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90_SB1599enr 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 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 Enrolled -2- LRB9010085THpk 1 Educational, Operations and Maintenance, Transportation, and 2 Working Cash Funds;.3 (4) The district has previously been certified to be in 4 financial difficulty and requests to be recertified as a 5 result of continuing financial problems. 6 No school district shall be certified to be in financial 7 difficulty by reason of any of the above circumstances 8 arising as a result of the failure of the county to make any 9 distribution of property tax money due the district at the 10 time such distribution is due; or if the district clearly 11 demonstrates to the satisfaction of the State Board of 12 Education at the time of its determination that such 13 condition no longer exists. If the State Board of Education 14 certifies that a district in a city with 500,000 inhabitants 15 or more is in financial difficulty, the State Board shall so 16 notify the Governor and the Mayor of the city in which the 17 district is located. The State Board of Education may 18 require school districts in financial difficulty, except 19 those districts subject to Article 34A, to develop, adopt and 20 submit a financial plan within 45 days after certification of 21 financial difficulty. The financial plan shall be developed 22 according to guidelines presented to the district by the 23 State Board of Education within 14 days of certification. 24 Such guidelines shall address the specific nature of each 25 district's financial difficulties. Any proposed budget of the 26 district shall be consistent with the financial plan approved 27 by the State Board. 28 A district certified to be in financial difficulty, other 29 than a district subject to Article 34A, shall report to the 30 State Board of Education at such times and in such manner as 31 the State Board may direct, concerning the district's 32 compliance with each financial plan. The State Board may 33 review the district's operations, obtain budgetary data and 34 financial statements, require the district to produce SB1599 Enrolled -3- LRB9010085THpk 1 reports, and have access to any other information in the 2 possession of the district that it deems relevant. The State 3 Board may issue recommendations or directives within its 4 powers to the district to assure compliance with the 5 financial plan. The district shall produce such budgetary 6 data, financial statements, reports and other information and 7 comply with such directives. If the State Board of Education 8 determines that a district has failed to comply with its 9 financial plan, the State Board of Education may rescind 10 approval of the plan and appoint a Financial Oversight Panel 11 for the district as provided in Section 1B-4. This action 12 shall be taken only after the district has been given notice 13 and an opportunity to appear before the State Board of 14 Education to discuss its failure to comply with its financial 15 plan. 16 No bonds, notes, teachers orders, tax anticipation 17 warrants or other evidences of indebtedness shall be issued 18 or sold by a school district or be legally binding upon or 19 enforceable against a local board of education of a district 20 certified to be in financial difficulty unless and until the 21 financial plan required under this Section has been approved 22 by the State Board of Education. 23 Any financial watch list distributed by the State Board 24 of Education pursuant to this Section shall designate those 25 school districts on the watch list that would not otherwise 26 be on the watch list were it not for the inability or refusal 27 of the State of Illinois to make timely disbursements of any 28 payments due school districts or to fully reimburse school 29 districts for mandated categorical programs pursuant to 30 reimbursement formulas provided in this School Code. 31 (Source: P.A. 88-555, eff. 7-27-94; 88-618, eff. 9-9-94; 32 89-235, eff. 8-4-95.) 33 (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8) SB1599 Enrolled -4- LRB9010085THpk 1 Sec. 1B-8. There is created in the State Treasury a 2 special fund to be known as the School District Emergency 3 Financial Assistance Fund (the "Fund"). The School District 4 Emergency Financial Assistance Fund shall consist of 5 appropriations, grants from the federal government and 6 donations from any public or private source. Moneys in the 7 Fund may be appropriated only to the State Board for the 8 purposes of this Article. The appropriation may be allocated 9 and expended by the State Board as grants or loans to school 10 districts which are the subject of an approved petition for 11 emergency financial assistance under Section 1B-4. From the 12 amount allocated to each such school district the State Board 13 shall identify a sum sufficient to cover all approved costs 14 of the Financial Oversight Panel established for the 15 respective school district. If the State Board and State 16 Superintendent of Education have not approved emergency 17 financial assistance in conjunction with the appointment of a 18 Financial Oversight Panel, the Panel's approved costs shall 19 be paid from deductions from the district's general State 20 aid. 21 The Financial Oversight Panel may prepare and file with 22 the State Superintendent a proposal for emergency financial 23 assistance for the school district and for the operations 24 budget of the Panel. No expenditures shall be authorized by 25 the State Superintendent until he has approved the proposal 26 of the Panel, either as submitted or in such lesser amount 27 determined by the State Superintendent. 28 The maximum amount of an emergency financial assistance 29 loan which may be allocated to any school district under this 30 Article, including moneys necessary for the operations of the 31 Panel, shall not exceed $1000 times the number of pupils 32 enrolled in the school district during the school year ending 33 June 30 prior to the date of approval by the State Board of 34 the petition for emergency financial assistance, as certified SB1599 Enrolled -5- LRB9010085THpk 1 to the local board and the Panel by the State Superintendent. 2 An emergency financial assistance grant shall not exceed $250 3 times the number of such pupils. A district may receive both 4 a loan and a grant. 5 The payment of an emergency State financial assistance 6 grant or loan shall be subject to appropriation by the 7 General Assembly. Emergency State financial assistance 8 allocated and paid to a school district under this Article 9 may be applied to any fund or funds from which the local 10 board of education of that district is authorized to make 11 expenditures by law. 12 Any emergency financial assistance proposed by the 13 Financial Oversight Panel and approved by the State 14 Superintendent may be paid in its entirety during the initial 15 year of the Panel's existence or spread in equal or declining 16 amounts over a period of years not to exceed the period of 17 the Panel's existence. All loan payments made from the 18 School District Emergency Financial Assistance Fund for a 19 school district shall be required to be repaid, with simple 20 interest over the term of the loan at a rate equal to 50% of 21 the discount rate on one-year United States Treasury Bills as 22 determined by the last auction of those one-year bills that 23 precedes the date on which the district's loan is approved by 24 the State Board of Educationat the rate of 4%, not later 25 than the date the Financial Oversight Panel ceases to exist. 26 The Panel shall establish and the State Superintendent shall 27 approve the terms and conditions, including the schedule, of 28 repayments. The schedule shall provide for repayments 29 commencing July 1 of each year. Repayment shall be 30 incorporated into the annual budget of the school district 31 and may be made from any fund or funds of the district in 32 which there are moneys available. When moneys are repaid as 33 provided herein they shall not be made available to the local 34 board for further use as emergency financial assistance under SB1599 Enrolled -6- LRB9010085THpk 1 this Article at any time thereafter. All repayments required 2 to be made by a school district shall be received by the 3 State Board and deposited in the School District Emergency 4 Financial Assistance Fund. 5 In establishing the terms and conditions for the 6 repayment obligation of the school district the Panel shall 7 annually determine whether a separate local property tax levy 8 is required. The board of any school district with a tax 9 rate for educational purposes for the prior year of less than 10 120% of the maximum rate for educational purposes authorized 11 by Section 17-2 shall provide for a separate tax levy for 12 emergency financial assistance repayment purposes. Such tax 13 levy shall not be subject to referendum approval. The amount 14 of the levy shall be equal to the amount necessary to meet 15 the annual repayment obligations of the district as 16 established by the Panel, or 20% of the amount levied for 17 educational purposes for the prior year, whichever is less. 18 However, no district shall be required to levy the tax if the 19 district's operating tax rate as determined under Section 20 18-8 or 18-8.05 exceeds 200% of the district's tax rate for 21 educational purposes for the prior year. 22 (Source: P.A. 90-548, eff. 1-1-98.) 23 (105 ILCS 5/2-3.17a) (from Ch. 122, par. 2-3.17a) 24 Sec. 2-3.17a. Financial audits. The State Board of 25 Education shall annually cause an audit to be made, as of 26 June 30, 1986 and as of June 30th of each year thereafter, of 27 the financial statements of all accounts, funds and other 28 moneys in the care, custody or control of the regional 29 superintendent of schools of each educational service region 30 in the State and of each educational service center 31 established under Section 2-3.62 of this Act other than an 32 educational service center serving a school district in a 33 city having a population exceeding 500,000. The audit shall SB1599 Enrolled -7- LRB9010085THpk 1 be conducted in accordance with Generally Accepted 2 Governmental Auditing Standards and shall include an 3 examination of supporting books and records and a 4 representative sample of vouchers for distributions and 5 expenditures. On February 15, 1991, and on February 15 of 6 each year thereafter, the State Board of Education shall 7 notify the Legislative Audit Commission in writing of the 8 completion or of the reasons for the noncompletion of each 9 audit required by this Section to be made as of the preceding 10 June 30. An audit report shall be prepared for each audit 11 made pursuant to this Section, and all such audit reports 12 shall be kept on file in the office of the State Board of 13 Education. Within 60 days after each audit report required to 14 be prepared under this Section is completed, the State Board 15 of Education: (i) shall furnish a copy of such audit report 16 to each member of the General Assembly whose legislative or 17 representative district includes any part of the educational 18 service region served by the regional superintendent of 19 schools with respect to whose financial statements that audit 20 report was prepared or any part of the area served by the 21 educational service center that is the subject of the audit; 22 and (ii) shall publish in a newspaper published in that 23 educational service region or area served by the educational 24 service center that is the subject of the audit a notice that 25 the audit report has been prepared and is available for 26 inspection during regular business hours at the office of the 27 regional superintendent of schools of that educational 28 service region or at the administrative office of the 29 educational service center. Each audit shall be made in such 30 manner as to determine, and each audit report shall be 31 prepared in such manner as to state: 32 (a) The balances on hand of all accounts, funds and 33 other moneys in the care, custody or control of the regional 34 superintendent of schools or educational service center at SB1599 Enrolled -8- LRB9010085THpk 1 the beginning of the fiscal year being audited; 2 (b) the amount of funds received during the fiscal year 3 by source; 4 (c) the amount of funds distributed or otherwise paid by 5 the regional superintendent of schools or educational service 6 center to each school treasurer in his or her educational 7 service region or area, including the purpose of such 8 distribution or payment and the fund or account from which 9 such distribution or payment is made; 10 (d) the amounts paid or otherwise disbursed by the 11 regional superintendent of schools or educational service 12 center -- other than the amounts distributed or paid by the 13 regional superintendent of schools or educational service 14 center to school treasurers as described in paragraph (c) 15 above -- for all other purposes and expenditures, including 16 the fund or account from which such payments or disbursements 17 are made and the purpose thereof; and 18 (e) the balances on hand of all accounts, funds and 19 other moneys in the care, custody or control of the regional 20 superintendent of schools or educational service center at 21 the end of the fiscal year being audited. 22 The State Board of Education shall adopt rules and 23 regulations relative to the time and manner by which the 24 regional superintendent of schools or educational service 25 center shall present for inspection or make available to the 26 State Board of Education, or to the agents designated by such 27 Board to make an audit and prepare an audit report pursuant 28 to this Section, all financial statements, books, records, 29 vouchers for distributions and expenditures, and records of 30 accounts, funds and other moneys in the care, custody or 31 control of the regional superintendent of schools or 32 educational service center and required for purposes of 33 making such audit and preparing an audit and preparing an 34 audit report. SB1599 Enrolled -9- LRB9010085THpk 1 (f) The State Board of Education shall require the 2 regional superintendent of schools of each educational 3 service region or administrator of each educational service 4 center to promptly implement all recommendations based on 5 audit findings resulting from a violation of law made in 6 audits prepared pursuant to this Section, unless the State 7 Board of Education, upon review, determines, with regard to 8 any such finding, that implementation of the recommendation 9 is not appropriate. 10 (Source: P.A. 85-1389; 86-1332.) 11 (105 ILCS 5/2-3.66) (from Ch. 122, par. 2-3.66) 12 Sec. 2-3.66. Truants' alternative and optional education 13 programs. To establish pilot projects to offer modified 14 instructional programs or other services designed to prevent 15 students from dropping out of school, including programs 16 pursuant to Section 2-3.41, and to serve as a part time or 17 full time option in lieu of regular school attendance and to 18 award grants to local school districts, educational service 19 regions or community college districts from appropriated 20 funds to assist districts in establishing such projects. The 21 education agency may operate its own program or enter into a 22 contract with another not-for-profit entity to implement the 23 program. The pilot projects shall allow dropouts, up to and 24 including age 21, potential dropouts, including truants, 25 uninvolved, unmotivated and disaffected students, as defined 26 by State Board of Education rules and regulations, to enroll, 27 as an alternative to regular school attendance, in an 28 optional education program which may be established by school 29 board policy and is in conformance with rules adopted by the 30 State Board of Education. Truants' Alternative and Optional 31 Education programs funded pursuant to this Section shall be 32 planned by a student, the student's parents or legal 33 guardians, unless the student is 18 years or older, and SB1599 Enrolled -10- LRB9010085THpk 1 school officials and shall culminate in an individualized 2 optional education plan. Such plan shall focus on academic 3 or vocational skills, or both, and may include, but not be 4 limited to, evening school, summer school, community college 5 courses, adult education, preparation courses for the high 6 school level test of General Educational Development, 7 vocational training, work experience, programs to enhance 8 self concept and parenting courses. School districts which 9 are awarded grants pursuant to this Section shall be 10 authorized to provide day care services to children of 11 students who are eligible and desire to enroll in programs 12 established and funded under this Section, but only if and to 13 the extent that such day care is necessary to enable those 14 eligible students to attend and participate in the programs 15 and courses which are conducted pursuant to this Section. 16 The Board shall report on the status of the pilot projects 17 pursuant to Section 1A-4. School districts and regional 18 offices of education may claim general State aid under 19 Section 18-8.05 for students enrolled in truants' alternative 20 and optional education programs, provided that such students 21 are receiving services that are supplemental to a program 22 leading to a high school diploma and are otherwise eligible 23 to be claimed for general State aid under Section 18-8.05. 24 (Source: P.A. 86-339.) 25 (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20) 26 Sec. 10-22.20. Classes for adults and youths whose 27 schooling has been interrupted; Conditions for State 28 reimbursement; Use of child care facilities. 29 (a) To establish special classes for the instruction (1) 30 of persons of age 21 years or over, and (2) of persons less 31 than age 21 and not otherwise in attendance in public school, 32 for the purpose of providing adults in the community, and 33 youths whose schooling has been interrupted, with such SB1599 Enrolled -11- LRB9010085THpk 1 additional basic education, vocational skill training, and 2 other instruction as may be necessary to increase their 3 qualifications for employment or other means of self-support 4 and their ability to meet their responsibilities as citizens 5 including courses of instruction regularly accepted for 6 graduation from elementary or high schools and for 7 Americanization and General Educational Development Review 8 classes. 9 The board shall pay the necessary expenses of such 10 classes out of school funds of the district, including costs 11 of student transportation and such facilities or provision 12 for child-care as may be necessary in the judgment of the 13 board to permit maximum utilization of the courses by 14 students with children, and other special needs of the 15 students directly related to such instruction. The expenses 16 thus incurred shall be subject to State reimbursement, as 17 provided in this Section. The board may make a tuition 18 charge for persons taking instruction who are not subject to 19 State reimbursement, such tuition charge not to exceed the 20 per capita cost of such classes. 21 The cost of such instruction, including the additional 22 expenses herein authorized, incurred for recipients of 23 financial aid under the Illinois Public Aid Code, or for 24 persons for whom education and training aid has been 25 authorized under Section 9-8 of that Code, shall be assumed 26 in its entirety from funds appropriated by the State to the 27 State Board of Education. 28 (b) The State Board of Education and the Illinois 29 Community College Board shall annually enter into an 30 interagency agreement to implement this Section. The 31 interagency agreement shall establish the standards for the 32 courses of instruction reimbursed under this Section. The 33 State Board of Education shall supervise the administration 34 of the programs. The State Board of Education shall SB1599 Enrolled -12- LRB9010085THpk 1 determine the cost of instruction in accordance with 2 standards jointly established by the State Board of Education 3 and the Illinois Community College Board as set forth in the 4 interagency agreement, including therein other incidental 5 costs as herein authorized, which shall serve as the basis of 6 State reimbursement in accordance with the provisions of 7 this Section. In the approval of programs and the 8 determination of the cost of instruction, the State Board of 9 Education shall provide for the maximum utilization of 10 federal funds for such programs. The interagency agreement 11 shall also include: 12 (1) the development of an index of need for program 13 planning and for area funding allocations as defined by 14 the State Board of Education; 15 (2) the method for calculating hours of 16 instruction, as defined by the State Board of Education, 17 claimable for reimbursement and a method to phase in the 18 calculation and for adjusting the calculations in cases 19 where the services of a program are interrupted due to 20 circumstances beyond the control of the program provider; 21 (3) a plan for the reallocation of funds to 22 increase the amount allocated for grants based upon 23 program performance as set forth in subsection (d) below; 24 and 25 (4) the development of standards for determining 26 grants based upon performance as set forth in subsection 27 (d) below and a plan for the phased-in implementation of 28 those standards. 29 For instruction provided by school districts and 30 community college districts beginning July 1, 1996 and 31 thereafter, reimbursement provided by the State Board of 32 Education for classes authorized by this Section shall be 33 provided pursuant to the terms of the interagency agreement 34 from funds appropriated for the reimbursement criteria set SB1599 Enrolled -13- LRB9010085THpk 1 forth in subsection (c) below. 2 (c) Upon the annual approval of the interagency 3 agreement, reimbursement shall be first provided for 4 transportation, child care services, and other special needs 5 of the students directly related to instruction and then from 6 the funds remaining an amount equal to the product of the 7 total credit hours or units of instruction approved by the 8 State Board of Education, multiplied by the following: 9 (1) For adult basic education, the maximum 10 reimbursement per credit hour or per unit of instruction 11 shall be equal to the general state aid per pupil 12 foundation level established insubsections 5(a) through135(d) of Section 18-8 orsubsection (B) of Section 14 18-8.05, divided by 60; 15 (2) The maximum reimbursement per credit hour or 16 per unit of instruction in subparagraph (1) above shall 17 be weighted for students enrolled in classes defined as 18 vocational skills and approved by the State Board of 19 Education by 1.25; 20 (3) The maximum reimbursement per credit hour or 21 per unit of instruction in subparagraph (1) above shall 22 be multiplied by .90 for students enrolled in classes 23 defined as adult secondary education programs and 24 approved by the State Board of Education; 25 (4) For community college districts the maximum 26 reimbursement per credit hour in subparagraphs (1), (2), 27 and (3) above shall be reduced by the Adult Basic 28 Education/Adult Secondary Education/English As A Second 29 Language credit hour grant rate prescribed in Section 30 2-16.02 of the Public Community College Act, as pro-rated 31 to the appropriation level; and 32 (5) Programs receiving funds under the formula that 33 was in effect during the 1994-1995 program year which 34 continue to be approved and which generate at least 80% SB1599 Enrolled -14- LRB9010085THpk 1 of the hours claimable in 1994-95, or in the case of 2 programs not approved in 1994-95 at least 80% of the 3 hours claimable in 1995-96, shall have funding for 4 subsequent years based upon 100% of the 1995-96 formula 5 funding level for 1996-97, 90% of the 1995-96 formula 6 funding level for 1997-98, 80% of the 1995-96 formula 7 funding level for 1998-99, and 70% of the 1995-96 formula 8 funding level for 1999-2000. For any approved program 9 which generates less than 80% of the claimable hours in 10 its base year, the level of funding pursuant to this 11 paragraph shall be reduced proportionately. Funding for 12 program years after 1999-2000 shall be pursuant to the 13 interagency agreement. 14 (d) Upon the annual approval of the interagency 15 agreement, the State Board of Education shall provide grants 16 to eligible programs for supplemental activities to improve 17 or expand services under the Adult Education Act. Eligible 18 programs shall be determined based upon performance outcomes 19 of students in the programs as set forth in the interagency 20 agreement. 21 (e) Reimbursement under this Section shall not exceed 22 the actual costs of the approved program. 23 If the amount appropriated to the State Board of 24 Education for reimbursement under this Section is less than 25 the amount required under this Act, the apportionment shall 26 be proportionately reduced. 27 School districts and community college districts may 28 assess students up to $3.00 per credit hour, for classes 29 other than Adult Basic Education level programs, if needed to 30 meet program costs. 31 (f) An education plan shall be established for each 32 adult or youth whose schooling has been interrupted and who 33 is participating in the instructional programs provided under 34 this Section. SB1599 Enrolled -15- LRB9010085THpk 1 Each school board and community college shall keep an 2 accurate and detailed account of the students assigned to and 3 receiving instruction under this Section who are subject to 4 State reimbursement and shall submit reports of services 5 provided commencing with fiscal year 1997 as required in the 6 interagency agreement. 7 For classes authorized under this Section, a credit hour 8 or unit of instruction is equal to 15 hours of direct 9 instruction for students enrolled in approved adult education 10 programs at midterm and making satisfactory progress, in 11 accordance with standards jointly established by the State 12 Board of Education and the Illinois Community College Board 13 as set forth in the interagency agreement. 14 (g) Upon proof submitted to the Illinois Department of 15 Human Services of the payment of all claims submitted under 16 this Section, that Department shall apply for federal funds 17 made available therefor and any federal funds so received 18 shall be paid into the General Revenue Fund in the State 19 Treasury. 20 School districts or community colleges providing classes 21 under this Section shall submit applications to the State 22 Board of Education for preapproval in accordance with the 23 standards jointly established by the State Board of Education 24 and the Illinois Community College Board as set forth in the 25 interagency agreement. Payments shall be made by the State 26 Board of Education based upon approved programs. Interim 27 expenditure reports may be required by the State Board of 28 Education as set forth in the interagency agreement. Final 29 claims for the school year shall be submitted to the regional 30 superintendents for transmittal to the State Board of 31 Education as set forth in the interagency agreement. Final 32 adjusted payments shall be made by September 30. 33 If a school district or community college district fails 34 to provide, or is providing unsatisfactory or insufficient SB1599 Enrolled -16- LRB9010085THpk 1 classes under this Section, the State Board of Education may 2 enter into agreements with public or private educational or 3 other agencies other than the public schools for the 4 establishment of such classes. 5 (h) If a school district or community college district 6 establishes child-care facilities for the children of 7 participants in classes established under this Section, it 8 may extend the use of these facilities to students who have 9 obtained employment and to other persons in the community 10 whose children require care and supervision while the parent 11 or other person in charge of the children is employed or 12 otherwise absent from the home during all or part of the day. 13 It may make the facilities available before and after as well 14 as during regular school hours to school age and preschool 15 age children who may benefit thereby, including children who 16 require care and supervision pending the return of their 17 parent or other person in charge of their care from 18 employment or other activity requiring absence from the home. 19 The State Board of Education shall pay to the board the 20 cost of care in the facilities for any child who is a 21 recipient of financial aid under The Illinois Public Aid 22 Code. 23 The board may charge for care of children for whom it 24 cannot make claim under the provisions of this Section. The 25 charge shall not exceed per capita cost, and to the extent 26 feasible, shall be fixed at a level which will permit 27 utilization by employed parents of low or moderate income. 28 It may also permit any other State or local governmental 29 agency or private agency providing care for children to 30 purchase care. 31 After July 1, 1970 when the provisions of Section 32 10-20.20 become operative in the district, children in a 33 child-care facility shall be transferred to the kindergarten 34 established under that Section for such portion of the day as SB1599 Enrolled -17- LRB9010085THpk 1 may be required for the kindergarten program, and only the 2 prorated costs of care and training provided in the Center 3 for the remaining period shall be charged to the Illinois 4 Department of Human Services or other persons or agencies 5 paying for such care. 6 (i) The provisions of this Section shall also apply to 7 school districts having a population exceeding 500,000. 8 (j) In addition to claiming reimbursement under this 9 Section, a school district may claim general State aid under 10 Section 18-8.05 for any student under age 21 who is enrolled 11 in courses accepted for graduation from elementary or high 12 school and who otherwise meets the requirements of Section 13 18-8.05. 14 (Source: P.A. 89-507, eff. 7-1-97; 89-524, eff. 7-19-96; 15 90-14, eff. 7-1-97; 90-548, eff. 1-1-98.) 16 (105 ILCS 5/13A-8) 17 Sec. 13A-8. Funding. 18 (a) The State of Illinois shall providenew and19additionalfunding for the alternative school programs within 20 each educational service region and within the Chicago public 21 school system by line item appropriation made to the State 22 Board of Education for that purpose. This money, when 23 appropriated, shall be provided to the regional 24 superintendent and to the Chicago Board of Education, who 25 shall establish a budget, including salaries, for their 26 alternative school programsall alternative schools in that27region. Each program shall receive funding in the amount of 28 $30,000 plus an amount based on the ratio of the region's or 29 Chicago's best 3 months' average daily attendance in grades 30 pre-kindergarten through 12 to the statewide totals of these 31 amounts. For purposes of this calculation, the best 3 32 months' average daily attendance for each region or Chicago 33 shall be calculated by adding to the best 3 months' average SB1599 Enrolled -18- LRB9010085THpk 1 daily attendance the number of low-income students identified 2 in the most recently available federal census multiplied by 3 one-half times the percentage of the region's or Chicago's 4 low-income students to the State's total low-income students. 5 The State Board of Education shall retain up to 1.1% of the 6 appropriation to be used to provide technical assistance, 7 professional development, and evaluations for the programs. 8 (a-5) Notwithstanding any other provisions of this 9 Section, for the 1998-1999 fiscal year, the total amount 10 distributed under subsection (a) for an alternative school 11 program shall be not less than the total amount that was 12 distributed under that subsection for that alternative school 13 program for the 1997-1998 fiscal year. If an alternative 14 school program is to receive a total distribution under 15 subsection (a) for the 1998-1999 fiscal year that is less 16 than the total distribution that the program received under 17 that subsection for the 1997-1998 fiscal year, that 18 alternative school program shall also receive, from a 19 separate appropriation made for purposes of this subsection 20 (a-5), a supplementary payment equal to the amount by which 21 its total distribution under subsection (a) for the 1997-1998 22 fiscal year exceeds the amount of the total distribution that 23 the alternative school program receives under that subsection 24 for the 1998-1999 fiscal year. If the amount appropriated for 25 supplementary payments to alternative school programs under 26 this subsection (a-5) is insufficient for that purpose, those 27 supplementary payments shall be prorated among the 28 alternative school programs entitled to receive those 29 supplementary payments according to the aggregate amount of 30 the appropriation made for purposes of this subsection (a-5). 31 (b) An alternative school program shall be entitled to 32 receive general State aid as calculated in subsection (K) 33Part Bof Section 18-8.0518-8upon filing a claim as 34 provided therein. Any time that a student who is enrolled in SB1599 Enrolled -19- LRB9010085THpk 1 an alternative school program spends in work-based learning, 2 community service, or a similar alternative educational 3 setting shall be included in determining the student's 4 minimum number of clock hours of daily school work that 5 constitute a day of attendance for purposes of calculating 6 general State aid. 7 (c) An alternative school program may receive additional 8 funding from its school districts in such amount as may be 9 agreed upon by the parties and necessary to support the 10 program. In addition, an alternative school program is 11 authorized to accept and expend gifts, legacies, and grants, 12 including but not limited to federal grants, from any source 13 for purposes directly related to the conduct and operation of 14 the program. 15 (Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96; 16 89-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 17 7-31-97.) 18 (105 ILCS 5/18-8.05) 19 (This Section may contain text from a Public Act with a 20 delayed effective date.) 21 Sec. 18-8.05. Basis for apportionment of general State 22 financial aid and supplemental general State aid to the 23 common schools for the 1998-1999 and subsequent school years. 24 (A) General Provisions. 25 (1) The provisions of this Section apply to the 26 1998-1999 and subsequent school years. The system of general 27 State financial aid provided for in this Section is designed 28 to assure that, through a combination of State financial aid 29 and required local resources, the financial support provided 30 each pupil in Average Daily Attendance equals or exceeds a 31 prescribed per pupil Foundation Level. This formula approach 32 imputes a level of per pupil Available Local Resources and 33 provides for the basis to calculate a per pupil level of SB1599 Enrolled -20- LRB9010085THpk 1 general State financial aid that, when added to Available 2 Local Resources, equals or exceeds the Foundation Level. The 3 amount of per pupil general State financial aid for school 4 districts, in general, varies in inverse relation to 5 Available Local Resources. Per pupil amounts are based upon 6 each school district's Average Daily Attendance as that term 7 is defined in this Section. 8 (2) In addition to general State financial aid, school 9 districts with specified levels or concentrations of pupils 10 from low income households are eligible to receive 11 supplemental general State financial aid grants as provided 12 pursuant to subsection (H). The supplemental State aid grants 13 provided for school districts under subsection (H) shall be 14 appropriated for distribution to school districts as part of 15 the same line item in which the general State financial aid 16 of school districts is appropriated under this Section. 17 (3) To receive financial assistance under this Section, 18 school districts are required to file claims with the State 19 Board of Education, subject to the following requirements: 20 (a) Any school district which fails for any given 21 school year to maintain school as required by law, or to 22 maintain a recognized school is not eligible to file for 23 such school year any claim upon the Common School Fund. 24 In case of nonrecognition of one or more attendance 25 centers in a school district otherwise operating 26 recognized schools, the claim of the district shall be 27 reduced in the proportion which the Average Daily 28 Attendance in the attendance center or centers bear to 29 the Average Daily Attendance in the school district. A 30 "recognized school" means any public school which meets 31 the standards as established for recognition by the State 32 Board of Education. A school district or attendance 33 center not having recognition status at the end of a 34 school term is entitled to receive State aid payments due SB1599 Enrolled -21- LRB9010085THpk 1 upon a legal claim which was filed while it was 2 recognized. 3 (b) School district claims filed under this Section 4 are subject to Sections 18-9, 18-10, and 18-12, except as 5 otherwise provided in this Section. 6 (c) If a school district operates a full year 7 school under Section 10-19.1, the general State aid to 8 the school district shall be determined by the State 9 Board of Education in accordance with this Section as 10 near as may be applicable. 11 (d) Claims for financial assistance under this 12 Section shall not be recomputed except as expressly 13 provided under this Section. 14 (4) Except as provided in subsections (H) and (L), the 15 board of any district receiving any of the grants provided 16 for in this Section may apply those funds to any fund so 17 received for which that board is authorized to make 18 expenditures by law. 19 School districts are not required to exert a minimum 20 Operating Tax Rate in order to qualify for assistance under 21 this Section. 22 (5) As used in this Section the following terms, when 23 capitalized, shall have the meaning ascribed herein: 24 (a) "Average Daily Attendance": A count of pupil 25 attendance in school, averaged as provided for in 26 subsection (C) and utilized in deriving per pupil 27 financial support levels. 28 (b) "Available Local Resources": A computation of 29 local financial support, calculated on the basis Average 30 Daily Attendance and derived as provided pursuant to 31 subsection (D). 32 (c) "Corporate Personal Property Replacement 33 Taxes": Funds paid to local school districts pursuant to 34 "An Act in relation to the abolition of ad valorem SB1599 Enrolled -22- LRB9010085THpk 1 personal property tax and the replacement of revenues 2 lost thereby, and amending and repealing certain Acts and 3 parts of Acts in connection therewith", certified August 4 14, 1979, as amended (Public Act 81-1st S.S.-1). 5 (d) "Foundation Level": A prescribed level of per 6 pupil financial support as provided for in subsection 7 (B). 8 (e) "Operating Tax Rate": All school district 9 property taxes extended for all purposes, except 10 community college educational purposes for the payment of 11 tuition under Section 6-1 of the Public Community College 12 Act, Bond and Interest, Summer School, Rent, Capital 13 Improvement, and Vocational Education Building purposes. 14 (B) Foundation Level. 15 (1) The Foundation Level is a figure established by the 16 State representing the minimum level of per pupil financial 17 support that should be available to provide for the basic 18 education of each pupil in Average Daily Attendance. As set 19 forth in this Section, each school district is assumed to 20 exert a sufficient local taxing effort such that, in 21 combination with the aggregate of general State financial aid 22 provided the district, an aggregate of State and local 23 resources are available to meet the basic education needs of 24 pupils in the district. 25 (2) For the 1998-1999 school year, the Foundation Level 26 of support is $4,225. For the 1999-2000 school year, the 27 Foundation Level of support is $4,325. For the 2000-2001 28 school year, the Foundation Level of support is $4,425. 29 (3) For the 2001-2002 school year and each school year 30 thereafter, the Foundation Level of support is $4,425 or such 31 greater amount as may be established by law by the General 32 Assembly. 33 (C) Average Daily Attendance. SB1599 Enrolled -23- LRB9010085THpk 1 (1) For purposes of calculating general State aid 2 pursuant to subsection (E), an Average Daily Attendance 3 figure shall be utilized. The Average Daily Attendance 4 figure for formula calculation purposes shall be the monthly 5 average of the actual number of pupils in attendance of each 6 school district, as further averaged for the best 3 months of 7 pupil attendance for each school district. In compiling the 8 figures for the number of pupils in attendance, school 9 districts and the State Board of Education shall, for 10 purposes of general State aid funding, conform attendance 11 figures to the requirements of subsection (F). 12 (2) The Average Daily Attendance figures utilized in 13 subsection (E) shall be the requisite attendance data for the 14 school year immediately preceding the school year for which 15 general State aid is being calculated. 16 (D) Available Local Resources. 17 (1) For purposes of calculating general State aid 18 pursuant to subsection (E), a representation of Available 19 Local Resources per pupil, as that term is defined and 20 determined in this subsection, shall be utilized. Available 21 Local Resources per pupil shall include a calculated dollar 22 amount representing local school district revenues from local 23 property taxes and from Corporate Personal Property 24 Replacement Taxes, expressed on the basis of pupils in 25 Average Daily Attendance. 26 (2) In determining a school district's revenue from 27 local property taxes, the State Board of Education shall 28 utilize the equalized assessed valuation of all taxable 29 property of each school district as of September 30 of the 30 previous year. The equalized assessed valuation utilized 31 shall be obtained and determined as provided in subsection 32 (G). 33 (3) For school districts maintaining grades kindergarten 34 through 12, local property tax revenues per pupil shall be SB1599 Enrolled -24- LRB9010085THpk 1 calculated as the product of the applicable equalized 2 assessed valuation for the district multiplied by 3.00%, and 3 divided by the district's Average Daily Attendance figure. 4 For school districts maintaining grades kindergarten through 5 8, local property tax revenues per pupil shall be calculated 6 as the product of the applicable equalized assessed valuation 7 for the district multiplied by 2.30%, and divided by the 8 district's Average Daily Attendance figure. For school 9 districts maintaining grades 9 through 12, local property tax 10 revenues per pupil shall be the applicable equalized assessed 11 valuation of the district multiplied by 1.20%, and divided by 12 the district's Average Daily Attendance figure. 13 (4) The Corporate Personal Property Replacement Taxes 14 paid to each school district during the calendar year 2 years 15 before the calendar year in which a school year begins, 16 divided by the Average Daily Attendance figure for that 17 district, shall be added to the local property tax revenues 18 per pupil as derived by the application of the immediately 19 preceding paragraph (3). The sum of these per pupil figures 20 for each school district shall constitute Available Local 21 Resources as that term is utilized in subsection (E) in the 22 calculation of general State aid. 23 (E) Computation of General State Aid. 24 (1) For each school year, the amount of general State 25 aid allotted to a school district shall be computed by the 26 State Board of Education as provided in this subsection. 27 (2) For any school district for which Available Local 28 Resources per pupil is less than the product of 0.93 times 29 the Foundation Level, general State aid for that district 30 shall be calculated as an amount equal to the Foundation 31 Level minus Available Local Resources, multiplied by the 32 Average Daily Attendance of the school district. 33 (3) For any school district for which Available Local 34 Resources per pupil is equal to or greater than the product SB1599 Enrolled -25- LRB9010085THpk 1 of 0.93 times the Foundation Level and less than the product 2 of 1.75 times the Foundation Level, the general State aid per 3 pupil shall be a decimal proportion of the Foundation Level 4 derived using a linear algorithm. Under this linear 5 algorithm, the calculated general State aid per pupil shall 6 decline in direct linear fashion from 0.07 times the 7 Foundation Level for a school district with Available Local 8 Resources equal to the product of 0.93 times the Foundation 9 Level, to 0.05 times the Foundation Level for a school 10 district with Available Local Resources equal to the product 11 of 1.75 times the Foundation Level. The allocation of 12 general State aid for school districts subject to this 13 paragraph 3 shall be the calculated general State aid per 14 pupil figure multiplied by the Average Daily Attendance of 15 the school district. 16 (4) For any school district for which Available Local 17 Resources per pupil equals or exceeds the product of 1.75 18 times the Foundation Level, the general State aid for the 19 school district shall be calculated as the product of $218 20 multiplied by the Average Daily Attendance of the school 21 district. 22 (F) Compilation of Average Daily Attendance. 23 (1) Each school district shall, by July 1 of each year, 24 submit to the State Board of Education, on forms prescribed 25 by the State Board of Education, attendance figures for the 26 school year that began in the preceding calendar year. The 27 attendance information so transmitted shall identify the 28 average daily attendance figures for each month of the school 29 year, except that any days of attendance in August shall be 30 added to the month of September and any days of attendance in 31 June shall be added to the month of May. 32 Except as otherwise provided in this Section, days of 33 attendance by pupils shall be counted only for sessions of 34 not less than 5 clock hours of school work per day under SB1599 Enrolled -26- LRB9010085THpk 1 direct supervision of: (i) teachers, or (ii) non-teaching 2 personnel or volunteer personnel when engaging in 3 non-teaching duties and supervising in those instances 4 specified in subsection (a) of Section 10-22.34 and paragraph 5 10 of Section 34-18, with pupils of legal school age and in 6 kindergarten and grades 1 through 12. 7 Days of attendance by tuition pupils shall be accredited 8 only to the districts that pay the tuition to a recognized 9 school. 10 (2) Days of attendance by pupils of less than 5 clock 11 hours of school shall be subject to the following provisions 12 in the compilation of Average Daily Attendance. 13 (a) Pupils regularly enrolled in a public school 14 for only a part of the school day may be counted on the 15 basis of 1/6 day for every class hour of instruction of 16 40 minutes or more attended pursuant to such enrollment. 17 (b) Days of attendance may be less than 5 clock 18 hours on the opening and closing of the school term, and 19 upon the first day of pupil attendance, if preceded by a 20 day or days utilized as an institute or teachers' 21 workshop. 22 (c) A session of 4 or more clock hours may be 23 counted as a day of attendance upon certification by the 24 regional superintendent, and approved by the State 25 Superintendent of Education to the extent that the 26 district has been forced to use daily multiple sessions. 27 (d) A session of 3 or more clock hours may be 28 counted as a day of attendance (1) when the remainder of 29 the school day or at least 2 hours in the evening of that 30 day is utilized for an in-service training program for 31 teachers, up to a maximum of 5 days per school year of 32 which a maximum of 4 days of such 5 days may be used for 33 parent-teacher conferences, provided a district conducts 34 an in-service training program for teachers which has SB1599 Enrolled -27- LRB9010085THpk 1 been approved by the State Superintendent of Education; 2 or, in lieu of 4 such days, 2 full days may be used, in 3 which event each such day may be counted as a day of 4 attendance; and (2) when days in addition to those 5 provided in item (1) are scheduled by a school pursuant 6 to its school improvement plan adopted under Article 34 7 or its revised or amended school improvement plan adopted 8 under Article 2, provided that (i) such sessions of 3 or 9 more clock hours are scheduled to occur at regular 10 intervals, (ii) the remainder of the school days in which 11 such sessions occur are utilized for in-service training 12 programs or other staff development activities for 13 teachers, and (iii) a sufficient number of minutes of 14 school work under the direct supervision of teachers are 15 added to the school days between such regularly scheduled 16 sessions to accumulate not less than the number of 17 minutes by which such sessions of 3 or more clock hours 18 fall short of 5 clock hours. Any full days used for the 19 purposes of this paragraph shall not be considered for 20 computing average daily attendance. Days scheduled for 21 in-service training programs, staff development 22 activities, or parent-teacher conferences may be 23 scheduled separately for different grade levels and 24 different attendance centers of the district. 25 (e) A session of not less than one clock hour 26 teaching of hospitalized or homebound pupils on-site or 27 by telephone to the classroom may be counted as 1/2 day 28 of attendance, however these pupils must receive 4 or 29 more clock hours of instruction to be counted for a full 30 day of attendance. 31 (f) A session of at least 4 clock hours may be 32 counted as a day of attendance for first grade pupils, 33 and pupils in full day kindergartens, and a session of 2 34 or more hours may be counted as 1/2 day of attendance by SB1599 Enrolled -28- LRB9010085THpk 1 pupils in kindergartens which provide only 1/2 day of 2 attendance. 3 (g) For children with disabilities who are below 4 the age of 6 years and who cannot attend 2 or more clock 5 hours because of their disability or immaturity, a 6 session of not less than one clock hour may be counted as 7 1/2 day of attendance; however for such children whose 8 educational needs so require a session of 4 or more clock 9 hours may be counted as a full day of attendance. 10 (h) A recognized kindergarten which provides for 11 only 1/2 day of attendance by each pupil shall not have 12 more than 1/2 day of attendance counted in any 1 day. 13 However, kindergartens may count 2 1/2 days of attendance 14 in any 5 consecutive school days. When a pupil attends 15 such a kindergarten for 2 half days on any one school 16 day, the pupil shall have the following day as a day 17 absent from school, unless the school district obtains 18 permission in writing from the State Superintendent of 19 Education. Attendance at kindergartens which provide for 20 a full day of attendance by each pupil shall be counted 21 the same as attendance by first grade pupils. Only the 22 first year of attendance in one kindergarten shall be 23 counted, except in case of children who entered the 24 kindergarten in their fifth year whose educational 25 development requires a second year of kindergarten as 26 determined under the rules and regulations of the State 27 Board of Education. 28 (G) Equalized Assessed Valuation Data. 29 (1) For purposes of the calculation of Available Local 30 Resources required pursuant to subsection (D), the State 31 Board of Education shall secure from the Department of 32 Revenue the value as equalized or assessed by the Department 33 of Revenue of all taxable property of every school district 34 together with the applicable tax rate used in extending taxes SB1599 Enrolled -29- LRB9010085THpk 1 for the funds of the district as of September 30 of the 2 previous year. 3 This equalized assessed valuation, as adjusted further by 4 the requirements of this subsection, shall be utilized in the 5 calculation of Available Local Resources. 6 (2) The equalized assessed valuation in paragraph (1) 7 shall be adjusted, as applicable, in the following manner: 8 (a) For the purposes of calculating State aid under 9 this Section, with respect to any part of a school 10 district within a redevelopment project area in respect 11 to which a municipality has adopted tax increment 12 allocation financing pursuant to the Tax Increment 13 Allocation Redevelopment Act, Sections 11-74.4-1 through 14 11-74.4-11 of the Illinois Municipal Code or the 15 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 16 11-74.6-50 of the Illinois Municipal Code, no part of the 17 current equalized assessed valuation of real property 18 located in any such project area which is attributable to 19 an increase above the total initial equalized assessed 20 valuation of such property shall be used as part of the 21 equalized assessed valuation of the district, until such 22 time as all redevelopment project costs have been paid, 23 as provided in Section 11-74.4-8 of the Tax Increment 24 Allocation Redevelopment Act or in Section 11-74.6-35 of 25 the Industrial Jobs Recovery Law. For the purpose of the 26 equalized assessed valuation of the district, the total 27 initial equalized assessed valuation or the current 28 equalized assessed valuation, whichever is lower, shall 29 be used until such time as all redevelopment project 30 costs have been paid. 31 (b) The real property equalized assessed valuation 32 for a school district shall be adjusted by subtracting 33 from the real property value as equalized or assessed by 34 the Department of Revenue for the district an amount SB1599 Enrolled -30- LRB9010085THpk 1 computed by dividing the amount of any abatement of taxes 2 under Section 18-170 of the Property Tax Code by 3.00% 3 for a district maintaining grades kindergarten through 12 4 or by 2.30% for a district maintaining grades 5 kindergarten through 8, or by 1.20% for a district 6 maintaining grades 9 through 12 and adjusted by an amount 7 computed by dividing the amount of any abatement of taxes 8 under subsection (a) of Section 18-165 of the Property 9 Tax Code by the same percentage rates for district type 10 as specified in this subparagraph (c). 11 (H) Supplemental General State Aid. 12 (1) In addition to the general State aid a school 13 district is allotted pursuant to subsection (E), qualifying 14 school districts shall receive a grant, paid in conjunction 15 with a district's payments of general State aid, for 16 supplemental general State aid based upon the concentration 17 level of children from low-income households within the 18 school district. Supplemental State aid grants provided for 19 school districts under this subsection shall be appropriated 20 for distribution to school districts as part of the same line 21 item in which the general State financial aid of school 22 districts is appropriated under this Section. For purposes of 23 this subsection, the term "Low-Income Concentration Level" 24 shall be the low-income eligible pupil count from the most 25 recently available federal census divided by the Average 26 Daily Attendance of the school district. 27 (2) Supplemental general State aid pursuant to this 28 subsection shall be provided as follows: 29 (a) For any school district with a Low Income 30 Concentration Level of at least 20% and less than 35%, 31 the grant for any school year shall be $800 multiplied by 32 the low income eligible pupil count. 33 (b) For any school district with a Low Income 34 Concentration Level of at least 35% and less than 50%, SB1599 Enrolled -31- LRB9010085THpk 1 the grant for the 1998-1999 school year shall be $1,100 2 multiplied by the low income eligible pupil count. 3 (c) For any school district with a Low Income 4 Concentration Level of at least 50% and less than 60%, 5 the grant for the 1998-99 school year shall be $1,500 6 multiplied by the low income eligible pupil count. 7 (d) For any school district with a Low Income 8 Concentration Level of 60% or more, the grant for the 9 1998-99 school year shall be $1,900 multiplied by the low 10 income eligible pupil count. 11 (e) For the 1999-2000 school year, the per pupil 12 amount specified in subparagraphs (b), (c), and (d), 13 immediately above shall be increased by $100 to $1,200, 14 $1,600, and $2,000, respectively. 15 (f) For the 2000-2001 school year, the per pupil 16 amounts specified in subparagraphs (b), (c) and (d) 17 immediately above shall be increased to $1,230, $1,640, 18 and $2,050, respectively. 19 (3) School districts with an Average Daily Attendance of 20 more than 1,000 and less than 50,000 that qualify for 21 supplemental general State aid pursuant to this subsection 22 shall submit a plan to the State Board of Education prior to 23 October 30 of each year for the use of the funds resulting 24 from this grant of supplemental general State aid for the 25 improvement of instruction in which priority is given to 26 meeting the education needs of disadvantaged children. Such 27 plan shall be submitted in accordance with rules and 28 regulations promulgated by the State Board of Education. 29 (4) School districts with an Average Daily Attendance of 30 50,000 or more that qualify for supplemental general State 31 aid pursuant to this subsection shall be required to 32 distribute from funds available pursuant to this Section, no 33 less than $261,000,000 in accordance with the following 34 requirements: SB1599 Enrolled -32- LRB9010085THpk 1 (a) The required amounts shall be distributed to 2 the attendance centers within the district in proportion 3 to the number of pupils enrolled at each attendance 4 center who are eligible to receive free or reduced-price 5 lunches or breakfasts under the federal Child Nutrition 6 Act of 1966 and under the National School Lunch Act 7 during the immediately preceding school year. 8 (b) The distribution of these portions of 9 supplemental and general State aid among attendance 10 centers according to these requirements shall not be 11 compensated for or contravened by adjustments of the 12 total of other funds appropriated to any attendance 13 centers, and the Board of Education shall utilize funding 14 from one or several sources in order to fully implement 15 this provision annually prior to the opening of school. 16 (c) Each attendance center shall be provided by the 17 school district a distribution of noncategorical funds 18 and other categorical funds to which an attendance center 19 is entitled under law in order that the general State aid 20 and supplemental general State aid provided by 21 application of this subsection supplements rather than 22 supplants the noncategorical funds and other categorical 23 funds provided by the school district to the attendance 24 centers. 25 (d) Any funds made available under this subsection 26 that by reason of the provisions of this subsection are 27 not required to be allocated and provided to attendance 28 centers may be used and appropriated by the board of the 29 district for any lawful school purpose. 30 (e) Funds received by an attendance center pursuant 31 to this subsection shall be used by the attendance center 32 at the discretion of the principal and local school 33 council for programs to improve educational opportunities 34 at qualifying schools through the following programs and SB1599 Enrolled -33- LRB9010085THpk 1 services: early childhood education, reduced class size 2 or improved adult to student classroom ratio, enrichment 3 programs, remedial assistance, attendance improvement and 4 other educationally beneficial expenditures which 5 supplement the regular and basic programs as determined 6 by the State Board of Education. Funds provided shall 7 not be expended for any political or lobbying purposes as 8 defined by board rule. 9 (f) Each district subject to the provisions of this 10 subdivision (H)(4) shall submit an acceptable plan to 11 meet the educational needs of disadvantaged children, in 12 compliance with the requirements of this paragraph, to 13 the State Board of Education prior to July 15 of each 14 year. This plan shall be consistent with the decisions of 15 local school councils concerning the school expenditure 16 plans developed in accordance with part 4 of Section 17 34-2.3. The State Board shall approve or reject the plan 18 within 60 days after its submission. If the plan is 19 rejected, the district shall give written notice of 20 intent to modify the plan within 15 days of the 21 notification of rejection and then submit a modified plan 22 within 30 days after the date of the written notice of 23 intent to modify. Districts may amend approved plans 24 pursuant to rules promulgated by the State Board of 25 Education. 26 Upon notification by the State Board of Education 27 that the district has not submitted a plan prior to July 28 15 or a modified plan within the time period specified 29 herein, the State aid funds affected by that plan or 30 modified plan shall be withheld by the State Board of 31 Education until a plan or modified plan is submitted. 32 If the district fails to distribute State aid to 33 attendance centers in accordance with an approved plan, 34 the plan for the following year shall allocate funds, in SB1599 Enrolled -34- LRB9010085THpk 1 addition to the funds otherwise required by this 2 subsection, to those attendance centers which were 3 underfunded during the previous year in amounts equal to 4 such underfunding. 5 For purposes of determining compliance with this 6 subsection in relation to the requirements of attendance 7 center funding, each district subject to the provisions 8 of this subsection shall submit as a separate document by 9 December 1 of each year a report of expenditure data for 10 the prior year in addition to any modification of its 11 current plan. If it is determined that there has been a 12 failure to comply with the expenditure provisions of this 13 subsection regarding contravention or supplanting, the 14 State Superintendent of Education shall, within 60 days 15 of receipt of the report, notify the district and any 16 affected local school council. The district shall within 17 45 days of receipt of that notification inform the State 18 Superintendent of Education of the remedial or corrective 19 action to be taken, whether by amendment of the current 20 plan, if feasible, or by adjustment in the plan for the 21 following year. Failure to provide the expenditure 22 report or the notification of remedial or corrective 23 action in a timely manner shall result in a withholding 24 of the affected funds. 25 The State Board of Education shall promulgate rules 26 and regulations to implement the provisions of this 27 subsection. No funds shall be released under this 28 subdivision (H)(4) to any district that has not submitted 29 a plan that has been approved by the State Board of 30 Education. 31 (I) General State Aid for Newly Configured School Districts. 32 (1) For a new school district formed by combining 33 property included totally within 2 or more previously 34 existing school districts, for its first year of existence SB1599 Enrolled -35- LRB9010085THpk 1 the general State aid and supplemental general State aid 2 calculated under this Section shall be computed for the new 3 district and for the previously existing districts for which 4 property is totally included within the new district. If the 5 computation on the basis of the previously existing districts 6 is greater, a supplementary payment equal to the difference 7 shall be made for the first 4 years of existence of the new 8 district. 9 (2) For a school district which annexes all of the 10 territory of one or more entire other school districts, for 11 the first year during which the change of boundaries 12 attributable to such annexation becomes effective for all 13 purposes as determined under Section 7-9 or 7A-8, the general 14 State aid and supplemental general State aid calculated under 15 this Section shall be computed for the annexing district as 16 constituted after the annexation and for the annexing and 17 each annexed district as constituted prior to the annexation; 18 and if the computation on the basis of the annexing and 19 annexed districts as constituted prior to the annexation is 20 greater, a supplementary payment equal to the difference 21 shall be made for the first 4 years of existence of the 22 annexing school district as constituted upon such annexation. 23 (3) For 2 or more school districts which annex all of 24 the territory of one or more entire other school districts, 25 and for 2 or more community unit districts which result upon 26 the division (pursuant to petition under Section 11A-2) of 27 one or more other unit school districts into 2 or more parts 28 and which together include all of the parts into which such 29 other unit school district or districts are so divided, for 30 the first year during which the change of boundaries 31 attributable to such annexation or division becomes effective 32 for all purposes as determined under Section 7-9 or 11A-10, 33 as the case may be, the general State aid and supplemental 34 general State aid calculated under this Section shall be SB1599 Enrolled -36- LRB9010085THpk 1 computed for each annexing or resulting district as 2 constituted after the annexation or division and for each 3 annexing and annexed district, or for each resulting and 4 divided district, as constituted prior to the annexation or 5 division; and if the aggregate of the general State aid and 6 supplemental general State aid as so computed for the 7 annexing or resulting districts as constituted after the 8 annexation or division is less than the aggregate of the 9 general State aid and supplemental general State aid as so 10 computed for the annexing and annexed districts, or for the 11 resulting and divided districts, as constituted prior to the 12 annexation or division, then a supplementary payment equal to 13 the difference shall be made and allocated between or among 14 the annexing or resulting districts, as constituted upon such 15 annexation or division, for the first 4 years of their 16 existence. The total difference payment shall be allocated 17 between or among the annexing or resulting districts in the 18 same ratio as the pupil enrollment from that portion of the 19 annexed or divided district or districts which is annexed to 20 or included in each such annexing or resulting district bears 21 to the total pupil enrollment from the entire annexed or 22 divided district or districts, as such pupil enrollment is 23 determined for the school year last ending prior to the date 24 when the change of boundaries attributable to the annexation 25 or division becomes effective for all purposes. The amount 26 of the total difference payment and the amount thereof to be 27 allocated to the annexing or resulting districts shall be 28 computed by the State Board of Education on the basis of 29 pupil enrollment and other data which shall be certified to 30 the State Board of Education, on forms which it shall provide 31 for that purpose, by the regional superintendent of schools 32 for each educational service region in which the annexing and 33 annexed districts, or resulting and divided districts are 34 located. SB1599 Enrolled -37- LRB9010085THpk 1 (4) Any supplementary payment made under this subsection 2 (I) shall be treated as separate from all other payments made 3 pursuant to this Section. 4 (J) Supplementary Grants in Aid. 5 (1) Notwithstanding any other provisions of this 6 Section, the amount of the aggregate general State aid in 7 combination with supplemental general State aid under this 8 Section for which each school district is eligible for the 9 1998-1999 school year shall be no less than the amount of the 10 aggregate general State aid entitlement that was received by 11 the district under Section 18-8 (exclusive of amounts 12 received under subsections 5(p) and 5(p-5) of that Section) 13 for the 1997-98 school year, pursuant to the provisions of 14 that Section as it was then in effect. If a school district 15 qualifies to receive a supplementary payment made under this 16 subsection (J) for the 1998-1999 school year, the amount of 17 the aggregate general State aid in combination with 18 supplemental general State aid under this Section which that 19 district is eligible to receive for each school year 20 subsequent to the 1998-1999 school year shall be no less than 21 the amount of the aggregate general State aid entitlement 22 that was received by the district under Section 18-8 23 (exclusive of amounts received under subsections 5(p) and 24 5(p-5) of that Section) for the 1997-1998 school year, 25 pursuant to the provisions of that Section as it was then in 26 effect. 27 (2) If, as provided in paragraph (1) of this subsection 28 (J), a school district is to receive aggregate general State 29 aid in combination with supplemental general State aid under 30 this Section for the 1998-99 school year, or for the 1998-99 31 school year and any subsequent school year, that in any such 32 school year is less than the amount of the aggregate general 33 State aid entitlement that the district received for the 34 1997-98 school year, the school district shall also receive, SB1599 Enrolled -38- LRB9010085THpk 1 from a separate appropriation made for purposes of this 2 subsection (J), a supplementary payment that is equal to the 3 amount of the difference in the aggregate State aid figures 4 as described in paragraph (1). 5 (3) If the amount appropriated for supplementary 6 payments to school districts under this subsection (J) is 7 insufficient for that purpose, the supplementary payments 8 that districts are to receive under this subsection shall be 9 prorated according to the aggregate amount of the 10 appropriation made for purposes of this subsection. 11 (K) Grants to Laboratory and Alternative Schools. 12 In calculating the amount to be paid to the governing 13 board of a public university that operates a laboratory 14 school under this Section or to any alternative school that 15 is operated by a regional superintendent, the State Board of 16 Education shall require by rule such reporting requirements 17 as it deems necessary. 18 As used in this Section, "laboratory school" means a 19 public school which is created and operated by a public 20 university and approved by the State Board of Education. The 21 governing board of a public university which receives funds 22 from the State Board under this subsection (K) may not 23 increase the number of students enrolled in its laboratory 24 school from a single district, if that district is already 25 sending 50 or more students, except under a mutual agreement 26 between the school board of a student's district of residence 27 and the university which operates the laboratory school. A 28 laboratory school may not have more than 1,000 students, 29 excluding students with disabilities in a special education 30 program. 31 As used in this Section, "alternative school" means a 32 public school which is created and operated by a Regional 33 Superintendent of Schools and approved by the State Board of 34 Education. Such alternative schools may offer courses of SB1599 Enrolled -39- LRB9010085THpk 1 instruction for which credit is given in regular school 2 programs, courses to prepare students for the high school 3 equivalency testing program or vocational and occupational 4 training. A regional superintendent may contract with a 5 school district or a public community college district to 6 operate an alternative school. An alternative school serving 7 more than one educational service region may be established 8 by the regional superintendents of those educational service 9 regions. 10 Each laboratory and alternative school shall file, on 11 forms provided by the State Superintendent of Education, an 12 annual State aid claim which states the Average Daily 13 Attendance of the school's students by month. The best 3 14 months' Average Daily Attendance shall be computed for each 15 school. The general State aid entitlement shall be computed 16 by multiplying the applicable Average Daily Attendance by the 17 Foundation Level as determined under this Section. 18 (L) Payments, Additional Grants in Aid and Other 19 Requirements. 20 (1) For a school district operating under the financial 21 supervision of an Authority created under Article 34A, the 22 general State aid otherwise payable to that district under 23 this Section, but not the supplemental general State aid, 24 shall be reduced by an amount equal to the budget for the 25 operations of the Authority as certified by the Authority to 26 the State Board of Education, and an amount equal to such 27 reduction shall be paid to the Authority created for such 28 district for its operating expenses in the manner provided in 29 Section 18-11. The remainder of general State school aid for 30 any such district shall be paid in accordance with Article 31 34A when that Article provides for a disposition other than 32 that provided by this Article. 33 (2) Impaction. Impaction payments shall be made as 34 provided for in Section 18-4.2. SB1599 Enrolled -40- LRB9010085THpk 1 (3) Summer school. Summer school payments shall be made 2 as provided in Section 18-4.3. 3 (M) Education Funding Advisory Board. 4 The Education Funding Advisory Board, hereinafter in this 5 subsection (M) referred to as the "Board", is hereby created. 6 The Board shall consist of 5 members who are appointed by the 7 Governor, by and with the advice and consent of the Senate. 8 The members appointed shall include representatives of 9 education, business, and the general public. One of the 10 members so appointed shall be designated by the Governor at 11 the time the appointment is made as the chairperson of the 12 Board. The initial members of the Board may be appointed any 13 time after the effective date of this amendatory Act of 1997. 14 The regular term of each member of the Board shall be for 4 15 years from the third Monday of January of the year in which 16 the term of the member's appointment is to commence, except 17 that of the 5 initial members appointed to serve on the 18 Board, the member who is appointed as the chairperson shall 19 serve for a term that commences on the date of his or her 20 appointment and expires on the third Monday of January, 2002, 21 and the remaining 4 members, by lots drawn at the first 22 meeting of the Board that is held after all 5 members are 23 appointed, shall determine 2 of their number to serve for 24 terms that commence on the date of their respective 25 appointments and expire on the third Monday of January, 2001, 26 and 2 of their number to serve for terms that commence on the 27 date of their respective appointments and expire on the third 28 Monday of January, 2000. All members appointed to serve on 29 the Board shall serve until their respective successors are 30 appointed and confirmed. Vacancies shall be filled in the 31 same manner as original appointments. If a vacancy in 32 membership occurs at a time when the Senate is not in 33 session, the Governor shall make a temporary appointment 34 until the next meeting of the Senate, when he or she shall SB1599 Enrolled -41- LRB9010085THpk 1 appoint, by and with the advice and consent of the Senate, a 2 person to fill that membership for the unexpired term. If 3 the Senate is not in session when the initial appointments 4 are made, those appointments shall be made as in the case of 5 vacancies. 6 The Education Funding Advisory Board shall be deemed 7 established, and the initial members appointed by the 8 Governor to serve as members of the Board shall take office, 9 on the date that the Governor makes his or her appointment of 10 the fifth initial member of the Board, whether those initial 11 members are then serving pursuant to appointment and 12 confirmation or pursuant to temporary appointments that are 13 made by the Governor as in the case of vacancies. 14 The State Board of Education shall provide such staff 15 assistance to the Education Funding Advisory Board as is 16 reasonably required for the proper performance by the Board 17 of its responsibilities. 18 For school years after the 2000-2001 school year, the 19 Education Funding Advisory Board, in consultation with the 20 State Board of Education, shall make recommendations as 21 provided in this subsection (M) to the General Assembly for 22 the foundation level under subdivision (B)(3) of this Section 23 and for the supplemental general State aid grant level under 24 subsection (H) of this Section for districts with high 25 concentrations of children from poverty. The recommended 26 foundation level shall be determined based on a methodology 27 which incorporates the basic education expenditures of 28 low-spending schools exhibiting high academic performance. 29 The Education Funding Advisory Board shall make such 30 recommendations to the General Assembly on January 1 of odd 31 numbered years, beginning January 1, 2001. 32 (N) General State Aid Adjustment Grant. 33 (1) Any school district subject to property tax 34 extension limitations as imposed under the provisions of the SB1599 Enrolled -42- LRB9010085THpk 1 Property Tax Extension Limitation Law shall be entitled to 2 receive, subject to the qualifications and requirements of 3 this subsection, a general State aid adjustment grant. 4 Eligibility for this grant shall be determined on an annual 5 basis and claims for grant payments shall be paid subject to 6 appropriations made specific to this subsection. For 7 purposes of this subsection the following terms shall have 8 the following meanings: 9 "Budget Year": The school year for which general State 10 aid is calculated and awarded under subsection (E). 11 "Current Year": The school year immediately preceding 12 the Budget Year. 13 "Base Tax Year": The property tax levy year used to 14 calculate the Budget Year allocation of general State aid. 15 "Preceding Tax Year": The property tax levy year 16 immediately preceding the Base Tax Year. 17 "Extension Limitation Ratio": A numerical ratio, 18 certified by a school district's County Clerk, in which the 19 numerator is the Base Tax Year's tax extension amount 20 resulting from the Operating Tax Rate and the denominator is 21 the Preceding Tax Year's tax extension amount resulting from 22 the Operating Tax Rate. 23 "Operating Tax Rate": The operating tax rate as defined 24 in subsection (A). 25 (2) To qualify for a general State aid adjustment grant, 26 a school district must meet all of the following eligibility 27 criteria for each Budget Year for which a grant is claimed: 28 (a) The Operating Tax Rate of the school district 29 in the Preceding Tax Year was at least 3.00% in the case 30 of a school district maintaining grades kindergarten 31 through 12, at least 2.30% in the case of a school 32 district maintaining grades kindergarten through 8, or at 33 least 1.41% in the case of a school district maintaining 34 grades 9 through 12. SB1599 Enrolled -43- LRB9010085THpk 1 (b) The Operating Tax Rate of the school district 2 for the Base Tax Year was reduced by the Clerk of the 3 County as a result of the requirements of the Property 4 Tax Extension Limitation Law. 5 (c) The Available Local Resources per pupil of the 6 school district as calculated pursuant to subsection (D) 7 using the Base Tax Year are less than the product of 1.75 8 times the Foundation Level for the Budget Year. 9 (d) The school district has filed a proper and 10 timely claim for a general State aid adjustment grant as 11 required under this subsection. 12 (3) A claim for grant assistance under this subsection 13 shall be filed with the State Board of Education on or before 14 January 1 of the Current Year for a grant for the Budget 15 Year. The claim shall be made on forms prescribed by the 16 State Board of Education and must be accompanied by a written 17 statement from the Clerk of the County, certifying: 18 (a) That the school district has its extension for 19 the Base Tax Year reduced as a result of the Property Tax 20 Extension Limitation Law. 21 (b) That the Operating Tax Rate of the school 22 district for the Preceding Tax Year met the tax rate 23 requirements of subdivision (N)(2) of this Section. 24 (c) The Extension Limitation Ratio as that term is 25 defined in this subsection. 26 (4) On or before August 1 of the Budget Year the State 27 Board of Education shall calculate, for all school districts 28 meeting the other requirements of this subsection, the amount 29 of the general State aid adjustment grant, if any, that the 30 school districts are eligible to receive in the Budget Year. 31 The amount of the general State aid adjustment grant shall be 32 calculated as follows: 33 (a) Determine the school district's general State 34 aid grant for the Budget Year as provided in accordance SB1599 Enrolled -44- LRB9010085THpk 1 with the provisions of subsection (E). 2 (b) Determine the school district's adjusted level 3 of general State aid by utilizing in the calculation of 4 Available Local Resources an equalized assessed valuation 5 that is the equalized assessed valuation of the Preceding 6 Tax Year multiplied by the Extension Limitation Ratio. 7 (c) Subtract the sum derived in subparagraph (a) 8 from the sum derived in subparagraph (b). If the result 9 is a positive number, that amount shall be the general 10 State aid adjustment grant that the district is eligible 11 to receive. 12 (5) The State Board of Education shall in the Current 13 Year, based upon claims filed in the Current Year, recommend 14 to the General Assembly an appropriation amount for the 15 general State aid adjustment grants to be made in the Budget 16 Year. 17 (6) Claims for general State aid adjustment grants shall 18 be paid in a lump sum on or before January 1 of the Budget 19 Year only from appropriations made by the General Assembly 20 expressly for claims under this subsection. No such claims 21 may be paid from amounts appropriated for any other purpose 22 provided for under this Section. In the event that the 23 appropriation for claims under this subsection is 24 insufficient to meet all Budget Year claims for a general 25 State aid adjustment grant, the appropriation available shall 26 be proportionately prorated by the State Board of Education 27 amongst all districts filing for and entitled to payments. 28 (7) The State Board of Education shall promulgate the 29 required claim forms and rules necessary to implement the 30 provisions of this subsection. 31 (O) References. 32 (1) References in other laws to the various subdivisions 33 of Section 18-8 as that Section existed before its repeal and 34 replacement by this Section 18-8.05 shall be deemed to refer SB1599 Enrolled -45- LRB9010085THpk 1 to the corresponding provisions of this Section 18-8.05, to 2 the extent that those references remain applicable. 3 (2) References in other laws to State Chapter 1 funds 4 shall be deemed to refer to the supplemental general State 5 aid provided under subsection (H) of this Section. 6 (Source: P.A. 90-548, eff. 7-1-98.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law, except that the provisions changing Sections 9 2-3.66, 10-22.20, 13A-8, and 18-8.05 of the School Code take 10 effect July 1, 1998.