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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 Educationat 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 insubsections 5(a) through165(d) of Section 18-8 orsubsection (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 providenew and22additionalfunding 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 programsall alternative schools in that30region. 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) 2Part Bof Section 18-8.0518-8upon 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 SB1599 Re-enrolled -29- LRB9010085THpk 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 SB1599 Re-enrolled -40- LRB9010085THpk 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 SB1599 Re-enrolled -41- LRB9010085THpk 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. SB1599 Re-enrolled -42- LRB9010085THpk 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 SB1599 Re-enrolled -43- LRB9010085THpk 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 SB1599 Re-enrolled -44- LRB9010085THpk 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. SB1599 Re-enrolled -45- LRB9010085THpk 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.