State of Illinois
90th General Assembly
Legislation

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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 Education at 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
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 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 in subsections 5(a)  through
13        5(d)  of  Section  18-8  or  subsection  (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  provide  new  and
19    additional funding 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  programs all alternative schools in that
27    region.  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)
33    Part  B  of  Section  18-8.05  18-8  upon  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.
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 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
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 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
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 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.
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 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
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 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
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 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.

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