State of Illinois
90th General Assembly
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90_SB1377

      105 ILCS 5/18-8.05
          Amends  the  School  Code.   Changes  the  name  of   the
      Education  Funding  Advisory  Board  to the Education Funding
      Review Board.  Provides, for school years after the 2000-2001
      school year, that the Board shall file  a  report  specifying
      the  foundation  level and the supplemental general State aid
      grant level for the 2 ensuing school  years.   Provides  that
      changes  in  those  levels  take  effect  for the school year
      specified by the Board unless the General Assembly, within 30
      session days after  each  chamber  next  convenes  after  the
      report  is  filed,  by  resolution  disapproves the report in
      whole or specifies a  different  foundation  or  supplemental
      general  State aid grant level.  Provides that if the General
      Assembly specifies a different level in the resolution,  that
      level  takes  effect  for  the  school  year  for which it is
      specified.  Adds  related  provisions  continuing  in  effect
      those levels in which no change is made.
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                                               LRB9011278THpk
 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-                LRB9011278THpk
 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-                LRB9011278THpk
 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-                LRB9011278THpk
 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-                LRB9011278THpk
 1    purposes of general State  aid  funding,  conform  attendance
 2    figures to the requirements of subsection (F).
 3        (2)  The  Average  Daily  Attendance  figures utilized in
 4    subsection (E) shall be the requisite attendance data for the
 5    school year immediately preceding the school year  for  which
 6    general State aid is being calculated.
 7    (D)  Available Local Resources.
 8        (1)  For   purposes  of  calculating  general  State  aid
 9    pursuant to subsection (E),  a  representation  of  Available
10    Local  Resources  per  pupil,  as  that  term  is defined and
11    determined in this subsection, shall be utilized.   Available
12    Local  Resources  per pupil shall include a calculated dollar
13    amount representing local school district revenues from local
14    property  taxes  and   from   Corporate   Personal   Property
15    Replacement  Taxes,  expressed  on  the  basis  of  pupils in
16    Average Daily Attendance.
17        (2)  In determining  a  school  district's  revenue  from
18    local  property  taxes,  the  State  Board of Education shall
19    utilize the  equalized  assessed  valuation  of  all  taxable
20    property  of  each  school district as of September 30 of the
21    previous year.  The  equalized  assessed  valuation  utilized
22    shall  be  obtained  and determined as provided in subsection
23    (G).
24        (3)  For school districts maintaining grades kindergarten
25    through 12, local property tax revenues per  pupil  shall  be
26    calculated   as  the  product  of  the  applicable  equalized
27    assessed valuation for the district multiplied by 3.00%,  and
28    divided  by  the  district's Average Daily Attendance figure.
29    For school districts maintaining grades kindergarten  through
30    8,  local property tax revenues per pupil shall be calculated
31    as the product of the applicable equalized assessed valuation
32    for the district multiplied by  2.30%,  and  divided  by  the
33    district's  Average  Daily  Attendance  figure.   For  school
34    districts maintaining grades 9 through 12, local property tax
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 1    revenues per pupil shall be the applicable equalized assessed
 2    valuation of the district multiplied by 1.20%, and divided by
 3    the district's Average Daily Attendance figure.
 4        (4)  The  Corporate  Personal  Property Replacement Taxes
 5    paid to each school district during the calendar year 2 years
 6    before the calendar year  in  which  a  school  year  begins,
 7    divided  by  the  Average  Daily  Attendance  figure for that
 8    district, shall be added to the local property  tax  revenues
 9    per  pupil  as  derived by the application of the immediately
10    preceding paragraph (3).  The sum of these per pupil  figures
11    for  each  school  district  shall constitute Available Local
12    Resources as that term is utilized in subsection (E)  in  the
13    calculation of general State aid.
14    (E)  Computation of General State Aid.
15        (1)  For  each  school  year, the amount of general State
16    aid allotted to a school district shall be  computed  by  the
17    State Board of Education as provided in this subsection.
18        (2)  For  any  school  district for which Available Local
19    Resources per pupil is less than the product  of  0.93  times
20    the  Foundation  Level,  general  State aid for that district
21    shall be calculated as an  amount  equal  to  the  Foundation
22    Level  minus  Available  Local  Resources,  multiplied by the
23    Average Daily Attendance of the school district.
24        (3)  For any school district for  which  Available  Local
25    Resources  per  pupil is equal to or greater than the product
26    of 0.93 times the Foundation Level and less than the  product
27    of 1.75 times the Foundation Level, the general State aid per
28    pupil  shall  be a decimal proportion of the Foundation Level
29    derived  using  a  linear  algorithm.   Under   this   linear
30    algorithm,  the  calculated general State aid per pupil shall
31    decline  in  direct  linear  fashion  from  0.07  times   the
32    Foundation  Level  for a school district with Available Local
33    Resources equal to the product of 0.93 times  the  Foundation
34    Level,  to  0.05  times  the  Foundation  Level  for a school
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 1    district with Available Local Resources equal to the  product
 2    of  1.75  times  the  Foundation  Level.   The  allocation of
 3    general State  aid  for  school  districts  subject  to  this
 4    paragraph  3  shall  be  the calculated general State aid per
 5    pupil figure multiplied by the Average  Daily  Attendance  of
 6    the school district.
 7        (4)  For  any  school  district for which Available Local
 8    Resources per pupil equals or exceeds  the  product  of  1.75
 9    times  the  Foundation  Level,  the general State aid for the
10    school district shall be calculated as the  product  of  $218
11    multiplied  by  the  Average  Daily  Attendance of the school
12    district.
13    (F)  Compilation of Average Daily Attendance.
14        (1)  Each school district shall, by July 1 of each  year,
15    submit  to  the State Board of Education, on forms prescribed
16    by the State Board of Education, attendance figures  for  the
17    school  year  that began in the preceding calendar year.  The
18    attendance information  so  transmitted  shall  identify  the
19    average daily attendance figures for each month of the school
20    year,  except  that any days of attendance in August shall be
21    added to the month of September and any days of attendance in
22    June shall be added to the month of May.
23        Except as otherwise provided in  this  Section,  days  of
24    attendance  by  pupils  shall be counted only for sessions of
25    not less than 5 clock hours of  school  work  per  day  under
26    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
27    personnel   or   volunteer   personnel   when   engaging   in
28    non-teaching  duties  and  supervising  in  those   instances
29    specified in subsection (a) of Section 10-22.34 and paragraph
30    10  of  Section 34-18, with pupils of legal school age and in
31    kindergarten and grades 1 through 12.
32        Days of attendance by tuition pupils shall be  accredited
33    only  to  the  districts that pay the tuition to a recognized
34    school.
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 1        (2)  Days of attendance by pupils of less  than  5  clock
 2    hours  of school shall be subject to the following provisions
 3    in the compilation of Average Daily Attendance.
 4             (a)  Pupils regularly enrolled in  a  public  school
 5        for  only  a part of the school day may be counted on the
 6        basis of 1/6 day for every class hour of  instruction  of
 7        40 minutes or more attended pursuant to such enrollment.
 8             (b)  Days  of  attendance  may  be less than 5 clock
 9        hours on the opening and closing of the school term,  and
10        upon  the first day of pupil attendance, if preceded by a
11        day  or  days  utilized  as  an  institute  or  teachers'
12        workshop.
13             (c)  A session of 4  or  more  clock  hours  may  be
14        counted  as a day of attendance upon certification by the
15        regional  superintendent,  and  approved  by  the   State
16        Superintendent  of  Education  to  the  extent  that  the
17        district has been forced to use daily multiple sessions.
18             (d)  A  session  of  3  or  more  clock hours may be
19        counted as a day of attendance (1) when the remainder  of
20        the school day or at least 2 hours in the evening of that
21        day  is  utilized  for an in-service training program for
22        teachers, up to a maximum of 5 days per  school  year  of
23        which  a maximum of 4 days of such 5 days may be used for
24        parent-teacher conferences, provided a district  conducts
25        an  in-service  training  program  for teachers which has
26        been approved by the State Superintendent  of  Education;
27        or,  in  lieu of 4 such days, 2 full days may be used, in
28        which event each such day may be  counted  as  a  day  of
29        attendance;  and  (2)  when  days  in  addition  to those
30        provided in item (1) are scheduled by a  school  pursuant
31        to  its  school improvement plan adopted under Article 34
32        or its revised or amended school improvement plan adopted
33        under Article 2, provided that (i) such sessions of 3  or
34        more  clock  hours  are  scheduled  to  occur  at regular
                            -9-                LRB9011278THpk
 1        intervals, (ii) the remainder of the school days in which
 2        such sessions occur are utilized for in-service  training
 3        programs   or  other  staff  development  activities  for
 4        teachers, and (iii) a sufficient  number  of  minutes  of
 5        school  work under the direct supervision of teachers are
 6        added to the school days between such regularly scheduled
 7        sessions to  accumulate  not  less  than  the  number  of
 8        minutes  by  which such sessions of 3 or more clock hours
 9        fall short of 5 clock hours. Any full days used  for  the
10        purposes  of  this  paragraph shall not be considered for
11        computing average daily attendance.  Days  scheduled  for
12        in-service    training    programs,   staff   development
13        activities,  or   parent-teacher   conferences   may   be
14        scheduled  separately  for  different  grade  levels  and
15        different attendance centers of the district.
16             (e)  A  session  of  not  less  than  one clock hour
17        teaching of hospitalized or homebound pupils  on-site  or
18        by  telephone  to the classroom may be counted as 1/2 day
19        of attendance, however these pupils  must  receive  4  or
20        more  clock hours of instruction to be counted for a full
21        day of attendance.
22             (f)  A session of at least  4  clock  hours  may  be
23        counted  as  a  day of attendance for first grade pupils,
24        and pupils in full day kindergartens, and a session of  2
25        or  more hours may be counted as 1/2 day of attendance by
26        pupils in kindergartens which provide  only  1/2  day  of
27        attendance.
28             (g)  For  children  with  disabilities who are below
29        the age of 6 years and who cannot attend 2 or more  clock
30        hours  because  of  their  disability  or  immaturity,  a
31        session of not less than one clock hour may be counted as
32        1/2  day  of  attendance; however for such children whose
33        educational needs so require a session of 4 or more clock
34        hours may be counted as a full day of attendance.
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 1             (h)  A recognized kindergarten  which  provides  for
 2        only  1/2  day of attendance by each pupil shall not have
 3        more than 1/2 day of attendance counted  in  any  1  day.
 4        However, kindergartens may count 2 1/2 days of attendance
 5        in  any  5 consecutive school days.  When a pupil attends
 6        such a kindergarten for 2 half days  on  any  one  school
 7        day,  the  pupil  shall  have  the following day as a day
 8        absent from school, unless the  school  district  obtains
 9        permission  in  writing  from the State Superintendent of
10        Education.  Attendance at kindergartens which provide for
11        a full day of attendance by each pupil shall  be  counted
12        the  same  as attendance by first grade pupils.  Only the
13        first year of attendance in  one  kindergarten  shall  be
14        counted,  except  in  case  of  children  who entered the
15        kindergarten  in  their  fifth  year  whose   educational
16        development  requires  a  second  year of kindergarten as
17        determined under the rules and regulations of  the  State
18        Board of Education.
19    (G)  Equalized Assessed Valuation Data.
20        (1)  For  purposes  of the calculation of Available Local
21    Resources required pursuant  to  subsection  (D),  the  State
22    Board  of  Education  shall  secure  from  the  Department of
23    Revenue the value as equalized or assessed by the  Department
24    of  Revenue  of all taxable property of every school district
25    together with the applicable tax rate used in extending taxes
26    for the funds of the district  as  of  September  30  of  the
27    previous year.
28        This equalized assessed valuation, as adjusted further by
29    the requirements of this subsection, shall be utilized in the
30    calculation of Available Local Resources.
31        (2)  The  equalized  assessed  valuation in paragraph (1)
32    shall be adjusted, as applicable, in the following manner:
33             (a)  For the purposes of calculating State aid under
34        this Section, with  respect  to  any  part  of  a  school
                            -11-               LRB9011278THpk
 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-               LRB9011278THpk
 1        as specified in this subparagraph (c).
 2    (H)  Supplemental General State Aid.
 3        (1)  In addition  to  the  general  State  aid  a  school
 4    district  is  allotted pursuant to subsection (E), qualifying
 5    school districts shall receive a grant, paid  in  conjunction
 6    with   a  district's  payments  of  general  State  aid,  for
 7    supplemental general State aid based upon  the  concentration
 8    level  of  children  from  low-income  households  within the
 9    school district. Supplemental State aid grants  provided  for
10    school  districts under this subsection shall be appropriated
11    for distribution to school districts as part of the same line
12    item in which the  general  State  financial  aid  of  school
13    districts is appropriated under this Section. For purposes of
14    this  subsection,  the  term "Low-Income Concentration Level"
15    shall be the low-income eligible pupil count  from  the  most
16    recently  available  federal  census  divided  by the Average
17    Daily Attendance of the school district.
18        (2)  Supplemental general  State  aid  pursuant  to  this
19    subsection shall be provided as follows:
20             (a)  For  any  school  district  with  a  Low Income
21        Concentration Level of at least 20% and  less  than  35%,
22        the grant for any school year shall be $800 multiplied by
23        the low income eligible pupil count.
24             (b)  For  any  school  district  with  a  Low Income
25        Concentration Level of at least 35% and  less  than  50%,
26        the  grant  for the 1998-1999 school year shall be $1,100
27        multiplied by the low income eligible pupil count.
28             (c)  For any  school  district  with  a  Low  Income
29        Concentration  Level  of  at least 50% and less than 60%,
30        the grant for the 1998-99 school  year  shall  be  $1,500
31        multiplied by the low income eligible pupil count.
32             (d)  For  any  school  district  with  a  Low Income
33        Concentration Level of 60% or more,  the  grant  for  the
34        1998-99 school year shall be $1,900 multiplied by the low
                            -13-               LRB9011278THpk
 1        income eligible pupil count.
 2             (e)  For  the  1999-2000  school year, the per pupil
 3        amount specified in  subparagraphs  (b),  (c),  and  (d),
 4        immediately  above  shall be increased by $100 to $1,200,
 5        $1,600, and $2,000, respectively.
 6             (f)  For the 2000-2001 school year,  the  per  pupil
 7        amounts  specified  in  subparagraphs  (b),  (c)  and (d)
 8        immediately above shall be increased to  $1,230,  $1,640,
 9        and $2,050, respectively.
10        (3)  School districts with an Average Daily Attendance of
11    more  than  1,000  and  less  than  50,000  that  qualify for
12    supplemental general State aid pursuant  to  this  subsection
13    shall  submit a plan to the State Board of Education prior to
14    October 30 of each year for the use of  the  funds  resulting
15    from  this  grant  of  supplemental general State aid for the
16    improvement of instruction in  which  priority  is  given  to
17    meeting  the education needs of disadvantaged children.  Such
18    plan  shall  be  submitted  in  accordance  with  rules   and
19    regulations promulgated by the State Board of Education.
20        (4)  School districts with an Average Daily Attendance of
21    50,000  or  more  that qualify for supplemental general State
22    aid  pursuant  to  this  subsection  shall  be  required   to
23    distribute  from funds available pursuant to this Section, no
24    less than  $261,000,000  in  accordance  with  the  following
25    requirements:
26             (a)  The  required  amounts  shall be distributed to
27        the attendance centers within the district in  proportion
28        to  the  number  of  pupils  enrolled  at each attendance
29        center who are eligible to receive free or  reduced-price
30        lunches  or  breakfasts under the federal Child Nutrition
31        Act of 1966 and  under  the  National  School  Lunch  Act
32        during the immediately preceding school year.
33             (b)  The   distribution   of   these   portions   of
34        supplemental  and  general  State  aid  among  attendance
                            -14-               LRB9011278THpk
 1        centers  according  to  these  requirements  shall not be
 2        compensated for or  contravened  by  adjustments  of  the
 3        total  of  other  funds  appropriated  to  any attendance
 4        centers, and the Board of Education shall utilize funding
 5        from one or several sources in order to  fully  implement
 6        this provision annually prior to the opening of school.
 7             (c)  Each attendance center shall be provided by the
 8        school  district  a  distribution of noncategorical funds
 9        and other categorical funds to which an attendance center
10        is entitled under law in order that the general State aid
11        and  supplemental   general   State   aid   provided   by
12        application  of  this  subsection supplements rather than
13        supplants the noncategorical funds and other  categorical
14        funds  provided  by the school district to the attendance
15        centers.
16             (d)  Any funds made available under this  subsection
17        that  by  reason of the provisions of this subsection are
18        not required to be allocated and provided  to  attendance
19        centers  may be used and appropriated by the board of the
20        district for any lawful school purpose.
21             (e)  Funds received by an attendance center pursuant
22        to this subsection shall be used by the attendance center
23        at the discretion  of  the  principal  and  local  school
24        council for programs to improve educational opportunities
25        at  qualifying schools through the following programs and
26        services: early childhood education, reduced  class  size
27        or  improved adult to student classroom ratio, enrichment
28        programs, remedial assistance, attendance improvement and
29        other   educationally   beneficial   expenditures   which
30        supplement the regular and basic programs  as  determined
31        by  the  State  Board of Education.  Funds provided shall
32        not be expended for any political or lobbying purposes as
33        defined by board rule.
34             (f)  Each district subject to the provisions of this
                            -15-               LRB9011278THpk
 1        subdivision (H)(4) shall submit  an  acceptable  plan  to
 2        meet  the educational needs of disadvantaged children, in
 3        compliance with the requirements of  this  paragraph,  to
 4        the  State  Board  of  Education prior to July 15 of each
 5        year. This plan shall be consistent with the decisions of
 6        local school councils concerning the  school  expenditure
 7        plans  developed  in  accordance  with  part 4 of Section
 8        34-2.3.  The State Board shall approve or reject the plan
 9        within 60 days after its  submission.   If  the  plan  is
10        rejected,  the  district  shall  give  written  notice of
11        intent  to  modify  the  plan  within  15  days  of   the
12        notification of rejection and then submit a modified plan
13        within  30  days  after the date of the written notice of
14        intent to modify.  Districts  may  amend  approved  plans
15        pursuant  to  rules  promulgated  by  the  State Board of
16        Education.
17             Upon notification by the State  Board  of  Education
18        that  the district has not submitted a plan prior to July
19        15 or a modified plan within the  time  period  specified
20        herein,  the  State  aid  funds  affected by that plan or
21        modified plan shall be withheld by  the  State  Board  of
22        Education until a plan or modified plan is submitted.
23             If  the  district  fails  to distribute State aid to
24        attendance centers in accordance with an  approved  plan,
25        the  plan for the following year shall allocate funds, in
26        addition  to  the  funds  otherwise  required   by   this
27        subsection,   to  those  attendance  centers  which  were
28        underfunded during the previous year in amounts equal  to
29        such underfunding.
30             For  purposes  of  determining  compliance with this
31        subsection in relation to the requirements of  attendance
32        center  funding,  each district subject to the provisions
33        of this subsection shall submit as a separate document by
34        December 1 of each year a report of expenditure data  for
                            -16-               LRB9011278THpk
 1        the  prior  year  in  addition to any modification of its
 2        current plan.  If it is determined that there has been  a
 3        failure to comply with the expenditure provisions of this
 4        subsection  regarding  contravention  or supplanting, the
 5        State Superintendent of Education shall, within  60  days
 6        of  receipt  of  the  report, notify the district and any
 7        affected local school council.  The district shall within
 8        45 days of receipt of that notification inform the  State
 9        Superintendent of Education of the remedial or corrective
10        action  to be taken, whether  by amendment of the current
11        plan, if feasible, or by adjustment in the plan  for  the
12        following  year.   Failure  to  provide  the  expenditure
13        report  or  the  notification  of  remedial or corrective
14        action in a timely manner shall result in  a  withholding
15        of the affected funds.
16             The  State Board of Education shall promulgate rules
17        and regulations  to  implement  the  provisions  of  this
18        subsection.   No  funds  shall  be  released  under  this
19        subdivision (H)(4) to any district that has not submitted
20        a  plan  that  has  been  approved  by the State Board of
21        Education.
22    (I)  General State Aid for Newly Configured School Districts.
23        (1)  For  a  new  school  district  formed  by  combining
24    property  included  totally  within  2  or  more   previously
25    existing  school  districts,  for its first year of existence
26    the general State aid  and  supplemental  general  State  aid
27    calculated  under  this Section shall be computed for the new
28    district and for the previously existing districts for  which
29    property is totally included within the new district.  If the
30    computation on the basis of the previously existing districts
31    is  greater,  a supplementary payment equal to the difference
32    shall be made for the first 4 years of existence of  the  new
33    district.
34        (2)  For  a  school  district  which  annexes  all of the
                            -17-               LRB9011278THpk
 1    territory of one or more entire other school  districts,  for
 2    the   first  year  during  which  the  change  of  boundaries
 3    attributable to such annexation  becomes  effective  for  all
 4    purposes as determined under Section 7-9 or 7A-8, the general
 5    State aid and supplemental general State aid calculated under
 6    this  Section  shall be computed for the annexing district as
 7    constituted after the annexation and  for  the  annexing  and
 8    each annexed district as constituted prior to the annexation;
 9    and  if  the  computation  on  the  basis of the annexing and
10    annexed districts as constituted prior to the  annexation  is
11    greater,  a  supplementary  payment  equal  to the difference
12    shall be made for the first  4  years  of  existence  of  the
13    annexing school district as constituted upon such annexation.
14        (3)  For  2  or  more school districts which annex all of
15    the territory of one or more entire other  school  districts,
16    and  for 2 or more community unit districts which result upon
17    the division (pursuant to petition under  Section  11A-2)  of
18    one  or more other unit school districts into 2 or more parts
19    and which together include all of the parts into  which  such
20    other  unit  school district or districts are so divided, for
21    the  first  year  during  which  the  change  of   boundaries
22    attributable to such annexation or division becomes effective
23    for  all  purposes as determined under Section 7-9 or 11A-10,
24    as the case may be, the general State  aid  and  supplemental
25    general  State  aid  calculated  under  this Section shall be
26    computed  for  each  annexing  or   resulting   district   as
27    constituted  after  the  annexation  or division and for each
28    annexing and annexed district,  or  for  each  resulting  and
29    divided  district,  as constituted prior to the annexation or
30    division; and if the aggregate of the general State  aid  and
31    supplemental  general  State  aid  as  so  computed  for  the
32    annexing  or  resulting  districts  as  constituted after the
33    annexation or division is less  than  the  aggregate  of  the
34    general  State  aid  and supplemental general State aid as so
                            -18-               LRB9011278THpk
 1    computed for the annexing and annexed districts, or  for  the
 2    resulting  and divided districts, as constituted prior to the
 3    annexation or division, then a supplementary payment equal to
 4    the difference shall be made and allocated between  or  among
 5    the annexing or resulting districts, as constituted upon such
 6    annexation  or  division,  for  the  first  4  years of their
 7    existence.  The total difference payment shall  be  allocated
 8    between  or  among the annexing or resulting districts in the
 9    same ratio as the pupil enrollment from that portion  of  the
10    annexed  or divided district or districts which is annexed to
11    or included in each such annexing or resulting district bears
12    to the total pupil enrollment  from  the  entire  annexed  or
13    divided  district  or  districts, as such pupil enrollment is
14    determined for the school year last ending prior to the  date
15    when  the change of boundaries attributable to the annexation
16    or division becomes effective for all purposes.   The  amount
17    of  the total difference payment and the amount thereof to be
18    allocated to the annexing or  resulting  districts  shall  be
19    computed  by  the  State  Board  of Education on the basis of
20    pupil enrollment and other data which shall be  certified  to
21    the State Board of Education, on forms which it shall provide
22    for  that  purpose, by the regional superintendent of schools
23    for each educational service region in which the annexing and
24    annexed districts, or resulting  and  divided  districts  are
25    located.
26        (4)  Any supplementary payment made under this subsection
27    (I) shall be treated as separate from all other payments made
28    pursuant to this Section.
29    (J)  Supplementary Grants in Aid.
30        (1)  Notwithstanding   any   other   provisions  of  this
31    Section, the amount of the aggregate  general  State  aid  in
32    combination  with  supplemental  general State aid under this
33    Section for which each school district is  eligible  for  the
34    1998-1999 school year shall be no less than the amount of the
                            -19-               LRB9011278THpk
 1    aggregate  general State aid entitlement that was received by
 2    the  district  under  Section  18-8  (exclusive  of   amounts
 3    received  under  subsections 5(p) and 5(p-5) of that Section)
 4    for the 1997-98 school year, pursuant to  the  provisions  of
 5    that  Section  as it was then in effect. If a school district
 6    qualifies to receive a supplementary payment made under  this
 7    subsection  (J)  for the 1998-1999 school year, the amount of
 8    the  aggregate  general  State  aid   in   combination   with
 9    supplemental general State aid under this Section  which that
10    district   is  eligible  to  receive  for  each  school  year
11    subsequent to the 1998-1999 school year shall be no less than
12    the amount of the aggregate  general  State  aid  entitlement
13    that   was  received  by  the  district  under  Section  18-8
14    (exclusive of amounts received  under  subsections  5(p)  and
15    5(p-5)  of  that  Section)  for  the  1997-1998  school year,
16    pursuant to the provisions of that Section as it was then  in
17    effect.
18        (2)  If,  as provided in paragraph (1) of this subsection
19    (J), a school district is to receive aggregate general  State
20    aid  in combination with supplemental general State aid under
21    this Section for the 1998-99 school year, or for the  1998-99
22    school  year and any subsequent school year, that in any such
23    school year is less than the amount of the aggregate  general
24    State  aid  entitlement  that  the  district received for the
25    1997-98 school year, the school district shall also  receive,
26    from  a  separate  appropriation  made  for  purposes of this
27    subsection (J), a supplementary payment that is equal to  the
28    amount  of  the difference in the aggregate State aid figures
29    as described in paragraph (1).
30        (3)  If  the  amount   appropriated   for   supplementary
31    payments  to  school  districts  under this subsection (J) is
32    insufficient for that  purpose,  the  supplementary  payments
33    that  districts are to receive under this subsection shall be
34    prorated  according  to   the   aggregate   amount   of   the
                            -20-               LRB9011278THpk
 1    appropriation made for purposes of this subsection.
 2    (K)  Grants to Laboratory and Alternative Schools.
 3        In  calculating  the  amount  to be paid to the governing
 4    board of a  public  university  that  operates  a  laboratory
 5    school  under  this Section or to any alternative school that
 6    is operated by a regional superintendent, the State Board  of
 7    Education  shall  require by rule such reporting requirements
 8    as it deems necessary.
 9        As used in this  Section,  "laboratory  school"  means  a
10    public  school  which  is  created  and  operated by a public
11    university and approved by the State Board of Education.  The
12    governing board of a public university which  receives  funds
13    from  the  State  Board  under  this  subsection  (K) may not
14    increase the number of students enrolled  in  its  laboratory
15    school  from  a  single district, if that district is already
16    sending 50 or more students, except under a mutual  agreement
17    between the school board of a student's district of residence
18    and  the  university which operates the laboratory school.  A
19    laboratory school may not  have  more  than  1,000  students,
20    excluding  students  with disabilities in a special education
21    program.
22        As used in this Section,  "alternative  school"  means  a
23    public  school  which  is  created and operated by a Regional
24    Superintendent of Schools and approved by the State Board  of
25    Education.  Such  alternative  schools  may  offer courses of
26    instruction for which  credit  is  given  in  regular  school
27    programs,  courses  to  prepare  students for the high school
28    equivalency testing program or  vocational  and  occupational
29    training.
30        Each  laboratory  and  alternative  school shall file, on
31    forms provided by the State Superintendent of  Education,  an
32    annual  State  aid  claim  which  states  the  Average  Daily
33    Attendance  of  the  school's  students by month.  The best 3
34    months' Average Daily Attendance shall be computed  for  each
                            -21-               LRB9011278THpk
 1    school.  The  general State aid entitlement shall be computed
 2    by multiplying the applicable Average Daily Attendance by the
 3    Foundation Level as determined under this Section.
 4    (L)  Payments,   Additional   Grants   in   Aid   and   Other
 5    Requirements.
 6        (1)  For a school district operating under the  financial
 7    supervision  of  an  Authority created under Article 34A, the
 8    general State aid otherwise payable to  that  district  under
 9    this  Section,  but  not  the supplemental general State aid,
10    shall be reduced by an amount equal to  the  budget  for  the
11    operations  of the Authority as certified by the Authority to
12    the State Board of Education, and an  amount  equal  to  such
13    reduction  shall  be  paid  to the Authority created for such
14    district for its operating expenses in the manner provided in
15    Section 18-11.  The remainder of general State school aid for
16    any such district shall be paid in  accordance  with  Article
17    34A  when  that Article provides for a disposition other than
18    that provided by this Article.
19        (2)  Impaction.  Impaction  payments  shall  be  made  as
20    provided for in Section 18-4.2.
21        (3)  Summer school.  Summer school payments shall be made
22    as provided in Section 18-4.3.
23    (M)  Education Funding Review Advisory Board.
24        The  Education Funding Review Advisory Board, hereinafter
25    in this subsection (M) referred to as the "Board", is  hereby
26    created.  The  Board  shall  consist  of  5  members  who are
27    appointed by the Governor, by and with the advice and consent
28    of  the  Senate.  The   members   appointed   shall   include
29    representatives  of  education,  business,  and  the  general
30    public.  One  of the members so appointed shall be designated
31    by the Governor at the time the appointment is  made  as  the
32    chairperson  of  the  Board. The initial members of the Board
33    may be appointed any time after the effective  date  of  this
                            -22-               LRB9011278THpk
 1    amendatory  Act  of 1997.  The regular term of each member of
 2    the Board shall be for 4  years  from  the  third  Monday  of
 3    January  of  the  year  in  which  the  term  of the member's
 4    appointment is to commence, except  that  of  the  5  initial
 5    members  appointed  to  serve on the Board, the member who is
 6    appointed as the chairperson shall  serve  for  a  term  that
 7    commences  on  the date of his or her appointment and expires
 8    on the third Monday of January, 2002,  and  the  remaining  4
 9    members, by lots drawn at the first meeting of the Board that
10    is  held after all 5 members are appointed, shall determine 2
11    of their number to serve for terms that commence on the  date
12    of  their  respective  appointments  and  expire on the third
13    Monday of January, 2001, and 2 of their number to  serve  for
14    terms   that   commence  on  the  date  of  their  respective
15    appointments and expire on the third Monday of January, 2000.
16    All members appointed to serve on the Board shall serve until
17    their respective  successors  are  appointed  and  confirmed.
18    Vacancies  shall  be  filled  in  the same manner as original
19    appointments.  If a vacancy in membership occurs  at  a  time
20    when  the Senate is not in session, the Governor shall make a
21    temporary appointment until the next meeting of  the  Senate,
22    when  he  or  she  shall  appoint, by and with the advice and
23    consent of the Senate, a person to fill that  membership  for
24    the unexpired term.  If the Senate is not in session when the
25    initial  appointments  are  made, those appointments shall be
26    made as in the case of vacancies.
27        The Education Funding  Review  Advisory  Board  shall  be
28    deemed  established, and the initial members appointed by the
29    Governor to serve as members of the Board shall take  office,
30    on the date that the Governor makes his or her appointment of
31    the  fifth initial member of the Board, whether those initial
32    members  are  then  serving  pursuant  to   appointment   and
33    confirmation  or  pursuant to temporary appointments that are
34    made by the Governor as in the case of vacancies.
                            -23-               LRB9011278THpk
 1        The State Board of Education  shall  provide  such  staff
 2    assistance  to the Education Funding Review Advisory Board as
 3    is reasonably required for  the  proper  performance  by  the
 4    Board of its responsibilities.
 5        For  school  years  after  the 2000-2001 school year, the
 6    Education Funding Review Advisory Board, in consultation with
 7    the State Board of Education, shall prepare and file with the
 8    General Assembly make recommendations  as  provided  in  this
 9    subsection (M) its report specifying, to the General Assembly
10    for  the  school year next commencing after the filing of its
11    report and the next succeeding school  year,  the  foundation
12    level  under  subdivision  (B)(3) of this Section and for the
13    supplemental general State aid grant level  under  subsection
14    (H) of this Section for districts with high concentrations of
15    children  from poverty.  The specified recommended foundation
16    level shall  be  determined  based  on  a  methodology  which
17    incorporates the basic education expenditures of low-spending
18    schools exhibiting high academic performance.
19        The  Education  Funding Review Board shall conduct public
20    hearings before filing a report under  this  subsection.   At
21    the  public hearings the Board shall allow interested persons
22    to present their views and comments.  The Board may prescribe
23    reasonable rules for the conduct of the public hearings.  The
24    meetings of the Board are subject to the Open Meetings Act.
25        The Education Funding Review Advisory  Board  shall  file
26    its  report  with  make  such  recommendations to the General
27    Assembly on  January  1  of  odd  numbered  years,  beginning
28    January 1, 2001.
29        If  the  report  increases  the  foundation  level  under
30    subdivision  (B)(3)  of  this  Section  or  the  supplemental
31    general  State  aid  grant level under subsection (H) of this
32    Section, the increase shall take effect for the  school  year
33    for  which the increase is specified in the report unless the
34    General Assembly disapproves the report in whole or specifies
                            -24-               LRB9011278THpk
 1    a different foundation level or  supplemental  general  State
 2    aid  grant  level, within 30 session days after each house of
 3    the legislature next convenes after the report is  filed,  by
 4    adoption  of a resolution by a record vote of the majority of
 5    the members elected in each house.  The resolution  shall  be
 6    binding  upon  the  Board,  and if the resolution specifies a
 7    different foundation level or supplemental general State  aid
 8    grant  level,  the level as specified in the resolution shall
 9    take effect for the school year for which  it  is  specified.
10    If  the  Board  fails  to  specify a change in the foundation
11    level or the supplemental general State aid grant level or if
12    the General Assembly disapproves the report of the  Board  in
13    whole  without  specifying  in the resolution a change in the
14    foundation level or  supplemental  general  State  aid  grant
15    level,  the  level or levels in effect for the school year in
16    which the Board's report is filed and in which no  change  is
17    made  as  provided  in  this subsection (N) shall continue to
18    apply  to  the  ensuing  school  years  unless   changed   in
19    accordance with law.
20    (N)  General State Aid Adjustment Grant.
21        (1)  Any   school   district   subject  to  property  tax
22    extension limitations as imposed under the provisions of  the
23    Property  Tax  Extension  Limitation Law shall be entitled to
24    receive, subject to the qualifications  and  requirements  of
25    this  subsection,  a  general  State  aid  adjustment  grant.
26    Eligibility  for  this grant shall be determined on an annual
27    basis and claims for grant payments shall be paid subject  to
28    appropriations   made   specific  to  this  subsection.   For
29    purposes of this subsection the following  terms  shall  have
30    the following meanings:
31        "Budget  Year":   The school year for which general State
32    aid is calculated and awarded under subsection (E).
33        "Current Year":  The school  year  immediately  preceding
34    the Budget Year.
                            -25-               LRB9011278THpk
 1        "Base  Tax  Year":   The  property  tax levy year used to
 2    calculate the Budget Year allocation of general State aid.
 3        "Preceding  Tax  Year":   The  property  tax  levy   year
 4    immediately preceding the Base Tax Year.
 5        "Extension   Limitation   Ratio":   A   numerical  ratio,
 6    certified by a school district's County Clerk, in  which  the
 7    numerator  is  the  Base  Tax  Year's  tax  extension  amount
 8    resulting  from the Operating Tax Rate and the denominator is
 9    the Preceding Tax Year's tax extension amount resulting  from
10    the Operating Tax Rate.
11        "Operating  Tax  Rate": The operating tax rate as defined
12    in subsection (A).
13        (2)  To qualify for a general State aid adjustment grant,
14    a school district must meet all of the following  eligibility
15    criteria for each Budget Year for which a grant is claimed:
16             (a)  The  Operating  Tax Rate of the school district
17        in the Preceding Tax Year was at least 3.00% in the  case
18        of  a  school  district  maintaining  grades kindergarten
19        through 12, at least  2.30%  in  the  case  of  a  school
20        district maintaining grades kindergarten through 8, or at
21        least  1.41% in the case of a school district maintaining
22        grades 9 through 12.
23             (b)  The Operating Tax Rate of the  school  district
24        for  the  Base  Tax  Year was reduced by the Clerk of the
25        County as a result of the requirements  of  the  Property
26        Tax Extension Limitation Law.
27             (c)  The  Available Local Resources per pupil of the
28        school district as calculated pursuant to subsection  (D)
29        using the Base Tax Year are less than the product of 1.75
30        times the Foundation Level for the Budget Year.
31             (d)  The  school  district  has  filed  a proper and
32        timely claim for a general State aid adjustment grant  as
33        required under this subsection.
34        (3)  A  claim  for grant assistance under this subsection
                            -26-               LRB9011278THpk
 1    shall be filed with the State Board of Education on or before
 2    January 1 of the Current Year for  a  grant  for  the  Budget
 3    Year.   The  claim  shall  be made on forms prescribed by the
 4    State Board of Education and must be accompanied by a written
 5    statement from the Clerk of the County, certifying:
 6             (a)  That the school district has its extension  for
 7        the Base Tax Year reduced as a result of the Property Tax
 8        Extension Limitation Law.
 9             (b)  That  the  Operating  Tax  Rate  of  the school
10        district for the Preceding Tax  Year  met  the  tax  rate
11        requirements of subdivision (N)(2) of this Section.
12             (c)  The  Extension Limitation Ratio as that term is
13        defined in this subsection.
14        (4)  On or before August 1 of the Budget Year  the  State
15    Board  of Education shall calculate, for all school districts
16    meeting the other requirements of this subsection, the amount
17    of the general State aid adjustment grant, if any,  that  the
18    school  districts are eligible to receive in the Budget Year.
19    The amount of the general State aid adjustment grant shall be
20    calculated as follows:
21             (a)  Determine the school district's  general  State
22        aid  grant  for the Budget Year as provided in accordance
23        with the provisions of subsection (E).
24             (b)  Determine the school district's adjusted  level
25        of  general  State aid by utilizing in the calculation of
26        Available Local Resources an equalized assessed valuation
27        that is the equalized assessed valuation of the Preceding
28        Tax Year multiplied by the Extension Limitation Ratio.
29             (c)  Subtract the sum derived  in  subparagraph  (a)
30        from  the sum derived in subparagraph (b).  If the result
31        is a positive number, that amount shall  be  the  general
32        State  aid adjustment grant that the district is eligible
33        to receive.
34        (5)  The State Board of Education shall  in  the  Current
                            -27-               LRB9011278THpk
 1    Year,  based upon claims filed in the Current Year, recommend
 2    to the General  Assembly  an  appropriation  amount  for  the
 3    general  State aid adjustment grants to be made in the Budget
 4    Year.
 5        (6)  Claims for general State aid adjustment grants shall
 6    be paid in a lump sum on or before January 1  of  the  Budget
 7    Year  only  from  appropriations made by the General Assembly
 8    expressly for claims under this subsection.  No  such  claims
 9    may  be  paid from amounts appropriated for any other purpose
10    provided for under this  Section.   In  the  event  that  the
11    appropriation   for   claims   under   this   subsection   is
12    insufficient  to  meet  all  Budget Year claims for a general
13    State aid adjustment grant, the appropriation available shall
14    be proportionately prorated by the State Board  of  Education
15    amongst all districts filing for and entitled to payments.
16        (7)  The  State  Board  of Education shall promulgate the
17    required claim forms and rules  necessary  to  implement  the
18    provisions of this subsection.
19    (O)  References.
20        (1)  References in other laws to the various subdivisions
21    of Section 18-8 as that Section existed before its repeal and
22    replacement  by this Section 18-8.05 shall be deemed to refer
23    to the corresponding provisions of this Section  18-8.05,  to
24    the extent that those references remain applicable.
25        (2)  References  in  other  laws to State Chapter 1 funds
26    shall be deemed to refer to the  supplemental  general  State
27    aid provided under subsection (H) of this Section.
28    (Source: P.A. 90-548, eff. 7-1-98.)

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