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90_SB1358 105 ILCS 5/18-8.05 Amends the School Code. In the State aid formula applicable to the 1998-99 and subsequent school years, revises provisions under which general State aid grants are to be paid to school districts based on their low-income concentration level. Provides that the low-income concentration level is to be based upon the number of pupils eligible to receive free or reduced-price lunches or breakfasts under federal law (rather than upon the low-income eligible pupil count from the most recently available federal census), divided by average daily attendance. Effective July 1, 1998. LRB9008482THpk LRB9008482THpk 1 AN ACT to amend the School Code by changing Section 2 18-8.05. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The School Code is amended by changing 6 Section 18-8.05 as follows: 7 (105 ILCS 5/18-8.05) 8 (This Section may contain text from a Public Act with a 9 delayed effective date.) 10 Sec. 18-8.05. Basis for apportionment of general State 11 financial aid and supplemental general State aid to the 12 common schools for the 1998-1999 and subsequent school years. 13 (A) General Provisions. 14 (1) The provisions of this Section apply to the 15 1998-1999 and subsequent school years. The system of general 16 State financial aid provided for in this Section is designed 17 to assure that, through a combination of State financial aid 18 and required local resources, the financial support provided 19 each pupil in Average Daily Attendance equals or exceeds a 20 prescribed per pupil Foundation Level. This formula approach 21 imputes a level of per pupil Available Local Resources and 22 provides for the basis to calculate a per pupil level of 23 general State financial aid that, when added to Available 24 Local Resources, equals or exceeds the Foundation Level. The 25 amount of per pupil general State financial aid for school 26 districts, in general, varies in inverse relation to 27 Available Local Resources. Per pupil amounts are based upon 28 each school district's Average Daily Attendance as that term 29 is defined in this Section. 30 (2) In addition to general State financial aid, school 31 districts with specified levels or concentrations of pupils -2- LRB9008482THpk 1 from low income households are eligible to receive 2 supplemental general State financial aid grants as provided 3 pursuant to subsection (H). The supplemental State aid grants 4 provided for school districts under subsection (H) shall be 5 appropriated for distribution to school districts as part of 6 the same line item in which the general State financial aid 7 of school districts is appropriated under this Section. 8 (3) To receive financial assistance under this Section, 9 school districts are required to file claims with the State 10 Board of Education, subject to the following requirements: 11 (a) Any school district which fails for any given 12 school year to maintain school as required by law, or to 13 maintain a recognized school is not eligible to file for 14 such school year any claim upon the Common School Fund. 15 In case of nonrecognition of one or more attendance 16 centers in a school district otherwise operating 17 recognized schools, the claim of the district shall be 18 reduced in the proportion which the Average Daily 19 Attendance in the attendance center or centers bear to 20 the Average Daily Attendance in the school district. A 21 "recognized school" means any public school which meets 22 the standards as established for recognition by the State 23 Board of Education. A school district or attendance 24 center not having recognition status at the end of a 25 school term is entitled to receive State aid payments due 26 upon a legal claim which was filed while it was 27 recognized. 28 (b) School district claims filed under this Section 29 are subject to Sections 18-9, 18-10, and 18-12, except as 30 otherwise provided in this Section. 31 (c) If a school district operates a full year 32 school under Section 10-19.1, the general State aid to 33 the school district shall be determined by the State 34 Board of Education in accordance with this Section as -3- LRB9008482THpk 1 near as may be applicable. 2 (d) Claims for financial assistance under this 3 Section shall not be recomputed except as expressly 4 provided under this Section. 5 (4) Except as provided in subsections (H) and (L), the 6 board of any district receiving any of the grants provided 7 for in this Section may apply those funds to any fund so 8 received for which that board is authorized to make 9 expenditures by law. 10 School districts are not required to exert a minimum 11 Operating Tax Rate in order to qualify for assistance under 12 this Section. 13 (5) As used in this Section the following terms, when 14 capitalized, shall have the meaning ascribed herein: 15 (a) "Average Daily Attendance": A count of pupil 16 attendance in school, averaged as provided for in 17 subsection (C) and utilized in deriving per pupil 18 financial support levels. 19 (b) "Available Local Resources": A computation of 20 local financial support, calculated on the basis Average 21 Daily Attendance and derived as provided pursuant to 22 subsection (D). 23 (c) "Corporate Personal Property Replacement 24 Taxes": Funds paid to local school districts pursuant to 25 "An Act in relation to the abolition of ad valorem 26 personal property tax and the replacement of revenues 27 lost thereby, and amending and repealing certain Acts and 28 parts of Acts in connection therewith", certified August 29 14, 1979, as amended (Public Act 81-1st S.S.-1). 30 (d) "Foundation Level": A prescribed level of per 31 pupil financial support as provided for in subsection 32 (B). 33 (e) "Operating Tax Rate": All school district 34 property taxes extended for all purposes, except -4- LRB9008482THpk 1 community college educational purposes for the payment of 2 tuition under Section 6-1 of the Public Community College 3 Act, Bond and Interest, Summer School, Rent, Capital 4 Improvement, and Vocational Education Building purposes. 5 (B) Foundation Level. 6 (1) The Foundation Level is a figure established by the 7 State representing the minimum level of per pupil financial 8 support that should be available to provide for the basic 9 education of each pupil in Average Daily Attendance. As set 10 forth in this Section, each school district is assumed to 11 exert a sufficient local taxing effort such that, in 12 combination with the aggregate of general State financial aid 13 provided the district, an aggregate of State and local 14 resources are available to meet the basic education needs of 15 pupils in the district. 16 (2) For the 1998-1999 school year, the Foundation Level 17 of support is $4,225. For the 1999-2000 school year, the 18 Foundation Level of support is $4,325. For the 2000-2001 19 school year, the Foundation Level of support is $4,425. 20 (3) For the 2001-2002 school year and each school year 21 thereafter, the Foundation Level of support is $4,425 or such 22 greater amount as may be established by law by the General 23 Assembly. 24 (C) Average Daily Attendance. 25 (1) For purposes of calculating general State aid 26 pursuant to subsection (E), an Average Daily Attendance 27 figure shall be utilized. The Average Daily Attendance 28 figure for formula calculation purposes shall be the monthly 29 average of the actual number of pupils in attendance of each 30 school district, as further averaged for the best 3 months of 31 pupil attendance for each school district. In compiling the 32 figures for the number of pupils in attendance, school 33 districts and the State Board of Education shall, for -5- LRB9008482THpk 1 purposes of general State aid funding, conform attendance 2 figures to the requirements of subsection (F). 3 (2) The Average Daily Attendance figures utilized in 4 subsection (E) shall be the requisite attendance data for the 5 school year immediately preceding the school year for which 6 general State aid is being calculated. 7 (D) Available Local Resources. 8 (1) For purposes of calculating general State aid 9 pursuant to subsection (E), a representation of Available 10 Local Resources per pupil, as that term is defined and 11 determined in this subsection, shall be utilized. Available 12 Local Resources per pupil shall include a calculated dollar 13 amount representing local school district revenues from local 14 property taxes and from Corporate Personal Property 15 Replacement Taxes, expressed on the basis of pupils in 16 Average Daily Attendance. 17 (2) In determining a school district's revenue from 18 local property taxes, the State Board of Education shall 19 utilize the equalized assessed valuation of all taxable 20 property of each school district as of September 30 of the 21 previous year. The equalized assessed valuation utilized 22 shall be obtained and determined as provided in subsection 23 (G). 24 (3) For school districts maintaining grades kindergarten 25 through 12, local property tax revenues per pupil shall be 26 calculated as the product of the applicable equalized 27 assessed valuation for the district multiplied by 3.00%, and 28 divided by the district's Average Daily Attendance figure. 29 For school districts maintaining grades kindergarten through 30 8, local property tax revenues per pupil shall be calculated 31 as the product of the applicable equalized assessed valuation 32 for the district multiplied by 2.30%, and divided by the 33 district's Average Daily Attendance figure. For school 34 districts maintaining grades 9 through 12, local property tax -6- LRB9008482THpk 1 revenues per pupil shall be the applicable equalized assessed 2 valuation of the district multiplied by 1.20%, and divided by 3 the district's Average Daily Attendance figure. 4 (4) The Corporate Personal Property Replacement Taxes 5 paid to each school district during the calendar year 2 years 6 before the calendar year in which a school year begins, 7 divided by the Average Daily Attendance figure for that 8 district, shall be added to the local property tax revenues 9 per pupil as derived by the application of the immediately 10 preceding paragraph (3). The sum of these per pupil figures 11 for each school district shall constitute Available Local 12 Resources as that term is utilized in subsection (E) in the 13 calculation of general State aid. 14 (E) Computation of General State Aid. 15 (1) For each school year, the amount of general State 16 aid allotted to a school district shall be computed by the 17 State Board of Education as provided in this subsection. 18 (2) For any school district for which Available Local 19 Resources per pupil is less than the product of 0.93 times 20 the Foundation Level, general State aid for that district 21 shall be calculated as an amount equal to the Foundation 22 Level minus Available Local Resources, multiplied by the 23 Average Daily Attendance of the school district. 24 (3) For any school district for which Available Local 25 Resources per pupil is equal to or greater than the product 26 of 0.93 times the Foundation Level and less than the product 27 of 1.75 times the Foundation Level, the general State aid per 28 pupil shall be a decimal proportion of the Foundation Level 29 derived using a linear algorithm. Under this linear 30 algorithm, the calculated general State aid per pupil shall 31 decline in direct linear fashion from 0.07 times the 32 Foundation Level for a school district with Available Local 33 Resources equal to the product of 0.93 times the Foundation 34 Level, to 0.05 times the Foundation Level for a school -7- LRB9008482THpk 1 district with Available Local Resources equal to the product 2 of 1.75 times the Foundation Level. The allocation of 3 general State aid for school districts subject to this 4 paragraph 3 shall be the calculated general State aid per 5 pupil figure multiplied by the Average Daily Attendance of 6 the school district. 7 (4) For any school district for which Available Local 8 Resources per pupil equals or exceeds the product of 1.75 9 times the Foundation Level, the general State aid for the 10 school district shall be calculated as the product of $218 11 multiplied by the Average Daily Attendance of the school 12 district. 13 (F) Compilation of Average Daily Attendance. 14 (1) Each school district shall, by July 1 of each year, 15 submit to the State Board of Education, on forms prescribed 16 by the State Board of Education, attendance figures for the 17 school year that began in the preceding calendar year. The 18 attendance information so transmitted shall identify the 19 average daily attendance figures for each month of the school 20 year, except that any days of attendance in August shall be 21 added to the month of September and any days of attendance in 22 June shall be added to the month of May. 23 Except as otherwise provided in this Section, days of 24 attendance by pupils shall be counted only for sessions of 25 not less than 5 clock hours of school work per day under 26 direct supervision of: (i) teachers, or (ii) non-teaching 27 personnel or volunteer personnel when engaging in 28 non-teaching duties and supervising in those instances 29 specified in subsection (a) of Section 10-22.34 and paragraph 30 10 of Section 34-18, with pupils of legal school age and in 31 kindergarten and grades 1 through 12. 32 Days of attendance by tuition pupils shall be accredited 33 only to the districts that pay the tuition to a recognized 34 school. -8- LRB9008482THpk 1 (2) Days of attendance by pupils of less than 5 clock 2 hours of school shall be subject to the following provisions 3 in the compilation of Average Daily Attendance. 4 (a) Pupils regularly enrolled in a public school 5 for only a part of the school day may be counted on the 6 basis of 1/6 day for every class hour of instruction of 7 40 minutes or more attended pursuant to such enrollment. 8 (b) Days of attendance may be less than 5 clock 9 hours on the opening and closing of the school term, and 10 upon the first day of pupil attendance, if preceded by a 11 day or days utilized as an institute or teachers' 12 workshop. 13 (c) A session of 4 or more clock hours may be 14 counted as a day of attendance upon certification by the 15 regional superintendent, and approved by the State 16 Superintendent of Education to the extent that the 17 district has been forced to use daily multiple sessions. 18 (d) A session of 3 or more clock hours may be 19 counted as a day of attendance (1) when the remainder of 20 the school day or at least 2 hours in the evening of that 21 day is utilized for an in-service training program for 22 teachers, up to a maximum of 5 days per school year of 23 which a maximum of 4 days of such 5 days may be used for 24 parent-teacher conferences, provided a district conducts 25 an in-service training program for teachers which has 26 been approved by the State Superintendent of Education; 27 or, in lieu of 4 such days, 2 full days may be used, in 28 which event each such day may be counted as a day of 29 attendance; and (2) when days in addition to those 30 provided in item (1) are scheduled by a school pursuant 31 to its school improvement plan adopted under Article 34 32 or its revised or amended school improvement plan adopted 33 under Article 2, provided that (i) such sessions of 3 or 34 more clock hours are scheduled to occur at regular -9- LRB9008482THpk 1 intervals, (ii) the remainder of the school days in which 2 such sessions occur are utilized for in-service training 3 programs or other staff development activities for 4 teachers, and (iii) a sufficient number of minutes of 5 school work under the direct supervision of teachers are 6 added to the school days between such regularly scheduled 7 sessions to accumulate not less than the number of 8 minutes by which such sessions of 3 or more clock hours 9 fall short of 5 clock hours. Any full days used for the 10 purposes of this paragraph shall not be considered for 11 computing average daily attendance. Days scheduled for 12 in-service training programs, staff development 13 activities, or parent-teacher conferences may be 14 scheduled separately for different grade levels and 15 different attendance centers of the district. 16 (e) A session of not less than one clock hour 17 teaching of hospitalized or homebound pupils on-site or 18 by telephone to the classroom may be counted as 1/2 day 19 of attendance, however these pupils must receive 4 or 20 more clock hours of instruction to be counted for a full 21 day of attendance. 22 (f) A session of at least 4 clock hours may be 23 counted as a day of attendance for first grade pupils, 24 and pupils in full day kindergartens, and a session of 2 25 or more hours may be counted as 1/2 day of attendance by 26 pupils in kindergartens which provide only 1/2 day of 27 attendance. 28 (g) For children with disabilities who are below 29 the age of 6 years and who cannot attend 2 or more clock 30 hours because of their disability or immaturity, a 31 session of not less than one clock hour may be counted as 32 1/2 day of attendance; however for such children whose 33 educational needs so require a session of 4 or more clock 34 hours may be counted as a full day of attendance. -10- LRB9008482THpk 1 (h) A recognized kindergarten which provides for 2 only 1/2 day of attendance by each pupil shall not have 3 more than 1/2 day of attendance counted in any 1 day. 4 However, kindergartens may count 2 1/2 days of attendance 5 in any 5 consecutive school days. When a pupil attends 6 such a kindergarten for 2 half days on any one school 7 day, the pupil shall have the following day as a day 8 absent from school, unless the school district obtains 9 permission in writing from the State Superintendent of 10 Education. Attendance at kindergartens which provide for 11 a full day of attendance by each pupil shall be counted 12 the same as attendance by first grade pupils. Only the 13 first year of attendance in one kindergarten shall be 14 counted, except in case of children who entered the 15 kindergarten in their fifth year whose educational 16 development requires a second year of kindergarten as 17 determined under the rules and regulations of the State 18 Board of Education. 19 (G) Equalized Assessed Valuation Data. 20 (1) For purposes of the calculation of Available Local 21 Resources required pursuant to subsection (D), the State 22 Board of Education shall secure from the Department of 23 Revenue the value as equalized or assessed by the Department 24 of Revenue of all taxable property of every school district 25 together with the applicable tax rate used in extending taxes 26 for the funds of the district as of September 30 of the 27 previous year. 28 This equalized assessed valuation, as adjusted further by 29 the requirements of this subsection, shall be utilized in the 30 calculation of Available Local Resources. 31 (2) The equalized assessed valuation in paragraph (1) 32 shall be adjusted, as applicable, in the following manner: 33 (a) For the purposes of calculating State aid under 34 this Section, with respect to any part of a school -11- LRB9008482THpk 1 district within a redevelopment project area in respect 2 to which a municipality has adopted tax increment 3 allocation financing pursuant to the Tax Increment 4 Allocation Redevelopment Act, Sections 11-74.4-1 through 5 11-74.4-11 of the Illinois Municipal Code or the 6 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 7 11-74.6-50 of the Illinois Municipal Code, no part of the 8 current equalized assessed valuation of real property 9 located in any such project area which is attributable to 10 an increase above the total initial equalized assessed 11 valuation of such property shall be used as part of the 12 equalized assessed valuation of the district, until such 13 time as all redevelopment project costs have been paid, 14 as provided in Section 11-74.4-8 of the Tax Increment 15 Allocation Redevelopment Act or in Section 11-74.6-35 of 16 the Industrial Jobs Recovery Law. For the purpose of the 17 equalized assessed valuation of the district, the total 18 initial equalized assessed valuation or the current 19 equalized assessed valuation, whichever is lower, shall 20 be used until such time as all redevelopment project 21 costs have been paid. 22 (b) The real property equalized assessed valuation 23 for a school district shall be adjusted by subtracting 24 from the real property value as equalized or assessed by 25 the Department of Revenue for the district an amount 26 computed by dividing the amount of any abatement of taxes 27 under Section 18-170 of the Property Tax Code by 3.00% 28 for a district maintaining grades kindergarten through 12 29 or by 2.30% for a district maintaining grades 30 kindergarten through 8, or by 1.20% for a district 31 maintaining grades 9 through 12 and adjusted by an amount 32 computed by dividing the amount of any abatement of taxes 33 under subsection (a) of Section 18-165 of the Property 34 Tax Code by the same percentage rates for district type -12- LRB9008482THpk 1 as specified in this subparagraph (c). 2 (H) Supplemental General State Aid. 3 (1) In addition to the general State aid a school 4 district is allotted pursuant to subsection (E), qualifying 5 school districts shall receive a grant, paid in conjunction 6 with a district's payments of general State aid, for 7 supplemental general State aid based upon the concentration 8 level of children from low-income households within the 9 school district. Supplemental State aid grants provided for 10 school districts under this subsection shall be appropriated 11 for distribution to school districts as part of the same line 12 item in which the general State financial aid of school 13 districts is appropriated under this Section. For purposes of 14 this subsection, the term "Low-Income Concentration Level" 15 shall be the number of pupils who are eligible to receive 16 free or reduced-price lunches or breakfasts under the federal 17 Child Nutrition Act of 1996 and under the National School 18 Lunch Act during the school year immediately preceding the 19 school year for which the supplemental general State aid is 20 being calculatedlow-income eligible pupil count from the21most recently available federal censusdivided by the Average 22 Daily Attendance of the school district. 23 (2) Supplemental general State aid pursuant to this 24 subsection shall be provided as follows: 25 (a) For any school district with a Low Income 26 Concentration Level of at least 20% and less than 35%, 27 the grant for any school year shall be $800 multiplied by 28 the free or reduced-price lunch or breakfastlow income29eligiblepupil count. 30 (b) For any school district with a Low Income 31 Concentration Level of at least 35% and less than 50%, 32 the grant for the 1998-1999 school year shall be $1,100 33 multiplied by the free or reduced-price lunch or 34 breakfastlow income eligiblepupil count. -13- LRB9008482THpk 1 (c) For any school district with a Low Income 2 Concentration Level of at least 50% and less than 60%, 3 the grant for the 1998-99 school year shall be $1,500 4 multiplied by the free or reduced-price lunch or 5 breakfastlow income eligiblepupil count. 6 (d) For any school district with a Low Income 7 Concentration Level of 60% or more, the grant for the 8 1998-99 school year shall be $1,900 multiplied by the 9 free or reduced-price lunch or breakfastlow income10eligiblepupil count. 11 (e) For the 1999-2000 school year, the per pupil 12 amount specified in subparagraphs (b), (c), and (d), 13 immediately above shall be increased by $100 to $1,200, 14 $1,600, and $2,000, respectively. 15 (f) For the 2000-2001 school year, the per pupil 16 amounts specified in subparagraphs (b), (c) and (d) 17 immediately above shall be increased to $1,230, $1,640, 18 and $2,050, respectively. 19 (3) School districts with an Average Daily Attendance of 20 more than 1,000 and less than 50,000 that qualify for 21 supplemental general State aid pursuant to this subsection 22 shall submit a plan to the State Board of Education prior to 23 October 30 of each year for the use of the funds resulting 24 from this grant of supplemental general State aid for the 25 improvement of instruction in which priority is given to 26 meeting the education needs of disadvantaged children. Such 27 plan shall be submitted in accordance with rules and 28 regulations promulgated by the State Board of Education. 29 (4) School districts with an Average Daily Attendance of 30 50,000 or more that qualify for supplemental general State 31 aid pursuant to this subsection shall be required to 32 distribute from funds available pursuant to this Section, no 33 less than $261,000,000 in accordance with the following 34 requirements: -14- LRB9008482THpk 1 (a) The required amounts shall be distributed to 2 the attendance centers within the district in proportion 3 to the number of pupils enrolled at each attendance 4 center who are eligible to receive free or reduced-price 5 lunches or breakfasts under the federal Child Nutrition 6 Act of 1966 and under the National School Lunch Act 7 during the immediately preceding school year. 8 (b) The distribution of these portions of 9 supplemental and general State aid among attendance 10 centers according to these requirements shall not be 11 compensated for or contravened by adjustments of the 12 total of other funds appropriated to any attendance 13 centers, and the Board of Education shall utilize funding 14 from one or several sources in order to fully implement 15 this provision annually prior to the opening of school. 16 (c) Each attendance center shall be provided by the 17 school district a distribution of noncategorical funds 18 and other categorical funds to which an attendance center 19 is entitled under law in order that the general State aid 20 and supplemental general State aid provided by 21 application of this subsection supplements rather than 22 supplants the noncategorical funds and other categorical 23 funds provided by the school district to the attendance 24 centers. 25 (d) Any funds made available under this subsection 26 that by reason of the provisions of this subsection are 27 not required to be allocated and provided to attendance 28 centers may be used and appropriated by the board of the 29 district for any lawful school purpose. 30 (e) Funds received by an attendance center pursuant 31 to this subsection shall be used by the attendance center 32 at the discretion of the principal and local school 33 council for programs to improve educational opportunities 34 at qualifying schools through the following programs and -15- LRB9008482THpk 1 services: early childhood education, reduced class size 2 or improved adult to student classroom ratio, enrichment 3 programs, remedial assistance, attendance improvement and 4 other educationally beneficial expenditures which 5 supplement the regular and basic programs as determined 6 by the State Board of Education. Funds provided shall 7 not be expended for any political or lobbying purposes as 8 defined by board rule. 9 (f) Each district subject to the provisions of this 10 subdivision (H)(4) shall submit an acceptable plan to 11 meet the educational needs of disadvantaged children, in 12 compliance with the requirements of this paragraph, to 13 the State Board of Education prior to July 15 of each 14 year. This plan shall be consistent with the decisions of 15 local school councils concerning the school expenditure 16 plans developed in accordance with part 4 of Section 17 34-2.3. The State Board shall approve or reject the plan 18 within 60 days after its submission. If the plan is 19 rejected, the district shall give written notice of 20 intent to modify the plan within 15 days of the 21 notification of rejection and then submit a modified plan 22 within 30 days after the date of the written notice of 23 intent to modify. Districts may amend approved plans 24 pursuant to rules promulgated by the State Board of 25 Education. 26 Upon notification by the State Board of Education 27 that the district has not submitted a plan prior to July 28 15 or a modified plan within the time period specified 29 herein, the State aid funds affected by that plan or 30 modified plan shall be withheld by the State Board of 31 Education until a plan or modified plan is submitted. 32 If the district fails to distribute State aid to 33 attendance centers in accordance with an approved plan, 34 the plan for the following year shall allocate funds, in -16- LRB9008482THpk 1 addition to the funds otherwise required by this 2 subsection, to those attendance centers which were 3 underfunded during the previous year in amounts equal to 4 such underfunding. 5 For purposes of determining compliance with this 6 subsection in relation to the requirements of attendance 7 center funding, each district subject to the provisions 8 of this subsection shall submit as a separate document by 9 December 1 of each year a report of expenditure data for 10 the prior year in addition to any modification of its 11 current plan. If it is determined that there has been a 12 failure to comply with the expenditure provisions of this 13 subsection regarding contravention or supplanting, the 14 State Superintendent of Education shall, within 60 days 15 of receipt of the report, notify the district and any 16 affected local school council. The district shall within 17 45 days of receipt of that notification inform the State 18 Superintendent of Education of the remedial or corrective 19 action to be taken, whether by amendment of the current 20 plan, if feasible, or by adjustment in the plan for the 21 following year. Failure to provide the expenditure 22 report or the notification of remedial or corrective 23 action in a timely manner shall result in a withholding 24 of the affected funds. 25 The State Board of Education shall promulgate rules 26 and regulations to implement the provisions of this 27 subsection. No funds shall be released under this 28 subdivision (H)(4) to any district that has not submitted 29 a plan that has been approved by the State Board of 30 Education. 31 (I) General State Aid for Newly Configured School Districts. 32 (1) For a new school district formed by combining 33 property included totally within 2 or more previously 34 existing school districts, for its first year of existence -17- LRB9008482THpk 1 the general State aid and supplemental general State aid 2 calculated under this Section shall be computed for the new 3 district and for the previously existing districts for which 4 property is totally included within the new district. If the 5 computation on the basis of the previously existing districts 6 is greater, a supplementary payment equal to the difference 7 shall be made for the first 4 years of existence of the new 8 district. 9 (2) For a school district which annexes all of the 10 territory of one or more entire other school districts, for 11 the first year during which the change of boundaries 12 attributable to such annexation becomes effective for all 13 purposes as determined under Section 7-9 or 7A-8, the general 14 State aid and supplemental general State aid calculated under 15 this Section shall be computed for the annexing district as 16 constituted after the annexation and for the annexing and 17 each annexed district as constituted prior to the annexation; 18 and if the computation on the basis of the annexing and 19 annexed districts as constituted prior to the annexation is 20 greater, a supplementary payment equal to the difference 21 shall be made for the first 4 years of existence of the 22 annexing school district as constituted upon such annexation. 23 (3) For 2 or more school districts which annex all of 24 the territory of one or more entire other school districts, 25 and for 2 or more community unit districts which result upon 26 the division (pursuant to petition under Section 11A-2) of 27 one or more other unit school districts into 2 or more parts 28 and which together include all of the parts into which such 29 other unit school district or districts are so divided, for 30 the first year during which the change of boundaries 31 attributable to such annexation or division becomes effective 32 for all purposes as determined under Section 7-9 or 11A-10, 33 as the case may be, the general State aid and supplemental 34 general State aid calculated under this Section shall be -18- LRB9008482THpk 1 computed for each annexing or resulting district as 2 constituted after the annexation or division and for each 3 annexing and annexed district, or for each resulting and 4 divided district, as constituted prior to the annexation or 5 division; and if the aggregate of the general State aid and 6 supplemental general State aid as so computed for the 7 annexing or resulting districts as constituted after the 8 annexation or division is less than the aggregate of the 9 general State aid and supplemental general State aid as so 10 computed for the annexing and annexed districts, or for the 11 resulting and divided districts, as constituted prior to the 12 annexation or division, then a supplementary payment equal to 13 the difference shall be made and allocated between or among 14 the annexing or resulting districts, as constituted upon such 15 annexation or division, for the first 4 years of their 16 existence. The total difference payment shall be allocated 17 between or among the annexing or resulting districts in the 18 same ratio as the pupil enrollment from that portion of the 19 annexed or divided district or districts which is annexed to 20 or included in each such annexing or resulting district bears 21 to the total pupil enrollment from the entire annexed or 22 divided district or districts, as such pupil enrollment is 23 determined for the school year last ending prior to the date 24 when the change of boundaries attributable to the annexation 25 or division becomes effective for all purposes. The amount 26 of the total difference payment and the amount thereof to be 27 allocated to the annexing or resulting districts shall be 28 computed by the State Board of Education on the basis of 29 pupil enrollment and other data which shall be certified to 30 the State Board of Education, on forms which it shall provide 31 for that purpose, by the regional superintendent of schools 32 for each educational service region in which the annexing and 33 annexed districts, or resulting and divided districts are 34 located. -19- LRB9008482THpk 1 (4) Any supplementary payment made under this subsection 2 (I) shall be treated as separate from all other payments made 3 pursuant to this Section. 4 (J) Supplementary Grants in Aid. 5 (1) Notwithstanding any other provisions of this 6 Section, the amount of the aggregate general State aid in 7 combination with supplemental general State aid under this 8 Section for which each school district is eligible for the 9 1998-1999 school year shall be no less than the amount of the 10 aggregate general State aid entitlement that was received by 11 the district under Section 18-8 (exclusive of amounts 12 received under subsections 5(p) and 5(p-5) of that Section) 13 for the 1997-98 school year, pursuant to the provisions of 14 that Section as it was then in effect. If a school district 15 qualifies to receive a supplementary payment made under this 16 subsection (J) for the 1998-1999 school year, the amount of 17 the aggregate general State aid in combination with 18 supplemental general State aid under this Section which that 19 district is eligible to receive for each school year 20 subsequent to the 1998-1999 school year shall be no less than 21 the amount of the aggregate general State aid entitlement 22 that was received by the district under Section 18-8 23 (exclusive of amounts received under subsections 5(p) and 24 5(p-5) of that Section) for the 1997-1998 school year, 25 pursuant to the provisions of that Section as it was then in 26 effect. 27 (2) If, as provided in paragraph (1) of this subsection 28 (J), a school district is to receive aggregate general State 29 aid in combination with supplemental general State aid under 30 this Section for the 1998-99 school year, or for the 1998-99 31 school year and any subsequent school year, that in any such 32 school year is less than the amount of the aggregate general 33 State aid entitlement that the district received for the 34 1997-98 school year, the school district shall also receive, -20- LRB9008482THpk 1 from a separate appropriation made for purposes of this 2 subsection (J), a supplementary payment that is equal to the 3 amount of the difference in the aggregate State aid figures 4 as described in paragraph (1). 5 (3) If the amount appropriated for supplementary 6 payments to school districts under this subsection (J) is 7 insufficient for that purpose, the supplementary payments 8 that districts are to receive under this subsection shall be 9 prorated according to the aggregate amount of the 10 appropriation made for purposes of this subsection. 11 (K) Grants to Laboratory and Alternative Schools. 12 In calculating the amount to be paid to the governing 13 board of a public university that operates a laboratory 14 school under this Section or to any alternative school that 15 is operated by a regional superintendent, the State Board of 16 Education shall require by rule such reporting requirements 17 as it deems necessary. 18 As used in this Section, "laboratory school" means a 19 public school which is created and operated by a public 20 university and approved by the State Board of Education. The 21 governing board of a public university which receives funds 22 from the State Board under this subsection (K) may not 23 increase the number of students enrolled in its laboratory 24 school from a single district, if that district is already 25 sending 50 or more students, except under a mutual agreement 26 between the school board of a student's district of residence 27 and the university which operates the laboratory school. A 28 laboratory school may not have more than 1,000 students, 29 excluding students with disabilities in a special education 30 program. 31 As used in this Section, "alternative school" means a 32 public school which is created and operated by a Regional 33 Superintendent of Schools and approved by the State Board of 34 Education. Such alternative schools may offer courses of -21- LRB9008482THpk 1 instruction for which credit is given in regular school 2 programs, courses to prepare students for the high school 3 equivalency testing program or vocational and occupational 4 training. 5 Each laboratory and alternative school shall file, on 6 forms provided by the State Superintendent of Education, an 7 annual State aid claim which states the Average Daily 8 Attendance of the school's students by month. The best 3 9 months' Average Daily Attendance shall be computed for each 10 school. The general State aid entitlement shall be computed 11 by multiplying the applicable Average Daily Attendance by the 12 Foundation Level as determined under this Section. 13 (L) Payments, Additional Grants in Aid and Other 14 Requirements. 15 (1) For a school district operating under the financial 16 supervision of an Authority created under Article 34A, the 17 general State aid otherwise payable to that district under 18 this Section, but not the supplemental general State aid, 19 shall be reduced by an amount equal to the budget for the 20 operations of the Authority as certified by the Authority to 21 the State Board of Education, and an amount equal to such 22 reduction shall be paid to the Authority created for such 23 district for its operating expenses in the manner provided in 24 Section 18-11. The remainder of general State school aid for 25 any such district shall be paid in accordance with Article 26 34A when that Article provides for a disposition other than 27 that provided by this Article. 28 (2) Impaction. Impaction payments shall be made as 29 provided for in Section 18-4.2. 30 (3) Summer school. Summer school payments shall be made 31 as provided in Section 18-4.3. 32 (M) Education Funding Advisory Board. 33 The Education Funding Advisory Board, hereinafter in this -22- LRB9008482THpk 1 subsection (M) referred to as the "Board", is hereby created. 2 The Board shall consist of 5 members who are appointed by the 3 Governor, by and with the advice and consent of the Senate. 4 The members appointed shall include representatives of 5 education, business, and the general public. One of the 6 members so appointed shall be designated by the Governor at 7 the time the appointment is made as the chairperson of the 8 Board. The initial members of the Board may be appointed any 9 time after the effective date of this amendatory Act of 1997. 10 The regular term of each member of the Board shall be for 4 11 years from the third Monday of January of the year in which 12 the term of the member's appointment is to commence, except 13 that of the 5 initial members appointed to serve on the 14 Board, the member who is appointed as the chairperson shall 15 serve for a term that commences on the date of his or her 16 appointment and expires on the third Monday of January, 2002, 17 and the remaining 4 members, by lots drawn at the first 18 meeting of the Board that is held after all 5 members are 19 appointed, shall determine 2 of their number to serve for 20 terms that commence on the date of their respective 21 appointments and expire on the third Monday of January, 2001, 22 and 2 of their number to serve for terms that commence on the 23 date of their respective appointments and expire on the third 24 Monday of January, 2000. All members appointed to serve on 25 the Board shall serve until their respective successors are 26 appointed and confirmed. Vacancies shall be filled in the 27 same manner as original appointments. If a vacancy in 28 membership occurs at a time when the Senate is not in 29 session, the Governor shall make a temporary appointment 30 until the next meeting of the Senate, when he or she shall 31 appoint, by and with the advice and consent of the Senate, a 32 person to fill that membership for the unexpired term. If 33 the Senate is not in session when the initial appointments 34 are made, those appointments shall be made as in the case of -23- LRB9008482THpk 1 vacancies. 2 The Education Funding Advisory Board shall be deemed 3 established, and the initial members appointed by the 4 Governor to serve as members of the Board shall take office, 5 on the date that the Governor makes his or her appointment of 6 the fifth initial member of the Board, whether those initial 7 members are then serving pursuant to appointment and 8 confirmation or pursuant to temporary appointments that are 9 made by the Governor as in the case of vacancies. 10 The State Board of Education shall provide such staff 11 assistance to the Education Funding Advisory Board as is 12 reasonably required for the proper performance by the Board 13 of its responsibilities. 14 For school years after the 2000-2001 school year, the 15 Education Funding Advisory Board, in consultation with the 16 State Board of Education, shall make recommendations as 17 provided in this subsection (M) to the General Assembly for 18 the foundation level under subdivision (B)(3) of this Section 19 and for the supplemental general State aid grant level under 20 subsection (H) of this Section for districts with high 21 concentrations of children from poverty. The recommended 22 foundation level shall be determined based on a methodology 23 which incorporates the basic education expenditures of 24 low-spending schools exhibiting high academic performance. 25 The Education Funding Advisory Board shall make such 26 recommendations to the General Assembly on January 1 of odd 27 numbered years, beginning January 1, 2001. 28 (N) General State Aid Adjustment Grant. 29 (1) Any school district subject to property tax 30 extension limitations as imposed under the provisions of the 31 Property Tax Extension Limitation Law shall be entitled to 32 receive, subject to the qualifications and requirements of 33 this subsection, a general State aid adjustment grant. 34 Eligibility for this grant shall be determined on an annual -24- LRB9008482THpk 1 basis and claims for grant payments shall be paid subject to 2 appropriations made specific to this subsection. For 3 purposes of this subsection the following terms shall have 4 the following meanings: 5 "Budget Year": The school year for which general State 6 aid is calculated and awarded under subsection (E). 7 "Current Year": The school year immediately preceding 8 the Budget Year. 9 "Base Tax Year": The property tax levy year used to 10 calculate the Budget Year allocation of general State aid. 11 "Preceding Tax Year": The property tax levy year 12 immediately preceding the Base Tax Year. 13 "Extension Limitation Ratio": A numerical ratio, 14 certified by a school district's County Clerk, in which the 15 numerator is the Base Tax Year's tax extension amount 16 resulting from the Operating Tax Rate and the denominator is 17 the Preceding Tax Year's tax extension amount resulting from 18 the Operating Tax Rate. 19 "Operating Tax Rate": The operating tax rate as defined 20 in subsection (A). 21 (2) To qualify for a general State aid adjustment grant, 22 a school district must meet all of the following eligibility 23 criteria for each Budget Year for which a grant is claimed: 24 (a) The Operating Tax Rate of the school district 25 in the Preceding Tax Year was at least 3.00% in the case 26 of a school district maintaining grades kindergarten 27 through 12, at least 2.30% in the case of a school 28 district maintaining grades kindergarten through 8, or at 29 least 1.41% in the case of a school district maintaining 30 grades 9 through 12. 31 (b) The Operating Tax Rate of the school district 32 for the Base Tax Year was reduced by the Clerk of the 33 County as a result of the requirements of the Property 34 Tax Extension Limitation Law. -25- LRB9008482THpk 1 (c) The Available Local Resources per pupil of the 2 school district as calculated pursuant to subsection (D) 3 using the Base Tax Year are less than the product of 1.75 4 times the Foundation Level for the Budget Year. 5 (d) The school district has filed a proper and 6 timely claim for a general State aid adjustment grant as 7 required under this subsection. 8 (3) A claim for grant assistance under this subsection 9 shall be filed with the State Board of Education on or before 10 January 1 of the Current Year for a grant for the Budget 11 Year. The claim shall be made on forms prescribed by the 12 State Board of Education and must be accompanied by a written 13 statement from the Clerk of the County, certifying: 14 (a) That the school district has its extension for 15 the Base Tax Year reduced as a result of the Property Tax 16 Extension Limitation Law. 17 (b) That the Operating Tax Rate of the school 18 district for the Preceding Tax Year met the tax rate 19 requirements of subdivision (N)(2) of this Section. 20 (c) The Extension Limitation Ratio as that term is 21 defined in this subsection. 22 (4) On or before August 1 of the Budget Year the State 23 Board of Education shall calculate, for all school districts 24 meeting the other requirements of this subsection, the amount 25 of the general State aid adjustment grant, if any, that the 26 school districts are eligible to receive in the Budget Year. 27 The amount of the general State aid adjustment grant shall be 28 calculated as follows: 29 (a) Determine the school district's general State 30 aid grant for the Budget Year as provided in accordance 31 with the provisions of subsection (E). 32 (b) Determine the school district's adjusted level 33 of general State aid by utilizing in the calculation of 34 Available Local Resources an equalized assessed valuation -26- LRB9008482THpk 1 that is the equalized assessed valuation of the Preceding 2 Tax Year multiplied by the Extension Limitation Ratio. 3 (c) Subtract the sum derived in subparagraph (a) 4 from the sum derived in subparagraph (b). If the result 5 is a positive number, that amount shall be the general 6 State aid adjustment grant that the district is eligible 7 to receive. 8 (5) The State Board of Education shall in the Current 9 Year, based upon claims filed in the Current Year, recommend 10 to the General Assembly an appropriation amount for the 11 general State aid adjustment grants to be made in the Budget 12 Year. 13 (6) Claims for general State aid adjustment grants shall 14 be paid in a lump sum on or before January 1 of the Budget 15 Year only from appropriations made by the General Assembly 16 expressly for claims under this subsection. No such claims 17 may be paid from amounts appropriated for any other purpose 18 provided for under this Section. In the event that the 19 appropriation for claims under this subsection is 20 insufficient to meet all Budget Year claims for a general 21 State aid adjustment grant, the appropriation available shall 22 be proportionately prorated by the State Board of Education 23 amongst all districts filing for and entitled to payments. 24 (7) The State Board of Education shall promulgate the 25 required claim forms and rules necessary to implement the 26 provisions of this subsection. 27 (O) References. 28 (1) References in other laws to the various subdivisions 29 of Section 18-8 as that Section existed before its repeal and 30 replacement by this Section 18-8.05 shall be deemed to refer 31 to the corresponding provisions of this Section 18-8.05, to 32 the extent that those references remain applicable. 33 (2) References in other laws to State Chapter 1 funds 34 shall be deemed to refer to the supplemental general State -27- LRB9008482THpk 1 aid provided under subsection (H) of this Section. 2 (Source: P.A. 90-548, eff. 7-1-98.) 3 Section 99. Effective date. This Act takes effect July 4 1, 1998.