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90_SB1651 105 ILCS 5/18-8.05 105 ILCS 235/15-5 105 ILCS 235/15-10 105 ILCS 235/15-15 105 ILCS 235/15-20 Amends the School Code. Revises the State aid formula applicable during the 1998-99 and subsequent school years. Changes the manner of computing the Available Local Resources for school districts maintaining grades 9 through 12 and the manner of adjusting the equalized assessed valuation of the taxable property of those districts because of enterprise zone and other tax abatements by reducing a component of the formulas used to make those computations and adjustments to 1.10% from 1.20%. Also changes the manner of determining the Low Income Concentration Level of school districts of less than 500,000 inhabitants for the 1999-2000 and 2000-2001 school years. Deletes language requiring that if the aggregate amount of any hold-harmless payments that school districts are to receive in any such school year, as computed under the applicable formula for that school year, is greater than the aggregate amount appropriated for that purpose, the hold-harmless payments that school districts receive for that school year are to be prorated accordingly. Also amends the General State Aid Continuing Appropriation Law. Changes the Law's short title and includes hold-harmless payments required to be made to school districts under the State aid formula within the ambit of that Law's application. Effective immediately, except the amendment of the School Code takes effect July 1, 1998. SDS/bill0066/jwm SDS/bill0066/jwm 1 AN ACT relating to education funding. 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 Section 18-8.05 as follows: 6 (105 ILCS 5/18-8.05) 7 (This Section may contain text from a Public Act with a 8 delayed effective date.) 9 Sec. 18-8.05. Basis for apportionment of general State 10 financial aid and supplemental general State aid to the 11 common schools for the 1998-1999 and subsequent school years. 12 (A) General Provisions. 13 (1) The provisions of this Section apply to the 14 1998-1999 and subsequent school years. The system of general 15 State financial aid provided for in this Section is designed 16 to assure that, through a combination of State financial aid 17 and required local resources, the financial support provided 18 each pupil in Average Daily Attendance equals or exceeds a 19 prescribed per pupil Foundation Level. This formula approach 20 imputes a level of per pupil Available Local Resources and 21 provides for the basis to calculate a per pupil level of 22 general State financial aid that, when added to Available 23 Local Resources, equals or exceeds the Foundation Level. The 24 amount of per pupil general State financial aid for school 25 districts, in general, varies in inverse relation to 26 Available Local Resources. Per pupil amounts are based upon 27 each school district's Average Daily Attendance as that term 28 is defined in this Section. 29 (2) In addition to general State financial aid, school 30 districts with specified levels or concentrations of pupils 31 from low income households are eligible to receive -2- SDS/bill0066/jwm 1 supplemental general State financial aid grants as provided 2 pursuant to subsection (H). The supplemental State aid grants 3 provided for school districts under subsection (H) shall be 4 appropriated for distribution to school districts as part of 5 the same line item in which the general State financial aid 6 of school districts is appropriated under this Section. 7 (3) To receive financial assistance under this Section, 8 school districts are required to file claims with the State 9 Board of Education, subject to the following requirements: 10 (a) Any school district which fails for any given 11 school year to maintain school as required by law, or to 12 maintain a recognized school is not eligible to file for 13 such school year any claim upon the Common School Fund. 14 In case of nonrecognition of one or more attendance 15 centers in a school district otherwise operating 16 recognized schools, the claim of the district shall be 17 reduced in the proportion which the Average Daily 18 Attendance in the attendance center or centers bear to 19 the Average Daily Attendance in the school district. A 20 "recognized school" means any public school which meets 21 the standards as established for recognition by the State 22 Board of Education. A school district or attendance 23 center not having recognition status at the end of a 24 school term is entitled to receive State aid payments due 25 upon a legal claim which was filed while it was 26 recognized. 27 (b) School district claims filed under this Section 28 are subject to Sections 18-9, 18-10, and 18-12, except as 29 otherwise provided in this Section. 30 (c) If a school district operates a full year 31 school under Section 10-19.1, the general State aid to 32 the school district shall be determined by the State 33 Board of Education in accordance with this Section as 34 near as may be applicable. -3- SDS/bill0066/jwm 1 (d) Claims for financial assistance under this 2 Section shall not be recomputed except as expressly 3 provided under this Section. 4 (4) Except as provided in subsections (H) and (L), the 5 board of any district receiving any of the grants provided 6 for in this Section may apply those funds to any fund so 7 received for which that board is authorized to make 8 expenditures by law. 9 School districts are not required to exert a minimum 10 Operating Tax Rate in order to qualify for assistance under 11 this Section. 12 (5) As used in this Section the following terms, when 13 capitalized, shall have the meaning ascribed herein: 14 (a) "Average Daily Attendance": A count of pupil 15 attendance in school, averaged as provided for in 16 subsection (C) and utilized in deriving per pupil 17 financial support levels. 18 (b) "Available Local Resources": A computation of 19 local financial support, calculated on the basis Average 20 Daily Attendance and derived as provided pursuant to 21 subsection (D). 22 (c) "Corporate Personal Property Replacement 23 Taxes": Funds paid to local school districts pursuant to 24 "An Act in relation to the abolition of ad valorem 25 personal property tax and the replacement of revenues 26 lost thereby, and amending and repealing certain Acts and 27 parts of Acts in connection therewith", certified August 28 14, 1979, as amended (Public Act 81-1st S.S.-1). 29 (d) "Foundation Level": A prescribed level of per 30 pupil financial support as provided for in subsection 31 (B). 32 (e) "Operating Tax Rate": All school district 33 property taxes extended for all purposes, except 34 community college educational purposes for the payment of -4- SDS/bill0066/jwm 1 tuition under Section 6-1 of the Public Community College 2 Act, Bond and Interest, Summer School, Rent, Capital 3 Improvement, and Vocational Education Building purposes. 4 (B) Foundation Level. 5 (1) The Foundation Level is a figure established by the 6 State representing the minimum level of per pupil financial 7 support that should be available to provide for the basic 8 education of each pupil in Average Daily Attendance. As set 9 forth in this Section, each school district is assumed to 10 exert a sufficient local taxing effort such that, in 11 combination with the aggregate of general State financial aid 12 provided the district, an aggregate of State and local 13 resources are available to meet the basic education needs of 14 pupils in the district. 15 (2) For the 1998-1999 school year, the Foundation Level 16 of support is $4,225. For the 1999-2000 school year, the 17 Foundation Level of support is $4,325. For the 2000-2001 18 school year, the Foundation Level of support is $4,425. 19 (3) For the 2001-2002 school year and each school year 20 thereafter, the Foundation Level of support is $4,425 or such 21 greater amount as may be established by law by the General 22 Assembly. 23 (C) Average Daily Attendance. 24 (1) For purposes of calculating general State aid 25 pursuant to subsection (E), an Average Daily Attendance 26 figure shall be utilized. The Average Daily Attendance 27 figure for formula calculation purposes shall be the monthly 28 average of the actual number of pupils in attendance of each 29 school district, as further averaged for the best 3 months of 30 pupil attendance for each school district. In compiling the 31 figures for the number of pupils in attendance, school 32 districts and the State Board of Education shall, for 33 purposes of general State aid funding, conform attendance -5- SDS/bill0066/jwm 1 figures to the requirements of subsection (F). 2 (2) The Average Daily Attendance figures utilized in 3 subsection (E) shall be the requisite attendance data for the 4 school year immediately preceding the school year for which 5 general State aid is being calculated. 6 (D) Available Local Resources. 7 (1) For purposes of calculating general State aid 8 pursuant to subsection (E), a representation of Available 9 Local Resources per pupil, as that term is defined and 10 determined in this subsection, shall be utilized. Available 11 Local Resources per pupil shall include a calculated dollar 12 amount representing local school district revenues from local 13 property taxes and from Corporate Personal Property 14 Replacement Taxes, expressed on the basis of pupils in 15 Average Daily Attendance. 16 (2) In determining a school district's revenue from 17 local property taxes, the State Board of Education shall 18 utilize the equalized assessed valuation of all taxable 19 property of each school district as of September 30 of the 20 previous year. The equalized assessed valuation utilized 21 shall be obtained and determined as provided in subsection 22 (G). 23 (3) For school districts maintaining grades kindergarten 24 through 12, local property tax revenues per pupil shall be 25 calculated as the product of the applicable equalized 26 assessed valuation for the district multiplied by 3.00%, and 27 divided by the district's Average Daily Attendance figure. 28 For school districts maintaining grades kindergarten through 29 8, local property tax revenues per pupil shall be calculated 30 as the product of the applicable equalized assessed valuation 31 for the district multiplied by 2.30%, and divided by the 32 district's Average Daily Attendance figure. For school 33 districts maintaining grades 9 through 12, local property tax 34 revenues per pupil shall be the applicable equalized assessed -6- SDS/bill0066/jwm 1 valuation of the district multiplied by 1.10%1.20%, and 2 divided by the district's Average Daily Attendance figure. 3 (4) The Corporate Personal Property Replacement Taxes 4 paid to each school district during the calendar year 2 years 5 before the calendar year in which a school year begins, 6 divided by the Average Daily Attendance figure for that 7 district, shall be added to the local property tax revenues 8 per pupil as derived by the application of the immediately 9 preceding paragraph (3). The sum of these per pupil figures 10 for each school district shall constitute Available Local 11 Resources as that term is utilized in subsection (E) in the 12 calculation of general State aid. 13 (E) Computation of General State Aid. 14 (1) For each school year, the amount of general State 15 aid allotted to a school district shall be computed by the 16 State Board of Education as provided in this subsection. 17 (2) For any school district for which Available Local 18 Resources per pupil is less than the product of 0.93 times 19 the Foundation Level, general State aid for that district 20 shall be calculated as an amount equal to the Foundation 21 Level minus Available Local Resources, multiplied by the 22 Average Daily Attendance of the school district. 23 (3) For any school district for which Available Local 24 Resources per pupil is equal to or greater than the product 25 of 0.93 times the Foundation Level and less than the product 26 of 1.75 times the Foundation Level, the general State aid per 27 pupil shall be a decimal proportion of the Foundation Level 28 derived using a linear algorithm. Under this linear 29 algorithm, the calculated general State aid per pupil shall 30 decline in direct linear fashion from 0.07 times the 31 Foundation Level for a school district with Available Local 32 Resources equal to the product of 0.93 times the Foundation 33 Level, to 0.05 times the Foundation Level for a school 34 district with Available Local Resources equal to the product -7- SDS/bill0066/jwm 1 of 1.75 times the Foundation Level. The allocation of 2 general State aid for school districts subject to this 3 paragraph 3 shall be the calculated general State aid per 4 pupil figure multiplied by the Average Daily Attendance of 5 the school district. 6 (4) For any school district for which Available Local 7 Resources per pupil equals or exceeds the product of 1.75 8 times the Foundation Level, the general State aid for the 9 school district shall be calculated as the product of $218 10 multiplied by the Average Daily Attendance of the school 11 district. 12 (F) Compilation of Average Daily Attendance. 13 (1) Each school district shall, by July 1 of each year, 14 submit to the State Board of Education, on forms prescribed 15 by the State Board of Education, attendance figures for the 16 school year that began in the preceding calendar year. The 17 attendance information so transmitted shall identify the 18 average daily attendance figures for each month of the school 19 year, except that any days of attendance in August shall be 20 added to the month of September and any days of attendance in 21 June shall be added to the month of May. 22 Except as otherwise provided in this Section, days of 23 attendance by pupils shall be counted only for sessions of 24 not less than 5 clock hours of school work per day under 25 direct supervision of: (i) teachers, or (ii) non-teaching 26 personnel or volunteer personnel when engaging in 27 non-teaching duties and supervising in those instances 28 specified in subsection (a) of Section 10-22.34 and paragraph 29 10 of Section 34-18, with pupils of legal school age and in 30 kindergarten and grades 1 through 12. 31 Days of attendance by tuition pupils shall be accredited 32 only to the districts that pay the tuition to a recognized 33 school. 34 (2) Days of attendance by pupils of less than 5 clock -8- SDS/bill0066/jwm 1 hours of school shall be subject to the following provisions 2 in the compilation of Average Daily Attendance. 3 (a) Pupils regularly enrolled in a public school 4 for only a part of the school day may be counted on the 5 basis of 1/6 day for every class hour of instruction of 6 40 minutes or more attended pursuant to such enrollment. 7 (b) Days of attendance may be less than 5 clock 8 hours on the opening and closing of the school term, and 9 upon the first day of pupil attendance, if preceded by a 10 day or days utilized as an institute or teachers' 11 workshop. 12 (c) A session of 4 or more clock hours may be 13 counted as a day of attendance upon certification by the 14 regional superintendent, and approved by the State 15 Superintendent of Education to the extent that the 16 district has been forced to use daily multiple sessions. 17 (d) A session of 3 or more clock hours may be 18 counted as a day of attendance (1) when the remainder of 19 the school day or at least 2 hours in the evening of that 20 day is utilized for an in-service training program for 21 teachers, up to a maximum of 5 days per school year of 22 which a maximum of 4 days of such 5 days may be used for 23 parent-teacher conferences, provided a district conducts 24 an in-service training program for teachers which has 25 been approved by the State Superintendent of Education; 26 or, in lieu of 4 such days, 2 full days may be used, in 27 which event each such day may be counted as a day of 28 attendance; and (2) when days in addition to those 29 provided in item (1) are scheduled by a school pursuant 30 to its school improvement plan adopted under Article 34 31 or its revised or amended school improvement plan adopted 32 under Article 2, provided that (i) such sessions of 3 or 33 more clock hours are scheduled to occur at regular 34 intervals, (ii) the remainder of the school days in which -9- SDS/bill0066/jwm 1 such sessions occur are utilized for in-service training 2 programs or other staff development activities for 3 teachers, and (iii) a sufficient number of minutes of 4 school work under the direct supervision of teachers are 5 added to the school days between such regularly scheduled 6 sessions to accumulate not less than the number of 7 minutes by which such sessions of 3 or more clock hours 8 fall short of 5 clock hours. Any full days used for the 9 purposes of this paragraph shall not be considered for 10 computing average daily attendance. Days scheduled for 11 in-service training programs, staff development 12 activities, or parent-teacher conferences may be 13 scheduled separately for different grade levels and 14 different attendance centers of the district. 15 (e) A session of not less than one clock hour 16 teaching of hospitalized or homebound pupils on-site or 17 by telephone to the classroom may be counted as 1/2 day 18 of attendance, however these pupils must receive 4 or 19 more clock hours of instruction to be counted for a full 20 day of attendance. 21 (f) A session of at least 4 clock hours may be 22 counted as a day of attendance for first grade pupils, 23 and pupils in full day kindergartens, and a session of 2 24 or more hours may be counted as 1/2 day of attendance by 25 pupils in kindergartens which provide only 1/2 day of 26 attendance. 27 (g) For children with disabilities who are below 28 the age of 6 years and who cannot attend 2 or more clock 29 hours because of their disability or immaturity, a 30 session of not less than one clock hour may be counted as 31 1/2 day of attendance; however for such children whose 32 educational needs so require a session of 4 or more clock 33 hours may be counted as a full day of attendance. 34 (h) A recognized kindergarten which provides for -10- SDS/bill0066/jwm 1 only 1/2 day of attendance by each pupil shall not have 2 more than 1/2 day of attendance counted in any 1 day. 3 However, kindergartens may count 2 1/2 days of attendance 4 in any 5 consecutive school days. When a pupil attends 5 such a kindergarten for 2 half days on any one school 6 day, the pupil shall have the following day as a day 7 absent from school, unless the school district obtains 8 permission in writing from the State Superintendent of 9 Education. Attendance at kindergartens which provide for 10 a full day of attendance by each pupil shall be counted 11 the same as attendance by first grade pupils. Only the 12 first year of attendance in one kindergarten shall be 13 counted, except in case of children who entered the 14 kindergarten in their fifth year whose educational 15 development requires a second year of kindergarten as 16 determined under the rules and regulations of the State 17 Board of Education. 18 (G) Equalized Assessed Valuation Data. 19 (1) For purposes of the calculation of Available Local 20 Resources required pursuant to subsection (D), the State 21 Board of Education shall secure from the Department of 22 Revenue the value as equalized or assessed by the Department 23 of Revenue of all taxable property of every school district 24 together with the applicable tax rate used in extending taxes 25 for the funds of the district as of September 30 of the 26 previous year. 27 This equalized assessed valuation, as adjusted further by 28 the requirements of this subsection, shall be utilized in the 29 calculation of Available Local Resources. 30 (2) The equalized assessed valuation in paragraph (1) 31 shall be adjusted, as applicable, in the following manner: 32 (a) For the purposes of calculating State aid under 33 this Section, with respect to any part of a school 34 district within a redevelopment project area in respect -11- SDS/bill0066/jwm 1 to which a municipality has adopted tax increment 2 allocation financing pursuant to the Tax Increment 3 Allocation Redevelopment Act, Sections 11-74.4-1 through 4 11-74.4-11 of the Illinois Municipal Code or the 5 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 6 11-74.6-50 of the Illinois Municipal Code, no part of the 7 current equalized assessed valuation of real property 8 located in any such project area which is attributable to 9 an increase above the total initial equalized assessed 10 valuation of such property shall be used as part of the 11 equalized assessed valuation of the district, until such 12 time as all redevelopment project costs have been paid, 13 as provided in Section 11-74.4-8 of the Tax Increment 14 Allocation Redevelopment Act or in Section 11-74.6-35 of 15 the Industrial Jobs Recovery Law. For the purpose of the 16 equalized assessed valuation of the district, the total 17 initial equalized assessed valuation or the current 18 equalized assessed valuation, whichever is lower, shall 19 be used until such time as all redevelopment project 20 costs have been paid. 21 (b) The real property equalized assessed valuation 22 for a school district shall be adjusted by subtracting 23 from the real property value as equalized or assessed by 24 the Department of Revenue for the district an amount 25 computed by dividing the amount of any abatement of taxes 26 under Section 18-170 of the Property Tax Code by 3.00% 27 for a district maintaining grades kindergarten through 12 28 or by 2.30% for a district maintaining grades 29 kindergarten through 8, or by 1.10%1.20%for a district 30 maintaining grades 9 through 12 and adjusted by an amount 31 computed by dividing the amount of any abatement of taxes 32 under subsection (a) of Section 18-165 of the Property 33 Tax Code by the same percentage rates for district type 34 as specified in this subparagraph (c). -12- SDS/bill0066/jwm 1 (H) Supplemental General State Aid. 2 (1) In addition to the general State aid a school 3 district is allotted pursuant to subsection (E), qualifying 4 school districts shall receive a grant, paid in conjunction 5 with a district's payments of general State aid, for 6 supplemental general State aid based upon the concentration 7 level of children from low-income households within the 8 school district. Supplemental State aid grants provided for 9 school districts under this subsection shall be appropriated 10 for distribution to school districts as part of the same line 11 item in which the general State financial aid of school 12 districts is appropriated under this Section. For purposes of 13 this subsection, the term "Low-Income Concentration Level" 14 shall be the low-income eligible pupil count from the most 15 recently available federal census divided by the Average 16 Daily Attendance of the school district, except that for 17 purposes of determining the supplemental general State aid 18 grant to be provided under this subsection for the 1999-2000 19 and the 2000-2001 school years to a qualifying school 20 district that has a population of less than 500,000 21 inhabitants, the "Low-Income Concentration Level" shall be 22 the low-income eligible pupil count from the most recently 23 available federal census divided (i) for the 1999-2000 school 24 year, by the Average Daily Attendance of the school district 25 for the 1997-1998 school year or by Average Daily Attendance 26 of the school district for the 1998-1999 school year, 27 whichever is lower, and (ii) for the 2000-2001 school year, 28 by the Average Daily Attendance of the school district for 29 the 1997-1998 school year or by the Average Daily Attendance 30 of the school district for the 1998-1999 school year or by 31 the Average Daily Attendance of the school district for the 32 1999-2000 school year, whichever is the lowest. 33 (2) Supplemental general State aid pursuant to this 34 subsection shall be provided as follows: -13- SDS/bill0066/jwm 1 (a) For any school district with a Low Income 2 Concentration Level of at least 20% and less than 35%, 3 the grant for any school year shall be $800 multiplied by 4 the low income eligible pupil count. 5 (b) For any school district with a Low Income 6 Concentration Level of at least 35% and less than 50%, 7 the grant for the 1998-1999 school year shall be $1,100 8 multiplied by the low income eligible pupil count. 9 (c) For any school district with a Low Income 10 Concentration Level of at least 50% and less than 60%, 11 the grant for the 1998-99 school year shall be $1,500 12 multiplied by the low income eligible pupil count. 13 (d) For any school district with a Low Income 14 Concentration Level of 60% or more, the grant for the 15 1998-99 school year shall be $1,900 multiplied by the low 16 income eligible pupil count. 17 (e) For the 1999-2000 school year, the per pupil 18 amount specified in subparagraphs (b), (c), and (d), 19 immediately above shall be increased by $100 to $1,200, 20 $1,600, and $2,000, respectively. 21 (f) For the 2000-2001 school year, the per pupil 22 amounts specified in subparagraphs (b), (c) and (d) 23 immediately above shall be increased to $1,230, $1,640, 24 and $2,050, respectively. 25 (3) School districts with an Average Daily Attendance of 26 more than 1,000 and less than 50,000 that qualify for 27 supplemental general State aid pursuant to this subsection 28 shall submit a plan to the State Board of Education prior to 29 October 30 of each year for the use of the funds resulting 30 from this grant of supplemental general State aid for the 31 improvement of instruction in which priority is given to 32 meeting the education needs of disadvantaged children. Such 33 plan shall be submitted in accordance with rules and 34 regulations promulgated by the State Board of Education. -14- SDS/bill0066/jwm 1 (4) School districts with an Average Daily Attendance of 2 50,000 or more that qualify for supplemental general State 3 aid pursuant to this subsection shall be required to 4 distribute from funds available pursuant to this Section, no 5 less than $261,000,000 in accordance with the following 6 requirements: 7 (a) The required amounts shall be distributed to 8 the attendance centers within the district in proportion 9 to the number of pupils enrolled at each attendance 10 center who are eligible to receive free or reduced-price 11 lunches or breakfasts under the federal Child Nutrition 12 Act of 1966 and under the National School Lunch Act 13 during the immediately preceding school year. 14 (b) The distribution of these portions of 15 supplemental and general State aid among attendance 16 centers according to these requirements shall not be 17 compensated for or contravened by adjustments of the 18 total of other funds appropriated to any attendance 19 centers, and the Board of Education shall utilize funding 20 from one or several sources in order to fully implement 21 this provision annually prior to the opening of school. 22 (c) Each attendance center shall be provided by the 23 school district a distribution of noncategorical funds 24 and other categorical funds to which an attendance center 25 is entitled under law in order that the general State aid 26 and supplemental general State aid provided by 27 application of this subsection supplements rather than 28 supplants the noncategorical funds and other categorical 29 funds provided by the school district to the attendance 30 centers. 31 (d) Any funds made available under this subsection 32 that by reason of the provisions of this subsection are 33 not required to be allocated and provided to attendance 34 centers may be used and appropriated by the board of the -15- SDS/bill0066/jwm 1 district for any lawful school purpose. 2 (e) Funds received by an attendance center pursuant 3 to this subsection shall be used by the attendance center 4 at the discretion of the principal and local school 5 council for programs to improve educational opportunities 6 at qualifying schools through the following programs and 7 services: early childhood education, reduced class size 8 or improved adult to student classroom ratio, enrichment 9 programs, remedial assistance, attendance improvement and 10 other educationally beneficial expenditures which 11 supplement the regular and basic programs as determined 12 by the State Board of Education. Funds provided shall 13 not be expended for any political or lobbying purposes as 14 defined by board rule. 15 (f) Each district subject to the provisions of this 16 subdivision (H)(4) shall submit an acceptable plan to 17 meet the educational needs of disadvantaged children, in 18 compliance with the requirements of this paragraph, to 19 the State Board of Education prior to July 15 of each 20 year. This plan shall be consistent with the decisions of 21 local school councils concerning the school expenditure 22 plans developed in accordance with part 4 of Section 23 34-2.3. The State Board shall approve or reject the plan 24 within 60 days after its submission. If the plan is 25 rejected, the district shall give written notice of 26 intent to modify the plan within 15 days of the 27 notification of rejection and then submit a modified plan 28 within 30 days after the date of the written notice of 29 intent to modify. Districts may amend approved plans 30 pursuant to rules promulgated by the State Board of 31 Education. 32 Upon notification by the State Board of Education 33 that the district has not submitted a plan prior to July 34 15 or a modified plan within the time period specified -16- SDS/bill0066/jwm 1 herein, the State aid funds affected by that plan or 2 modified plan shall be withheld by the State Board of 3 Education until a plan or modified plan is submitted. 4 If the district fails to distribute State aid to 5 attendance centers in accordance with an approved plan, 6 the plan for the following year shall allocate funds, in 7 addition to the funds otherwise required by this 8 subsection, to those attendance centers which were 9 underfunded during the previous year in amounts equal to 10 such underfunding. 11 For purposes of determining compliance with this 12 subsection in relation to the requirements of attendance 13 center funding, each district subject to the provisions 14 of this subsection shall submit as a separate document by 15 December 1 of each year a report of expenditure data for 16 the prior year in addition to any modification of its 17 current plan. If it is determined that there has been a 18 failure to comply with the expenditure provisions of this 19 subsection regarding contravention or supplanting, the 20 State Superintendent of Education shall, within 60 days 21 of receipt of the report, notify the district and any 22 affected local school council. The district shall within 23 45 days of receipt of that notification inform the State 24 Superintendent of Education of the remedial or corrective 25 action to be taken, whether by amendment of the current 26 plan, if feasible, or by adjustment in the plan for the 27 following year. Failure to provide the expenditure 28 report or the notification of remedial or corrective 29 action in a timely manner shall result in a withholding 30 of the affected funds. 31 The State Board of Education shall promulgate rules 32 and regulations to implement the provisions of this 33 subsection. No funds shall be released under this 34 subdivision (H)(4) to any district that has not submitted -17- SDS/bill0066/jwm 1 a plan that has been approved by the State Board of 2 Education. 3 (I) General State Aid for Newly Configured School Districts. 4 (1) For a new school district formed by combining 5 property included totally within 2 or more previously 6 existing school districts, for its first year of existence 7 the general State aid and supplemental general State aid 8 calculated under this Section shall be computed for the new 9 district and for the previously existing districts for which 10 property is totally included within the new district. If the 11 computation on the basis of the previously existing districts 12 is greater, a supplementary payment equal to the difference 13 shall be made for the first 4 years of existence of the new 14 district. 15 (2) For a school district which annexes all of the 16 territory of one or more entire other school districts, for 17 the first year during which the change of boundaries 18 attributable to such annexation becomes effective for all 19 purposes as determined under Section 7-9 or 7A-8, the general 20 State aid and supplemental general State aid calculated under 21 this Section shall be computed for the annexing district as 22 constituted after the annexation and for the annexing and 23 each annexed district as constituted prior to the annexation; 24 and if the computation on the basis of the annexing and 25 annexed districts as constituted prior to the annexation is 26 greater, a supplementary payment equal to the difference 27 shall be made for the first 4 years of existence of the 28 annexing school district as constituted upon such annexation. 29 (3) For 2 or more school districts which annex all of 30 the territory of one or more entire other school districts, 31 and for 2 or more community unit districts which result upon 32 the division (pursuant to petition under Section 11A-2) of 33 one or more other unit school districts into 2 or more parts 34 and which together include all of the parts into which such -18- SDS/bill0066/jwm 1 other unit school district or districts are so divided, for 2 the first year during which the change of boundaries 3 attributable to such annexation or division becomes effective 4 for all purposes as determined under Section 7-9 or 11A-10, 5 as the case may be, the general State aid and supplemental 6 general State aid calculated under this Section shall be 7 computed for each annexing or resulting district as 8 constituted after the annexation or division and for each 9 annexing and annexed district, or for each resulting and 10 divided district, as constituted prior to the annexation or 11 division; and if the aggregate of the general State aid and 12 supplemental general State aid as so computed for the 13 annexing or resulting districts as constituted after the 14 annexation or division is less than the aggregate of the 15 general State aid and supplemental general State aid as so 16 computed for the annexing and annexed districts, or for the 17 resulting and divided districts, as constituted prior to the 18 annexation or division, then a supplementary payment equal to 19 the difference shall be made and allocated between or among 20 the annexing or resulting districts, as constituted upon such 21 annexation or division, for the first 4 years of their 22 existence. The total difference payment shall be allocated 23 between or among the annexing or resulting districts in the 24 same ratio as the pupil enrollment from that portion of the 25 annexed or divided district or districts which is annexed to 26 or included in each such annexing or resulting district bears 27 to the total pupil enrollment from the entire annexed or 28 divided district or districts, as such pupil enrollment is 29 determined for the school year last ending prior to the date 30 when the change of boundaries attributable to the annexation 31 or division becomes effective for all purposes. The amount 32 of the total difference payment and the amount thereof to be 33 allocated to the annexing or resulting districts shall be 34 computed by the State Board of Education on the basis of -19- SDS/bill0066/jwm 1 pupil enrollment and other data which shall be certified to 2 the State Board of Education, on forms which it shall provide 3 for that purpose, by the regional superintendent of schools 4 for each educational service region in which the annexing and 5 annexed districts, or resulting and divided districts are 6 located. 7 (4) Any supplementary payment made under this subsection 8 (I) shall be treated as separate from all other payments made 9 pursuant to this Section. 10 (J) Supplementary Grants in Aid. 11 (1) Notwithstanding any other provisions of this 12 Section, the amount of the aggregate general State aid in 13 combination with supplemental general State aid under this 14 Section for which each school district is eligible for the 15 1998-1999 school year shall be no less than the amount of the 16 aggregate general State aid entitlement that was received by 17 the district under Section 18-8 (exclusive of amounts 18 received under subsections 5(p) and 5(p-5) of that Section) 19 for the 1997-98 school year, pursuant to the provisions of 20 that Section as it was then in effect. If a school district 21 qualifies to receive a supplementary payment made under this 22 subsection (J) for the 1998-1999 school year, the amount of 23 the aggregate general State aid in combination with 24 supplemental general State aid under this Section which that 25 district is eligible to receive for each school year 26 subsequent to the 1998-1999 school year shall be no less than 27 the amount of the aggregate general State aid entitlement 28 that was received by the district under Section 18-8 29 (exclusive of amounts received under subsections 5(p) and 30 5(p-5) of that Section) for the 1997-1998 school year, 31 pursuant to the provisions of that Section as it was then in 32 effect. 33 (2) If, as provided in paragraph (1) of this subsection 34 (J), a school district is to receive aggregate general State -20- SDS/bill0066/jwm 1 aid in combination with supplemental general State aid under 2 this Section for the 1998-99 school year, or for the 1998-99 3 school year and any subsequent school year, that in any such 4 school year is less than the amount of the aggregate general 5 State aid entitlement that the district received for the 6 1997-98 school year, the school district shall also receive, 7 from a separate appropriation made for purposes of this 8 subsection (J), a supplementary payment that is equal to the 9 amount of the difference in the aggregate State aid figures 10 as described in paragraph (1). 11(3) If the amount appropriated for supplementary12payments to school districts under this subsection (J) is13insufficient for that purpose, the supplementary payments14that districts are to receive under this subsection shall be15prorated according to the aggregate amount of the16appropriation made for purposes of this subsection.17 (K) Grants to Laboratory and Alternative Schools. 18 In calculating the amount to be paid to the governing 19 board of a public university that operates a laboratory 20 school under this Section or to any alternative school that 21 is operated by a regional superintendent, the State Board of 22 Education shall require by rule such reporting requirements 23 as it deems necessary. 24 As used in this Section, "laboratory school" means a 25 public school which is created and operated by a public 26 university and approved by the State Board of Education. The 27 governing board of a public university which receives funds 28 from the State Board under this subsection (K) may not 29 increase the number of students enrolled in its laboratory 30 school from a single district, if that district is already 31 sending 50 or more students, except under a mutual agreement 32 between the school board of a student's district of residence 33 and the university which operates the laboratory school. A 34 laboratory school may not have more than 1,000 students, -21- SDS/bill0066/jwm 1 excluding students with disabilities in a special education 2 program. 3 As used in this Section, "alternative school" means a 4 public school which is created and operated by a Regional 5 Superintendent of Schools and approved by the State Board of 6 Education. Such alternative schools may offer courses of 7 instruction for which credit is given in regular school 8 programs, courses to prepare students for the high school 9 equivalency testing program or vocational and occupational 10 training. 11 Each laboratory and alternative school shall file, on 12 forms provided by the State Superintendent of Education, an 13 annual State aid claim which states the Average Daily 14 Attendance of the school's students by month. The best 3 15 months' Average Daily Attendance shall be computed for each 16 school. The general State aid entitlement shall be computed 17 by multiplying the applicable Average Daily Attendance by the 18 Foundation Level as determined under this Section. 19 (L) Payments, Additional Grants in Aid and Other 20 Requirements. 21 (1) For a school district operating under the financial 22 supervision of an Authority created under Article 34A, the 23 general State aid otherwise payable to that district under 24 this Section, but not the supplemental general State aid, 25 shall be reduced by an amount equal to the budget for the 26 operations of the Authority as certified by the Authority to 27 the State Board of Education, and an amount equal to such 28 reduction shall be paid to the Authority created for such 29 district for its operating expenses in the manner provided in 30 Section 18-11. The remainder of general State school aid for 31 any such district shall be paid in accordance with Article 32 34A when that Article provides for a disposition other than 33 that provided by this Article. 34 (2) Impaction. Impaction payments shall be made as -22- SDS/bill0066/jwm 1 provided for in Section 18-4.2. 2 (3) Summer school. Summer school payments shall be made 3 as provided in Section 18-4.3. 4 (M) Education Funding Advisory Board. 5 The Education Funding Advisory Board, hereinafter in this 6 subsection (M) referred to as the "Board", is hereby created. 7 The Board shall consist of 5 members who are appointed by the 8 Governor, by and with the advice and consent of the Senate. 9 The members appointed shall include representatives of 10 education, business, and the general public. One of the 11 members so appointed shall be designated by the Governor at 12 the time the appointment is made as the chairperson of the 13 Board. The initial members of the Board may be appointed any 14 time after the effective date of this amendatory Act of 1997. 15 The regular term of each member of the Board shall be for 4 16 years from the third Monday of January of the year in which 17 the term of the member's appointment is to commence, except 18 that of the 5 initial members appointed to serve on the 19 Board, the member who is appointed as the chairperson shall 20 serve for a term that commences on the date of his or her 21 appointment and expires on the third Monday of January, 2002, 22 and the remaining 4 members, by lots drawn at the first 23 meeting of the Board that is held after all 5 members are 24 appointed, shall determine 2 of their number to serve for 25 terms that commence on the date of their respective 26 appointments and expire on the third Monday of January, 2001, 27 and 2 of their number to serve for terms that commence on the 28 date of their respective appointments and expire on the third 29 Monday of January, 2000. All members appointed to serve on 30 the Board shall serve until their respective successors are 31 appointed and confirmed. Vacancies shall be filled in the 32 same manner as original appointments. If a vacancy in 33 membership occurs at a time when the Senate is not in 34 session, the Governor shall make a temporary appointment -23- SDS/bill0066/jwm 1 until the next meeting of the Senate, when he or she shall 2 appoint, by and with the advice and consent of the Senate, a 3 person to fill that membership for the unexpired term. If 4 the Senate is not in session when the initial appointments 5 are made, those appointments shall be made as in the case of 6 vacancies. 7 The Education Funding Advisory Board shall be deemed 8 established, and the initial members appointed by the 9 Governor to serve as members of the Board shall take office, 10 on the date that the Governor makes his or her appointment of 11 the fifth initial member of the Board, whether those initial 12 members are then serving pursuant to appointment and 13 confirmation or pursuant to temporary appointments that are 14 made by the Governor as in the case of vacancies. 15 The State Board of Education shall provide such staff 16 assistance to the Education Funding Advisory Board as is 17 reasonably required for the proper performance by the Board 18 of its responsibilities. 19 For school years after the 2000-2001 school year, the 20 Education Funding Advisory Board, in consultation with the 21 State Board of Education, shall make recommendations as 22 provided in this subsection (M) to the General Assembly for 23 the foundation level under subdivision (B)(3) of this Section 24 and for the supplemental general State aid grant level under 25 subsection (H) of this Section for districts with high 26 concentrations of children from poverty. The recommended 27 foundation level shall be determined based on a methodology 28 which incorporates the basic education expenditures of 29 low-spending schools exhibiting high academic performance. 30 The Education Funding Advisory Board shall make such 31 recommendations to the General Assembly on January 1 of odd 32 numbered years, beginning January 1, 2001. 33 (N) General State Aid Adjustment Grant. 34 (1) Any school district subject to property tax -24- SDS/bill0066/jwm 1 extension limitations as imposed under the provisions of the 2 Property Tax Extension Limitation Law shall be entitled to 3 receive, subject to the qualifications and requirements of 4 this subsection, a general State aid adjustment grant. 5 Eligibility for this grant shall be determined on an annual 6 basis and claims for grant payments shall be paid subject to 7 appropriations made specific to this subsection. For 8 purposes of this subsection the following terms shall have 9 the following meanings: 10 "Budget Year": The school year for which general State 11 aid is calculated and awarded under subsection (E). 12 "Current Year": The school year immediately preceding 13 the Budget Year. 14 "Base Tax Year": The property tax levy year used to 15 calculate the Budget Year allocation of general State aid. 16 "Preceding Tax Year": The property tax levy year 17 immediately preceding the Base Tax Year. 18 "Extension Limitation Ratio": A numerical ratio, 19 certified by a school district's County Clerk, in which the 20 numerator is the Base Tax Year's tax extension amount 21 resulting from the Operating Tax Rate and the denominator is 22 the Preceding Tax Year's tax extension amount resulting from 23 the Operating Tax Rate. 24 "Operating Tax Rate": The operating tax rate as defined 25 in subsection (A). 26 (2) To qualify for a general State aid adjustment grant, 27 a school district must meet all of the following eligibility 28 criteria for each Budget Year for which a grant is claimed: 29 (a) The Operating Tax Rate of the school district 30 in the Preceding Tax Year was at least 3.00% in the case 31 of a school district maintaining grades kindergarten 32 through 12, at least 2.30% in the case of a school 33 district maintaining grades kindergarten through 8, or at 34 least 1.41% in the case of a school district maintaining -25- SDS/bill0066/jwm 1 grades 9 through 12. 2 (b) The Operating Tax Rate of the school district 3 for the Base Tax Year was reduced by the Clerk of the 4 County as a result of the requirements of the Property 5 Tax Extension Limitation Law. 6 (c) The Available Local Resources per pupil of the 7 school district as calculated pursuant to subsection (D) 8 using the Base Tax Year are less than the product of 1.75 9 times the Foundation Level for the Budget Year. 10 (d) The school district has filed a proper and 11 timely claim for a general State aid adjustment grant as 12 required under this subsection. 13 (3) A claim for grant assistance under this subsection 14 shall be filed with the State Board of Education on or before 15 January 1 of the Current Year for a grant for the Budget 16 Year. The claim shall be made on forms prescribed by the 17 State Board of Education and must be accompanied by a written 18 statement from the Clerk of the County, certifying: 19 (a) That the school district has its extension for 20 the Base Tax Year reduced as a result of the Property Tax 21 Extension Limitation Law. 22 (b) That the Operating Tax Rate of the school 23 district for the Preceding Tax Year met the tax rate 24 requirements of subdivision (N)(2) of this Section. 25 (c) The Extension Limitation Ratio as that term is 26 defined in this subsection. 27 (4) On or before August 1 of the Budget Year the State 28 Board of Education shall calculate, for all school districts 29 meeting the other requirements of this subsection, the amount 30 of the general State aid adjustment grant, if any, that the 31 school districts are eligible to receive in the Budget Year. 32 The amount of the general State aid adjustment grant shall be 33 calculated as follows: 34 (a) Determine the school district's general State -26- SDS/bill0066/jwm 1 aid grant for the Budget Year as provided in accordance 2 with the provisions of subsection (E). 3 (b) Determine the school district's adjusted level 4 of general State aid by utilizing in the calculation of 5 Available Local Resources an equalized assessed valuation 6 that is the equalized assessed valuation of the Preceding 7 Tax Year multiplied by the Extension Limitation Ratio. 8 (c) Subtract the sum derived in subparagraph (a) 9 from the sum derived in subparagraph (b). If the result 10 is a positive number, that amount shall be the general 11 State aid adjustment grant that the district is eligible 12 to receive. 13 (5) The State Board of Education shall in the Current 14 Year, based upon claims filed in the Current Year, recommend 15 to the General Assembly an appropriation amount for the 16 general State aid adjustment grants to be made in the Budget 17 Year. 18 (6) Claims for general State aid adjustment grants shall 19 be paid in a lump sum on or before January 1 of the Budget 20 Year only from appropriations made by the General Assembly 21 expressly for claims under this subsection. No such claims 22 may be paid from amounts appropriated for any other purpose 23 provided for under this Section. In the event that the 24 appropriation for claims under this subsection is 25 insufficient to meet all Budget Year claims for a general 26 State aid adjustment grant, the appropriation available shall 27 be proportionately prorated by the State Board of Education 28 amongst all districts filing for and entitled to payments. 29 (7) The State Board of Education shall promulgate the 30 required claim forms and rules necessary to implement the 31 provisions of this subsection. 32 (O) References. 33 (1) References in other laws to the various subdivisions 34 of Section 18-8 as that Section existed before its repeal and -27- SDS/bill0066/jwm 1 replacement by this Section 18-8.05 shall be deemed to refer 2 to the corresponding provisions of this Section 18-8.05, to 3 the extent that those references remain applicable. 4 (2) References in other laws to State Chapter 1 funds 5 shall be deemed to refer to the supplemental general State 6 aid provided under subsection (H) of this Section. 7 (Source: P.A. 90-548, eff. 7-1-98.) 8 Section 10. The General State Aid Continuing 9 Appropriation Law is amended by changing Sections 15-5, 10 15-10, 15-15, and 15-20 as follows: 11 (105 ILCS 235/15-5) 12 Sec. 15-5. Short title. This Article may be cited as 13 theGeneralState Aid Continuing Appropriation Law. 14 (Source: P.A. 90-548, eff. 12-4-97.) 15 (105 ILCS 235/15-10) 16 Sec. 15-10. Annual budget; recommendation. The Governor 17 shall include a Common School Fund recommendation to the 18 State Board of Education in the fiscal year 1999 through 2001 19 annual Budgets sufficient to fund (i) the General State Aid 20 Formula set forth in subsection (E) (Computation of General 21 State Aid) and subsection (H) (Supplemental General State 22 Aid) of Section 18-8.05 of the School Code and (ii) the 23 supplementary payments for school districts set forth in 24 subsection (J) (Supplementary Grants in Aid) of Section 25 18-8.05 of the School Code. 26 (Source: P.A. 90-548, eff. 12-4-97.) 27 (105 ILCS 235/15-15) 28 Sec. 15-15.GeneralState Aid Formula; Funding. The 29 General Assembly shall annually make Common School Fund 30 appropriations to the State Board of Education in fiscal -28- SDS/bill0066/jwm 1 years 1999 through 2001 sufficient to fund (i) the General 2 State Aid Formula set forth in subsection (E) (Computation of 3 General State Aid) and subsection (H) (Supplemental General 4 State Aid) of Section 18-8.05 of the School Code and (ii) the 5 supplementary payments for school districts set forth in 6 subsection (J) (Supplementary Grants in Aid) of Section 7 18-8.05 of the School Code. 8 (Source: P.A. 90-548, eff. 12-4-97.) 9 (105 ILCS 235/15-20) 10 Sec. 15-20. Continuing appropriation. If the General 11 Assembly fails to make Common School Fund appropriations to 12 the State Board of Education in fiscal years 1999 through 13 2001 sufficient to fund (i) the General State Aid Formula set 14 forth in subsection (E) (Computation of General State Aid) 15 and subsection (H) (Supplemental General State Aid) of 16 Section 18-8.05 of the School Code and (ii) the supplementary 17 payments for school districts set forth in subsection (J) 18 (Supplementary Grants in Aid) of Section 18-8.05 of the 19 School Code, this Article shall constitute an irrevocable and 20 continuing appropriation from the Common School Fund of all 21 amounts necessary for those purposesthat purpose. 22 (Source: P.A. 90-548, eff. 12-4-97.) 23 Section 99. Effective date. This Act takes effect upon 24 becoming law, except the change to Section 18-8.05 of the 25 School Code takes effect July 1, 1998.