shall be
26 allowed a credit under this subsection (f) to be
27 determined in accordance with the determination of income
28 and distributive share of income under Sections 702 and
29 704 and Subchapter S of the Internal Revenue Code. The
30 credit shall be .5% of the basis for such property. The
31 credit shall be available only in the taxable year in
32 which the property is placed in service in the Enterprise
33 Zone and shall not be allowed to the extent that it would
34 reduce a taxpayer's liability for the tax imposed by
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1 subsections (a) and (b) of this Section to below zero.
2 For tax years ending on or after December 31, 1985, the
3 credit shall be allowed for the tax year in which the
4 property is placed in service, or, if the amount of the
5 credit exceeds the tax liability for that year, whether
6 it exceeds the original liability or the liability as
7 later amended, such excess may be carried forward and
8 applied to the tax liability of the 5 taxable years
9 following the excess credit year. The credit shall be
10 applied to the earliest year for which there is a
11 liability. If there is credit from more than one tax year
12 that is available to offset a liability, the credit
13 accruing first in time shall be applied first.
14 (2) The term qualified property means property
15 which:
16 (A) is tangible, whether new or used,
17 including buildings and structural components of
18 buildings;
19 (B) is depreciable pursuant to Section 167 of
20 the Internal Revenue Code, except that "3-year
21 property" as defined in Section 168(c)(2)(A) of that
22 Code is not eligible for the credit provided by this
23 subsection (f);
24 (C) is acquired by purchase as defined in
25 Section 179(d) of the Internal Revenue Code;
26 (D) is used in the Enterprise Zone by the
27 taxpayer; and
28 (E) has not been previously used in Illinois
29 in such a manner and by such a person as would
30 qualify for the credit provided by this subsection
31 (f) or subsection (e).
32 (3) The basis of qualified property shall be the
33 basis used to compute the depreciation deduction for
34 federal income tax purposes.
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1 (4) If the basis of the property for federal income
2 tax depreciation purposes is increased after it has been
3 placed in service in the Enterprise Zone by the taxpayer,
4 the amount of such increase shall be deemed property
5 placed in service on the date of such increase in basis.
6 (5) The term "placed in service" shall have the
7 same meaning as under Section 46 of the Internal Revenue
8 Code.
9 (6) If during any taxable year, any property ceases
10 to be qualified property in the hands of the taxpayer
11 within 48 months after being placed in service, or the
12 situs of any qualified property is moved outside the
13 Enterprise Zone within 48 months after being placed in
14 service, the tax imposed under subsections (a) and (b) of
15 this Section for such taxable year shall be increased.
16 Such increase shall be determined by (i) recomputing the
17 investment credit which would have been allowed for the
18 year in which credit for such property was originally
19 allowed by eliminating such property from such
20 computation, and (ii) subtracting such recomputed credit
21 from the amount of credit previously allowed. For the
22 purposes of this paragraph (6), a reduction of the basis
23 of qualified property resulting from a redetermination of
24 the purchase price shall be deemed a disposition of
25 qualified property to the extent of such reduction.
26 (g) Jobs Tax Credit; Enterprise Zone and Foreign
27 Trade Zone or Sub-Zone.
28 (1) A taxpayer conducting a trade or business in an
29 enterprise zone or a High Impact Business designated by
30 the Department of Commerce and Community Affairs
31 conducting a trade or business in a federally designated
32 Foreign Trade Zone or Sub-Zone shall be allowed a credit
33 against the tax imposed by subsections (a) and (b) of
34 this Section in the amount of $500 per eligible employee
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1 hired to work in the zone during the taxable year.
2 (2) To qualify for the credit:
3 (A) the taxpayer must hire 5 or more eligible
4 employees to work in an enterprise zone or federally
5 designated Foreign Trade Zone or Sub-Zone during the
6 taxable year;
7 (B) the taxpayer's total employment within the
8 enterprise zone or federally designated Foreign
9 Trade Zone or Sub-Zone must increase by 5 or more
10 full-time employees beyond the total employed in
11 that zone at the end of the previous tax year for
12 which a jobs tax credit under this Section was
13 taken, or beyond the total employed by the taxpayer
14 as of December 31, 1985, whichever is later; and
15 (C) the eligible employees must be employed
16 180 consecutive days in order to be deemed hired for
17 purposes of this subsection.
18 (3) An "eligible employee" means an employee who
19 is:
20 (A) Certified by the Department of Commerce
21 and Community Affairs as "eligible for services"
22 pursuant to regulations promulgated in accordance
23 with Title II of the Job Training Partnership Act,
24 Training Services for the Disadvantaged or Title III
25 of the Job Training Partnership Act, Employment and
26 Training Assistance for Dislocated Workers Program.
27 (B) Hired after the enterprise zone or
28 federally designated Foreign Trade Zone or Sub-Zone
29 was designated or the trade or business was located
30 in that zone, whichever is later.
31 (C) Employed in the enterprise zone or Foreign
32 Trade Zone or Sub-Zone. An employee is employed in
33 an enterprise zone or federally designated Foreign
34 Trade Zone or Sub-Zone if his services are rendered
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1 there or it is the base of operations for the
2 services performed.
3 (D) A full-time employee working 30 or more
4 hours per week.
5 (4) For tax years ending on or after December 31,
6 1985 and prior to December 31, 1988, the credit shall be
7 allowed for the tax year in which the eligible employees
8 are hired. For tax years ending on or after December 31,
9 1988, the credit shall be allowed for the tax year
10 immediately following the tax year in which the eligible
11 employees are hired. If the amount of the credit exceeds
12 the tax liability for that year, whether it exceeds the
13 original liability or the liability as later amended,
14 such excess may be carried forward and applied to the tax
15 liability of the 5 taxable years following the excess
16 credit year. The credit shall be applied to the earliest
17 year for which there is a liability. If there is credit
18 from more than one tax year that is available to offset a
19 liability, earlier credit shall be applied first.
20 (5) The Department of Revenue shall promulgate such
21 rules and regulations as may be deemed necessary to carry
22 out the purposes of this subsection (g).
23 (6) The credit shall be available for eligible
24 employees hired on or after January 1, 1986.
25 (h) Investment credit; High Impact Business.
26 (1) Subject to subsection (b) of Section 5.5 of the
27 Illinois Enterprise Zone Act, a taxpayer shall be allowed
28 a credit against the tax imposed by subsections (a) and
29 (b) of this Section for investment in qualified property
30 which is placed in service by a Department of Commerce
31 and Community Affairs designated High Impact Business.
32 The credit shall be .5% of the basis for such property.
33 The credit shall not be available until the minimum
34 investments in qualified property set forth in Section
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1 5.5 of the Illinois Enterprise Zone Act have been
2 satisfied and shall not be allowed to the extent that it
3 would reduce a taxpayer's liability for the tax imposed
4 by subsections (a) and (b) of this Section to below zero.
5 The credit applicable to such minimum investments shall
6 be taken in the taxable year in which such minimum
7 investments have been completed. The credit for
8 additional investments beyond the minimum investment by a
9 designated high impact business shall be available only
10 in the taxable year in which the property is placed in
11 service and shall not be allowed to the extent that it
12 would reduce a taxpayer's liability for the tax imposed
13 by subsections (a) and (b) of this Section to below zero.
14 For tax years ending on or after December 31, 1987, the
15 credit shall be allowed for the tax year in which the
16 property is placed in service, or, if the amount of the
17 credit exceeds the tax liability for that year, whether
18 it exceeds the original liability or the liability as
19 later amended, such excess may be carried forward and
20 applied to the tax liability of the 5 taxable years
21 following the excess credit year. The credit shall be
22 applied to the earliest year for which there is a
23 liability. If there is credit from more than one tax
24 year that is available to offset a liability, the credit
25 accruing first in time shall be applied first.
26 Changes made in this subdivision (h)(1) by Public
27 Act 88-670 restore changes made by Public Act 85-1182 and
28 reflect existing law.
29 (2) The term qualified property means property
30 which:
31 (A) is tangible, whether new or used,
32 including buildings and structural components of
33 buildings;
34 (B) is depreciable pursuant to Section 167 of
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1 the Internal Revenue Code, except that "3-year
2 property" as defined in Section 168(c)(2)(A) of that
3 Code is not eligible for the credit provided by this
4 subsection (h);
5 (C) is acquired by purchase as defined in
6 Section 179(d) of the Internal Revenue Code; and
7 (D) is not eligible for the Enterprise Zone
8 Investment Credit provided by subsection (f) of this
9 Section.
10 (3) The basis of qualified property shall be the
11 basis used to compute the depreciation deduction for
12 federal income tax purposes.
13 (4) If the basis of the property for federal income
14 tax depreciation purposes is increased after it has been
15 placed in service in a federally designated Foreign Trade
16 Zone or Sub-Zone located in Illinois by the taxpayer, the
17 amount of such increase shall be deemed property placed
18 in service on the date of such increase in basis.
19 (5) The term "placed in service" shall have the
20 same meaning as under Section 46 of the Internal Revenue
21 Code.
22 (6) If during any taxable year ending on or before
23 December 31, 1996, any property ceases to be qualified
24 property in the hands of the taxpayer within 48 months
25 after being placed in service, or the situs of any
26 qualified property is moved outside Illinois within 48
27 months after being placed in service, the tax imposed
28 under subsections (a) and (b) of this Section for such
29 taxable year shall be increased. Such increase shall be
30 determined by (i) recomputing the investment credit which
31 would have been allowed for the year in which credit for
32 such property was originally allowed by eliminating such
33 property from such computation, and (ii) subtracting such
34 recomputed credit from the amount of credit previously
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1 allowed. For the purposes of this paragraph (6), a
2 reduction of the basis of qualified property resulting
3 from a redetermination of the purchase price shall be
4 deemed a disposition of qualified property to the extent
5 of such reduction.
6 (7) Beginning with tax years ending after December
7 31, 1996, if a taxpayer qualifies for the credit under
8 this subsection (h) and thereby is granted a tax
9 abatement and the taxpayer relocates its entire facility
10 in violation of the explicit terms and length of the
11 contract under Section 18-183 of the Property Tax Code,
12 the tax imposed under subsections (a) and (b) of this
13 Section shall be increased for the taxable year in which
14 the taxpayer relocated its facility by an amount equal to
15 the amount of credit received by the taxpayer under this
16 subsection (h).
17 (i) A credit shall be allowed against the tax imposed by
18 subsections (a) and (b) of this Section for the tax imposed
19 by subsections (c) and (d) of this Section. This credit
20 shall be computed by multiplying the tax imposed by
21 subsections (c) and (d) of this Section by a fraction, the
22 numerator of which is base income allocable to Illinois and
23 the denominator of which is Illinois base income, and further
24 multiplying the product by the tax rate imposed by
25 subsections (a) and (b) of this Section.
26 Any credit earned on or after December 31, 1986 under
27 this subsection which is unused in the year the credit is
28 computed because it exceeds the tax liability imposed by
29 subsections (a) and (b) for that year (whether it exceeds the
30 original liability or the liability as later amended) may be
31 carried forward and applied to the tax liability imposed by
32 subsections (a) and (b) of the 5 taxable years following the
33 excess credit year. This credit shall be applied first to
34 the earliest year for which there is a liability. If there
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1 is a credit under this subsection from more than one tax year
2 that is available to offset a liability the earliest credit
3 arising under this subsection shall be applied first.
4 If, during any taxable year ending on or after December
5 31, 1986, the tax imposed by subsections (c) and (d) of this
6 Section for which a taxpayer has claimed a credit under this
7 subsection (i) is reduced, the amount of credit for such tax
8 shall also be reduced. Such reduction shall be determined by
9 recomputing the credit to take into account the reduced tax
10 imposed by subsection (c) and (d). If any portion of the
11 reduced amount of credit has been carried to a different
12 taxable year, an amended return shall be filed for such
13 taxable year to reduce the amount of credit claimed.
14 (j) Training expense credit. Beginning with tax years
15 ending on or after December 31, 1986, a taxpayer shall be
16 allowed a credit against the tax imposed by subsection (a)
17 and (b) under this Section for all amounts paid or accrued,
18 on behalf of all persons employed by the taxpayer in Illinois
19 or Illinois residents employed outside of Illinois by a
20 taxpayer, for educational or vocational training in
21 semi-technical or technical fields or semi-skilled or skilled
22 fields, which were deducted from gross income in the
23 computation of taxable income. The credit against the tax
24 imposed by subsections (a) and (b) shall be 1.6% of such
25 training expenses. For partners and for shareholders of
26 subchapter S corporations, there shall be allowed a credit
27 under this subsection (j) to be determined in accordance with
28 the determination of income and distributive share of income
29 under Sections 702 and 704 and subchapter S of the Internal
30 Revenue Code.
31 Any credit allowed under this subsection which is unused
32 in the year the credit is earned may be carried forward to
33 each of the 5 taxable years following the year for which the
34 credit is first computed until it is used. This credit shall
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1 be applied first to the earliest year for which there is a
2 liability. If there is a credit under this subsection from
3 more than one tax year that is available to offset a
4 liability the earliest credit arising under this subsection
5 shall be applied first.
6 (k) Research and development credit.
7 Beginning with tax years ending after July 1, 1990, a
8 taxpayer shall be allowed a credit against the tax imposed by
9 subsections (a) and (b) of this Section for increasing
10 research activities in this State. The credit allowed
11 against the tax imposed by subsections (a) and (b) shall be
12 equal to 6 1/2% of the qualifying expenditures for increasing
13 research activities in this State.
14 For purposes of this subsection, "qualifying
15 expenditures" means the qualifying expenditures as defined
16 for the federal credit for increasing research activities
17 which would be allowable under Section 41 of the Internal
18 Revenue Code and which are conducted in this State,
19 "qualifying expenditures for increasing research activities
20 in this State" means the excess of qualifying expenditures
21 for the taxable year in which incurred over qualifying
22 expenditures for the base period, "qualifying expenditures
23 for the base period" means the average of the qualifying
24 expenditures for each year in the base period, and "base
25 period" means the 3 taxable years immediately preceding the
26 taxable year for which the determination is being made.
27 Any credit in excess of the tax liability for the taxable
28 year may be carried forward. A taxpayer may elect to have the
29 unused credit shown on its final completed return carried
30 over as a credit against the tax liability for the following
31 5 taxable years or until it has been fully used, whichever
32 occurs first.
33 If an unused credit is carried forward to a given year
34 from 2 or more earlier years, that credit arising in the
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1 earliest year will be applied first against the tax liability
2 for the given year. If a tax liability for the given year
3 still remains, the credit from the next earliest year will
4 then be applied, and so on, until all credits have been used
5 or no tax liability for the given year remains. Any
6 remaining unused credit or credits then will be carried
7 forward to the next following year in which a tax liability
8 is incurred, except that no credit can be carried forward to
9 a year which is more than 5 years after the year in which the
10 expense for which the credit is given was incurred.
11 Unless extended by law, the credit shall not include
12 costs incurred after December 31, 1999, except for costs
13 incurred pursuant to a binding contract entered into on or
14 before December 31, 1999.
15 (Source: P.A. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
16 88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
17 7-18-96; 89-591, eff. 8-1-96.)
18 (35 ILCS 5/202.5 new)
19 Sec. 202.5. Net income attributable to the period prior
20 to July 1, 1997, and net income attributable to the period
21 after June 30, 1997.
22 (a) In general. With respect to the taxable year of a
23 taxpayer beginning prior to July 1, 1997, and ending after
24 June 30, 1997, net income for the period after June 30, 1997,
25 shall be that amount which bears the same ratio to the
26 taxpayer's net income for the entire taxable year as the
27 number of days in such year after June 30, 1997, bears to the
28 total number of days in such year, and the net income for the
29 period prior to July 1, 1997, shall be that amount which
30 bears the same ratio to the taxpayer's net income for the
31 entire taxable year as the number of days in such year prior
32 to July 1, 1997, bears to the total number of days in such
33 year.
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1 (b) Election to attribute income and deduction items
2 specifically to the respective portions of a taxable year
3 prior to July 1, 1997, and after June 30, 1997. In the case
4 of a taxpayer with a taxable year beginning prior to July 1,
5 1997, and ending after June 30, 1997, the taxpayer may elect,
6 in lieu of the procedure established in subsection (a) of
7 this Section, to determine net income on a specific
8 accounting basis for the 2 portions of his taxable year:
9 (i) from the beginning of the taxable year through
10 June 30, 1997, and
11 (ii) from July 1, 1997, through the end of the
12 taxable year.
13 If the taxpayer elects specific accounting under this
14 subsection, there shall be taken into account in computing
15 base income for each of the 2 portions of the taxable year
16 only those items earned, received, paid, incurred or accrued
17 in each such period. The standard exemption provided by
18 Section 204 shall be divided between the respective periods
19 in amounts which bear the same ratio to the total exemption
20 allowable under Section 204 (determined without regard to
21 this Section) as the total number of days in each such period
22 bears to the total number of days in the taxable year. The
23 election provided by this subsection shall be made in such
24 manner and at such time as the Department may by forms or
25 regulations prescribe, but shall be made not later than the
26 due date (including any extensions thereof) for the filing of
27 the return for the taxable year, and shall be irrevocable.
28 (35 ILCS 5/208.5 new)
29 Sec. 208.5. Tax credit for real property taxes on
30 commercial and industrial real property. Beginning with tax
31 years ending on or after July 1, 1997, every taxpayer shall
32 be entitled to a tax credit equal to 2.5% of the real
33 property taxes paid by the taxpayer during the taxable year
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1 on the commercial and industrial real property of the
2 taxpayer. The Department shall by rule define the
3 classification of commercial and industrial real property for
4 purposes of this Section, but such property shall not include
5 property classified by the Department as farmland or
6 residential real property under Section 18-181 of the
7 Property Tax Code.
8 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
9 Sec. 901. Collection Authority.
10 (a) In general.
11 The Department shall collect the taxes imposed by this
12 Act. The Department shall collect certified past due child
13 support amounts under Section 39b52 of the Civil
14 Administrative Code of Illinois. Except as provided in
15 subsections (c) and (e) of this Section, money collected
16 pursuant to subsections (a) and (b) of Section 201 of this
17 Act shall be paid into the General Revenue Fund in the State
18 treasury; money collected pursuant to subsections (c) and (d)
19 of Section 201 of this Act shall be paid into the Personal
20 Property Tax Replacement Fund, a special fund in the State
21 Treasury; and money collected under Section 39b52 of the
22 Civil Administrative Code of Illinois shall be paid into the
23 Child Support Enforcement Trust Fund, a special fund outside
24 the State Treasury.
25 (b) Local Governmental Distributive Fund.
26 Beginning August 1, 1969, and continuing through June 30,
27 1994, the Treasurer shall transfer each month from the
28 General Revenue Fund to a special fund in the State treasury,
29 to be known as the "Local Government Distributive Fund", an
30 amount equal to 1/12 of the net revenue realized from the tax
31 imposed by subsections (a) and (b) of Section 201 of this Act
32 during the preceding month. Beginning July 1, 1994, and
33 continuing through June 30, 1995, the Treasurer shall
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1 transfer each month from the General Revenue Fund to the
2 Local Government Distributive Fund an amount equal to 1/11 of
3 the net revenue realized from the tax imposed by subsections
4 (a) and (b) of Section 201 of this Act during the preceding
5 month. Beginning July 1, 1995, the Treasurer shall transfer
6 each month from the General Revenue Fund to the Local
7 Government Distributive Fund an amount equal to 1/10 of the
8 net revenue realized from the tax imposed by subsections (a)
9 and (b) of Section 201 of the Illinois Income Tax Act during
10 the preceding month. Net revenue realized for a month shall
11 be defined as the revenue from the tax imposed by subsections
12 (a) and (b) of Section 201 of this Act which is deposited in
13 the General Revenue Fund, the Educational Assistance Fund and
14 the Income Tax Surcharge Local Government Distributive Fund
15 during the month (but not including revenue attributable to
16 the increase in tax rates imposed by this amendatory Act of
17 1997) minus the amount paid out of the General Revenue Fund
18 in State warrants during that same month as refunds to
19 taxpayers for overpayment of liability under the tax imposed
20 by subsections (a) and (b) of Section 201 of this Act.
21 (c) Deposits Into Income Tax Refund Fund.
22 (1) Beginning on January 1, 1989 and thereafter,
23 the Department shall deposit a percentage of the amounts
24 collected pursuant to subsections (a) and (b)(1), (2),
25 and (3), (4), and (5) of Section 201 of this Act into a
26 fund in the State treasury known as the Income Tax Refund
27 Fund. The Department shall deposit 6% of such amounts
28 during the period beginning January 1, 1989 and ending on
29 June 30, 1989. Beginning with State fiscal year 1990 and
30 for each fiscal year thereafter, the percentage deposited
31 into the Income Tax Refund Fund during a fiscal year
32 shall be the Annual Percentage. The Annual Percentage
33 shall be calculated as a fraction, the numerator of which
34 shall be the amount of refunds approved for payment by
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1 the Department during the preceding fiscal year as a
2 result of overpayment of tax liability under subsections
3 (a) and (b)(1), (2), and (3), (4), and (5) of Section 201
4 of this Act plus the amount of such refunds remaining
5 approved but unpaid at the end of the preceding fiscal
6 year minus any surplus which remains on deposit in the
7 Income Tax Refund Fund at the end of the preceding year,
8 the denominator of which shall be the amounts which will
9 be collected pursuant to subsections (a) and (b)(1), (2),
10 and (3), (4), and (5) of Section 201 of this Act during
11 the preceding fiscal year. The Director of Revenue shall
12 certify the Annual Percentage to the Comptroller on the
13 last business day of the fiscal year immediately
14 preceding the fiscal year for which is it to be
15 effective.
16 (2) Beginning on January 1, 1989 and thereafter,
17 the Department shall deposit a percentage of the amounts
18 collected pursuant to subsections (a) and (b)(6), (7),
19 and (8), (9), and 10, (c) and (d) of Section 201 of this
20 Act into a fund in the State treasury known as the Income
21 Tax Refund Fund. The Department shall deposit 18% of
22 such amounts during the period beginning January 1, 1989
23 and ending on June 30, 1989. Beginning with State fiscal
24 year 1990 and for each fiscal year thereafter, the
25 percentage deposited into the Income Tax Refund Fund
26 during a fiscal year shall be the Annual Percentage. The
27 Annual Percentage shall be calculated as a fraction, the
28 numerator of which shall be the amount of refunds
29 approved for payment by the Department during the
30 preceding fiscal year as a result of overpayment of tax
31 liability under subsections (a) and (b)(6), (7), and (8),
32 (9), and 10, (c) and (d) of Section 201 of this Act plus
33 the amount of such refunds remaining approved but unpaid
34 at the end of the preceding fiscal year, the denominator
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1 of which shall be the amounts which will be collected
2 pursuant to subsections (a) and (b)(6), (7), and (8),
3 (9), and (10), (c) and (d) of Section 201 of this Act
4 during the preceding fiscal year. The Director of
5 Revenue shall certify the Annual Percentage to the
6 Comptroller on the last business day of the fiscal year
7 immediately preceding the fiscal year for which it is to
8 be effective.
9 (d) Expenditures from Income Tax Refund Fund.
10 (1) Beginning January 1, 1989, money in the Income
11 Tax Refund Fund shall be expended exclusively for the
12 purpose of paying refunds resulting from overpayment of
13 tax liability under Section 201 of this Act and for
14 making transfers pursuant to this subsection (d).
15 (2) The Director shall order payment of refunds
16 resulting from overpayment of tax liability under Section
17 201 of this Act from the Income Tax Refund Fund only to
18 the extent that amounts collected pursuant to Section 201
19 of this Act and transfers pursuant to this subsection (d)
20 have been deposited and retained in the Fund.
21 (3) On the last business day of each fiscal year,
22 the Director shall order transferred and the State
23 Treasurer and State Comptroller shall transfer from the
24 Income Tax Refund Fund to the Personal Property Tax
25 Replacement Fund an amount, certified by the Director to
26 the Comptroller, equal to the excess of the amount
27 collected pursuant to subsections (c) and (d) of Section
28 201 of this Act deposited into the Income Tax Refund Fund
29 during the fiscal year over the amount of refunds
30 resulting from overpayment of tax liability under
31 subsections (c) and (d) of Section 201 of this Act paid
32 from the Income Tax Refund Fund during the fiscal year.
33 (4) On the last business day of each fiscal year,
34 the Director shall order transferred and the State
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1 Treasurer and State Comptroller shall transfer from the
2 Personal Property Tax Replacement Fund to the Income Tax
3 Refund Fund an amount, certified by the Director to the
4 Comptroller, equal to the excess of the amount of refunds
5 resulting from overpayment of tax liability under
6 subsections (c) and (d) of Section 201 of this Act paid
7 from the Income Tax Refund Fund during the fiscal year
8 over the amount collected pursuant to subsections (c) and
9 (d) of Section 201 of this Act deposited into the Income
10 Tax Refund Fund during the fiscal year.
11 (5) This Act shall constitute an irrevocable and
12 continuing appropriation from the Income Tax Refund Fund
13 for the purpose of paying refunds upon the order of the
14 Director in accordance with the provisions of this
15 Section.
16 (e) Deposits into the Education Assistance Fund, and the
17 Income Tax Surcharge Local Government Distributive Fund, and
18 the Education Funding Reform Fund.
19 On July 1, 1991, and thereafter, of the amounts collected
20 pursuant to subsections (a) and (b) of Section 201 of this
21 Act (except for amounts collected that are attributable to
22 the increase in the tax rates imposed by this amendatory Act
23 of 1997), minus deposits into the Income Tax Refund Fund, the
24 Department shall deposit 7.3% into the Education Assistance
25 Fund in the State Treasury. Beginning July 1, 1991, and
26 continuing through January 31, 1993, of the amounts collected
27 pursuant to subsections (a) and (b) of Section 201 of the
28 Illinois Income Tax Act, minus deposits into the Income Tax
29 Refund Fund, the Department shall deposit 3.0% into the
30 Income Tax Surcharge Local Government Distributive Fund in
31 the State Treasury. Beginning February 1, 1993 and
32 continuing through June 30, 1993, of the amounts collected
33 pursuant to subsections (a) and (b) of Section 201 of the
34 Illinois Income Tax Act, minus deposits into the Income Tax
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1 Refund Fund, the Department shall deposit 4.4% into the
2 Income Tax Surcharge Local Government Distributive Fund in
3 the State Treasury. Beginning July 1, 1993, and continuing
4 through June 30, 1994, of the amounts collected under
5 subsections (a) and (b) of Section 201 of this Act, minus
6 deposits into the Income Tax Refund Fund, the Department
7 shall deposit 1.475% into the Income Tax Surcharge Local
8 Government Distributive Fund in the State Treasury. Beginning
9 on July 1, 1997 and thereafter, the Department shall deposit
10 into the Education Funding Reform Fund in the State Treasury
11 all amounts collected under subsections (a) and (b) of
12 Section 201 that are attributable to the increase in tax
13 rates imposed by this amendatory Act of 1997, minus the
14 decrease in the amounts collected under subsections (a) and
15 (b) of Section 201 that is attributable to the tax credit to
16 which taxpayers are entitled under Section 208.5 and minus
17 deposits into the Income Tax Refund Fund that are
18 attributable to the difference between (i) the amounts
19 collected under subsections (a) and (b) of Section 201 that
20 are attributable to the increase in tax rates imposed by this
21 amendatory Act of 1997 and (ii) the decrease in the amounts
22 collected under those subsections that is attributable to the
23 tax credit allowed under Section 208.5.
24 (Source: P.A. 88-89; 89-6, eff. 12-31-95.)
25 Section 85. The Property Tax Code is amended by adding
26 Section 18-181 as follows:
27 (35 ILCS 200/18-181 new)
28 Sec. 18-181. Abatement of school district educational
29 purposes tax levy on farmland and residential real property.
30 In extending, during calendar year 1999 and each calendar
31 year thereafter, the educational purposes tax levy for the
32 immediately preceding calendar year of each school district
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1 in the county, the county clerk shall abate the tax levied by
2 each such district for educational purposes during that
3 immediately preceding calendar year on farmland and
4 residential real property located in the district by an
5 amount equal to the amount received by the district in that
6 immediately preceding calendar year from the Education
7 Funding Reform Fund. The educational purposes tax shall be
8 abated on all taxable farmland and residential real property
9 located in the school district on a prorata basis. If a
10 school district is located in more than one county, the
11 amount of the district's educational purposes tax levy that
12 is to be abated shall be apportioned by the county clerks of
13 those counties based upon the ratio of the aggregate assessed
14 value of the taxable farmland and residential real property
15 of the school district within each such county. During
16 January, 1999 and during January of each calendar year
17 thereafter, the State Board of Education and each school
18 district shall certify to the county clerk of the county or
19 counties in which the school district is located the amount
20 received by the school district during the immediately
21 preceding calendar year from the Education Funding Reform
22 Fund.
23 The Department of Revenue shall by rule define the
24 classifications of farmland and residential real property for
25 purposes of this Section, but neither of those
26 classifications shall include property classified by the
27 Department as commercial and industrial real property under
28 Section 208.5 of the Illinois Income Tax Act.
29 Section 90. The School Code is amended by adding
30 Sections 17-11.5, 18-1.1, and 34-54.5 and changing Section
31 18-8 as follows:
32 (105 ILCS 5/17-11.5 new)
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1 Sec. 17-11.5. Referendum to reduce increase in tax rate.
2 Notwithstanding any other provision of this Code, if the
3 maximum rate at which a school district is authorized to levy
4 a tax for any school purpose (other than to pay principal and
5 interest on bonds or other long-term debt obligations of the
6 district) increases under a law enacted before the effective
7 date of this amendatory Act of 1997 or is increased by a law
8 enacted after that effective date or pursuant to a referendum
9 of the voters of the district held after that effective date,
10 any taxpayer of the district may at any time thereafter
11 following the levy of such a tax at such an increased rate
12 file which the secretary of the school board a petition
13 signed by the lesser of 2,500 or 5% of the registered voters
14 of the district requesting the submission to a referendum of
15 a proposition to reduce the rate of the tax to the maximum
16 rate that is in effect on the effective date of this
17 amendatory Act. The secretary of the school board shall
18 certify the proposition to the proper election authorities
19 for submission to the electorate at a regular scheduled
20 election in accordance with the general election law. If a
21 majority of the voters voting on the proposition vote in
22 favor thereof, the increased rate at which that tax
23 thereafter may be levied shall be reduced to the maximum rate
24 specified in the proposition.
25 (105 ILCS 5/18-1.1 new)
26 Sec. 18-1.1. Education Funding Reform Fund.
27 (a) There is hereby created the Education Funding Reform
28 Fund, a special fund in the State Treasury, the moneys in
29 which shall be used exclusively for distribution to school
30 districts to be applied by such districts to any funds,
31 including funds established for educational purposes, from
32 which the school boards of the several districts are
33 authorized to make expenditures by law. All moneys
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1 transferred to the Education Funding Reform Fund as provided
2 by Section 901 of the Illinois Income Tax Act shall be
3 promptly invested by the State Treasurer in accordance with
4 law, and all interest, dividends and other earnings accruing
5 or received thereon shall be credited and paid to such Fund.
6 No moneys, interest, dividends or other earnings transferred,
7 credited, deposited or otherwise paid to the Education
8 Funding Reform Fund shall be transferred or allocated by the
9 Comptroller or Treasurer to any other fund, nor shall the
10 Governor authorize any such transfer or allocation, nor shall
11 any moneys, interest or earnings transferred, credited,
12 deposited or otherwise paid to such Fund be used, temporarily
13 or otherwise, for interfund borrowing, or be otherwise used
14 or appropriated, except for distribution to school districts
15 in the manner and for the purposes set forth in this Section.
16 (b) On or before September 15, 1998, and on or before
17 September 15 of each year thereafter, from an appropriation
18 made to the State Board of Education from the Education
19 Funding Reform Fund for distribution to school districts
20 during the fiscal year that begins in the calendar year in
21 which the distributions are to be made, the State Board of
22 Education shall certify to the Comptroller for disbursement
23 to each school district in the State that portion of the
24 amount appropriated from the Education Funding Reform Fund
25 for that fiscal year that equals the ratio calculated by
26 dividing the aggregate assessed value of farmland and
27 residential real property (as classified by the Department of
28 Revenue under Section 18-181 of the Property Tax Code)
29 located in the district by the aggregate assessed value of
30 all farmland and residential real property (as so classified)
31 located in the State.
32 (c) For purposes of enabling the State Board of
33 Education to certify disbursements for school districts as
34 provided in subsection (b), the Department of Revenue shall
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1 certify to the State Board of Education on or before August
2 15, 1998, and on or before August 15 of each year thereafter,
3 the aggregate assessed value of farmland and residential real
4 property located in the State, and the ratio required under
5 subsection (b) for each school district in the State.
6 (d) Following receipt of the disbursement certifications
7 for amounts payable to school districts as provided in
8 subsection (b), the Comptroller shall cause warrants to be
9 drawn for the respective amounts to be paid to each school
10 district from the Education Funding Reform Fund, and shall
11 deliver the warrants to the State Board of Education. The
12 State Board of Education shall transmit warrants to the
13 school treasurer of each school district not later than
14 September 30 annually, beginning in calendar year 1998.
15 (e) During January of 1999 and during January of each
16 calendar year thereafter the State Board of Education and
17 each school district shall certify to the county clerk of the
18 county or counties in which the school district is located
19 the amount disbursed to the district under this Section
20 during the preceding calendar year.
21 (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
22 Sec. 18-8. Basis for apportionment to districts,
23 laboratory schools and alternative schools.
24 A. The amounts to be apportioned shall be determined for
25 each educational service region by school districts, as
26 follows:
27 1. General Provisions.
28 (a) In the computation of the amounts to be apportioned,
29 the average daily attendance of all pupils in grades 9
30 through 12 shall be multiplied by 1.25. The average daily
31 attendance of all pupils in grades 7 and 8 shall be
32 multiplied by 1.05.
33 (b) The actual number of pupils in average daily
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1 attendance shall be computed in a one-teacher school district
2 by dividing the total aggregate days of pupil attendance by
3 the actual number of days school is in session but not more
4 than 30 such pupils shall be accredited for such type of
5 district; and in districts of 2 or more teachers, or in
6 districts where records of attendance are kept by session
7 teachers, by taking the sum of the respective averages of the
8 units composing the group.
9 (c) Pupils in average daily attendance shall be computed
10 upon the average of the best 3 months of pupils attendance of
11 the current school year except as district claims may be
12 later amended as provided hereinafter in this Section.
13 However, for any school district maintaining grades
14 kindergarten through 12, the "average daily attendance" shall
15 be computed on the average of the best 3 months of pupils
16 attendance of the current year in grades kindergarten through
17 8, added together with the average of the best 3 months of
18 pupils attendance of the current year in grades 9 through 12,
19 except as district claims may be later amended as provided in
20 this Section. Days of attendance shall be kept by regular
21 calendar months, except any days of attendance in August
22 shall be added to the month of September and any days of
23 attendance in June shall be added to the month of May.
24 Except as otherwise provided in this Section, days of
25 attendance by pupils shall be counted only for sessions of
26 not less than 5 clock hours of school work per day under
27 direct supervision of: (i) teachers, or (ii) non-teaching
28 personnel or volunteer personnel when engaging in
29 non-teaching duties and supervising in those instances
30 specified in subsection (a) of Section 10-22.34 and paragraph
31 10 of Section 34-18, with pupils of legal school age and in
32 kindergarten and grades 1 through 12.
33 (d) Pupils regularly enrolled in a public school for
34 only a part of the school day may be counted on the basis of
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1 1/6 day for every class hour of instruction of 40 minutes or
2 more attended pursuant to such enrollment.
3 (e) Days of attendance may be less than 5 clock hours on
4 the opening and closing of the school term, and upon the
5 first day of pupil attendance, if preceded by a day or days
6 utilized as an institute or teachers' workshop.
7 (f) A session of 4 or more clock hours may be counted as
8 a day of attendance upon certification by the regional
9 superintendent, and approved by the State Superintendent of
10 Education to the extent that the district has been forced to
11 use daily multiple sessions.
12 (g) A session of 3 or more clock hours may be counted as
13 a day of attendance (1) when the remainder of the school day
14 or at least 2 hours in the evening of that day is utilized
15 for an in-service training program for teachers, up to a
16 maximum of 5 days per school year of which a maximum of 4
17 days of such 5 days may be used for parent-teacher
18 conferences, provided a district conducts an in-service
19 training program for teachers which has been approved by the
20 State Superintendent of Education; or, in lieu of 4 such
21 days, 2 full days may be used, in which event each such day
22 may be counted as a day of attendance; and (2) when days in
23 addition to those provided in item (1) are scheduled by a
24 school pursuant to its school improvement plan adopted under
25 Article 34 or its revised or amended school improvement plan
26 adopted under Article 2, provided that (i) such sessions of 3
27 or more clock hours are scheduled to occur at regular
28 intervals, (ii) the remainder of the school days in which
29 such sessions occur are utilized for in-service training
30 programs or other staff development activities for teachers,
31 and (iii) a sufficient number of minutes of school work under
32 the direct supervision of teachers are added to the school
33 days between such regularly scheduled sessions to accumulate
34 not less than the number of minutes by which such sessions of
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1 3 or more clock hours fall short of 5 clock hours. Any full
2 days used for the purposes of this paragraph shall not be
3 considered for computing average daily attendance. Days
4 scheduled for in-service training programs, staff development
5 activities, or parent-teacher conferences may be scheduled
6 separately for different grade levels and different
7 attendance centers of the district.
8 (h) A session of not less than one clock hour teaching
9 of hospitalized or homebound pupils on-site or by telephone
10 to the classroom may be counted as 1/2 day of attendance,
11 however these pupils must receive 4 or more clock hours of
12 instruction to be counted for a full day of attendance.
13 (i) A session of at least 4 clock hours may be counted
14 as a day of attendance for first grade pupils, and pupils in
15 full day kindergartens, and a session of 2 or more hours may
16 be counted as 1/2 day of attendance by pupils in
17 kindergartens which provide only 1/2 day of attendance.
18 (j) For children with disabilities who are below the age
19 of 6 years and who cannot attend two or more clock hours
20 because of their disability or immaturity, a session of not
21 less than one clock hour may be counted as 1/2 day of
22 attendance; however for such children whose educational needs
23 so require a session of 4 or more clock hours may be counted
24 as a full day of attendance.
25 (k) A recognized kindergarten which provides for only
26 1/2 day of attendance by each pupil shall not have more than
27 1/2 day of attendance counted in any 1 day. However,
28 kindergartens may count 2 1/2 days of attendance in any 5
29 consecutive school days. Where a pupil attends such a
30 kindergarten for 2 half days on any one school day, such
31 pupil shall have the following day as a day absent from
32 school, unless the school district obtains permission in
33 writing from the State Superintendent of Education.
34 Attendance at kindergartens which provide for a full day of
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1 attendance by each pupil shall be counted the same as
2 attendance by first grade pupils. Only the first year of
3 attendance in one kindergarten shall be counted except in
4 case of children who entered the kindergarten in their fifth
5 year whose educational development requires a second year of
6 kindergarten as determined under the rules and regulations of
7 the State Board of Education.
8 (l) Days of attendance by tuition pupils shall be
9 accredited only to the districts that pay the tuition to a
10 recognized school.
11 (m) The greater of the immediately preceding year's
12 weighted average daily attendance or the average of the
13 weighted average daily attendance of the immediately
14 preceding year and the previous 2 years shall be used.
15 For any school year beginning July 1, 1986 or thereafter,
16 if the weighted average daily attendance in either grades
17 kindergarten through 8 or grades 9 through 12 of a district
18 as computed for the first calendar month of the current
19 school year exceeds by more than 5%, but not less than 25
20 pupils, the district's weighted average daily attendance for
21 the first calendar month of the immediately preceding year
22 in, respectively, grades kindergarten through 8 or grades 9
23 through 12, a supplementary payment shall be made to the
24 district equal to the difference in the amount of aid the
25 district would be paid under this Section using the weighted
26 average daily attendance in the district as computed for the
27 first calendar month of the current school year and the
28 amount of aid the district would be paid using the weighted
29 average daily attendance in the district for the first
30 calendar month of the immediately preceding year. Such
31 supplementary State aid payment shall be paid to the district
32 as provided in Section 18-8.4 and shall be treated as
33 separate from all other payments made pursuant to this
34 Section 18-8.
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1 (n) The number of low income eligible pupils in a
2 district shall result in an increase in the weighted average
3 daily attendance calculated as follows: The number of low
4 income pupils shall increase the weighted ADA by .53 for each
5 student adjusted by dividing the percent of low income
6 eligible pupils in the district by the ratio of eligible low
7 income pupils in the State to the best 3 months' weighted
8 average daily attendance in the State. In no case may the
9 adjustment under this paragraph result in a greater weighting
10 than .625 for each eligible low income student. The number
11 of low income eligible pupils in a district shall be the
12 low-income eligible count from the most recently available
13 federal census and the weighted average daily attendance
14 shall be calculated in accordance with the other provisions
15 of this paragraph.
16 (o) Any school district which fails for any given school
17 year to maintain school as required by law, or to maintain a
18 recognized school is not eligible to file for such school
19 year any claim upon the common school fund. In case of
20 nonrecognition of one or more attendance centers in a school
21 district otherwise operating recognized schools, the claim of
22 the district shall be reduced in the proportion which the
23 average daily attendance in the attendance center or centers
24 bear to the average daily attendance in the school district.
25 A "recognized school" means any public school which meets the
26 standards as established for recognition by the State Board
27 of Education. A school district or attendance center not
28 having recognition status at the end of a school term is
29 entitled to receive State aid payments due upon a legal claim
30 which was filed while it was recognized.
31 (p) School district claims filed under this Section are
32 subject to Sections 18-9, 18-10 and 18-12, except as herein
33 otherwise provided.
34 (q) The State Board of Education shall secure from the
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1 Department of Revenue the value as equalized or assessed by
2 the Department of Revenue of all taxable property of every
3 school district together with the applicable tax rate used in
4 extending taxes for the funds of the district as of September
5 30 of the previous year. The Department of Revenue shall add
6 to the equalized assessed value of all taxable property of
7 each school district situated entirely or partially within a
8 county with 2,000,000 or more inhabitants an amount equal to
9 the total amount by which the homestead exemptions allowed
10 under Sections 15-170 and 15-175 of the Property Tax Code for
11 real property situated in that school district exceeds the
12 total amount that would have been allowed in that school
13 district as homestead exemptions under those Sections if the
14 maximum reduction under Section 15-170 of the Property Tax
15 Code was $2,000 and the maximum reduction under Section
16 15-175 of the Property Tax Code was $3,500. The county clerk
17 of any county with 2,000,000 or more inhabitants shall
18 annually calculate and certify to the Department for each
19 school district all homestead exemption amounts required by
20 this amendatory Act of 1992. In a new district which has not
21 had any tax rates yet determined for extension of taxes, a
22 leveled uniform rate shall be computed from the latest amount
23 of the fund taxes extended on the several areas within such
24 new district.
25 (r) If a school district operates a full year school
26 under Section 10-19.1, the general state aid to the school
27 district shall be determined by the State Board of Education
28 in accordance with this Section as near as may be applicable.
29 2. New or recomputed claim. The general State aid
30 entitlement for a newly created school district or a district
31 which has annexed an entire school district shall be computed
32 using attendance, compensatory pupil counts, equalized
33 assessed valuation, and tax rate data which would have been
34 used had the district been in existence for 3 years. General
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1 State aid entitlements shall not be recomputed except as
2 permitted herein.
3 3. Impaction. Impaction payments shall be made as
4 provided for in Section 18-4.2.
5 4. Summer school. Summer school payments shall be made
6 as provided in Section 18-4.3.
7 5. Computation of State aid. The State grant shall be
8 determined as follows:
9 (a) The State shall guarantee the amount of money that a
10 district's operating tax rate as limited in other Sections of
11 this Act would produce if every district maintaining grades
12 kindergarten through 12 had an equalized assessed valuation
13 equal to $74,791 per weighted ADA pupil; every district
14 maintaining grades kindergarten through 8 had an equalized
15 assessed valuation of $108,644 per weighted ADA pupil; and
16 every district maintaining grades 9 through 12 had an
17 equalized assessed valuation of $187,657 per weighted ADA
18 pupil. The State Board of Education shall adjust the
19 equalized assessed valuation amounts stated in this
20 paragraph, if necessary, to conform to the amount of the
21 appropriation approved for any fiscal year.
22 (b) The operating tax rate to be used shall consist of
23 all district taxes extended for all purposes except community
24 college educational purposes for the payment of tuition under
25 Section 6-1 of the Public Community College Act, Bond and
26 Interest, Summer School, Rent, Capital Improvement and
27 Vocational Education Building. In calculating the operating
28 tax rate of any district for purposes of this Section, the
29 rate per cent applicable to the extension of district taxes
30 levied for educational purposes shall be used, without any
31 adjustment or reduction in that rate per cent being made by
32 reason of any abatement under Section 18-181 of the Property
33 Tax Code in the extension of the amount of the tax levied by
34 the district for educational purposes. Any district may
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1 elect to exclude Transportation from the calculation of its
2 operating tax rate. Districts may include taxes extended for
3 the payment of principal and interest on bonds issued under
4 the provisions of Sections 17-2.11a and 20-2 at a rate of
5 .05% per year for each purpose or the actual rate extended,
6 whichever is less.
7 (c) For calculation of aid under this Act a district
8 shall use the combined authorized tax rates of all funds not
9 exempt in (b) above, not to exceed 2.76% of the value of all
10 its taxable property as equalized or assessed by the
11 Department of Revenue for districts maintaining grades
12 kindergarten through 12; 1.90% of the value of all its
13 taxable property as equalized or assessed by the Department
14 of Revenue for districts maintaining grades kindergarten
15 through 8 only; 1.10% of the value of all its taxable
16 property as equalized or assessed by the Department of
17 Revenue for districts maintaining grades 9 through 12 only.
18 A district may, however, as provided in Article 17, increase
19 its operating tax rate above the maximum rate provided in
20 this subsection without affecting the amount of State aid to
21 which it is entitled under this Act.
22 (d) (1) For districts maintaining grades kindergarten
23 through 12 with an operating tax rate as described in
24 subsections 5(b) and (c) of less than 2.18%, and districts
25 maintaining grades kindergarten through 8 with an operating
26 tax rate of less than 1.28%, State aid shall be computed by
27 multiplying the difference between the guaranteed equalized
28 assessed valuation per weighted ADA pupil in subsection 5(a)
29 and the equalized assessed valuation per weighted ADA pupil
30 in the district by the operating tax rate, multiplied by the
31 weighted average daily attendance of the district; provided,
32 however, that for the 1989-1990 school year only, a school
33 district maintaining grades kindergarten through 8 whose
34 operating tax rate with reference to which its general State
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1 aid for the 1989-1990 school year is determined is less than
2 1.28% and more than 1.090%, and which had an operating tax
3 rate of 1.28% or more for the previous year, shall have its
4 general State aid computed according to the provisions of
5 subsection 5(d)(2).
6 (2) For districts maintaining grades kindergarten
7 through 12 with an operating tax rate as described in
8 subsection 5(b) and (c) of 2.18% and above, the State aid
9 shall be computed as provided in subsection (d) (1) but as
10 though the district had an operating tax rate of 2.76%; in
11 K-8 districts with an operating tax rate of 1.28% and above,
12 the State aid shall be computed as provided in subsection (d)
13 (1) but as though the district had an operating tax rate of
14 1.90%; and in 9-12 districts, the State aid shall be computed
15 by multiplying the difference between the guaranteed
16 equalized assessed valuation per weighted average daily
17 attendance pupil in subsection 5(a) and the equalized
18 assessed valuation per weighted average daily attendance
19 pupil in the district by the operating tax rate, not to
20 exceed 1.10%, multiplied by the weighted average daily
21 attendance of the district. State aid computed under the
22 provisions of this subsection (d) (2) shall be treated as
23 separate from all other payments made pursuant to this
24 Section. The State Comptroller and State Treasurer shall
25 transfer from the General Revenue Fund to the Common School
26 Fund the amounts necessary to permit these claims to be paid
27 in equal installments along with other State aid payments
28 remaining to be made for the 1983-1984 school year under this
29 Section.
30 (3) For any school district whose 1995 equalized
31 assessed valuation is at least 6% less than its 1994
32 equalized assessed valuation as the result of a reduction in
33 the equalized assessed valuation of the taxable property
34 within such district of any one taxpayer whose taxable
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1 property within the district has a 1994 equalized assessed
2 valuation constituting at least 20% of the 1994 equalized
3 assessed valuation of all taxable property within the
4 district, the 1996-97 State aid of such district shall be
5 computed using its 1995 equalized assessed valuation.
6 (4) For any school district whose 1988 equalized
7 assessed valuation is 55% or less of its 1981 equalized
8 assessed valuation, the 1990-91 State aid of such district
9 shall be computed by multiplying the 1988 equalized assessed
10 valuation by a factor of .8. Any such school district which
11 is reorganized effective for the 1991-92 school year shall
12 use the formula provided in this subparagraph for purposes of
13 the calculation made pursuant to subsection (m) of this
14 Section.
15 (e) The amount of State aid shall be computed under the
16 provisions of subsections 5(a) through 5(d) provided the
17 equalized assessed valuation per weighted ADA pupil is less
18 than .87 of the amounts in subsection 5(a). If the equalized
19 assessed valuation per weighted ADA pupil is equal to or
20 greater than .87 of the amounts in subsection 5(a), the State
21 aid shall be computed under the provisions of subsection
22 5(f).
23 (f) If the equalized assessed valuation per weighted ADA
24 pupil is equal to or greater than .87 of the amounts in
25 subsection 5(a), the State aid per weighted ADA pupil shall
26 be computed by multiplying the product of .13 times the
27 maximum per pupil amount computed under the provisions of
28 subsections 5(a) through 5(d) by an amount equal to the
29 quotient of .87 times the equalized assessed valuation per
30 weighted ADA pupil in subsection 5(a) for that type of
31 district divided by the district equalized valuation per
32 weighted ADA pupil except in no case shall the district
33 receive State aid per weighted ADA pupil of less than .07
34 times the maximum per pupil amount computed under the
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1 provisions of subsections 5(a) through 5(d).
2 (g) In addition to the above grants, summer school
3 grants shall be made based upon the calculation as provided
4 in subsection 4 of this Section.
5 (h) The board of any district receiving any of the
6 grants provided for in this Section may apply those funds to
7 any fund so received for which that board is authorized to
8 make expenditures by law.
9 (i) (1) (a) In school districts with an average daily
10 attendance of 50,000 or more, the amount which is provided
11 under subsection 1(n) of this Section by the application of a
12 base Chapter 1 weighting factor of .375 shall be distributed
13 to the attendance centers within the district in proportion
14 to the number of pupils enrolled at each attendance center
15 who are eligible to receive free or reduced-price lunches or
16 breakfasts under the federal Child Nutrition Act of 1966 and
17 under the National School Lunch Act during the immediately
18 preceding school year. The amount of State aid provided
19 under subsection 1(n) of this Section by the application of
20 the Chapter 1 weighting factor in excess of .375 shall be
21 distributed to the attendance centers within the district in
22 proportion to the total enrollment at each attendance center.
23 Beginning with school year 1989-90, and each school year
24 thereafter, all funds provided under subsection 1 (n) of this
25 Section by the application of the Chapter 1 weighting factor
26 which are in excess of the level of non-targeted Chapter 1
27 funds in school year 1988-89 shall be distributed to
28 attendance centers, and only to attendance centers, within
29 the district in proportion to the number of pupils enrolled
30 at each attendance center who are eligible to receive free or
31 reduced price lunches or breakfasts under the Federal Child
32 Nutrition Act and under the National School Lunch Act during
33 the immediately preceding school year. Beginning in school
34 year 1989-90, 25% of the previously non-targeted Chapter 1
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1 funds as established for school year 1988-89 shall also be
2 distributed to the attendance centers, and only to attendance
3 centers, in the district in proportion to the number of
4 pupils enrolled at each attendance center who are eligible to
5 receive free or reduced price lunches or breakfasts under the
6 Federal Child Nutrition Act and under the National School
7 Lunch Act during the immediately preceding school year; in
8 school year 1990-91, 50% of the previously non-targeted
9 Chapter 1 funds as established for school year 1988-89 shall
10 be distributed to attendance centers, and only to attendance
11 centers, in the district in proportion to the number of
12 pupils enrolled at each attendance center who are eligible to
13 receive such free or reduced price lunches or breakfasts
14 during the immediately preceding school year; in school year
15 1991-92, 75% of the previously non-targeted Chapter 1 funds
16 as established for school year 1988-89 shall be distributed
17 to attendance centers, and only to attendance centers, in the
18 district in proportion to the number of pupils enrolled at
19 each attendance center who are eligible to receive such free
20 or reduced price lunches or breakfasts during the immediately
21 preceding school year; in school year 1992-93 and thereafter,
22 all funds provided under subsection 1 (n) of this Section by
23 the application of the Chapter 1 weighting factor shall be
24 distributed to attendance centers, and only to attendance
25 centers, in the district in proportion to the number of
26 pupils enrolled at each attendance center who are eligible to
27 receive free or reduced price lunches or breakfasts under the
28 Federal Child Nutrition Act and under the National School
29 Lunch Act during the immediately preceding school year;
30 provided, however, that the distribution formula in effect
31 beginning with school year 1989-90 shall not be applicable to
32 such portion of State aid provided under subsection 1 (n) of
33 this Section by the application of the Chapter 1 weighting
34 formula as is set aside and appropriated by the school
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1 district for the purpose of providing desegregation programs
2 and related transportation to students (which portion shall
3 not exceed 5% of the total amount of State aid which is
4 provided under subsection 1 (n) of this Section by
5 application of the Chapter 1 weighting formula), and the
6 relevant percentages shall be applied to the remaining
7 portion of such State aid. The distribution of these
8 portions of general State aid among attendance centers
9 according to these requirements shall not be compensated for
10 or contravened by adjustments of the total of other funds
11 appropriated to any attendance centers. (b) The Board of
12 Education shall utilize funding from one or several sources
13 in order to fully implement this provision annually prior to
14 the opening of school. The Board of Education shall apply
15 savings from reduced administrative costs required under
16 Section 34-43.1 and growth in non-Chapter 1 State and local
17 funds to assure that all attendance centers receive funding
18 to replace losses due to redistribution of Chapter 1 funding.
19 The distribution formula and funding to replace losses due to
20 the distribution formula shall occur, in full, using any and
21 all sources available, including, if necessary, revenue from
22 administrative reductions beyond those required in Section
23 34-43.1, in order to provide the necessary funds. (c) Each
24 attendance center shall be provided by the school district a
25 distribution of noncategorical funds and other categorical
26 funds to which an attendance center is entitled under law in
27 order that the State aid provided by application of the
28 Chapter 1 weighting factor and required to be distributed
29 among attendance centers according to the requirements of
30 this paragraph supplements rather than supplants the
31 noncategorical funds and other categorical funds provided by
32 the school district to the attendance centers.
33 Notwithstanding the foregoing provisions of this subsection
34 5(i)(1) or any other law to the contrary, beginning with the
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1 1995-1996 school year and for each school year thereafter,
2 the board of a school district to which the provisions of
3 this subsection apply shall be required to allocate or
4 provide to attendance centers of the district in any such
5 school year, from the State aid provided for the district
6 under this Section by application of the Chapter 1 weighting
7 factor, an aggregate amount of not less than $261,000,000 of
8 State Chapter 1 funds. Any State Chapter 1 funds that by
9 reason of the provisions of this paragraph are not required
10 to be allocated and provided to attendance centers may be
11 used and appropriated by the board of the district for any
12 lawful school purpose. Chapter 1 funds received by an
13 attendance center (except those funds set aside for
14 desegregation programs and related transportation to
15 students) shall be used on the schedule cited in this Section
16 at the attendance center at the discretion of the principal
17 and local school council for programs to improve educational
18 opportunities at qualifying schools through the following
19 programs and services: early childhood education, reduced
20 class size or improved adult to student classroom ratio,
21 enrichment programs, remedial assistance, attendance
22 improvement and other educationally beneficial expenditures
23 which supplement the regular and basic programs as determined
24 by the State Board of Education. Chapter 1 funds shall not
25 be expended for any political or lobbying purposes as defined
26 by board rule. (d) Each district subject to the provisions of
27 this paragraph shall submit an acceptable plan to meet the
28 educational needs of disadvantaged children, in compliance
29 with the requirements of this paragraph, to the State Board
30 of Education prior to July 15 of each year. This plan shall
31 be consistent with the decisions of local school councils
32 concerning the school expenditure plans developed in
33 accordance with part 4 of Section 34-2.3. The State Board
34 shall approve or reject the plan within 60 days after its
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1 submission. If the plan is rejected the district shall give
2 written notice of intent to modify the plan within 15 days of
3 the notification of rejection and then submit a modified plan
4 within 30 days after the date of the written notice of intent
5 to modify. Districts may amend approved plans pursuant to
6 rules promulgated by the State Board of Education.
7 Upon notification by the State Board of Education that
8 the district has not submitted a plan prior to July 15 or a
9 modified plan within the time period specified herein, the
10 State aid funds affected by said plan or modified plan shall
11 be withheld by the State Board of Education until a plan or
12 modified plan is submitted.
13 If the district fails to distribute State aid to
14 attendance centers in accordance with an approved plan, the
15 plan for the following year shall allocate funds, in addition
16 to the funds otherwise required by this subparagraph, to
17 those attendance centers which were underfunded during the
18 previous year in amounts equal to such underfunding.
19 For purposes of determining compliance with this
20 subsection in relation to Chapter 1 expenditures, each
21 district subject to the provisions of this subsection shall
22 submit as a separate document by December 1 of each year a
23 report of Chapter 1 expenditure data for the prior year in
24 addition to any modification of its current plan. If it is
25 determined that there has been a failure to comply with the
26 expenditure provisions of this subsection regarding
27 contravention or supplanting, the State Superintendent of
28 Education shall, within 60 days of receipt of the report,
29 notify the district and any affected local school council.
30 The district shall within 45 days of receipt of that
31 notification inform the State Superintendent of Education of
32 the remedial or corrective action to be taken, whether by
33 amendment of the current plan, if feasible, or by adjustment
34 in the plan for the following year. Failure to provide the
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1 expenditure report or the notification of remedial or
2 corrective action in a timely manner shall result in a
3 withholding of the affected funds.
4 The State Board of Education shall promulgate rules and
5 regulations to implement the provisions of this subsection
6 5(i)(1). No funds shall be released under subsection 1(n) of
7 this Section or under this subsection 5(i)(1) to any district
8 which has not submitted a plan which has been approved by the
9 State Board of Education.
10 (2) School districts with an average daily attendance of
11 more than 1,000 and less than 50,000 and having a low income
12 pupil weighting factor in excess of .53 shall submit a plan
13 to the State Board of Education prior to October 30 of each
14 year for the use of the funds resulting from the application
15 of subsection 1(n) of this Section for the improvement of
16 instruction in which priority is given to meeting the
17 education needs of disadvantaged children. Such plan shall
18 be submitted in accordance with rules and regulations
19 promulgated by the State Board of Education.
20 (j) For the purposes of calculating State aid under this
21 Section, with respect to any part of a school district within
22 a redevelopment project area in respect to which a
23 municipality has adopted tax increment allocation financing
24 pursuant to the Tax Increment Allocation Redevelopment Act,
25 Sections 11-74.4-1 through 11-74.4-11 of the Illinois
26 Municipal Code or the Industrial Jobs Recovery Law, Sections
27 11-74.6-1 through 11-74.6-50 of the Illinois Municipal Code,
28 no part of the current equalized assessed valuation of real
29 property located in any such project area which is
30 attributable to an increase above the total initial equalized
31 assessed valuation of such property shall be used in
32 computing the equalized assessed valuation per weighted ADA
33 pupil in the district, until such time as all redevelopment
34 project costs have been paid, as provided in Section
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1 11-74.4-8 of the Tax Increment Allocation Redevelopment Act
2 or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
3 For the purpose of computing the equalized assessed valuation
4 per weighted ADA pupil in the district the total initial
5 equalized assessed valuation or the current equalized
6 assessed valuation, whichever is lower, shall be used until
7 such time as all redevelopment project costs have been paid.
8 (k) For a school district operating under the financial
9 supervision of an Authority created under Article 34A, the
10 State aid otherwise payable to that district under this
11 Section, other than State aid attributable to Chapter 1
12 students, shall be reduced by an amount equal to the budget
13 for the operations of the Authority as certified by the
14 Authority to the State Board of Education, and an amount
15 equal to such reduction shall be paid to the Authority
16 created for such district for its operating expenses in the
17 manner provided in Section 18-11. The remainder of State
18 school aid for any such district shall be paid in accordance
19 with Article 34A when that Article provides for a disposition
20 other than that provided by this Article.
21 (l) For purposes of calculating State aid under this
22 Section, the equalized assessed valuation for a school
23 district used to compute State aid shall be determined by
24 adding to the real property equalized assessed valuation for
25 the district an amount computed by dividing the amount of
26 money received by the district under the provisions of "An
27 Act in relation to the abolition of ad valorem personal
28 property tax and the replacement of revenues lost thereby",
29 certified August 14, 1979, by the total tax rate for the
30 district. For purposes of this subsection 1976 tax rates
31 shall be used for school districts in the county of Cook and
32 1977 tax rates shall be used for school districts in all
33 other counties.
34 (m) (1) For a new school district formed by combining
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1 property included totally within 2 or more previously
2 existing school districts, for its first year of existence or
3 if the new district was formed after October 31, 1982 and
4 prior to September 23, 1985, for the year immediately
5 following September 23, 1985, the State aid calculated under
6 this Section shall be computed for the new district and for
7 the previously existing districts for which property is
8 totally included within the new district. If the computation
9 on the basis of the previously existing districts is greater,
10 a supplementary payment equal to the difference shall be made
11 for the first 3 years of existence of the new district or if
12 the new district was formed after October 31, 1982 and prior
13 to September 23, 1985, for the 3 years immediately following
14 September 23, 1985.
15 (2) For a school district which annexes all of the
16 territory of one or more entire other school districts, for
17 the first year during which the change of boundaries
18 attributable to such annexation becomes effective for all
19 purposes as determined under Section 7-9 or 7A-8, the State
20 aid calculated under this Section shall be computed for the
21 annexing district as constituted after the annexation and for
22 the annexing and each annexed district as constituted prior
23 to the annexation; and if the computation on the basis of the
24 annexing and annexed districts as constituted prior to the
25 annexation is greater, a supplementary payment equal to the
26 difference shall be made for the first 3 years of existence
27 of the annexing school district as constituted upon such
28 annexation.
29 (3) For 2 or more school districts which annex all of
30 the territory of one or more entire other school districts,
31 and for 2 or more community unit districts which result upon
32 the division (pursuant to petition under Section 11A-2) of
33 one or more other unit school districts into 2 or more parts
34 and which together include all of the parts into which such
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1 other unit school district or districts are so divided, for
2 the first year during which the change of boundaries
3 attributable to such annexation or division becomes effective
4 for all purposes as determined under Section 7-9 or 11A-10,
5 as the case may be, the State aid calculated under this
6 Section shall be computed for each annexing or resulting
7 district as constituted after the annexation or division and
8 for each annexing and annexed district, or for each resulting
9 and divided district, as constituted prior to the annexation
10 or division; and if the aggregate of the State aid as so
11 computed for the annexing or resulting districts as
12 constituted after the annexation or division is less than the
13 aggregate of the State aid as so computed for the annexing
14 and annexed districts, or for the resulting and divided
15 districts, as constituted prior to the annexation or
16 division, then a supplementary payment equal to the
17 difference shall be made and allocated between or among the
18 annexing or resulting districts, as constituted upon such
19 annexation or division, for the first 3 years of their
20 existence. The total difference payment shall be allocated
21 between or among the annexing or resulting districts in the
22 same ratio as the pupil enrollment from that portion of the
23 annexed or divided district or districts which is annexed to
24 or included in each such annexing or resulting district bears
25 to the total pupil enrollment from the entire annexed or
26 divided district or districts, as such pupil enrollment is
27 determined for the school year last ending prior to the date
28 when the change of boundaries attributable to the annexation
29 or division becomes effective for all purposes. The amount
30 of the total difference payment and the amount thereof to be
31 allocated to the annexing or resulting districts shall be
32 computed by the State Board of Education on the basis of
33 pupil enrollment and other data which shall be certified to
34 the State Board of Education, on forms which it shall provide
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1 for that purpose, by the regional superintendent of schools
2 for each educational service region in which the annexing and
3 annexed districts, or resulting and divided districts are
4 located.
5 (4) If a unit school district annexes all the territory
6 of another unit school district effective for all purposes
7 pursuant to Section 7-9 on July 1, 1988, and if part of the
8 annexed territory is detached within 90 days after July 1,
9 1988, then the detachment shall be disregarded in computing
10 the supplementary State aid payments under this paragraph (m)
11 for the entire 3 year period and the supplementary State aid
12 payments shall not be diminished because of the detachment.
13 (5) Any supplementary State aid payment made under this
14 paragraph (m) shall be treated as separate from all other
15 payments made pursuant to this Section.
16 (n) For the purposes of calculating State aid under this
17 Section, the real property equalized assessed valuation for a
18 school district used to compute State aid shall be determined
19 by subtracting from the real property value as equalized or
20 assessed by the Department of Revenue for the district an
21 amount computed by dividing the amount of any abatement of
22 taxes under Section 18-170 of the Property Tax Code by the
23 maximum operating tax rates specified in subsection 5(c) of
24 this Section and an amount computed by dividing the amount of
25 any abatement of taxes under subsection (a) of Section 18-165
26 of the Property Tax Code by the maximum operating tax rates
27 specified in subsection 5(c) of this Section.
28 (o) Notwithstanding any other provisions of this
29 Section, for the 1996-1997 school year the amount of the
30 aggregate general State aid entitlement that is received
31 under this Section by each school district for that school
32 year shall be not less than the amount of the aggregate
33 general State aid entitlement that was received by the
34 district under this Section for the 1995-1996 school year. If
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1 a school district is to receive an aggregate general State
2 aid entitlement under this Section for the 1996-1997 school
3 year that is less than the amount of the aggregate general
4 State aid entitlement that the district received under this
5 Section for the 1995-1996 school year, the school district
6 shall also receive, from a separate appropriation made for
7 purposes of this paragraph (o), a supplementary payment that
8 is equal to the amount by which the general State aid
9 entitlement received by the district under this Section for
10 the 1995-1996 school year exceeds the general State aid
11 entitlement that the district is to receive under this
12 Section for the 1996-1997 school year. If the amount
13 appropriated for supplementary payments to school districts
14 under this paragraph (o) is insufficient for that purpose,
15 the supplementary payments that districts are to receive
16 under this paragraph shall be prorated according to the
17 aggregate amount of the appropriation made for purposes of
18 this paragraph.
19 B. In calculating the amount to be paid to the governing
20 board of a public university that operates a laboratory
21 school under this Section or to any alternative school that
22 is operated by a regional superintendent, the State Board of
23 Education shall require by rule such reporting requirements
24 as it deems necessary.
25 As used in this Section, "laboratory school" means a
26 public school which is created and operated by a public
27 university and approved by the State Board of Education. The
28 governing board of a public university which receives funds
29 from the State Board under this subsection B may not increase
30 the number of students enrolled in its laboratory school from
31 a single district, if that district is already sending 50 or
32 more students, except under a mutual agreement between the
33 school board of a student's district of residence and the
34 university which operates the laboratory school. A
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1 laboratory school may not have more than 1,000 students,
2 excluding students with disabilities in a special education
3 program.
4 As used in this Section, "alternative school" means a
5 public school which is created and operated by a Regional
6 Superintendent of Schools and approved by the State Board of
7 Education. Such alternative schools may offer courses of
8 instruction for which credit is given in regular school
9 programs, courses to prepare students for the high school
10 equivalency testing program or vocational and occupational
11 training.
12 Each laboratory and alternative school shall file, on
13 forms provided by the State Superintendent of Education, an
14 annual State aid claim which states the average daily
15 attendance of the school's students by month. The best 3
16 months' average daily attendance shall be computed for each
17 school. The weighted average daily attendance shall be
18 computed and the weighted average daily attendance for the
19 school's most recent 3 year average shall be compared to the
20 most recent weighted average daily attendance, and the
21 greater of the 2 shall be used for the calculation under this
22 subsection B. The general State aid entitlement shall be
23 computed by multiplying the school's student count by the
24 foundation level as determined under this Section.
25 (Source: P.A. 88-9; 88-45; 88-89; 88-386; 88-511; 88-537;
26 88-555; 88-641; 88-670, eff. 12-2-94; 89-15, eff. 5-30-95;
27 89-235, eff. 8-4-95; 89-397, eff. 8-20-95; 89-610, eff.
28 8-6-96; 89-618, eff. 8-9-96; 89-626, eff. 8-9-96; 89-679,
29 eff. 8-16-96; revised 9-10-96.)
30 (105 ILCS 5/34-54.5 new)
31 Sec. 34-54.5. Referendum to reduce increase in tax rate.
32 Notwithstanding any other provision of this Code, if the
33 maximum rate at which the school district is authorized to
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1 levy a tax for any school purpose (other than to pay
2 principal and interest on bonds or other long term debt
3 obligations of the district) increases under a law enacted
4 before the effective date of this amendatory Act of 1997 or
5 is increased by a law enacted after that effective date or
6 pursuant to a referendum of the voters of the district held
7 after that effective date, any taxpayer of the district may
8 at any time thereafter following the levy of such a tax at
9 such an increased rate file with the secretary of the board
10 of education a petition signed by the lesser of 2,500 or 5%
11 of the registered voters of the district requesting the
12 submission to a referendum of a proposition to reduce the
13 rate of the tax to the maximum rate that is in effect on the
14 effective date of this amendatory Act. The secretary of the
15 board of education shall certify the proposition to the
16 proper election authorities for submission to the electorate
17 at a regular scheduled election in accordance with the
18 general election law. If a majority of the voters voting on
19 the proposition vote in favor thereof, the increased rate at
20 which that tax thereafter may be levied shall be reduced to
21 the maximum rate specified in the proposition.
22 Section 99. Effective date. This Act takes effect upon
23 becoming a law.
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1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 30 ILCS 105/5.449 new
5 35 ILCS 5/201 from Ch. 120, par. 2-201
6 35 ILCS 5/202.5 new
7 35 ILCS 5/208.5 new
8 35 ILCS 5/901 from Ch. 120, par. 9-901
9 35 ILCS 200/18-181 new
10 105 ILCS 5/17-11.5 new
11 105 ILCS 5/18-1.1 new
12 105 ILCS 5/18-8 from Ch. 122, par. 18-8
13 105 ILCS 5/34-54.5 new