State of Illinois
92nd General Assembly
Legislation

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92_HB0616

 
                                               LRB9206407NTsb

 1        AN ACT in relation to education.

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

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

 6        (105 ILCS 5/18-8.05)
 7        Sec.  18-8.05.  Basis  for apportionment of general State
 8    financial aid and  supplemental  general  State  aid  to  the
 9    common schools for the 1998-1999 and subsequent school years.

10    (A)  General Provisions.
11        (1)  The   provisions   of  this  Section  apply  to  the
12    1998-1999 school  year  and  subsequent  school  years.   The
13    system  of  general  State financial aid provided for in this
14    Section is designed to assure that, through a combination  of
15    State   financial  aid  and  required  local  resources,  the
16    financial  support  provided  each  pupil  in  Average  Daily
17    Attendance  equals  or  exceeds  a   prescribed   per   pupil
18    Foundation  Level.   This formula approach imputes a level of
19    per pupil Available Local  Resources  and  provides  for  the
20    basis  to  calculate  a  per  pupil  level  of  general State
21    financial aid that, when added to Available Local  Resources,
22    equals  or  exceeds  the Foundation Level.  The amount of per
23    pupil general State financial aid for  school  districts,  in
24    general,  varies  in  inverse  relation  to  Available  Local
25    Resources.   Per  pupil  amounts  are  based upon each school
26    district's Average Daily Attendance as that term  is  defined
27    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
 
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 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
 
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 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,
 
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 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.
 
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 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.
 6        (2)  Days of attendance by pupils of less  than  5  clock
 7    hours  of school shall be subject to the following provisions
 8    in the compilation of Average Daily Attendance.
 9             (a)  Pupils regularly enrolled in  a  public  school
10        for  only  a part of the school day may be counted on the
11        basis of 1/6 day for every class hour of  instruction  of
12        40 minutes or more attended pursuant to such enrollment.
13             (b)  Days  of  attendance  may  be less than 5 clock
14        hours on the opening and closing of the school term,  and
15        upon  the first day of pupil attendance, if preceded by a
16        day  or  days  utilized  as  an  institute  or  teachers'
17        workshop.
18             (c)  A session of 4  or  more  clock  hours  may  be
19        counted  as a day of attendance upon certification by the
20        regional  superintendent,  and  approved  by  the   State
21        Superintendent  of  Education  to  the  extent  that  the
22        district has been forced to use daily multiple sessions.
23             (d)  A  session  of  3  or  more  clock hours may be
24        counted as a day of attendance (1) when the remainder  of
25        the school day or at least 2 hours in the evening of that
26        day  is  utilized  for an in-service training program for
27        teachers, up to a maximum of 5 days per  school  year  of
28        which  a maximum of 4 days of such 5 days may be used for
29        parent-teacher conferences, provided a district  conducts
30        an  in-service  training  program  for teachers which has
31        been approved by the State Superintendent  of  Education;
32        or,  in  lieu of 4 such days, 2 full days may be used, in
33        which event each such day may be  counted  as  a  day  of
34        attendance;  and  (2)  when  days  in  addition  to those
 
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 1        provided in item (1) are scheduled by a  school  pursuant
 2        to  its  school improvement plan adopted under Article 34
 3        or its revised or amended school improvement plan adopted
 4        under Article 2, provided that (i) such sessions of 3  or
 5        more  clock  hours  are  scheduled  to  occur  at regular
 6        intervals, (ii) the remainder of the school days in which
 7        such sessions occur are utilized for in-service  training
 8        programs   or  other  staff  development  activities  for
 9        teachers, and (iii) a sufficient  number  of  minutes  of
10        school  work under the direct supervision of teachers are
11        added to the school days between such regularly scheduled
12        sessions to  accumulate  not  less  than  the  number  of
13        minutes  by  which such sessions of 3 or more clock hours
14        fall short of 5 clock hours. Any full days used  for  the
15        purposes  of  this  paragraph shall not be considered for
16        computing average daily attendance.  Days  scheduled  for
17        in-service    training    programs,   staff   development
18        activities,  or   parent-teacher   conferences   may   be
19        scheduled  separately  for  different  grade  levels  and
20        different attendance centers of the district.
21             (e)  A  session  of  not less than one clock hour of
22        teaching hospitalized or homebound pupils on-site  or  by
23        telephone  to  the classroom may be counted as 1/2 day of
24        attendance, however these pupils must receive 4  or  more
25        clock  hours  of instruction to be counted for a full day
26        of attendance.
27             (f)  A session of at least  4  clock  hours  may  be
28        counted  as  a  day of attendance for first grade pupils,
29        and pupils in full day kindergartens, and a session of  2
30        or  more hours may be counted as 1/2 day of attendance by
31        pupils in kindergartens which provide  only  1/2  day  of
32        attendance.
33             (g)  For  children  with  disabilities who are below
34        the age of 6 years and who cannot attend 2 or more  clock
 
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 1        hours  because  of  their  disability  or  immaturity,  a
 2        session of not less than one clock hour may be counted as
 3        1/2  day  of  attendance; however for such children whose
 4        educational needs so require a session of 4 or more clock
 5        hours may be counted as a full day of attendance.
 6             (h)  A recognized kindergarten  which  provides  for
 7        only  1/2  day of attendance by each pupil shall not have
 8        more than 1/2 day of attendance counted in any  one  day.
 9        However, kindergartens may count 2 1/2 days of attendance
10        in  any  5 consecutive school days.  When a pupil attends
11        such a kindergarten for 2 half days  on  any  one  school
12        day,  the  pupil  shall  have  the following day as a day
13        absent from school, unless the  school  district  obtains
14        permission  in  writing  from the State Superintendent of
15        Education.  Attendance at kindergartens which provide for
16        a full day of attendance by each pupil shall  be  counted
17        the  same  as attendance by first grade pupils.  Only the
18        first year of attendance in  one  kindergarten  shall  be
19        counted,  except  in  case  of  children  who entered the
20        kindergarten  in  their  fifth  year  whose   educational
21        development  requires  a  second  year of kindergarten as
22        determined under the rules and regulations of  the  State
23        Board of Education.

24    (G)  Equalized Assessed Valuation Data.
25        (1)  For  purposes  of the calculation of Available Local
26    Resources required pursuant  to  subsection  (D),  the  State
27    Board  of  Education  shall  secure  from  the  Department of
28    Revenue the value as equalized or assessed by the  Department
29    of  Revenue of all taxable property of every school district,
30    together with (i) the applicable tax rate used  in  extending
31    taxes for the funds of the district as of September 30 of the
32    previous  year  and  (ii)  the  limiting  rate for all school
33    districts subject to property tax  extension  limitations  as
34    imposed under the Property Tax Extension Limitation Law.
 
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 1        This equalized assessed valuation, as adjusted further by
 2    the requirements of this subsection, shall be utilized in the
 3    calculation of Available Local Resources.
 4        (2)  The  equalized  assessed  valuation in paragraph (1)
 5    shall be adjusted, as applicable, in the following manner:
 6             (a)  For the purposes of calculating State aid under
 7        this Section, with  respect  to  any  part  of  a  school
 8        district  within  a redevelopment project area in respect
 9        to  which  a  municipality  has  adopted  tax   increment
10        allocation   financing  pursuant  to  the  Tax  Increment
11        Allocation Redevelopment Act, Sections 11-74.4-1  through
12        11-74.4-11   of   the  Illinois  Municipal  Code  or  the
13        Industrial Jobs Recovery Law, Sections 11-74.6-1  through
14        11-74.6-50 of the Illinois Municipal Code, no part of the
15        current  equalized  assessed  valuation  of real property
16        located in any such project area which is attributable to
17        an increase above the total  initial  equalized  assessed
18        valuation  of  such property shall be used as part of the
19        equalized assessed valuation of the district, until  such
20        time  as  all redevelopment project costs have been paid,
21        as provided in Section 11-74.4-8  of  the  Tax  Increment
22        Allocation  Redevelopment Act or in Section 11-74.6-35 of
23        the Industrial Jobs Recovery Law.  For the purpose of the
24        equalized assessed valuation of the district,  the  total
25        initial  equalized  assessed  valuation  or  the  current
26        equalized  assessed  valuation, whichever is lower, shall
27        be used until such  time  as  all  redevelopment  project
28        costs have been paid.
29             (b)  The  real property equalized assessed valuation
30        for a school district shall be  adjusted  by  subtracting
31        from  the real property value as equalized or assessed by
32        the Department of Revenue  for  the  district  an  amount
33        computed by dividing the amount of any abatement of taxes
34        under  Section  18-170  of the Property Tax Code by 3.00%
 
                            -12-               LRB9206407NTsb
 1        for a district maintaining  grades  kindergarten  through
 2        12,   by   2.30%   for   a  district  maintaining  grades
 3        kindergarten through  8,  or  by  1.05%  for  a  district
 4        maintaining grades 9 through 12 and adjusted by an amount
 5        computed by dividing the amount of any abatement of taxes
 6        under  subsection  (a)  of Section 18-165 of the Property
 7        Tax Code by the same percentage rates for  district  type
 8        as specified in this subparagraph (b).
 9        (3)  For  the  1999-2000 school year and each school year
10    thereafter, if a school district meets all of the criteria of
11    this subsection (G)(3), the school district's Available Local
12    Resources shall be calculated under subsection (D) using  the
13    district's  Extension Limitation Equalized Assessed Valuation
14    as calculated under this subsection (G)(3).
15        For purposes of  this  subsection  (G)(3)  the  following
16    terms shall have the following meanings:
17             "Budget  Year":   The  school year for which general
18        State aid is calculated and awarded under subsection (E).
19             "Base Tax Year": The property tax levy year used  to
20        calculate  the  Budget  Year  allocation of general State
21        aid.
22             "Preceding Tax Year": The  property  tax  levy  year
23        immediately preceding the Base Tax Year.
24             "Base  Tax Year's Tax Extension": The product of the
25        equalized assessed valuation utilized by the County Clerk
26        in the Base Tax Year multiplied by the limiting  rate  as
27        calculated  by  the  County  Clerk  and  defined  in  the
28        Property Tax Extension Limitation Law.
29             "Preceding Tax Year's Tax Extension": The product of
30        the  equalized  assessed valuation utilized by the County
31        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
32        Operating Tax Rate as defined in subsection (A).
33             "Extension Limitation  Ratio":  A  numerical  ratio,
34        certified  by the County Clerk, in which the numerator is
 
                            -13-               LRB9206407NTsb
 1        the Base Tax Year's Tax Extension and the denominator  is
 2        the Preceding Tax Year's Tax Extension.
 3             "Operating  Tax  Rate":  The  operating  tax rate as
 4        defined in subsection (A).
 5        If a school district is subject to property tax extension
 6    limitations as  imposed  under  the  Property  Tax  Extension
 7    Limitation  Law, and if the Available Local Resources of that
 8    school district as  calculated  pursuant  to  subsection  (D)
 9    using  the  Base  Tax  Year are less than the product of 1.75
10    times the Foundation Level for the  Budget  Year,  the  State
11    Board  of  Education shall calculate the Extension Limitation
12    Equalized Assessed  Valuation  of  that  district.   For  the
13    1999-2000  school  year,  the  Extension Limitation Equalized
14    Assessed Valuation of a school district as calculated by  the
15    State Board of Education shall be equal to the product of the
16    district's   1996   Equalized   Assessed  Valuation  and  the
17    district's Extension Limitation  Ratio.   For  the  2000-2001
18    school  year  and  each school year thereafter, the Extension
19    Limitation Equalized Assessed Valuation of a school  district
20    as  calculated by the State Board of Education shall be equal
21    to the product of the last  calculated  Extension  Limitation
22    Equalized  Assessed  Valuation  and  the district's Extension
23    Limitation  Ratio.  If  the  Extension  Limitation  Equalized
24    Assessed Valuation of a school district as  calculated  under
25    this  subsection (G)(3) is less than the district's equalized
26    assessed valuation  as  calculated  pursuant  to  subsections
27    (G)(1)  and  (G)(2),  then  for  purposes  of calculating the
28    district's general State aid for the Budget Year pursuant  to
29    subsection  (E), that Extension Limitation Equalized Assessed
30    Valuation shall  be  utilized  to  calculate  the  district's
31    Available Local Resources under subsection (D).
32        (4)  For  the  purposes  of calculating general State aid
33    for the 1999-2000 school year  only,  if  a  school  district
34    experienced   a   triennial  reassessment  on  the  equalized
 
                            -14-               LRB9206407NTsb
 1    assessed valuation used  in  calculating  its  general  State
 2    financial  aid  apportionment  for the 1998-1999 school year,
 3    the State Board of Education shall  calculate  the  Extension
 4    Limitation  Equalized Assessed Valuation that would have been
 5    used to calculate the district's 1998-1999 general State aid.
 6    This amount shall equal the product of the equalized assessed
 7    valuation  used  to  calculate  general  State  aid  for  the
 8    1997-1998 school year and the district's Extension Limitation
 9    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
10    Valuation  of  the  school  district as calculated under this
11    paragraph (4) is less than the district's equalized  assessed
12    valuation  utilized  in  calculating the district's 1998-1999
13    general  State  aid  allocation,   then   for   purposes   of
14    calculating  the  district's  general  State  aid pursuant to
15    paragraph (5) of subsection (E),  that  Extension  Limitation
16    Equalized  Assessed  Valuation shall be utilized to calculate
17    the district's Available Local Resources.
18        (5)  For school districts  having  a  majority  of  their
19    equalized  assessed  valuation  in  any  county  except Cook,
20    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
21    general  State  aid  allocated to the school district for the
22    1999-2000 school year under the provisions of subsection (E),
23    (H), and (J) of this Section  is  less  than  the  amount  of
24    general State aid allocated to the district for the 1998-1999
25    school  year  under these subsections, then the general State
26    aid of the district for the 1999-2000 school year only  shall
27    be  increased  by  the difference between these amounts.  The
28    total payments made under this paragraph (5) shall not exceed
29    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
30    $14,000,000.

31    (H)  Supplemental General State Aid.
32        (1)  In  addition  to  the  general  State  aid  a school
33    district is allotted pursuant to subsection  (E),  qualifying
34    school  districts  shall receive a grant, paid in conjunction
 
                            -15-               LRB9206407NTsb
 1    with  a  district's  payments  of  general  State  aid,   for
 2    supplemental  general  State aid based upon the concentration
 3    level of  children  from  low-income  households  within  the
 4    school  district.  Supplemental State aid grants provided for
 5    school districts under this subsection shall be  appropriated
 6    for distribution to school districts as part of the same line
 7    item  in  which  the  general  State  financial aid of school
 8    districts is appropriated under this Section. For purposes of
 9    this subsection, the term  "Low-Income  Concentration  Level"
10    shall  be  the  low-income eligible pupil count from the most
11    recently available federal  census  divided  by  the  Average
12    Daily  Attendance  of  the  school district. If, however, the
13    percentage decrease from the 2 most recent  federal  censuses
14    in  the  low-income  eligible  pupil  count  of a high school
15    district with fewer than 400 students exceeds by 75% or  more
16    the  percentage change in the total low-income eligible pupil
17    count  of  contiguous  elementary  school  districts,   whose
18    boundaries are coterminous with the high school district, the
19    high  school  district's low-income eligible pupil count from
20    the earlier federal census shall be the number  used  as  the
21    low-income eligible pupil count for the high school district,
22    for purposes of this subsection (H).
23        (2)  Supplemental  general  State  aid  pursuant  to this
24    subsection shall be provided as follows:
25             (a)  For any  school  district  with  a  Low  Income
26        Concentration  Level  of  at least 20% and less than 35%,
27        the grant for any school year shall be $800 multiplied by
28        the low income eligible pupil count.
29             (b)  For any  school  district  with  a  Low  Income
30        Concentration  Level  of  at least 35% and less than 50%,
31        the grant for the 1998-1999 school year shall  be  $1,100
32        multiplied by the low income eligible pupil count.
33             (c)  For  any  school  district  with  a  Low Income
34        Concentration Level of at least 50% and  less  than  60%,
 
                            -16-               LRB9206407NTsb
 1        the  grant  for  the  1998-99 school year shall be $1,500
 2        multiplied by the low income eligible pupil count.
 3             (d)  For any  school  district  with  a  Low  Income
 4        Concentration  Level  of  60%  or more, the grant for the
 5        1998-99 school year shall be $1,900 multiplied by the low
 6        income eligible pupil count.
 7             (e)  For the 1999-2000 school year,  the  per  pupil
 8        amount  specified  in  subparagraphs  (b),  (c),  and (d)
 9        immediately above shall be increased to  $1,243,  $1,600,
10        and $2,000, respectively.
11             (f)  For  the  2000-2001  school year, the per pupil
12        amounts specified in  subparagraphs  (b),  (c),  and  (d)
13        immediately  above  shall  be $1,273, $1,640, and $2,050,
14        respectively.
15        (3)  School districts with an Average Daily Attendance of
16    more than  1,000  and  less  than  50,000  that  qualify  for
17    supplemental  general  State  aid pursuant to this subsection
18    shall submit a plan to the State Board of Education prior  to
19    October  30  of  each year for the use of the funds resulting
20    from this grant of supplemental general  State  aid  for  the
21    improvement  of  instruction  in  which  priority is given to
22    meeting the education needs of disadvantaged children.   Such
23    plan   shall  be  submitted  in  accordance  with  rules  and
24    regulations promulgated by the State Board of Education.
25        (4)  School districts with an Average Daily Attendance of
26    50,000 or more that qualify for  supplemental  general  State
27    aid   pursuant  to  this  subsection  shall  be  required  to
28    distribute from funds available pursuant to this Section,  no
29    less  than  $261,000,000  in  accordance  with  the following
30    requirements:
31             (a)  The required amounts shall  be  distributed  to
32        the  attendance centers within the district in proportion
33        to the number  of  pupils  enrolled  at  each  attendance
34        center  who are eligible to receive free or reduced-price
 
                            -17-               LRB9206407NTsb
 1        lunches or breakfasts under the federal  Child  Nutrition
 2        Act  of  1966  and  under  the  National School Lunch Act
 3        during the immediately preceding school year.
 4             (b)  The   distribution   of   these   portions   of
 5        supplemental  and  general  State  aid  among  attendance
 6        centers according to  these  requirements  shall  not  be
 7        compensated  for  or  contravened  by  adjustments of the
 8        total of  other  funds  appropriated  to  any  attendance
 9        centers, and the Board of Education shall utilize funding
10        from  one  or several sources in order to fully implement
11        this provision annually prior to the opening of school.
12             (c)  Each attendance center shall be provided by the
13        school district a distribution  of  noncategorical  funds
14        and other categorical funds to which an attendance center
15        is entitled under law in order that the general State aid
16        and   supplemental   general   State   aid   provided  by
17        application of this subsection  supplements  rather  than
18        supplants  the noncategorical funds and other categorical
19        funds provided by the school district to  the  attendance
20        centers.
21             (d)  Any  funds made available under this subsection
22        that by reason of the provisions of this  subsection  are
23        not  required  to be allocated and provided to attendance
24        centers may be used and appropriated by the board of  the
25        district for any lawful school purpose.
26             (e)  Funds received by an attendance center pursuant
27        to this subsection shall be used by the attendance center
28        at  the  discretion  of  the  principal  and local school
29        council for programs to improve educational opportunities
30        at qualifying schools through the following programs  and
31        services:  early  childhood education, reduced class size
32        or improved adult to student classroom ratio,  enrichment
33        programs,  remedial  assistance,  attendance improvement,
34        and other  educationally  beneficial  expenditures  which
 
                            -18-               LRB9206407NTsb
 1        supplement  the  regular and basic programs as determined
 2        by the State Board of Education.   Funds  provided  shall
 3        not be expended for any political or lobbying purposes as
 4        defined by board rule.
 5             (f)  Each district subject to the provisions of this
 6        subdivision  (H)(4)  shall  submit  an acceptable plan to
 7        meet the educational needs of disadvantaged children,  in
 8        compliance  with  the  requirements of this paragraph, to
 9        the State Board of Education prior to  July  15  of  each
10        year. This plan shall be consistent with the decisions of
11        local  school  councils concerning the school expenditure
12        plans developed in accordance  with  part  4  of  Section
13        34-2.3.  The State Board shall approve or reject the plan
14        within  60  days  after  its  submission.  If the plan is
15        rejected, the  district  shall  give  written  notice  of
16        intent   to  modify  the  plan  within  15  days  of  the
17        notification of rejection and then submit a modified plan
18        within 30 days after the date of the  written  notice  of
19        intent  to  modify.    Districts may amend approved plans
20        pursuant to rules  promulgated  by  the  State  Board  of
21        Education.
22             Upon  notification  by  the State Board of Education
23        that the district has not submitted a plan prior to  July
24        15  or  a  modified plan within the time period specified
25        herein, the State aid funds  affected  by  that  plan  or
26        modified  plan  shall  be  withheld by the State Board of
27        Education until a plan or modified plan is submitted.
28             If the district fails to  distribute  State  aid  to
29        attendance  centers  in accordance with an approved plan,
30        the plan for the following year shall allocate funds,  in
31        addition   to   the  funds  otherwise  required  by  this
32        subsection,  to  those  attendance  centers  which   were
33        underfunded  during the previous year in amounts equal to
34        such underfunding.
 
                            -19-               LRB9206407NTsb
 1             For purposes of  determining  compliance  with  this
 2        subsection  in relation to the requirements of attendance
 3        center funding, each district subject to  the  provisions
 4        of this subsection shall submit as a separate document by
 5        December  1 of each year a report of expenditure data for
 6        the prior year in addition to  any  modification  of  its
 7        current  plan.  If it is determined that there has been a
 8        failure to comply with the expenditure provisions of this
 9        subsection regarding contravention  or  supplanting,  the
10        State  Superintendent  of Education shall, within 60 days
11        of receipt of the report, notify  the  district  and  any
12        affected local school council.  The district shall within
13        45  days of receipt of that notification inform the State
14        Superintendent of Education of the remedial or corrective
15        action to be taken, whether  by amendment of the  current
16        plan,  if  feasible, or by adjustment in the plan for the
17        following  year.   Failure  to  provide  the  expenditure
18        report or the  notification  of  remedial  or  corrective
19        action  in  a timely manner shall result in a withholding
20        of the affected funds.
21             The State Board of Education shall promulgate  rules
22        and  regulations  to  implement  the  provisions  of this
23        subsection.   No  funds  shall  be  released  under  this
24        subdivision (H)(4) to any district that has not submitted
25        a plan that has been  approved  by  the  State  Board  of
26        Education.

27    (I)  General State Aid for Newly Configured School Districts.
28        (1)  For  a  new  school  district  formed  by  combining
29    property   included  totally  within  2  or  more  previously
30    existing school districts, for its first  year  of  existence
31    the  general  State  aid  and  supplemental general State aid
32    calculated under this Section shall be computed for  the  new
33    district  and for the previously existing districts for which
34    property is totally included within the new district.  If the
 
                            -20-               LRB9206407NTsb
 1    computation on the basis of the previously existing districts
 2    is greater, a supplementary payment equal to  the  difference
 3    shall  be  made for the first 4 years of existence of the new
 4    district.
 5        (2)  For a school  district  which  annexes  all  of  the
 6    territory  of  one or more entire other school districts, for
 7    the  first  year  during  which  the  change  of   boundaries
 8    attributable  to  such  annexation  becomes effective for all
 9    purposes as determined under Section 7-9 or 7A-8, the general
10    State aid and supplemental general State aid calculated under
11    this Section shall be computed for the annexing  district  as
12    constituted  after  the  annexation  and for the annexing and
13    each annexed district as constituted prior to the annexation;
14    and if the computation on  the  basis  of  the  annexing  and
15    annexed  districts  as constituted prior to the annexation is
16    greater, a supplementary  payment  equal  to  the  difference
17    shall  be  made  for  the  first  4 years of existence of the
18    annexing school district as constituted upon such annexation.
19        (3)  For 2 or more school districts which  annex  all  of
20    the  territory  of one or more entire other school districts,
21    and for 2 or more community unit districts which result  upon
22    the  division  (pursuant  to petition under Section 11A-2) of
23    one or more other unit school districts into 2 or more  parts
24    and  which  together include all of the parts into which such
25    other unit school district or districts are so  divided,  for
26    the   first  year  during  which  the  change  of  boundaries
27    attributable to such annexation or division becomes effective
28    for all purposes as determined under Section 7-9  or  11A-10,
29    as  the  case  may be, the general State aid and supplemental
30    general State aid calculated  under  this  Section  shall  be
31    computed   for   each   annexing  or  resulting  district  as
32    constituted after the annexation or  division  and  for  each
33    annexing  and  annexed  district,  or  for each resulting and
34    divided district, as constituted prior to the  annexation  or
 
                            -21-               LRB9206407NTsb
 1    division;  and  if the aggregate of the general State aid and
 2    supplemental  general  State  aid  as  so  computed  for  the
 3    annexing or resulting  districts  as  constituted  after  the
 4    annexation  or  division  is  less  than the aggregate of the
 5    general State aid and supplemental general State  aid  as  so
 6    computed  for  the annexing and annexed districts, or for the
 7    resulting and divided districts, as constituted prior to  the
 8    annexation or division, then a supplementary payment equal to
 9    the  difference  shall be made and allocated between or among
10    the annexing or resulting districts, as constituted upon such
11    annexation or division,  for  the  first  4  years  of  their
12    existence.   The  total difference payment shall be allocated
13    between or among the annexing or resulting districts  in  the
14    same  ratio  as the pupil enrollment from that portion of the
15    annexed or divided district or districts which is annexed  to
16    or included in each such annexing or resulting district bears
17    to  the  total  pupil  enrollment  from the entire annexed or
18    divided district or districts, as such  pupil  enrollment  is
19    determined  for the school year last ending prior to the date
20    when the change of boundaries attributable to the  annexation
21    or  division  becomes effective for all purposes.  The amount
22    of the total difference payment and the amount thereof to  be
23    allocated  to  the  annexing  or resulting districts shall be
24    computed by the State Board of  Education  on  the  basis  of
25    pupil  enrollment  and other data which shall be certified to
26    the State Board of Education, on forms which it shall provide
27    for that purpose, by the regional superintendent  of  schools
28    for each educational service region in which the annexing and
29    annexed  districts,  or  resulting  and divided districts are
30    located.
31        (3.5)  Claims  for  financial   assistance   under   this
32    subsection  (I)  shall  not be recomputed except as expressly
33    provided under this Section.
34        (4)  Any supplementary payment made under this subsection
 
                            -22-               LRB9206407NTsb
 1    (I) shall be treated as separate from all other payments made
 2    pursuant to this Section.

 3    (J)  Supplementary Grants in Aid.
 4        (1)  Notwithstanding  any  other   provisions   of   this
 5    Section,  the  amount  of  the aggregate general State aid in
 6    combination with supplemental general State  aid  under  this
 7    Section  for  which each school district is eligible shall be
 8    no less than the amount of the aggregate  general  State  aid
 9    entitlement  that  was received by the district under Section
10    18-8 (exclusive of amounts received  under  subsections  5(p)
11    and  5(p-5)  of  that  Section)  for the 1997-98 school year,
12    pursuant to the provisions of that Section as it was then  in
13    effect.   If   a  school  district  qualifies  to  receive  a
14    supplementary payment made under  this  subsection  (J),  the
15    amount of the aggregate general State aid in combination with
16    supplemental general State aid under this Section  which that
17    district is eligible to receive for each school year shall be
18    no  less  than  the amount of the aggregate general State aid
19    entitlement that was received by the district  under  Section
20    18-8  (exclusive  of  amounts received under subsections 5(p)
21    and 5(p-5) of that Section) for the  1997-1998  school  year,
22    pursuant  to the provisions of that Section as it was then in
23    effect.
24        (2)  If, as provided in paragraph (1) of this  subsection
25    (J),  a school district is to receive aggregate general State
26    aid in combination with supplemental general State aid  under
27    this  Section  for the 1998-99 school year and any subsequent
28    school year that in any such school year  is  less  than  the
29    amount  of  the  aggregate general State aid entitlement that
30    the district received for the 1997-98 school year, the school
31    district shall also receive, from  a  separate  appropriation
32    made  for  purposes  of  this subsection (J), a supplementary
33    payment that is equal to the amount of the difference in  the
34    aggregate State aid figures as described in paragraph (1).
 
                            -23-               LRB9206407NTsb
 1        (3)  (Blank).

 2    (K)  Grants to Laboratory and Alternative Schools.
 3        In  calculating  the  amount  to be paid to the governing
 4    board of a  public  university  that  operates  a  laboratory
 5    school  under  this Section or to any alternative school that
 6    is operated by a  regional  superintendent  of  schools,  the
 7    State Board of Education shall require by rule such reporting
 8    requirements as it deems necessary.
 9        As  used  in  this  Section,  "laboratory school" means a
10    public school which is  created  and  operated  by  a  public
11    university and approved by the State Board of Education.  The
12    governing  board  of a public university which receives funds
13    from the State  Board  under  this  subsection  (K)  may  not
14    increase  the  number  of students enrolled in its laboratory
15    school from a single district, if that  district  is  already
16    sending  50 or more students, except under a mutual agreement
17    between the school board of a student's district of residence
18    and the university which operates the laboratory  school.   A
19    laboratory  school  may  not  have  more than 1,000 students,
20    excluding students with disabilities in a  special  education
21    program.
22        As  used  in  this  Section, "alternative school" means a
23    public school which is created and  operated  by  a  Regional
24    Superintendent  of Schools and approved by the State Board of
25    Education.  Such alternative schools  may  offer  courses  of
26    instruction  for  which  credit  is  given  in regular school
27    programs, courses to prepare students  for  the  high  school
28    equivalency  testing  program  or vocational and occupational
29    training.   A regional superintendent of schools may contract
30    with a school district or a public community college district
31    to operate an  alternative  school.   An  alternative  school
32    serving  more  than  one  educational  service  region may be
33    established by the regional superintendents of schools of the
34    affected educational service regions.  An alternative  school
 
                            -24-               LRB9206407NTsb
 1    serving  more  than  one  educational  service  region may be
 2    operated under such terms as the regional superintendents  of
 3    schools of those educational service regions may agree.
 4        Each  laboratory  and  alternative  school shall file, on
 5    forms provided by the State Superintendent of  Education,  an
 6    annual  State  aid  claim  which  states  the  Average  Daily
 7    Attendance  of  the  school's  students by month.  The best 3
 8    months' Average Daily Attendance shall be computed  for  each
 9    school.  The  general State aid entitlement shall be computed
10    by multiplying the applicable Average Daily Attendance by the
11    Foundation Level as determined under this Section.

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

30    (M)  Education Funding Advisory Board.
31        The Education Funding Advisory Board, hereinafter in this
32    subsection (M) referred to as the "Board", is hereby created.
33    The Board shall consist of 5 members who are appointed by the
 
                            -25-               LRB9206407NTsb
 1    Governor, by and with the advice and consent of  the  Senate.
 2    The   members  appointed  shall  include  representatives  of
 3    education, business, and  the  general  public.  One  of  the
 4    members  so  appointed shall be designated by the Governor at
 5    the time the appointment is made as the  chairperson  of  the
 6    Board.  The initial members of the Board may be appointed any
 7    time after the effective date of this amendatory Act of 1997.
 8    The regular term of each member of the Board shall be  for  4
 9    years  from  the third Monday of January of the year in which
10    the term of the member's appointment is to  commence,  except
11    that  of  the  5  initial  members  appointed to serve on the
12    Board, the member who is appointed as the  chairperson  shall
13    serve  for  a  term  that commences on the date of his or her
14    appointment and expires on the third Monday of January, 2002,
15    and the remaining 4 members,  by  lots  drawn  at  the  first
16    meeting  of  the  Board  that is held after all 5 members are
17    appointed, shall determine 2 of their  number  to  serve  for
18    terms   that   commence  on  the  date  of  their  respective
19    appointments and expire on the third Monday of January, 2001,
20    and 2 of their number to serve for terms that commence on the
21    date of their respective appointments and expire on the third
22    Monday of January, 2000.  All members appointed to  serve  on
23    the  Board  shall serve until their respective successors are
24    appointed and confirmed.  Vacancies shall be  filled  in  the
25    same  manner  as  original  appointments.   If  a  vacancy in
26    membership occurs at  a  time  when  the  Senate  is  not  in
27    session,  the  Governor  shall  make  a temporary appointment
28    until the next meeting of the Senate, when he  or  she  shall
29    appoint,  by and with the advice and consent of the Senate, a
30    person to fill that membership for the  unexpired  term.   If
31    the  Senate  is  not in session when the initial appointments
32    are made, those appointments shall be made as in the case  of
33    vacancies.
34        The  Education  Funding  Advisory  Board  shall be deemed
 
                            -26-               LRB9206407NTsb
 1    established,  and  the  initial  members  appointed  by   the
 2    Governor  to serve as members of the Board shall take office,
 3    on the date that the Governor makes his or her appointment of
 4    the fifth initial member of the Board, whether those  initial
 5    members   are   then  serving  pursuant  to  appointment  and
 6    confirmation or pursuant to temporary appointments  that  are
 7    made by the Governor as in the case of vacancies.
 8        The  State  Board  of  Education shall provide such staff
 9    assistance to the Education  Funding  Advisory  Board  as  is
10    reasonably  required  for the proper performance by the Board
11    of its responsibilities.
12        For school years after the  2000-2001  school  year,  the
13    Education  Funding  Advisory  Board, in consultation with the
14    State Board  of  Education,  shall  make  recommendations  as
15    provided  in  this subsection (M) to the General Assembly for
16    the foundation level under subdivision (B)(3) of this Section
17    and for the supplemental general State aid grant level  under
18    subsection  (H)  of  this  Section  for  districts  with high
19    concentrations of children  from  poverty.   The  recommended
20    foundation  level  shall be determined based on a methodology
21    which  incorporates  the  basic  education  expenditures   of
22    low-spending  schools  exhibiting  high academic performance.
23    The  Education  Funding  Advisory  Board  shall   make   such
24    recommendations  to  the General Assembly on January 1 of odd
25    numbered years, beginning January 1, 2001.

26    (N)  (Blank).

27    (O)  References.
28        (1)  References in other laws to the various subdivisions
29    of Section 18-8 as that Section existed before its repeal and
30    replacement by this Section 18-8.05 shall be deemed to  refer
31    to  the  corresponding provisions of this Section 18-8.05, to
32    the extent that those references remain applicable.
33        (2)  References in other laws to State  Chapter  1  funds
 
                            -27-               LRB9206407NTsb
 1    shall  be  deemed  to refer to the supplemental general State
 2    aid provided under subsection (H) of this Section.
 3    (Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
 4    90-653, eff. 7-29-98;  90-654,  eff.  7-29-98;  90-655,  eff.
 5    7-30-98;  90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24,
 6    eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99;  91-111,
 7    eff.  7-14-99;  91-357,  eff.  7-29-99; 91-533, eff. 8-13-99;
 8    revised 8-27-99.)

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