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90_SB1681 35 ILCS 200/18-200 105 ILCS 5/18-8.05 Amends the Property Tax Code and the School Code. Provides that a school district's eligibility for a General State Aid Adjustment Grant shall not be impaired as a result of its Operating Tax Rate falling below prescribed tax rate requirements of the State aid formula due to the operation of the Property Tax Limitation Law. Provides that those tax rate requirements are met if the district's Operating Tax Rate, absent any reduction made by the county clerk under the Property Tax Extension Limitation Law, would have been at the eligibility level established in the State aid formula. Effective July 1, 1998. LRB9011301THpk LRB9011301THpk 1 AN ACT relating to State aid for school districts. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Property Tax Code is amended by changing 5 Section 18-200 as follows: 6 (35 ILCS 200/18-200) 7 Sec. 18-200. School Code. A school district's 8 eligibility for a General State Aid Adjustment Grant under 9 subsection (N) of Section 18-8.05State aid shall not be10reduced under the computation under subsections 5(a) through115(h) of Part A of Section 18-8of the School Code shall not 12 be impaired or otherwise adversely affected due to the 13 Operating Tax Rate of the district falling from at or above 14 the tax rate requirementsminimum requirementof that 15 subsection (N)Section of the School Codeto below those 16 requirements because ofthe minimum requirement of that17Section of the School Code due tothe operation of the 18 Property Tax Extension LimitationthisLaw. 19 (Source: P.A. 87-17; 88-455.) 20 Section 10. The School Code is amended by changing 21 Section 18-8.05 as follows: 22 (105 ILCS 5/18-8.05) 23 (This Section may contain text from a Public Act with a 24 delayed effective date.) 25 Sec. 18-8.05. Basis for apportionment of general State 26 financial aid and supplemental general State aid to the 27 common schools for the 1998-1999 and subsequent school years. 28 (A) General Provisions. 29 (1) The provisions of this Section apply to the -2- LRB9011301THpk 1 1998-1999 and subsequent school years. The system of general 2 State financial aid provided for in this Section is designed 3 to assure that, through a combination of State financial aid 4 and required local resources, the financial support provided 5 each pupil in Average Daily Attendance equals or exceeds a 6 prescribed per pupil Foundation Level. This formula approach 7 imputes a level of per pupil Available Local Resources and 8 provides for the basis to calculate a per pupil level of 9 general State financial aid that, when added to Available 10 Local Resources, equals or exceeds the Foundation Level. The 11 amount of per pupil general State financial aid for school 12 districts, in general, varies in inverse relation to 13 Available Local Resources. Per pupil amounts are based upon 14 each school district's Average Daily Attendance as that term 15 is defined in this Section. 16 (2) In addition to general State financial aid, school 17 districts with specified levels or concentrations of pupils 18 from low income households are eligible to receive 19 supplemental general State financial aid grants as provided 20 pursuant to subsection (H). The supplemental State aid grants 21 provided for school districts under subsection (H) shall be 22 appropriated for distribution to school districts as part of 23 the same line item in which the general State financial aid 24 of school districts is appropriated under this Section. 25 (3) To receive financial assistance under this Section, 26 school districts are required to file claims with the State 27 Board of Education, subject to the following requirements: 28 (a) Any school district which fails for any given 29 school year to maintain school as required by law, or to 30 maintain a recognized school is not eligible to file for 31 such school year any claim upon the Common School Fund. 32 In case of nonrecognition of one or more attendance 33 centers in a school district otherwise operating 34 recognized schools, the claim of the district shall be -3- LRB9011301THpk 1 reduced in the proportion which the Average Daily 2 Attendance in the attendance center or centers bear to 3 the Average Daily Attendance in the school district. A 4 "recognized school" means any public school which meets 5 the standards as established for recognition by the State 6 Board of Education. A school district or attendance 7 center not having recognition status at the end of a 8 school term is entitled to receive State aid payments due 9 upon a legal claim which was filed while it was 10 recognized. 11 (b) School district claims filed under this Section 12 are subject to Sections 18-9, 18-10, and 18-12, except as 13 otherwise provided in this Section. 14 (c) If a school district operates a full year 15 school under Section 10-19.1, the general State aid to 16 the school district shall be determined by the State 17 Board of Education in accordance with this Section as 18 near as may be applicable. 19 (d) Claims for financial assistance under this 20 Section shall not be recomputed except as expressly 21 provided under this Section. 22 (4) Except as provided in subsections (H) and (L), the 23 board of any district receiving any of the grants provided 24 for in this Section may apply those funds to any fund so 25 received for which that board is authorized to make 26 expenditures by law. 27 School districts are not required to exert a minimum 28 Operating Tax Rate in order to qualify for assistance under 29 this Section. 30 (5) As used in this Section the following terms, when 31 capitalized, shall have the meaning ascribed herein: 32 (a) "Average Daily Attendance": A count of pupil 33 attendance in school, averaged as provided for in 34 subsection (C) and utilized in deriving per pupil -4- LRB9011301THpk 1 financial support levels. 2 (b) "Available Local Resources": A computation of 3 local financial support, calculated on the basis Average 4 Daily Attendance and derived as provided pursuant to 5 subsection (D). 6 (c) "Corporate Personal Property Replacement 7 Taxes": Funds paid to local school districts pursuant to 8 "An Act in relation to the abolition of ad valorem 9 personal property tax and the replacement of revenues 10 lost thereby, and amending and repealing certain Acts and 11 parts of Acts in connection therewith", certified August 12 14, 1979, as amended (Public Act 81-1st S.S.-1). 13 (d) "Foundation Level": A prescribed level of per 14 pupil financial support as provided for in subsection 15 (B). 16 (e) "Operating Tax Rate": All school district 17 property taxes extended for all purposes, except 18 community college educational purposes for the payment of 19 tuition under Section 6-1 of the Public Community College 20 Act, Bond and Interest, Summer School, Rent, Capital 21 Improvement, and Vocational Education Building purposes. 22 (B) Foundation Level. 23 (1) The Foundation Level is a figure established by the 24 State representing the minimum level of per pupil financial 25 support that should be available to provide for the basic 26 education of each pupil in Average Daily Attendance. As set 27 forth in this Section, each school district is assumed to 28 exert a sufficient local taxing effort such that, in 29 combination with the aggregate of general State financial aid 30 provided the district, an aggregate of State and local 31 resources are available to meet the basic education needs of 32 pupils in the district. 33 (2) For the 1998-1999 school year, the Foundation Level 34 of support is $4,225. For the 1999-2000 school year, the -5- LRB9011301THpk 1 Foundation Level of support is $4,325. For the 2000-2001 2 school year, the Foundation Level of support is $4,425. 3 (3) For the 2001-2002 school year and each school year 4 thereafter, the Foundation Level of support is $4,425 or such 5 greater amount as may be established by law by the General 6 Assembly. 7 (C) Average Daily Attendance. 8 (1) For purposes of calculating general State aid 9 pursuant to subsection (E), an Average Daily Attendance 10 figure shall be utilized. The Average Daily Attendance 11 figure for formula calculation purposes shall be the monthly 12 average of the actual number of pupils in attendance of each 13 school district, as further averaged for the best 3 months of 14 pupil attendance for each school district. In compiling the 15 figures for the number of pupils in attendance, school 16 districts and the State Board of Education shall, for 17 purposes of general State aid funding, conform attendance 18 figures to the requirements of subsection (F). 19 (2) The Average Daily Attendance figures utilized in 20 subsection (E) shall be the requisite attendance data for the 21 school year immediately preceding the school year for which 22 general State aid is being calculated. 23 (D) Available Local Resources. 24 (1) For purposes of calculating general State aid 25 pursuant to subsection (E), a representation of Available 26 Local Resources per pupil, as that term is defined and 27 determined in this subsection, shall be utilized. Available 28 Local Resources per pupil shall include a calculated dollar 29 amount representing local school district revenues from local 30 property taxes and from Corporate Personal Property 31 Replacement Taxes, expressed on the basis of pupils in 32 Average Daily Attendance. 33 (2) In determining a school district's revenue from -6- LRB9011301THpk 1 local property taxes, the State Board of Education shall 2 utilize the equalized assessed valuation of all taxable 3 property of each school district as of September 30 of the 4 previous year. The equalized assessed valuation utilized 5 shall be obtained and determined as provided in subsection 6 (G). 7 (3) For school districts maintaining grades kindergarten 8 through 12, local property tax revenues per pupil shall be 9 calculated as the product of the applicable equalized 10 assessed valuation for the district multiplied by 3.00%, and 11 divided by the district's Average Daily Attendance figure. 12 For school districts maintaining grades kindergarten through 13 8, local property tax revenues per pupil shall be calculated 14 as the product of the applicable equalized assessed valuation 15 for the district multiplied by 2.30%, and divided by the 16 district's Average Daily Attendance figure. For school 17 districts maintaining grades 9 through 12, local property tax 18 revenues per pupil shall be the applicable equalized assessed 19 valuation of the district multiplied by 1.20%, and divided by 20 the district's Average Daily Attendance figure. 21 (4) The Corporate Personal Property Replacement Taxes 22 paid to each school district during the calendar year 2 years 23 before the calendar year in which a school year begins, 24 divided by the Average Daily Attendance figure for that 25 district, shall be added to the local property tax revenues 26 per pupil as derived by the application of the immediately 27 preceding paragraph (3). The sum of these per pupil figures 28 for each school district shall constitute Available Local 29 Resources as that term is utilized in subsection (E) in the 30 calculation of general State aid. 31 (E) Computation of General State Aid. 32 (1) For each school year, the amount of general State 33 aid allotted to a school district shall be computed by the 34 State Board of Education as provided in this subsection. -7- LRB9011301THpk 1 (2) For any school district for which Available Local 2 Resources per pupil is less than the product of 0.93 times 3 the Foundation Level, general State aid for that district 4 shall be calculated as an amount equal to the Foundation 5 Level minus Available Local Resources, multiplied by the 6 Average Daily Attendance of the school district. 7 (3) For any school district for which Available Local 8 Resources per pupil is equal to or greater than the product 9 of 0.93 times the Foundation Level and less than the product 10 of 1.75 times the Foundation Level, the general State aid per 11 pupil shall be a decimal proportion of the Foundation Level 12 derived using a linear algorithm. Under this linear 13 algorithm, the calculated general State aid per pupil shall 14 decline in direct linear fashion from 0.07 times the 15 Foundation Level for a school district with Available Local 16 Resources equal to the product of 0.93 times the Foundation 17 Level, to 0.05 times the Foundation Level for a school 18 district with Available Local Resources equal to the product 19 of 1.75 times the Foundation Level. The allocation of 20 general State aid for school districts subject to this 21 paragraph 3 shall be the calculated general State aid per 22 pupil figure multiplied by the Average Daily Attendance of 23 the school district. 24 (4) For any school district for which Available Local 25 Resources per pupil equals or exceeds the product of 1.75 26 times the Foundation Level, the general State aid for the 27 school district shall be calculated as the product of $218 28 multiplied by the Average Daily Attendance of the school 29 district. 30 (F) Compilation of Average Daily Attendance. 31 (1) Each school district shall, by July 1 of each year, 32 submit to the State Board of Education, on forms prescribed 33 by the State Board of Education, attendance figures for the 34 school year that began in the preceding calendar year. The -8- LRB9011301THpk 1 attendance information so transmitted shall identify the 2 average daily attendance figures for each month of the school 3 year, except that any days of attendance in August shall be 4 added to the month of September and any days of attendance in 5 June shall be added to the month of May. 6 Except as otherwise provided in this Section, days of 7 attendance by pupils shall be counted only for sessions of 8 not less than 5 clock hours of school work per day under 9 direct supervision of: (i) teachers, or (ii) non-teaching 10 personnel or volunteer personnel when engaging in 11 non-teaching duties and supervising in those instances 12 specified in subsection (a) of Section 10-22.34 and paragraph 13 10 of Section 34-18, with pupils of legal school age and in 14 kindergarten and grades 1 through 12. 15 Days of attendance by tuition pupils shall be accredited 16 only to the districts that pay the tuition to a recognized 17 school. 18 (2) Days of attendance by pupils of less than 5 clock 19 hours of school shall be subject to the following provisions 20 in the compilation of Average Daily Attendance. 21 (a) Pupils regularly enrolled in a public school 22 for only a part of the school day may be counted on the 23 basis of 1/6 day for every class hour of instruction of 24 40 minutes or more attended pursuant to such enrollment. 25 (b) Days of attendance may be less than 5 clock 26 hours on the opening and closing of the school term, and 27 upon the first day of pupil attendance, if preceded by a 28 day or days utilized as an institute or teachers' 29 workshop. 30 (c) A session of 4 or more clock hours may be 31 counted as a day of attendance upon certification by the 32 regional superintendent, and approved by the State 33 Superintendent of Education to the extent that the 34 district has been forced to use daily multiple sessions. -9- LRB9011301THpk 1 (d) A session of 3 or more clock hours may be 2 counted as a day of attendance (1) when the remainder of 3 the school day or at least 2 hours in the evening of that 4 day is utilized for an in-service training program for 5 teachers, up to a maximum of 5 days per school year of 6 which a maximum of 4 days of such 5 days may be used for 7 parent-teacher conferences, provided a district conducts 8 an in-service training program for teachers which has 9 been approved by the State Superintendent of Education; 10 or, in lieu of 4 such days, 2 full days may be used, in 11 which event each such day may be counted as a day of 12 attendance; and (2) when days in addition to those 13 provided in item (1) are scheduled by a school pursuant 14 to its school improvement plan adopted under Article 34 15 or its revised or amended school improvement plan adopted 16 under Article 2, provided that (i) such sessions of 3 or 17 more clock hours are scheduled to occur at regular 18 intervals, (ii) the remainder of the school days in which 19 such sessions occur are utilized for in-service training 20 programs or other staff development activities for 21 teachers, and (iii) a sufficient number of minutes of 22 school work under the direct supervision of teachers are 23 added to the school days between such regularly scheduled 24 sessions to accumulate not less than the number of 25 minutes by which such sessions of 3 or more clock hours 26 fall short of 5 clock hours. Any full days used for the 27 purposes of this paragraph shall not be considered for 28 computing average daily attendance. Days scheduled for 29 in-service training programs, staff development 30 activities, or parent-teacher conferences may be 31 scheduled separately for different grade levels and 32 different attendance centers of the district. 33 (e) A session of not less than one clock hour 34 teaching of hospitalized or homebound pupils on-site or -10- LRB9011301THpk 1 by telephone to the classroom may be counted as 1/2 day 2 of attendance, however these pupils must receive 4 or 3 more clock hours of instruction to be counted for a full 4 day of attendance. 5 (f) A session of at least 4 clock hours may be 6 counted as a day of attendance for first grade pupils, 7 and pupils in full day kindergartens, and a session of 2 8 or more hours may be counted as 1/2 day of attendance by 9 pupils in kindergartens which provide only 1/2 day of 10 attendance. 11 (g) For children with disabilities who are below 12 the age of 6 years and who cannot attend 2 or more clock 13 hours because of their disability or immaturity, a 14 session of not less than one clock hour may be counted as 15 1/2 day of attendance; however for such children whose 16 educational needs so require a session of 4 or more clock 17 hours may be counted as a full day of attendance. 18 (h) A recognized kindergarten which provides for 19 only 1/2 day of attendance by each pupil shall not have 20 more than 1/2 day of attendance counted in any 1 day. 21 However, kindergartens may count 2 1/2 days of attendance 22 in any 5 consecutive school days. When a pupil attends 23 such a kindergarten for 2 half days on any one school 24 day, the pupil shall have the following day as a day 25 absent from school, unless the school district obtains 26 permission in writing from the State Superintendent of 27 Education. Attendance at kindergartens which provide for 28 a full day of attendance by each pupil shall be counted 29 the same as attendance by first grade pupils. Only the 30 first year of attendance in one kindergarten shall be 31 counted, except in case of children who entered the 32 kindergarten in their fifth year whose educational 33 development requires a second year of kindergarten as 34 determined under the rules and regulations of the State -11- LRB9011301THpk 1 Board of Education. 2 (G) Equalized Assessed Valuation Data. 3 (1) For purposes of the calculation of Available Local 4 Resources required pursuant to subsection (D), the State 5 Board of Education shall secure from the Department of 6 Revenue the value as equalized or assessed by the Department 7 of Revenue of all taxable property of every school district 8 together with the applicable tax rate used in extending taxes 9 for the funds of the district as of September 30 of the 10 previous year. 11 This equalized assessed valuation, as adjusted further by 12 the requirements of this subsection, shall be utilized in the 13 calculation of Available Local Resources. 14 (2) The equalized assessed valuation in paragraph (1) 15 shall be adjusted, as applicable, in the following manner: 16 (a) For the purposes of calculating State aid under 17 this Section, with respect to any part of a school 18 district within a redevelopment project area in respect 19 to which a municipality has adopted tax increment 20 allocation financing pursuant to the Tax Increment 21 Allocation Redevelopment Act, Sections 11-74.4-1 through 22 11-74.4-11 of the Illinois Municipal Code or the 23 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 24 11-74.6-50 of the Illinois Municipal Code, no part of the 25 current equalized assessed valuation of real property 26 located in any such project area which is attributable to 27 an increase above the total initial equalized assessed 28 valuation of such property shall be used as part of the 29 equalized assessed valuation of the district, until such 30 time as all redevelopment project costs have been paid, 31 as provided in Section 11-74.4-8 of the Tax Increment 32 Allocation Redevelopment Act or in Section 11-74.6-35 of 33 the Industrial Jobs Recovery Law. For the purpose of the 34 equalized assessed valuation of the district, the total -12- LRB9011301THpk 1 initial equalized assessed valuation or the current 2 equalized assessed valuation, whichever is lower, shall 3 be used until such time as all redevelopment project 4 costs have been paid. 5 (b) The real property equalized assessed valuation 6 for a school district shall be adjusted by subtracting 7 from the real property value as equalized or assessed by 8 the Department of Revenue for the district an amount 9 computed by dividing the amount of any abatement of taxes 10 under Section 18-170 of the Property Tax Code by 3.00% 11 for a district maintaining grades kindergarten through 12 12 or by 2.30% for a district maintaining grades 13 kindergarten through 8, or by 1.20% for a district 14 maintaining grades 9 through 12 and adjusted by an amount 15 computed by dividing the amount of any abatement of taxes 16 under subsection (a) of Section 18-165 of the Property 17 Tax Code by the same percentage rates for district type 18 as specified in this subparagraph (c). 19 (H) Supplemental General State Aid. 20 (1) In addition to the general State aid a school 21 district is allotted pursuant to subsection (E), qualifying 22 school districts shall receive a grant, paid in conjunction 23 with a district's payments of general State aid, for 24 supplemental general State aid based upon the concentration 25 level of children from low-income households within the 26 school district. Supplemental State aid grants provided for 27 school districts under this subsection shall be appropriated 28 for distribution to school districts as part of the same line 29 item in which the general State financial aid of school 30 districts is appropriated under this Section. For purposes of 31 this subsection, the term "Low-Income Concentration Level" 32 shall be the low-income eligible pupil count from the most 33 recently available federal census divided by the Average 34 Daily Attendance of the school district. -13- LRB9011301THpk 1 (2) Supplemental general State aid pursuant to this 2 subsection shall be provided as follows: 3 (a) For any school district with a Low Income 4 Concentration Level of at least 20% and less than 35%, 5 the grant for any school year shall be $800 multiplied by 6 the low income eligible pupil count. 7 (b) For any school district with a Low Income 8 Concentration Level of at least 35% and less than 50%, 9 the grant for the 1998-1999 school year shall be $1,100 10 multiplied by the low income eligible pupil count. 11 (c) For any school district with a Low Income 12 Concentration Level of at least 50% and less than 60%, 13 the grant for the 1998-99 school year shall be $1,500 14 multiplied by the low income eligible pupil count. 15 (d) For any school district with a Low Income 16 Concentration Level of 60% or more, the grant for the 17 1998-99 school year shall be $1,900 multiplied by the low 18 income eligible pupil count. 19 (e) For the 1999-2000 school year, the per pupil 20 amount specified in subparagraphs (b), (c), and (d), 21 immediately above shall be increased by $100 to $1,200, 22 $1,600, and $2,000, respectively. 23 (f) For the 2000-2001 school year, the per pupil 24 amounts specified in subparagraphs (b), (c) and (d) 25 immediately above shall be increased to $1,230, $1,640, 26 and $2,050, respectively. 27 (3) School districts with an Average Daily Attendance of 28 more than 1,000 and less than 50,000 that qualify for 29 supplemental general State aid pursuant to this subsection 30 shall submit a plan to the State Board of Education prior to 31 October 30 of each year for the use of the funds resulting 32 from this grant of supplemental general State aid for the 33 improvement of instruction in which priority is given to 34 meeting the education needs of disadvantaged children. Such -14- LRB9011301THpk 1 plan shall be submitted in accordance with rules and 2 regulations promulgated by the State Board of Education. 3 (4) School districts with an Average Daily Attendance of 4 50,000 or more that qualify for supplemental general State 5 aid pursuant to this subsection shall be required to 6 distribute from funds available pursuant to this Section, no 7 less than $261,000,000 in accordance with the following 8 requirements: 9 (a) The required amounts shall be distributed to 10 the attendance centers within the district in proportion 11 to the number of pupils enrolled at each attendance 12 center who are eligible to receive free or reduced-price 13 lunches or breakfasts under the federal Child Nutrition 14 Act of 1966 and under the National School Lunch Act 15 during the immediately preceding school year. 16 (b) The distribution of these portions of 17 supplemental and general State aid among attendance 18 centers according to these requirements shall not be 19 compensated for or contravened by adjustments of the 20 total of other funds appropriated to any attendance 21 centers, and the Board of Education shall utilize funding 22 from one or several sources in order to fully implement 23 this provision annually prior to the opening of school. 24 (c) Each attendance center shall be provided by the 25 school district a distribution of noncategorical funds 26 and other categorical funds to which an attendance center 27 is entitled under law in order that the general State aid 28 and supplemental general State aid provided by 29 application of this subsection supplements rather than 30 supplants the noncategorical funds and other categorical 31 funds provided by the school district to the attendance 32 centers. 33 (d) Any funds made available under this subsection 34 that by reason of the provisions of this subsection are -15- LRB9011301THpk 1 not required to be allocated and provided to attendance 2 centers may be used and appropriated by the board of the 3 district for any lawful school purpose. 4 (e) Funds received by an attendance center pursuant 5 to this subsection shall be used by the attendance center 6 at the discretion of the principal and local school 7 council for programs to improve educational opportunities 8 at qualifying schools through the following programs and 9 services: early childhood education, reduced class size 10 or improved adult to student classroom ratio, enrichment 11 programs, remedial assistance, attendance improvement and 12 other educationally beneficial expenditures which 13 supplement the regular and basic programs as determined 14 by the State Board of Education. Funds provided shall 15 not be expended for any political or lobbying purposes as 16 defined by board rule. 17 (f) Each district subject to the provisions of this 18 subdivision (H)(4) shall submit an acceptable plan to 19 meet the educational needs of disadvantaged children, in 20 compliance with the requirements of this paragraph, to 21 the State Board of Education prior to July 15 of each 22 year. This plan shall be consistent with the decisions of 23 local school councils concerning the school expenditure 24 plans developed in accordance with part 4 of Section 25 34-2.3. The State Board shall approve or reject the plan 26 within 60 days after its submission. If the plan is 27 rejected, the district shall give written notice of 28 intent to modify the plan within 15 days of the 29 notification of rejection and then submit a modified plan 30 within 30 days after the date of the written notice of 31 intent to modify. Districts may amend approved plans 32 pursuant to rules promulgated by the State Board of 33 Education. 34 Upon notification by the State Board of Education -16- LRB9011301THpk 1 that the district has not submitted a plan prior to July 2 15 or a modified plan within the time period specified 3 herein, the State aid funds affected by that plan or 4 modified plan shall be withheld by the State Board of 5 Education until a plan or modified plan is submitted. 6 If the district fails to distribute State aid to 7 attendance centers in accordance with an approved plan, 8 the plan for the following year shall allocate funds, in 9 addition to the funds otherwise required by this 10 subsection, to those attendance centers which were 11 underfunded during the previous year in amounts equal to 12 such underfunding. 13 For purposes of determining compliance with this 14 subsection in relation to the requirements of attendance 15 center funding, each district subject to the provisions 16 of this subsection shall submit as a separate document by 17 December 1 of each year a report of expenditure data for 18 the prior year in addition to any modification of its 19 current plan. If it is determined that there has been a 20 failure to comply with the expenditure provisions of this 21 subsection regarding contravention or supplanting, the 22 State Superintendent of Education shall, within 60 days 23 of receipt of the report, notify the district and any 24 affected local school council. The district shall within 25 45 days of receipt of that notification inform the State 26 Superintendent of Education of the remedial or corrective 27 action to be taken, whether by amendment of the current 28 plan, if feasible, or by adjustment in the plan for the 29 following year. Failure to provide the expenditure 30 report or the notification of remedial or corrective 31 action in a timely manner shall result in a withholding 32 of the affected funds. 33 The State Board of Education shall promulgate rules 34 and regulations to implement the provisions of this -17- LRB9011301THpk 1 subsection. No funds shall be released under this 2 subdivision (H)(4) to any district that has not submitted 3 a plan that has been approved by the State Board of 4 Education. 5 (I) General State Aid for Newly Configured School Districts. 6 (1) For a new school district formed by combining 7 property included totally within 2 or more previously 8 existing school districts, for its first year of existence 9 the general State aid and supplemental general State aid 10 calculated under this Section shall be computed for the new 11 district and for the previously existing districts for which 12 property is totally included within the new district. If the 13 computation on the basis of the previously existing districts 14 is greater, a supplementary payment equal to the difference 15 shall be made for the first 4 years of existence of the new 16 district. 17 (2) For a school district which annexes all of the 18 territory of one or more entire other school districts, for 19 the first year during which the change of boundaries 20 attributable to such annexation becomes effective for all 21 purposes as determined under Section 7-9 or 7A-8, the general 22 State aid and supplemental general State aid calculated under 23 this Section shall be computed for the annexing district as 24 constituted after the annexation and for the annexing and 25 each annexed district as constituted prior to the annexation; 26 and if the computation on the basis of the annexing and 27 annexed districts as constituted prior to the annexation is 28 greater, a supplementary payment equal to the difference 29 shall be made for the first 4 years of existence of the 30 annexing school district as constituted upon such annexation. 31 (3) For 2 or more school districts which annex all of 32 the territory of one or more entire other school districts, 33 and for 2 or more community unit districts which result upon 34 the division (pursuant to petition under Section 11A-2) of -18- LRB9011301THpk 1 one or more other unit school districts into 2 or more parts 2 and which together include all of the parts into which such 3 other unit school district or districts are so divided, for 4 the first year during which the change of boundaries 5 attributable to such annexation or division becomes effective 6 for all purposes as determined under Section 7-9 or 11A-10, 7 as the case may be, the general State aid and supplemental 8 general State aid calculated under this Section shall be 9 computed for each annexing or resulting district as 10 constituted after the annexation or division and for each 11 annexing and annexed district, or for each resulting and 12 divided district, as constituted prior to the annexation or 13 division; and if the aggregate of the general State aid and 14 supplemental general State aid as so computed for the 15 annexing or resulting districts as constituted after the 16 annexation or division is less than the aggregate of the 17 general State aid and supplemental general State aid as so 18 computed for the annexing and annexed districts, or for the 19 resulting and divided districts, as constituted prior to the 20 annexation or division, then a supplementary payment equal to 21 the difference shall be made and allocated between or among 22 the annexing or resulting districts, as constituted upon such 23 annexation or division, for the first 4 years of their 24 existence. The total difference payment shall be allocated 25 between or among the annexing or resulting districts in the 26 same ratio as the pupil enrollment from that portion of the 27 annexed or divided district or districts which is annexed to 28 or included in each such annexing or resulting district bears 29 to the total pupil enrollment from the entire annexed or 30 divided district or districts, as such pupil enrollment is 31 determined for the school year last ending prior to the date 32 when the change of boundaries attributable to the annexation 33 or division becomes effective for all purposes. The amount 34 of the total difference payment and the amount thereof to be -19- LRB9011301THpk 1 allocated to the annexing or resulting districts shall be 2 computed by the State Board of Education on the basis of 3 pupil enrollment and other data which shall be certified to 4 the State Board of Education, on forms which it shall provide 5 for that purpose, by the regional superintendent of schools 6 for each educational service region in which the annexing and 7 annexed districts, or resulting and divided districts are 8 located. 9 (4) Any supplementary payment made under this subsection 10 (I) shall be treated as separate from all other payments made 11 pursuant to this Section. 12 (J) Supplementary Grants in Aid. 13 (1) Notwithstanding any other provisions of this 14 Section, the amount of the aggregate general State aid in 15 combination with supplemental general State aid under this 16 Section for which each school district is eligible for the 17 1998-1999 school year shall be no less than the amount of the 18 aggregate general State aid entitlement that was received by 19 the district under Section 18-8 (exclusive of amounts 20 received under subsections 5(p) and 5(p-5) of that Section) 21 for the 1997-98 school year, pursuant to the provisions of 22 that Section as it was then in effect. If a school district 23 qualifies to receive a supplementary payment made under this 24 subsection (J) for the 1998-1999 school year, the amount of 25 the aggregate general State aid in combination with 26 supplemental general State aid under this Section which that 27 district is eligible to receive for each school year 28 subsequent to the 1998-1999 school year shall be no less than 29 the amount of the aggregate general State aid entitlement 30 that was received by the district under Section 18-8 31 (exclusive of amounts received under subsections 5(p) and 32 5(p-5) of that Section) for the 1997-1998 school year, 33 pursuant to the provisions of that Section as it was then in 34 effect. -20- LRB9011301THpk 1 (2) If, as provided in paragraph (1) of this subsection 2 (J), a school district is to receive aggregate general State 3 aid in combination with supplemental general State aid under 4 this Section for the 1998-99 school year, or for the 1998-99 5 school year and any subsequent school year, that in any such 6 school year is less than the amount of the aggregate general 7 State aid entitlement that the district received for the 8 1997-98 school year, the school district shall also receive, 9 from a separate appropriation made for purposes of this 10 subsection (J), a supplementary payment that is equal to the 11 amount of the difference in the aggregate State aid figures 12 as described in paragraph (1). 13 (3) If the amount appropriated for supplementary 14 payments to school districts under this subsection (J) is 15 insufficient for that purpose, the supplementary payments 16 that districts are to receive under this subsection shall be 17 prorated according to the aggregate amount of the 18 appropriation made for purposes of this subsection. 19 (K) Grants to Laboratory and Alternative Schools. 20 In calculating the amount to be paid to the governing 21 board of a public university that operates a laboratory 22 school under this Section or to any alternative school that 23 is operated by a regional superintendent, the State Board of 24 Education shall require by rule such reporting requirements 25 as it deems necessary. 26 As used in this Section, "laboratory school" means a 27 public school which is created and operated by a public 28 university and approved by the State Board of Education. The 29 governing board of a public university which receives funds 30 from the State Board under this subsection (K) may not 31 increase the number of students enrolled in its laboratory 32 school from a single district, if that district is already 33 sending 50 or more students, except under a mutual agreement 34 between the school board of a student's district of residence -21- LRB9011301THpk 1 and the university which operates the laboratory school. A 2 laboratory school may not have more than 1,000 students, 3 excluding students with disabilities in a special education 4 program. 5 As used in this Section, "alternative school" means a 6 public school which is created and operated by a Regional 7 Superintendent of Schools and approved by the State Board of 8 Education. Such alternative schools may offer courses of 9 instruction for which credit is given in regular school 10 programs, courses to prepare students for the high school 11 equivalency testing program or vocational and occupational 12 training. 13 Each laboratory and alternative school shall file, on 14 forms provided by the State Superintendent of Education, an 15 annual State aid claim which states the Average Daily 16 Attendance of the school's students by month. The best 3 17 months' Average Daily Attendance shall be computed for each 18 school. The general State aid entitlement shall be computed 19 by multiplying the applicable Average Daily Attendance by the 20 Foundation Level as determined under this Section. 21 (L) Payments, Additional Grants in Aid and Other 22 Requirements. 23 (1) For a school district operating under the financial 24 supervision of an Authority created under Article 34A, the 25 general State aid otherwise payable to that district under 26 this Section, but not the supplemental general State aid, 27 shall be reduced by an amount equal to the budget for the 28 operations of the Authority as certified by the Authority to 29 the State Board of Education, and an amount equal to such 30 reduction shall be paid to the Authority created for such 31 district for its operating expenses in the manner provided in 32 Section 18-11. The remainder of general State school aid for 33 any such district shall be paid in accordance with Article 34 34A when that Article provides for a disposition other than -22- LRB9011301THpk 1 that provided by this Article. 2 (2) Impaction. Impaction payments shall be made as 3 provided for in Section 18-4.2. 4 (3) Summer school. Summer school payments shall be made 5 as provided in Section 18-4.3. 6 (M) Education Funding Advisory Board. 7 The Education Funding Advisory Board, hereinafter in this 8 subsection (M) referred to as the "Board", is hereby created. 9 The Board shall consist of 5 members who are appointed by the 10 Governor, by and with the advice and consent of the Senate. 11 The members appointed shall include representatives of 12 education, business, and the general public. One of the 13 members so appointed shall be designated by the Governor at 14 the time the appointment is made as the chairperson of the 15 Board. The initial members of the Board may be appointed any 16 time after the effective date of this amendatory Act of 1997. 17 The regular term of each member of the Board shall be for 4 18 years from the third Monday of January of the year in which 19 the term of the member's appointment is to commence, except 20 that of the 5 initial members appointed to serve on the 21 Board, the member who is appointed as the chairperson shall 22 serve for a term that commences on the date of his or her 23 appointment and expires on the third Monday of January, 2002, 24 and the remaining 4 members, by lots drawn at the first 25 meeting of the Board that is held after all 5 members are 26 appointed, shall determine 2 of their number to serve for 27 terms that commence on the date of their respective 28 appointments and expire on the third Monday of January, 2001, 29 and 2 of their number to serve for terms that commence on the 30 date of their respective appointments and expire on the third 31 Monday of January, 2000. All members appointed to serve on 32 the Board shall serve until their respective successors are 33 appointed and confirmed. Vacancies shall be filled in the 34 same manner as original appointments. If a vacancy in -23- LRB9011301THpk 1 membership occurs at a time when the Senate is not in 2 session, the Governor shall make a temporary appointment 3 until the next meeting of the Senate, when he or she shall 4 appoint, by and with the advice and consent of the Senate, a 5 person to fill that membership for the unexpired term. If 6 the Senate is not in session when the initial appointments 7 are made, those appointments shall be made as in the case of 8 vacancies. 9 The Education Funding Advisory Board shall be deemed 10 established, and the initial members appointed by the 11 Governor to serve as members of the Board shall take office, 12 on the date that the Governor makes his or her appointment of 13 the fifth initial member of the Board, whether those initial 14 members are then serving pursuant to appointment and 15 confirmation or pursuant to temporary appointments that are 16 made by the Governor as in the case of vacancies. 17 The State Board of Education shall provide such staff 18 assistance to the Education Funding Advisory Board as is 19 reasonably required for the proper performance by the Board 20 of its responsibilities. 21 For school years after the 2000-2001 school year, the 22 Education Funding Advisory Board, in consultation with the 23 State Board of Education, shall make recommendations as 24 provided in this subsection (M) to the General Assembly for 25 the foundation level under subdivision (B)(3) of this Section 26 and for the supplemental general State aid grant level under 27 subsection (H) of this Section for districts with high 28 concentrations of children from poverty. The recommended 29 foundation level shall be determined based on a methodology 30 which incorporates the basic education expenditures of 31 low-spending schools exhibiting high academic performance. 32 The Education Funding Advisory Board shall make such 33 recommendations to the General Assembly on January 1 of odd 34 numbered years, beginning January 1, 2001. -24- LRB9011301THpk 1 (N) General State Aid Adjustment Grant. 2 (1) Any school district subject to property tax 3 extension limitations as imposed under the provisions of the 4 Property Tax Extension Limitation Law shall be entitled to 5 receive, subject to the qualifications and requirements of 6 this subsection, a general State aid adjustment grant. 7 Eligibility for this grant shall be determined on an annual 8 basis and claims for grant payments shall be paid subject to 9 appropriations made specific to this subsection. For 10 purposes of this subsection the following terms shall have 11 the following meanings: 12 "Budget Year": The school year for which general State 13 aid is calculated and awarded under subsection (E). 14 "Current Year": The school year immediately preceding 15 the Budget Year. 16 "Base Tax Year": The property tax levy year used to 17 calculate the Budget Year allocation of general State aid. 18 "Preceding Tax Year": The property tax levy year 19 immediately preceding the Base Tax Year. 20 "Extension Limitation Ratio": A numerical ratio, 21 certified by a school district's County Clerk, in which the 22 numerator is the Base Tax Year's tax extension amount 23 resulting from the Operating Tax Rate and the denominator is 24 the Preceding Tax Year's tax extension amount resulting from 25 the Operating Tax Rate. 26 "Operating Tax Rate": The operating tax rate as defined 27 in subsection (A). 28 (2) To qualify for a general State aid adjustment grant, 29 a school district must meet all of the following eligibility 30 criteria for each Budget Year for which a grant is claimed: 31 (a) The Operating Tax Rate of the school district 32 in the Preceding Tax Year was or, absent any reduction in 33 that Operating Tax Rate made by Clerk of the County as a 34 result of the requirements of the Property Tax Extension -25- LRB9011301THpk 1 Limitation Law, would have been at least 3.00% in the 2 case of a school district maintaining grades kindergarten 3 through 12, at least 2.30% in the case of a school 4 district maintaining grades kindergarten through 8, or at 5 least 1.41% in the case of a school district maintaining 6 grades 9 through 12. 7 (b) The Operating Tax Rate of the school district 8 for the Base Tax Year was reduced by the Clerk of the 9 County as a result of the requirements of the Property 10 Tax Extension Limitation Law. 11 (c) The Available Local Resources per pupil of the 12 school district as calculated pursuant to subsection (D) 13 using the Base Tax Year are less than the product of 1.75 14 times the Foundation Level for the Budget Year. 15 (d) The school district has filed a proper and 16 timely claim for a general State aid adjustment grant as 17 required under this subsection. 18 (3) A claim for grant assistance under this subsection 19 shall be filed with the State Board of Education on or before 20 January 1 of the Current Year for a grant for the Budget 21 Year. The claim shall be made on forms prescribed by the 22 State Board of Education and must be accompanied by a written 23 statement from the Clerk of the County, certifying: 24 (a) That the school district has its extension for 25 the Base Tax Year reduced as a result of the Property Tax 26 Extension Limitation Law. 27 (b) That the Operating Tax Rate of the school 28 district for the Preceding Tax Year or its Operating Tax 29 Rate for the Preceding Tax Year before it was reduced by 30 the Clerk of the County as a result of the requirements 31 of the Property Tax Extension Limitation Law met the tax 32 rate requirements of subdivision (N)(2) of this Section. 33 (c) The Extension Limitation Ratio as that term is 34 defined in this subsection. -26- LRB9011301THpk 1 (4) On or before August 1 of the Budget Year the State 2 Board of Education shall calculate, for all school districts 3 meeting the other requirements of this subsection, the amount 4 of the general State aid adjustment grant, if any, that the 5 school districts are eligible to receive in the Budget Year. 6 The amount of the general State aid adjustment grant shall be 7 calculated as follows: 8 (a) Determine the school district's general State 9 aid grant for the Budget Year as provided in accordance 10 with the provisions of subsection (E). 11 (b) Determine the school district's adjusted level 12 of general State aid by utilizing in the calculation of 13 Available Local Resources an equalized assessed valuation 14 that is the equalized assessed valuation of the Preceding 15 Tax Year multiplied by the Extension Limitation Ratio. 16 (c) Subtract the sum derived in subparagraph (a) 17 from the sum derived in subparagraph (b). If the result 18 is a positive number, that amount shall be the general 19 State aid adjustment grant that the district is eligible 20 to receive. 21 (5) The State Board of Education shall in the Current 22 Year, based upon claims filed in the Current Year, recommend 23 to the General Assembly an appropriation amount for the 24 general State aid adjustment grants to be made in the Budget 25 Year. 26 (6) Claims for general State aid adjustment grants shall 27 be paid in a lump sum on or before January 1 of the Budget 28 Year only from appropriations made by the General Assembly 29 expressly for claims under this subsection. No such claims 30 may be paid from amounts appropriated for any other purpose 31 provided for under this Section. In the event that the 32 appropriation for claims under this subsection is 33 insufficient to meet all Budget Year claims for a general 34 State aid adjustment grant, the appropriation available shall -27- LRB9011301THpk 1 be proportionately prorated by the State Board of Education 2 amongst all districts filing for and entitled to payments. 3 (7) The State Board of Education shall promulgate the 4 required claim forms and rules necessary to implement the 5 provisions of this subsection. 6 (O) References. 7 (1) References in other laws to the various subdivisions 8 of Section 18-8 as that Section existed before its repeal and 9 replacement by this Section 18-8.05 shall be deemed to refer 10 to the corresponding provisions of this Section 18-8.05, to 11 the extent that those references remain applicable. 12 (2) References in other laws to State Chapter 1 funds 13 shall be deemed to refer to the supplemental general State 14 aid provided under subsection (H) of this Section. 15 (Source: P.A. 90-548, eff. 7-1-98.) 16 Section 99. Effective date. This Act takes effect July 17 1, 1998.