State of Illinois
90th General Assembly
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90_SB1553

      105 ILCS 5/18-8           from Ch. 122, par. 18-8
      105 ILCS 5/18-8.05
          Amends  the  School  Code.   In  the  State  aid  formula
      applicable to the 1997-98 school year and in  the  State  aid
      formula  applicable to subsequent school years, provides that
      the low-income eligible  pupil  count  used  to  compute  the
      supplemental  State  aid  grant  of  a  high  school district
      meeting  certain  criteria  shall  be  determined  using  the
      district's low-income eligible pupil count from  the  earlier
      of   the   2   most   recent   federal  censuses.   Effective
      immediately, except the  change  to  the  State  aid  formula
      applicable  to  the 1998-99 and subsequent school years takes
      effect July 1, 1998.
                                                   SDS/bill0067/jwp
                                             SDS/bill0067/jwp
 1        AN ACT to amend the School Code by changing Sections 18-8
 2    and 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    Sections 18-8 and 18-8.05 as follows:
 7        (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
 8        (Section scheduled to be repealed on July 1, 1998)
 9        Sec.  18-8.  Basis  for   apportionment   to   districts,
10    laboratory schools and alternative schools.
11        A.  The  amounts to be apportioned for school years prior
12    to the 1998-1999 school year shall  be  determined  for  each
13    educational service region by school districts, as follows:
14        1.  General Provisions.
15        (a)  In the computation of the amounts to be apportioned,
16    the  average  daily  attendance  of  all  pupils  in grades 9
17    through 12 shall be multiplied by 1.25.   The  average  daily
18    attendance  of  all  pupils  in  grades  7  and  8  shall  be
19    multiplied by 1.05.
20        (b)  The   actual  number  of  pupils  in  average  daily
21    attendance shall be computed in a one-teacher school district
22    by dividing the total aggregate days of pupil  attendance  by
23    the  actual  number of days school is in session but not more
24    than 30 such pupils shall be  accredited  for  such  type  of
25    district;  and  in  districts  of  2  or more teachers, or in
26    districts where records of attendance  are  kept  by  session
27    teachers, by taking the sum of the respective averages of the
28    units composing the group.
29        (c)  Pupils in average daily attendance shall be computed
30    upon the average of the best 3 months of pupils attendance of
31    the  current  school  year  except  as district claims may be
                            -2-              SDS/bill0067/jwp
 1    later  amended  as  provided  hereinafter  in  this  Section.
 2    However,  for  any   school   district   maintaining   grades
 3    kindergarten through 12, the "average daily attendance" shall
 4    be  computed  on  the  average of the best 3 months of pupils
 5    attendance of the current year in grades kindergarten through
 6    8, added together with the average of the best  3  months  of
 7    pupils attendance of the current year in grades 9 through 12,
 8    except as district claims may be later amended as provided in
 9    this  Section.   Days  of attendance shall be kept by regular
10    calendar months, except any  days  of  attendance  in  August
11    shall  be  added  to  the  month of September and any days of
12    attendance in June shall  be  added  to  the  month  of  May.
13    Except  as  otherwise  provided  in  this  Section,  days  of
14    attendance  by  pupils  shall be counted only for sessions of
15    not less than 5 clock hours of  school  work  per  day  under
16    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
17    personnel   or   volunteer   personnel   when   engaging   in
18    non-teaching  duties  and  supervising  in  those   instances
19    specified in subsection (a) of Section 10-22.34 and paragraph
20    10  of  Section 34-18, with pupils of legal school age and in
21    kindergarten and grades 1 through 12.
22        (d)  Pupils regularly enrolled in  a  public  school  for
23    only  a part of the school day may be counted on the basis of
24    1/6 day for every class hour of instruction of 40 minutes  or
25    more attended pursuant to such enrollment.
26        (e)  Days of attendance may be less than 5 clock hours on
27    the  opening  and  closing  of  the school term, and upon the
28    first day of pupil attendance, if preceded by a day  or  days
29    utilized as an institute or teachers' workshop.
30        (f)  A session of 4 or more clock hours may be counted as
31    a  day  of  attendance  upon  certification  by  the regional
32    superintendent, and approved by the State  Superintendent  of
33    Education  to the extent that the district has been forced to
34    use daily multiple sessions.
                            -3-              SDS/bill0067/jwp
 1        (g)  A session of 3 or more clock hours may be counted as
 2    a day of attendance (1) when the remainder of the school  day
 3    or  at  least  2 hours in the evening of that day is utilized
 4    for an in-service training program  for  teachers,  up  to  a
 5    maximum  of  5  days  per school year of which a maximum of 4
 6    days  of  such  5  days  may  be  used   for   parent-teacher
 7    conferences,  provided  a  district  conducts  an  in-service
 8    training  program for teachers which has been approved by the
 9    State Superintendent of Education; or,  in  lieu  of  4  such
10    days,  2  full days may be used, in which event each such day
11    may be counted as a day of attendance; and (2) when  days  in
12    addition  to  those  provided  in item (1) are scheduled by a
13    school pursuant to its school improvement plan adopted  under
14    Article  34 or its revised or amended school improvement plan
15    adopted under Article 2, provided that (i) such sessions of 3
16    or more  clock  hours  are  scheduled  to  occur  at  regular
17    intervals,  (ii)  the  remainder  of the school days in which
18    such sessions occur  are  utilized  for  in-service  training
19    programs  or other staff development activities for teachers,
20    and (iii) a sufficient number of minutes of school work under
21    the direct supervision of teachers are added  to  the  school
22    days  between such regularly scheduled sessions to accumulate
23    not less than the number of minutes by which such sessions of
24    3 or more clock hours fall short of 5 clock hours.  Any  full
25    days  used  for  the  purposes of this paragraph shall not be
26    considered for  computing  average  daily  attendance.   Days
27    scheduled for in-service training programs, staff development
28    activities,  or  parent-teacher  conferences may be scheduled
29    separately  for  different   grade   levels   and   different
30    attendance centers of the district.
31        (h)  A  session  of not less than one clock hour teaching
32    of hospitalized or homebound pupils on-site or  by  telephone
33    to  the  classroom  may  be counted as 1/2 day of attendance,
34    however these pupils must receive 4 or more  clock  hours  of
                            -4-              SDS/bill0067/jwp
 1    instruction to be counted for a full day of attendance.
 2        (i)  A  session  of at least 4 clock hours may be counted
 3    as a day of attendance for first grade pupils, and pupils  in
 4    full  day kindergartens, and a session of 2 or more hours may
 5    be  counted  as  1/2  day  of   attendance   by   pupils   in
 6    kindergartens which provide only 1/2 day of attendance.
 7        (j)  For children with disabilities who are below the age
 8    of  6  years  and  who  cannot attend two or more clock hours
 9    because of their disability or immaturity, a session  of  not
10    less  than  one  clock  hour  may  be  counted  as 1/2 day of
11    attendance; however for such children whose educational needs
12    so require a session of 4 or more clock hours may be  counted
13    as a full day of attendance.
14        (k)  A  recognized  kindergarten  which provides for only
15    1/2 day of attendance by each pupil shall not have more  than
16    1/2  day  of  attendance  counted  in  any  1  day.  However,
17    kindergartens may count 2 1/2 days of  attendance  in  any  5
18    consecutive  school  days.   Where  a  pupil  attends  such a
19    kindergarten for 2 half days on  any  one  school  day,  such
20    pupil  shall  have  the  following  day  as a day absent from
21    school, unless the  school  district  obtains  permission  in
22    writing   from   the   State   Superintendent  of  Education.
23    Attendance at kindergartens which provide for a full  day  of
24    attendance  by  each  pupil  shall  be  counted  the  same as
25    attendance by first grade pupils.  Only  the  first  year  of
26    attendance  in  one  kindergarten  shall be counted except in
27    case of children who entered the kindergarten in their  fifth
28    year  whose educational development requires a second year of
29    kindergarten as determined under the rules and regulations of
30    the State Board of Education.
31        (l)  Days  of  attendance  by  tuition  pupils  shall  be
32    accredited only to the districts that pay the  tuition  to  a
33    recognized school.
34        (m)  The  greater  of  the  immediately  preceding year's
                            -5-              SDS/bill0067/jwp
 1    weighted average daily  attendance  or  the  average  of  the
 2    weighted   average   daily   attendance  of  the  immediately
 3    preceding year and the previous 2 years shall be used.
 4        For any school year beginning July 1, 1986 or thereafter,
 5    if the weighted average daily  attendance  in  either  grades
 6    kindergarten  through  8 or grades 9 through 12 of a district
 7    as computed for the  first  calendar  month  of  the  current
 8    school  year  exceeds  by  more than 5%, but not less than 25
 9    pupils, the district's weighted average daily attendance  for
10    the  first  calendar  month of the immediately preceding year
11    in, respectively, grades kindergarten through 8 or  grades  9
12    through  12,  a  supplementary  payment  shall be made to the
13    district equal to the difference in the  amount  of  aid  the
14    district  would be paid under this Section using the weighted
15    average daily attendance in the district as computed for  the
16    first  calendar  month  of  the  current  school year and the
17    amount of aid the district would be paid using  the  weighted
18    average  daily  attendance  in  the  district  for  the first
19    calendar month  of  the  immediately  preceding  year.   Such
20    supplementary State aid payment shall be paid to the district
21    as  provided  in  Section  18-8.4  and  shall  be  treated as
22    separate from  all  other  payments  made  pursuant  to  this
23    Section 18-8.
24        (n)  The  number  of  low  income  eligible  pupils  in a
25    district shall result in an increase in the weighted  average
26    daily  attendance  calculated  as  follows: The number of low
27    income pupils shall increase the weighted ADA by .53 for each
28    student adjusted  by  dividing  the  percent  of  low  income
29    eligible  pupils in the district by the ratio of eligible low
30    income pupils in the State to the  best  3  months'  weighted
31    average  daily  attendance  in the State.  In no case may the
32    adjustment under this paragraph result in a greater weighting
33    than .625 for each eligible low income student.   The  number
34    of  low  income  eligible  pupils  in a district shall be the
                            -6-              SDS/bill0067/jwp
 1    low-income eligible count from the  most  recently  available
 2    federal  census  and  the  weighted  average daily attendance
 3    shall be calculated in accordance with the  other  provisions
 4    of this paragraph.
 5        (o)  Any school district which fails for any given school
 6    year  to maintain school as required by law, or to maintain a
 7    recognized school is not eligible to  file  for  such  school
 8    year  any  claim  upon  the  common  school fund.  In case of
 9    nonrecognition of one or more attendance centers in a  school
10    district otherwise operating recognized schools, the claim of
11    the  district  shall  be  reduced in the proportion which the
12    average daily attendance in the attendance center or  centers
13    bear  to the average daily attendance in the school district.
14    A "recognized school" means any public school which meets the
15    standards as established for recognition by the  State  Board
16    of  Education.   A  school  district or attendance center not
17    having recognition status at the end  of  a  school  term  is
18    entitled to receive State aid payments due upon a legal claim
19    which was filed while it was recognized.
20        (p)  School  district claims filed under this Section are
21    subject to Sections 18-9, 18-10 and 18-12, except  as  herein
22    otherwise provided.
23        (q)  The  State  Board of Education shall secure from the
24    Department of Revenue the value as equalized or  assessed  by
25    the  Department  of  Revenue of all taxable property of every
26    school district together with the applicable tax rate used in
27    extending taxes for the funds of the district as of September
28    30 of the previous year.  The Department of Revenue shall add
29    to the equalized assessed value of all  taxable  property  of
30    each  school district situated entirely or partially within a
31    county with 2,000,000 or more inhabitants an amount equal  to
32    the  total  amount  by which the homestead exemptions allowed
33    under Sections 15-170 and 15-175 of the Property Tax Code for
34    real property situated in that school  district  exceeds  the
                            -7-              SDS/bill0067/jwp
 1    total  amount  that  would  have  been allowed in that school
 2    district as homestead exemptions under those Sections if  the
 3    maximum  reduction  under  Section 15-170 of the Property Tax
 4    Code was $2,000  and  the  maximum  reduction  under  Section
 5    15-175 of the Property Tax Code was $3,500.  The county clerk
 6    of  any  county  with  2,000,000  or  more  inhabitants shall
 7    annually calculate and certify to  the  Department  for  each
 8    school  district  all homestead exemption amounts required by
 9    this amendatory Act of 1992.  In a new district which has not
10    had any tax rates yet determined for extension  of  taxes,  a
11    leveled uniform rate shall be computed from the latest amount
12    of  the  fund taxes extended on the several areas within such
13    new district.
14        (r)  If a school district operates  a  full  year  school
15    under  Section  10-19.1,  the general state aid to the school
16    district shall be determined by the State Board of  Education
17    in accordance with this Section as near as may be applicable.
18        2.  New  or  recomputed  claim.  The  general  State  aid
19    entitlement for a newly created school district or a district
20    which has annexed an entire school district shall be computed
21    using   attendance,   compensatory  pupil  counts,  equalized
22    assessed valuation, and tax rate data which would  have  been
23    used  had the district been in existence for 3 years. General
24    State aid entitlements shall  not  be  recomputed  except  as
25    permitted herein.
26        3.  Impaction.   Impaction  payments  shall  be  made  as
27    provided for in Section 18-4.2.
28        4.  Summer  school.  Summer school payments shall be made
29    as provided in Section 18-4.3.
30        5.  Computation of State aid.  The State grant  shall  be
31    determined as follows:
32        (a)  The State shall guarantee the amount of money that a
33    district's operating tax rate as limited in other Sections of
34    this  Act  would produce if every district maintaining grades
                            -8-              SDS/bill0067/jwp
 1    kindergarten through 12 had an equalized  assessed  valuation
 2    equal  to  $74,791  per  weighted  ADA  pupil; every district
 3    maintaining grades kindergarten through 8  had  an  equalized
 4    assessed  valuation  of  $108,644 per weighted ADA pupil; and
 5    every  district  maintaining  grades  9  through  12  had  an
 6    equalized assessed valuation of  $187,657  per  weighted  ADA
 7    pupil.   The  State  Board  of  Education  shall  adjust  the
 8    equalized  assessed  valuation   amounts   stated   in   this
 9    paragraph,  if  necessary,  to  conform  to the amount of the
10    appropriation approved for any fiscal year.
11        (b)  The operating tax rate to be used shall  consist  of
12    all district taxes extended for all purposes except community
13    college educational purposes for the payment of tuition under
14    Section  6-1  of  the  Public Community College Act, Bond and
15    Interest,  Summer  School,  Rent,  Capital  Improvement   and
16    Vocational  Education  Building.   Any  district may elect to
17    exclude Transportation from the calculation of its  operating
18    tax  rate.  Districts  may  include  taxes  extended  for the
19    payment of principal and interest on bonds issued  under  the
20    provisions  of  Sections  17-2.11a and 20-2 at a rate of .05%
21    per year for  each  purpose  or  the  actual  rate  extended,
22    whichever is less.
23        (c)  For  calculation  of  aid  under this Act a district
24    shall use the combined authorized tax rates of all funds  not
25    exempt  in (b) above, not to exceed 2.76% of the value of all
26    its  taxable  property  as  equalized  or  assessed  by   the
27    Department   of  Revenue  for  districts  maintaining  grades
28    kindergarten through 12;  1.90%  of  the  value  of  all  its
29    taxable  property  as equalized or assessed by the Department
30    of Revenue  for  districts  maintaining  grades  kindergarten
31    through  8  only;  1.10%  of  the  value  of  all its taxable
32    property as  equalized  or  assessed  by  the  Department  of
33    Revenue  for  districts maintaining grades 9 through 12 only.
34    A district may, however, as provided in Article 17,  increase
                            -9-              SDS/bill0067/jwp
 1    its  operating  tax  rate  above the maximum rate provided in
 2    this subsection without affecting the amount of State aid  to
 3    which it is entitled under this Act.
 4        (d) (1)  For  districts  maintaining  grades kindergarten
 5    through 12  with  an  operating  tax  rate  as  described  in
 6    subsections  5(b)  and  (c) of less than 2.18%, and districts
 7    maintaining grades kindergarten through 8 with  an  operating
 8    tax  rate  of less than 1.28%, State aid shall be computed by
 9    multiplying the difference between the  guaranteed  equalized
10    assessed  valuation per weighted ADA pupil in subsection 5(a)
11    and the equalized assessed valuation per weighted  ADA  pupil
12    in  the district by the operating tax rate, multiplied by the
13    weighted average daily attendance of the district;  provided,
14    however,  that  for  the 1989-1990 school year only, a school
15    district maintaining  grades  kindergarten  through  8  whose
16    operating  tax rate with reference to which its general State
17    aid for the 1989-1990 school year is determined is less  than
18    1.28%  and  more  than 1.090%, and which had an operating tax
19    rate of 1.28% or more for the previous year, shall  have  its
20    general  State  aid  computed  according to the provisions of
21    subsection 5(d)(2).
22        (2)  For  districts   maintaining   grades   kindergarten
23    through  12  with  an  operating  tax  rate  as  described in
24    subsection 5(b) and (c) of 2.18% and  above,  the  State  aid
25    shall  be  computed  as provided in subsection (d) (1) but as
26    though the district had an operating tax rate  of  2.76%;  in
27    K-8  districts with an operating tax rate of 1.28% and above,
28    the State aid shall be computed as provided in subsection (d)
29    (1) but as though the district had an operating tax  rate  of
30    1.90%; and in 9-12 districts, the State aid shall be computed
31    by   multiplying   the   difference  between  the  guaranteed
32    equalized  assessed  valuation  per  weighted  average  daily
33    attendance  pupil  in  subsection  5(a)  and  the   equalized
34    assessed  valuation  per  weighted  average  daily attendance
                            -10-             SDS/bill0067/jwp
 1    pupil in the district by  the  operating  tax  rate,  not  to
 2    exceed  1.10%,  multiplied  by  the  weighted  average  daily
 3    attendance  of  the  district.   State aid computed under the
 4    provisions of this subsection (d) (2)  shall  be  treated  as
 5    separate  from  all  other  payments  made  pursuant  to this
 6    Section.  The State Comptroller  and  State  Treasurer  shall
 7    transfer  from  the General Revenue Fund to the Common School
 8    Fund the amounts necessary to permit these claims to be  paid
 9    in  equal  installments  along  with other State aid payments
10    remaining to be made for the 1983-1984 school year under this
11    Section.
12        (3)  For  any  school  district  whose   1995   equalized
13    assessed  valuation  is  at  least  6%  less  than  its  1994
14    equalized  assessed valuation as the result of a reduction in
15    the equalized assessed  valuation  of  the  taxable  property
16    within  such  district  of  any  one  taxpayer  whose taxable
17    property within the district has a  1994  equalized  assessed
18    valuation  constituting  at  least  20% of the 1994 equalized
19    assessed  valuation  of  all  taxable  property  within   the
20    district,  the  1996-97  State  aid of such district shall be
21    computed using its 1995 equalized assessed valuation.
22        (4)  For  any  school  district  whose   1988   equalized
23    assessed  valuation  is  55%  or  less  of its 1981 equalized
24    assessed valuation, the 1990-91 State aid  of  such  district
25    shall  be computed by multiplying the 1988 equalized assessed
26    valuation by a factor of .8.  Any such school district  which
27    is  reorganized  effective  for the 1991-92 school year shall
28    use the formula provided in this subparagraph for purposes of
29    the calculation made  pursuant  to  subsection  (m)  of  this
30    Section.
31        (e)  The  amount of State aid shall be computed under the
32    provisions of subsections  5(a)  through  5(d)  provided  the
33    equalized  assessed  valuation per weighted ADA pupil is less
34    than .87 of the amounts in subsection 5(a). If the  equalized
                            -11-             SDS/bill0067/jwp
 1    assessed  valuation  per  weighted  ADA  pupil is equal to or
 2    greater than .87 of the amounts in subsection 5(a), the State
 3    aid shall be computed  under  the  provisions  of  subsection
 4    5(f).
 5        (f)  If the equalized assessed valuation per weighted ADA
 6    pupil  is  equal  to  or  greater  than .87 of the amounts in
 7    subsection 5(a), the State aid per weighted ADA  pupil  shall
 8    be  computed  by  multiplying  the  product  of .13 times the
 9    maximum per pupil amount computed  under  the  provisions  of
10    subsections  5(a)  through  5(d)  by  an  amount equal to the
11    quotient of .87 times the equalized  assessed  valuation  per
12    weighted  ADA  pupil  in  subsection  5(a)  for  that type of
13    district divided by  the  district  equalized  valuation  per
14    weighted  ADA  pupil  except  in  no  case shall the district
15    receive State aid per weighted ADA pupil  of  less  than  .07
16    times  the  maximum  per  pupil  amount  computed  under  the
17    provisions of subsections 5(a) through 5(d).
18        (g)  In  addition  to  the  above  grants,  summer school
19    grants shall be made based upon the calculation  as  provided
20    in subsection 4 of this Section.
21        (h)  The  board  of  any  district  receiving  any of the
22    grants provided for in this Section may apply those funds  to
23    any  fund  so  received for which that board is authorized to
24    make expenditures by law.
25        (i) (1) (a)  In school districts with  an  average  daily
26    attendance  of  50,000  or more, the amount which is provided
27    under subsection 1(n) of this Section by the application of a
28    base Chapter 1 weighting factor of .375 shall be  distributed
29    to  the  attendance centers within the district in proportion
30    to the number of pupils enrolled at  each  attendance  center
31    who  are eligible to receive free or reduced-price lunches or
32    breakfasts under the federal Child Nutrition Act of 1966  and
33    under  the  National  School Lunch Act during the immediately
34    preceding school year.  The  amount  of  State  aid  provided
                            -12-             SDS/bill0067/jwp
 1    under  subsection  1(n) of this Section by the application of
 2    the Chapter 1 weighting factor in excess  of  .375  shall  be
 3    distributed  to the attendance centers within the district in
 4    proportion to the total enrollment at each attendance center.
 5    Beginning with school year  1989-90,  and  each  school  year
 6    thereafter, all funds provided under subsection 1 (n) of this
 7    Section  by the application of the Chapter 1 weighting factor
 8    which are in excess of the level of  non-targeted  Chapter  1
 9    funds   in  school  year  1988-89  shall  be  distributed  to
10    attendance centers, and only to  attendance  centers,  within
11    the  district  in proportion to the number of pupils enrolled
12    at each attendance center who are eligible to receive free or
13    reduced price lunches or breakfasts under the  Federal  Child
14    Nutrition  Act and under the National School Lunch Act during
15    the immediately preceding school year.  Beginning  in  school
16    year  1989-90,  25%  of the previously non-targeted Chapter 1
17    funds as established for school year 1988-89  shall  also  be
18    distributed to the attendance centers, and only to attendance
19    centers,  in  the  district  in  proportion  to the number of
20    pupils enrolled at each attendance center who are eligible to
21    receive free or reduced price lunches or breakfasts under the
22    Federal Child Nutrition Act and  under  the  National  School
23    Lunch  Act  during  the immediately preceding school year; in
24    school year  1990-91,  50%  of  the  previously  non-targeted
25    Chapter  1 funds as established for school year 1988-89 shall
26    be distributed to attendance centers, and only to  attendance
27    centers,  in  the  district  in  proportion  to the number of
28    pupils enrolled at each attendance center who are eligible to
29    receive such free or  reduced  price  lunches  or  breakfasts
30    during  the immediately preceding school year; in school year
31    1991-92, 75% of the previously non-targeted Chapter  1  funds
32    as  established  for school year 1988-89 shall be distributed
33    to attendance centers, and only to attendance centers, in the
34    district in proportion to the number of  pupils  enrolled  at
                            -13-             SDS/bill0067/jwp
 1    each  attendance center who are eligible to receive such free
 2    or reduced price lunches or breakfasts during the immediately
 3    preceding school year; in school year 1992-93 and thereafter,
 4    all funds provided under subsection 1 (n) of this Section  by
 5    the  application  of  the Chapter 1 weighting factor shall be
 6    distributed to attendance centers,  and  only  to  attendance
 7    centers,  in  the  district  in  proportion  to the number of
 8    pupils enrolled at each attendance center who are eligible to
 9    receive free or reduced price lunches or breakfasts under the
10    Federal Child Nutrition Act and  under  the  National  School
11    Lunch  Act  during  the  immediately  preceding  school year;
12    provided, however, that the distribution  formula  in  effect
13    beginning with school year 1989-90 shall not be applicable to
14    such  portion of State aid provided under subsection 1 (n) of
15    this Section by the application of the  Chapter  1  weighting
16    formula  as  is  set  aside  and  appropriated  by the school
17    district for the purpose of providing desegregation  programs
18    and  related  transportation to students (which portion shall
19    not exceed 5% of the total  amount  of  State  aid  which  is
20    provided   under   subsection   1  (n)  of  this  Section  by
21    application of the Chapter  1  weighting  formula),  and  the
22    relevant  percentages  shall  be  applied  to  the  remaining
23    portion  of  such  State  aid.   The  distribution  of  these
24    portions  of  general  State  aid  among  attendance  centers
25    according  to these requirements shall not be compensated for
26    or contravened by adjustments of the  total  of  other  funds
27    appropriated  to  any  attendance centers.   (b) The Board of
28    Education shall utilize funding from one or  several  sources
29    in  order to fully implement this provision annually prior to
30    the opening of school.  The Board of  Education  shall  apply
31    savings  from  reduced  administrative  costs  required under
32    Section 34-43.1 and growth in non-Chapter 1 State  and  local
33    funds  to  assure that all attendance centers receive funding
34    to replace losses due to redistribution of Chapter 1 funding.
                            -14-             SDS/bill0067/jwp
 1    The distribution formula and funding to replace losses due to
 2    the distribution formula shall occur, in full, using any  and
 3    all  sources available, including, if necessary, revenue from
 4    administrative reductions beyond those  required  in  Section
 5    34-43.1,  in  order to provide the necessary funds.  (c) Each
 6    attendance center shall be provided by the school district  a
 7    distribution  of  noncategorical  funds and other categorical
 8    funds to which an attendance center is entitled under law  in
 9    order  that  the  State  aid  provided  by application of the
10    Chapter 1 weighting factor and  required  to  be  distributed
11    among  attendance  centers  according  to the requirements of
12    this  paragraph  supplements  rather   than   supplants   the
13    noncategorical  funds and other categorical funds provided by
14    the   school   district   to    the    attendance    centers.
15    Notwithstanding  the  foregoing provisions of this subsection
16    5(i)(1) or any other law to the contrary, beginning with  the
17    1995-1996  school  year  and for each school year thereafter,
18    the board of a school district to  which  the  provisions  of
19    this  subsection  apply  shall  be  required  to  allocate or
20    provide to attendance centers of the  district  in  any  such
21    school  year,  from  the  State aid provided for the district
22    under this Section by application of the Chapter 1  weighting
23    factor,  an aggregate amount of not less than $261,000,000 of
24    State Chapter 1 funds. Any State  Chapter  1  funds  that  by
25    reason  of  the provisions of this paragraph are not required
26    to be allocated and provided to  attendance  centers  may  be
27    used  and  appropriated  by the board of the district for any
28    lawful school purpose.    Chapter  1  funds  received  by  an
29    attendance   center   (except   those  funds  set  aside  for
30    desegregation  programs   and   related   transportation   to
31    students) shall be used on the schedule cited in this Section
32    at  the  attendance center at the discretion of the principal
33    and local school council for programs to improve  educational
34    opportunities  at  qualifying  schools  through the following
                            -15-             SDS/bill0067/jwp
 1    programs and services:  early  childhood  education,  reduced
 2    class  size  or  improved  adult  to student classroom ratio,
 3    enrichment   programs,   remedial   assistance,    attendance
 4    improvement  and  other educationally beneficial expenditures
 5    which supplement the regular and basic programs as determined
 6    by the State Board of Education.  Chapter 1 funds  shall  not
 7    be expended for any political or lobbying purposes as defined
 8    by board rule. (d) Each district subject to the provisions of
 9    this  paragraph  shall  submit an acceptable plan to meet the
10    educational needs of disadvantaged  children,  in  compliance
11    with  the  requirements of this paragraph, to the State Board
12    of Education prior to July 15 of each year. This  plan  shall
13    be  consistent  with  the  decisions of local school councils
14    concerning  the  school  expenditure   plans   developed   in
15    accordance  with  part  4 of Section 34-2.3.  The State Board
16    shall approve or reject the plan within  60  days  after  its
17    submission.   If the plan is rejected the district shall give
18    written notice of intent to modify the plan within 15 days of
19    the notification of rejection and then submit a modified plan
20    within 30 days after the date of the written notice of intent
21    to modify.  Districts may amend approved  plans  pursuant  to
22    rules promulgated by the State Board of Education.
23        Upon  notification  by  the State Board of Education that
24    the district has not submitted a plan prior to July 15  or  a
25    modified  plan  within  the time period specified herein, the
26    State aid funds affected by said plan or modified plan  shall
27    be  withheld  by the State Board of Education until a plan or
28    modified plan is submitted.
29        If  the  district  fails  to  distribute  State  aid   to
30    attendance  centers  in accordance with an approved plan, the
31    plan for the following year shall allocate funds, in addition
32    to the funds otherwise  required  by  this  subparagraph,  to
33    those  attendance  centers  which were underfunded during the
34    previous year in amounts equal to such underfunding.
                            -16-             SDS/bill0067/jwp
 1        For  purposes  of  determining   compliance   with   this
 2    subsection  in  relation  to  Chapter  1  expenditures,  each
 3    district  subject  to the provisions of this subsection shall
 4    submit as a separate document by December 1 of  each  year  a
 5    report  of  Chapter  1 expenditure data for the prior year in
 6    addition to any modification of its current plan.  If  it  is
 7    determined  that  there has been a failure to comply with the
 8    expenditure   provisions   of   this   subsection   regarding
 9    contravention or supplanting,  the  State  Superintendent  of
10    Education  shall,  within  60  days of receipt of the report,
11    notify the district and any affected  local  school  council.
12    The  district  shall  within  45  days  of  receipt  of  that
13    notification  inform the State Superintendent of Education of
14    the remedial or corrective action to be  taken,  whether   by
15    amendment  of the current plan, if feasible, or by adjustment
16    in the plan for the following year.  Failure to  provide  the
17    expenditure   report  or  the  notification  of  remedial  or
18    corrective action in  a  timely  manner  shall  result  in  a
19    withholding of the affected funds.
20        The  State  Board of Education shall promulgate rules and
21    regulations to implement the provisions  of  this  subsection
22    5(i)(1).  No funds shall be released under subsection 1(n) of
23    this Section or under this subsection 5(i)(1) to any district
24    which has not submitted a plan which has been approved by the
25    State Board of Education.
26        (2)  School districts with an average daily attendance of
27    more  than 1,000 and less than 50,000 and having a low income
28    pupil weighting factor in excess of .53 shall submit  a  plan
29    to  the  State Board of Education prior to October 30 of each
30    year for the use of the funds resulting from the  application
31    of  subsection  1(n)  of  this Section for the improvement of
32    instruction  in  which  priority  is  given  to  meeting  the
33    education needs of disadvantaged children.  Such  plan  shall
34    be   submitted  in  accordance  with  rules  and  regulations
                            -17-             SDS/bill0067/jwp
 1    promulgated by the State Board of Education.
 2        (j)  For the purposes of calculating State aid under this
 3    Section, with respect to any part of a school district within
 4    a  redevelopment  project  area  in  respect   to   which   a
 5    municipality  has  adopted tax increment allocation financing
 6    pursuant to the Tax Increment Allocation  Redevelopment  Act,
 7    Sections   11-74.4-1   through  11-74.4-11  of  the  Illinois
 8    Municipal Code or the Industrial Jobs Recovery Law,  Sections
 9    11-74.6-1  through 11-74.6-50 of the Illinois Municipal Code,
10    no part of the current equalized assessed valuation  of  real
11    property   located   in   any  such  project  area  which  is
12    attributable to an increase above the total initial equalized
13    assessed  valuation  of  such  property  shall  be  used   in
14    computing  the  equalized assessed valuation per weighted ADA
15    pupil in the district, until such time as  all  redevelopment
16    project   costs  have  been  paid,  as  provided  in  Section
17    11-74.4-8 of the Tax Increment Allocation  Redevelopment  Act
18    or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
19    For the purpose of computing the equalized assessed valuation
20    per  weighted  ADA  pupil  in  the district the total initial
21    equalized  assessed  valuation  or  the   current   equalized
22    assessed  valuation,  whichever is lower, shall be used until
23    such time as all redevelopment project costs have been paid.
24        (k)  For a school district operating under the  financial
25    supervision  of  an  Authority created under Article 34A, the
26    State aid otherwise  payable  to  that  district  under  this
27    Section,  other  than  State  aid  attributable  to Chapter 1
28    students, shall be reduced by an amount equal to  the  budget
29    for  the  operations  of  the  Authority  as certified by the
30    Authority to the State Board  of  Education,  and  an  amount
31    equal  to  such  reduction  shall  be  paid  to the Authority
32    created for such district for its operating expenses  in  the
33    manner  provided  in  Section  18-11.  The remainder of State
34    school aid for any such district shall be paid in  accordance
                            -18-             SDS/bill0067/jwp
 1    with Article 34A when that Article provides for a disposition
 2    other than that provided by this Article.
 3        (l)  For  purposes  of  calculating  State aid under this
 4    Section,  the  equalized  assessed  valuation  for  a  school
 5    district used to compute State aid  shall  be  determined  by
 6    adding  to the real property equalized assessed valuation for
 7    the district an amount computed by  dividing  the  amount  of
 8    money  received  by  the district under the provisions of "An
 9    Act in relation to  the  abolition  of  ad  valorem  personal
10    property  tax  and the replacement of revenues lost thereby",
11    certified August 14, 1979, by the  total  tax  rate  for  the
12    district.  For  purposes  of  this  subsection 1976 tax rates
13    shall be used for school districts in the county of Cook  and
14    1977  tax  rates  shall  be  used for school districts in all
15    other counties.
16        (m) (1)  For a new school district  formed  by  combining
17    property   included  totally  within  2  or  more  previously
18    existing school districts, for its first year of existence or
19    if the new district was formed after  October  31,  1982  and
20    prior  to  September  23,  1985,  for  the  year  immediately
21    following  September 23, 1985, the State aid calculated under
22    this Section shall be computed for the new district  and  for
23    the  previously  existing  districts  for  which  property is
24    totally included within the new district.  If the computation
25    on the basis of the previously existing districts is greater,
26    a supplementary payment equal to the difference shall be made
27    for the first 3 years of existence of the new district or  if
28    the  new district was formed after October 31, 1982 and prior
29    to September 23, 1985, for the 3 years immediately  following
30    September 23, 1985.
31        (2)  For  a  school  district  which  annexes  all of the
32    territory of one or more entire other school  districts,  for
33    the   first  year  during  which  the  change  of  boundaries
34    attributable to such annexation  becomes  effective  for  all
                            -19-             SDS/bill0067/jwp
 1    purposes  as  determined under Section 7-9 or 7A-8, the State
 2    aid calculated under this Section shall be computed  for  the
 3    annexing district as constituted after the annexation and for
 4    the  annexing  and each annexed district as constituted prior
 5    to the annexation; and if the computation on the basis of the
 6    annexing and annexed districts as constituted  prior  to  the
 7    annexation  is  greater, a supplementary payment equal to the
 8    difference shall be made for the first 3 years  of  existence
 9    of  the  annexing  school  district  as constituted upon such
10    annexation.
11        (3)  For 2 or more school districts which  annex  all  of
12    the  territory  of one or more entire other school districts,
13    and for 2 or more community unit districts which result  upon
14    the  division  (pursuant  to petition under Section 11A-2) of
15    one or more other unit school districts into 2 or more  parts
16    and  which  together include all of the parts into which such
17    other unit school district or districts are so  divided,  for
18    the   first  year  during  which  the  change  of  boundaries
19    attributable to such annexation or division becomes effective
20    for all purposes as determined under Section 7-9  or  11A-10,
21    as  the  case  may  be,  the  State aid calculated under this
22    Section shall be computed  for  each  annexing  or  resulting
23    district  as constituted after the annexation or division and
24    for each annexing and annexed district, or for each resulting
25    and divided district, as constituted prior to the  annexation
26    or  division;  and  if  the  aggregate of the State aid as so
27    computed  for  the  annexing  or   resulting   districts   as
28    constituted after the annexation or division is less than the
29    aggregate  of  the  State aid as so computed for the annexing
30    and annexed districts,  or  for  the  resulting  and  divided
31    districts,   as   constituted  prior  to  the  annexation  or
32    division,  then  a  supplementary  payment   equal   to   the
33    difference  shall  be made and allocated between or among the
34    annexing or resulting districts,  as  constituted  upon  such
                            -20-             SDS/bill0067/jwp
 1    annexation  or  division,  for  the  first  3  years of their
 2    existence.  The total difference payment shall  be  allocated
 3    between  or  among the annexing or resulting districts in the
 4    same ratio as the pupil enrollment from that portion  of  the
 5    annexed  or divided district or districts which is annexed to
 6    or included in each such annexing or resulting district bears
 7    to the total pupil enrollment  from  the  entire  annexed  or
 8    divided  district  or  districts, as such pupil enrollment is
 9    determined for the school year last ending prior to the  date
10    when  the change of boundaries attributable to the annexation
11    or division becomes effective for all purposes.   The  amount
12    of  the total difference payment and the amount thereof to be
13    allocated to the annexing or  resulting  districts  shall  be
14    computed  by  the  State  Board  of Education on the basis of
15    pupil enrollment and other data which shall be  certified  to
16    the State Board of Education, on forms which it shall provide
17    for  that  purpose, by the regional superintendent of schools
18    for each educational service region in which the annexing and
19    annexed districts, or resulting  and  divided  districts  are
20    located.
21        (4)  If  a unit school district annexes all the territory
22    of another unit school district effective  for  all  purposes
23    pursuant  to  Section 7-9 on July 1, 1988, and if part of the
24    annexed territory is detached within 90 days  after  July  1,
25    1988,  then  the detachment shall be disregarded in computing
26    the supplementary State aid payments under this paragraph (m)
27    for the entire 3 year period and the supplementary State  aid
28    payments shall not be diminished because of the detachment.
29        (5)  Any  supplementary State aid payment made under this
30    paragraph (m) shall be treated as  separate  from  all  other
31    payments made pursuant to this Section.
32        (n)  For the purposes of calculating State aid under this
33    Section, the real property equalized assessed valuation for a
34    school district used to compute State aid shall be determined
                            -21-             SDS/bill0067/jwp
 1    by  subtracting  from the real property value as equalized or
 2    assessed by the Department of Revenue  for  the  district  an
 3    amount  computed  by  dividing the amount of any abatement of
 4    taxes under Section 18-170 of the Property Tax  Code  by  the
 5    maximum  operating  tax rates specified in subsection 5(c) of
 6    this Section and an amount computed by dividing the amount of
 7    any abatement of taxes under subsection (a) of Section 18-165
 8    of the Property Tax Code by the maximum operating  tax  rates
 9    specified in subsection 5(c) of this Section.
10        (o)  Notwithstanding   any   other   provisions  of  this
11    Section, for the 1996-1997 school  year  the  amount  of  the
12    aggregate  general  State  aid  entitlement  that is received
13    under this Section by each school district  for  that  school
14    year  shall  be  not  less  than  the amount of the aggregate
15    general State  aid  entitlement  that  was  received  by  the
16    district  under  this  Section for the 1995-1996 school year.
17    If a school district is to receive an aggregate general State
18    aid entitlement under this Section for the  1996-1997  school
19    year  that  is  less than the amount of the aggregate general
20    State aid entitlement that the district received  under  this
21    Section  for  the  1995-1996 school year, the school district
22    shall also receive, from a separate  appropriation  made  for
23    purposes  of this paragraph (o), a supplementary payment that
24    is equal to  the  amount  by  which  the  general  State  aid
25    entitlement  received  by the district under this Section for
26    the 1995-1996 school  year  exceeds  the  general  State  aid
27    entitlement  that  the  district  is  to  receive  under this
28    Section for the 1996-1997 school year.
29        Notwithstanding any other provisions of this Section, for
30    the 1997-1998 school year the amount of the aggregate general
31    State aid entitlement that is received under this Section  by
32    each  school  district for that school year shall be not less
33    than  the  amount  of  the  aggregate   general   State   aid
34    entitlement  that  was  received  by  the district under this
                            -22-             SDS/bill0067/jwp
 1    Section for the 1996-1997 school year.  If a school  district
 2    is  to  receive  an  aggregate  general State aid entitlement
 3    under this Section for the 1997-1998 school year that is less
 4    than  the  amount  of  the  aggregate   general   State   aid
 5    entitlement that the district received under this Section for
 6    the  1996-1997  school  year,  the school district shall also
 7    receive, from a separate appropriation made for  purposes  of
 8    this  paragraph (o), a supplementary payment that is equal to
 9    the  amount  by  which  the  general  State  aid  entitlement
10    received by the district under this Section for the 1996-1997
11    school year exceeds the general State  aid  entitlement  that
12    the  district  is  to  receive  under  this  Section  for the
13    1997-1998 school year.
14        If the amount appropriated for supplementary payments  to
15    school districts under this paragraph (o) is insufficient for
16    that  purpose,  the supplementary payments that districts are
17    to receive under this paragraph shall be  prorated  according
18    to  the  aggregate  amount  of  the  appropriation  made  for
19    purposes of this paragraph.
20        (p)  For  the  1997-1998 school year only, a supplemental
21    general  State  aid  grant  shall  be  provided  for   school
22    districts  in an amount equal to the greater of the result of
23    part (i) of this subsection or part (ii) of this  subsection,
24    calculated as follows:
25             (i)  The  general  State  aid  received  by a school
26        district under this Section for the 1997-1998 school year
27        shall be added to the sum of (A) the result  obtained  by
28        multiplying  the  1995 equalized valuation of all taxable
29        property in the district by  the  fixed  calculation  tax
30        rates  of  3.0%  for  unit districts, 2.0% for elementary
31        districts and 1.0% for high school districts plus (B) the
32        aggregate   corporate   personal   property   replacement
33        revenues received by the district  during  the  1996-1997
34        school year.  That aggregate amount determined under this
                            -23-             SDS/bill0067/jwp
 1        part  (i)  shall  be divided by the average of the best 3
 2        months of  pupil  attendance  in  the  district  for  the
 3        1996-1997 school year. If the result obtained by dividing
 4        the  aggregate  amount  determined under this part (i) by
 5        the average of the best 3 months of pupil  attendance  in
 6        the  district  is  less  than  $3,600,  the  supplemental
 7        general  State aid grant for that district shall be equal
 8        to the amount determined by subtracting from  $3,600  the
 9        result   obtained   by   dividing  the  aggregate  amount
10        determined under this part (i) by the average of the best
11        3 months of pupil attendance  in  the  district,  and  by
12        multiplying  that difference by the average of the best 3
13        months of  pupil  attendance  in  the  district  for  the
14        1996-1997 school year.
15             (ii)  The  general  State  aid  received by a school
16        district under this Section for the 1997-1998 school year
17        shall be added to the sum of (A) the result  obtained  by
18        multiplying  the 1995 equalized assessed valuation of all
19        taxable  property  in  the  district  by  the  district's
20        applicable 1995 operating tax rate  as  defined  in  this
21        part  (ii)  plus  (B)  the  aggregate  corporate personal
22        property replacement revenues received  by  the  district
23        during  the 1996-1997 school year.  That aggregate amount
24        shall be divided by the average of the best 3  months  of
25        pupil attendance in the district for the 1996-1997 school
26        year.   If  the result obtained by dividing the aggregate
27        amount determined in this part (ii) by the average of the
28        best 3 months of pupil attendance in the district is less
29        than $4,100, the supplemental general State aid grant for
30        that district shall be equal to the amount determined  by
31        subtracting  from  the  $4,100  the  result  obtained  by
32        dividing  the  aggregate  amount  determined in this part
33        (ii) by the  average  of  the  best  3  months  of  pupil
34        attendance  in  the  district  and  by  multiplying  that
                            -24-             SDS/bill0067/jwp
 1        difference  by  the average of the best 3 months of pupil
 2        attendance in the district for the 1996-1997 school year.
 3        For the purposes of this part (ii), the "applicable  1995
 4        operating  tax  rate"  shall  mean the following: (A) for
 5        unit districts with operating tax rates of 3.00% or less,
 6        elementary districts with operating tax rates of 2.00% or
 7        less, and high school districts with operating tax  rates
 8        of  1.00% or less, the applicable 1995 operating tax rate
 9        shall be 3.00% for unit districts, 2.00%  for  elementary
10        districts,  and  1.00% for high school districts; (B) for
11        unit districts with operating tax rates of 4.50% or more,
12        elementary districts with operating tax rates of 3.00% or
13        more, and high school districts with operating tax  rates
14        of  1.85% or more, the applicable 1995 operating tax rate
15        shall be 4.50% for unit districts, 3.00%  for  elementary
16        districts,  and  1.85% for high school districts; and (C)
17        for unit districts with operating tax rates of more  than
18        3.00%  and less than 4.50%, for elementary districts with
19        operating tax rates of more  than  2.00%  and  less  than
20        3.00%,  and  for high school districts with operating tax
21        rates of  more  than  1.00%  and  less  than  1.85%,  the
22        applicable   1995   operating   tax  rate  shall  be  the
23        district's actual 1995 operating tax rate.
24        If the moneys appropriated in a separate line item by the
25    General  Assembly  to  the  State  Board  of  Education   for
26    supplementary payments required to be made and distributed to
27    school  districts  for  the  1997-1998 school year under this
28    subsection  5(p)  are  insufficient,  the   amount   of   the
29    supplementary payments required to be made and distributed to
30    those  school  districts  under  this  subsection shall abate
31    proportionately.
32        (p-5)  For the 1997-98 school year only,  a  supplemental
33    general   State  aid  grant  shall  be  provided  for  school
34    districts based on the number of low-income  eligible  pupils
                            -25-             SDS/bill0067/jwp
 1    within  the  school  district.   For  the  purposes  of  this
 2    subsection  5(p-5), "low-income eligible pupils" shall be the
 3    low-income  eligible  pupil  count  from  the  most  recently
 4    available  federal  census.  If,  however,   the   percentage
 5    decrease  from  the  2  most  recent  federal censuses in the
 6    low-income eligible pupil count of  a  high  school  district
 7    with  fewer  than  400  students  exceeds  by 75% or more the
 8    percentage change in  the  total  low-income  eligible  pupil
 9    count   of  contiguous  elementary  school  districts,  whose
10    boundaries are coterminous with that  high  school  district,
11    the  high-school  district's low-income  eligible pupil count
12    from the earlier federal census shall be used as  the  number
13    of  low-income  eligible pupils for the high school district.
14    The supplemental general State aid grant  for  each  district
15    shall  be  equal  to the number of low-income eligible pupils
16    within that district multiplied by $30.50.    If  the  moneys
17    appropriated  in a separate line item by the General Assembly
18    to the State Board of Education  for  supplementary  payments
19    required  to  be made and distributed to school districts for
20    the 1997-98 school year  under  this  subsection  5(p-5)  are
21    insufficient,   the  amount  of  the  supplementary  payments
22    required to be made and distributed to those districts  under
23    this subsection shall abate proportionately.
24        B.  In calculating the amount to be paid to the governing
25    board  of  a  public  university  that  operates a laboratory
26    school under this Section or to any alternative  school  that
27    is  operated  by  a  regional  superintendent of schools, the
28    State Board of Education shall require by rule such reporting
29    requirements as it deems necessary.
30        As used in this  Section,  "laboratory  school"  means  a
31    public  school  which  is  created  and  operated by a public
32    university and approved by the State Board of Education.  The
33    governing board of a public university which  receives  funds
34    from the State Board under this subsection B may not increase
                            -26-             SDS/bill0067/jwp
 1    the number of students enrolled in its laboratory school from
 2    a  single district, if that district is already sending 50 or
 3    more students, except under a mutual  agreement  between  the
 4    school  board  of  a  student's district of residence and the
 5    university  which  operates   the   laboratory   school.    A
 6    laboratory  school  may  not  have  more than 1,000 students,
 7    excluding students with disabilities in a  special  education
 8    program.
 9        As  used  in  this  Section, "alternative school" means a
10    public school which is created and  operated  by  a  Regional
11    Superintendent  of Schools and approved by the State Board of
12    Education. Such alternative  schools  may  offer  courses  of
13    instruction  for  which  credit  is  given  in regular school
14    programs, courses to prepare students  for  the  high  school
15    equivalency  testing  program  or vocational and occupational
16    training. A regional superintendent of schools  may  contract
17    with a school district or a public community college district
18    to  operate  an  alternative  school.   An alternative school
19    serving more than  one  educational  service  region  may  be
20    operated  under such terms as the regional superintendents of
21    schools of those educational service regions may agree.
22        Each laboratory and alternative  school  shall  file,  on
23    forms  provided  by the State Superintendent of Education, an
24    annual  State  aid  claim  which  states  the  average  daily
25    attendance of the school's students by  month.   The  best  3
26    months'  average  daily attendance shall be computed for each
27    school.  The  weighted  average  daily  attendance  shall  be
28    computed  and  the  weighted average daily attendance for the
29    school's most recent 3 year average shall be compared to  the
30    most  recent  weighted  average  daily  attendance,  and  the
31    greater of the 2 shall be used for the calculation under this
32    subsection  B.   The  general  State aid entitlement shall be
33    computed by multiplying the school's  student  count  by  the
34    foundation level as determined under this Section.
                            -27-             SDS/bill0067/jwp
 1        C.  This Section is repealed July 1, 1998.
 2    (Source: P.A.  89-15,  eff.  5-30-95;  89-235,  eff.  8-4-95;
 3    89-397,  eff.  8-20-95;  89-610,  eff.  8-6-96;  89-618, eff.
 4    8-9-96; 89-626, eff. 8-9-96; 89-679, eff. 8-16-96; 90-9, eff.
 5    7-1-97; 90-14, eff. 7-1-97;  90-548,  eff.  12-4-97;  90-566,
 6    eff. 1-2-98; revised 1-8-98.)
 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
32    from  low  income  households   are   eligible   to   receive
33    supplemental  general  State financial aid grants as provided
                            -28-             SDS/bill0067/jwp
 1    pursuant to subsection (H). The supplemental State aid grants
 2    provided for school districts under subsection (H)  shall  be
 3    appropriated  for distribution to school districts as part of
 4    the same line item in which the general State  financial  aid
 5    of school districts is appropriated under this Section.
 6        (3)  To  receive financial assistance under this Section,
 7    school districts are required to file claims with  the  State
 8    Board of Education, subject to the following requirements:
 9             (a)  Any  school  district which fails for any given
10        school year to maintain school as required by law, or  to
11        maintain  a recognized school is not eligible to file for
12        such school year any claim upon the Common  School  Fund.
13        In  case  of  nonrecognition  of  one  or more attendance
14        centers  in  a  school   district   otherwise   operating
15        recognized  schools,  the  claim of the district shall be
16        reduced  in  the  proportion  which  the  Average   Daily
17        Attendance  in  the  attendance center or centers bear to
18        the Average Daily Attendance in the school  district.   A
19        "recognized  school"  means any public school which meets
20        the standards as established for recognition by the State
21        Board of Education.   A  school  district  or  attendance
22        center  not  having  recognition  status  at the end of a
23        school term is entitled to receive State aid payments due
24        upon  a  legal  claim  which  was  filed  while  it   was
25        recognized.
26             (b)  School district claims filed under this Section
27        are subject to Sections 18-9, 18-10, and 18-12, except as
28        otherwise provided in this Section.
29             (c)  If  a  school  district  operates  a  full year
30        school under Section 10-19.1, the general  State  aid  to
31        the  school  district  shall  be  determined by the State
32        Board of Education in accordance  with  this  Section  as
33        near as may be applicable.
34             (d)  Claims  for  financial  assistance  under  this
                            -29-             SDS/bill0067/jwp
 1        Section  shall  not  be  recomputed  except  as expressly
 2        provided under this Section.
 3        (4)  Except as provided in subsections (H) and  (L),  the
 4    board  of  any  district receiving any of the grants provided
 5    for in this Section may apply those  funds  to  any  fund  so
 6    received   for   which  that  board  is  authorized  to  make
 7    expenditures by law.
 8        School districts are not  required  to  exert  a  minimum
 9    Operating  Tax  Rate in order to qualify for assistance under
10    this Section.
11        (5)  As used in this Section the  following  terms,  when
12    capitalized, shall have the meaning ascribed herein:
13             (a)  "Average  Daily  Attendance":  A count of pupil
14        attendance  in  school,  averaged  as  provided  for   in
15        subsection   (C)  and  utilized  in  deriving  per  pupil
16        financial support levels.
17             (b)  "Available Local Resources":  A computation  of
18        local  financial support, calculated on the basis Average
19        Daily Attendance and  derived  as  provided  pursuant  to
20        subsection (D).
21             (c)  "Corporate    Personal   Property   Replacement
22        Taxes":  Funds paid to local school districts pursuant to
23        "An Act in  relation  to  the  abolition  of  ad  valorem
24        personal  property  tax  and  the replacement of revenues
25        lost thereby, and amending and repealing certain Acts and
26        parts of Acts in connection therewith", certified  August
27        14, 1979, as amended (Public Act 81-1st S.S.-1).
28             (d)  "Foundation  Level":  A prescribed level of per
29        pupil financial support as  provided  for  in  subsection
30        (B).
31             (e)  "Operating  Tax  Rate":   All  school  district
32        property   taxes   extended   for  all  purposes,  except
33        community college educational purposes for the payment of
34        tuition under Section 6-1 of the Public Community College
                            -30-             SDS/bill0067/jwp
 1        Act, Bond and  Interest,  Summer  School,  Rent,  Capital
 2        Improvement, and Vocational Education Building purposes.
 3    (B)  Foundation Level.
 4        (1)  The  Foundation Level is a figure established by the
 5    State representing the minimum level of per  pupil  financial
 6    support  that  should  be  available to provide for the basic
 7    education of each pupil in Average Daily Attendance.  As  set
 8    forth  in  this  Section,  each school district is assumed to
 9    exert  a  sufficient  local  taxing  effort  such  that,   in
10    combination with the aggregate of general State financial aid
11    provided  the  district,  an  aggregate  of  State  and local
12    resources are available to meet the basic education needs  of
13    pupils in the district.
14        (2)  For  the 1998-1999 school year, the Foundation Level
15    of support is $4,225.  For the  1999-2000  school  year,  the
16    Foundation  Level  of  support  is $4,325.  For the 2000-2001
17    school year, the Foundation Level of support is $4,425.
18        (3)  For the 2001-2002 school year and each  school  year
19    thereafter, the Foundation Level of support is $4,425 or such
20    greater  amount  as  may be established by law by the General
21    Assembly.
22    (C)  Average Daily Attendance.
23        (1)  For  purposes  of  calculating  general  State   aid
24    pursuant  to  subsection  (E),  an  Average  Daily Attendance
25    figure shall  be  utilized.   The  Average  Daily  Attendance
26    figure  for formula calculation purposes shall be the monthly
27    average of the actual number of pupils in attendance of  each
28    school district, as further averaged for the best 3 months of
29    pupil  attendance for each school district.  In compiling the
30    figures for  the  number  of  pupils  in  attendance,  school
31    districts  and  the  State  Board  of  Education  shall,  for
32    purposes  of  general  State  aid funding, conform attendance
33    figures to the requirements of subsection (F).
                            -31-             SDS/bill0067/jwp
 1        (2)  The Average Daily  Attendance  figures  utilized  in
 2    subsection (E) shall be the requisite attendance data for the
 3    school  year  immediately preceding the school year for which
 4    general State aid is being calculated.
 5    (D)  Available Local Resources.
 6        (1)  For  purposes  of  calculating  general  State   aid
 7    pursuant  to  subsection  (E),  a representation of Available
 8    Local Resources per  pupil,  as  that  term  is  defined  and
 9    determined  in this subsection, shall be utilized.  Available
10    Local Resources per pupil shall include a  calculated  dollar
11    amount representing local school district revenues from local
12    property   taxes   and   from   Corporate  Personal  Property
13    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
14    Average Daily Attendance.
15        (2)  In  determining  a  school  district's  revenue from
16    local property taxes, the  State  Board  of  Education  shall
17    utilize  the  equalized  assessed  valuation  of  all taxable
18    property of each school district as of September  30  of  the
19    previous  year.   The  equalized  assessed valuation utilized
20    shall be obtained and determined as  provided  in  subsection
21    (G).
22        (3)  For school districts maintaining grades kindergarten
23    through  12,  local  property tax revenues per pupil shall be
24    calculated  as  the  product  of  the  applicable   equalized
25    assessed  valuation for the district multiplied by 3.00%, and
26    divided by the district's Average  Daily  Attendance  figure.
27    For  school districts maintaining grades kindergarten through
28    8, local property tax revenues per pupil shall be  calculated
29    as the product of the applicable equalized assessed valuation
30    for  the  district  multiplied  by  2.30%, and divided by the
31    district's  Average  Daily  Attendance  figure.   For  school
32    districts maintaining grades 9 through 12, local property tax
33    revenues per pupil shall be the applicable equalized assessed
34    valuation of the district multiplied by 1.20%, and divided by
                            -32-             SDS/bill0067/jwp
 1    the district's Average Daily Attendance figure.
 2        (4)  The Corporate Personal  Property  Replacement  Taxes
 3    paid to each school district during the calendar year 2 years
 4    before  the  calendar  year  in  which  a school year begins,
 5    divided by the  Average  Daily  Attendance  figure  for  that
 6    district,  shall  be added to the local property tax revenues
 7    per pupil as derived by the application  of  the  immediately
 8    preceding  paragraph (3).  The sum of these per pupil figures
 9    for each school district  shall  constitute  Available  Local
10    Resources  as  that term is utilized in subsection (E) in the
11    calculation of general State aid.
12    (E)  Computation of General State Aid.
13        (1)  For each school year, the amount  of  general  State
14    aid  allotted  to  a school district shall be computed by the
15    State Board of Education as provided in this subsection.
16        (2)  For any school district for  which  Available  Local
17    Resources  per  pupil  is less than the product of 0.93 times
18    the Foundation Level, general State  aid  for  that  district
19    shall  be  calculated  as  an  amount equal to the Foundation
20    Level minus Available  Local  Resources,  multiplied  by  the
21    Average Daily Attendance of the school district.
22        (3)  For  any  school  district for which Available Local
23    Resources per pupil is equal to or greater than  the  product
24    of  0.93 times the Foundation Level and less than the product
25    of 1.75 times the Foundation Level, the general State aid per
26    pupil shall be a decimal proportion of the  Foundation  Level
27    derived   using   a  linear  algorithm.   Under  this  linear
28    algorithm, the calculated general State aid per  pupil  shall
29    decline   in  direct  linear  fashion  from  0.07  times  the
30    Foundation Level for a school district with  Available  Local
31    Resources  equal  to the product of 0.93 times the Foundation
32    Level, to 0.05  times  the  Foundation  Level  for  a  school
33    district  with Available Local Resources equal to the product
34    of 1.75  times  the  Foundation  Level.   The  allocation  of
                            -33-             SDS/bill0067/jwp
 1    general  State  aid  for  school  districts  subject  to this
 2    paragraph 3 shall be the calculated  general  State  aid  per
 3    pupil  figure  multiplied  by the Average Daily Attendance of
 4    the school district.
 5        (4)  For any school district for  which  Available  Local
 6    Resources  per  pupil  equals  or exceeds the product of 1.75
 7    times the Foundation Level, the general  State  aid  for  the
 8    school  district  shall  be calculated as the product of $218
 9    multiplied by the Average  Daily  Attendance  of  the  school
10    district.
11    (F)  Compilation of Average Daily Attendance.
12        (1)  Each  school district shall, by July 1 of each year,
13    submit to the State Board of Education, on  forms  prescribed
14    by  the  State Board of Education, attendance figures for the
15    school year that began in the preceding calendar  year.   The
16    attendance  information  so  transmitted  shall  identify the
17    average daily attendance figures for each month of the school
18    year, except that any days of attendance in August  shall  be
19    added to the month of September and any days of attendance in
20    June shall be added to the month of May.
21        Except  as  otherwise  provided  in this Section, days of
22    attendance by pupils shall be counted only  for  sessions  of
23    not  less  than  5  clock  hours of school work per day under
24    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
25    personnel   or   volunteer   personnel   when   engaging   in
26    non-teaching   duties  and  supervising  in  those  instances
27    specified in subsection (a) of Section 10-22.34 and paragraph
28    10 of Section 34-18, with pupils of legal school age  and  in
29    kindergarten and grades 1 through 12.
30        Days  of attendance by tuition pupils shall be accredited
31    only to the districts that pay the tuition  to  a  recognized
32    school.
33        (2)  Days  of  attendance  by pupils of less than 5 clock
34    hours of school shall be subject to the following  provisions
                            -34-             SDS/bill0067/jwp
 1    in the compilation of Average Daily Attendance.
 2             (a)  Pupils  regularly  enrolled  in a public school
 3        for only a part of the school day may be counted  on  the
 4        basis  of  1/6 day for every class hour of instruction of
 5        40 minutes or more attended pursuant to such enrollment.
 6             (b)  Days of attendance may be  less  than  5  clock
 7        hours  on the opening and closing of the school term, and
 8        upon the first day of pupil attendance, if preceded by  a
 9        day  or  days  utilized  as  an  institute  or  teachers'
10        workshop.
11             (c)  A  session  of  4  or  more  clock hours may be
12        counted as a day of attendance upon certification by  the
13        regional   superintendent,  and  approved  by  the  State
14        Superintendent  of  Education  to  the  extent  that  the
15        district has been forced to use daily multiple sessions.
16             (d)  A session of 3  or  more  clock  hours  may  be
17        counted  as a day of attendance (1) when the remainder of
18        the school day or at least 2 hours in the evening of that
19        day is utilized for an in-service  training  program  for
20        teachers,  up  to  a maximum of 5 days per school year of
21        which a maximum of 4 days of such 5 days may be used  for
22        parent-teacher  conferences, provided a district conducts
23        an in-service training program  for  teachers  which  has
24        been  approved  by the State Superintendent of Education;
25        or, in lieu of 4 such days, 2 full days may be  used,  in
26        which  event  each  such  day  may be counted as a day of
27        attendance; and  (2)  when  days  in  addition  to  those
28        provided  in  item (1) are scheduled by a school pursuant
29        to its school improvement plan adopted under  Article  34
30        or its revised or amended school improvement plan adopted
31        under  Article 2, provided that (i) such sessions of 3 or
32        more clock  hours  are  scheduled  to  occur  at  regular
33        intervals, (ii) the remainder of the school days in which
34        such  sessions occur are utilized for in-service training
                            -35-             SDS/bill0067/jwp
 1        programs  or  other  staff  development  activities   for
 2        teachers,  and  (iii)  a  sufficient number of minutes of
 3        school work under the direct supervision of teachers  are
 4        added to the school days between such regularly scheduled
 5        sessions  to  accumulate  not  less  than  the  number of
 6        minutes by which such sessions of 3 or more  clock  hours
 7        fall  short  of 5 clock hours. Any full days used for the
 8        purposes of this paragraph shall not  be  considered  for
 9        computing  average  daily attendance.  Days scheduled for
10        in-service   training   programs,    staff    development
11        activities,   or   parent-teacher   conferences   may  be
12        scheduled  separately  for  different  grade  levels  and
13        different attendance centers of the district.
14             (e)  A session of  not  less  than  one  clock  hour
15        teaching  of  hospitalized or homebound pupils on-site or
16        by telephone to the classroom may be counted as  1/2  day
17        of  attendance,  however  these  pupils must receive 4 or
18        more clock hours of instruction to be counted for a  full
19        day of attendance.
20             (f)  A  session  of  at  least  4 clock hours may be
21        counted as a day of attendance for  first  grade  pupils,
22        and  pupils in full day kindergartens, and a session of 2
23        or more hours may be counted as 1/2 day of attendance  by
24        pupils  in  kindergartens  which  provide only 1/2 day of
25        attendance.
26             (g)  For children with disabilities  who  are  below
27        the  age of 6 years and who cannot attend 2 or more clock
28        hours  because  of  their  disability  or  immaturity,  a
29        session of not less than one clock hour may be counted as
30        1/2 day of attendance; however for  such  children  whose
31        educational needs so require a session of 4 or more clock
32        hours may be counted as a full day of attendance.
33             (h)  A  recognized  kindergarten  which provides for
34        only 1/2 day of attendance by each pupil shall  not  have
                            -36-             SDS/bill0067/jwp
 1        more  than  1/2  day  of attendance counted in any 1 day.
 2        However, kindergartens may count 2 1/2 days of attendance
 3        in any 5 consecutive school days.  When a  pupil  attends
 4        such  a  kindergarten  for  2 half days on any one school
 5        day, the pupil shall have the  following  day  as  a  day
 6        absent  from  school,  unless the school district obtains
 7        permission in writing from the  State  Superintendent  of
 8        Education.  Attendance at kindergartens which provide for
 9        a  full  day of attendance by each pupil shall be counted
10        the same as attendance by first grade pupils.   Only  the
11        first  year  of  attendance  in one kindergarten shall be
12        counted, except in  case  of  children  who  entered  the
13        kindergarten   in  their  fifth  year  whose  educational
14        development requires a second  year  of  kindergarten  as
15        determined  under  the rules and regulations of the State
16        Board of Education.
17    (G)  Equalized Assessed Valuation Data.
18        (1)  For purposes of the calculation of  Available  Local
19    Resources  required  pursuant  to  subsection  (D), the State
20    Board of  Education  shall  secure  from  the  Department  of
21    Revenue  the value as equalized or assessed by the Department
22    of Revenue of all taxable property of every  school  district
23    together with the applicable tax rate used in extending taxes
24    for  the  funds  of  the  district  as of September 30 of the
25    previous year.
26        This equalized assessed valuation, as adjusted further by
27    the requirements of this subsection, shall be utilized in the
28    calculation of Available Local Resources.
29        (2)  The equalized assessed valuation  in  paragraph  (1)
30    shall be adjusted, as applicable, in the following manner:
31             (a)  For the purposes of calculating State aid under
32        this  Section,  with  respect  to  any  part  of a school
33        district within a redevelopment project area  in  respect
34        to   which  a  municipality  has  adopted  tax  increment
                            -37-             SDS/bill0067/jwp
 1        allocation  financing  pursuant  to  the  Tax   Increment
 2        Allocation  Redevelopment Act, Sections 11-74.4-1 through
 3        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
 4        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
 5        11-74.6-50 of the Illinois Municipal Code, no part of the
 6        current equalized assessed  valuation  of  real  property
 7        located in any such project area which is attributable to
 8        an  increase  above  the total initial equalized assessed
 9        valuation of such property shall be used as part  of  the
10        equalized  assessed valuation of the district, until such
11        time as all redevelopment project costs have  been  paid,
12        as  provided  in  Section  11-74.4-8 of the Tax Increment
13        Allocation Redevelopment Act or in Section 11-74.6-35  of
14        the Industrial Jobs Recovery Law.  For the purpose of the
15        equalized  assessed  valuation of the district, the total
16        initial  equalized  assessed  valuation  or  the  current
17        equalized assessed valuation, whichever is  lower,  shall
18        be  used  until  such  time  as all redevelopment project
19        costs have been paid.
20             (b)  The real property equalized assessed  valuation
21        for  a  school  district shall be adjusted by subtracting
22        from the real property value as equalized or assessed  by
23        the  Department  of  Revenue  for  the district an amount
24        computed by dividing the amount of any abatement of taxes
25        under Section 18-170 of the Property Tax  Code  by  3.00%
26        for a district maintaining grades kindergarten through 12
27        or   by   2.30%   for   a   district  maintaining  grades
28        kindergarten through  8,  or  by  1.20%  for  a  district
29        maintaining grades 9 through 12 and adjusted by an amount
30        computed by dividing the amount of any abatement of taxes
31        under  subsection  (a)  of Section 18-165 of the Property
32        Tax Code by the same percentage rates for  district  type
33        as specified in this subparagraph (c).
34    (H)  Supplemental General State Aid.
                            -38-             SDS/bill0067/jwp
 1        (1)  In  addition  to  the  general  State  aid  a school
 2    district is allotted pursuant to subsection  (E),  qualifying
 3    school  districts  shall receive a grant, paid in conjunction
 4    with  a  district's  payments  of  general  State  aid,   for
 5    supplemental  general  State aid based upon the concentration
 6    level of  children  from  low-income  households  within  the
 7    school  district.  Supplemental State aid grants provided for
 8    school districts under this subsection shall be  appropriated
 9    for distribution to school districts as part of the same line
10    item  in  which  the  general  State  financial aid of school
11    districts is appropriated under this Section. For purposes of
12    this subsection, the term  "Low-Income  Concentration  Level"
13    shall  be  the  low-income eligible pupil count from the most
14    recently available federal  census  divided  by  the  Average
15    Daily  Attendance  of  the  school district. If, however, the
16    percentage decrease from the 2 most recent  federal  censuses
17    in  the  low-income  eligible  pupil  count  of a high school
18    district with fewer than 400 students exceeds by 75% or  more
19    the  percentage change in the total low-income eligible pupil
20    count  of  contiguous  elementary  school  districts,   whose
21    boundaries are coterminous with the high school district, the
22    high-school  district's  low-income eligible pupil count from
23    the earlier federal census shall be the number  used  as  the
24    low-income eligible pupil count for the high school district,
25    for purposes of this subsection (H).
26        (2)  Supplemental  general  State  aid  pursuant  to this
27    subsection shall be provided as follows:
28             (a)  For any  school  district  with  a  Low  Income
29        Concentration  Level  of  at least 20% and less than 35%,
30        the grant for any school year shall be $800 multiplied by
31        the low income eligible pupil count.
32             (b)  For any  school  district  with  a  Low  Income
33        Concentration  Level  of  at least 35% and less than 50%,
34        the grant for the 1998-1999 school year shall  be  $1,100
                            -39-             SDS/bill0067/jwp
 1        multiplied by the low income eligible pupil count.
 2             (c)  For  any  school  district  with  a  Low Income
 3        Concentration Level of at least 50% and  less  than  60%,
 4        the  grant  for  the  1998-99 school year shall be $1,500
 5        multiplied by the low income eligible pupil 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 low
 9        income eligible pupil count.
10             (e)  For the 1999-2000 school year,  the  per  pupil
11        amount  specified  in  subparagraphs  (b),  (c), and (d),
12        immediately above shall be increased by $100  to  $1,200,
13        $1,600, and $2,000, respectively.
14             (f)  For  the  2000-2001  school year, the per pupil
15        amounts specified  in  subparagraphs  (b),  (c)  and  (d)
16        immediately  above  shall be increased to $1,230, $1,640,
17        and $2,050, respectively.
18        (3)  School districts with an Average Daily Attendance of
19    more than  1,000  and  less  than  50,000  that  qualify  for
20    supplemental  general  State  aid pursuant to this subsection
21    shall submit a plan to the State Board of Education prior  to
22    October  30  of  each year for the use of the funds resulting
23    from this grant of supplemental general  State  aid  for  the
24    improvement  of  instruction  in  which  priority is given to
25    meeting the education needs of disadvantaged children.   Such
26    plan   shall  be  submitted  in  accordance  with  rules  and
27    regulations promulgated by the State Board of Education.
28        (4)  School districts with an Average Daily Attendance of
29    50,000 or more that qualify for  supplemental  general  State
30    aid   pursuant  to  this  subsection  shall  be  required  to
31    distribute from funds available pursuant to this Section,  no
32    less  than  $261,000,000  in  accordance  with  the following
33    requirements:
34             (a)  The required amounts shall  be  distributed  to
                            -40-             SDS/bill0067/jwp
 1        the  attendance centers within the district in proportion
 2        to the number  of  pupils  enrolled  at  each  attendance
 3        center  who are eligible to receive free or reduced-price
 4        lunches or breakfasts under the federal  Child  Nutrition
 5        Act  of  1966  and  under  the  National School Lunch Act
 6        during the immediately preceding school year.
 7             (b)  The   distribution   of   these   portions   of
 8        supplemental  and  general  State  aid  among  attendance
 9        centers according to  these  requirements  shall  not  be
10        compensated  for  or  contravened  by  adjustments of the
11        total of  other  funds  appropriated  to  any  attendance
12        centers, and the Board of Education shall utilize funding
13        from  one  or several sources in order to fully implement
14        this provision annually prior to the opening of school.
15             (c)  Each attendance center shall be provided by the
16        school district a distribution  of  noncategorical  funds
17        and other categorical funds to which an attendance center
18        is entitled under law in order that the general State aid
19        and   supplemental   general   State   aid   provided  by
20        application of this subsection  supplements  rather  than
21        supplants  the noncategorical funds and other categorical
22        funds provided by the school district to  the  attendance
23        centers.
24             (d)  Any  funds made available under this subsection
25        that by reason of the provisions of this  subsection  are
26        not  required  to be allocated and provided to attendance
27        centers may be used and appropriated by the board of  the
28        district for any lawful school purpose.
29             (e)  Funds received by an attendance center pursuant
30        to this subsection shall be used by the attendance center
31        at  the  discretion  of  the  principal  and local school
32        council for programs to improve educational opportunities
33        at qualifying schools through the following programs  and
34        services:  early  childhood education, reduced class size
                            -41-             SDS/bill0067/jwp
 1        or improved adult to student classroom ratio,  enrichment
 2        programs, remedial assistance, attendance improvement and
 3        other   educationally   beneficial   expenditures   which
 4        supplement  the  regular and basic programs as determined
 5        by the State Board of Education.   Funds  provided  shall
 6        not be expended for any political or lobbying purposes as
 7        defined by board rule.
 8             (f)  Each district subject to the provisions of this
 9        subdivision  (H)(4)  shall  submit  an acceptable plan to
10        meet the educational needs of disadvantaged children,  in
11        compliance  with  the  requirements of this paragraph, to
12        the State Board of Education prior to  July  15  of  each
13        year. This plan shall be consistent with the decisions of
14        local  school  councils concerning the school expenditure
15        plans developed in accordance  with  part  4  of  Section
16        34-2.3.  The State Board shall approve or reject the plan
17        within  60  days  after  its  submission.  If the plan is
18        rejected, the  district  shall  give  written  notice  of
19        intent   to  modify  the  plan  within  15  days  of  the
20        notification of rejection and then submit a modified plan
21        within 30 days after the date of the  written  notice  of
22        intent  to  modify.    Districts may amend approved plans
23        pursuant to rules  promulgated  by  the  State  Board  of
24        Education.
25             Upon  notification  by  the State Board of Education
26        that the district has not submitted a plan prior to  July
27        15  or  a  modified plan within the time period specified
28        herein, the State aid funds  affected  by  that  plan  or
29        modified  plan  shall  be  withheld by the State Board of
30        Education until a plan or modified plan is submitted.
31             If the district fails to  distribute  State  aid  to
32        attendance  centers  in accordance with an approved plan,
33        the plan for the following year shall allocate funds,  in
34        addition   to   the  funds  otherwise  required  by  this
                            -42-             SDS/bill0067/jwp
 1        subsection,  to  those  attendance  centers  which   were
 2        underfunded  during the previous year in amounts equal to
 3        such underfunding.
 4             For purposes of  determining  compliance  with  this
 5        subsection  in relation to the requirements of attendance
 6        center funding, each district subject to  the  provisions
 7        of this subsection shall submit as a separate document by
 8        December  1 of each year a report of expenditure data for
 9        the prior year in addition to  any  modification  of  its
10        current  plan.  If it is determined that there has been a
11        failure to comply with the expenditure provisions of this
12        subsection regarding contravention  or  supplanting,  the
13        State  Superintendent  of Education shall, within 60 days
14        of receipt of the report, notify  the  district  and  any
15        affected local school council.  The district shall within
16        45  days of receipt of that notification inform the State
17        Superintendent of Education of the remedial or corrective
18        action to be taken, whether  by amendment of the  current
19        plan,  if  feasible, or by adjustment in the plan for the
20        following  year.   Failure  to  provide  the  expenditure
21        report or the  notification  of  remedial  or  corrective
22        action  in  a timely manner shall result in a withholding
23        of the affected funds.
24             The State Board of Education shall promulgate  rules
25        and  regulations  to  implement  the  provisions  of this
26        subsection.   No  funds  shall  be  released  under  this
27        subdivision (H)(4) to any district that has not submitted
28        a plan that has been  approved  by  the  State  Board  of
29        Education.
30    (I)  General State Aid for Newly Configured School Districts.
31        (1)  For  a  new  school  district  formed  by  combining
32    property   included  totally  within  2  or  more  previously
33    existing school districts, for its first  year  of  existence
34    the  general  State  aid  and  supplemental general State aid
                            -43-             SDS/bill0067/jwp
 1    calculated under this Section shall be computed for  the  new
 2    district  and for the previously existing districts for which
 3    property is totally included within the new district.  If the
 4    computation on the basis of the previously existing districts
 5    is greater, a supplementary payment equal to  the  difference
 6    shall  be  made for the first 4 years of existence of the new
 7    district.
 8        (2)  For a school  district  which  annexes  all  of  the
 9    territory  of  one or more entire other school districts, for
10    the  first  year  during  which  the  change  of   boundaries
11    attributable  to  such  annexation  becomes effective for all
12    purposes as determined under Section 7-9 or 7A-8, the general
13    State aid and supplemental general State aid calculated under
14    this Section shall be computed for the annexing  district  as
15    constituted  after  the  annexation  and for the annexing and
16    each annexed district as constituted prior to the annexation;
17    and if the computation on  the  basis  of  the  annexing  and
18    annexed  districts  as constituted prior to the annexation is
19    greater, a supplementary  payment  equal  to  the  difference
20    shall  be  made  for  the  first  4 years of existence of the
21    annexing school district as constituted upon such annexation.
22        (3)  For 2 or more school districts which  annex  all  of
23    the  territory  of one or more entire other school districts,
24    and for 2 or more community unit districts which result  upon
25    the  division  (pursuant  to petition under Section 11A-2) of
26    one or more other unit school districts into 2 or more  parts
27    and  which  together include all of the parts into which such
28    other unit school district or districts are so  divided,  for
29    the   first  year  during  which  the  change  of  boundaries
30    attributable to such annexation or division becomes effective
31    for all purposes as determined under Section 7-9  or  11A-10,
32    as  the  case  may be, the general State aid and supplemental
33    general State aid calculated  under  this  Section  shall  be
34    computed   for   each   annexing  or  resulting  district  as
                            -44-             SDS/bill0067/jwp
 1    constituted after the annexation or  division  and  for  each
 2    annexing  and  annexed  district,  or  for each resulting and
 3    divided district, as constituted prior to the  annexation  or
 4    division;  and  if the aggregate of the general State aid and
 5    supplemental  general  State  aid  as  so  computed  for  the
 6    annexing or resulting  districts  as  constituted  after  the
 7    annexation  or  division  is  less  than the aggregate of the
 8    general State aid and supplemental general State  aid  as  so
 9    computed  for  the annexing and annexed districts, or for the
10    resulting and divided districts, as constituted prior to  the
11    annexation or division, then a supplementary payment equal to
12    the  difference  shall be made and allocated between or among
13    the annexing or resulting districts, as constituted upon such
14    annexation or division,  for  the  first  4  years  of  their
15    existence.   The  total difference payment shall be allocated
16    between or among the annexing or resulting districts  in  the
17    same  ratio  as the pupil enrollment from that portion of the
18    annexed or divided district or districts which is annexed  to
19    or included in each such annexing or resulting district bears
20    to  the  total  pupil  enrollment  from the entire annexed or
21    divided district or districts, as such  pupil  enrollment  is
22    determined  for the school year last ending prior to the date
23    when the change of boundaries attributable to the  annexation
24    or  division  becomes effective for all purposes.  The amount
25    of the total difference payment and the amount thereof to  be
26    allocated  to  the  annexing  or resulting districts shall be
27    computed by the State Board of  Education  on  the  basis  of
28    pupil  enrollment  and other data which shall be certified to
29    the State Board of Education, on forms which it shall provide
30    for that purpose, by the regional superintendent  of  schools
31    for each educational service region in which the annexing and
32    annexed  districts,  or  resulting  and divided districts are
33    located.
34        (4)  Any supplementary payment made under this subsection
                            -45-             SDS/bill0067/jwp
 1    (I) shall be treated as separate from all other payments made
 2    pursuant to this Section.
 3    (J)  Supplementary Grants in Aid.
 4        (1)  Notwithstanding  any  other   provisions   of   this
 5    Section,  the  amount  of  the aggregate general State aid in
 6    combination with supplemental general State  aid  under  this
 7    Section  for  which  each school district is eligible for the
 8    1998-1999 school year shall be no less than the amount of the
 9    aggregate general State aid entitlement that was received  by
10    the   district  under  Section  18-8  (exclusive  of  amounts
11    received under subsections 5(p) and 5(p-5) of  that  Section)
12    for  the  1997-98  school year, pursuant to the provisions of
13    that Section as it was then in effect. If a  school  district
14    qualifies  to receive a supplementary payment made under this
15    subsection (J) for the 1998-1999 school year, the  amount  of
16    the   aggregate   general   State  aid  in  combination  with
17    supplemental general State aid under this Section  which that
18    district  is  eligible  to  receive  for  each  school   year
19    subsequent to the 1998-1999 school year shall be no less than
20    the  amount  of  the  aggregate general State aid entitlement
21    that  was  received  by  the  district  under  Section   18-8
22    (exclusive  of  amounts  received  under subsections 5(p) and
23    5(p-5) of  that  Section)  for  the  1997-1998  school  year,
24    pursuant  to the provisions of that Section as it was then in
25    effect.
26        (2)  If, as provided in paragraph (1) of this  subsection
27    (J),  a school district is to receive aggregate general State
28    aid in combination with supplemental general State aid  under
29    this  Section for the 1998-99 school year, or for the 1998-99
30    school year and any subsequent school year, that in any  such
31    school  year is less than the amount of the aggregate general
32    State aid entitlement that  the  district  received  for  the
33    1997-98  school year, the school district shall also receive,
34    from a separate  appropriation  made  for  purposes  of  this
                            -46-             SDS/bill0067/jwp
 1    subsection  (J), a supplementary payment that is equal to the
 2    amount of the difference in the aggregate State  aid  figures
 3    as described in paragraph (1).
 4        (3)  If   the   amount   appropriated  for  supplementary
 5    payments to school districts under  this  subsection  (J)  is
 6    insufficient  for  that  purpose,  the supplementary payments
 7    that districts are to receive under this subsection shall  be
 8    prorated   according   to   the   aggregate   amount  of  the
 9    appropriation made for purposes of this subsection.
10    (K)  Grants to Laboratory and Alternative Schools.
11        In calculating the amount to be  paid  to  the  governing
12    board  of  a  public  university  that  operates a laboratory
13    school under this Section or to any alternative  school  that
14    is  operated by a regional superintendent, the State Board of
15    Education shall require by rule such  reporting  requirements
16    as it deems necessary.
17        As  used  in  this  Section,  "laboratory school" means a
18    public school which is  created  and  operated  by  a  public
19    university and approved by the State Board of Education.  The
20    governing  board  of a public university which receives funds
21    from the State  Board  under  this  subsection  (K)  may  not
22    increase  the  number  of students enrolled in its laboratory
23    school from a single district, if that  district  is  already
24    sending  50 or more students, except under a mutual agreement
25    between the school board of a student's district of residence
26    and the university which operates the laboratory  school.   A
27    laboratory  school  may  not  have  more than 1,000 students,
28    excluding students with disabilities in a  special  education
29    program.
30        As  used  in  this  Section, "alternative school" means a
31    public school which is created and  operated  by  a  Regional
32    Superintendent  of Schools and approved by the State Board of
33    Education. Such alternative  schools  may  offer  courses  of
34    instruction  for  which  credit  is  given  in regular school
                            -47-             SDS/bill0067/jwp
 1    programs, courses to prepare students  for  the  high  school
 2    equivalency  testing  program  or vocational and occupational
 3    training.
 4        Each laboratory and alternative  school  shall  file,  on
 5    forms  provided  by the State Superintendent of Education, an
 6    annual  State  aid  claim  which  states  the  Average  Daily
 7    Attendance of the school's students by  month.   The  best  3
 8    months'  Average  Daily Attendance shall be computed for each
 9    school. The general State aid entitlement shall  be  computed
10    by multiplying the applicable Average Daily Attendance by the
11    Foundation Level as determined under this Section.
12    (L)  Payments,   Additional   Grants   in   Aid   and   Other
13    Requirements.
14        (1)  For  a school district operating under the financial
15    supervision of an Authority created under  Article  34A,  the
16    general  State  aid  otherwise payable to that district under
17    this Section, but not the  supplemental  general  State  aid,
18    shall  be  reduced  by  an amount equal to the budget for the
19    operations of the Authority as certified by the Authority  to
20    the  State  Board  of  Education, and an amount equal to such
21    reduction shall be paid to the  Authority  created  for  such
22    district for its operating expenses in the manner provided in
23    Section 18-11.  The remainder of general State school aid for
24    any  such  district  shall be paid in accordance with Article
25    34A when that Article provides for a disposition  other  than
26    that provided by this Article.
27        (2)  Impaction.   Impaction  payments  shall  be  made as
28    provided for in Section 18-4.2.
29        (3)  Summer school.  Summer school payments shall be made
30    as provided in Section 18-4.3.
31    (M)  Education Funding Advisory Board.
32        The Education Funding Advisory Board, hereinafter in this
33    subsection (M) referred to as the "Board", is hereby created.
                            -48-             SDS/bill0067/jwp
 1    The Board shall consist of 5 members who are appointed by the
 2    Governor, by and with the advice and consent of  the  Senate.
 3    The   members  appointed  shall  include  representatives  of
 4    education, business, and  the  general  public.  One  of  the
 5    members  so  appointed shall be designated by the Governor at
 6    the time the appointment is made as the  chairperson  of  the
 7    Board.  The initial members of the Board may be appointed any
 8    time after the effective date of this amendatory Act of 1997.
 9    The regular term of each member of the Board shall be  for  4
10    years  from  the third Monday of January of the year in which
11    the term of the member's appointment is to  commence,  except
12    that  of  the  5  initial  members  appointed to serve on the
13    Board, the member who is appointed as the  chairperson  shall
14    serve  for  a  term  that commences on the date of his or her
15    appointment and expires on the third Monday of January, 2002,
16    and the remaining 4 members,  by  lots  drawn  at  the  first
17    meeting  of  the  Board  that is held after all 5 members are
18    appointed, shall determine 2 of their  number  to  serve  for
19    terms   that   commence  on  the  date  of  their  respective
20    appointments and expire on the third Monday of January, 2001,
21    and 2 of their number to serve for terms that commence on the
22    date of their respective appointments and expire on the third
23    Monday of January, 2000.  All members appointed to  serve  on
24    the  Board  shall serve until their respective successors are
25    appointed and confirmed.  Vacancies shall be  filled  in  the
26    same  manner  as  original  appointments.   If  a  vacancy in
27    membership occurs at  a  time  when  the  Senate  is  not  in
28    session,  the  Governor  shall  make  a temporary appointment
29    until the next meeting of the Senate, when he  or  she  shall
30    appoint,  by and with the advice and consent of the Senate, a
31    person to fill that membership for the  unexpired  term.   If
32    the  Senate  is  not in session when the initial appointments
33    are made, those appointments shall be made as in the case  of
34    vacancies.
                            -49-             SDS/bill0067/jwp
 1        The  Education  Funding  Advisory  Board  shall be deemed
 2    established,  and  the  initial  members  appointed  by   the
 3    Governor  to serve as members of the Board shall take office,
 4    on the date that the Governor makes his or her appointment of
 5    the fifth initial member of the Board, whether those  initial
 6    members   are   then  serving  pursuant  to  appointment  and
 7    confirmation or pursuant to temporary appointments  that  are
 8    made by the Governor as in the case of vacancies.
 9        The  State  Board  of  Education shall provide such staff
10    assistance to the Education  Funding  Advisory  Board  as  is
11    reasonably  required  for the proper performance by the Board
12    of its responsibilities.
13        For school years after the  2000-2001  school  year,  the
14    Education  Funding  Advisory  Board, in consultation with the
15    State Board  of  Education,  shall  make  recommendations  as
16    provided  in  this subsection (M) to the General Assembly for
17    the foundation level under subdivision (B)(3) of this Section
18    and for the supplemental general State aid grant level  under
19    subsection  (H)  of  this  Section  for  districts  with high
20    concentrations of children  from  poverty.   The  recommended
21    foundation  level  shall be determined based on a methodology
22    which  incorporates  the  basic  education  expenditures   of
23    low-spending  schools  exhibiting  high academic performance.
24    The  Education  Funding  Advisory  Board  shall   make   such
25    recommendations  to  the General Assembly on January 1 of odd
26    numbered years, beginning January 1, 2001.
27    (N)  General State Aid Adjustment Grant.
28        (1)  Any  school  district  subject   to   property   tax
29    extension  limitations as imposed under the provisions of the
30    Property Tax Extension Limitation Law shall  be  entitled  to
31    receive,  subject  to  the qualifications and requirements of
32    this  subsection,  a  general  State  aid  adjustment  grant.
33    Eligibility for this grant shall be determined on  an  annual
34    basis  and claims for grant payments shall be paid subject to
                            -50-             SDS/bill0067/jwp
 1    appropriations  made  specific  to  this   subsection.    For
 2    purposes  of  this  subsection the following terms shall have
 3    the following meanings:
 4        "Budget Year":  The school year for which  general  State
 5    aid is calculated and awarded under subsection (E).
 6        "Current  Year":   The  school year immediately preceding
 7    the Budget Year.
 8        "Base Tax Year":  The property  tax  levy  year  used  to
 9    calculate the Budget Year allocation of general State aid.
10        "Preceding   Tax  Year":   The  property  tax  levy  year
11    immediately preceding the Base Tax Year.
12        "Extension  Limitation   Ratio":   A   numerical   ratio,
13    certified  by  a school district's County Clerk, in which the
14    numerator  is  the  Base  Tax  Year's  tax  extension  amount
15    resulting from the Operating Tax Rate and the denominator  is
16    the  Preceding Tax Year's tax extension amount resulting from
17    the Operating Tax Rate.
18        "Operating Tax Rate": The operating tax rate  as  defined
19    in subsection (A).
20        (2)  To qualify for a general State aid adjustment grant,
21    a  school district must meet all of the following eligibility
22    criteria for each Budget Year for which a grant is claimed:
23             (a)  The Operating Tax Rate of the  school  district
24        in  the Preceding Tax Year was at least 3.00% in the case
25        of a  school  district  maintaining  grades  kindergarten
26        through  12,  at  least  2.30%  in  the  case of a school
27        district maintaining grades kindergarten through 8, or at
28        least 1.41% in the case of a school district  maintaining
29        grades 9 through 12.
30             (b)  The  Operating  Tax Rate of the school district
31        for the Base Tax Year was reduced by  the  Clerk  of  the
32        County  as  a  result of the requirements of the Property
33        Tax Extension Limitation Law.
34             (c)  The Available Local Resources per pupil of  the
                            -51-             SDS/bill0067/jwp
 1        school  district as calculated pursuant to subsection (D)
 2        using the Base Tax Year are less than the product of 1.75
 3        times the Foundation Level for the Budget Year.
 4             (d)  The school district  has  filed  a  proper  and
 5        timely  claim for a general State aid adjustment grant as
 6        required under this subsection.
 7        (3)  A claim for grant assistance under  this  subsection
 8    shall be filed with the State Board of Education on or before
 9    January  1  of  the  Current  Year for a grant for the Budget
10    Year.  The claim shall be made on  forms  prescribed  by  the
11    State Board of Education and must be accompanied by a written
12    statement from the Clerk of the County, certifying:
13             (a)  That  the school district has its extension for
14        the Base Tax Year reduced as a result of the Property Tax
15        Extension Limitation Law.
16             (b)  That the  Operating  Tax  Rate  of  the  school
17        district  for  the  Preceding  Tax  Year met the tax rate
18        requirements of subdivision (N)(2) of this Section.
19             (c)  The Extension Limitation Ratio as that term  is
20        defined in this subsection.
21        (4)  On  or  before August 1 of the Budget Year the State
22    Board of Education shall calculate, for all school  districts
23    meeting the other requirements of this subsection, the amount
24    of  the  general State aid adjustment grant, if any, that the
25    school districts are eligible to receive in the Budget  Year.
26    The amount of the general State aid adjustment grant shall be
27    calculated as follows:
28             (a)  Determine  the  school district's general State
29        aid grant for the Budget Year as provided  in  accordance
30        with the provisions of subsection (E).
31             (b)  Determine  the school district's adjusted level
32        of general State aid by utilizing in the  calculation  of
33        Available Local Resources an equalized assessed valuation
34        that is the equalized assessed valuation of the Preceding
                            -52-             SDS/bill0067/jwp
 1        Tax Year multiplied by the Extension Limitation Ratio.
 2             (c)  Subtract  the  sum  derived in subparagraph (a)
 3        from the sum derived in subparagraph (b).  If the  result
 4        is  a  positive  number, that amount shall be the general
 5        State aid adjustment grant that the district is  eligible
 6        to receive.
 7        (5)  The  State  Board  of Education shall in the Current
 8    Year, based upon claims filed in the Current Year,  recommend
 9    to  the  General  Assembly  an  appropriation  amount for the
10    general State aid adjustment grants to be made in the  Budget
11    Year.
12        (6)  Claims for general State aid adjustment grants shall
13    be  paid  in  a lump sum on or before January 1 of the Budget
14    Year only from appropriations made by  the  General  Assembly
15    expressly  for  claims under this subsection.  No such claims
16    may be paid from amounts appropriated for any  other  purpose
17    provided  for  under  this  Section.   In  the event that the
18    appropriation   for   claims   under   this   subsection   is
19    insufficient to meet all Budget Year  claims  for  a  general
20    State aid adjustment grant, the appropriation available shall
21    be  proportionately  prorated by the State Board of Education
22    amongst all districts filing for and entitled to payments.
23        (7)  The State Board of Education  shall  promulgate  the
24    required  claim  forms  and  rules necessary to implement the
25    provisions of this subsection.
26    (O)  References.
27        (1)  References in other laws to the various subdivisions
28    of Section 18-8 as that Section existed before its repeal and
29    replacement by this Section 18-8.05 shall be deemed to  refer
30    to  the  corresponding provisions of this Section 18-8.05, to
31    the extent that those references remain applicable.
32        (2)  References in other laws to State  Chapter  1  funds
33    shall  be  deemed  to refer to the supplemental general State
34    aid provided under subsection (H) of this Section.
                            -53-             SDS/bill0067/jwp
 1    (Source: P.A. 90-548, eff. 7-1-98.)
 2        Section 99.  Effective date.  This Act takes effect  upon
 3    becoming  law,  except that the changes to Section 18-8.05 of
 4    the School Code take effect July 1, 1998.

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