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90_SB1338eng 110 ILCS 805/2-16.02 from Ch. 122, par. 102-16.02 Amends the Public Community College Act. Revises provisions under which annual grant funding for public community college districts is provided. Changes the term "credit hour grants" to "base operating grants" and requires a portion of the base operating grant to be allocated on the basis of the non-residential gross square footage of space maintained by a district. Eliminates provisions relating to payment of small district, special populations, workforce preparation, advanced technology equipment, deferred maintenance, and retirees health insurance grants. Makes no change in an existing provision requiring the Illinois Community College Board to distribute such other grants as may be authorized or appropriated by the General Assembly. Deletes a provision requiring a proportionate reduction or increase in district grants if the amount appropriated for the grants is different from the amount provided for the grants under the Act. Effective July 1, 1998. LRB9010009THpkA SB1338 Engrossed LRB9010009THpkA 1 AN ACT to amend the Public Community College Act by 2 changing Section 2-16.02. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Public Community College Act is amended 6 by changing Section 2-16.02 as follows: 7 (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02) 8 Sec. 2-16.02. Grants. Any community college district 9 that maintains a community college recognized by the State 10 Board shall receive, when eligible, grants enumerated in this 11 Section. Funded semester credit hours or other measures or 12 both as specified by the State Board shall be used to 13 distribute grants to community colleges. Funded semester 14 credit hours shall be defined, for purposes of this Section, 15 as the greater of (1) the number of semester credit hours, or 16 equivalent, in all funded instructional categories of 17 students who have been certified as being in attendance at 18 midterm during the respective terms of the base fiscal year 19 or (2) the average of semester credit hours, or equivalent, 20 in all funded instructional categories of students who have 21 been certified as being in attendance at midterm during the 22 respective terms of the base fiscal year and the 2 prior 23 fiscal years. For purposes of this Section, "base fiscal 24 year" means the fiscal year 2 years prior to the fiscal year 25 for which the grants are appropriated. Such students shall 26 have been residents of Illinois and shall have been enrolled 27 in courses that are part of instructional program categories 28 approved by the State Board and that are applicable toward an 29 associate degree or certificate. Courses are not eligible 30 for reimbursement where the district receives federal or 31 State financing or both, except financing through the State SB1338 Engrossed -2- LRB9010009THpkA 1 Board, for 50% or more of the program costs with the 2 exception of courses offered by contract with the Department 3 of Corrections in correctional institutions. Base operating 4Credit hourgrants shall be paid based on rates per funded 5 semester credit hour or equivalent calculated by the State 6 Board for funded instructional categories using cost of 7 instruction, enrollment, inflation, and other relevant 8 factors. A portion of the base operating grant shall be 9 allocated on the basis of non-residential gross square 10 footage of space maintained by the district.Small district11grants, in an amount to be determined by the State Board,12shall be made to each district with less than 75,000 funded13semester credit hours, exclusive of Department of Corrections14credit hours.15 Equalization grants shall be calculated by the State 16 Board by determining a local revenue factor for each district 17 by: (A) adding (1) each district's Corporate Personal 18 Property Replacement Fund allocations from the base fiscal 19 year or the average of the base fiscal year and prior year, 20 whichever is less, divided by the applicable statewide 21 average tax rate to (2) the district's most recently audited 22 year's equalized assessed valuation or the average of the 23 most recently audited year and prior year, whichever is less, 24 (B) then dividing by the district's audited full-time 25 equivalent resident students for the base fiscal year or the 26 average for the base fiscal year and the 2 prior fiscal 27 years, whichever is greater, and (C) then multiplying by the 28 applicable statewide average tax rate. The State Board shall 29 calculate a statewide weighted average threshold by applying 30 the same methodology to the totals of all districts' 31 Corporate Personal Property Tax Replacement Fund allocations, 32 equalized assessed valuations, and audited full-time 33 equivalent district resident students and multiplying by the 34 applicable statewide average tax rate. The difference between SB1338 Engrossed -3- LRB9010009THpkA 1 the statewide weighted average threshold and the local 2 revenue factor, multiplied by the number of full-time 3 equivalent resident students, shall determine the amount of 4 equalization funding that each district is eligible to 5 receive. A percentage factor, as determined by the State 6 Board, may be applied to the statewide threshold as a method 7 for allocating equalization funding. A minimum equalization 8 grant of an amount per district as determined by the State 9 Board shall be established for any community college district 10 which qualifies for an equalization grant based upon the 11 preceding criteria, but becomes ineligible for equalization 12 funding, or would have received a grant of less than the 13 minimum equalization grant, due to threshold prorations 14 applied to reduce equalization funding. As of July 1, 1997, 15 community college districts must maintain a minimum required 16 in-district tuition rate per semester credit hour as 17 determined by the State Board. For each fiscal year between 18 July 1, 1997 and June 30, 2001, districts not meeting the 19 minimum required rate will be subject to a percent reduction 20 of equalization funding as determined by the State Board. As 21 of July 1, 2001, districts must meet the required minimum 22 in-district tuition rate to qualify for equalization funding. 23A special populations grant of a base amount as24determined by the State Board shall be distributed to each25community college district. Any remaining appropriated funds26for special populations purposes shall be distributed based27on factors as determined by the State Board. Each community28college district's expenditures of funds from those grants29shall be limited to courses and services related to programs30for educationally disadvantaged and minority students as31specified by the State Board.32A workforce preparation grant of a base grant amount as33determined by the State Board shall be distributed to each34community college district. Any remaining appropriated fundsSB1338 Engrossed -4- LRB9010009THpkA 1for workforce preparation programs shall be distributed based2on factors as determined by the State Board. Each community3college district's expenditures of funds from those grants4shall be limited to workforce preparation activities and5services as specified by the State Board.6An advanced technology equipment grant shall be7distributed proportionately to each community college8district based on each district's share of the State total9funded semester credit hours, or equivalent, in business10occupational, technical occupational, and health occupational11courses or other measures as determined by the State Board.12Each community college district's expenditures of funds from13those grants shall be limited to procurement of equipment for14curricula impacted by technological advances as specified by15the State Board.16Until January 1, 1999, a retirees health insurance grant17shall be distributed proportionately to each community18college district or entity created pursuant to Section 3-5519based on the total number of community college retirees in20the State on July 1 of the fiscal year prior to the fiscal21year for which the grants are appropriated, as determined by22the State Board. Expenditures of funds from those grants23shall be limited to payment of costs associated with24retirees' health insurance. Beginning January 1, 1999, the25retirees health insurance grant shall be limited to community26college districts subject to Article VII of this Act. The27retirees health insurance grants to community college28districts not subject to Article VII for fiscal year291998-1999 shall be calculated so as to reflect the January 1,301999 termination date.31A deferred maintenance grant shall be distributed to each32community college district based upon criteria as determined33by the State Board. Each community college district's34expenditures of funds from those grants shall be limited toSB1338 Engrossed -5- LRB9010009THpkA 1deferred maintenance activities specified by the State Board.2A grant shall be provided to the Illinois Occupational3Information Coordinating Committee for the purpose of4providing the State Board with labor market information by5updating the Occupational Information System and HORIZONS6Career Information System and by providing labor market7information and technical assistance, that grant to be8provided in its entirety during the first quarter of the9fiscal year.10 The State Board shall distribute such other grants as may 11 be authorized or appropriated by the General Assembly. 12 Each community college district entitled to State grants 13 under this Section must submit a report of its enrollment to 14 the State Board not later than 30 days following the end of 15 each semester, quarter, or term in a format prescribed by the 16 State Board. These semester credit hours, or equivalent, 17 shall be certified by each district on forms provided by the 18 State Board. Each district's certified semester credit 19 hours, or equivalent, are subject to audit pursuant to 20 Section 3-22.1. 21 The State Board shall certify, prepare, and submit to the 22 State Comptroller during August, November, February, and May 23 of each fiscal year vouchers setting forth an amount equal to 24 25% of the grants approved by the State Board for base 25 operatingcredit hourgrants and, small district grants,26special populations grants, workforce preparation grants,27 equalization grants, advanced technology equipment grants,28deferred maintenance grants, and retirees health insurance29grants. The State Board shall prepare and submit to the State 30 Comptroller vouchers for payments of other grantsspecial31initiatives grant paymentsas appropriated by the General 32 Assembly.set forth in the contracts executed pursuant to33appropriations received for special initiatives. The34Comptroller shall cause his warrants to be drawn for theSB1338 Engrossed -6- LRB9010009THpkA 1respective amounts due, payable to each community college2district, within 15 days following the receipt of such3vouchers. If the amount appropriated for grants is different4from the amount provided for such grants under this Act, the5grants shall be proportionately reduced or increased6accordingly.7 For the purposes of this Section, "resident student" 8 means a student in a community college district who maintains 9 residency in that district or meets other residency 10 definitions established by the State Board, and who was 11 enrolled either in one of the approved instructional program 12 categories in that district, or in another community college 13 district to which the resident's district is paying tuition 14 under Section 6-2 or with which the resident's district has 15 entered into a cooperative agreement in lieu of such tuition. 16 For the purposes of this Section, a "full-time 17 equivalent" student is equal to 30 semester credit hours. 18 The Illinois Community College Board Contracts and Grants 19 Fund is hereby created in the State Treasury. Items of 20 income to this fund shall include any grants, awards, 21 endowments, or like proceeds, and where appropriate, other 22 funds made available through contracts with governmental, 23 public, and private agencies or persons. The General 24 Assembly shall from time to time make appropriations payable 25 from such fund for the support, improvement, and expenses of 26 the State Board and Illinois community college districts. 27 (Source: P.A. 89-141, eff. 7-14-95; 89-281, eff. 8-10-95; 28 89-473, eff. 6-18-96; 89-626, eff. 8-9-96; 90-468, eff. 29 8-17-97; 90-486, eff. 8-17-97; 90-497, eff. 8-18-97; revised 30 11-17-97.) 31 Section 99. Effective date. This Act takes effect July 32 1, 1998.