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92nd General Assembly

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Public Act 92-0636

SB1524 Enrolled                                LRB9208953NTsb

    AN ACT concerning average daily attendance.

    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)
    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)  (Blank).
    (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  of
    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 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 $4,560 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 or the average of the
attendance data for the 3 preceding school  years,  whichever
is greater.  The Average Daily Attendance figures utilized in
subsection (H) 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 1.05%, 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.
    (5)  The  amount  of  general  State  aid  allocated to a
school district for the 1999-2000  school  year  meeting  the
requirements  set  forth  in  paragraph (4) of subsection (G)
shall be increased by an amount equal to  the  general  State
aid  that  would  have  been received by the district for the
1998-1999 school year by utilizing the  Extension  Limitation
Equalized  Assessed  Valuation as calculated in paragraph (4)
of subsection (G) less the general State aid allotted for the
1998-1999 school year.  This amount shall  be  deemed  a  one
time  increase, and shall not affect any future general State
aid allocations.

(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.   Beginning  with  the general State aid claim form for
the 2002-2003 school year, districts shall calculate  Average
Daily  Attendance  as  provided in subdivisions (a), (b), and
(c) of this paragraph (1).
         (a)  In  districts  that  do  not  hold   year-round
    classes,  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.
         (b)  In   districts  in  which  all  buildings  hold
    year-round classes, days of attendance in July and August
    shall be added to the month of September and any days  of
    attendance in June shall be added to the month of May.
         (c)  In  districts  in which some buildings, but not
    all, hold  year-round  classes,  for  the  non-year-round
    buildings, 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. The average daily
    attendance for the year-round buildings shall be computed
    as provided in subdivision (b) of this paragraph (1).  To
    calculate  the Average Daily Attendance for the district,
    the average daily attendance for the year-round buildings
    shall be multiplied  by  the  days  in  session  for  the
    non-year-round  buildings for each month and added to the
    monthly attendance of the non-year-round buildings.
    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,
    unless a pupil is enrolled in a block-schedule format  of
    80  minutes  or  more  of  instruction, in which case the
    pupil may be counted on the basis of  the  proportion  of
    minutes  of school work completed each day to the minimum
    number of minutes that school work is required to be held
    that day.
         (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  of
    teaching  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 one 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 (i) the applicable tax rate used  in  extending
taxes for the funds of the district as of September 30 of the
previous  year  and  (ii)  the  limiting  rate for all school
districts subject to property tax  extension  limitations  as
imposed under the Property Tax Extension Limitation Law.
    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,   by   2.30%   for   a  district  maintaining  grades
    kindergarten through  8,  or  by  1.05%  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 (b).
    (3)  For  the  1999-2000 school year and each school year
thereafter, if a school district meets all of the criteria of
this subsection (G)(3), the school district's Available Local
Resources shall be calculated under subsection (D) using  the
district's  Extension Limitation Equalized Assessed Valuation
as calculated under this subsection (G)(3).
    For purposes of  this  subsection  (G)(3)  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).
         "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.
         "Base  Tax Year's Tax Extension": The product of the
    equalized assessed valuation utilized by the County Clerk
    in the Base Tax Year multiplied by the limiting  rate  as
    calculated  by  the  County  Clerk  and  defined  in  the
    Property Tax Extension Limitation Law.
         "Preceding Tax Year's Tax Extension": The product of
    the  equalized  assessed valuation utilized by the County
    Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
    Operating Tax Rate as defined in subsection (A).
         "Extension Limitation  Ratio":  A  numerical  ratio,
    certified  by the County Clerk, in which the numerator is
    the Base Tax Year's Tax Extension and the denominator  is
    the Preceding Tax Year's Tax Extension.
         "Operating  Tax  Rate":  The  operating  tax rate as
    defined in subsection (A).
    If a school district is subject to property tax extension
limitations as  imposed  under  the  Property  Tax  Extension
Limitation  Law, the State Board of Education shall calculate
the Extension Limitation Equalized Assessed Valuation of that
district.  For  the  1999-2000  school  year,  the  Extension
Limitation  Equalized Assessed Valuation of a school district
as calculated by the State Board of Education shall be  equal
to  the  product  of  the  district's 1996 Equalized Assessed
Valuation and the district's Extension Limitation Ratio.  For
the 2000-2001 school year and each  school  year  thereafter,
the  Extension  Limitation  Equalized Assessed Valuation of a
school district as calculated by the State Board of Education
shall be equal to  the  product  of  the  Equalized  Assessed
Valuation  last  used in the calculation of general State aid
and  the  district's  Extension  Limitation  Ratio.  If   the
Extension Limitation Equalized Assessed Valuation of a school
district  as  calculated under this subsection (G)(3) is less
than  the  district's   equalized   assessed   valuation   as
calculated  pursuant  to  subsections (G)(1) and (G)(2), then
for purposes of calculating the district's general State  aid
for   the  Budget  Year  pursuant  to  subsection  (E),  that
Extension Limitation Equalized Assessed  Valuation  shall  be
utilized   to   calculate   the  district's  Available  Local
Resources under subsection (D).
    (4)  For the purposes of calculating  general  State  aid
for  the  1999-2000  school  year  only, if a school district
experienced  a  triennial  reassessment  on   the   equalized
assessed  valuation  used  in  calculating  its general State
financial aid apportionment for the  1998-1999  school  year,
the  State  Board  of Education shall calculate the Extension
Limitation Equalized Assessed Valuation that would have  been
used to calculate the district's 1998-1999 general State aid.
This amount shall equal the product of the equalized assessed
valuation  used  to  calculate  general  State  aid  for  the
1997-1998 school year and the district's Extension Limitation
Ratio.    If  the  Extension  Limitation  Equalized  Assessed
Valuation of the school district  as  calculated  under  this
paragraph  (4) is less than the district's equalized assessed
valuation utilized in calculating  the  district's  1998-1999
general   State   aid   allocation,   then  for  purposes  of
calculating the district's  general  State  aid  pursuant  to
paragraph  (5)  of  subsection (E), that Extension Limitation
Equalized Assessed Valuation shall be utilized  to  calculate
the district's Available Local Resources.
    (5)  For  school  districts  having  a  majority of their
equalized assessed  valuation  in  any  county  except  Cook,
DuPage,  Kane,  Lake,  McHenry,  or  Will,  if  the amount of
general State aid allocated to the school  district  for  the
1999-2000 school year under the provisions of subsection (E),
(H),  and  (J)  of  this  Section  is less than the amount of
general State aid allocated to the district for the 1998-1999
school year under these subsections, then the  general  State
aid  of the district for the 1999-2000 school year only shall
be increased by the difference between  these  amounts.   The
total payments made under this paragraph (5) shall not exceed
$14,000,000.    Claims  shall  be  prorated  if  they  exceed
$14,000,000.

(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. If, however, (i) the
percentage decrease from the 2 most recent  federal  censuses
in  the  low-income  eligible  pupil  count  of a high school
district with fewer than 400 students exceeds by 75% or  more
the  percentage change in the total low-income eligible pupil
count  of  contiguous  elementary  school  districts,   whose
boundaries  are coterminous with the high school district, or
(ii) a high school district within 2 counties and  serving  5
elementary school districts, whose boundaries are coterminous
with the high school district, has a percentage decrease from
the 2 most recent federal censuses in the low-income eligible
pupil  count  and there is a percentage increase in the total
low-income  eligible  pupil  count  of  a  majority  of   the
elementary  school districts in excess of 50% from the 2 most
recent federal censuses,  then  the  high  school  district's
low-income  eligible  pupil  count  from  the earlier federal
census shall be the number used as  the  low-income  eligible
pupil  count  for  the  high school district, for purposes of
this subsection (H).  The changes made to this paragraph  (1)
by  Public  Act 92-28 this amendatory Act of the 92nd General
Assembly shall apply to supplemental general State aid grants
paid in fiscal year 1999 and in each fiscal  year  thereafter
and  to  any  State  aid  payments  made  in fiscal year 1994
through fiscal year  1998  pursuant  to  subsection  1(n)  of
Section  18-8  of  this  Code  (which was repealed on July 1,
1998), and any high  school  district  that  is  affected  by
Public  Act  92-28  this  amendatory  Act of the 92nd General
Assembly is entitled to a recomputation of  its  supplemental
general  State  aid  grant  or State aid paid in any of those
fiscal years.  This recomputation shall not  be  affected  by
any other funding.
    (2)  Supplemental  general  State  aid  pursuant  to this
subsection  (H)  shall  be  provided  as  follows   for   the
1998-1999, 1999-2000, and 2000-2001 school years only:
         (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 to $1,243, $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 $1,273,  $1,640,  and  $2,050,
    respectively.
    (2.5)  Supplemental  general  State  aid pursuant to this
subsection (H) shall be provided as follows for the 2001-2002
school year and each school year thereafter:
         (a)  For any  school  district  with  a  Low  Income
    Concentration  Level of less than 10%, the grant for each
    school year shall be $355 multiplied by  the  low  income
    eligible pupil count.
         (b)  For  any  school  district  with  a  Low Income
    Concentration Level of at least 10% and  less  than  20%,
    the  grant  for each school year shall be $675 multiplied
    by the low income eligible pupil count.
         (c)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 20% and less than 35%,
    the grant for each school year shall be $1,190 multiplied
    by the low income eligible pupil count.
         (d)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 35% and less than 50%,
    the grant for each school year shall be $1,333 multiplied
    by the low income eligible pupil count.
         (e)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 50% and less than 60%,
    the grant for each school year shall be $1,680 multiplied
    by the low income eligible pupil count.
         (f)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  60% or more, the grant for each
    school year shall be $2,080 multiplied by the low  income
    eligible pupil count.
    (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.
    (3.5)  Claims   for   financial   assistance  under  this
subsection (I) shall not be recomputed  except  as  expressly
provided under this Section.
    (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  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), 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 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 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)  (Blank).

(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  of  schools,  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.   A regional superintendent of schools may contract
with a school district or a public community college district
to operate an  alternative  school.   An  alternative  school
serving  more  than  one  educational  service  region may be
established by the regional superintendents of schools of the
affected educational service regions.  An alternative  school
serving  more  than  one  educational  service  region may be
operated under such terms as the regional superintendents  of
schools of those educational service regions may agree.
    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)  (Blank).
    (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)  (Blank).

(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. 91-24, eff. 7-1-99; 91-93, eff. 7-9-99;  91-96,
eff.  7-9-99;  91-111,  eff.  7-14-99;  91-357, eff. 7-29-99;
91-533,  eff.  8-13-99;  92-7,  eff.  6-29-01;  92-16,   eff.
6-28-01; 92-28, eff. 7-1-01; 92-29, eff. 7-1-01; 92-269, eff.
8-7-01; revised 8-7-01.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly April 24, 2002.
    Approved July 11, 2002.
    Effective July 11, 2002.

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