State of Illinois
92nd General Assembly
Legislation

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92_HB1845ham001

 










                                             LRB9205352NTsbam

 1                    AMENDMENT TO HOUSE BILL 1845

 2        AMENDMENT NO.     .  Amend House Bill 1845  by  replacing
 3    everything after the enacting clause with the following:

 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 and subsequent school years.  The system of general
13    State  financial aid provided for in this Section is designed
14    to assure that, through a combination of State financial  aid
15    and  required local resources, the financial support provided
16    each pupil in Average Daily Attendance equals  or  exceeds  a
17    prescribed per pupil Foundation Level.  This formula approach
18    imputes  a  level  of per pupil Available Local Resources and
19    provides for the basis to calculate  a  per  pupil  level  of
20    general  State  financial  aid  that, when added to Available
21    Local Resources, equals or exceeds the Foundation Level.  The
 
                            -2-              LRB9205352NTsbam
 1    amount of per pupil general State financial  aid  for  school
 2    districts,   in   general,  varies  in  inverse  relation  to
 3    Available Local Resources.  Per pupil amounts are based  upon
 4    each  school district's Average Daily Attendance as that term
 5    is defined in this Section.
 6        (2)  In addition to general State financial  aid,  school
 7    districts  with  specified levels or concentrations of pupils
 8    from  low  income  households   are   eligible   to   receive
 9    supplemental  general  State financial aid grants as provided
10    pursuant to subsection (H). The supplemental State aid grants
11    provided for school districts under subsection (H)  shall  be
12    appropriated  for distribution to school districts as part of
13    the same line item in which the general State  financial  aid
14    of school districts is appropriated under this Section.
15        (3)  To  receive financial assistance under this Section,
16    school districts are required to file claims with  the  State
17    Board of Education, subject to the following requirements:
18             (a)  Any  school  district which fails for any given
19        school year to maintain school as required by law, or  to
20        maintain  a recognized school is not eligible to file for
21        such school year any claim upon the Common  School  Fund.
22        In  case  of  nonrecognition  of  one  or more attendance
23        centers  in  a  school   district   otherwise   operating
24        recognized  schools,  the  claim of the district shall be
25        reduced  in  the  proportion  which  the  Average   Daily
26        Attendance  in  the  attendance center or centers bear to
27        the Average Daily Attendance in the school  district.   A
28        "recognized  school"  means any public school which meets
29        the standards as established for recognition by the State
30        Board of Education.   A  school  district  or  attendance
31        center  not  having  recognition  status  at the end of a
32        school term is entitled to receive State aid payments due
33        upon  a  legal  claim  which  was  filed  while  it   was
34        recognized.
 
                            -3-              LRB9205352NTsbam
 1             (b)  School district claims filed under this Section
 2        are subject to Sections 18-9, 18-10, and 18-12, except as
 3        otherwise provided in this Section.
 4             (c)  If  a  school  district  operates  a  full year
 5        school under Section 10-19.1, the general  State  aid  to
 6        the  school  district  shall  be  determined by the State
 7        Board of Education in accordance  with  this  Section  as
 8        near as may be applicable.
 9             (d) (Blank).
10        (4)  Except  as  provided in subsections (H) and (L), the
11    board of any district receiving any of  the  grants  provided
12    for  in  this  Section  may  apply those funds to any fund so
13    received  for  which  that  board  is  authorized   to   make
14    expenditures by law.
15        School  districts  are  not  required  to exert a minimum
16    Operating Tax Rate in order to qualify for  assistance  under
17    this Section.
18        (5)  As  used  in  this Section the following terms, when
19    capitalized, shall have the meaning ascribed herein:
20             (a)  "Average Daily Attendance":  A count  of  pupil
21        attendance   in  school,  averaged  as  provided  for  in
22        subsection  (C)  and  utilized  in  deriving  per   pupil
23        financial support levels.
24             (b)  "Available  Local Resources":  A computation of
25        local financial  support,  calculated  on  the  basis  of
26        Average Daily Attendance and derived as provided pursuant
27        to subsection (D).
28             (c)  "Corporate    Personal   Property   Replacement
29        Taxes":  Funds paid to local school districts pursuant to
30        "An Act in  relation  to  the  abolition  of  ad  valorem
31        personal  property  tax  and  the replacement of revenues
32        lost thereby, and amending and repealing certain Acts and
33        parts of Acts in connection therewith", certified  August
34        14, 1979, as amended (Public Act 81-1st S.S.-1).
 
                            -4-              LRB9205352NTsbam
 1             (d)  "Foundation  Level":  A prescribed level of per
 2        pupil financial support as  provided  for  in  subsection
 3        (B).
 4             (e)  "Operating  Tax  Rate":   All  school  district
 5        property taxes extended for all purposes, except Bond and
 6        Interest,  Summer  School, Rent, Capital Improvement, and
 7        Vocational Education Building purposes.

 8    (B)  Foundation Level.
 9        (1)  The Foundation Level is a figure established by  the
10    State  representing  the minimum level of per pupil financial
11    support that should be available to  provide  for  the  basic
12    education  of each pupil in Average Daily Attendance.  As set
13    forth in this Section, each school  district  is  assumed  to
14    exert   a  sufficient  local  taxing  effort  such  that,  in
15    combination with the aggregate of general State financial aid
16    provided the  district,  an  aggregate  of  State  and  local
17    resources  are available to meet the basic education needs of
18    pupils in the district.
19        (2)  For the 1998-1999 school year, the Foundation  Level
20    of  support  is  $4,225.   For the 1999-2000 school year, the
21    Foundation Level of support is  $4,325.   For  the  2000-2001
22    school year, the Foundation Level of support is $4,425.
23        (3)  For  the  2001-2002 school year and each school year
24    thereafter, the Foundation Level of support is $4,600  $4,425
25    or  such  greater  amount as may be established by law by the
26    General Assembly.

27    (C)  Average Daily Attendance.
28        (1)  For  purposes  of  calculating  general  State   aid
29    pursuant  to  subsection  (E),  an  Average  Daily Attendance
30    figure shall  be  utilized.   The  Average  Daily  Attendance
31    figure  for formula calculation purposes shall be the monthly
32    average of the actual number of pupils in attendance of  each
33    school district, as further averaged for the best 3 months of
 
                            -5-              LRB9205352NTsbam
 1    pupil  attendance for each school district.  In compiling the
 2    figures for  the  number  of  pupils  in  attendance,  school
 3    districts  and  the  State  Board  of  Education  shall,  for
 4    purposes  of  general  State  aid funding, conform attendance
 5    figures to the requirements of subsection (F).
 6        (2)  The Average Daily  Attendance  figures  utilized  in
 7    subsection (E) shall be the requisite attendance data for the
 8    school  year  immediately preceding the school year for which
 9    general State aid is being calculated.

10    (D)  Available Local Resources.
11        (1)  For  purposes  of  calculating  general  State   aid
12    pursuant  to  subsection  (E),  a representation of Available
13    Local Resources per  pupil,  as  that  term  is  defined  and
14    determined  in this subsection, shall be utilized.  Available
15    Local Resources per pupil shall include a  calculated  dollar
16    amount representing local school district revenues from local
17    property   taxes   and   from   Corporate  Personal  Property
18    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
19    Average Daily Attendance.
20        (2)  In  determining  a  school  district's  revenue from
21    local property taxes, the  State  Board  of  Education  shall
22    utilize  the  equalized  assessed  valuation  of  all taxable
23    property of each school district as of September  30  of  the
24    previous  year.   The  equalized  assessed valuation utilized
25    shall be obtained and determined as  provided  in  subsection
26    (G).
27        (3)  For school districts maintaining grades kindergarten
28    through  12,  local  property tax revenues per pupil shall be
29    calculated  as  the  product  of  the  applicable   equalized
30    assessed  valuation for the district multiplied by 3.00%, and
31    divided by the district's Average  Daily  Attendance  figure.
32    For  school districts maintaining grades kindergarten through
33    8, local property tax revenues per pupil shall be  calculated
34    as the product of the applicable equalized assessed valuation
 
                            -6-              LRB9205352NTsbam
 1    for  the  district  multiplied  by  2.30%, and divided by the
 2    district's  Average  Daily  Attendance  figure.   For  school
 3    districts maintaining grades 9 through 12, local property tax
 4    revenues per pupil shall be the applicable equalized assessed
 5    valuation of the district multiplied by 1.05%, and divided by
 6    the district's Average Daily Attendance figure.
 7        (4)  The Corporate Personal  Property  Replacement  Taxes
 8    paid to each school district during the calendar year 2 years
 9    before  the  calendar  year  in  which  a school year begins,
10    divided by the  Average  Daily  Attendance  figure  for  that
11    district,  shall  be added to the local property tax revenues
12    per pupil as derived by the application  of  the  immediately
13    preceding  paragraph (3).  The sum of these per pupil figures
14    for each school district  shall  constitute  Available  Local
15    Resources  as  that term is utilized in subsection (E) in the
16    calculation of general State aid.

17    (E)  Computation of General State Aid.
18        (1)  For each school year, the amount  of  general  State
19    aid  allotted  to  a school district shall be computed by the
20    State Board of Education as provided in this subsection.
21        (2)  For any school district for  which  Available  Local
22    Resources  per  pupil  is less than the product of 0.93 times
23    the Foundation Level, general State  aid  for  that  district
24    shall  be  calculated  as  an  amount equal to the Foundation
25    Level minus Available  Local  Resources,  multiplied  by  the
26    Average Daily Attendance of the school district.
27        (3)  For  any  school  district for which Available Local
28    Resources per pupil is equal to or greater than  the  product
29    of  0.93 times the Foundation Level and less than the product
30    of 1.75 times the Foundation Level, the general State aid per
31    pupil shall be a decimal proportion of the  Foundation  Level
32    derived   using   a  linear  algorithm.   Under  this  linear
33    algorithm, the calculated general State aid per  pupil  shall
34    decline   in  direct  linear  fashion  from  0.07  times  the
 
                            -7-              LRB9205352NTsbam
 1    Foundation Level for a school district with  Available  Local
 2    Resources  equal  to the product of 0.93 times the Foundation
 3    Level, to 0.05  times  the  Foundation  Level  for  a  school
 4    district  with Available Local Resources equal to the product
 5    of 1.75  times  the  Foundation  Level.   The  allocation  of
 6    general  State  aid  for  school  districts  subject  to this
 7    paragraph 3 shall be the calculated  general  State  aid  per
 8    pupil  figure  multiplied  by the Average Daily Attendance of
 9    the school district.
10        (4)  For any school district for  which  Available  Local
11    Resources  per  pupil  equals  or exceeds the product of 1.75
12    times the Foundation Level, the general  State  aid  for  the
13    school  district  shall  be calculated as the product of $218
14    multiplied by the Average  Daily  Attendance  of  the  school
15    district.
16        (5)  The  amount  of  general  State  aid  allocated to a
17    school district for the 1999-2000  school  year  meeting  the
18    requirements  set  forth  in  paragraph (4) of subsection (G)
19    shall be increased by an amount equal to  the  general  State
20    aid  that  would  have  been received by the district for the
21    1998-1999 school year by utilizing the  Extension  Limitation
22    Equalized  Assessed  Valuation as calculated in paragraph (4)
23    of subsection (G) less the general State aid allotted for the
24    1998-1999 school year.  This amount shall  be  deemed  a  one
25    time  increase, and shall not affect any future general State
26    aid allocations.

27    (F)  Compilation of Average Daily Attendance.
28        (1)  Each school district shall, by July 1 of each  year,
29    submit  to  the State Board of Education, on forms prescribed
30    by the State Board of Education, attendance figures  for  the
31    school  year  that began in the preceding calendar year.  The
32    attendance information  so  transmitted  shall  identify  the
33    average daily attendance figures for each month of the school
34    year,  except  that any days of attendance in August shall be
 
                            -8-              LRB9205352NTsbam
 1    added to the month of September and any days of attendance in
 2    June shall be added to the month of May.
 3        Except as otherwise provided in  this  Section,  days  of
 4    attendance  by  pupils  shall be counted only for sessions of
 5    not less than 5 clock hours of  school  work  per  day  under
 6    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
 7    personnel   or   volunteer   personnel   when   engaging   in
 8    non-teaching  duties  and  supervising  in  those   instances
 9    specified in subsection (a) of Section 10-22.34 and paragraph
10    10  of  Section 34-18, with pupils of legal school age and in
11    kindergarten and grades 1 through 12.
12        Days of attendance by tuition pupils shall be  accredited
13    only  to  the  districts that pay the tuition to a recognized
14    school.
15        (2)  Days of attendance by pupils of less  than  5  clock
16    hours  of school shall be subject to the following provisions
17    in the compilation of Average Daily Attendance.
18             (a)  Pupils regularly enrolled in  a  public  school
19        for  only  a part of the school day may be counted on the
20        basis of 1/6 day for every class hour of  instruction  of
21        40 minutes or more attended pursuant to such enrollment.
22             (b)  Days  of  attendance  may  be less than 5 clock
23        hours on the opening and closing of the school term,  and
24        upon  the first day of pupil attendance, if preceded by a
25        day  or  days  utilized  as  an  institute  or  teachers'
26        workshop.
27             (c)  A session of 4  or  more  clock  hours  may  be
28        counted  as a day of attendance upon certification by the
29        regional  superintendent,  and  approved  by  the   State
30        Superintendent  of  Education  to  the  extent  that  the
31        district has been forced to use daily multiple sessions.
32             (d)  A  session  of  3  or  more  clock hours may be
33        counted as a day of attendance (1) when the remainder  of
34        the school day or at least 2 hours in the evening of that
 
                            -9-              LRB9205352NTsbam
 1        day  is  utilized  for an in-service training program for
 2        teachers, up to a maximum of 5 days per  school  year  of
 3        which  a maximum of 4 days of such 5 days may be used for
 4        parent-teacher conferences, provided a district  conducts
 5        an  in-service  training  program  for teachers which has
 6        been approved by the State Superintendent  of  Education;
 7        or,  in  lieu of 4 such days, 2 full days may be used, in
 8        which event each such day may be  counted  as  a  day  of
 9        attendance;  and  (2)  when  days  in  addition  to those
10        provided in item (1) are scheduled by a  school  pursuant
11        to  its  school improvement plan adopted under Article 34
12        or its revised or amended school improvement plan adopted
13        under Article 2, provided that (i) such sessions of 3  or
14        more  clock  hours  are  scheduled  to  occur  at regular
15        intervals, (ii) the remainder of the school days in which
16        such sessions occur are utilized for in-service  training
17        programs   or  other  staff  development  activities  for
18        teachers, and (iii) a sufficient  number  of  minutes  of
19        school  work under the direct supervision of teachers are
20        added to the school days between such regularly scheduled
21        sessions to  accumulate  not  less  than  the  number  of
22        minutes  by  which such sessions of 3 or more clock hours
23        fall short of 5 clock hours. Any full days used  for  the
24        purposes  of  this  paragraph shall not be considered for
25        computing average daily attendance.  Days  scheduled  for
26        in-service    training    programs,   staff   development
27        activities,  or   parent-teacher   conferences   may   be
28        scheduled  separately  for  different  grade  levels  and
29        different attendance centers of the district.
30             (e)  A  session  of  not less than one clock hour of
31        teaching hospitalized or homebound pupils on-site  or  by
32        telephone  to  the classroom may be counted as 1/2 day of
33        attendance, however these pupils must receive 4  or  more
34        clock  hours  of instruction to be counted for a full day
 
                            -10-             LRB9205352NTsbam
 1        of attendance.
 2             (f)  A session of at least  4  clock  hours  may  be
 3        counted  as  a  day of attendance for first grade pupils,
 4        and pupils in full day kindergartens, and a session of  2
 5        or  more hours may be counted as 1/2 day of attendance by
 6        pupils in kindergartens which provide  only  1/2  day  of
 7        attendance.
 8             (g)  For  children  with  disabilities who are below
 9        the age of 6 years and who cannot attend 2 or more  clock
10        hours  because  of  their  disability  or  immaturity,  a
11        session of not less than one clock hour may be counted as
12        1/2  day  of  attendance; however for such children whose
13        educational needs so require a session of 4 or more clock
14        hours may be counted as a full day of attendance.
15             (h)  A recognized kindergarten  which  provides  for
16        only  1/2  day of attendance by each pupil shall not have
17        more than 1/2 day of attendance counted in any  one  day.
18        However, kindergartens may count 2 1/2 days of attendance
19        in  any  5 consecutive school days.  When a pupil attends
20        such a kindergarten for 2 half days  on  any  one  school
21        day,  the  pupil  shall  have  the following day as a day
22        absent from school, unless the  school  district  obtains
23        permission  in  writing  from the State Superintendent of
24        Education.  Attendance at kindergartens which provide for
25        a full day of attendance by each pupil shall  be  counted
26        the  same  as attendance by first grade pupils.  Only the
27        first year of attendance in  one  kindergarten  shall  be
28        counted,  except  in  case  of  children  who entered the
29        kindergarten  in  their  fifth  year  whose   educational
30        development  requires  a  second  year of kindergarten as
31        determined under the rules and regulations of  the  State
32        Board of Education.

33    (G)  Equalized Assessed Valuation Data.
34        (1)  For  purposes  of the calculation of Available Local
 
                            -11-             LRB9205352NTsbam
 1    Resources required pursuant  to  subsection  (D),  the  State
 2    Board  of  Education  shall  secure  from  the  Department of
 3    Revenue the value as equalized or assessed by the  Department
 4    of  Revenue of all taxable property of every school district,
 5    together with (i) the applicable tax rate used  in  extending
 6    taxes for the funds of the district as of September 30 of the
 7    previous  year  and  (ii)  the  limiting  rate for all school
 8    districts subject to property tax  extension  limitations  as
 9    imposed under the Property Tax Extension Limitation Law.
10        This equalized assessed valuation, as adjusted further by
11    the requirements of this subsection, shall be utilized in the
12    calculation of Available Local Resources.
13        (2)  The  equalized  assessed  valuation in paragraph (1)
14    shall be adjusted, as applicable, in the following manner:
15             (a)  For the purposes of calculating State aid under
16        this Section, with  respect  to  any  part  of  a  school
17        district  within  a redevelopment project area in respect
18        to  which  a  municipality  has  adopted  tax   increment
19        allocation   financing  pursuant  to  the  Tax  Increment
20        Allocation Redevelopment Act, Sections 11-74.4-1  through
21        11-74.4-11   of   the  Illinois  Municipal  Code  or  the
22        Industrial Jobs Recovery Law, Sections 11-74.6-1  through
23        11-74.6-50 of the Illinois Municipal Code, no part of the
24        current  equalized  assessed  valuation  of real property
25        located in any such project area which is attributable to
26        an increase above the total  initial  equalized  assessed
27        valuation  of  such property shall be used as part of the
28        equalized assessed valuation of the district, until  such
29        time  as  all redevelopment project costs have been paid,
30        as provided in Section 11-74.4-8  of  the  Tax  Increment
31        Allocation  Redevelopment Act or in Section 11-74.6-35 of
32        the Industrial Jobs Recovery Law.  For the purpose of the
33        equalized assessed valuation of the district,  the  total
34        initial  equalized  assessed  valuation  or  the  current
 
                            -12-             LRB9205352NTsbam
 1        equalized  assessed  valuation, whichever is lower, shall
 2        be used until such  time  as  all  redevelopment  project
 3        costs have been paid.
 4             (b)  The  real property equalized assessed valuation
 5        for a school district shall be  adjusted  by  subtracting
 6        from  the real property value as equalized or assessed by
 7        the Department of Revenue  for  the  district  an  amount
 8        computed by dividing the amount of any abatement of taxes
 9        under  Section  18-170  of the Property Tax Code by 3.00%
10        for a district maintaining  grades  kindergarten  through
11        12,   by   2.30%   for   a  district  maintaining  grades
12        kindergarten through  8,  or  by  1.05%  for  a  district
13        maintaining grades 9 through 12 and adjusted by an amount
14        computed by dividing the amount of any abatement of taxes
15        under  subsection  (a)  of Section 18-165 of the Property
16        Tax Code by the same percentage rates for  district  type
17        as specified in this subparagraph (b).
18        (3)  For  the  1999-2000 school year and each school year
19    thereafter, if a school district meets all of the criteria of
20    this subsection (G)(3), the school district's Available Local
21    Resources shall be calculated under subsection (D) using  the
22    district's  Extension Limitation Equalized Assessed Valuation
23    as calculated under this subsection (G)(3).
24        For purposes of  this  subsection  (G)(3)  the  following
25    terms shall have the following meanings:
26             "Budget  Year":   The  school year for which general
27        State aid is calculated and awarded under subsection (E).
28             "Base Tax Year": The property tax levy year used  to
29        calculate  the  Budget  Year  allocation of general State
30        aid.
31             "Preceding Tax Year": The  property  tax  levy  year
32        immediately preceding the Base Tax Year.
33             "Base  Tax Year's Tax Extension": The product of the
34        equalized assessed valuation utilized by the County Clerk
 
                            -13-             LRB9205352NTsbam
 1        in the Base Tax Year multiplied by the limiting  rate  as
 2        calculated  by  the  County  Clerk  and  defined  in  the
 3        Property Tax Extension Limitation Law.
 4             "Preceding Tax Year's Tax Extension": The product of
 5        the  equalized  assessed valuation utilized by the County
 6        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
 7        Operating Tax Rate as defined in subsection (A).
 8             "Extension Limitation  Ratio":  A  numerical  ratio,
 9        certified  by the County Clerk, in which the numerator is
10        the Base Tax Year's Tax Extension and the denominator  is
11        the Preceding Tax Year's Tax Extension.
12             "Operating  Tax  Rate":  The  operating  tax rate as
13        defined in subsection (A).
14        If a school district is subject to property tax extension
15    limitations as  imposed  under  the  Property  Tax  Extension
16    Limitation  Law, and if the Available Local Resources of that
17    school district as  calculated  pursuant  to  subsection  (D)
18    using  the  Base  Tax  Year are less than the product of 1.75
19    times the Foundation Level for the  Budget  Year,  the  State
20    Board  of  Education shall calculate the Extension Limitation
21    Equalized Assessed  Valuation  of  that  district.   For  the
22    1999-2000  school  year,  the  Extension Limitation Equalized
23    Assessed Valuation of a school district as calculated by  the
24    State Board of Education shall be equal to the product of the
25    district's   1996   Equalized   Assessed  Valuation  and  the
26    district's Extension Limitation  Ratio.   For  the  2000-2001
27    school  year  and  each school year thereafter, the Extension
28    Limitation Equalized Assessed Valuation of a school  district
29    as  calculated by the State Board of Education shall be equal
30    to the product of the last  calculated  Extension  Limitation
31    Equalized  Assessed  Valuation  and  the district's Extension
32    Limitation  Ratio.  If  the  Extension  Limitation  Equalized
33    Assessed Valuation of a school district as  calculated  under
34    this  subsection (G)(3) is less than the district's equalized
 
                            -14-             LRB9205352NTsbam
 1    assessed valuation  as  calculated  pursuant  to  subsections
 2    (G)(1)  and  (G)(2),  then  for  purposes  of calculating the
 3    district's general State aid for the Budget Year pursuant  to
 4    subsection  (E), that Extension Limitation Equalized Assessed
 5    Valuation shall  be  utilized  to  calculate  the  district's
 6    Available Local Resources under subsection (D).
 7        (4)  For  the  purposes  of calculating general State aid
 8    for the 1999-2000 school year  only,  if  a  school  district
 9    experienced   a   triennial  reassessment  on  the  equalized
10    assessed valuation used  in  calculating  its  general  State
11    financial  aid  apportionment  for the 1998-1999 school year,
12    the State Board of Education shall  calculate  the  Extension
13    Limitation  Equalized Assessed Valuation that would have been
14    used to calculate the district's 1998-1999 general State aid.
15    This amount shall equal the product of the equalized assessed
16    valuation  used  to  calculate  general  State  aid  for  the
17    1997-1998 school year and the district's Extension Limitation
18    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
19    Valuation  of  the  school  district as calculated under this
20    paragraph (4) is less than the district's equalized  assessed
21    valuation  utilized  in  calculating the district's 1998-1999
22    general  State  aid  allocation,   then   for   purposes   of
23    calculating  the  district's  general  State  aid pursuant to
24    paragraph (5) of subsection (E),  that  Extension  Limitation
25    Equalized  Assessed  Valuation shall be utilized to calculate
26    the district's Available Local Resources.
27        (5)  For school districts  having  a  majority  of  their
28    equalized  assessed  valuation  in  any  county  except Cook,
29    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
30    general  State  aid  allocated to the school district for the
31    1999-2000 school year under the provisions of subsection (E),
32    (H), and (J) of this Section  is  less  than  the  amount  of
33    general State aid allocated to the district for the 1998-1999
34    school  year  under these subsections, then the general State
 
                            -15-             LRB9205352NTsbam
 1    aid of the district for the 1999-2000 school year only  shall
 2    be  increased  by  the difference between these amounts.  The
 3    total payments made under this paragraph (5) shall not exceed
 4    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
 5    $14,000,000.

 6    (H)  Supplemental General State Aid.
 7        (1)  In  addition  to  the  general  State  aid  a school
 8    district is allotted pursuant to subsection  (E),  qualifying
 9    school  districts  shall receive a grant, paid in conjunction
10    with  a  district's  payments  of  general  State  aid,   for
11    supplemental  general  State aid based upon the concentration
12    level of  children  from  low-income  households  within  the
13    school  district.  Supplemental State aid grants provided for
14    school districts under this subsection shall be  appropriated
15    for distribution to school districts as part of the same line
16    item  in  which  the  general  State  financial aid of school
17    districts is appropriated under this Section. For purposes of
18    this subsection, the term  "Low-Income  Concentration  Level"
19    shall  be  the  low-income eligible pupil count from the most
20    recently available federal  census  divided  by  the  Average
21    Daily  Attendance  of  the  school district. If, however, the
22    percentage decrease from the 2 most recent  federal  censuses
23    in  the  low-income  eligible  pupil  count  of a high school
24    district with fewer than 400 students exceeds by 75% or  more
25    the  percentage change in the total low-income eligible pupil
26    count  of  contiguous  elementary  school  districts,   whose
27    boundaries are coterminous with the high school district, the
28    high  school  district's low-income eligible pupil count from
29    the earlier federal census shall be the number  used  as  the
30    low-income eligible pupil count for the high school district,
31    for purposes of this subsection (H).
32        (2)  Supplemental  general  State  aid  pursuant  to this
33    subsection shall be provided as follows:
34             (a)  For any  school  district  with  a  Low  Income
 
                            -16-             LRB9205352NTsbam
 1        Concentration  Level  of  at least 20% and less than 35%,
 2        the grant for any school year shall be $800 multiplied by
 3        the low income eligible pupil count.
 4             (b)  For any  school  district  with  a  Low  Income
 5        Concentration  Level  of  at least 35% and less than 50%,
 6        the grant for the 1998-1999 school year shall  be  $1,100
 7        multiplied by the low income eligible pupil count.
 8             (c)  For  any  school  district  with  a  Low Income
 9        Concentration Level of at least 50% and  less  than  60%,
10        the  grant  for  the  1998-99 school year shall be $1,500
11        multiplied by the low income eligible pupil count.
12             (d)  For any  school  district  with  a  Low  Income
13        Concentration  Level  of  60%  or more, the grant for the
14        1998-99 school year shall be $1,900 multiplied by the low
15        income eligible pupil count.
16             (e)  For the 1999-2000 school year,  the  per  pupil
17        amount  specified  in  subparagraphs  (b),  (c),  and (d)
18        immediately above shall be increased to  $1,243,  $1,600,
19        and $2,000, respectively.
20             (f)  For  the  2000-2001  school year, the per pupil
21        amounts specified in  subparagraphs  (b),  (c),  and  (d)
22        immediately  above  shall  be $1,273, $1,640, and $2,050,
23        respectively.
24        (3)  School districts with an Average Daily Attendance of
25    more than  1,000  and  less  than  50,000  that  qualify  for
26    supplemental  general  State  aid pursuant to this subsection
27    shall submit a plan to the State Board of Education prior  to
28    October  30  of  each year for the use of the funds resulting
29    from this grant of supplemental general  State  aid  for  the
30    improvement  of  instruction  in  which  priority is given to
31    meeting the education needs of disadvantaged children.   Such
32    plan   shall  be  submitted  in  accordance  with  rules  and
33    regulations promulgated by the State Board of Education.
34        (4)  School districts with an Average Daily Attendance of
 
                            -17-             LRB9205352NTsbam
 1    50,000 or more that qualify for  supplemental  general  State
 2    aid   pursuant  to  this  subsection  shall  be  required  to
 3    distribute from funds available pursuant to this Section,  no
 4    less  than  $261,000,000  in  accordance  with  the following
 5    requirements:
 6             (a)  The required amounts shall  be  distributed  to
 7        the  attendance centers within the district in proportion
 8        to the number  of  pupils  enrolled  at  each  attendance
 9        center  who are eligible to receive free or reduced-price
10        lunches or breakfasts under the federal  Child  Nutrition
11        Act  of  1966  and  under  the  National School Lunch Act
12        during the immediately preceding school year.
13             (b)  The   distribution   of   these   portions   of
14        supplemental  and  general  State  aid  among  attendance
15        centers according to  these  requirements  shall  not  be
16        compensated  for  or  contravened  by  adjustments of the
17        total of  other  funds  appropriated  to  any  attendance
18        centers, and the Board of Education shall utilize funding
19        from  one  or several sources in order to fully implement
20        this provision annually prior to the opening of school.
21             (c)  Each attendance center shall be provided by the
22        school district a distribution  of  noncategorical  funds
23        and other categorical funds to which an attendance center
24        is entitled under law in order that the general State aid
25        and   supplemental   general   State   aid   provided  by
26        application of this subsection  supplements  rather  than
27        supplants  the noncategorical funds and other categorical
28        funds provided by the school district to  the  attendance
29        centers.
30             (d)  Any  funds made available under this subsection
31        that by reason of the provisions of this  subsection  are
32        not  required  to be allocated and provided to attendance
33        centers may be used and appropriated by the board of  the
34        district for any lawful school purpose.
 
                            -18-             LRB9205352NTsbam
 1             (e)  Funds received by an attendance center pursuant
 2        to this subsection shall be used by the attendance center
 3        at  the  discretion  of  the  principal  and local school
 4        council for programs to improve educational opportunities
 5        at qualifying schools through the following programs  and
 6        services:  early  childhood education, reduced class size
 7        or improved adult to student classroom ratio,  enrichment
 8        programs,  remedial  assistance,  attendance improvement,
 9        and other  educationally  beneficial  expenditures  which
10        supplement  the  regular and basic programs as determined
11        by the State Board of Education.   Funds  provided  shall
12        not be expended for any political or lobbying purposes as
13        defined by board rule.
14             (f)  Each district subject to the provisions of this
15        subdivision  (H)(4)  shall  submit  an acceptable plan to
16        meet the educational needs of disadvantaged children,  in
17        compliance  with  the  requirements of this paragraph, to
18        the State Board of Education prior to  July  15  of  each
19        year. This plan shall be consistent with the decisions of
20        local  school  councils concerning the school expenditure
21        plans developed in accordance  with  part  4  of  Section
22        34-2.3.  The State Board shall approve or reject the plan
23        within  60  days  after  its  submission.  If the plan is
24        rejected, the  district  shall  give  written  notice  of
25        intent   to  modify  the  plan  within  15  days  of  the
26        notification of rejection and then submit a modified plan
27        within 30 days after the date of the  written  notice  of
28        intent  to  modify.    Districts may amend approved plans
29        pursuant to rules  promulgated  by  the  State  Board  of
30        Education.
31             Upon  notification  by  the State Board of Education
32        that the district has not submitted a plan prior to  July
33        15  or  a  modified plan within the time period specified
34        herein, the State aid funds  affected  by  that  plan  or
 
                            -19-             LRB9205352NTsbam
 1        modified  plan  shall  be  withheld by the State Board of
 2        Education until a plan or modified plan is submitted.
 3             If the district fails to  distribute  State  aid  to
 4        attendance  centers  in accordance with an approved plan,
 5        the plan for the following year shall allocate funds,  in
 6        addition   to   the  funds  otherwise  required  by  this
 7        subsection,  to  those  attendance  centers  which   were
 8        underfunded  during the previous year in amounts equal to
 9        such underfunding.
10             For purposes of  determining  compliance  with  this
11        subsection  in relation to the requirements of attendance
12        center funding, each district subject to  the  provisions
13        of this subsection shall submit as a separate document by
14        December  1 of each year a report of expenditure data for
15        the prior year in addition to  any  modification  of  its
16        current  plan.  If it is determined that there has been a
17        failure to comply with the expenditure provisions of this
18        subsection regarding contravention  or  supplanting,  the
19        State  Superintendent  of Education shall, within 60 days
20        of receipt of the report, notify  the  district  and  any
21        affected local school council.  The district shall within
22        45  days of receipt of that notification inform the State
23        Superintendent of Education of the remedial or corrective
24        action to be taken, whether  by amendment of the  current
25        plan,  if  feasible, or by adjustment in the plan for the
26        following  year.   Failure  to  provide  the  expenditure
27        report or the  notification  of  remedial  or  corrective
28        action  in  a timely manner shall result in a withholding
29        of the affected funds.
30             The State Board of Education shall promulgate  rules
31        and  regulations  to  implement  the  provisions  of this
32        subsection.   No  funds  shall  be  released  under  this
33        subdivision (H)(4) to any district that has not submitted
34        a plan that has been  approved  by  the  State  Board  of
 
                            -20-             LRB9205352NTsbam
 1        Education.

 2    (I)  General State Aid for Newly Configured School Districts.
 3        (1)  For  a  new  school  district  formed  by  combining
 4    property   included  totally  within  2  or  more  previously
 5    existing school districts, for its first  year  of  existence
 6    the  general  State  aid  and  supplemental general State aid
 7    calculated under this Section shall be computed for  the  new
 8    district  and for the previously existing districts for which
 9    property is totally included within the new district.  If the
10    computation on the basis of the previously existing districts
11    is greater, a supplementary payment equal to  the  difference
12    shall  be  made for the first 4 years of existence of the new
13    district.
14        (2)  For a school  district  which  annexes  all  of  the
15    territory  of  one or more entire other school districts, for
16    the  first  year  during  which  the  change  of   boundaries
17    attributable  to  such  annexation  becomes effective for all
18    purposes as determined under Section 7-9 or 7A-8, the general
19    State aid and supplemental general State aid calculated under
20    this Section shall be computed for the annexing  district  as
21    constituted  after  the  annexation  and for the annexing and
22    each annexed district as constituted prior to the annexation;
23    and if the computation on  the  basis  of  the  annexing  and
24    annexed  districts  as constituted prior to the annexation is
25    greater, a supplementary  payment  equal  to  the  difference
26    shall  be  made  for  the  first  4 years of existence of the
27    annexing school district as constituted upon such annexation.
28        (3)  For 2 or more school districts which  annex  all  of
29    the  territory  of one or more entire other school districts,
30    and for 2 or more community unit districts which result  upon
31    the  division  (pursuant  to petition under Section 11A-2) of
32    one or more other unit school districts into 2 or more  parts
33    and  which  together include all of the parts into which such
34    other unit school district or districts are so  divided,  for
 
                            -21-             LRB9205352NTsbam
 1    the   first  year  during  which  the  change  of  boundaries
 2    attributable to such annexation or division becomes effective
 3    for all purposes as determined under Section 7-9  or  11A-10,
 4    as  the  case  may be, the general State aid and supplemental
 5    general State aid calculated  under  this  Section  shall  be
 6    computed   for   each   annexing  or  resulting  district  as
 7    constituted after the annexation or  division  and  for  each
 8    annexing  and  annexed  district,  or  for each resulting and
 9    divided district, as constituted prior to the  annexation  or
10    division;  and  if the aggregate of the general State aid and
11    supplemental  general  State  aid  as  so  computed  for  the
12    annexing or resulting  districts  as  constituted  after  the
13    annexation  or  division  is  less  than the aggregate of the
14    general State aid and supplemental general State  aid  as  so
15    computed  for  the annexing and annexed districts, or for the
16    resulting and divided districts, as constituted prior to  the
17    annexation or division, then a supplementary payment equal to
18    the  difference  shall be made and allocated between or among
19    the annexing or resulting districts, as constituted upon such
20    annexation or division,  for  the  first  4  years  of  their
21    existence.   The  total difference payment shall be allocated
22    between or among the annexing or resulting districts  in  the
23    same  ratio  as the pupil enrollment from that portion of the
24    annexed or divided district or districts which is annexed  to
25    or included in each such annexing or resulting district bears
26    to  the  total  pupil  enrollment  from the entire annexed or
27    divided district or districts, as such  pupil  enrollment  is
28    determined  for the school year last ending prior to the date
29    when the change of boundaries attributable to the  annexation
30    or  division  becomes effective for all purposes.  The amount
31    of the total difference payment and the amount thereof to  be
32    allocated  to  the  annexing  or resulting districts shall be
33    computed by the State Board of  Education  on  the  basis  of
34    pupil  enrollment  and other data which shall be certified to
 
                            -22-             LRB9205352NTsbam
 1    the State Board of Education, on forms which it shall provide
 2    for that purpose, by the regional superintendent  of  schools
 3    for each educational service region in which the annexing and
 4    annexed  districts,  or  resulting  and divided districts are
 5    located.
 6        (3.5)  Claims  for  financial   assistance   under   this
 7    subsection  (I)  shall  not be recomputed except as expressly
 8    provided under this Section.
 9        (4)  Any supplementary payment made under this subsection
10    (I) shall be treated as separate from all other payments made
11    pursuant to this Section.

12    (J)  Supplementary Grants in Aid.
13        (1)  Notwithstanding  any  other   provisions   of   this
14    Section,  the  amount  of  the aggregate general State aid in
15    combination with supplemental general State  aid  under  this
16    Section  for  which each school district is eligible shall be
17    no less than the amount of the aggregate  general  State  aid
18    entitlement  that  was received by the district under Section
19    18-8 (exclusive of amounts received  under  subsections  5(p)
20    and  5(p-5)  of  that  Section)  for the 1997-98 school year,
21    pursuant to the provisions of that Section as it was then  in
22    effect.   If   a  school  district  qualifies  to  receive  a
23    supplementary payment made under  this  subsection  (J),  the
24    amount of the aggregate general State aid in combination with
25    supplemental general State aid under this Section  which that
26    district is eligible to receive for each school year shall be
27    no  less  than  the amount of the aggregate general State aid
28    entitlement that was received by the district  under  Section
29    18-8  (exclusive  of  amounts received under subsections 5(p)
30    and 5(p-5) of that Section) for the  1997-1998  school  year,
31    pursuant  to the provisions of that Section as it was then in
32    effect.
33        (2)  If, as provided in paragraph (1) of this  subsection
34    (J),  a school district is to receive aggregate general State
 
                            -23-             LRB9205352NTsbam
 1    aid in combination with supplemental general State aid  under
 2    this  Section  for the 1998-99 school year and any subsequent
 3    school year that in any such school year  is  less  than  the
 4    amount  of  the  aggregate general State aid entitlement that
 5    the district received for the 1997-98 school year, the school
 6    district shall also receive, from  a  separate  appropriation
 7    made  for  purposes  of  this subsection (J), a supplementary
 8    payment that is equal to the amount of the difference in  the
 9    aggregate State aid figures as described in paragraph (1).
10        (3)  (Blank).

11    (K)  Grants to Laboratory and Alternative Schools.
12        In  calculating  the  amount  to be paid to the governing
13    board of a  public  university  that  operates  a  laboratory
14    school  under  this Section or to any alternative school that
15    is operated by a  regional  superintendent  of  schools,  the
16    State Board of Education shall require by rule such reporting
17    requirements as it deems necessary.
18        As  used  in  this  Section,  "laboratory school" means a
19    public school which is  created  and  operated  by  a  public
20    university and approved by the State Board of Education.  The
21    governing  board  of a public university which receives funds
22    from the State  Board  under  this  subsection  (K)  may  not
23    increase  the  number  of students enrolled in its laboratory
24    school from a single district, if that  district  is  already
25    sending  50 or more students, except under a mutual agreement
26    between the school board of a student's district of residence
27    and the university which operates the laboratory  school.   A
28    laboratory  school  may  not  have  more than 1,000 students,
29    excluding students with disabilities in a  special  education
30    program.
31        As  used  in  this  Section, "alternative school" means a
32    public school which is created and  operated  by  a  Regional
33    Superintendent  of Schools and approved by the State Board of
34    Education.  Such alternative schools  may  offer  courses  of
 
                            -24-             LRB9205352NTsbam
 1    instruction  for  which  credit  is  given  in regular school
 2    programs, courses to prepare students  for  the  high  school
 3    equivalency  testing  program  or vocational and occupational
 4    training.   A regional superintendent of schools may contract
 5    with a school district or a public community college district
 6    to operate an  alternative  school.   An  alternative  school
 7    serving  more  than  one  educational  service  region may be
 8    established by the regional superintendents of schools of the
 9    affected educational service regions.  An alternative  school
10    serving  more  than  one  educational  service  region may be
11    operated under such terms as the regional superintendents  of
12    schools of those educational service regions may agree.
13        Each  laboratory  and  alternative  school shall file, on
14    forms provided by the State Superintendent of  Education,  an
15    annual  State  aid  claim  which  states  the  Average  Daily
16    Attendance  of  the  school's  students by month.  The best 3
17    months' Average Daily Attendance shall be computed  for  each
18    school.  The  general State aid entitlement shall be computed
19    by multiplying the applicable Average Daily Attendance by the
20    Foundation Level as determined under this Section.

21    (L)  Payments,   Additional   Grants   in   Aid   and   Other
22    Requirements.
23        (1)  For a school district operating under the  financial
24    supervision  of  an  Authority created under Article 34A, the
25    general State aid otherwise payable to  that  district  under
26    this  Section,  but  not  the supplemental general State aid,
27    shall be reduced by an amount equal to  the  budget  for  the
28    operations  of the Authority as certified by the Authority to
29    the State Board of Education, and an  amount  equal  to  such
30    reduction  shall  be  paid  to the Authority created for such
31    district for its operating expenses in the manner provided in
32    Section 18-11.  The remainder of general State school aid for
33    any such district shall be paid in  accordance  with  Article
34    34A  when  that Article provides for a disposition other than
 
                            -25-             LRB9205352NTsbam
 1    that provided by this Article.
 2        (2)  (Blank).
 3        (3)  Summer school.  Summer school payments shall be made
 4    as provided in Section 18-4.3.

 5    (M)  Education Funding Advisory Board.
 6        The Education Funding Advisory Board, hereinafter in this
 7    subsection (M) referred to as the "Board", is hereby created.
 8    The Board shall consist of 5 members who are appointed by the
 9    Governor, by and with the advice and consent of  the  Senate.
10    The   members  appointed  shall  include  representatives  of
11    education, business, and  the  general  public.  One  of  the
12    members  so  appointed shall be designated by the Governor at
13    the time the appointment is made as the  chairperson  of  the
14    Board.  The initial members of the Board may be appointed any
15    time after the effective date of this amendatory Act of 1997.
16    The regular term of each member of the Board shall be  for  4
17    years  from  the third Monday of January of the year in which
18    the term of the member's appointment is to  commence,  except
19    that  of  the  5  initial  members  appointed to serve on the
20    Board, the member who is appointed as the  chairperson  shall
21    serve  for  a  term  that commences on the date of his or her
22    appointment and expires on the third Monday of January, 2002,
23    and the remaining 4 members,  by  lots  drawn  at  the  first
24    meeting  of  the  Board  that is held after all 5 members are
25    appointed, shall determine 2 of their  number  to  serve  for
26    terms   that   commence  on  the  date  of  their  respective
27    appointments and expire on the third Monday of January, 2001,
28    and 2 of their number to serve for terms that commence on the
29    date of their respective appointments and expire on the third
30    Monday of January, 2000.  All members appointed to  serve  on
31    the  Board  shall serve until their respective successors are
32    appointed and confirmed.  Vacancies shall be  filled  in  the
33    same  manner  as  original  appointments.   If  a  vacancy in
34    membership occurs at  a  time  when  the  Senate  is  not  in
 
                            -26-             LRB9205352NTsbam
 1    session,  the  Governor  shall  make  a temporary appointment
 2    until the next meeting of the Senate, when he  or  she  shall
 3    appoint,  by and with the advice and consent of the Senate, a
 4    person to fill that membership for the  unexpired  term.   If
 5    the  Senate  is  not in session when the initial appointments
 6    are made, those appointments shall be made as in the case  of
 7    vacancies.
 8        The  Education  Funding  Advisory  Board  shall be deemed
 9    established,  and  the  initial  members  appointed  by   the
10    Governor  to serve as members of the Board shall take office,
11    on the date that the Governor makes his or her appointment of
12    the fifth initial member of the Board, whether those  initial
13    members   are   then  serving  pursuant  to  appointment  and
14    confirmation or pursuant to temporary appointments  that  are
15    made by the Governor as in the case of vacancies.
16        The  State  Board  of  Education shall provide such staff
17    assistance to the Education  Funding  Advisory  Board  as  is
18    reasonably  required  for the proper performance by the Board
19    of its responsibilities.
20        For school years after the  2000-2001  school  year,  the
21    Education  Funding  Advisory  Board, in consultation with the
22    State Board  of  Education,  shall  make  recommendations  as
23    provided  in  this subsection (M) to the General Assembly for
24    the foundation level under subdivision (B)(3) of this Section
25    and for the supplemental general State aid grant level  under
26    subsection  (H)  of  this  Section  for  districts  with high
27    concentrations of children  from  poverty.   The  recommended
28    foundation  level  shall be determined based on a methodology
29    which  incorporates  the  basic  education  expenditures   of
30    low-spending  schools  exhibiting  high academic performance.
31    The  Education  Funding  Advisory  Board  shall   make   such
32    recommendations  to  the General Assembly on January 1 of odd
33    numbered years, beginning January 1, 2001.

34    (N)  (Blank).
 
                            -27-             LRB9205352NTsbam
 1    (O)  References.
 2        (1)  References in other laws to the various subdivisions
 3    of Section 18-8 as that Section existed before its repeal and
 4    replacement by this Section 18-8.05 shall be deemed to  refer
 5    to  the  corresponding provisions of this Section 18-8.05, to
 6    the extent that those references remain applicable.
 7        (2)  References in other laws to State  Chapter  1  funds
 8    shall  be  deemed  to refer to the supplemental general State
 9    aid provided under subsection (H) of this Section.
10    (Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
11    90-653, eff. 7-29-98;  90-654,  eff.  7-29-98;  90-655,  eff.
12    7-30-98;  90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24,
13    eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99;  91-111,
14    eff.  7-14-99;  91-357,  eff.  7-29-99; 91-533, eff. 8-13-99;
15    revised 8-27-99.)

16        Section 99.  Effective date.  This Act  takes  effect  on
17    July 1, 2001.".

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