Public Act 90-0654 of the 90th General Assembly

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Public Act 90-0654

HB2411 Enrolled                                LRB9007914THpk

    AN ACT relating to education funding.

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

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

    (105 ILCS 5/18-8.05)
    (This Section may contain text from a Public Act  with  a
delayed effective date.)
    Sec.  18-8.05.  Basis  for apportionment of general State
financial aid and  supplemental  general  State  aid  to  the
common schools for the 1998-1999 and subsequent school years.

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

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

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

(D)  Available Local Resources.
    (1)  For   purposes  of  calculating  general  State  aid
pursuant to subsection (E),  a  representation  of  Available
Local  Resources  per  pupil,  as  that  term  is defined and
determined in this subsection, shall be utilized.   Available
Local  Resources  per pupil shall include a calculated dollar
amount representing local school district revenues from local
property  taxes  and   from   Corporate   Personal   Property
Replacement  Taxes,  expressed  on  the  basis  of  pupils in
Average Daily Attendance.
    (2)  In determining  a  school  district's  revenue  from
local  property  taxes,  the  State  Board of Education shall
utilize the  equalized  assessed  valuation  of  all  taxable
property  of  each  school district as of September 30 of the
previous year.  The  equalized  assessed  valuation  utilized
shall  be  obtained  and determined as provided in subsection
(G).
    (3)  For school districts maintaining grades kindergarten
through 12, local property tax revenues per  pupil  shall  be
calculated   as  the  product  of  the  applicable  equalized
assessed valuation for the district multiplied by 3.00%,  and
divided  by  the  district's Average Daily Attendance figure.
For school districts maintaining grades kindergarten  through
8,  local property tax revenues per pupil shall be calculated
as the product of the applicable equalized assessed valuation
for the district multiplied by  2.30%,  and  divided  by  the
district's  Average  Daily  Attendance  figure.   For  school
districts maintaining grades 9 through 12, local property tax
revenues per pupil shall be the applicable equalized assessed
valuation of the district multiplied by 1.20%, and divided by
the district's Average Daily Attendance figure.
    (4)  The  Corporate  Personal  Property Replacement Taxes
paid to each school district during the calendar year 2 years
before the calendar year  in  which  a  school  year  begins,
divided  by  the  Average  Daily  Attendance  figure for that
district, shall be added to the local property  tax  revenues
per  pupil  as  derived by the application of the immediately
preceding paragraph (3).  The sum of these per pupil  figures
for  each  school  district  shall constitute Available Local
Resources as that term is utilized in subsection (E)  in  the
calculation of general State aid.

(E)  Computation of General State Aid.
    (1)  For  each  school  year, the amount of general State
aid allotted to a school district shall be  computed  by  the
State Board of Education as provided in this subsection.
    (2)  For  any  school  district for which Available Local
Resources per pupil is less than the product  of  0.93  times
the  Foundation  Level,  general  State aid for that district
shall be calculated as an  amount  equal  to  the  Foundation
Level  minus  Available  Local  Resources,  multiplied by the
Average Daily Attendance of the school district.
    (3)  For any school district for  which  Available  Local
Resources  per  pupil is equal to or greater than the product
of 0.93 times the Foundation Level and less than the  product
of 1.75 times the Foundation Level, the general State aid per
pupil  shall  be a decimal proportion of the Foundation Level
derived  using  a  linear  algorithm.   Under   this   linear
algorithm,  the  calculated general State aid per pupil shall
decline  in  direct  linear  fashion  from  0.07  times   the
Foundation  Level  for a school district with Available Local
Resources equal to the product of 0.93 times  the  Foundation
Level,  to  0.05  times  the  Foundation  Level  for a school
district with Available Local Resources equal to the  product
of  1.75  times  the  Foundation  Level.   The  allocation of
general State  aid  for  school  districts  subject  to  this
paragraph  3  shall  be  the calculated general State aid per
pupil figure multiplied by the Average  Daily  Attendance  of
the school district.
    (4)  For  any  school  district for which Available Local
Resources per pupil equals or exceeds  the  product  of  1.75
times  the  Foundation  Level,  the general State aid for the
school district shall be calculated as the  product  of  $218
multiplied  by  the  Average  Daily  Attendance of the school
district.

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

(G)  Equalized Assessed Valuation Data.
    (1)  For  purposes  of the calculation of Available Local
Resources required pursuant  to  subsection  (D),  the  State
Board  of  Education  shall  secure  from  the  Department of
Revenue the value as equalized or assessed by the  Department
of  Revenue  of all taxable property of every school district
together with the applicable tax rate used in extending taxes
for the funds of the district  as  of  September  30  of  the
previous year.
    This equalized assessed valuation, as adjusted further by
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
    (2)  The  equalized  assessed  valuation in paragraph (1)
shall be adjusted, as applicable, in the following manner:
         (a)  For the purposes of calculating State aid under
    this Section, with  respect  to  any  part  of  a  school
    district  within  a redevelopment project area in respect
    to  which  a  municipality  has  adopted  tax   increment
    allocation   financing  pursuant  to  the  Tax  Increment
    Allocation Redevelopment Act, Sections 11-74.4-1  through
    11-74.4-11   of   the  Illinois  Municipal  Code  or  the
    Industrial Jobs Recovery Law, Sections 11-74.6-1  through
    11-74.6-50 of the Illinois Municipal Code, no part of the
    current  equalized  assessed  valuation  of real property
    located in any such project area which is attributable to
    an increase above the total  initial  equalized  assessed
    valuation  of  such property shall be used as part of the
    equalized assessed valuation of the district, until  such
    time  as  all redevelopment project costs have been paid,
    as provided in Section 11-74.4-8  of  the  Tax  Increment
    Allocation  Redevelopment Act or in Section 11-74.6-35 of
    the Industrial Jobs Recovery Law.  For the purpose of the
    equalized assessed valuation of the district,  the  total
    initial  equalized  assessed  valuation  or  the  current
    equalized  assessed  valuation, whichever is lower, shall
    be used until such  time  as  all  redevelopment  project
    costs have been paid.
         (b)  The  real property equalized assessed valuation
    for a school district shall be  adjusted  by  subtracting
    from  the real property value as equalized or assessed by
    the Department of Revenue  for  the  district  an  amount
    computed by dividing the amount of any abatement of taxes
    under  Section  18-170  of the Property Tax Code by 3.00%
    for a district maintaining grades kindergarten through 12
    or  by  2.30%   for   a   district   maintaining   grades
    kindergarten  through  8,  or  by  1.20%  for  a district
    maintaining grades 9 through 12 and adjusted by an amount
    computed by dividing the amount of any abatement of taxes
    under subsection (a) of Section 18-165  of  the  Property
    Tax  Code  by the same percentage rates for district type
    as specified in this subparagraph (c).
(H)  Supplemental General State Aid.
    (1)  In addition  to  the  general  State  aid  a  school
district  is  allotted pursuant to subsection (E), qualifying
school districts shall receive a grant, paid  in  conjunction
with   a  district's  payments  of  general  State  aid,  for
supplemental general State aid based upon  the  concentration
level  of  children  from  low-income  households  within the
school district. Supplemental State aid grants  provided  for
school  districts under this subsection shall be appropriated
for distribution to school districts as part of the same line
item in which the  general  State  financial  aid  of  school
districts is appropriated under this Section. For purposes of
this  subsection,  the  term "Low-Income Concentration Level"
shall be the low-income eligible pupil count  from  the  most
recently  available  federal  census  divided  by the Average
Daily Attendance of the school district.
    (2)  Supplemental general  State  aid  pursuant  to  this
subsection shall be provided as follows:
         (a)  For  any  school  district  with  a  Low Income
    Concentration Level of at least 20% and  less  than  35%,
    the grant for any school year shall be $800 multiplied by
    the low income eligible pupil count.
         (b)  For  any  school  district  with  a  Low Income
    Concentration Level of at least 35% and  less  than  50%,
    the  grant  for the 1998-1999 school year shall be $1,100
    multiplied by the low income eligible pupil count.
         (c)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 50% and less than 60%,
    the grant for the 1998-99 school  year  shall  be  $1,500
    multiplied by the low income eligible pupil count.
         (d)  For  any  school  district  with  a  Low Income
    Concentration Level of 60% or more,  the  grant  for  the
    1998-99 school year shall be $1,900 multiplied by the low
    income eligible pupil count.
         (e)  For  the  1999-2000  school year, the per pupil
    amount specified in  subparagraphs  (b),  (c),  and  (d),
    immediately  above  shall be increased by $100 to $1,200,
    $1,600, and $2,000, respectively.
         (f)  For the 2000-2001 school year,  the  per  pupil
    amounts  specified  in  subparagraphs  (b),  (c)  and (d)
    immediately above shall be increased to  $1,230,  $1,640,
    and $2,050, respectively.
    (3)  School districts with an Average Daily Attendance of
more  than  1,000  and  less  than  50,000  that  qualify for
supplemental general State aid pursuant  to  this  subsection
shall  submit a plan to the State Board of Education prior to
October 30 of each year for the use of  the  funds  resulting
from  this  grant  of  supplemental general State aid for the
improvement of instruction in  which  priority  is  given  to
meeting  the education needs of disadvantaged children.  Such
plan  shall  be  submitted  in  accordance  with  rules   and
regulations promulgated by the State Board of Education.
    (4)  School districts with an Average Daily Attendance of
50,000  or  more  that qualify for supplemental general State
aid  pursuant  to  this  subsection  shall  be  required   to
distribute  from funds available pursuant to this Section, no
less than  $261,000,000  in  accordance  with  the  following
requirements:
         (a)  The  required  amounts  shall be distributed to
    the attendance centers within the district in  proportion
    to  the  number  of  pupils  enrolled  at each attendance
    center who are eligible to receive free or  reduced-price
    lunches  or  breakfasts under the federal Child Nutrition
    Act of 1966 and  under  the  National  School  Lunch  Act
    during the immediately preceding school year.
         (b)  The   distribution   of   these   portions   of
    supplemental  and  general  State  aid  among  attendance
    centers  according  to  these  requirements  shall not be
    compensated for or  contravened  by  adjustments  of  the
    total  of  other  funds  appropriated  to  any attendance
    centers, and the Board of Education shall utilize funding
    from one or several sources in order to  fully  implement
    this provision annually prior to the opening of school.
         (c)  Each attendance center shall be provided by the
    school  district  a  distribution of noncategorical funds
    and other categorical funds to which an attendance center
    is entitled under law in order that the general State aid
    and  supplemental   general   State   aid   provided   by
    application  of  this  subsection supplements rather than
    supplants the noncategorical funds and other  categorical
    funds  provided  by the school district to the attendance
    centers.
         (d)  Any funds made available under this  subsection
    that  by  reason of the provisions of this subsection are
    not required to be allocated and provided  to  attendance
    centers  may be used and appropriated by the board of the
    district for any lawful school purpose.
         (e)  Funds received by an attendance center pursuant
    to this subsection shall be used by the attendance center
    at the discretion  of  the  principal  and  local  school
    council for programs to improve educational opportunities
    at  qualifying schools through the following programs and
    services: early childhood education, reduced  class  size
    or  improved adult to student classroom ratio, enrichment
    programs, remedial assistance, attendance improvement and
    other   educationally   beneficial   expenditures   which
    supplement the regular and basic programs  as  determined
    by  the  State  Board of Education.  Funds provided shall
    not be expended for any political or lobbying purposes as
    defined by board rule.
         (f)  Each district subject to the provisions of this
    subdivision (H)(4) shall submit  an  acceptable  plan  to
    meet  the educational needs of disadvantaged children, in
    compliance with the requirements of  this  paragraph,  to
    the  State  Board  of  Education prior to July 15 of each
    year. This plan shall be consistent with the decisions of
    local school councils concerning the  school  expenditure
    plans  developed  in  accordance  with  part 4 of Section
    34-2.3.  The State Board shall approve or reject the plan
    within 60 days after its  submission.   If  the  plan  is
    rejected,  the  district  shall  give  written  notice of
    intent  to  modify  the  plan  within  15  days  of   the
    notification of rejection and then submit a modified plan
    within  30  days  after the date of the written notice of
    intent to modify.  Districts  may  amend  approved  plans
    pursuant  to  rules  promulgated  by  the  State Board of
    Education.
         Upon notification by the State  Board  of  Education
    that  the district has not submitted a plan prior to July
    15 or a modified plan within the  time  period  specified
    herein,  the  State  aid  funds  affected by that plan or
    modified plan shall be withheld by  the  State  Board  of
    Education until a plan or modified plan is submitted.
         If  the  district  fails  to distribute State aid to
    attendance centers in accordance with an  approved  plan,
    the  plan for the following year shall allocate funds, in
    addition  to  the  funds  otherwise  required   by   this
    subsection,   to  those  attendance  centers  which  were
    underfunded during the previous year in amounts equal  to
    such underfunding.
         For  purposes  of  determining  compliance with this
    subsection in relation to the requirements of  attendance
    center  funding,  each district subject to the provisions
    of this subsection shall submit as a separate document by
    December 1 of each year a report of expenditure data  for
    the  prior  year  in  addition to any modification of its
    current plan.  If it is determined that there has been  a
    failure to comply with the expenditure provisions of this
    subsection  regarding  contravention  or supplanting, the
    State Superintendent of Education shall, within  60  days
    of  receipt  of  the  report, notify the district and any
    affected local school council.  The district shall within
    45 days of receipt of that notification inform the  State
    Superintendent of Education of the remedial or corrective
    action  to be taken, whether  by amendment of the current
    plan, if feasible, or by adjustment in the plan  for  the
    following  year.   Failure  to  provide  the  expenditure
    report  or  the  notification  of  remedial or corrective
    action in a timely manner shall result in  a  withholding
    of the affected funds.
         The  State Board of Education shall promulgate rules
    and regulations  to  implement  the  provisions  of  this
    subsection.   No  funds  shall  be  released  under  this
    subdivision (H)(4) to any district that has not submitted
    a  plan  that  has  been  approved  by the State Board of
    Education.

(I)  General State Aid for Newly Configured School Districts.
    (1)  For  a  new  school  district  formed  by  combining
property  included  totally  within  2  or  more   previously
existing  school  districts,  for its first year of existence
the general State aid  and  supplemental  general  State  aid
calculated  under  this Section shall be computed for the new
district and for the previously existing districts for  which
property is totally included within the new district.  If the
computation on the basis of the previously existing districts
is  greater,  a supplementary payment equal to the difference
shall be made for the first 4 years of existence of  the  new
district.
    (2)  For  a  school  district  which  annexes  all of the
territory of one or more entire other school  districts,  for
the   first  year  during  which  the  change  of  boundaries
attributable to such annexation  becomes  effective  for  all
purposes as determined under Section 7-9 or 7A-8, the general
State aid and supplemental general State aid calculated under
this  Section  shall be computed for the annexing district as
constituted after the annexation and  for  the  annexing  and
each annexed district as constituted prior to the annexation;
and  if  the  computation  on  the  basis of the annexing and
annexed districts as constituted prior to the  annexation  is
greater,  a  supplementary  payment  equal  to the difference
shall be made for the first  4  years  of  existence  of  the
annexing school district as constituted upon such annexation.
    (3)  For  2  or  more school districts which annex all of
the territory of one or more entire other  school  districts,
and  for 2 or more community unit districts which result upon
the division (pursuant to petition under  Section  11A-2)  of
one  or more other unit school districts into 2 or more parts
and which together include all of the parts into  which  such
other  unit  school district or districts are so divided, for
the  first  year  during  which  the  change  of   boundaries
attributable to such annexation or division becomes effective
for  all  purposes as determined under Section 7-9 or 11A-10,
as the case may be, the general State  aid  and  supplemental
general  State  aid  calculated  under  this Section shall be
computed  for  each  annexing  or   resulting   district   as
constituted  after  the  annexation  or division and for each
annexing and annexed district,  or  for  each  resulting  and
divided  district,  as constituted prior to the annexation or
division; and if the aggregate of the general State  aid  and
supplemental  general  State  aid  as  so  computed  for  the
annexing  or  resulting  districts  as  constituted after the
annexation or division is less  than  the  aggregate  of  the
general  State  aid  and supplemental general State aid as so
computed for the annexing and annexed districts, or  for  the
resulting  and divided districts, as constituted prior to the
annexation or division, then a supplementary payment equal to
the difference shall be made and allocated between  or  among
the annexing or resulting districts, as constituted upon such
annexation  or  division,  for  the  first  4  years of their
existence.  The total difference payment shall  be  allocated
between  or  among the annexing or resulting districts in the
same ratio as the pupil enrollment from that portion  of  the
annexed  or divided district or districts which is annexed to
or included in each such annexing or resulting district bears
to the total pupil enrollment  from  the  entire  annexed  or
divided  district  or  districts, as such pupil enrollment is
determined for the school year last ending prior to the  date
when  the change of boundaries attributable to the annexation
or division becomes effective for all purposes.   The  amount
of  the total difference payment and the amount thereof to be
allocated to the annexing or  resulting  districts  shall  be
computed  by  the  State  Board  of Education on the basis of
pupil enrollment and other data which shall be  certified  to
the State Board of Education, on forms which it shall provide
for  that  purpose, by the regional superintendent of schools
for each educational service region in which the annexing and
annexed districts, or resulting  and  divided  districts  are
located.
    (4)  Any supplementary payment made under this subsection
(I) shall be treated as separate from all other payments made
pursuant to this Section.

(J)  Supplementary Grants in Aid.
    (1)  Notwithstanding   any   other   provisions  of  this
Section, the amount of the aggregate  general  State  aid  in
combination  with  supplemental  general State aid under this
Section for which each school district is  eligible  for  the
1998-1999 school year shall be no less than the amount of the
aggregate  general State aid entitlement that was received by
the  district  under  Section  18-8  (exclusive  of   amounts
received  under  subsections 5(p) and 5(p-5) of that Section)
for the 1997-98 school year, pursuant to  the  provisions  of
that  Section  as it was then in effect. If a school district
qualifies to receive a supplementary payment made under  this
subsection  (J)  for the 1998-1999 school year, the amount of
the  aggregate  general  State  aid   in   combination   with
supplemental general State aid under this Section  which that
district   is  eligible  to  receive  for  each  school  year
subsequent to the 1998-1999 school year shall be no less than
the amount of the aggregate  general  State  aid  entitlement
that   was  received  by  the  district  under  Section  18-8
(exclusive of amounts received  under  subsections  5(p)  and
5(p-5)  of  that  Section)  for  the  1997-1998  school year,
pursuant to the provisions of that Section as it was then  in
effect.
    (2)  If,  as provided in paragraph (1) of this subsection
(J), a school district is to receive aggregate general  State
aid  in combination with supplemental general State aid under
this Section for the 1998-99 school year, or for the  1998-99
school  year and any subsequent school year, that in any such
school year is less than the amount of the aggregate  general
State  aid  entitlement  that  the  district received for the
1997-98 school year, the school district shall also  receive,
from  a  separate  appropriation  made  for  purposes of this
subsection (J), a supplementary payment that is equal to  the
amount  of  the difference in the aggregate State aid figures
as described in paragraph (1).
    (3)  If  the  amount   appropriated   for   supplementary
payments  to  school  districts  under this subsection (J) is
insufficient for that  purpose,  the  supplementary  payments
that  districts are to receive under this subsection shall be
prorated  according  to   the   aggregate   amount   of   the
appropriation made for purposes of this subsection.
(K)  Grants to Laboratory and Alternative Schools.
    In  calculating  the  amount  to be paid to the governing
board of a  public  university  that  operates  a  laboratory
school  under  this Section or to any alternative school that
is operated by a regional superintendent, the State Board  of
Education  shall  require by rule such reporting requirements
as it deems necessary.
    As used in this  Section,  "laboratory  school"  means  a
public  school  which  is  created  and  operated by a public
university and approved by the State Board of Education.  The
governing board of a public university which  receives  funds
from  the  State  Board  under  this  subsection  (K) may not
increase the number of students enrolled  in  its  laboratory
school  from  a  single district, if that district is already
sending 50 or more students, except under a mutual  agreement
between the school board of a student's district of residence
and  the  university which operates the laboratory school.  A
laboratory school may not  have  more  than  1,000  students,
excluding  students  with disabilities in a special education
program.
    As used in this Section,  "alternative  school"  means  a
public  school  which  is  created and operated by a Regional
Superintendent of Schools and approved by the State Board  of
Education.  Such  alternative  schools  may  offer courses of
instruction for which  credit  is  given  in  regular  school
programs,  courses  to  prepare  students for the high school
equivalency testing program or  vocational  and  occupational
training.
    Each  laboratory  and  alternative  school shall file, on
forms provided by the State Superintendent of  Education,  an
annual  State  aid  claim  which  states  the  Average  Daily
Attendance  of  the  school's  students by month.  The best 3
months' Average Daily Attendance shall be computed  for  each
school.  The  general State aid entitlement shall be computed
by multiplying the applicable Average Daily Attendance by the
Foundation Level as determined under this Section.

(L)  Payments,   Additional   Grants   in   Aid   and   Other
Requirements.
    (1)  For a school district operating under the  financial
supervision  of  an  Authority created under Article 34A, the
general State aid otherwise payable to  that  district  under
this  Section,  but  not  the supplemental general State aid,
shall be reduced by an amount equal to  the  budget  for  the
operations  of the Authority as certified by the Authority to
the State Board of Education, and an  amount  equal  to  such
reduction  shall  be  paid  to the Authority created for such
district for its operating expenses in the manner provided in
Section 18-11.  The remainder of general State school aid for
any such district shall be paid in  accordance  with  Article
34A  when  that Article provides for a disposition other than
that provided by this Article.
    (2)  Impaction.  Impaction  payments  shall  be  made  as
provided for in Section 18-4.2.
    (3)  Summer school.  Summer school payments shall be made
as provided in Section 18-4.3.

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

(N)  General State Aid Adjustment Grant.
    (1)  Any   school   district   subject  to  property  tax
extension limitations as imposed under the provisions of  the
Property  Tax  Extension  Limitation Law shall be entitled to
receive, subject to the qualifications  and  requirements  of
this  subsection,  a  general  State  aid  adjustment  grant.
Eligibility  for  this grant shall be determined on an annual
basis and claims for grant payments shall be paid subject  to
appropriations   made   specific  to  this  subsection.   For
purposes of this subsection the following  terms  shall  have
the following meanings:
    "Budget  Year":   The school year for which general State
aid is calculated and awarded under subsection (E).
    "Current Year":  The school  year  immediately  preceding
the Budget Year.
    "Base  Tax  Year":   The  property  tax levy year used to
calculate the Budget Year allocation of general State aid.
    "Preceding  Tax  Year":   The  property  tax  levy   year
immediately preceding the Base Tax Year.
    "Extension   Limitation   Ratio":   A   numerical  ratio,
certified by a school district's County Clerk, in  which  the
numerator  is  the  Base  Tax  Year's  tax  extension  amount
resulting  from the Operating Tax Rate and the denominator is
the Preceding Tax Year's tax extension amount resulting  from
the Operating Tax Rate.
    "Operating  Tax  Rate": The operating tax rate as defined
in subsection (A).
    (2)  To qualify for a general State aid adjustment grant,
a school district must meet all of the following  eligibility
criteria for each Budget Year for which a grant is claimed:
         (a)  The  Operating  Tax Rate of the school district
    in the Preceding Tax Year was at least 3.00% in the  case
    of  a  school  district  maintaining  grades kindergarten
    through 12, at least  2.30%  in  the  case  of  a  school
    district maintaining grades kindergarten through 8, or at
    least  1.41% in the case of a school district maintaining
    grades 9 through 12.
         (b)  The Operating Tax Rate of the  school  district
    for  the  Base  Tax  Year was reduced by the Clerk of the
    County as a result of the requirements  of  the  Property
    Tax Extension Limitation Law.
         (c)  The  Available Local Resources per pupil of the
    school district as calculated pursuant to subsection  (D)
    using the Base Tax Year are less than the product of 1.75
    times the Foundation Level for the Budget Year.
         (d)  The  school  district  has  filed  a proper and
    timely claim for a general State aid adjustment grant  as
    required under this subsection.
    (3)  A  claim  for grant assistance under this subsection
shall be filed with the State Board of Education on or before
January 1 of the Current Year for  a  grant  for  the  Budget
Year.   The  claim  shall  be made on forms prescribed by the
State Board of Education and must be accompanied by a written
statement from the Clerk of the County, certifying:
         (a)  That the school district has its extension  for
    the Base Tax Year reduced as a result of the Property Tax
    Extension Limitation Law.
         (b)  That  the  Operating  Tax  Rate  of  the school
    district for the Preceding Tax  Year  met  the  tax  rate
    requirements of subdivision (N)(2) of this Section.
         (c)  The  Extension Limitation Ratio as that term is
    defined in this subsection.
    (4)  On or before August 1 of the Budget Year  the  State
Board  of Education shall calculate, for all school districts
meeting the other requirements of this subsection, the amount
of the general State aid adjustment grant, if any,  that  the
school  districts are eligible to receive in the Budget Year.
The amount of the general State aid adjustment grant shall be
calculated as follows:
         (a)  Determine the school district's  general  State
    aid  grant  for the Budget Year as provided in accordance
    with the provisions of subsection (E).
         (b)  Determine the school district's adjusted  level
    of  general  State aid by utilizing in the calculation of
    Available Local Resources an equalized assessed valuation
    that is the equalized assessed valuation of the Preceding
    Tax Year multiplied by the Extension Limitation Ratio.
         (c)  Subtract the sum derived  in  subparagraph  (a)
    from  the sum derived in subparagraph (b).  If the result
    is a positive number, that amount shall  be  the  general
    State  aid adjustment grant that the district is eligible
    to receive.
    (5)  The State Board of Education shall  in  the  Current
Year,  based upon claims filed in the Current Year, recommend
to the General  Assembly  an  appropriation  amount  for  the
general  State aid adjustment grants to be made in the Budget
Year.
    (6)  Claims for general State aid adjustment grants shall
be paid in a lump sum on or before January 1  of  the  Budget
Year  only  from  appropriations made by the General Assembly
expressly for claims under this subsection.  No  such  claims
may  be  paid from amounts appropriated for any other purpose
provided for under this  Section.   In  the  event  that  the
appropriation   for   claims   under   this   subsection   is
insufficient  to  meet  all  Budget Year claims for a general
State aid adjustment grant, the appropriation available shall
be proportionately prorated by the State Board  of  Education
amongst all districts filing for and entitled to payments.
    (7)  The  State  Board  of Education shall promulgate the
required claim forms and rules  necessary  to  implement  the
provisions of this subsection.

(O)  References.
    (1)  References in other laws to the various subdivisions
of Section 18-8 as that Section existed before its repeal and
replacement  by this Section 18-8.05 shall be deemed to refer
to the corresponding provisions of this Section  18-8.05,  to
the extent that those references remain applicable.
    (2)  References  in  other  laws to State Chapter 1 funds
shall be deemed to refer to the  supplemental  general  State
aid provided under subsection (H) of this Section.
(Source: P.A. 90-548, eff. 7-1-98.)

    Section   10.    The   General   State   Aid   Continuing
Appropriation  Law  is  amended  by  changing  Sections 15-5,
15-10, 15-15, and 15-20 as follows:

    (105 ILCS 235/15-5)
    Sec. 15-5.  Short title.  This Article may  be  cited  as
the General State Aid Continuing Appropriation Law.
(Source: P.A. 90-548, eff. 12-4-97.)

    (105 ILCS 235/15-10)
    Sec. 15-10.  Annual budget; recommendation.  The Governor
shall  include  a  Common  School  Fund recommendation to the
State Board of Education in the fiscal year 1999 through 2001
annual Budgets sufficient to fund (i) the General  State  Aid
Formula  set  forth in subsection (E) (Computation of General
State Aid) and subsection  (H)  (Supplemental  General  State
Aid)  of  Section  18-8.05  of  the  School Code and (ii) the
supplementary payments for  school  districts  set  forth  in
subsection  (J)  (Supplementary  Grants  in  Aid)  of Section
18-8.05 of the School Code.
(Source: P.A. 90-548, eff. 12-4-97.)

    (105 ILCS 235/15-15)
    Sec. 15-15.  General State  Aid  Formula;  Funding.   The
General  Assembly  shall  annually  make  Common  School Fund
appropriations to the State  Board  of  Education  in  fiscal
years  1999  through  2001 sufficient to fund (i) the General
State Aid Formula set forth in subsection (E) (Computation of
General State Aid)  and subsection (H) (Supplemental  General
State Aid) of Section 18-8.05 of the School Code and (ii) the
supplementary  payments  for  school  districts  set forth in
subsection (J)  (Supplementary  Grants  in  Aid)  of  Section
18-8.05 of the School Code.
(Source: P.A. 90-548, eff. 12-4-97.)

    (105 ILCS 235/15-20)
    Sec.  15-20.   Continuing  appropriation.  If the General
Assembly fails to make Common School Fund  appropriations  to
the  State  Board  of  Education in fiscal years 1999 through
2001 sufficient to fund (i) the General State Aid Formula set
forth in subsection (E) (Computation of  General  State  Aid)
and  subsection  (H)  (Supplemental  General  State  Aid)  of
Section 18-8.05 of the School Code and (ii) the supplementary
payments  for  school  districts  set forth in subsection (J)
(Supplementary Grants in  Aid)  of  Section  18-8.05  of  the
School Code, this Article shall constitute an irrevocable and
continuing  appropriation  from the Common School Fund of all
amounts necessary for those purposes that purpose.
(Source: P.A. 90-548, eff. 12-4-97.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming  law,  except  the  change to Section 18-8.05 of the
School Code takes effect July 1, 1998.

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