State of Illinois
91st General Assembly
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91_HB3954

 
                                               LRB9112637NTpk

 1        AN ACT to amend  the  School  Code  by  changing  Section
 2    18-8.05.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.   The  School  Code  is  amended  by  changing
 6    Section 18-8.05 as follows:

 7        (105 ILCS 5/18-8.05)
 8        Sec.  18-8.05.  Basis  for apportionment of general State
 9    financial aid and  supplemental  general  State  aid  to  the
10    common schools for the 1998-1999 and subsequent school years.

11    (A)  General Provisions.
12        (1)  The   provisions   of  this  Section  apply  to  the
13    1998-1999 and subsequent school years.  The system of general
14    State financial aid provided for in this Section is  designed
15    to  assure that, through a combination of State financial aid
16    and required local resources, the financial support  provided
17    each  pupil  in  Average Daily Attendance equals or exceeds a
18    prescribed per pupil Foundation Level.  This formula approach
19    imputes a level of per pupil Available  Local  Resources  and
20    provides  for  the  basis  to  calculate a per pupil level of
21    general State financial aid that,  when  added  to  Available
22    Local Resources, equals or exceeds the Foundation Level.  The
23    amount  of  per  pupil general State financial aid for school
24    districts,  in  general,  varies  in  inverse   relation   to
25    Available  Local Resources.  Per pupil amounts are based upon
26    each school district's Average Daily Attendance as that  term
27    is defined in this Section.
28        (2)  In  addition  to general State financial aid, school
29    districts with specified levels or concentrations  of  pupils
30    from   low   income   households   are  eligible  to  receive
31    supplemental general State financial aid grants  as  provided
 
                            -2-                LRB9112637NTpk
 1    pursuant to subsection (H). The supplemental State aid grants
 2    provided  for  school districts under subsection (H) shall be
 3    appropriated for distribution to school districts as part  of
 4    the  same  line item in which the general State financial aid
 5    of school districts is appropriated under this Section.
 6        (3)  To receive financial assistance under this  Section,
 7    school  districts  are required to file claims with the State
 8    Board of Education, subject to the following requirements:
 9             (a)  Any school district which fails for  any  given
10        school  year to maintain school as required by law, or to
11        maintain a recognized school is not eligible to file  for
12        such  school  year any claim upon the Common School Fund.
13        In case of  nonrecognition  of  one  or  more  attendance
14        centers   in   a   school  district  otherwise  operating
15        recognized schools, the claim of the  district  shall  be
16        reduced   in  the  proportion  which  the  Average  Daily
17        Attendance in the attendance center or  centers  bear  to
18        the  Average  Daily Attendance in the school district.  A
19        "recognized school" means any public school  which  meets
20        the standards as established for recognition by the State
21        Board  of  Education.   A  school  district or attendance
22        center not having recognition status  at  the  end  of  a
23        school term is entitled to receive State aid payments due
24        upon   a  legal  claim  which  was  filed  while  it  was
25        recognized.
26             (b)  School district claims filed under this Section
27        are subject to Sections 18-9, 18-10, and 18-12, except as
28        otherwise provided in this Section.
29             (c)  If a  school  district  operates  a  full  year
30        school  under  Section  10-19.1, the general State aid to
31        the school district shall  be  determined  by  the  State
32        Board  of  Education  in  accordance with this Section as
33        near as may be applicable.
34             (d) (Blank).
 
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 1        (4)  Except as provided in subsections (H) and  (L),  the
 2    board  of  any  district receiving any of the grants provided
 3    for in this Section may apply those  funds  to  any  fund  so
 4    received   for   which  that  board  is  authorized  to  make
 5    expenditures by law.
 6        School districts are not  required  to  exert  a  minimum
 7    Operating  Tax  Rate in order to qualify for assistance under
 8    this Section.
 9        (5)  As used in this Section the  following  terms,  when
10    capitalized, shall have the meaning ascribed herein:
11             (a)  "Average  Daily  Attendance":  A count of pupil
12        attendance  in  school,  averaged  as  provided  for   in
13        subsection   (C)  and  utilized  in  deriving  per  pupil
14        financial support levels.
15             (b)  "Available Local Resources":  A computation  of
16        local  financial  support,  calculated  on  the  basis of
17        Average Daily Attendance and derived as provided pursuant
18        to subsection (D).
19             (c)  "Corporate   Personal   Property    Replacement
20        Taxes":  Funds paid to local school districts pursuant to
21        "An  Act  in  relation  to  the  abolition  of ad valorem
22        personal property tax and  the  replacement  of  revenues
23        lost thereby, and amending and repealing certain Acts and
24        parts  of Acts in connection therewith", certified August
25        14, 1979, as amended (Public Act 81-1st S.S.-1).
26             (d)  "Foundation Level":  A prescribed level of  per
27        pupil  financial  support  as  provided for in subsection
28        (B).
29             (e)  "Operating  Tax  Rate":   All  school  district
30        property taxes extended for all purposes, except Bond and
31        Interest, Summer School, Rent, Capital  Improvement,  and
32        Vocational Education Building purposes.

33    (B)  Foundation Level.
34        (1)  The  Foundation Level is a figure established by the
 
                            -4-                LRB9112637NTpk
 1    State representing the minimum level of per  pupil  financial
 2    support  that  should  be  available to provide for the basic
 3    education of each pupil in Average Daily Attendance.  As  set
 4    forth  in  this  Section,  each school district is assumed to
 5    exert  a  sufficient  local  taxing  effort  such  that,   in
 6    combination with the aggregate of general State financial aid
 7    provided  the  district,  an  aggregate  of  State  and local
 8    resources are available to meet the basic education needs  of
 9    pupils in the district.
10        (2)  For  the 1998-1999 school year, the Foundation Level
11    of support is $4,225.  For the  1999-2000  school  year,  the
12    Foundation  Level  of  support  is $4,325.  For the 2000-2001
13    school year, the Foundation Level of support is $4,425.
14        (3)  For the 2001-2002 school year and each  school  year
15    thereafter, the Foundation Level of support is $4,425 or such
16    greater  amount  as  may be established by law by the General
17    Assembly.

18    (C)  Average Daily Attendance.
19        (1)  For  purposes  of  calculating  general  State   aid
20    pursuant  to  subsection  (E),  an  Average  Daily Attendance
21    figure shall  be  utilized.   The  Average  Daily  Attendance
22    figure  for formula calculation purposes shall be the monthly
23    average of the actual number of pupils in attendance of  each
24    school district, as further averaged for the best 3 months of
25    pupil  attendance for each school district.  In compiling the
26    figures for  the  number  of  pupils  in  attendance,  school
27    districts  and  the  State  Board  of  Education  shall,  for
28    purposes  of  general  State  aid funding, conform attendance
29    figures to the requirements of subsection (F).
30        (2)  The Average Daily  Attendance  figures  utilized  in
31    subsection (E) shall be the requisite attendance data for the
32    school  year  immediately preceding the school year for which
33    general State aid is being calculated.
 
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 1    (D)  Available Local Resources.
 2        (1)  For  purposes  of  calculating  general  State   aid
 3    pursuant  to  subsection  (E),  a representation of Available
 4    Local Resources per  pupil,  as  that  term  is  defined  and
 5    determined  in this subsection, shall be utilized.  Available
 6    Local Resources per pupil shall include a  calculated  dollar
 7    amount representing local school district revenues from local
 8    property   taxes   and   from   Corporate  Personal  Property
 9    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
10    Average Daily Attendance.
11        (2)  In  determining  a  school  district's  revenue from
12    local property taxes, the  State  Board  of  Education  shall
13    utilize  the  equalized  assessed  valuation  of  all taxable
14    property of each school district as of September  30  of  the
15    previous  year.   The  equalized  assessed valuation utilized
16    shall be obtained and determined as  provided  in  subsection
17    (G).
18        (3)  For school districts maintaining grades kindergarten
19    through  12,  local  property tax revenues per pupil shall be
20    calculated  as  the  product  of  the  applicable   equalized
21    assessed  valuation for the district multiplied by 3.00%, and
22    divided by the district's Average  Daily  Attendance  figure.
23    For  school districts maintaining grades kindergarten through
24    8, local property tax revenues per pupil shall be  calculated
25    as the product of the applicable equalized assessed valuation
26    for  the  district  multiplied  by  2.30%, and divided by the
27    district's  Average  Daily  Attendance  figure.   For  school
28    districts maintaining grades 9 through 12, local property tax
29    revenues per pupil shall be the applicable equalized assessed
30    valuation of the district multiplied by 1.05%, and divided by
31    the district's Average Daily Attendance figure.
32        (4)  The Corporate Personal  Property  Replacement  Taxes
33    paid to each school district during the calendar year 2 years
34    before  the  calendar  year  in  which  a school year begins,
 
                            -6-                LRB9112637NTpk
 1    divided by the  Average  Daily  Attendance  figure  for  that
 2    district,  shall  be added to the local property tax revenues
 3    per pupil as derived by the application  of  the  immediately
 4    preceding  paragraph (3).  The sum of these per pupil figures
 5    for each school district  shall  constitute  Available  Local
 6    Resources  as  that term is utilized in subsection (E) in the
 7    calculation of general State aid.

 8    (E)  Computation of General State Aid.
 9        (1)  For each school year, the amount  of  general  State
10    aid  allotted  to  a school district shall be computed by the
11    State Board of Education as provided in this subsection.
12        (2)  For any school district for  which  Available  Local
13    Resources  per  pupil  is less than the product of 0.93 times
14    the Foundation Level, general State  aid  for  that  district
15    shall  be  calculated  as  an  amount equal to the Foundation
16    Level minus Available  Local  Resources,  multiplied  by  the
17    Average Daily Attendance of the school district.
18        (3)  For  any  school  district for which Available Local
19    Resources per pupil is equal to or greater than  the  product
20    of  0.93 times the Foundation Level and less than the product
21    of 1.75 times the Foundation Level, the general State aid per
22    pupil shall be a decimal proportion of the  Foundation  Level
23    derived   using   a  linear  algorithm.   Under  this  linear
24    algorithm, the calculated general State aid per  pupil  shall
25    decline   in  direct  linear  fashion  from  0.07  times  the
26    Foundation Level for a school district with  Available  Local
27    Resources  equal  to the product of 0.93 times the Foundation
28    Level, to 0.05  times  the  Foundation  Level  for  a  school
29    district  with Available Local Resources equal to the product
30    of 1.75  times  the  Foundation  Level.   The  allocation  of
31    general  State  aid  for  school  districts  subject  to this
32    paragraph 3 shall be the calculated  general  State  aid  per
33    pupil  figure  multiplied  by the Average Daily Attendance of
34    the school district.
 
                            -7-                LRB9112637NTpk
 1        (4)  For any school district for  which  Available  Local
 2    Resources  per  pupil  equals  or exceeds the product of 1.75
 3    times the Foundation Level, the general  State  aid  for  the
 4    school  district  shall  be calculated as the product of $218
 5    multiplied by the Average  Daily  Attendance  of  the  school
 6    district.
 7        (5)  The  amount  of  general  State  aid  allocated to a
 8    school district for the 1999-2000  school  year  meeting  the
 9    requirements  set  forth  in  paragraph (4) of subsection (G)
10    shall be increased by an amount equal to  the  general  State
11    aid  that  would  have  been received by the district for the
12    1998-1999 school year by utilizing the  Extension  Limitation
13    Equalized  Assessed  Valuation as calculated in paragraph (4)
14    of subsection (G) less the general State aid allotted for the
15    1998-1999 school year.  This amount shall  be  deemed  a  one
16    time  increase, and shall not affect any future general State
17    aid allocations.

18    (F)  Compilation of Average Daily Attendance.
19        (1)  Each school district shall, by July 1 of each  year,
20    submit  to  the State Board of Education, on forms prescribed
21    by the State Board of Education, attendance figures  for  the
22    school  year  that began in the preceding calendar year.  The
23    attendance information  so  transmitted  shall  identify  the
24    average daily attendance figures for each month of the school
25    year,  except  that any days of attendance in August shall be
26    added to the month of September and any days of attendance in
27    June shall be added to the month of May.
28        Except as otherwise provided in  this  Section,  days  of
29    attendance  by  pupils  shall be counted only for sessions of
30    not less than 5 clock hours of  school  work  per  day  under
31    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
32    personnel   or   volunteer   personnel   when   engaging   in
33    non-teaching  duties  and  supervising  in  those   instances
34    specified in subsection (a) of Section 10-22.34 and paragraph
 
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 1    10  of  Section 34-18, with pupils of legal school age and in
 2    kindergarten and grades 1 through 12.
 3        Days of attendance by tuition pupils shall be  accredited
 4    only  to  the  districts that pay the tuition to a recognized
 5    school. However, a general State aid adjustment  grant  shall
 6    be made for students enrolled in a school district who do not
 7    reside  in  the school district to offset any loss in general
 8    State aid.
 9        (2)  Days of attendance by pupils of less  than  5  clock
10    hours  of school shall be subject to the following provisions
11    in the compilation of Average Daily Attendance.
12             (a)  Pupils regularly enrolled in  a  public  school
13        for  only  a part of the school day may be counted on the
14        basis of 1/6 day for every class hour of  instruction  of
15        40 minutes or more attended pursuant to such enrollment.
16             (b)  Days  of  attendance  may  be less than 5 clock
17        hours on the opening and closing of the school term,  and
18        upon  the first day of pupil attendance, if preceded by a
19        day  or  days  utilized  as  an  institute  or  teachers'
20        workshop.
21             (c)  A session of 4  or  more  clock  hours  may  be
22        counted  as a day of attendance upon certification by the
23        regional  superintendent,  and  approved  by  the   State
24        Superintendent  of  Education  to  the  extent  that  the
25        district has been forced to use daily multiple sessions.
26             (d)  A  session  of  3  or  more  clock hours may be
27        counted as a day of attendance (1) when the remainder  of
28        the school day or at least 2 hours in the evening of that
29        day  is  utilized  for an in-service training program for
30        teachers, up to a maximum of 5 days per  school  year  of
31        which  a maximum of 4 days of such 5 days may be used for
32        parent-teacher conferences, provided a district  conducts
33        an  in-service  training  program  for teachers which has
34        been approved by the State Superintendent  of  Education;
 
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 1        or,  in  lieu of 4 such days, 2 full days may be used, in
 2        which event each such day may be  counted  as  a  day  of
 3        attendance;  and  (2)  when  days  in  addition  to those
 4        provided in item (1) are scheduled by a  school  pursuant
 5        to  its  school improvement plan adopted under Article 34
 6        or its revised or amended school improvement plan adopted
 7        under Article 2, provided that (i) such sessions of 3  or
 8        more  clock  hours  are  scheduled  to  occur  at regular
 9        intervals, (ii) the remainder of the school days in which
10        such sessions occur are utilized for in-service  training
11        programs   or  other  staff  development  activities  for
12        teachers, and (iii) a sufficient  number  of  minutes  of
13        school  work under the direct supervision of teachers are
14        added to the school days between such regularly scheduled
15        sessions to  accumulate  not  less  than  the  number  of
16        minutes  by  which such sessions of 3 or more clock hours
17        fall short of 5 clock hours. Any full days used  for  the
18        purposes  of  this  paragraph shall not be considered for
19        computing average daily attendance.  Days  scheduled  for
20        in-service    training    programs,   staff   development
21        activities,  or   parent-teacher   conferences   may   be
22        scheduled  separately  for  different  grade  levels  and
23        different attendance centers of the district.
24             (e)  A  session  of  not less than one clock hour of
25        teaching hospitalized or homebound pupils on-site  or  by
26        telephone  to  the classroom may be counted as 1/2 day of
27        attendance, however these pupils must receive 4  or  more
28        clock  hours  of instruction to be counted for a full day
29        of attendance.
30             (f)  A session of at least  4  clock  hours  may  be
31        counted  as  a  day of attendance for first grade pupils,
32        and pupils in full day kindergartens, and a session of  2
33        or  more hours may be counted as 1/2 day of attendance by
34        pupils in kindergartens which provide  only  1/2  day  of
 
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 1        attendance.
 2             (g)  For  children  with  disabilities who are below
 3        the age of 6 years and who cannot attend 2 or more  clock
 4        hours  because  of  their  disability  or  immaturity,  a
 5        session of not less than one clock hour may be counted as
 6        1/2  day  of  attendance; however for such children whose
 7        educational needs so require a session of 4 or more clock
 8        hours may be counted as a full day of attendance.
 9             (h)  A recognized kindergarten  which  provides  for
10        only  1/2  day of attendance by each pupil shall not have
11        more than 1/2 day of attendance counted in any  one  day.
12        However, kindergartens may count 2 1/2 days of attendance
13        in  any  5 consecutive school days.  When a pupil attends
14        such a kindergarten for 2 half days  on  any  one  school
15        day,  the  pupil  shall  have  the following day as a day
16        absent from school, unless the  school  district  obtains
17        permission  in  writing  from the State Superintendent of
18        Education.  Attendance at kindergartens which provide for
19        a full day of attendance by each pupil shall  be  counted
20        the  same  as attendance by first grade pupils.  Only the
21        first year of attendance in  one  kindergarten  shall  be
22        counted,  except  in  case  of  children  who entered the
23        kindergarten  in  their  fifth  year  whose   educational
24        development  requires  a  second  year of kindergarten as
25        determined under the rules and regulations of  the  State
26        Board of Education.

27    (G)  Equalized Assessed Valuation Data.
28        (1)  For  purposes  of the calculation of Available Local
29    Resources required pursuant  to  subsection  (D),  the  State
30    Board  of  Education  shall  secure  from  the  Department of
31    Revenue the value as equalized or assessed by the  Department
32    of  Revenue of all taxable property of every school district,
33    together with (i) the applicable tax rate used  in  extending
34    taxes for the funds of the district as of September 30 of the
 
                            -11-               LRB9112637NTpk
 1    previous  year  and  (ii)  the  limiting  rate for all school
 2    districts subject to property tax  extension  limitations  as
 3    imposed under the Property Tax Extension Limitation Law.
 4        This equalized assessed valuation, as adjusted further by
 5    the requirements of this subsection, shall be utilized in the
 6    calculation of Available Local Resources.
 7        (2)  The  equalized  assessed  valuation in paragraph (1)
 8    shall be adjusted, as applicable, in the following manner:
 9             (a)  For the purposes of calculating State aid under
10        this Section, with  respect  to  any  part  of  a  school
11        district  within  a redevelopment project area in respect
12        to  which  a  municipality  has  adopted  tax   increment
13        allocation   financing  pursuant  to  the  Tax  Increment
14        Allocation Redevelopment Act, Sections 11-74.4-1  through
15        11-74.4-11   of   the  Illinois  Municipal  Code  or  the
16        Industrial Jobs Recovery Law, Sections 11-74.6-1  through
17        11-74.6-50 of the Illinois Municipal Code, no part of the
18        current  equalized  assessed  valuation  of real property
19        located in any such project area which is attributable to
20        an increase above the total  initial  equalized  assessed
21        valuation  of  such property shall be used as part of the
22        equalized assessed valuation of the district, until  such
23        time  as  all redevelopment project costs have been paid,
24        as provided in Section 11-74.4-8  of  the  Tax  Increment
25        Allocation  Redevelopment Act or in Section 11-74.6-35 of
26        the Industrial Jobs Recovery Law.  For the purpose of the
27        equalized assessed valuation of the district,  the  total
28        initial  equalized  assessed  valuation  or  the  current
29        equalized  assessed  valuation, whichever is lower, shall
30        be used until such  time  as  all  redevelopment  project
31        costs have been paid.
32             (b)  The  real property equalized assessed valuation
33        for a school district shall be  adjusted  by  subtracting
34        from  the real property value as equalized or assessed by
 
                            -12-               LRB9112637NTpk
 1        the Department of Revenue  for  the  district  an  amount
 2        computed by dividing the amount of any abatement of taxes
 3        under  Section  18-170  of the Property Tax Code by 3.00%
 4        for a district maintaining  grades  kindergarten  through
 5        12,   by   2.30%   for   a  district  maintaining  grades
 6        kindergarten through  8,  or  by  1.05%  for  a  district
 7        maintaining grades 9 through 12 and adjusted by an amount
 8        computed by dividing the amount of any abatement of taxes
 9        under  subsection  (a)  of Section 18-165 of the Property
10        Tax Code by the same percentage rates for  district  type
11        as specified in this subparagraph (b).
12        (3)  For  the  1999-2000 school year and each school year
13    thereafter, if a school district meets all of the criteria of
14    this subsection (G)(3), the school district's Available Local
15    Resources shall be calculated under subsection (D) using  the
16    district's  Extension Limitation Equalized Assessed Valuation
17    as calculated under this subsection (G)(3).
18        For purposes of  this  subsection  (G)(3)  the  following
19    terms shall have the following meanings:
20             "Budget  Year":   The  school year for which general
21        State aid is calculated and awarded under subsection (E).
22             "Base Tax Year": The property tax levy year used  to
23        calculate  the  Budget  Year  allocation of general State
24        aid.
25             "Preceding Tax Year": The  property  tax  levy  year
26        immediately preceding the Base Tax Year.
27             "Base  Tax Year's Tax Extension": The product of the
28        equalized assessed valuation utilized by the County Clerk
29        in the Base Tax Year multiplied by the limiting  rate  as
30        calculated  by  the  County  Clerk  and  defined  in  the
31        Property Tax Extension Limitation Law.
32             "Preceding Tax Year's Tax Extension": The product of
33        the  equalized  assessed valuation utilized by the County
34        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
 
                            -13-               LRB9112637NTpk
 1        Operating Tax Rate as defined in subsection (A).
 2             "Extension Limitation  Ratio":  A  numerical  ratio,
 3        certified  by the County Clerk, in which the numerator is
 4        the Base Tax Year's Tax Extension and the denominator  is
 5        the Preceding Tax Year's Tax Extension.
 6             "Operating  Tax  Rate":  The  operating  tax rate as
 7        defined in subsection (A).
 8        If a school district is subject to property tax extension
 9    limitations as  imposed  under  the  Property  Tax  Extension
10    Limitation  Law, and if the Available Local Resources of that
11    school district as  calculated  pursuant  to  subsection  (D)
12    using  the  Base  Tax  Year are less than the product of 1.75
13    times the Foundation Level for the  Budget  Year,  the  State
14    Board  of  Education shall calculate the Extension Limitation
15    Equalized Assessed  Valuation  of  that  district.   For  the
16    1999-2000  school  year,  the  Extension Limitation Equalized
17    Assessed Valuation of a school district as calculated by  the
18    State Board of Education shall be equal to the product of the
19    district's   1996   Equalized   Assessed  Valuation  and  the
20    district's Extension Limitation  Ratio.   For  the  2000-2001
21    school  year  and  each school year thereafter, the Extension
22    Limitation Equalized Assessed Valuation of a school  district
23    as  calculated by the State Board of Education shall be equal
24    to the product of the last  calculated  Extension  Limitation
25    Equalized  Assessed  Valuation  and  the district's Extension
26    Limitation  Ratio.  If  the  Extension  Limitation  Equalized
27    Assessed Valuation of a school district as  calculated  under
28    this  subsection (G)(3) is less than the district's equalized
29    assessed valuation  as  calculated  pursuant  to  subsections
30    (G)(1)  and  (G)(2),  then  for  purposes  of calculating the
31    district's general State aid for the Budget Year pursuant  to
32    subsection  (E), that Extension Limitation Equalized Assessed
33    Valuation shall  be  utilized  to  calculate  the  district's
34    Available Local Resources under subsection (D).
 
                            -14-               LRB9112637NTpk
 1        (4)  For  the  purposes  of calculating general State aid
 2    for the 1999-2000 school year  only,  if  a  school  district
 3    experienced   a   triennial  reassessment  on  the  equalized
 4    assessed valuation used  in  calculating  its  general  State
 5    financial  aid  apportionment  for the 1998-1999 school year,
 6    the State Board of Education shall  calculate  the  Extension
 7    Limitation  Equalized Assessed Valuation that would have been
 8    used to calculate the district's 1998-1999 general State aid.
 9    This amount shall equal the product of the equalized assessed
10    valuation  used  to  calculate  general  State  aid  for  the
11    1997-1998 school year and the district's Extension Limitation
12    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
13    Valuation  of  the  school  district as calculated under this
14    paragraph (4) is less than the district's equalized  assessed
15    valuation  utilized  in  calculating the district's 1998-1999
16    general  State  aid  allocation,   then   for   purposes   of
17    calculating  the  district's  general  State  aid pursuant to
18    paragraph (5) of subsection (E),  that  Extension  Limitation
19    Equalized  Assessed  Valuation shall be utilized to calculate
20    the district's Available Local Resources.
21        (5)  For school districts  having  a  majority  of  their
22    equalized  assessed  valuation  in  any  county  except Cook,
23    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
24    general  State  aid  allocated to the school district for the
25    1999-2000 school year under the provisions of subsection (E),
26    (H), and (J) of this Section  is  less  than  the  amount  of
27    general State aid allocated to the district for the 1998-1999
28    school  year  under these subsections, then the general State
29    aid of the district for the 1999-2000 school year only  shall
30    be  increased  by  the difference between these amounts.  The
31    total payments made under this paragraph (5) shall not exceed
32    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
33    $14,000,000.

34    (H)  Supplemental General State Aid.
 
                            -15-               LRB9112637NTpk
 1        (1)  In  addition  to  the  general  State  aid  a school
 2    district is allotted pursuant to subsection  (E),  qualifying
 3    school  districts  shall receive a grant, paid in conjunction
 4    with  a  district's  payments  of  general  State  aid,   for
 5    supplemental  general  State aid based upon the concentration
 6    level of  children  from  low-income  households  within  the
 7    school  district.  Supplemental State aid grants provided for
 8    school districts under this subsection shall be  appropriated
 9    for distribution to school districts as part of the same line
10    item  in  which  the  general  State  financial aid of school
11    districts is appropriated under this Section. For purposes of
12    this subsection, the term  "Low-Income  Concentration  Level"
13    shall  be  the  low-income eligible pupil count from the most
14    recently available federal  census  divided  by  the  Average
15    Daily  Attendance  of  the  school district. If, however, the
16    percentage decrease from the 2 most recent  federal  censuses
17    in  the  low-income  eligible  pupil  count  of a high school
18    district with fewer than 400 students exceeds by 75% or  more
19    the  percentage change in the total low-income eligible pupil
20    count  of  contiguous  elementary  school  districts,   whose
21    boundaries are coterminous with the high school district, the
22    high  school  district's low-income eligible pupil count from
23    the earlier federal census shall be the number  used  as  the
24    low-income eligible pupil count for the high school district,
25    for purposes of this subsection (H).
26        (2)  Supplemental  general  State  aid  pursuant  to this
27    subsection shall be provided as follows:
28             (a)  For any  school  district  with  a  Low  Income
29        Concentration  Level  of  at least 20% and less than 35%,
30        the grant for any school year shall be $800 multiplied by
31        the low income eligible pupil count.
32             (b)  For any  school  district  with  a  Low  Income
33        Concentration  Level  of  at least 35% and less than 50%,
34        the grant for the 1998-1999 school year shall  be  $1,100
 
                            -16-               LRB9112637NTpk
 1        multiplied by the low income eligible pupil count.
 2             (c)  For  any  school  district  with  a  Low Income
 3        Concentration Level of at least 50% and  less  than  60%,
 4        the  grant  for  the  1998-99 school year shall be $1,500
 5        multiplied by the low income eligible pupil count.
 6             (d)  For any  school  district  with  a  Low  Income
 7        Concentration  Level  of  60%  or more, the grant for the
 8        1998-99 school year shall be $1,900 multiplied by the low
 9        income eligible pupil count.
10             (e)  For the 1999-2000 school year,  the  per  pupil
11        amount  specified  in  subparagraphs  (b),  (c),  and (d)
12        immediately above shall be increased to  $1,243,  $1,600,
13        and $2,000, respectively.
14             (f)  For  the  2000-2001  school year, the per pupil
15        amounts specified in  subparagraphs  (b),  (c),  and  (d)
16        immediately  above  shall  be $1,273, $1,640, and $2,050,
17        respectively.
18        (3)  School districts with an Average Daily Attendance of
19    more than  1,000  and  less  than  50,000  that  qualify  for
20    supplemental  general  State  aid pursuant to this subsection
21    shall submit a plan to the State Board of Education prior  to
22    October  30  of  each year for the use of the funds resulting
23    from this grant of supplemental general  State  aid  for  the
24    improvement  of  instruction  in  which  priority is given to
25    meeting the education needs of disadvantaged children.   Such
26    plan   shall  be  submitted  in  accordance  with  rules  and
27    regulations promulgated by the State Board of Education.
28        (4)  School districts with an Average Daily Attendance of
29    50,000 or more that qualify for  supplemental  general  State
30    aid   pursuant  to  this  subsection  shall  be  required  to
31    distribute from funds available pursuant to this Section,  no
32    less  than  $261,000,000  in  accordance  with  the following
33    requirements:
34             (a)  The required amounts shall  be  distributed  to
 
                            -17-               LRB9112637NTpk
 1        the  attendance centers within the district in proportion
 2        to the number  of  pupils  enrolled  at  each  attendance
 3        center  who are eligible to receive free or reduced-price
 4        lunches or breakfasts under the federal  Child  Nutrition
 5        Act  of  1966  and  under  the  National School Lunch Act
 6        during the immediately preceding school year.
 7             (b)  The   distribution   of   these   portions   of
 8        supplemental  and  general  State  aid  among  attendance
 9        centers according to  these  requirements  shall  not  be
10        compensated  for  or  contravened  by  adjustments of the
11        total of  other  funds  appropriated  to  any  attendance
12        centers, and the Board of Education shall utilize funding
13        from  one  or several sources in order to fully implement
14        this provision annually prior to the opening of school.
15             (c)  Each attendance center shall be provided by the
16        school district a distribution  of  noncategorical  funds
17        and other categorical funds to which an attendance center
18        is entitled under law in order that the general State aid
19        and   supplemental   general   State   aid   provided  by
20        application of this subsection  supplements  rather  than
21        supplants  the noncategorical funds and other categorical
22        funds provided by the school district to  the  attendance
23        centers.
24             (d)  Any  funds made available under this subsection
25        that by reason of the provisions of this  subsection  are
26        not  required  to be allocated and provided to attendance
27        centers may be used and appropriated by the board of  the
28        district for any lawful school purpose.
29             (e)  Funds received by an attendance center pursuant
30        to this subsection shall be used by the attendance center
31        at  the  discretion  of  the  principal  and local school
32        council for programs to improve educational opportunities
33        at qualifying schools through the following programs  and
34        services:  early  childhood education, reduced class size
 
                            -18-               LRB9112637NTpk
 1        or improved adult to student classroom ratio,  enrichment
 2        programs,  remedial  assistance,  attendance improvement,
 3        and other  educationally  beneficial  expenditures  which
 4        supplement  the  regular and basic programs as determined
 5        by the State Board of Education.   Funds  provided  shall
 6        not be expended for any political or lobbying purposes as
 7        defined by board rule.
 8             (f)  Each district subject to the provisions of this
 9        subdivision  (H)(4)  shall  submit  an acceptable plan to
10        meet the educational needs of disadvantaged children,  in
11        compliance  with  the  requirements of this paragraph, to
12        the State Board of Education prior to  July  15  of  each
13        year. This plan shall be consistent with the decisions of
14        local  school  councils concerning the school expenditure
15        plans developed in accordance  with  part  4  of  Section
16        34-2.3.  The State Board shall approve or reject the plan
17        within  60  days  after  its  submission.  If the plan is
18        rejected, the  district  shall  give  written  notice  of
19        intent   to  modify  the  plan  within  15  days  of  the
20        notification of rejection and then submit a modified plan
21        within 30 days after the date of the  written  notice  of
22        intent  to  modify.    Districts may amend approved plans
23        pursuant to rules  promulgated  by  the  State  Board  of
24        Education.
25             Upon  notification  by  the State Board of Education
26        that the district has not submitted a plan prior to  July
27        15  or  a  modified plan within the time period specified
28        herein, the State aid funds  affected  by  that  plan  or
29        modified  plan  shall  be  withheld by the State Board of
30        Education until a plan or modified plan is submitted.
31             If the district fails to  distribute  State  aid  to
32        attendance  centers  in accordance with an approved plan,
33        the plan for the following year shall allocate funds,  in
34        addition   to   the  funds  otherwise  required  by  this
 
                            -19-               LRB9112637NTpk
 1        subsection,  to  those  attendance  centers  which   were
 2        underfunded  during the previous year in amounts equal to
 3        such underfunding.
 4             For purposes of  determining  compliance  with  this
 5        subsection  in relation to the requirements of attendance
 6        center funding, each district subject to  the  provisions
 7        of this subsection shall submit as a separate document by
 8        December  1 of each year a report of expenditure data for
 9        the prior year in addition to  any  modification  of  its
10        current  plan.  If it is determined that there has been a
11        failure to comply with the expenditure provisions of this
12        subsection regarding contravention  or  supplanting,  the
13        State  Superintendent  of Education shall, within 60 days
14        of receipt of the report, notify  the  district  and  any
15        affected local school council.  The district shall within
16        45  days of receipt of that notification inform the State
17        Superintendent of Education of the remedial or corrective
18        action to be taken, whether  by amendment of the  current
19        plan,  if  feasible, or by adjustment in the plan for the
20        following  year.   Failure  to  provide  the  expenditure
21        report or the  notification  of  remedial  or  corrective
22        action  in  a timely manner shall result in a withholding
23        of the affected funds.
24             The State Board of Education shall promulgate  rules
25        and  regulations  to  implement  the  provisions  of this
26        subsection.   No  funds  shall  be  released  under  this
27        subdivision (H)(4) to any district that has not submitted
28        a plan that has been  approved  by  the  State  Board  of
29        Education.

30    (I)  General State Aid for Newly Configured School Districts.
31        (1)  For  a  new  school  district  formed  by  combining
32    property   included  totally  within  2  or  more  previously
33    existing school districts, for its first  year  of  existence
34    the  general  State  aid  and  supplemental general State aid
 
                            -20-               LRB9112637NTpk
 1    calculated under this Section shall be computed for  the  new
 2    district  and for the previously existing districts for which
 3    property is totally included within the new district.  If the
 4    computation on the basis of the previously existing districts
 5    is greater, a supplementary payment equal to  the  difference
 6    shall  be  made for the first 4 years of existence of the new
 7    district.
 8        (2)  For a school  district  which  annexes  all  of  the
 9    territory  of  one or more entire other school districts, for
10    the  first  year  during  which  the  change  of   boundaries
11    attributable  to  such  annexation  becomes effective for all
12    purposes as determined under Section 7-9 or 7A-8, the general
13    State aid and supplemental general State aid calculated under
14    this Section shall be computed for the annexing  district  as
15    constituted  after  the  annexation  and for the annexing and
16    each annexed district as constituted prior to the annexation;
17    and if the computation on  the  basis  of  the  annexing  and
18    annexed  districts  as constituted prior to the annexation is
19    greater, a supplementary  payment  equal  to  the  difference
20    shall  be  made  for  the  first  4 years of existence of the
21    annexing school district as constituted upon such annexation.
22        (3)  For 2 or more school districts which  annex  all  of
23    the  territory  of one or more entire other school districts,
24    and for 2 or more community unit districts which result  upon
25    the  division  (pursuant  to petition under Section 11A-2) of
26    one or more other unit school districts into 2 or more  parts
27    and  which  together include all of the parts into which such
28    other unit school district or districts are so  divided,  for
29    the   first  year  during  which  the  change  of  boundaries
30    attributable to such annexation or division becomes effective
31    for all purposes as determined under Section 7-9  or  11A-10,
32    as  the  case  may be, the general State aid and supplemental
33    general State aid calculated  under  this  Section  shall  be
34    computed   for   each   annexing  or  resulting  district  as
 
                            -21-               LRB9112637NTpk
 1    constituted after the annexation or  division  and  for  each
 2    annexing  and  annexed  district,  or  for each resulting and
 3    divided district, as constituted prior to the  annexation  or
 4    division;  and  if the aggregate of the general State aid and
 5    supplemental  general  State  aid  as  so  computed  for  the
 6    annexing or resulting  districts  as  constituted  after  the
 7    annexation  or  division  is  less  than the aggregate of the
 8    general State aid and supplemental general State  aid  as  so
 9    computed  for  the annexing and annexed districts, or for the
10    resulting and divided districts, as constituted prior to  the
11    annexation or division, then a supplementary payment equal to
12    the  difference  shall be made and allocated between or among
13    the annexing or resulting districts, as constituted upon such
14    annexation or division,  for  the  first  4  years  of  their
15    existence.   The  total difference payment shall be allocated
16    between or among the annexing or resulting districts  in  the
17    same  ratio  as the pupil enrollment from that portion of the
18    annexed or divided district or districts which is annexed  to
19    or included in each such annexing or resulting district bears
20    to  the  total  pupil  enrollment  from the entire annexed or
21    divided district or districts, as such  pupil  enrollment  is
22    determined  for the school year last ending prior to the date
23    when the change of boundaries attributable to the  annexation
24    or  division  becomes effective for all purposes.  The amount
25    of the total difference payment and the amount thereof to  be
26    allocated  to  the  annexing  or resulting districts shall be
27    computed by the State Board of  Education  on  the  basis  of
28    pupil  enrollment  and other data which shall be certified to
29    the State Board of Education, on forms which it shall provide
30    for that purpose, by the regional superintendent  of  schools
31    for each educational service region in which the annexing and
32    annexed  districts,  or  resulting  and divided districts are
33    located.
34        (3.5)  Claims  for  financial   assistance   under   this
 
                            -22-               LRB9112637NTpk
 1    subsection  (I)  shall  not be recomputed except as expressly
 2    provided under this Section.
 3        (4)  Any supplementary payment made under this subsection
 4    (I) shall be treated as separate from all other payments made
 5    pursuant to this Section.

 6    (J)  Supplementary Grants in Aid.
 7        (1)  Notwithstanding  any  other   provisions   of   this
 8    Section,  the  amount  of  the aggregate general State aid in
 9    combination with supplemental general State  aid  under  this
10    Section  for  which each school district is eligible shall be
11    no less than the amount of the aggregate  general  State  aid
12    entitlement  that  was received by the district under Section
13    18-8 (exclusive of amounts received  under  subsections  5(p)
14    and  5(p-5)  of  that  Section)  for the 1997-98 school year,
15    pursuant to the provisions of that Section as it was then  in
16    effect.   If   a  school  district  qualifies  to  receive  a
17    supplementary payment made under  this  subsection  (J),  the
18    amount of the aggregate general State aid in combination with
19    supplemental general State aid under this Section  which that
20    district is eligible to receive for each school year shall be
21    no  less  than  the amount of the aggregate general State aid
22    entitlement that was received by the district  under  Section
23    18-8  (exclusive  of  amounts received under subsections 5(p)
24    and 5(p-5) of that Section) for the  1997-1998  school  year,
25    pursuant  to the provisions of that Section as it was then in
26    effect.
27        (2)  If, as provided in paragraph (1) of this  subsection
28    (J),  a school district is to receive aggregate general State
29    aid in combination with supplemental general State aid  under
30    this  Section  for the 1998-99 school year and any subsequent
31    school year that in any such school year  is  less  than  the
32    amount  of  the  aggregate general State aid entitlement that
33    the district received for the 1997-98 school year, the school
34    district shall also receive, from  a  separate  appropriation
 
                            -23-               LRB9112637NTpk
 1    made  for  purposes  of  this subsection (J), a supplementary
 2    payment that is equal to the amount of the difference in  the
 3    aggregate State aid figures as described in paragraph (1).
 4        (3)  (Blank).

 5    (K)  Grants to Laboratory and Alternative Schools.
 6        In  calculating  the  amount  to be paid to the governing
 7    board of a  public  university  that  operates  a  laboratory
 8    school  under  this Section or to any alternative school that
 9    is operated by a  regional  superintendent  of  schools,  the
10    State Board of Education shall require by rule such reporting
11    requirements as it deems necessary.
12        As  used  in  this  Section,  "laboratory school" means a
13    public school which is  created  and  operated  by  a  public
14    university and approved by the State Board of Education.  The
15    governing  board  of a public university which receives funds
16    from the State  Board  under  this  subsection  (K)  may  not
17    increase  the  number  of students enrolled in its laboratory
18    school from a single district, if that  district  is  already
19    sending  50 or more students, except under a mutual agreement
20    between the school board of a student's district of residence
21    and the university which operates the laboratory  school.   A
22    laboratory  school  may  not  have  more than 1,000 students,
23    excluding students with disabilities in a  special  education
24    program.
25        As  used  in  this  Section, "alternative school" means a
26    public school which is created and  operated  by  a  Regional
27    Superintendent  of Schools and approved by the State Board of
28    Education.  Such alternative schools  may  offer  courses  of
29    instruction  for  which  credit  is  given  in regular school
30    programs, courses to prepare students  for  the  high  school
31    equivalency  testing  program  or vocational and occupational
32    training.   A regional superintendent of schools may contract
33    with a school district or a public community college district
34    to operate an  alternative  school.   An  alternative  school
 
                            -24-               LRB9112637NTpk
 1    serving  more  than  one  educational  service  region may be
 2    established by the regional superintendents of schools of the
 3    affected educational service regions.  An alternative  school
 4    serving  more  than  one  educational  service  region may be
 5    operated under such terms as the regional superintendents  of
 6    schools of those educational service regions may agree.
 7        Each  laboratory  and  alternative  school shall file, on
 8    forms provided by the State Superintendent of  Education,  an
 9    annual  State  aid  claim  which  states  the  Average  Daily
10    Attendance  of  the  school's  students by month.  The best 3
11    months' Average Daily Attendance shall be computed  for  each
12    school.  The  general State aid entitlement shall be computed
13    by multiplying the applicable Average Daily Attendance by the
14    Foundation Level as determined under this Section.

15    (L)  Payments,   Additional   Grants   in   Aid   and   Other
16    Requirements.
17        (1)  For a school district operating under the  financial
18    supervision  of  an  Authority created under Article 34A, the
19    general State aid otherwise payable to  that  district  under
20    this  Section,  but  not  the supplemental general State aid,
21    shall be reduced by an amount equal to  the  budget  for  the
22    operations  of the Authority as certified by the Authority to
23    the State Board of Education, and an  amount  equal  to  such
24    reduction  shall  be  paid  to the Authority created for such
25    district for its operating expenses in the manner provided in
26    Section 18-11.  The remainder of general State school aid for
27    any such district shall be paid in  accordance  with  Article
28    34A  when  that Article provides for a disposition other than
29    that provided by this Article.
30        (2)  (Blank).
31        (3)  Summer school.  Summer school payments shall be made
32    as provided in Section 18-4.3.

33    (M)  Education Funding Advisory Board.
 
                            -25-               LRB9112637NTpk
 1        The Education Funding Advisory Board, hereinafter in this
 2    subsection (M) referred to as the "Board", is hereby created.
 3    The Board shall consist of 5 members who are appointed by the
 4    Governor, by and with the advice and consent of  the  Senate.
 5    The   members  appointed  shall  include  representatives  of
 6    education, business, and  the  general  public.  One  of  the
 7    members  so  appointed shall be designated by the Governor at
 8    the time the appointment is made as the  chairperson  of  the
 9    Board.  The initial members of the Board may be appointed any
10    time after the effective date of this amendatory Act of 1997.
11    The regular term of each member of the Board shall be  for  4
12    years  from  the third Monday of January of the year in which
13    the term of the member's appointment is to  commence,  except
14    that  of  the  5  initial  members  appointed to serve on the
15    Board, the member who is appointed as the  chairperson  shall
16    serve  for  a  term  that commences on the date of his or her
17    appointment and expires on the third Monday of January, 2002,
18    and the remaining 4 members,  by  lots  drawn  at  the  first
19    meeting  of  the  Board  that is held after all 5 members are
20    appointed, shall determine 2 of their  number  to  serve  for
21    terms   that   commence  on  the  date  of  their  respective
22    appointments and expire on the third Monday of January, 2001,
23    and 2 of their number to serve for terms that commence on the
24    date of their respective appointments and expire on the third
25    Monday of January, 2000.  All members appointed to  serve  on
26    the  Board  shall serve until their respective successors are
27    appointed and confirmed.  Vacancies shall be  filled  in  the
28    same  manner  as  original  appointments.   If  a  vacancy in
29    membership occurs at  a  time  when  the  Senate  is  not  in
30    session,  the  Governor  shall  make  a temporary appointment
31    until the next meeting of the Senate, when he  or  she  shall
32    appoint,  by and with the advice and consent of the Senate, a
33    person to fill that membership for the  unexpired  term.   If
34    the  Senate  is  not in session when the initial appointments
 
                            -26-               LRB9112637NTpk
 1    are made, those appointments shall be made as in the case  of
 2    vacancies.
 3        The  Education  Funding  Advisory  Board  shall be deemed
 4    established,  and  the  initial  members  appointed  by   the
 5    Governor  to serve as members of the Board shall take office,
 6    on the date that the Governor makes his or her appointment of
 7    the fifth initial member of the Board, whether those  initial
 8    members   are   then  serving  pursuant  to  appointment  and
 9    confirmation or pursuant to temporary appointments  that  are
10    made by the Governor as in the case of vacancies.
11        The  State  Board  of  Education shall provide such staff
12    assistance to the Education  Funding  Advisory  Board  as  is
13    reasonably  required  for the proper performance by the Board
14    of its responsibilities.
15        For school years after the  2000-2001  school  year,  the
16    Education  Funding  Advisory  Board, in consultation with the
17    State Board  of  Education,  shall  make  recommendations  as
18    provided  in  this subsection (M) to the General Assembly for
19    the foundation level under subdivision (B)(3) of this Section
20    and for the supplemental general State aid grant level  under
21    subsection  (H)  of  this  Section  for  districts  with high
22    concentrations of children  from  poverty.   The  recommended
23    foundation  level  shall be determined based on a methodology
24    which  incorporates  the  basic  education  expenditures   of
25    low-spending  schools  exhibiting  high academic performance.
26    The  Education  Funding  Advisory  Board  shall   make   such
27    recommendations  to  the General Assembly on January 1 of odd
28    numbered years, beginning January 1, 2001.

29    (N)  (Blank).

30    (O)  References.
31        (1)  References in other laws to the various subdivisions
32    of Section 18-8 as that Section existed before its repeal and
33    replacement by this Section 18-8.05 shall be deemed to  refer
 
                            -27-               LRB9112637NTpk
 1    to  the  corresponding provisions of this Section 18-8.05, to
 2    the extent that those references remain applicable.
 3        (2)  References in other laws to State  Chapter  1  funds
 4    shall  be  deemed  to refer to the supplemental general State
 5    aid provided under subsection (H) of this Section.
 6    (Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
 7    90-653, eff. 7-29-98;  90-654,  eff.  7-29-98;  90-655,  eff.
 8    7-30-98;  90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24,
 9    eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99;  91-111,
10    eff.  7-14-99;  91-357,  eff.  7-29-99; 91-533, eff. 8-13-99;
11    revised 8-27-99.)

12        Section 99.  Effective date.  This Act takes effect  upon
13    becoming law.

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