State of Illinois
90th General Assembly
Legislation

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90_SB1599ren

      105 ILCS 5/2-3.17a        from Ch. 122, par. 2-3.17a
          Amends the School Code.   Requires  the  State  Board  of
      Education  to  annually  cause  an  audit  to  be made of the
      financial statements of all accounts, funds,  and  moneys  of
      all  educational  service  centers  (other  than  those of an
      educational service center serving a school district  located
      in Chicago) in the same manner as such audits are made of the
      financial  statements  of  the accounts, funds, and moneys in
      the care, custody, or control  of  regional  superintendents.
      Effective immediately.
                                                     LRB9010085THpk
SB1599 Re-enrolled                             LRB9010085THpk
 1        AN ACT relating to education.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.   The  School  Code  is  amended  by  changing
 5    Sections  1A-8,  1B-8, and  2-3.17a, 2-3.66, 10-22.20, 13A-8,
 6    and 18-8.05 as follows:
 7        (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
 8        Sec. 1A-8.  Powers of the Board  in  Assisting  Districts
 9    Deemed  in  Financial  Difficulties. To promote the financial
10    integrity of school districts, the State Board  of  Education
11    shall  be  provided  the  necessary  powers  to promote sound
12    financial management and continue  operation  of  the  public
13    schools.
14        The  State Board of Education, after proper investigation
15    of a district's  financial  condition,  may  certify  that  a
16    district,  including  any district subject to Article 34A, is
17    in financial difficulty when any of the following  conditions
18    occur:
19        (1)  The  district  has issued school orders for wages as
20    permitted in Sections 8-16, 32-7.2 and 34-76 of this Code, or
21    the district has  issued  funding  bonds  to  retire  teacher
22    orders in 3 of the 5 last years;
23        (2)  The district has issued tax anticipation warrants or
24    tax  anticipation  notes  in  anticipation of a second year's
25    taxes when warrants or notes in anticipation of current  year
26    taxes are still outstanding, as authorized by Sections 17-16,
27    34-23, 34-59 and 34-63 of this Code;
28        (3)  The  district  has  for 2 consecutive years shown an
29    excess of expenditures and other financing uses over revenues
30    and other financing sources and beginning  fund  balances  on
31    its  annual  financial report for the aggregate totals of the
SB1599 Re-enrolled            -2-              LRB9010085THpk
 1    Educational, Operations and Maintenance, Transportation,  and
 2    Working Cash Funds;.
 3        (4) The district had an enrollment of no fewer than 4,000
 4    pupils  during the 1997-1998 school year, has been previously
 5    certified to be in financial difficulty and  requests  to  be
 6    recertified  as a result of continuing financial problems. No
 7    recertification  may  be  made  under  this  item  (4)  after
 8    December 31, 1999.
 9        No school district shall be certified to be in  financial
10    difficulty  by  reason  of  any  of  the  above circumstances
11    arising as a result of the failure of the county to make  any
12    distribution  of  property  tax money due the district at the
13    time such distribution is due; or  if  the  district  clearly
14    demonstrates  to  the  satisfaction  of  the  State  Board of
15    Education  at  the  time  of  its  determination  that   such
16    condition  no  longer exists. If the State Board of Education
17    certifies that a district in a city with 500,000  inhabitants
18    or  more is in financial difficulty, the State Board shall so
19    notify the Governor and the Mayor of the city  in  which  the
20    district  is  located.   The  State  Board  of  Education may
21    require school  districts  in  financial  difficulty,  except
22    those districts subject to Article 34A, to develop, adopt and
23    submit a financial plan within 45 days after certification of
24    financial  difficulty.  The financial plan shall be developed
25    according to guidelines presented  to  the  district  by  the
26    State  Board  of  Education  within 14 days of certification.
27    Such guidelines shall address the  specific  nature  of  each
28    district's financial difficulties. Any proposed budget of the
29    district shall be consistent with the financial plan approved
30    by the State Board.
31        A district certified to be in financial difficulty, other
32    than  a  district subject to Article 34A, shall report to the
33    State Board of Education at such times and in such manner  as
34    the   State  Board  may  direct,  concerning  the  district's
SB1599 Re-enrolled            -3-              LRB9010085THpk
 1    compliance with each financial  plan.  The  State  Board  may
 2    review  the  district's operations, obtain budgetary data and
 3    financial  statements,  require  the  district   to   produce
 4    reports,  and  have  access  to  any other information in the
 5    possession of the district that it deems relevant. The  State
 6    Board  may  issue  recommendations  or  directives within its
 7    powers  to  the  district  to  assure  compliance  with   the
 8    financial  plan.  The  district  shall produce such budgetary
 9    data, financial statements, reports and other information and
10    comply with such directives. If the State Board of  Education
11    determines  that  a  district  has  failed to comply with its
12    financial plan, the State  Board  of  Education  may  rescind
13    approval  of the plan and appoint a Financial Oversight Panel
14    for the district as provided in Section  1B-4.   This  action
15    shall  be taken only after the district has been given notice
16    and an opportunity  to  appear  before  the  State  Board  of
17    Education to discuss its failure to comply with its financial
18    plan.
19        No   bonds,  notes,  teachers  orders,  tax  anticipation
20    warrants or other evidences of indebtedness shall  be  issued
21    or  sold  by  a school district or be legally binding upon or
22    enforceable against a local board of education of a  district
23    certified  to be in financial difficulty unless and until the
24    financial plan required under this Section has been  approved
25    by the State Board of Education.
26        Any  financial  watch list distributed by the State Board
27    of Education pursuant to this Section shall  designate  those
28    school  districts  on the watch list that would not otherwise
29    be on the watch list were it not for the inability or refusal
30    of the State of Illinois to make timely disbursements of  any
31    payments  due  school  districts or to fully reimburse school
32    districts  for  mandated  categorical  programs  pursuant  to
33    reimbursement formulas provided in this School Code.
34    (Source: P.A. 88-555,  eff.  7-27-94;  88-618,  eff.  9-9-94;
SB1599 Re-enrolled            -4-              LRB9010085THpk
 1    89-235, eff. 8-4-95.)
 2        (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
 3        Sec.  1B-8.   There  is  created  in the State Treasury a
 4    special fund to be known as  the  School  District  Emergency
 5    Financial  Assistance Fund (the "Fund").  The School District
 6    Emergency  Financial  Assistance  Fund   shall   consist   of
 7    appropriations,   grants  from  the  federal  government  and
 8    donations from any public or private source.  Moneys  in  the
 9    Fund  may  be  appropriated  only  to the State Board for the
10    purposes of this Article.  The appropriation may be allocated
11    and expended by the State Board as grants or loans to  school
12    districts  which  are the subject of an approved petition for
13    emergency financial assistance under Section 1B-4.  From  the
14    amount allocated to each such school district the State Board
15    shall  identify  a sum sufficient to cover all approved costs
16    of  the  Financial  Oversight  Panel  established   for   the
17    respective  school  district.   If  the State Board and State
18    Superintendent  of  Education  have  not  approved  emergency
19    financial assistance in conjunction with the appointment of a
20    Financial Oversight Panel, the Panel's approved  costs  shall
21    be  paid  from  deductions  from the district's general State
22    aid.
23        The Financial Oversight Panel may prepare and  file  with
24    the  State  Superintendent a proposal for emergency financial
25    assistance for the school district  and  for  the  operations
26    budget  of the Panel.  No expenditures shall be authorized by
27    the State Superintendent until he has approved  the  proposal
28    of  the  Panel,  either as submitted or in such lesser amount
29    determined by the State Superintendent.
30        The maximum amount of an emergency  financial  assistance
31    loan which may be allocated to any school district under this
32    Article, including moneys necessary for the operations of the
33    Panel,  shall  not  exceed  $1000  times the number of pupils
SB1599 Re-enrolled            -5-              LRB9010085THpk
 1    enrolled in the school district during the school year ending
 2    June 30 prior to the date of approval by the State  Board  of
 3    the petition for emergency financial assistance, as certified
 4    to the local board and the Panel by the State Superintendent.
 5    An emergency financial assistance grant shall not exceed $250
 6    times the number of such pupils.  A district may receive both
 7    a loan and a grant.
 8        The  payment  of  an emergency State financial assistance
 9    grant or loan  shall  be  subject  to  appropriation  by  the
10    General   Assembly.   Emergency  State  financial  assistance
11    allocated and paid to a school district  under  this  Article
12    may  be  applied  to  any  fund or funds from which the local
13    board of education of that district  is  authorized  to  make
14    expenditures by law.
15        Any   emergency  financial  assistance  proposed  by  the
16    Financial  Oversight  Panel  and  approved   by   the   State
17    Superintendent may be paid in its entirety during the initial
18    year of the Panel's existence or spread in equal or declining
19    amounts  over  a  period of years not to exceed the period of
20    the Panel's existence.   All  loan  payments  made  from  the
21    School  District  Emergency  Financial  Assistance Fund for a
22    school district shall be required to be repaid,  with  simple
23    interest  over the term of the loan at a rate equal to 50% of
24    the discount rate on one-year United States Treasury Bills as
25    determined by the last auction of those one-year  bills  that
26    precedes the date on which the district's loan is approved by
27    the  State  Board  of  Education at the rate of 4%, not later
28    than the date the Financial Oversight Panel ceases to  exist.
29    The  Panel shall establish and the State Superintendent shall
30    approve the terms and conditions, including the schedule,  of
31    repayments.    The  schedule  shall  provide  for  repayments
32    commencing  July  1  of  each  year.   Repayment   shall   be
33    incorporated  into  the  annual budget of the school district
34    and may be made from any fund or funds  of  the  district  in
SB1599 Re-enrolled            -6-              LRB9010085THpk
 1    which  there  are moneys available. When moneys are repaid as
 2    provided herein they shall not be made available to the local
 3    board for further use as emergency financial assistance under
 4    this Article at any time thereafter.  All repayments required
 5    to be made by a school district  shall  be  received  by  the
 6    State  Board  and  deposited in the School District Emergency
 7    Financial Assistance Fund.
 8        In  establishing  the  terms  and  conditions   for   the
 9    repayment  obligation  of the school district the Panel shall
10    annually determine whether a separate local property tax levy
11    is required.  The board of any school  district  with  a  tax
12    rate for educational purposes for the prior year of less than
13    120%  of the maximum rate for educational purposes authorized
14    by Section 17-2 shall provide for a  separate  tax  levy  for
15    emergency  financial assistance repayment purposes.  Such tax
16    levy shall not be subject to referendum approval.  The amount
17    of the levy shall be equal to the amount  necessary  to  meet
18    the   annual   repayment   obligations  of  the  district  as
19    established by the Panel, or 20% of  the  amount  levied  for
20    educational  purposes  for the prior year, whichever is less.
21    However, no district shall be required to levy the tax if the
22    district's operating tax rate  as  determined  under  Section
23    18-8  or  18-8.05 exceeds 200% of the district's tax rate for
24    educational purposes for the prior year.
25    (Source: P.A. 90-548, eff. 1-1-98.)
26        (105 ILCS 5/2-3.17a) (from Ch. 122, par. 2-3.17a)
27        Sec. 2-3.17a.  Financial  audits.   The  State  Board  of
28    Education  shall  annually  cause  an audit to be made, as of
29    June 30, 1986 and as of June 30th of each year thereafter, of
30    the financial statements of all  accounts,  funds  and  other
31    moneys  in  the  care,  custody  or  control  of the regional
32    superintendent of schools of each educational service  region
33    in   the   State  and  of  each  educational  service  center
SB1599 Re-enrolled            -7-              LRB9010085THpk
 1    established under Section 2-3.62 of this Act  other  than  an
 2    educational  service  center  serving  a school district in a
 3    city having a population exceeding 500,000. The  audit  shall
 4    be   conducted   in   accordance   with   Generally  Accepted
 5    Governmental  Auditing  Standards  and   shall   include   an
 6    examination   of   supporting   books   and   records  and  a
 7    representative  sample  of  vouchers  for  distributions  and
 8    expenditures. On February 15, 1991, and  on  February  15  of
 9    each  year  thereafter,  the  State  Board of Education shall
10    notify the Legislative Audit Commission  in  writing  of  the
11    completion  or  of  the reasons for the noncompletion of each
12    audit required by this Section to be made as of the preceding
13    June 30. An audit report shall be  prepared  for  each  audit
14    made  pursuant  to  this  Section, and all such audit reports
15    shall be kept on file in the office of  the  State  Board  of
16    Education. Within 60 days after each audit report required to
17    be  prepared under this Section is completed, the State Board
18    of Education: (i) shall furnish a copy of such  audit  report
19    to  each  member of the General Assembly whose legislative or
20    representative district includes any part of the  educational
21    service  region  served  by  the  regional  superintendent of
22    schools with respect to whose financial statements that audit
23    report was prepared or any part of the  area  served  by  the
24    educational  service center that is the subject of the audit;
25    and (ii) shall publish  in  a  newspaper  published  in  that
26    educational  service region or area served by the educational
27    service center that is the subject of the audit a notice that
28    the audit report has  been  prepared  and  is  available  for
29    inspection during regular business hours at the office of the
30    regional   superintendent  of  schools  of  that  educational
31    service  region  or  at  the  administrative  office  of  the
32    educational service center. Each audit shall be made in  such
33    manner  as  to  determine,  and  each  audit  report shall be
34    prepared in such manner as to state:
SB1599 Re-enrolled            -8-              LRB9010085THpk
 1        (a)  The balances on hand  of  all  accounts,  funds  and
 2    other  moneys in the care, custody or control of the regional
 3    superintendent of schools or educational  service  center  at
 4    the beginning of the fiscal year being audited;
 5        (b)  the  amount of funds received during the fiscal year
 6    by source;
 7        (c)  the amount of funds distributed or otherwise paid by
 8    the regional superintendent of schools or educational service
 9    center to each school treasurer in  his  or  her  educational
10    service  region  or  area,  including  the  purpose  of  such
11    distribution  or  payment  and the fund or account from which
12    such distribution or payment is made;
13        (d)  the amounts  paid  or  otherwise  disbursed  by  the
14    regional  superintendent  of  schools  or educational service
15    center -- other than the amounts distributed or paid  by  the
16    regional  superintendent  of  schools  or educational service
17    center to school treasurers as  described  in  paragraph  (c)
18    above  --  for all other purposes and expenditures, including
19    the fund or account from which such payments or disbursements
20    are made and the purpose thereof; and
21        (e)  the balances on hand  of  all  accounts,  funds  and
22    other  moneys in the care, custody or control of the regional
23    superintendent of schools or educational  service  center  at
24    the end of the fiscal year being audited.
25        The  State  Board  of  Education  shall  adopt  rules and
26    regulations relative to the time  and  manner  by  which  the
27    regional  superintendent  of  schools  or educational service
28    center shall present for inspection or make available to  the
29    State Board of Education, or to the agents designated by such
30    Board  to  make an audit and prepare an audit report pursuant
31    to this Section, all financial  statements,  books,  records,
32    vouchers  for  distributions and expenditures, and records of
33    accounts, funds and other moneys  in  the  care,  custody  or
34    control   of   the  regional  superintendent  of  schools  or
SB1599 Re-enrolled            -9-              LRB9010085THpk
 1    educational service  center  and  required  for  purposes  of
 2    making  such  audit  and  preparing an audit and preparing an
 3    audit report.
 4        (f)  The State  Board  of  Education  shall  require  the
 5    regional   superintendent  of  schools  of  each  educational
 6    service region or administrator of each  educational  service
 7    center  to  promptly  implement  all recommendations based on
 8    audit findings resulting from a  violation  of  law  made  in
 9    audits  prepared  pursuant  to this Section, unless the State
10    Board of Education, upon review, determines, with  regard  to
11    any  such  finding, that implementation of the recommendation
12    is not appropriate.
13    (Source: P.A. 85-1389; 86-1332.)
14        (105 ILCS 5/2-3.66) (from Ch. 122, par. 2-3.66)
15        Sec. 2-3.66.  Truants' alternative and optional education
16    programs. To  establish  pilot  projects  to  offer  modified
17    instructional  programs or other services designed to prevent
18    students from dropping  out  of  school,  including  programs
19    pursuant  to  Section  2-3.41, and to serve as a part time or
20    full time option in lieu of regular school attendance and  to
21    award  grants  to local school districts, educational service
22    regions or  community  college  districts  from  appropriated
23    funds to assist districts in establishing such projects.  The
24    education  agency may operate its own program or enter into a
25    contract with another not-for-profit entity to implement  the
26    program.   The pilot projects shall allow dropouts, up to and
27    including age  21,  potential  dropouts,  including  truants,
28    uninvolved,  unmotivated and disaffected students, as defined
29    by State Board of Education rules and regulations, to enroll,
30    as  an  alternative  to  regular  school  attendance,  in  an
31    optional education program which may be established by school
32    board policy and is in conformance with rules adopted by  the
33    State  Board of Education.  Truants' Alternative and Optional
SB1599 Re-enrolled            -10-             LRB9010085THpk
 1    Education programs funded pursuant to this Section  shall  be
 2    planned   by  a  student,  the  student's  parents  or  legal
 3    guardians, unless the student  is  18  years  or  older,  and
 4    school  officials  and  shall  culminate in an individualized
 5    optional education plan.  Such plan shall focus  on  academic
 6    or  vocational  skills,  or both, and may include, but not be
 7    limited to, evening school, summer school, community  college
 8    courses,  adult  education,  preparation courses for the high
 9    school  level  test  of  General   Educational   Development,
10    vocational  training,  work  experience,  programs to enhance
11    self concept and parenting courses.  School  districts  which
12    are   awarded  grants  pursuant  to  this  Section  shall  be
13    authorized to  provide  day  care  services  to  children  of
14    students  who  are  eligible and desire to enroll in programs
15    established and funded under this Section, but only if and to
16    the extent that such day care is necessary  to  enable  those
17    eligible  students  to attend and participate in the programs
18    and courses which are conducted  pursuant  to  this  Section.
19    The  Board  shall  report on the status of the pilot projects
20    pursuant to  Section  1A-4.  School  districts  and  regional
21    offices  of  education  may  claim  general  State  aid under
22    Section 18-8.05 for students enrolled in truants' alternative
23    and optional education programs, provided that such  students
24    are  receiving  services  that  are supplemental to a program
25    leading to a high school diploma and are  otherwise  eligible
26    to be claimed for general State aid under Section 18-8.05.
27    (Source: P.A. 86-339.)
28        (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
29        Sec.  10-22.20.  Classes  for  adults  and  youths  whose
30    schooling   has   been   interrupted;  Conditions  for  State
31    reimbursement; Use of child care facilities.
32        (a)  To establish special classes for the instruction (1)
33    of persons of age 21 years or over, and (2) of  persons  less
SB1599 Re-enrolled            -11-             LRB9010085THpk
 1    than age 21 and not otherwise in attendance in public school,
 2    for  the  purpose  of  providing adults in the community, and
 3    youths  whose  schooling  has  been  interrupted,  with  such
 4    additional basic education, vocational  skill  training,  and
 5    other  instruction  as  may  be  necessary  to increase their
 6    qualifications for employment or other means of  self-support
 7    and  their ability to meet their responsibilities as citizens
 8    including  courses  of  instruction  regularly  accepted  for
 9    graduation  from  elementary  or   high   schools   and   for
10    Americanization  and  General  Educational Development Review
11    classes.
12        The board  shall  pay  the  necessary  expenses  of  such
13    classes  out of school funds of the district, including costs
14    of student transportation and such  facilities  or  provision
15    for  child-care  as  may  be necessary in the judgment of the
16    board  to  permit  maximum  utilization  of  the  courses  by
17    students with  children,  and  other  special  needs  of  the
18    students  directly related to such instruction.  The expenses
19    thus incurred shall be subject  to  State  reimbursement,  as
20    provided  in  this  Section.   The  board  may make a tuition
21    charge for persons taking instruction who are not subject  to
22    State  reimbursement,  such  tuition charge not to exceed the
23    per capita cost of such classes.
24        The cost of such instruction,  including  the  additional
25    expenses   herein  authorized,  incurred  for  recipients  of
26    financial aid under the Illinois  Public  Aid  Code,  or  for
27    persons   for  whom  education  and  training  aid  has  been
28    authorized under Section 9-8 of that Code, shall  be  assumed
29    in  its  entirety from funds appropriated by the State to the
30    State Board of Education.
31        (b)  The  State  Board  of  Education  and  the  Illinois
32    Community  College  Board  shall  annually  enter   into   an
33    interagency   agreement   to  implement  this  Section.   The
34    interagency agreement shall establish the standards  for  the
SB1599 Re-enrolled            -12-             LRB9010085THpk
 1    courses  of  instruction  reimbursed under this Section.  The
 2    State Board of Education shall supervise  the  administration
 3    of   the  programs.   The  State  Board  of  Education  shall
 4    determine  the  cost  of  instruction  in   accordance   with
 5    standards jointly established by the State Board of Education
 6    and  the Illinois Community College Board as set forth in the
 7    interagency agreement,  including  therein  other  incidental
 8    costs as herein authorized, which shall serve as the basis of
 9    State  reimbursement  in  accordance  with  the provisions of
10    this  Section.  In  the  approval   of   programs   and   the
11    determination  of the cost of instruction, the State Board of
12    Education  shall  provide  for  the  maximum  utilization  of
13    federal funds for such programs.  The  interagency  agreement
14    shall also include:
15             (1)  the development of an index of need for program
16        planning  and  for area funding allocations as defined by
17        the State Board of Education;
18             (2)  the   method   for   calculating    hours    of
19        instruction,  as defined by the State Board of Education,
20        claimable for reimbursement and a method to phase in  the
21        calculation  and  for adjusting the calculations in cases
22        where the services of a program are  interrupted  due  to
23        circumstances beyond the control of the program provider;
24             (3)  a   plan  for  the  reallocation  of  funds  to
25        increase the  amount  allocated  for  grants  based  upon
26        program performance as set forth in subsection (d) below;
27        and
28             (4)  the  development  of  standards for determining
29        grants based upon performance as set forth in  subsection
30        (d)  below and a plan for the phased-in implementation of
31        those standards.
32        For  instruction  provided  by   school   districts   and
33    community  college  districts  beginning  July  1,  1996  and
34    thereafter,  reimbursement  provided  by  the  State Board of
SB1599 Re-enrolled            -13-             LRB9010085THpk
 1    Education for classes authorized by  this  Section  shall  be
 2    provided  pursuant  to the terms of the interagency agreement
 3    from funds appropriated for the  reimbursement  criteria  set
 4    forth in subsection (c) below.
 5        (c)  Upon   the   annual   approval  of  the  interagency
 6    agreement,  reimbursement  shall  be   first   provided   for
 7    transportation,  child care services, and other special needs
 8    of the students directly related to instruction and then from
 9    the funds remaining an amount equal to  the  product  of  the
10    total  credit  hours  or units of instruction approved by the
11    State Board of Education, multiplied by the following:
12             (1)  For  adult   basic   education,   the   maximum
13        reimbursement  per credit hour or per unit of instruction
14        shall be  equal  to  the  general  state  aid  per  pupil
15        foundation  level established in subsections 5(a) through
16        5(d)  of  Section  18-8  or  subsection  (B)  of  Section
17        18-8.05, divided by 60;
18             (2)  The maximum reimbursement per  credit  hour  or
19        per  unit  of instruction in subparagraph (1) above shall
20        be weighted for students enrolled in classes  defined  as
21        vocational  skills  and  approved  by  the State Board of
22        Education by 1.25;
23             (3)  The maximum reimbursement per  credit  hour  or
24        per  unit  of instruction in subparagraph (1) above shall
25        be multiplied by .90 for  students  enrolled  in  classes
26        defined   as   adult  secondary  education  programs  and
27        approved by the State Board of Education;
28             (4)  For community  college  districts  the  maximum
29        reimbursement  per credit hour in subparagraphs (1), (2),
30        and (3)  above  shall  be  reduced  by  the  Adult  Basic
31        Education/Adult  Secondary  Education/English As A Second
32        Language credit hour grant  rate  prescribed  in  Section
33        2-16.02 of the Public Community College Act, as pro-rated
34        to the appropriation level; and
SB1599 Re-enrolled            -14-             LRB9010085THpk
 1             (5)  Programs receiving funds under the formula that
 2        was  in  effect  during  the 1994-1995 program year which
 3        continue to be approved and which generate at  least  80%
 4        of  the  hours  claimable  in  1994-95, or in the case of
 5        programs not approved in 1994-95  at  least  80%  of  the
 6        hours  claimable  in  1995-96,  shall  have  funding  for
 7        subsequent  years  based upon 100% of the 1995-96 formula
 8        funding level for 1996-97, 90%  of  the  1995-96  formula
 9        funding  level  for  1997-98,  80% of the 1995-96 formula
10        funding level for 1998-99, and 70% of the 1995-96 formula
11        funding level for 1999-2000.  For  any  approved  program
12        which  generates  less than 80% of the claimable hours in
13        its base year, the level  of  funding  pursuant  to  this
14        paragraph  shall be reduced proportionately.  Funding for
15        program years after 1999-2000 shall be  pursuant  to  the
16        interagency agreement.
17        (d)  Upon   the   annual   approval  of  the  interagency
18    agreement, the State Board of Education shall provide  grants
19    to  eligible  programs for supplemental activities to improve
20    or expand services under the Adult Education Act.    Eligible
21    programs  shall be determined based upon performance outcomes
22    of students in the programs as set forth in  the  interagency
23    agreement.
24        (e)  Reimbursement  under  this  Section shall not exceed
25    the actual costs of the approved program.
26        If  the  amount  appropriated  to  the  State  Board   of
27    Education  for  reimbursement under this Section is less than
28    the amount required under this Act, the  apportionment  shall
29    be proportionately reduced.
30        School  districts  and  community  college  districts may
31    assess students up to $3.00  per  credit  hour,  for  classes
32    other than Adult Basic Education level programs, if needed to
33    meet program costs.
34        (f)  An  education  plan  shall  be  established for each
SB1599 Re-enrolled            -15-             LRB9010085THpk
 1    adult or youth whose schooling has been interrupted  and  who
 2    is participating in the instructional programs provided under
 3    this Section.
 4        Each  school  board  and  community college shall keep an
 5    accurate and detailed account of the students assigned to and
 6    receiving instruction under this Section who are  subject  to
 7    State  reimbursement  and  shall  submit  reports of services
 8    provided commencing with fiscal year 1997 as required in  the
 9    interagency agreement.
10        For  classes authorized under this Section, a credit hour
11    or unit of  instruction  is  equal  to  15  hours  of  direct
12    instruction for students enrolled in approved adult education
13    programs  at  midterm  and  making  satisfactory progress, in
14    accordance with standards jointly established  by  the  State
15    Board  of  Education and the Illinois Community College Board
16    as set forth in the interagency agreement.
17        (g)  Upon proof submitted to the Illinois  Department  of
18    Human  Services  of the payment of all claims submitted under
19    this Section, that Department shall apply for  federal  funds
20    made  available  therefor  and  any federal funds so received
21    shall be paid into the General  Revenue  Fund  in  the  State
22    Treasury.
23        School  districts or community colleges providing classes
24    under this Section shall submit  applications  to  the  State
25    Board  of  Education  for  preapproval in accordance with the
26    standards jointly established by the State Board of Education
27    and the Illinois Community College Board as set forth in  the
28    interagency  agreement.   Payments shall be made by the State
29    Board of Education based  upon  approved  programs.   Interim
30    expenditure  reports  may  be  required by the State Board of
31    Education as set forth in the interagency agreement.    Final
32    claims for the school year shall be submitted to the regional
33    superintendents   for  transmittal  to  the  State  Board  of
34    Education as set forth in the interagency  agreement.   Final
SB1599 Re-enrolled            -16-             LRB9010085THpk
 1    adjusted payments shall be made by September 30.
 2        If  a school district or community college district fails
 3    to provide, or is providing  unsatisfactory  or  insufficient
 4    classes  under this Section, the State Board of Education may
 5    enter into agreements with public or private  educational  or
 6    other   agencies  other  than  the  public  schools  for  the
 7    establishment of such classes.
 8        (h)  If a school district or community  college  district
 9    establishes   child-care   facilities  for  the  children  of
10    participants in classes established under  this  Section,  it
11    may  extend  the use of these facilities to students who have
12    obtained employment and to other  persons  in  the  community
13    whose  children require care and supervision while the parent
14    or other person in charge of  the  children  is  employed  or
15    otherwise absent from the home during all or part of the day.
16    It may make the facilities available before and after as well
17    as  during  regular  school hours to school age and preschool
18    age children who may benefit thereby, including children  who
19    require  care  and  supervision  pending  the return of their
20    parent  or  other  person  in  charge  of  their  care   from
21    employment or other activity requiring absence from the home.
22        The  State  Board of Education shall pay to the board the
23    cost of care in  the  facilities  for  any  child  who  is  a
24    recipient  of  financial  aid  under  The Illinois Public Aid
25    Code.
26        The board may charge for care of  children  for  whom  it
27    cannot  make claim under the provisions of this Section.  The
28    charge shall not exceed per capita cost, and  to  the  extent
29    feasible,  shall  be  fixed  at  a  level  which  will permit
30    utilization by employed parents of low  or  moderate  income.
31    It  may  also  permit  any  other State or local governmental
32    agency or private  agency  providing  care  for  children  to
33    purchase care.
34        After  July  1,  1970  when  the  provisions  of  Section
SB1599 Re-enrolled            -17-             LRB9010085THpk
 1    10-20.20  become  operative  in  the  district, children in a
 2    child-care facility shall be transferred to the  kindergarten
 3    established under that Section for such portion of the day as
 4    may  be  required  for the kindergarten program, and only the
 5    prorated costs of care and training provided  in  the  Center
 6    for  the  remaining  period  shall be charged to the Illinois
 7    Department of Human Services or  other  persons  or  agencies
 8    paying for such care.
 9        (i)  The  provisions  of this Section shall also apply to
10    school districts having a population exceeding 500,000.
11        (j)  In addition to  claiming  reimbursement  under  this
12    Section,  a school district may claim general State aid under
13    Section 18-8.05 for any student under age 21 who is  enrolled
14    in  courses  accepted  for graduation from elementary or high
15    school and who otherwise meets the  requirements  of  Section
16    18-8.05.
17    (Source: P.A.  89-507,  eff.  7-1-97;  89-524,  eff. 7-19-96;
18    90-14, eff. 7-1-97; 90-548, eff. 1-1-98.)
19        (105 ILCS 5/13A-8)
20        Sec. 13A-8.  Funding.
21        (a)  The  State  of  Illinois  shall  provide   new   and
22    additional funding for the alternative school programs within
23    each educational service region and within the Chicago public
24    school  system  by  line item appropriation made to the State
25    Board of  Education  for  that  purpose.   This  money,  when
26    appropriated,    shall    be   provided   to   the   regional
27    superintendent and to the Chicago  Board  of  Education,  who
28    shall  establish  a  budget,  including  salaries,  for their
29    alternative school programs all alternative schools  in  that
30    region.   Each program shall receive funding in the amount of
31    $30,000 plus an amount based on the ratio of the region's  or
32    Chicago's  best  3 months' average daily attendance in grades
33    pre-kindergarten through 12 to the statewide totals of  these
SB1599 Re-enrolled            -18-             LRB9010085THpk
 1    amounts.   For  purposes  of  this  calculation,  the  best 3
 2    months' average daily attendance for each region  or  Chicago
 3    shall  be  calculated by adding to the best 3 months' average
 4    daily attendance the number of low-income students identified
 5    in the most recently available federal census  multiplied  by
 6    one-half  times  the  percentage of the region's or Chicago's
 7    low-income students to the State's total low-income students.
 8    The State Board of Education shall retain up to 1.1%  of  the
 9    appropriation  to  be  used  to provide technical assistance,
10    professional development, and evaluations for the programs.
11        (a-5)  Notwithstanding  any  other  provisions  of   this
12    Section,  for  the  1998-1999  fiscal  year, the total amount
13    distributed under subsection (a) for  an  alternative  school
14    program  shall  be  not  less  than the total amount that was
15    distributed under that subsection for that alternative school
16    program for the 1997-1998 fiscal  year.   If  an  alternative
17    school  program  is  to  receive  a  total distribution under
18    subsection (a) for the 1998-1999 fiscal  year  that  is  less
19    than  the  total distribution that the program received under
20    that  subsection  for  the  1997-1998   fiscal   year,   that
21    alternative   school  program  shall  also  receive,  from  a
22    separate appropriation made for purposes of  this  subsection
23    (a-5),  a  supplementary payment equal to the amount by which
24    its total distribution under subsection (a) for the 1997-1998
25    fiscal year exceeds the amount of the total distribution that
26    the alternative school program receives under that subsection
27    for the 1998-1999 fiscal year. If the amount appropriated for
28    supplementary payments to alternative school  programs  under
29    this subsection (a-5) is insufficient for that purpose, those
30    supplementary   payments   shall   be   prorated   among  the
31    alternative  school  programs  entitled  to   receive   those
32    supplementary  payments  according to the aggregate amount of
33    the appropriation made for purposes of this subsection (a-5).
34        (b)  An alternative school program shall be  entitled  to
SB1599 Re-enrolled            -19-             LRB9010085THpk
 1    receive  general  State  aid  as calculated in subsection (K)
 2    Part B of  Section  18-8.05  18-8  upon  filing  a  claim  as
 3    provided therein.  Any time that a student who is enrolled in
 4    an  alternative school program spends in work-based learning,
 5    community  service,  or  a  similar  alternative  educational
 6    setting  shall  be  included  in  determining  the  student's
 7    minimum number of clock  hours  of  daily  school  work  that
 8    constitute  a  day  of attendance for purposes of calculating
 9    general State aid.
10        (c)  An alternative school program may receive additional
11    funding from its school districts in such amount  as  may  be
12    agreed  upon  by  the  parties  and  necessary to support the
13    program.  In  addition,  an  alternative  school  program  is
14    authorized  to accept and expend gifts, legacies, and grants,
15    including but not limited to federal grants, from any  source
16    for purposes directly related to the conduct and operation of
17    the program.
18    (Source:  P.A.  89-383,  eff.  8-18-95;  89-629, eff. 8-9-96;
19    89-636,  eff.  8-9-96;  90-14,  eff.  7-1-97;  90-283,   eff.
20    7-31-97.)
21        (105 ILCS 5/18-8.05)
22        (This  Section  may contain text from a Public Act with a
23    delayed effective date.)
24        Sec. 18-8.05.  Basis for apportionment of  general  State
25    financial  aid  and  supplemental  general  State  aid to the
26    common schools for the 1998-1999 and subsequent school years.
27    (A)  General Provisions.
28        (1)  The  provisions  of  this  Section  apply   to   the
29    1998-1999 and subsequent school years.  The system of general
30    State  financial aid provided for in this Section is designed
31    to assure that, through a combination of State financial  aid
32    and  required local resources, the financial support provided
33    each pupil in Average Daily Attendance equals  or  exceeds  a
SB1599 Re-enrolled            -20-             LRB9010085THpk
 1    prescribed per pupil Foundation Level.  This formula approach
 2    imputes  a  level  of per pupil Available Local Resources and
 3    provides for the basis to calculate  a  per  pupil  level  of
 4    general  State  financial  aid  that, when added to Available
 5    Local Resources, equals or exceeds the Foundation Level.  The
 6    amount of per pupil general State financial  aid  for  school
 7    districts,   in   general,  varies  in  inverse  relation  to
 8    Available Local Resources.  Per pupil amounts are based  upon
 9    each  school district's Average Daily Attendance as that term
10    is defined in this Section.
11        (2)  In addition to general State financial  aid,  school
12    districts  with  specified levels or concentrations of pupils
13    from  low  income  households   are   eligible   to   receive
14    supplemental  general  State financial aid grants as provided
15    pursuant to subsection (H). The supplemental State aid grants
16    provided for school districts under subsection (H)  shall  be
17    appropriated  for distribution to school districts as part of
18    the same line item in which the general State  financial  aid
19    of school districts is appropriated under this Section.
20        (3)  To  receive financial assistance under this Section,
21    school districts are required to file claims with  the  State
22    Board of Education, subject to the following requirements:
23             (a)  Any  school  district which fails for any given
24        school year to maintain school as required by law, or  to
25        maintain  a recognized school is not eligible to file for
26        such school year any claim upon the Common  School  Fund.
27        In  case  of  nonrecognition  of  one  or more attendance
28        centers  in  a  school   district   otherwise   operating
29        recognized  schools,  the  claim of the district shall be
30        reduced  in  the  proportion  which  the  Average   Daily
31        Attendance  in  the  attendance center or centers bear to
32        the Average Daily Attendance in the school  district.   A
33        "recognized  school"  means any public school which meets
34        the standards as established for recognition by the State
SB1599 Re-enrolled            -21-             LRB9010085THpk
 1        Board of Education.   A  school  district  or  attendance
 2        center  not  having  recognition  status  at the end of a
 3        school term is entitled to receive State aid payments due
 4        upon  a  legal  claim  which  was  filed  while  it   was
 5        recognized.
 6             (b)  School district claims filed under this Section
 7        are subject to Sections 18-9, 18-10, and 18-12, except as
 8        otherwise provided in this Section.
 9             (c)  If  a  school  district  operates  a  full year
10        school under Section 10-19.1, the general  State  aid  to
11        the  school  district  shall  be  determined by the State
12        Board of Education in accordance  with  this  Section  as
13        near as may be applicable.
14             (d)  Claims  for  financial  assistance  under  this
15        Section  shall  not  be  recomputed  except  as expressly
16        provided under this Section.
17        (4)  Except as provided in subsections (H) and  (L),  the
18    board  of  any  district receiving any of the grants provided
19    for in this Section may apply those  funds  to  any  fund  so
20    received   for   which  that  board  is  authorized  to  make
21    expenditures by law.
22        School districts are not  required  to  exert  a  minimum
23    Operating  Tax  Rate in order to qualify for assistance under
24    this Section.
25        (5)  As used in this Section the  following  terms,  when
26    capitalized, shall have the meaning ascribed herein:
27             (a)  "Average  Daily  Attendance":  A count of pupil
28        attendance  in  school,  averaged  as  provided  for   in
29        subsection   (C)  and  utilized  in  deriving  per  pupil
30        financial support levels.
31             (b)  "Available Local Resources":  A computation  of
32        local  financial support, calculated on the basis Average
33        Daily Attendance and  derived  as  provided  pursuant  to
34        subsection (D).
SB1599 Re-enrolled            -22-             LRB9010085THpk
 1             (c)  "Corporate    Personal   Property   Replacement
 2        Taxes":  Funds paid to local school districts pursuant to
 3        "An Act in  relation  to  the  abolition  of  ad  valorem
 4        personal  property  tax  and  the replacement of revenues
 5        lost thereby, and amending and repealing certain Acts and
 6        parts of Acts in connection therewith", certified  August
 7        14, 1979, as amended (Public Act 81-1st S.S.-1).
 8             (d)  "Foundation  Level":  A prescribed level of per
 9        pupil financial support as  provided  for  in  subsection
10        (B).
11             (e)  "Operating  Tax  Rate":   All  school  district
12        property   taxes   extended   for  all  purposes,  except
13        community college educational purposes for the payment of
14        tuition under Section 6-1 of the Public Community College
15        Act, Bond and  Interest,  Summer  School,  Rent,  Capital
16        Improvement, and Vocational Education Building purposes.
17    (B)  Foundation Level.
18        (1)  The  Foundation Level is a figure established by the
19    State representing the minimum level of per  pupil  financial
20    support  that  should  be  available to provide for the basic
21    education of each pupil in Average Daily Attendance.  As  set
22    forth  in  this  Section,  each school district is assumed to
23    exert  a  sufficient  local  taxing  effort  such  that,   in
24    combination with the aggregate of general State financial aid
25    provided  the  district,  an  aggregate  of  State  and local
26    resources are available to meet the basic education needs  of
27    pupils in the district.
28        (2)  For  the 1998-1999 school year, the Foundation Level
29    of support is $4,225.  For the  1999-2000  school  year,  the
30    Foundation  Level  of  support  is $4,325.  For the 2000-2001
31    school year, the Foundation Level of support is $4,425.
32        (3)  For the 2001-2002 school year and each  school  year
33    thereafter, the Foundation Level of support is $4,425 or such
34    greater  amount  as  may be established by law by the General
SB1599 Re-enrolled            -23-             LRB9010085THpk
 1    Assembly.
 2    (C)  Average Daily Attendance.
 3        (1)  For  purposes  of  calculating  general  State   aid
 4    pursuant  to  subsection  (E),  an  Average  Daily Attendance
 5    figure shall  be  utilized.   The  Average  Daily  Attendance
 6    figure  for formula calculation purposes shall be the monthly
 7    average of the actual number of pupils in attendance of  each
 8    school district, as further averaged for the best 3 months of
 9    pupil  attendance for each school district.  In compiling the
10    figures for  the  number  of  pupils  in  attendance,  school
11    districts  and  the  State  Board  of  Education  shall,  for
12    purposes  of  general  State  aid funding, conform attendance
13    figures to the requirements of subsection (F).
14        (2)  The Average Daily  Attendance  figures  utilized  in
15    subsection (E) shall be the requisite attendance data for the
16    school  year  immediately preceding the school year for which
17    general State aid is being calculated.
18    (D)  Available Local Resources.
19        (1)  For  purposes  of  calculating  general  State   aid
20    pursuant  to  subsection  (E),  a representation of Available
21    Local Resources per  pupil,  as  that  term  is  defined  and
22    determined  in this subsection, shall be utilized.  Available
23    Local Resources per pupil shall include a  calculated  dollar
24    amount representing local school district revenues from local
25    property   taxes   and   from   Corporate  Personal  Property
26    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
27    Average Daily Attendance.
28        (2)  In  determining  a  school  district's  revenue from
29    local property taxes, the  State  Board  of  Education  shall
30    utilize  the  equalized  assessed  valuation  of  all taxable
31    property of each school district as of September  30  of  the
32    previous  year.   The  equalized  assessed valuation utilized
33    shall be obtained and determined as  provided  in  subsection
SB1599 Re-enrolled            -24-             LRB9010085THpk
 1    (G).
 2        (3)  For school districts maintaining grades kindergarten
 3    through  12,  local  property tax revenues per pupil shall be
 4    calculated  as  the  product  of  the  applicable   equalized
 5    assessed  valuation for the district multiplied by 3.00%, and
 6    divided by the district's Average  Daily  Attendance  figure.
 7    For  school districts maintaining grades kindergarten through
 8    8, local property tax revenues per pupil shall be  calculated
 9    as the product of the applicable equalized assessed valuation
10    for  the  district  multiplied  by  2.30%, and divided by the
11    district's  Average  Daily  Attendance  figure.   For  school
12    districts maintaining grades 9 through 12, local property tax
13    revenues per pupil shall be the applicable equalized assessed
14    valuation of the district multiplied by 1.20%, and divided by
15    the district's Average Daily Attendance figure.
16        (4)  The Corporate Personal  Property  Replacement  Taxes
17    paid to each school district during the calendar year 2 years
18    before  the  calendar  year  in  which  a school year begins,
19    divided by the  Average  Daily  Attendance  figure  for  that
20    district,  shall  be added to the local property tax revenues
21    per pupil as derived by the application  of  the  immediately
22    preceding  paragraph (3).  The sum of these per pupil figures
23    for each school district  shall  constitute  Available  Local
24    Resources  as  that term is utilized in subsection (E) in the
25    calculation of general State aid.
26    (E)  Computation of General State Aid.
27        (1)  For each school year, the amount  of  general  State
28    aid  allotted  to  a school district shall be computed by the
29    State Board of Education as provided in this subsection.
30        (2)  For any school district for  which  Available  Local
31    Resources  per  pupil  is less than the product of 0.93 times
32    the Foundation Level, general State  aid  for  that  district
33    shall  be  calculated  as  an  amount equal to the Foundation
34    Level minus Available  Local  Resources,  multiplied  by  the
SB1599 Re-enrolled            -25-             LRB9010085THpk
 1    Average Daily Attendance of the school district.
 2        (3)  For  any  school  district for which Available Local
 3    Resources per pupil is equal to or greater than  the  product
 4    of  0.93 times the Foundation Level and less than the product
 5    of 1.75 times the Foundation Level, the general State aid per
 6    pupil shall be a decimal proportion of the  Foundation  Level
 7    derived   using   a  linear  algorithm.   Under  this  linear
 8    algorithm, the calculated general State aid per  pupil  shall
 9    decline   in  direct  linear  fashion  from  0.07  times  the
10    Foundation Level for a school district with  Available  Local
11    Resources  equal  to the product of 0.93 times the Foundation
12    Level, to 0.05  times  the  Foundation  Level  for  a  school
13    district  with Available Local Resources equal to the product
14    of 1.75  times  the  Foundation  Level.   The  allocation  of
15    general  State  aid  for  school  districts  subject  to this
16    paragraph 3 shall be the calculated  general  State  aid  per
17    pupil  figure  multiplied  by the Average Daily Attendance of
18    the school district.
19        (4)  For any school district for  which  Available  Local
20    Resources  per  pupil  equals  or exceeds the product of 1.75
21    times the Foundation Level, the general  State  aid  for  the
22    school  district  shall  be calculated as the product of $218
23    multiplied by the Average  Daily  Attendance  of  the  school
24    district.
25    (F)  Compilation of Average Daily Attendance.
26        (1)  Each  school district shall, by July 1 of each year,
27    submit to the State Board of Education, on  forms  prescribed
28    by  the  State Board of Education, attendance figures for the
29    school year that began in the preceding calendar  year.   The
30    attendance  information  so  transmitted  shall  identify the
31    average daily attendance figures for each month of the school
32    year, except that any days of attendance in August  shall  be
33    added to the month of September and any days of attendance in
34    June shall be added to the month of May.
SB1599 Re-enrolled            -26-             LRB9010085THpk
 1        Except  as  otherwise  provided  in this Section, days of
 2    attendance by pupils shall be counted only  for  sessions  of
 3    not  less  than  5  clock  hours of school work per day under
 4    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 5    personnel   or   volunteer   personnel   when   engaging   in
 6    non-teaching   duties  and  supervising  in  those  instances
 7    specified in subsection (a) of Section 10-22.34 and paragraph
 8    10 of Section 34-18, with pupils of legal school age  and  in
 9    kindergarten and grades 1 through 12.
10        Days  of attendance by tuition pupils shall be accredited
11    only to the districts that pay the tuition  to  a  recognized
12    school.
13        (2)  Days  of  attendance  by pupils of less than 5 clock
14    hours of school shall be subject to the following  provisions
15    in the compilation of Average Daily Attendance.
16             (a)  Pupils  regularly  enrolled  in a public school
17        for only a part of the school day may be counted  on  the
18        basis  of  1/6 day for every class hour of instruction of
19        40 minutes or more attended pursuant to such enrollment.
20             (b)  Days of attendance may be  less  than  5  clock
21        hours  on the opening and closing of the school term, and
22        upon the first day of pupil attendance, if preceded by  a
23        day  or  days  utilized  as  an  institute  or  teachers'
24        workshop.
25             (c)  A  session  of  4  or  more  clock hours may be
26        counted as a day of attendance upon certification by  the
27        regional   superintendent,  and  approved  by  the  State
28        Superintendent  of  Education  to  the  extent  that  the
29        district has been forced to use daily multiple sessions.
30             (d)  A session of 3  or  more  clock  hours  may  be
31        counted  as a day of attendance (1) when the remainder of
32        the school day or at least 2 hours in the evening of that
33        day is utilized for an in-service  training  program  for
34        teachers,  up  to  a maximum of 5 days per school year of
SB1599 Re-enrolled            -27-             LRB9010085THpk
 1        which a maximum of 4 days of such 5 days may be used  for
 2        parent-teacher  conferences, provided a district conducts
 3        an in-service training program  for  teachers  which  has
 4        been  approved  by the State Superintendent of Education;
 5        or, in lieu of 4 such days, 2 full days may be  used,  in
 6        which  event  each  such  day  may be counted as a day of
 7        attendance; and  (2)  when  days  in  addition  to  those
 8        provided  in  item (1) are scheduled by a school pursuant
 9        to its school improvement plan adopted under  Article  34
10        or its revised or amended school improvement plan adopted
11        under  Article 2, provided that (i) such sessions of 3 or
12        more clock  hours  are  scheduled  to  occur  at  regular
13        intervals, (ii) the remainder of the school days in which
14        such  sessions occur are utilized for in-service training
15        programs  or  other  staff  development  activities   for
16        teachers,  and  (iii)  a  sufficient number of minutes of
17        school work under the direct supervision of teachers  are
18        added to the school days between such regularly scheduled
19        sessions  to  accumulate  not  less  than  the  number of
20        minutes by which such sessions of 3 or more  clock  hours
21        fall  short  of 5 clock hours. Any full days used for the
22        purposes of this paragraph shall not  be  considered  for
23        computing  average  daily attendance.  Days scheduled for
24        in-service   training   programs,    staff    development
25        activities,   or   parent-teacher   conferences   may  be
26        scheduled  separately  for  different  grade  levels  and
27        different attendance centers of the district.
28             (e)  A session of  not  less  than  one  clock  hour
29        teaching  of  hospitalized or homebound pupils on-site or
30        by telephone to the classroom may be counted as  1/2  day
31        of  attendance,  however  these  pupils must receive 4 or
32        more clock hours of instruction to be counted for a  full
33        day of attendance.
34             (f)  A  session  of  at  least  4 clock hours may be
SB1599 Re-enrolled            -28-             LRB9010085THpk
 1        counted as a day of attendance for  first  grade  pupils,
 2        and  pupils in full day kindergartens, and a session of 2
 3        or more hours may be counted as 1/2 day of attendance  by
 4        pupils  in  kindergartens  which  provide only 1/2 day of
 5        attendance.
 6             (g)  For children with disabilities  who  are  below
 7        the  age of 6 years and who cannot attend 2 or more clock
 8        hours  because  of  their  disability  or  immaturity,  a
 9        session of not less than one clock hour may be counted as
10        1/2 day of attendance; however for  such  children  whose
11        educational needs so require a session of 4 or more clock
12        hours may be counted as a full day of attendance.
13             (h)  A  recognized  kindergarten  which provides for
14        only 1/2 day of attendance by each pupil shall  not  have
15        more  than  1/2  day  of attendance counted in any 1 day.
16        However, kindergartens may count 2 1/2 days of attendance
17        in any 5 consecutive school days.  When a  pupil  attends
18        such  a  kindergarten  for  2 half days on any one school
19        day, the pupil shall have the  following  day  as  a  day
20        absent  from  school,  unless the school district obtains
21        permission in writing from the  State  Superintendent  of
22        Education.  Attendance at kindergartens which provide for
23        a  full  day of attendance by each pupil shall be counted
24        the same as attendance by first grade pupils.   Only  the
25        first  year  of  attendance  in one kindergarten shall be
26        counted, except in  case  of  children  who  entered  the
27        kindergarten   in  their  fifth  year  whose  educational
28        development requires a second  year  of  kindergarten  as
29        determined  under  the rules and regulations of the State
30        Board of Education.
31    (G)  Equalized Assessed Valuation Data.
32        (1)  For purposes of the calculation of  Available  Local
33    Resources  required  pursuant  to  subsection  (D), the State
34    Board of  Education  shall  secure  from  the  Department  of
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 1    Revenue  the value as equalized or assessed by the Department
 2    of Revenue of all taxable property of every  school  district
 3    together with the applicable tax rate used in extending taxes
 4    for  the  funds  of  the  district  as of September 30 of the
 5    previous year.
 6        This equalized assessed valuation, as adjusted further by
 7    the requirements of this subsection, shall be utilized in the
 8    calculation of Available Local Resources.
 9        (2)  The equalized assessed valuation  in  paragraph  (1)
10    shall be adjusted, as applicable, in the following manner:
11             (a)  For the purposes of calculating State aid under
12        this  Section,  with  respect  to  any  part  of a school
13        district within a redevelopment project area  in  respect
14        to   which  a  municipality  has  adopted  tax  increment
15        allocation  financing  pursuant  to  the  Tax   Increment
16        Allocation  Redevelopment Act, Sections 11-74.4-1 through
17        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
18        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
19        11-74.6-50 of the Illinois Municipal Code, no part of the
20        current equalized assessed  valuation  of  real  property
21        located in any such project area which is attributable to
22        an  increase  above  the total initial equalized assessed
23        valuation of such property shall be used as part  of  the
24        equalized  assessed valuation of the district, until such
25        time as all redevelopment project costs have  been  paid,
26        as  provided  in  Section  11-74.4-8 of the Tax Increment
27        Allocation Redevelopment Act or in Section 11-74.6-35  of
28        the Industrial Jobs Recovery Law.  For the purpose of the
29        equalized  assessed  valuation of the district, the total
30        initial  equalized  assessed  valuation  or  the  current
31        equalized assessed valuation, whichever is  lower,  shall
32        be  used  until  such  time  as all redevelopment project
33        costs have been paid.
34             (b)  The real property equalized assessed  valuation
SB1599 Re-enrolled            -30-             LRB9010085THpk
 1        for  a  school  district shall be adjusted by subtracting
 2        from the real property value as equalized or assessed  by
 3        the  Department  of  Revenue  for  the district an amount
 4        computed by dividing the amount of any abatement of taxes
 5        under Section 18-170 of the Property Tax  Code  by  3.00%
 6        for a district maintaining grades kindergarten through 12
 7        or   by   2.30%   for   a   district  maintaining  grades
 8        kindergarten through  8,  or  by  1.20%  for  a  district
 9        maintaining grades 9 through 12 and adjusted by an amount
10        computed by dividing the amount of any abatement of taxes
11        under  subsection  (a)  of Section 18-165 of the Property
12        Tax Code by the same percentage rates for  district  type
13        as specified in this subparagraph (c).
14    (H)  Supplemental General State Aid.
15        (1)  In  addition  to  the  general  State  aid  a school
16    district is allotted pursuant to subsection  (E),  qualifying
17    school  districts  shall receive a grant, paid in conjunction
18    with  a  district's  payments  of  general  State  aid,   for
19    supplemental  general  State aid based upon the concentration
20    level of  children  from  low-income  households  within  the
21    school  district.  Supplemental State aid grants provided for
22    school districts under this subsection shall be  appropriated
23    for distribution to school districts as part of the same line
24    item  in  which  the  general  State  financial aid of school
25    districts is appropriated under this Section. For purposes of
26    this subsection, the term  "Low-Income  Concentration  Level"
27    shall  be  the  low-income eligible pupil count from the most
28    recently available federal  census  divided  by  the  Average
29    Daily Attendance of the school district.
30        (2)  Supplemental  general  State  aid  pursuant  to this
31    subsection shall be provided as follows:
32             (a)  For any  school  district  with  a  Low  Income
33        Concentration  Level  of  at least 20% and less than 35%,
34        the grant for any school year shall be $800 multiplied by
SB1599 Re-enrolled            -31-             LRB9010085THpk
 1        the low income eligible pupil count.
 2             (b)  For any  school  district  with  a  Low  Income
 3        Concentration  Level  of  at least 35% and less than 50%,
 4        the grant for the 1998-1999 school year shall  be  $1,100
 5        multiplied by the low income eligible pupil count.
 6             (c)  For  any  school  district  with  a  Low Income
 7        Concentration Level of at least 50% and  less  than  60%,
 8        the  grant  for  the  1998-99 school year shall be $1,500
 9        multiplied by the low income eligible pupil count.
10             (d)  For any  school  district  with  a  Low  Income
11        Concentration  Level  of  60%  or more, the grant for the
12        1998-99 school year shall be $1,900 multiplied by the low
13        income eligible pupil count.
14             (e)  For the 1999-2000 school year,  the  per  pupil
15        amount  specified  in  subparagraphs  (b),  (c), and (d),
16        immediately above shall be increased by $100  to  $1,200,
17        $1,600, and $2,000, respectively.
18             (f)  For  the  2000-2001  school year, the per pupil
19        amounts specified  in  subparagraphs  (b),  (c)  and  (d)
20        immediately  above  shall be increased to $1,230, $1,640,
21        and $2,050, respectively.
22        (3)  School districts with an Average Daily Attendance of
23    more than  1,000  and  less  than  50,000  that  qualify  for
24    supplemental  general  State  aid pursuant to this subsection
25    shall submit a plan to the State Board of Education prior  to
26    October  30  of  each year for the use of the funds resulting
27    from this grant of supplemental general  State  aid  for  the
28    improvement  of  instruction  in  which  priority is given to
29    meeting the education needs of disadvantaged children.   Such
30    plan   shall  be  submitted  in  accordance  with  rules  and
31    regulations promulgated by the State Board of Education.
32        (4)  School districts with an Average Daily Attendance of
33    50,000 or more that qualify for  supplemental  general  State
34    aid   pursuant  to  this  subsection  shall  be  required  to
SB1599 Re-enrolled            -32-             LRB9010085THpk
 1    distribute from funds available pursuant to this Section,  no
 2    less  than  $261,000,000  in  accordance  with  the following
 3    requirements:
 4             (a)  The required amounts shall  be  distributed  to
 5        the  attendance centers within the district in proportion
 6        to the number  of  pupils  enrolled  at  each  attendance
 7        center  who are eligible to receive free or reduced-price
 8        lunches or breakfasts under the federal  Child  Nutrition
 9        Act  of  1966  and  under  the  National School Lunch Act
10        during the immediately preceding school year.
11             (b)  The   distribution   of   these   portions   of
12        supplemental  and  general  State  aid  among  attendance
13        centers according to  these  requirements  shall  not  be
14        compensated  for  or  contravened  by  adjustments of the
15        total of  other  funds  appropriated  to  any  attendance
16        centers, and the Board of Education shall utilize funding
17        from  one  or several sources in order to fully implement
18        this provision annually prior to the opening of school.
19             (c)  Each attendance center shall be provided by the
20        school district a distribution  of  noncategorical  funds
21        and other categorical funds to which an attendance center
22        is entitled under law in order that the general State aid
23        and   supplemental   general   State   aid   provided  by
24        application of this subsection  supplements  rather  than
25        supplants  the noncategorical funds and other categorical
26        funds provided by the school district to  the  attendance
27        centers.
28             (d)  Any  funds made available under this subsection
29        that by reason of the provisions of this  subsection  are
30        not  required  to be allocated and provided to attendance
31        centers may be used and appropriated by the board of  the
32        district for any lawful school purpose.
33             (e)  Funds received by an attendance center pursuant
34        to this subsection shall be used by the attendance center
SB1599 Re-enrolled            -33-             LRB9010085THpk
 1        at  the  discretion  of  the  principal  and local school
 2        council for programs to improve educational opportunities
 3        at qualifying schools through the following programs  and
 4        services:  early  childhood education, reduced class size
 5        or improved adult to student classroom ratio,  enrichment
 6        programs, remedial assistance, attendance improvement and
 7        other   educationally   beneficial   expenditures   which
 8        supplement  the  regular and basic programs as determined
 9        by the State Board of Education.   Funds  provided  shall
10        not be expended for any political or lobbying purposes as
11        defined by board rule.
12             (f)  Each district subject to the provisions of this
13        subdivision  (H)(4)  shall  submit  an acceptable plan to
14        meet the educational needs of disadvantaged children,  in
15        compliance  with  the  requirements of this paragraph, to
16        the State Board of Education prior to  July  15  of  each
17        year. This plan shall be consistent with the decisions of
18        local  school  councils concerning the school expenditure
19        plans developed in accordance  with  part  4  of  Section
20        34-2.3.  The State Board shall approve or reject the plan
21        within  60  days  after  its  submission.  If the plan is
22        rejected, the  district  shall  give  written  notice  of
23        intent   to  modify  the  plan  within  15  days  of  the
24        notification of rejection and then submit a modified plan
25        within 30 days after the date of the  written  notice  of
26        intent  to  modify.    Districts may amend approved plans
27        pursuant to rules  promulgated  by  the  State  Board  of
28        Education.
29             Upon  notification  by  the State Board of Education
30        that the district has not submitted a plan prior to  July
31        15  or  a  modified plan within the time period specified
32        herein, the State aid funds  affected  by  that  plan  or
33        modified  plan  shall  be  withheld by the State Board of
34        Education until a plan or modified plan is submitted.
SB1599 Re-enrolled            -34-             LRB9010085THpk
 1             If the district fails to  distribute  State  aid  to
 2        attendance  centers  in accordance with an approved plan,
 3        the plan for the following year shall allocate funds,  in
 4        addition   to   the  funds  otherwise  required  by  this
 5        subsection,  to  those  attendance  centers  which   were
 6        underfunded  during the previous year in amounts equal to
 7        such underfunding.
 8             For purposes of  determining  compliance  with  this
 9        subsection  in relation to the requirements of attendance
10        center funding, each district subject to  the  provisions
11        of this subsection shall submit as a separate document by
12        December  1 of each year a report of expenditure data for
13        the prior year in addition to  any  modification  of  its
14        current  plan.  If it is determined that there has been a
15        failure to comply with the expenditure provisions of this
16        subsection regarding contravention  or  supplanting,  the
17        State  Superintendent  of Education shall, within 60 days
18        of receipt of the report, notify  the  district  and  any
19        affected local school council.  The district shall within
20        45  days of receipt of that notification inform the State
21        Superintendent of Education of the remedial or corrective
22        action to be taken, whether  by amendment of the  current
23        plan,  if  feasible, or by adjustment in the plan for the
24        following  year.   Failure  to  provide  the  expenditure
25        report or the  notification  of  remedial  or  corrective
26        action  in  a timely manner shall result in a withholding
27        of the affected funds.
28             The State Board of Education shall promulgate  rules
29        and  regulations  to  implement  the  provisions  of this
30        subsection.   No  funds  shall  be  released  under  this
31        subdivision (H)(4) to any district that has not submitted
32        a plan that has been  approved  by  the  State  Board  of
33        Education.
34    (I)  General State Aid for Newly Configured School Districts.
SB1599 Re-enrolled            -35-             LRB9010085THpk
 1        (1)  For  a  new  school  district  formed  by  combining
 2    property   included  totally  within  2  or  more  previously
 3    existing school districts, for its first  year  of  existence
 4    the  general  State  aid  and  supplemental general State aid
 5    calculated under this Section shall be computed for  the  new
 6    district  and for the previously existing districts for which
 7    property is totally included within the new district.  If the
 8    computation on the basis of the previously existing districts
 9    is greater, a supplementary payment equal to  the  difference
10    shall  be  made for the first 4 years of existence of the new
11    district.
12        (2)  For a school  district  which  annexes  all  of  the
13    territory  of  one or more entire other school districts, for
14    the  first  year  during  which  the  change  of   boundaries
15    attributable  to  such  annexation  becomes effective for all
16    purposes as determined under Section 7-9 or 7A-8, the general
17    State aid and supplemental general State aid calculated under
18    this Section shall be computed for the annexing  district  as
19    constituted  after  the  annexation  and for the annexing and
20    each annexed district as constituted prior to the annexation;
21    and if the computation on  the  basis  of  the  annexing  and
22    annexed  districts  as constituted prior to the annexation is
23    greater, a supplementary  payment  equal  to  the  difference
24    shall  be  made  for  the  first  4 years of existence of the
25    annexing school district as constituted upon such annexation.
26        (3)  For 2 or more school districts which  annex  all  of
27    the  territory  of one or more entire other school districts,
28    and for 2 or more community unit districts which result  upon
29    the  division  (pursuant  to petition under Section 11A-2) of
30    one or more other unit school districts into 2 or more  parts
31    and  which  together include all of the parts into which such
32    other unit school district or districts are so  divided,  for
33    the   first  year  during  which  the  change  of  boundaries
34    attributable to such annexation or division becomes effective
SB1599 Re-enrolled            -36-             LRB9010085THpk
 1    for all purposes as determined under Section 7-9  or  11A-10,
 2    as  the  case  may be, the general State aid and supplemental
 3    general State aid calculated  under  this  Section  shall  be
 4    computed   for   each   annexing  or  resulting  district  as
 5    constituted after the annexation or  division  and  for  each
 6    annexing  and  annexed  district,  or  for each resulting and
 7    divided district, as constituted prior to the  annexation  or
 8    division;  and  if the aggregate of the general State aid and
 9    supplemental  general  State  aid  as  so  computed  for  the
10    annexing or resulting  districts  as  constituted  after  the
11    annexation  or  division  is  less  than the aggregate of the
12    general State aid and supplemental general State  aid  as  so
13    computed  for  the annexing and annexed districts, or for the
14    resulting and divided districts, as constituted prior to  the
15    annexation or division, then a supplementary payment equal to
16    the  difference  shall be made and allocated between or among
17    the annexing or resulting districts, as constituted upon such
18    annexation or division,  for  the  first  4  years  of  their
19    existence.   The  total difference payment shall be allocated
20    between or among the annexing or resulting districts  in  the
21    same  ratio  as the pupil enrollment from that portion of the
22    annexed or divided district or districts which is annexed  to
23    or included in each such annexing or resulting district bears
24    to  the  total  pupil  enrollment  from the entire annexed or
25    divided district or districts, as such  pupil  enrollment  is
26    determined  for the school year last ending prior to the date
27    when the change of boundaries attributable to the  annexation
28    or  division  becomes effective for all purposes.  The amount
29    of the total difference payment and the amount thereof to  be
30    allocated  to  the  annexing  or resulting districts shall be
31    computed by the State Board of  Education  on  the  basis  of
32    pupil  enrollment  and other data which shall be certified to
33    the State Board of Education, on forms which it shall provide
34    for that purpose, by the regional superintendent  of  schools
SB1599 Re-enrolled            -37-             LRB9010085THpk
 1    for each educational service region in which the annexing and
 2    annexed  districts,  or  resulting  and divided districts are
 3    located.
 4        (4)  Any supplementary payment made under this subsection
 5    (I) shall be treated as separate from all other payments made
 6    pursuant to this Section.
 7    (J)  Supplementary Grants in Aid.
 8        (1)  Notwithstanding  any  other   provisions   of   this
 9    Section,  the  amount  of  the aggregate general State aid in
10    combination with supplemental general State  aid  under  this
11    Section  for  which  each school district is eligible for the
12    1998-1999 school year shall be no less than the amount of the
13    aggregate general State aid entitlement that was received  by
14    the   district  under  Section  18-8  (exclusive  of  amounts
15    received under subsections 5(p) and 5(p-5) of  that  Section)
16    for  the  1997-98  school year, pursuant to the provisions of
17    that Section as it was then in effect. If a  school  district
18    qualifies  to receive a supplementary payment made under this
19    subsection (J) for the 1998-1999 school year, the  amount  of
20    the   aggregate   general   State  aid  in  combination  with
21    supplemental general State aid under this Section  which that
22    district  is  eligible  to  receive  for  each  school   year
23    subsequent to the 1998-1999 school year shall be no less than
24    the  amount  of  the  aggregate general State aid entitlement
25    that  was  received  by  the  district  under  Section   18-8
26    (exclusive  of  amounts  received  under subsections 5(p) and
27    5(p-5) of  that  Section)  for  the  1997-1998  school  year,
28    pursuant  to the provisions of that Section as it was then in
29    effect.
30        (2)  If, as provided in paragraph (1) of this  subsection
31    (J),  a school district is to receive aggregate general State
32    aid in combination with supplemental general State aid  under
33    this  Section for the 1998-99 school year, or for the 1998-99
34    school year and any subsequent school year, that in any  such
SB1599 Re-enrolled            -38-             LRB9010085THpk
 1    school  year is less than the amount of the aggregate general
 2    State aid entitlement that  the  district  received  for  the
 3    1997-98  school year, the school district shall also receive,
 4    from a separate  appropriation  made  for  purposes  of  this
 5    subsection  (J), a supplementary payment that is equal to the
 6    amount of the difference in the aggregate State  aid  figures
 7    as described in paragraph (1).
 8        (3)  If   the   amount   appropriated  for  supplementary
 9    payments to school districts under  this  subsection  (J)  is
10    insufficient  for  that  purpose,  the supplementary payments
11    that districts are to receive under this subsection shall  be
12    prorated   according   to   the   aggregate   amount  of  the
13    appropriation made for purposes of this subsection.
14    (K)  Grants to Laboratory and Alternative Schools.
15        In calculating the amount to be  paid  to  the  governing
16    board  of  a  public  university  that  operates a laboratory
17    school under this Section or to any alternative  school  that
18    is  operated by a regional superintendent, the State Board of
19    Education shall require by rule such  reporting  requirements
20    as it deems necessary.
21        As  used  in  this  Section,  "laboratory school" means a
22    public school which is  created  and  operated  by  a  public
23    university and approved by the State Board of Education.  The
24    governing  board  of a public university which receives funds
25    from the State  Board  under  this  subsection  (K)  may  not
26    increase  the  number  of students enrolled in its laboratory
27    school from a single district, if that  district  is  already
28    sending  50 or more students, except under a mutual agreement
29    between the school board of a student's district of residence
30    and the university which operates the laboratory  school.   A
31    laboratory  school  may  not  have  more than 1,000 students,
32    excluding students with disabilities in a  special  education
33    program.
34        As  used  in  this  Section, "alternative school" means a
SB1599 Re-enrolled            -39-             LRB9010085THpk
 1    public school which is created and  operated  by  a  Regional
 2    Superintendent  of Schools and approved by the State Board of
 3    Education. Such alternative  schools  may  offer  courses  of
 4    instruction  for  which  credit  is  given  in regular school
 5    programs, courses to prepare students  for  the  high  school
 6    equivalency  testing  program  or vocational and occupational
 7    training. A  regional  superintendent  may  contract  with  a
 8    school  district  or  a  public community college district to
 9    operate an alternative school.  An alternative school serving
10    more than one educational service region may  be  established
11    by  the regional superintendents of those educational service
12    regions.
13        Each laboratory and alternative  school  shall  file,  on
14    forms  provided  by the State Superintendent of Education, an
15    annual  State  aid  claim  which  states  the  Average  Daily
16    Attendance of the school's students by  month.   The  best  3
17    months'  Average  Daily Attendance shall be computed for each
18    school. The general State aid entitlement shall  be  computed
19    by multiplying the applicable Average Daily Attendance by the
20    Foundation Level as determined under this Section.
21    (L)  Payments,   Additional   Grants   in   Aid   and   Other
22    Requirements.
23        (1)  For  a school district operating under the financial
24    supervision of an Authority created under  Article  34A,  the
25    general  State  aid  otherwise payable to that district under
26    this Section, but not the  supplemental  general  State  aid,
27    shall  be  reduced  by  an amount equal to the budget for the
28    operations of the Authority as certified by the Authority  to
29    the  State  Board  of  Education, and an amount equal to such
30    reduction shall be paid to the  Authority  created  for  such
31    district for its operating expenses in the manner provided in
32    Section 18-11.  The remainder of general State school aid for
33    any  such  district  shall be paid in accordance with Article
34    34A when that Article provides for a disposition  other  than
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 1    that provided by this Article.
 2        (2)  Impaction.   Impaction  payments  shall  be  made as
 3    provided for in Section 18-4.2.
 4        (3)  Summer school.  Summer school payments shall be made
 5    as provided in Section 18-4.3.
 6    (M)  Education Funding Advisory Board.
 7        The Education Funding Advisory Board, hereinafter in this
 8    subsection (M) referred to as the "Board", is hereby created.
 9    The Board shall consist of 5 members who are appointed by the
10    Governor, by and with the advice and consent of  the  Senate.
11    The   members  appointed  shall  include  representatives  of
12    education, business, and  the  general  public.  One  of  the
13    members  so  appointed shall be designated by the Governor at
14    the time the appointment is made as the  chairperson  of  the
15    Board.  The initial members of the Board may be appointed any
16    time after the effective date of this amendatory Act of 1997.
17    The regular term of each member of the Board shall be  for  4
18    years  from  the third Monday of January of the year in which
19    the term of the member's appointment is to  commence,  except
20    that  of  the  5  initial  members  appointed to serve on the
21    Board, the member who is appointed as the  chairperson  shall
22    serve  for  a  term  that commences on the date of his or her
23    appointment and expires on the third Monday of January, 2002,
24    and the remaining 4 members,  by  lots  drawn  at  the  first
25    meeting  of  the  Board  that is held after all 5 members are
26    appointed, shall determine 2 of their  number  to  serve  for
27    terms   that   commence  on  the  date  of  their  respective
28    appointments and expire on the third Monday of January, 2001,
29    and 2 of their number to serve for terms that commence on the
30    date of their respective appointments and expire on the third
31    Monday of January, 2000.  All members appointed to  serve  on
32    the  Board  shall serve until their respective successors are
33    appointed and confirmed.  Vacancies shall be  filled  in  the
34    same  manner  as  original  appointments.   If  a  vacancy in
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 1    membership occurs at  a  time  when  the  Senate  is  not  in
 2    session,  the  Governor  shall  make  a temporary appointment
 3    until the next meeting of the Senate, when he  or  she  shall
 4    appoint,  by and with the advice and consent of the Senate, a
 5    person to fill that membership for the  unexpired  term.   If
 6    the  Senate  is  not in session when the initial appointments
 7    are made, those appointments shall be made as in the case  of
 8    vacancies.
 9        The  Education  Funding  Advisory  Board  shall be deemed
10    established,  and  the  initial  members  appointed  by   the
11    Governor  to serve as members of the Board shall take office,
12    on the date that the Governor makes his or her appointment of
13    the fifth initial member of the Board, whether those  initial
14    members   are   then  serving  pursuant  to  appointment  and
15    confirmation or pursuant to temporary appointments  that  are
16    made by the Governor as in the case of vacancies.
17        The  State  Board  of  Education shall provide such staff
18    assistance to the Education  Funding  Advisory  Board  as  is
19    reasonably  required  for the proper performance by the Board
20    of its responsibilities.
21        For school years after the  2000-2001  school  year,  the
22    Education  Funding  Advisory  Board, in consultation with the
23    State Board  of  Education,  shall  make  recommendations  as
24    provided  in  this subsection (M) to the General Assembly for
25    the foundation level under subdivision (B)(3) of this Section
26    and for the supplemental general State aid grant level  under
27    subsection  (H)  of  this  Section  for  districts  with high
28    concentrations of children  from  poverty.   The  recommended
29    foundation  level  shall be determined based on a methodology
30    which  incorporates  the  basic  education  expenditures   of
31    low-spending  schools  exhibiting  high academic performance.
32    The  Education  Funding  Advisory  Board  shall   make   such
33    recommendations  to  the General Assembly on January 1 of odd
34    numbered years, beginning January 1, 2001.
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 1    (N)  General State Aid Adjustment Grant.
 2        (1)  Any  school  district  subject   to   property   tax
 3    extension  limitations as imposed under the provisions of the
 4    Property Tax Extension Limitation Law shall  be  entitled  to
 5    receive,  subject  to  the qualifications and requirements of
 6    this  subsection,  a  general  State  aid  adjustment  grant.
 7    Eligibility for this grant shall be determined on  an  annual
 8    basis  and claims for grant payments shall be paid subject to
 9    appropriations  made  specific  to  this   subsection.    For
10    purposes  of  this  subsection the following terms shall have
11    the following meanings:
12        "Budget Year":  The school year for which  general  State
13    aid is calculated and awarded under subsection (E).
14        "Current  Year":   The  school year immediately preceding
15    the Budget Year.
16        "Base Tax Year":  The property  tax  levy  year  used  to
17    calculate the Budget Year allocation of general State aid.
18        "Preceding   Tax  Year":   The  property  tax  levy  year
19    immediately preceding the Base Tax Year.
20        "Extension  Limitation   Ratio":   A   numerical   ratio,
21    certified  by  a school district's County Clerk, in which the
22    numerator  is  the  Base  Tax  Year's  tax  extension  amount
23    resulting from the Operating Tax Rate and the denominator  is
24    the  Preceding Tax Year's tax extension amount resulting from
25    the Operating Tax Rate.
26        "Operating Tax Rate": The operating tax rate  as  defined
27    in subsection (A).
28        (2)  To qualify for a general State aid adjustment grant,
29    a  school district must meet all of the following eligibility
30    criteria for each Budget Year for which a grant is claimed:
31             (a)  The Operating Tax Rate of the  school  district
32        in  the Preceding Tax Year was at least 3.00% in the case
33        of a  school  district  maintaining  grades  kindergarten
34        through  12,  at  least  2.30%  in  the  case of a school
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 1        district maintaining grades kindergarten through 8, or at
 2        least 1.41% in the case of a school district  maintaining
 3        grades 9 through 12.
 4             (b)  The  Operating  Tax Rate of the school district
 5        for the Base Tax Year was reduced by  the  Clerk  of  the
 6        County  as  a  result of the requirements of the Property
 7        Tax Extension Limitation Law.
 8             (c)  The Available Local Resources per pupil of  the
 9        school  district as calculated pursuant to subsection (D)
10        using the Base Tax Year are less than the product of 1.75
11        times the Foundation Level for the Budget Year.
12             (d)  The school district  has  filed  a  proper  and
13        timely  claim for a general State aid adjustment grant as
14        required under this subsection.
15        (3)  A claim for grant assistance under  this  subsection
16    shall be filed with the State Board of Education on or before
17    January  1  of  the  Current  Year for a grant for the Budget
18    Year.  The claim shall be made on  forms  prescribed  by  the
19    State Board of Education and must be accompanied by a written
20    statement from the Clerk of the County, certifying:
21             (a)  That  the school district has its extension for
22        the Base Tax Year reduced as a result of the Property Tax
23        Extension Limitation Law.
24             (b)  That the  Operating  Tax  Rate  of  the  school
25        district  for  the  Preceding  Tax  Year met the tax rate
26        requirements of subdivision (N)(2) of this Section.
27             (c)  The Extension Limitation Ratio as that term  is
28        defined in this subsection.
29        (4)  On  or  before August 1 of the Budget Year the State
30    Board of Education shall calculate, for all school  districts
31    meeting the other requirements of this subsection, the amount
32    of  the  general State aid adjustment grant, if any, that the
33    school districts are eligible to receive in the Budget  Year.
34    The amount of the general State aid adjustment grant shall be
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 1    calculated as follows:
 2             (a)  Determine  the  school district's general State
 3        aid grant for the Budget Year as provided  in  accordance
 4        with the provisions of subsection (E).
 5             (b)  Determine  the school district's adjusted level
 6        of general State aid by utilizing in the  calculation  of
 7        Available Local Resources an equalized assessed valuation
 8        that is the equalized assessed valuation of the Preceding
 9        Tax Year multiplied by the Extension Limitation Ratio.
10             (c)  Subtract  the  sum  derived in subparagraph (a)
11        from the sum derived in subparagraph (b).  If the  result
12        is  a  positive  number, that amount shall be the general
13        State aid adjustment grant that the district is  eligible
14        to receive.
15        (5)  The  State  Board  of Education shall in the Current
16    Year, based upon claims filed in the Current Year,  recommend
17    to  the  General  Assembly  an  appropriation  amount for the
18    general State aid adjustment grants to be made in the  Budget
19    Year.
20        (6)  Claims for general State aid adjustment grants shall
21    be  paid  in  a lump sum on or before January 1 of the Budget
22    Year only from appropriations made by  the  General  Assembly
23    expressly  for  claims under this subsection.  No such claims
24    may be paid from amounts appropriated for any  other  purpose
25    provided  for  under  this  Section.   In  the event that the
26    appropriation   for   claims   under   this   subsection   is
27    insufficient to meet all Budget Year  claims  for  a  general
28    State aid adjustment grant, the appropriation available shall
29    be  proportionately  prorated by the State Board of Education
30    amongst all districts filing for and entitled to payments.
31        (7)  The State Board of Education  shall  promulgate  the
32    required  claim  forms  and  rules necessary to implement the
33    provisions of this subsection.
34    (O)  References.
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 1        (1)  References in other laws to the various subdivisions
 2    of Section 18-8 as that Section existed before its repeal and
 3    replacement by this Section 18-8.05 shall be deemed to  refer
 4    to  the  corresponding provisions of this Section 18-8.05, to
 5    the extent that those references remain applicable.
 6        (2)  References in other laws to State  Chapter  1  funds
 7    shall  be  deemed  to refer to the supplemental general State
 8    aid provided under subsection (H) of this Section.
 9    (Source: P.A. 90-548, eff. 7-1-98.)
10        Section 99.  Effective date.  This Act takes effect  upon
11    becoming  law,  except  that the provisions changing Sections
12    2-3.66, 10-22.20, 13A-8, and 18-8.05 of the School Code  take
13    effect July 1, 1998.

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