093_HB1252

 
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 1        AN ACT relating to schools.

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

 4        Section 1.  Short title.  This Act may be  cited  as  the
 5    Local Option School District Income Tax Act.

 6        Section 5.  Definitions.  In this Act:
 7        "Taxable  income" means that portion of the net income of
 8    a taxpayer that is allocable and apportionable to the  school
 9    district  of  which  the  taxpayer  is  a  resident under the
10    provisions  of  this  Act  and  the  regulations  promulgated
11    thereunder.
12        "Net income" means  the  net  income  of  a  taxpayer  as
13    defined  and  as determined and computed for the taxable year
14    under the provisions of the Illinois Income Tax Act.
15        "Taxable year" means the calendar  year,  or  the  fiscal
16    year  ending  in  such calendar year, upon the basis of which
17    taxable income is computed under this Act, and also  includes
18    a fractional part of a year for which income is earned.
19        "Resident"  means  an  individual  who  is  in  a  school
20    district for other than a temporary transitory purpose during
21    the taxable year, or who is domiciled in that school district
22    but is absent therefrom for a temporary or transitory purpose
23    during the taxable year.
24        "Residential   property"   means  (i)  property  that  is
25    "homestead property" within the meaning of Section 15-175  of
26    the  Property Tax Code, and (ii) any other real property that
27    is used solely for residential purposes and that is  improved
28    with  a  structure  that  consists  only  of  not more than 6
29    residential units, at least one of which is occupied  as  the
30    principal  dwelling  place  of  the  owner  or  owners of the
31    property.
 
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 1        Section 10.  Referendum; imposition of tax;  limitations.
 2    The  school  board of each school district, including special
 3    charter districts as defined in Section  1-3  of  the  School
 4    Code  and school districts organized under Article 34 of that
 5    Code, may by proper resolution or shall  upon  receipt  of  a
 6    petition of 5% of the voters who voted in the school district
 7    in  the  last gubernatorial election cause to be submitted to
 8    the voters of the school district  at  the  general  election
 9    held   in  November  of  an  even-numbered  year  or  at  the
10    nonpartisan election held  in  November  of  an  odd-numbered
11    year,   in  accordance  with  the  general  election  law,  a
12    proposition to authorize  an  annual  local  income  tax  for
13    schools,  measured  as  a  non-graduated  percentage  of  the
14    taxable  income  of  individuals resident of the district and
15    imposed only in increments of 0.125%, to be imposed on  every
16    such  individual  on  the  privilege  of earning or receiving
17    income as a resident of the school  district;  provided  that
18    the  tax shall not be imposed on income earned or received by
19    an individual during any period in which the individual is  a
20    nonresident  of the school district even though the income is
21    earned or received in that school district.   The  resolution
22    shall  be  adopted  or the petition shall be filed under this
23    Section not less than 90 days before the date of the November
24    election at which the proposition is to be submitted  to  the
25    voters of the school district.
26        The  resolution  or petition to submit the proposition to
27    the voters of the district shall: (i)  specify  an  estimated
28    initial rate at which the tax is proposed to be imposed; (ii)
29    state  that  the  actual  initial  rate  at  which the tax is
30    imposed shall be computed by the Department  of  Revenue  and
31    shall be adjusted every 12 months thereafter; and (iii) state
32    that  the  actual  initial  rate and the rate as adjusted and
33    imposed for each succeeding 12 month period shall be computed
34    by the Department of Revenue in such manner  as  to  produce,
 
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 1    from  the  tax  imposed  under this Act, aggregate income tax
 2    revenues for distribution to  the  school  district  in  each
 3    calendar  year  that are equal, as near as may be, to the 50%
 4    abatement that the county clerk is required to make  in  each
 5    such  calendar  year, as provided in Section 40, in extending
 6    against residential property located in  the  district  taxes
 7    levied by the district during the preceding calendar year for
 8    the    educational,    operations    and   maintenance,   and
 9    transportation purposes  of  the  district.  The  proposition
10    shall  state the approximate initial rate at which the tax is
11    proposed to be imposed, as  computed  by  the  Department  of
12    Revenue  under  subsection (b) of Section 15, and shall be in
13    substantially the following form:
14             Shall School District  No.  ....  be  authorized  to
15        impose  a  local  income  tax  for  schools at an initial
16        annual rate of approximately ...% on the  taxable  income
17        earned  or  received  by individuals who are residents of
18        the school district, if the actual initial rate at  which
19        the   tax   is   imposed  is  adjusted  every  12  months
20        thereafter, and if the actual initial rate and  the  rate
21        as  adjusted  and  imposed  for  each succeeding 12 month
22        period are computed by the Department of Revenue in  such
23        manner  as  to  produce aggregate income tax revenues for
24        distribution to the school district in each calendar year
25        that are equal, as near as may be,  to  a  50%  reduction
26        that  would  then  have  to be made in each such calendar
27        year in the extension  against  residential  property  of
28        real  property  taxes  levied  by the district during the
29        preceding calendar year for the  educational,  operations
30        and  maintenance,  and  transportation  purposes  of  the
31        district?
32    The  votes  shall be recorded as "Yes" or "No". If a majority
33    of the votes cast at  the  election  on  the  proposition  to
34    impose  the local income tax for schools is in favor thereof,
 
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 1    the school board shall, commencing on March 1 of the calendar
 2    year immediately succeeding the calendar year  in  which  the
 3    election  is  held  and  thereafter, unless such authority is
 4    repealed as provided in Section 25, impose the annual tax  at
 5    an  annual  rate  as  initially  computed and as computed and
 6    adjusted every 12 months  thereafter  by  the  Department  of
 7    Revenue as provided in subsection (c) of Section 15.

 8        Section 15.  Determination of annual rate.
 9        (a)  Upon  a  school  board's adoption of a resolution or
10    receipt of a petition to impose within  the  school  district
11    the local income tax for schools as provided in this Act, the
12    school board shall request the county clerk of each county in
13    which all or any part of the territory of the school district
14    is  located  to  certify,  and  each  such county clerk shall
15    certify, to  the  school  board  and  to  the  Department  of
16    Revenue,  not  later  than  August  1 of the calendar year in
17    which the proposition  to  impose  a  local  income  tax  for
18    schools is to be submitted to the voters of the district at a
19    regular  election  held  in  November of that year, an amount
20    equal to the aggregate amount of  real  property  taxes  that
21    could be extended against the equalized assessed valuation of
22    the  taxable  residential  property  in  the district for the
23    educational, operations and maintenance,  and  transportation
24    purposes of the district (i) if those real property taxes are
25    levied  at  the  maximum  rates  at  which  the  district  is
26    authorized  to  levy  those  taxes for the fiscal year of the
27    district that begins  in  the  calendar  year  in  which  the
28    resolution  is  adopted or the petition is received, and (ii)
29    if  those real property taxes are  extended  at  those  rates
30    against  the  equalized  assessed  valuation  of  the taxable
31    residential property in the district for the calendar year in
32    which the petition is filed or the resolution is adopted.
33        (b) Not more than 15 days after receipt by the Department
 
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 1    of Revenue of the certification or certifications required to
 2    be made by the county clerk or county clerks as  provided  in
 3    subsection  (a),  the Department of Revenue shall compute and
 4    certify to the  school  board  of  the  school  district  the
 5    approximate rate, calculated to the nearest 0.125%, that, had
 6    this  Act been in effect during the calendar year immediately
 7    preceding the  calendar  year  in  which  the  resolution  is
 8    adopted or the petition is received, and had the local income
 9    tax  for  schools  been  imposed and collected under this Act
10    within the district during each of the 12  months  comprising
11    that  immediately preceding calendar year at that approximate
12    rate, would have produced in collected income taxes that were
13    distributable to that school district for that calendar  year
14    an  amount  equal  or  substantially equal to but not greater
15    than 50% of the total amount  or  amounts  certified  by  the
16    county  clerk  or  county  clerks,  as the case may be, under
17    subsection (a).  The approximate  rate  as  computed  by  the
18    Department  of  Revenue  under  this  subsection shall be the
19    approximate initial annual rate that must be  stated  in  the
20    proposition  that  is submitted to the voters of the district
21    under Section 10.
22        (c)  Not later than February  1  of  each  calendar  year
23    during  any part of which the local income tax for schools is
24    or will be imposed in a school district, each county clerk in
25    which all or any part of the school district is located shall
26    compute and certify to the  Department  of  Revenue  and  the
27    school board, as provided in Section 40, the aggregate amount
28    of  the  abatement  required to be made under that Section in
29    each  such  calendar  year  in  the  extension  against   the
30    residential  property located in the district of taxes levied
31    by  the  district  in  the  preceding   calendar   year   for
32    educational,  operations  and maintenance, and transportation
33    purposes.  Within 10 days after the receipt by the Department
34    of Revenue of the annual certification required to be made by
 
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 1    each county clerk in which all or  any  part  of  the  school
 2    district  is located, the Department of Revenue shall compute
 3    the actual initial rate (with respect to the 12 month  period
 4    that  commences  on March 1 of the first calendar year during
 5    which the local income tax for schools is to imposed) or  the
 6    adjusted  rate  (with  respect  to  each  successive 12 month
 7    period), calculated to the  nearest  0.125%,  that,  had  the
 8    local  income  tax  for  schools  been  imposed and collected
 9    within the district during each of the 12  months  comprising
10    the  calendar year immediately preceding the calendar year in
11    which the Department is required to compute  the  rate  under
12    this  subsection,  would  have  produced,  in collected local
13    school income taxes that were  distributable  to  the  school
14    district   for   that  calendar  year,  an  amount  equal  or
15    substantially equal to but not  greater  than  the  aggregate
16    amount  of the abatement computed and certified by the county
17    clerk or county clerks to the Department in the calendar year
18    in  which  the  Department  computes  the  rate  under   this
19    subsection.   The  actual  initial  rate or the adjusted rate
20    that is computed and certified by the Department  of  Revenue
21    in  each  such  calendar  year as provided in this subsection
22    shall be the annual rate at which the local  income  tax  for
23    schools  is  imposed  in the district for the 12 month period
24    that commences on March 1 of the calendar year in  which  the
25    Department computes and certifies the rate.

26        Section  20.   Apportionment  of  income.   The method of
27    allocating and  apportioning  income  earned  in  the  school
28    district  by  individuals  who  earn  only a portion of their
29    income in that district shall be  established  by  rules  and
30    regulations  that  the  Department of Revenue shall adopt for
31    that purpose.  The method so established shall be determined,
32    as near as may be,  in  accordance  with  the  provisions  of
33    Article  III  of  the  Illinois Income Tax Act, governing the
 
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 1    manner in which income and items of deduction  are  allocated
 2    and  apportioned  to  this  State  with  respect to part-year
 3    residents and other persons.

 4        Section 25.  Repeal of  local  income  tax  for  schools;
 5    referendum.   The  school  board  of a school district may by
 6    resolution, or shall upon the petition of 5%  of  the  voters
 7    who  voted  in  the school district in the last gubernatorial
 8    election, cause  to  be  submitted  to  the  voters  of  that
 9    district  in  accordance  with  the  general  election  law a
10    proposition to repeal the local income tax for schools.   The
11    proposition to repeal the local income tax for schools may be
12    submitted  to  the voters of the district only at the general
13    election held in November of an even-numbered year or at  the
14    nonpartisan  election  held  in  November  of an odd-numbered
15    year.  The resolution or petition to submit  the  proposition
16    to  the  voters  of  the  district  shall: (i) state that the
17    proposed repeal of the local income tax  for  schools  is  to
18    take  effect  on  March  1 of the calendar year following the
19    calendar year in which the November election  is  held;  (ii)
20    state that amounts to be collected from the imposition of the
21    local income tax for schools through February of the calendar
22    year  in  which  the  proposed  repeal  of the tax is to take
23    effect  shall  be  distributed  to  the  school  district  as
24    provided in this Act on July 1 of  that  calendar  year;  and
25    (iii) state that when the proposed repeal of the local income
26    tax  for schools takes effect, the extension of real property
27    taxes against residential property thereafter levied  by  the
28    school   district   for   the   educational,  operations  and
29    maintenance, and  transportation  purposes  of  the  district
30    shall  no  longer be abated under the provisions of this Act.
31    The proposition shall be in substantially the following form:
32             Shall the local  income  tax  for  schools  that  is
33        imposed by School District No. .... be repealed effective
 
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 1        March  1,  ....  if,  when  that repeal takes effect, the
 2        extension of the real property taxes against  residential
 3        property thereafter levied by the school district for its
 4        educational,     operations    and    maintenance,    and
 5        transportation purposes will no longer  be  reduced  each
 6        year by 50%?
 7    The  votes  shall be recorded as "Yes" or "No". If a majority
 8    of the votes cast on the  proposition  to  repeal  the  local
 9    income  tax  for  schools is in favor thereof, that tax shall
10    not be imposed on or after  March  1  of  the  calendar  year
11    following the year in which the election is held unless again
12    authorized as provided in Section 10.

13        Section 30.  Collection.
14        (a)  Any  tax  authorized under this Act shall be imposed
15    only on income earned on or after March  1  of  the  calendar
16    year  following  the  referendum  held  in  November  of  the
17    immediately  preceding  calendar  year at which imposition of
18    the tax is authorized. The tax so imposed shall  be  paid  by
19    the  taxpayer  on  or  before the fifteenth day of the fourth
20    month following the close of each taxable year  during  which
21    the  tax  is imposed and shall be submitted to the Department
22    of  Revenue  along  with  the  taxpayer's  return  under  the
23    Illinois Income Tax Act. The tax shall be  collected  by  the
24    Department  of  Revenue.  The certification of the results of
25    the referendum authorizing the tax  by  the  proper  election
26    officials,  accompanied by the resolution of the school board
27    imposing the tax as authorized and  the  computation  by  the
28    Department  of  Revenue  in accordance with subsection (c) of
29    Section 15 of the actual  initial  rate  of  the  tax  to  be
30    imposed under this Act, shall constitute the authority of the
31    Department  of  Revenue  to  collect  the  tax.   Whenever  a
32    proposition  to  authorize imposition of the local income tax
33    for schools is approved by the voters of any school  district
 
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 1    as  provided  in this Act, the county clerk of each county in
 2    which that school  district  is  located  shall  certify  the
 3    territorial  boundaries  of the district to the Department of
 4    Revenue, and the Department shall  (i)  promptly  notify  all
 5    individuals  resident  of  the  district  who have previously
 6    filed a return with respect  to  the  taxes  imposed  by  the
 7    Illinois Income Tax Act that the local income tax for schools
 8    will  be  imposed within the district beginning on March 1 of
 9    the calendar year immediately following the calendar year  in
10    which  the election authorizing imposition of the tax is held
11    and the manner in which the tax is to  be  collected  by  and
12    paid to the Department of Revenue, and (ii) publish notice in
13    a  newspaper published in the school district or, if there is
14    no such newspaper, then  in  a  newspaper  published  in  the
15    county  in  which  the  school district is located and having
16    circulation in the district, that the local  income  tax  for
17    schools will be imposed within the district and the manner in
18    which  the  tax  is  to  be  collected  by  and  paid  to the
19    Department of Revenue. In addition, not later than  the  15th
20    day of February of each calendar year in which the Department
21    computes and certifies the rate at which the local income tax
22    for  schools  is  to  be imposed for the 12 month period that
23    commences on March 1 of that calendar  year,  the  Department
24    shall publish notice in a newspaper published in the district
25    (or  if  there  is  no  such  newspaper,  then in a newspaper
26    published in the county in which the district is located  and
27    having  circulation  in  the  district) of the actual initial
28    rate or adjusted rate, as the case may be, at which  the  tax
29    will  be  imposed  within  the  district  during the 12 month
30    period commencing on that March 1. Any tax imposed under this
31    Act shall be collected by  and  paid  to  the  Department  of
32    Revenue  at  the  same  time and in the same manner, with the
33    same  withholding  and  estimated  payment  requirements  and
34    subject  to  the  same  assessment  and  refund   procedures,
 
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 1    penalties,  and  interest  as the tax imposed by the Illinois
 2    Income Tax Act. Except as provided in subsection (b) of  this
 3    Section,  the  Department of Revenue shall forthwith pay over
 4    to the State Treasurer, ex officio, as  trustee,  all  moneys
 5    received  by  it on behalf of the school district  under this
 6    Section, to be deposited into  a  special  account  that  the
 7    State  Treasurer  and  State  Comptroller shall establish and
 8    maintain for the benefit of that school district in the Local
 9    Option School District Income Tax Fund, a special  fund  that
10    is  hereby  created  in  the  State  treasury, to be held and
11    disbursed by the State Treasurer  and  State  Comptroller  as
12    provided in this Section and Section 35.  All interest earned
13    from  the  investment of any moneys from time to time held in
14    the Local Option School District  Income  Tax  Fund  and  any
15    special  accounts  established in that Fund shall be retained
16    by the State Treasurer to be applied toward costs incurred by
17    the Department of Revenue in administering and enforcing this
18    Act.
19        (b)  The Local Option School District Income  Tax  Refund
20    Fund is hereby created in the State Treasury.  The Department
21    of   Revenue  shall  deposit  a  percentage  of  the  amounts
22    collected from the tax imposed under this Act by  any  school
23    district  into a special account that the State Treasurer and
24    State Comptroller shall establish  and  maintain  within  the
25    Local  Option  School District Income Tax Refund Fund for the
26    purpose of paying refunds resulting from overpayment  of  tax
27    liability   under  this  Act  with  respect  to  that  school
28    district.  The Department  of  Revenue  shall  determine  the
29    percentage  of  the  amounts  collected  from the tax imposed
30    under this Act by any school district that is to be deposited
31    into the special  account  maintained  in  the  Local  Option
32    School  District  Income  Tax  Refund  Fund  to  pay  refunds
33    resulting  from  overpayment  of tax liability under this Act
34    with respect to that school district and shall  certify  that
 
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 1    percentage  to  the Comptroller, all in accordance with rules
 2    adopted by the Department of Revenue  for  purposes  of  this
 3    Section.   Money  in  the  special  account maintained in the
 4    Local Option School District  Income  Tax  Refund  Fund  with
 5    respect  to any school district shall be expended exclusively
 6    for the purpose of paying refunds resulting from  overpayment
 7    of  tax  liability under this Act with respect to that school
 8    district.  The Director of Revenue  shall  order  payment  of
 9    refunds  resulting  from  overpayment  of tax liability under
10    this Act from the special account maintained with respect  to
11    a  school district in the Local Option School District Income
12    Tax Refund Fund only to the  extent  that  amounts  collected
13    pursuant  to  this  Act  for  that  school district have been
14    deposited into and retained in that  special  account.   This
15    Section   shall  constitute  an  irrevocable  and  continuing
16    appropriation from the Local Option  School  District  Income
17    Tax  Refund  Fund  and  the  special accounts established and
18    maintained therein for the purpose of paying refunds upon the
19    order of the Director  of  Revenue  in  accordance  with  the
20    provisions of this Section.
21        (c)  The  Department  of  Revenue  shall  promulgate such
22    rules and regulations as may be necessary  to  implement  the
23    provisions of this Act.

24        Section  35.   Certification,  disbursement,  and  use of
25    funds.
26        (a)  On July 1  of  each  calendar  year,  or  the  first
27    following business day if July 1 falls on a Saturday, Sunday,
28    or  holiday,  the  Department of Revenue shall certify to the
29    State Treasurer and State  Comptroller  the  disbursement  of
30    stated  sums  of money to each school district in which a tax
31    authorized by this Act has been imposed and collected  during
32    the preceding calendar year.  On each certification date, the
33    amount  to  be  certified  for  disbursement from the special
 
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 1    account maintained for a school district in the Local  Option
 2    School District Income Tax Fund shall be the amount deposited
 3    into  that  special account from the tax collected under this
 4    Act for that school district during the 12 month period  that
 5    commences  on  March  1 of the immediately preceding calendar
 6    year, reduced by an amount equal  to  2%  of  the  amount  so
 7    deposited  into  that  special  account to be retained by the
 8    State Treasurer and applied toward the costs incurred by  the
 9    Department  of  Revenue  in  administering and enforcing this
10    Act.
11        (b)  At  the  time  of  each  disbursement  to  a  school
12    district, the Department of Revenue shall prepare and certify
13    to the Comptroller the amount retained by the State Treasurer
14    as provided in this Section and the interest earned from  the
15    investment  of  moneys  from  time  to time held in the Local
16    Option School  District  Income  Tax  Fund  and  any  special
17    accounts established therein as provided in subsection (a) of
18    Section  30  to  be  applied toward the costs incurred by the
19    Department in  administering  and  enforcing  this  Act,  the
20    amount so retained and the interest so earned to be paid into
21    the General Revenue Fund of the State Treasury.
22        (c)  Within  5 days after receipt by the Comptroller from
23    the  Department  of   Revenue   of   the   certification   of
24    disbursements  to  the  school  districts and General Revenue
25    Fund as provided in this Section, the Comptroller shall cause
26    the warrants to  be  drawn  for  the  respective  amounts  in
27    accordance    with    the   directions   contained   in   the
28    certification.
29        (d)  If for any reason the General Assembly fails to make
30    an appropriation sufficient to pay each school  district  the
31    full  amount  required to be disbursed and paid to it by this
32    Section and any  other  provision  of  this  Act,  then  this
33    Section   shall  constitute  an  irrevocable  and  continuing
34    appropriation of all amounts necessary for that  purpose  and
 
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 1    the irrevocable and continuing authority for and direction to
 2    the  Comptroller  and  Treasurer  of  the  State  to make the
 3    necessary  transfers  out  of  and  disbursements  from   the
 4    revenues and funds of the State for that purpose.
 5        (e)  The  school  board  of  each  school  district  that
 6    receives a disbursement under this Act shall apply and credit
 7    the  moneys  so  disbursed to the educational, operations and
 8    maintenance, and transportation  funds  of  the  district  in
 9    proportion  to  the  ratio  that the amount that the required
10    abatement under Section  40  in  the  extension  against  the
11    residential  property  located  in  the  district, during the
12    disbursement year, of  real  property  taxes  levied  by  the
13    district  in  each  of  those  3 funds bears to the aggregate
14    amount of the required abatement under that  Section  in  the
15    extension  against  such  residential  property,  during  the
16    disbursement  year,  of  real  property  taxes  levied by the
17    district in all 3 of those funds.

18        Section 40.  Abatement  of  extension  of  real  property
19    taxes on residential property.
20        (a)  During each calendar year in which a disbursement is
21    required  to be made under Section 35 to a school district of
22    moneys credited to a  special  account  maintained  for  that
23    district in the Local Option School District Income Tax Fund,
24    the   county   clerk   shall   abate  the  extension  against
25    residential property located in the district of taxes  levied
26    by  the district for educational, operations and maintenance,
27    and transportation purposes.  If any such school district  is
28    located  in more than one county, the amount of the extension
29    of real property taxes levied for educational, operations and
30    maintenance, and transportation purposes against  residential
31    property  situated within that district to be so abated shall
32    be apportioned by the county clerks of those  counties  based
33    upon the ratio of the aggregate assessed value of the taxable
 
                            -14-     LRB093 09547 NHT 09784 b
 1    residential  property  of  the  district in each such county.
 2    Before any abatement of the extension of real property  taxes
 3    levied  for  educational,  operations  and  maintenance,  and
 4    transportation purposes against residential property situated
 5    within a school district is made as provided in this Section,
 6    the  county  clerk shall determine whether the amount of each
 7    of  the  educational,   operations   and   maintenance,   and
 8    transportation   tax  levies  that  has  been  certified  for
 9    extension is based on a rate at which the district making the
10    certification is authorized by statute or referendum to  levy
11    that  tax,  shall  disregard any excess, and shall extend the
12    levy of that tax in accordance with  the  provisions  of  the
13    Property  Tax  Code, subject to abatement of the extension as
14    provided in this Section.
15        (b)  Not later than February 1 of each calendar  year  in
16    which the extension against residential property located in a
17    school   district   of  taxes  levied  by  the  district  for
18    educational, operations and maintenance,  and  transportation
19    purposes  is  required to be abated under subsection (a), the
20    county clerk shall determine  the  aggregate  amount  of  the
21    required  abatement  and  shall  certify  that  amount to the
22    Department of Revenue and the school  board.   The  aggregate
23    amount  of  the required abatement in each such calendar year
24    shall be equal to 50% of that portion of the total  levy  for
25    educational,  operations  and maintenance, and transportation
26    purposes certified by the school district to the county clerk
27    in the preceding calendar  year  for  extension  against  all
28    taxable  property  in  the  district  that  the  county clerk
29    determines would, but for the abatement required  under  this
30    Section,  be extended against the equalized assessed value of
31    the taxable residential property located in the district.  In
32    extending taxes levied for the  educational,  operations  and
33    maintenance,   and  transportation  purposes  of  the  school
34    district in the year in which the abatement is required to be
 
                            -15-     LRB093 09547 NHT 09784 b
 1    made, the county clerk shall apportion the  aggregate  amount
 2    of  the  required  abatement among the extensions made of the
 3    educational, operations and maintenance,  and  transportation
 4    taxes  levied  by  the district based upon the ratio that the
 5    amount certified for levy for each of those 3 purposes  bears
 6    to the aggregate amount certified for levy for all 3 of those
 7    purposes.   In  certifying  to the school board the aggregate
 8    amount of the required  abatement,  the  county  clerk  shall
 9    further  certify  the  amount by which each of the respective
10    levies made for the educational, operations and  maintenance,
11    and transportation purposes of the district will be reduced.

12        Section  45.  Property tax rates.  The provisions of this
13    Act  for  abatement  in  the  extension  against  residential
14    property of real property taxes levied  by  school  districts
15    for    educational,    operations    and   maintenance,   and
16    transportation purposes do not constitute and  shall  not  be
17    construed to be a limitation on or a reduction in the rate at
18    which  any  school  district  now  is  or  hereafter  may  be
19    authorized  by  statute  or  referendum to levy taxes for any
20    lawful school purpose.

21        Section 50.  Penalties.  Any person who is subject to the
22    provisions of this Act and who  willfully  fails  to  file  a
23    return,  or  who willfully violates any rule or regulation of
24    the  Department  of  Revenue  for   the   administration   or
25    enforcement  of  this  Act,  or who willfully attempts in any
26    other manner to evade or defeat any tax imposed by  this  Act
27    or  the payment thereof, shall in addition to other penalties
28    be guilty of a Class B misdemeanor.  A  prosecution  for  any
29    violation  of this Act may be commenced within 3 years of the
30    commission of that act.

31        Section 100. The State Finance Act is amended  by  adding
 
                            -16-     LRB093 09547 NHT 09784 b
 1    Sections 5.595 and 5.596 as follows:

 2        (30 ILCS 105/5.595 new)
 3        Sec.  5.595.  The Local Option School District Income Tax
 4    Fund.

 5        (30 ILCS 105/5.596 new)
 6        Sec. 5.596.  The Local Option School District Income  Tax
 7    Refund Fund.

 8        Section  105.  The  Illinois Income Tax Act is amended by
 9    changing Section 512 as follows:

10        (35 ILCS 5/512) (from Ch. 120, par. 5-512)
11        Sec. 512.  School  district  data;  local  option  school
12    income  tax; net income attributable to period prior to March
13    1 and to period on and after March 1 of a taxable year.
14        (a) All individual income tax return forms for tax  years
15    ending  December  31,  1986  through  December 30, 1995 shall
16    contain an appropriate  space  in  which  the  taxpayer  must
17    indicate  either  (i)  the name and number of the high school
18    district in which they reside on  the  date  such  return  is
19    filed,  or  (ii)  the  name  and  number  of  the unit school
20    district in which they reside on  the  date  such  return  is
21    filed.   Failure  of  the taxpayer to insert such information
22    shall not invalidate the return.
23        (b)  For all tax  years  ending  December  31,  1995  and
24    thereafter,  the  Department shall provide the State Board of
25    Education with information on individual income tax  receipts
26    by  school district from the data collected by the Geographic
27    Information System maintained by the Department.
28        (c)  All individual income tax forms for tax years ending
29    on or after December 31, 2004 shall contain appropriate space
30    for a taxpayer who resides  within  a  school  district  that
 
                            -17-     LRB093 09547 NHT 09784 b
 1    imposes a local income tax for schools under the Local Option
 2    School  District Income Tax Act to calculate the tax due from
 3    the taxpayer under that Act.  The Department  shall  provide,
 4    with  the return, instructions for calculating and paying the
 5    local income tax for schools as provided in the Local  Option
 6    School District Income Tax Act.
 7        (d)  With respect to each taxable year of a resident of a
 8    school  district in which the local income tax for schools is
 9    imposed under the Local Option  School  District  Income  Tax
10    Act,  for  purposes  of computing the tax due from a resident
11    under that Act, net income for the period before March  1  of
12    the  taxable  year  shall be that amount which bears the same
13    ratio to the resident's net income  for  the  entire  taxable
14    year  as the number of days in that year before March 1 bears
15    to the total number of days in that year, and net income  for
16    the  period  of  the  taxable year that begins on March 1 and
17    ends on the last day of the taxable year shall be that amount
18    which bears the same ratio to the resident's net  income  for
19    the  entire  taxable  year as the number of days in that year
20    beginning March 1 bears to the total number of days  in  that
21    year.   As used in this subsection, the terms "taxable year",
22    "resident", and "net income" have  the  meaning  ascribed  to
23    them  by Section 5 of the Local Option School District Income
24    Tax Act.
25    (Source: P.A. 89-21, eff. 7-1-95.)

26        Section 110. The Property Tax Code is amended by changing
27    Sections 18-45  and  18-185  and  adding  Section  18-182  as
28    follows:

29        (35 ILCS 200/18-45)
30        Sec.  18-45.  Computation  of  rates.  Except as provided
31    below, each county clerk shall  estimate  and  determine  the
32    rate  per  cent upon the equalized assessed valuation for the
 
                            -18-     LRB093 09547 NHT 09784 b
 1    levy year of the property in the  county's  taxing  districts
 2    and  special  service areas, as established under Article VII
 3    of the Illinois Constitution, so that the rate will  produce,
 4    within the proper divisions of that county, not less than the
 5    net  amount  that  will  be  required  by the county board or
 6    certified to the county clerk according  to  law.   Prior  to
 7    extension,  the  county  clerk  shall  determine  the maximum
 8    amount of tax authorized to be levied by any statute.  If the
 9    amount of any tax certified to the county clerk for extension
10    exceeds the maximum, the clerk shall extend only the  maximum
11    allowable levy.
12        The  county  clerk shall exclude from the total equalized
13    assessed valuation, whenever estimating  and  determining  it
14    under  this  Section  and  Sections 18-50 through 18-105, the
15    equalized assessed valuation in the percentage which has been
16    agreed to by each taxing district, of any property or portion
17    thereof within an Enterprise Zone upon which an abatement  of
18    taxes   was   made  under  Section  18-170.   However,  if  a
19    municipality  has  adopted  tax  increment  financing   under
20    Division  74.4  of Article 11 of the Illinois Municipal Code,
21    the county  clerk  shall  estimate  and  determine  rates  in
22    accordance  with Sections 11-74.4-7 through 11-74.4-9 of that
23    Act.  Beginning  on  January  1,  1998  and  thereafter,  the
24    equalized assessed value of all property for the  computation
25    of  the  amount to be extended within a county with 3,000,000
26    or more inhabitants shall be the sum  of  (i)  the  equalized
27    assessed  value  of  such  property  for the year immediately
28    preceding the levy year as established by the assessment  and
29    equalization  process  for  the year immediately prior to the
30    levy year, (ii) the equalized assessed value of any  property
31    that qualifies as new property, as defined in Section 18-185,
32    or  annexed  property,  as defined in Section 18-225, for the
33    current levy year, and  (iii)  any  recovered  tax  increment
34    value,  as  defined  in  Section 18-185, for the current levy
 
                            -19-     LRB093 09547 NHT 09784 b
 1    year, less the equalized assessed value of any property  that
 2    qualifies  as  disconnected  property,  as defined in Section
 3    18-225, for the current levy year.
 4        The provisions of this  Section  and  the  authority  and
 5    responsibility  of the county clerks hereunder are subject to
 6    the provisions of Section 18-182 of the Property Tax Code and
 7    Section 40 of the Local Option School District Income Tax Act
 8    relative  to  abatement  in  the extension of taxes levied by
 9    school districts in which the tax  authorized  by  the  Local
10    Option School District Income Tax Act is imposed, levied, and
11    collected.
12    (Source: P.A. 90-320, eff. 1-1-98.)

13        (35 ILCS 200/18-182 new)
14        Sec.  18-182.  Abatement;  local  income tax for schools.
15    With respect to a school district in which the  local  income
16    tax  for  schools  is  imposed  under the Local Option School
17    District Income Tax Act, the county  clerk  of  a  county  in
18    which  all or any part of the district is located shall abate
19    the extension against residential  property  located  in  the
20    district  and  county  of  taxes  levied  by the district for
21    educational, operations and maintenance,  and  transportation
22    purposes  as  provided  in and subject to the requirements of
23    Section 40 of that Act.  As used in this  Section,  the  term
24    "residential  property"  has  the  meaning  ascribed to it in
25    Section 5 of the Local Option School District Income Tax Act.

26        (35 ILCS 200/18-185)
27        Sec. 18-185.  Short title; definitions.  This Division  5
28    may  be  cited  as the Property Tax Extension Limitation Law.
29    As used in this Division 5:
30        "Consumer Price Index" means the Consumer Price Index for
31    All Urban Consumers for all items  published  by  the  United
32    States Department of Labor.
 
                            -20-     LRB093 09547 NHT 09784 b
 1        "Extension  limitation" means (a) the lesser of 5% or the
 2    percentage increase in the Consumer Price  Index  during  the
 3    12-month  calendar  year  preceding  the levy year or (b) the
 4    rate of increase approved by voters under Section 18-205.
 5        "Affected county" means a county  of  3,000,000  or  more
 6    inhabitants  or  a county contiguous to a county of 3,000,000
 7    or more inhabitants.
 8        "Taxing  district"  has  the  same  meaning  provided  in
 9    Section 1-150, except as otherwise provided in this  Section.
10    For  the 1991 through 1994 levy years only, "taxing district"
11    includes only each non-home rule taxing district  having  the
12    majority  of  its  1990  equalized  assessed value within any
13    county or counties contiguous to a county with  3,000,000  or
14    more inhabitants.  Beginning with the 1995 levy year, "taxing
15    district"  includes  only  each non-home rule taxing district
16    subject to this Law  before  the  1995  levy  year  and  each
17    non-home  rule taxing district not subject to this Law before
18    the 1995 levy year having the majority of its 1994  equalized
19    assessed  value in an affected county or counties.  Beginning
20    with the levy year in which this Law becomes applicable to  a
21    taxing  district  as  provided  in  Section  18-213,  "taxing
22    district"  also  includes those taxing districts made subject
23    to this Law as provided in Section 18-213.
24        "Aggregate extension" for taxing districts to which  this
25    Law  applied  before  the  1995  levy  year  means the annual
26    corporate extension for the taxing district and those special
27    purpose extensions that are  made  annually  for  the  taxing
28    district,  excluding special purpose extensions: (a) made for
29    the taxing district to pay interest or principal  on  general
30    obligation  bonds  that were approved by referendum; (b) made
31    for any taxing district  to  pay  interest  or  principal  on
32    general  obligation  bonds issued before October 1, 1991; (c)
33    made for any taxing district to pay interest or principal  on
34    bonds  issued  to  refund  or  continue to refund those bonds
 
                            -21-     LRB093 09547 NHT 09784 b
 1    issued before October  1,  1991;  (d)  made  for  any  taxing
 2    district  to  pay  interest  or  principal on bonds issued to
 3    refund or continue to refund bonds issued  after  October  1,
 4    1991  that  were  approved  by  referendum;  (e) made for any
 5    taxing district to pay interest or principal on revenue bonds
 6    issued before October 1, 1991 for payment of which a property
 7    tax levy or the full faith and credit of the  unit  of  local
 8    government  is  pledged;  however,  a  tax for the payment of
 9    interest or principal on those bonds shall be made only after
10    the governing body of the unit of local government finds that
11    all other sources for payment are insufficient to make  those
12    payments;  (f)  made for payments under a building commission
13    lease when the lease payments are for the retirement of bonds
14    issued by the commission before October 1, 1991, to  pay  for
15    the  building  project;  (g)  made  for  payments  due  under
16    installment  contracts  entered  into before October 1, 1991;
17    (h) made for payments of  principal  and  interest  on  bonds
18    issued  under the Metropolitan Water Reclamation District Act
19    to finance construction projects initiated before October  1,
20    1991;  (i)  made  for  payments  of principal and interest on
21    limited  bonds,  as  defined  in  Section  3  of  the   Local
22    Government  Debt  Reform  Act, in an amount not to exceed the
23    debt service extension base less the  amount  in  items  (b),
24    (c),  (e),  and  (h)  of  this  definition for non-referendum
25    obligations, except obligations initially issued pursuant  to
26    referendum;  (j)  made for payments of principal and interest
27    on bonds issued under Section 15 of the Local Government Debt
28    Reform  Act;  and  (k)  made  by  a  school   district   that
29    participates  in  the  Special  Education  District  of  Lake
30    County,  created  by  special education joint agreement under
31    Section 10-22.31 of the  School  Code,  for  payment  of  the
32    school  district's  share  of  the  amounts  required  to  be
33    contributed  by the Special Education District of Lake County
34    to the Illinois Municipal Retirement Fund under Article 7  of
 
                            -22-     LRB093 09547 NHT 09784 b
 1    the  Illinois Pension Code; the amount of any extension under
 2    this item (k) shall be certified by the  school  district  to
 3    the  county  clerk;  and  (l)  made  by  a school district to
 4    replace revenues lost as a result of the repeal of the  local
 5    income  tax  for  schools as formerly imposed by the district
 6    under the Local Option School District Income Tax Act.
 7        "Aggregate extension" for the taxing districts  to  which
 8    this  Law  did  not  apply  before the 1995 levy year (except
 9    taxing districts subject  to  this  Law  in  accordance  with
10    Section  18-213) means the annual corporate extension for the
11    taxing district and those special purpose extensions that are
12    made annually for  the  taxing  district,  excluding  special
13    purpose  extensions:  (a) made for the taxing district to pay
14    interest or principal on general obligation bonds  that  were
15    approved  by  referendum; (b) made for any taxing district to
16    pay interest or principal on general obligation bonds  issued
17    before March 1, 1995; (c) made for any taxing district to pay
18    interest  or  principal on bonds issued to refund or continue
19    to refund those bonds issued before March 1, 1995;  (d)  made
20    for any taxing district to pay interest or principal on bonds
21    issued  to  refund  or  continue to refund bonds issued after
22    March 1, 1995 that were approved by referendum; (e) made  for
23    any  taxing  district to pay interest or principal on revenue
24    bonds issued before March 1, 1995  for  payment  of  which  a
25    property tax levy or the full faith and credit of the unit of
26    local  government  is pledged; however, a tax for the payment
27    of interest or principal on those bonds shall  be  made  only
28    after  the  governing  body  of  the unit of local government
29    finds that all other sources for payment are insufficient  to
30    make  those  payments; (f) made for payments under a building
31    commission  lease  when  the  lease  payments  are  for   the
32    retirement  of bonds issued by the commission before March 1,
33    1995 to pay for the building project; (g) made  for  payments
34    due  under installment contracts entered into before March 1,
 
                            -23-     LRB093 09547 NHT 09784 b
 1    1995; (h) made for payments  of  principal  and  interest  on
 2    bonds   issued   under  the  Metropolitan  Water  Reclamation
 3    District  Act  to  finance  construction  projects  initiated
 4    before October 1, 1991; (i) made for  payments  of  principal
 5    and interest on limited bonds, as defined in Section 3 of the
 6    Local  Government Debt Reform Act, in an amount not to exceed
 7    the debt service extension base less the amount in items (b),
 8    (c),  and  (e)  of   this   definition   for   non-referendum
 9    obligations,  except obligations initially issued pursuant to
10    referendum and bonds described  in  subsection  (h)  of  this
11    definition;  (j)  made for payments of principal and interest
12    on bonds issued under Section 15 of the Local Government Debt
13    Reform Act; (k) made for payments of principal  and  interest
14    on  bonds  authorized  by  Public Act 88-503 and issued under
15    Section 20a of the Chicago Park District Act for aquarium  or
16    museum  projects;  (l)  made  for  payments  of principal and
17    interest on bonds authorized by Public Act 87-1191 and issued
18    under Section 42 of the Cook County Forest Preserve  District
19    Act  for  zoological  park projects; and (m) made pursuant to
20    Section 34-53.5 of the School Code, whether  levied  annually
21    or not; and (n) made by a school district to replace revenues
22    lost  as  a  result of the repeal of the local income tax for
23    schools as formerly imposed by the district under  the  Local
24    Option School District Income Tax Act.
25        "Aggregate  extension"  for all taxing districts to which
26    this Law applies in accordance with  Section  18-213,  except
27    for  those  taxing  districts  subject  to  paragraph  (2) of
28    subsection (e) of Section 18-213, means the annual  corporate
29    extension  for  the taxing district and those special purpose
30    extensions that are made annually for  the  taxing  district,
31    excluding special purpose extensions: (a) made for the taxing
32    district  to  pay interest or principal on general obligation
33    bonds that were approved by  referendum;  (b)  made  for  any
34    taxing  district  to  pay  interest  or  principal on general
 
                            -24-     LRB093 09547 NHT 09784 b
 1    obligation  bonds  issued  before  the  date  on  which   the
 2    referendum  making this Law applicable to the taxing district
 3    is held; (c) made for any taxing district to pay interest  or
 4    principal  on  bonds  issued  to refund or continue to refund
 5    those bonds issued before the date on  which  the  referendum
 6    making  this  Law  applicable to the taxing district is held;
 7    (d) made for any taxing district to pay interest or principal
 8    on bonds issued to refund or continue to refund bonds  issued
 9    after  the  date  on  which  the  referendum  making this Law
10    applicable to the taxing district is held if the  bonds  were
11    approved by referendum after the date on which the referendum
12    making  this  Law  applicable to the taxing district is held;
13    (e) made for any taxing district to pay interest or principal
14    on  revenue  bonds  issued  before  the  date  on  which  the
15    referendum making this Law applicable to the taxing  district
16    is  held for payment of which a property tax levy or the full
17    faith and credit of the unit of local government is  pledged;
18    however,  a  tax  for the payment of interest or principal on
19    those bonds shall be made only after the  governing  body  of
20    the unit of local government finds that all other sources for
21    payment are insufficient to make those payments; (f) made for
22    payments  under  a  building  commission lease when the lease
23    payments are for  the  retirement  of  bonds  issued  by  the
24    commission  before  the  date  on which the referendum making
25    this Law applicable to the taxing district is held to pay for
26    the  building  project;  (g)  made  for  payments  due  under
27    installment contracts entered into before the date  on  which
28    the  referendum  making  this  Law  applicable  to the taxing
29    district is held; (h) made  for  payments  of  principal  and
30    interest  on  limited  bonds,  as defined in Section 3 of the
31    Local Government Debt Reform Act, in an amount not to  exceed
32    the debt service extension base less the amount in items (b),
33    (c),   and   (e)   of   this  definition  for  non-referendum
34    obligations, except obligations initially issued pursuant  to
 
                            -25-     LRB093 09547 NHT 09784 b
 1    referendum;  (i)  made for payments of principal and interest
 2    on bonds issued under Section 15 of the Local Government Debt
 3    Reform Act; and (j) made for a qualified airport authority to
 4    pay interest or principal on general obligation bonds  issued
 5    for the purpose of paying obligations due under, or financing
 6    airport  facilities  required  to  be  acquired, constructed,
 7    installed or equipped pursuant  to,  contracts  entered  into
 8    before  March  1,  1996  (but not including any amendments to
 9    such a contract taking effect on or after that date); and (k)
10    made by a school district  to  replace  revenues  lost  as  a
11    result  of  the repeal of the local income tax for schools as
12    formerly imposed by  the  district  under  the  Local  Option
13    School District Income Tax Act.
14        "Aggregate  extension"  for all taxing districts to which
15    this  Law  applies  in  accordance  with  paragraph  (2)   of
16    subsection  (e)  of Section 18-213 means the annual corporate
17    extension for the taxing district and those  special  purpose
18    extensions  that  are  made annually for the taxing district,
19    excluding special purpose extensions: (a) made for the taxing
20    district to pay interest or principal on  general  obligation
21    bonds  that  were  approved  by  referendum; (b) made for any
22    taxing district to  pay  interest  or  principal  on  general
23    obligation  bonds  issued  before  the effective date of this
24    amendatory Act of 1997; (c) made for any taxing  district  to
25    pay  interest  or  principal  on  bonds  issued  to refund or
26    continue to refund those bonds issued  before  the  effective
27    date  of this amendatory Act of 1997; (d) made for any taxing
28    district to pay interest or  principal  on  bonds  issued  to
29    refund or continue to refund bonds issued after the effective
30    date  of  this  amendatory  Act  of  1997  if  the bonds were
31    approved by referendum  after  the  effective  date  of  this
32    amendatory  Act  of 1997; (e) made for any taxing district to
33    pay interest or principal on revenue bonds issued before  the
34    effective  date of this amendatory Act of 1997 for payment of
 
                            -26-     LRB093 09547 NHT 09784 b
 1    which a property tax levy or the full faith and credit of the
 2    unit of local government is pledged; however, a tax  for  the
 3    payment of interest or principal on those bonds shall be made
 4    only after the governing body of the unit of local government
 5    finds  that all other sources for payment are insufficient to
 6    make those payments; (f) made for payments under  a  building
 7    commission   lease  when  the  lease  payments  are  for  the
 8    retirement of bonds  issued  by  the  commission  before  the
 9    effective  date of this amendatory Act of 1997 to pay for the
10    building project; (g) made for payments due under installment
11    contracts entered into before  the  effective  date  of  this
12    amendatory  Act  of  1997; (h) made for payments of principal
13    and interest on limited bonds, as defined in Section 3 of the
14    Local Government Debt Reform Act, in an amount not to  exceed
15    the debt service extension base less the amount in items (b),
16    (c),   and   (e)   of   this  definition  for  non-referendum
17    obligations, except obligations initially issued pursuant  to
18    referendum;  (i)  made for payments of principal and interest
19    on bonds issued under Section 15 of the Local Government Debt
20    Reform Act; and (j) made for a qualified airport authority to
21    pay interest or principal on general obligation bonds  issued
22    for the purpose of paying obligations due under, or financing
23    airport  facilities  required  to  be  acquired, constructed,
24    installed or equipped pursuant  to,  contracts  entered  into
25    before  March  1,  1996  (but not including any amendments to
26    such a contract taking effect on or after that date); and (k)
27    made by a school district  to  replace  revenues  lost  as  a
28    result  of  the repeal of the local income tax for schools as
29    formerly imposed by  the  district  under  the  Local  Option
30    School District Income Tax Act.
31        "Debt  service  extension  base" means an amount equal to
32    that portion of the extension for a taxing district  for  the
33    1994 levy year, or for those taxing districts subject to this
34    Law  in  accordance  with  Section  18-213,  except for those
 
                            -27-     LRB093 09547 NHT 09784 b
 1    subject to paragraph (2) of subsection (e) of Section 18-213,
 2    for the levy year in which the  referendum  making  this  Law
 3    applicable  to  the  taxing  district  is  held, or for those
 4    taxing districts subject  to  this  Law  in  accordance  with
 5    paragraph  (2)  of  subsection  (e) of Section 18-213 for the
 6    1996 levy year, constituting  an  extension  for  payment  of
 7    principal and interest on bonds issued by the taxing district
 8    without referendum, but not including (i) bonds authorized by
 9    Public Act 88-503 and issued under Section 20a of the Chicago
10    Park  District  Act  for  aquarium  and museum projects; (ii)
11    bonds issued under Section 15 of the  Local  Government  Debt
12    Reform  Act;  or (iii) refunding obligations issued to refund
13    or  to  continue  to  refund  obligations  initially   issued
14    pursuant  to  referendum. The debt service extension base may
15    be established or increased as provided under Section 18-212.
16        "Special purpose extensions" include, but are not limited
17    to, extensions  for  levies  made  on  an  annual  basis  for
18    unemployment   and   workers'  compensation,  self-insurance,
19    contributions to pension plans, and extensions made  pursuant
20    to  Section  6-601  of  the  Illinois Highway Code for a road
21    district's permanent road fund  whether  levied  annually  or
22    not.   The  extension  for  a  special  service  area  is not
23    included in the aggregate extension.
24        "Aggregate extension base" means  the  taxing  district's
25    last preceding aggregate extension as adjusted under Sections
26    18-215 through 18-230.
27        "Levy  year" has the same meaning as "year" under Section
28    1-155.
29        "New property" means (i) the assessed value, after  final
30    board   of   review  or  board  of  appeals  action,  of  new
31    improvements or additions to  existing  improvements  on  any
32    parcel  of  real property that increase the assessed value of
33    that real property during the levy  year  multiplied  by  the
34    equalization  factor  issued  by the Department under Section
 
                            -28-     LRB093 09547 NHT 09784 b
 1    17-30 and (ii) the  assessed  value,  after  final  board  of
 2    review  or  board  of  appeals  action,  of real property not
 3    exempt from real estate taxation,  which  real  property  was
 4    exempt  from  real  estate  taxation  for  any portion of the
 5    immediately  preceding   levy   year,   multiplied   by   the
 6    equalization  factor  issued  by the Department under Section
 7    17-30. In addition, the county clerk in a county containing a
 8    population of 3,000,000 or more shall  include  in  the  1997
 9    recovered  tax  increment  value for any school district, any
10    recovered tax increment value that was applicable to the 1995
11    tax year calculations.
12        "Qualified airport authority" means an airport  authority
13    organized  under the Airport Authorities Act and located in a
14    county bordering on the  State  of  Wisconsin  and  having  a
15    population in excess of 200,000 and not greater than 500,000.
16        "Recovered   tax   increment   value"  means,  except  as
17    otherwise provided in  this  paragraph,  the  amount  of  the
18    current  year's  equalized  assessed value, in the first year
19    after a municipality terminates the designation of an area as
20    a redevelopment project area previously established under the
21    Tax Increment Allocation  Development  Act  in  the  Illinois
22    Municipal  Code,  previously established under the Industrial
23    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
24    previously  established  under  the Economic Development Area
25    Tax Increment Allocation Act, of  each  taxable  lot,  block,
26    tract,  or  parcel  of  real  property  in  the redevelopment
27    project area over and above the  initial  equalized  assessed
28    value of each property in the redevelopment project area. For
29    the  taxes  which  are  extended  for the 1997 levy year, the
30    recovered tax increment value  for  a  non-home  rule  taxing
31    district  that  first became subject to this Law for the 1995
32    levy year because a majority of its 1994  equalized  assessed
33    value  was  in  an  affected  county  or  counties  shall  be
34    increased  if a municipality terminated the designation of an
 
                            -29-     LRB093 09547 NHT 09784 b
 1    area in 1993  as  a  redevelopment  project  area  previously
 2    established  under  the  Tax Increment Allocation Development
 3    Act in the Illinois Municipal  Code,  previously  established
 4    under  the  Industrial  Jobs  Recovery  Law  in  the Illinois
 5    Municipal Code, or previously established under the  Economic
 6    Development  Area  Tax Increment Allocation Act, by an amount
 7    equal to the 1994 equalized assessed value  of  each  taxable
 8    lot,  block,  tract,  or  parcel  of  real  property  in  the
 9    redevelopment   project  area  over  and  above  the  initial
10    equalized  assessed   value   of   each   property   in   the
11    redevelopment  project  area.  In  the  first  year  after  a
12    municipality  removes  a taxable lot, block, tract, or parcel
13    of  real  property  from   a   redevelopment   project   area
14    established  under  the  Tax Increment Allocation Development
15    Act in the  Illinois  Municipal  Code,  the  Industrial  Jobs
16    Recovery  Law in the Illinois Municipal Code, or the Economic
17    Development Area Tax Increment Allocation Act, "recovered tax
18    increment value" means  the  amount  of  the  current  year's
19    equalized  assessed  value of each taxable lot, block, tract,
20    or parcel of real property  removed  from  the  redevelopment
21    project  area  over  and above the initial equalized assessed
22    value  of  that  real  property  before  removal   from   the
23    redevelopment project area.
24        Except  as  otherwise provided in this Section, "limiting
25    rate" means a fraction the numerator of  which  is  the  last
26    preceding  aggregate  extension base times an amount equal to
27    one plus the extension limitation defined in this Section and
28    the denominator of which  is  the  current  year's  equalized
29    assessed  value  of  all real property in the territory under
30    the jurisdiction of the taxing district during the prior levy
31    year.   For  those  taxing  districts  that   reduced   their
32    aggregate  extension  for  the  last preceding levy year, the
33    highest aggregate extension in any of the  last  3  preceding
34    levy  years  shall  be  used for the purpose of computing the
 
                            -30-     LRB093 09547 NHT 09784 b
 1    limiting  rate.   The  denominator  shall  not  include   new
 2    property.   The  denominator  shall not include the recovered
 3    tax increment value.
 4    (Source: P.A. 91-357, eff.  7-29-99;  91-478,  eff.  11-1-99;
 5    92-547, eff. 6-13-02.)

 6        Section  115.  The  School  Code  is  amended by changing
 7    Section 18-8.05 as follows:

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

12    (A)  General Provisions.
13        (1)  The  provisions  of  this  Section  apply   to   the
14    1998-1999 and subsequent school years.  The system of general
15    State  financial aid provided for in this Section is designed
16    to assure that, through a combination of State financial  aid
17    and  required local resources, the financial support provided
18    each pupil in Average Daily Attendance equals  or  exceeds  a
19    prescribed per pupil Foundation Level.  This formula approach
20    imputes  a  level  of per pupil Available Local Resources and
21    provides for the basis to calculate  a  per  pupil  level  of
22    general  State  financial  aid  that, when added to Available
23    Local Resources, equals or exceeds the Foundation Level.  The
24    amount of per pupil general State financial  aid  for  school
25    districts,   in   general,  varies  in  inverse  relation  to
26    Available Local Resources.  Per pupil amounts are based  upon
27    each  school district's Average Daily Attendance as that term
28    is defined in this Section.
29        (2)  In addition to general State financial  aid,  school
30    districts  with  specified levels or concentrations of pupils
31    from  low  income  households   are   eligible   to   receive
32    supplemental  general  State financial aid grants as provided
 
                            -31-     LRB093 09547 NHT 09784 b
 1    pursuant to subsection (H). The supplemental State aid grants
 2    provided for school districts under subsection (H)  shall  be
 3    appropriated  for distribution to school districts as part of
 4    the same line item in which the general State  financial  aid
 5    of school districts is appropriated under this Section.
 6        (3)  To  receive financial assistance under this Section,
 7    school districts are required to file claims with  the  State
 8    Board of Education, subject to the following requirements:
 9             (a)  Any  school  district which fails for any given
10        school year to maintain school as required by law, or  to
11        maintain  a recognized school is not eligible to file for
12        such school year any claim upon the Common  School  Fund.
13        In  case  of  nonrecognition  of  one  or more attendance
14        centers  in  a  school   district   otherwise   operating
15        recognized  schools,  the  claim of the district shall be
16        reduced  in  the  proportion  which  the  Average   Daily
17        Attendance  in  the  attendance center or centers bear to
18        the Average Daily Attendance in the school  district.   A
19        "recognized  school"  means any public school which meets
20        the standards as established for recognition by the State
21        Board of Education.   A  school  district  or  attendance
22        center  not  having  recognition  status  at the end of a
23        school term is entitled to receive State aid payments due
24        upon  a  legal  claim  which  was  filed  while  it   was
25        recognized.
26             (b)  School district claims filed under this Section
27        are subject to Sections 18-9, 18-10, and 18-12, except as
28        otherwise provided in this Section.
29             (c)  If  a  school  district  operates  a  full year
30        school under Section 10-19.1, the general  State  aid  to
31        the  school  district  shall  be  determined by the State
32        Board of Education in accordance  with  this  Section  as
33        near as may be applicable.
34             (d)  (Blank).
 
                            -32-     LRB093 09547 NHT 09784 b
 1        (4)  Except  as  provided in subsections (H) and (L), the
 2    board of any district receiving any of  the  grants  provided
 3    for  in  this  Section  may  apply those funds to any fund so
 4    received  for  which  that  board  is  authorized   to   make
 5    expenditures by law.
 6        School  districts  are  not  required  to exert a minimum
 7    Operating Tax Rate in order to qualify for  assistance  under
 8    this Section.
 9        (5)  As  used  in  this Section the following terms, when
10    capitalized, shall have the meaning ascribed herein:
11             (a)  "Average Daily Attendance":  A count  of  pupil
12        attendance   in  school,  averaged  as  provided  for  in
13        subsection  (C)  and  utilized  in  deriving  per   pupil
14        financial support levels.
15             (b)  "Available  Local Resources":  A computation of
16        local financial  support,  calculated  on  the  basis  of
17        Average Daily Attendance and derived as provided pursuant
18        to subsection (D).
19             (c)  "Corporate    Personal   Property   Replacement
20        Taxes":  Funds paid to local school districts pursuant to
21        "An Act in  relation  to  the  abolition  of  ad  valorem
22        personal  property  tax  and  the replacement of revenues
23        lost thereby, and amending and repealing certain Acts and
24        parts of Acts in connection therewith", certified  August
25        14, 1979, as amended (Public Act 81-1st S.S.-1).
26             (d)  "Foundation  Level":  A prescribed level of per
27        pupil financial support as  provided  for  in  subsection
28        (B).
29             (e)  "Operating  Tax  Rate":   All  school  district
30        property taxes extended for all purposes, except Bond and
31        Interest,  Summer  School, Rent, Capital Improvement, and
32        Vocational Education Building purposes.
33        (6)  Notwithstanding any provision of  the  Local  Option
34    School  District  Income  Tax Act, the adoption or failure to
 
                            -33-     LRB093 09547 NHT 09784 b
 1    adopt a local income tax for schools and any disbursement  of
 2    funds  or  abatement  in the extension of real property taxes
 3    resulting from the adoption and imposition of a local  income
 4    tax  for  schools  by  one or more school districts under the
 5    Local Option School District Income Tax Act shall not  affect
 6    the  computation  or distribution of State aid for any school
 7    district, and all computations of State  aid  and  all  other
 8    distributions  of  State  funds  to  school  districts  shall
 9    proceed  without regard to changes in school funding provided
10    in the Local Option School District Income Tax Act.

11    (B)  Foundation Level.
12        (1)  The Foundation Level is a figure established by  the
13    State  representing  the minimum level of per pupil financial
14    support that should be available to  provide  for  the  basic
15    education  of each pupil in Average Daily Attendance.  As set
16    forth in this Section, each school  district  is  assumed  to
17    exert   a  sufficient  local  taxing  effort  such  that,  in
18    combination with the aggregate of general State financial aid
19    provided the  district,  an  aggregate  of  State  and  local
20    resources  are available to meet the basic education needs of
21    pupils in the district.
22        (2)  For the 1998-1999 school year, the Foundation  Level
23    of  support  is  $4,225.   For the 1999-2000 school year, the
24    Foundation Level of support is  $4,325.   For  the  2000-2001
25    school year, the Foundation Level of support is $4,425.
26        (3)  For  the  2001-2002 school year and each school year
27    thereafter, the Foundation Level of support is $4,560 or such
28    greater amount as may be established by law  by  the  General
29    Assembly.

30    (C)  Average Daily Attendance.
31        (1)  For   purposes  of  calculating  general  State  aid
32    pursuant to  subsection  (E),  an  Average  Daily  Attendance
33    figure  shall  be  utilized.   The  Average  Daily Attendance
 
                            -34-     LRB093 09547 NHT 09784 b
 1    figure for formula calculation purposes shall be the  monthly
 2    average  of the actual number of pupils in attendance of each
 3    school district, as further averaged for the best 3 months of
 4    pupil attendance for each school district.  In compiling  the
 5    figures  for  the  number  of  pupils  in  attendance, school
 6    districts  and  the  State  Board  of  Education  shall,  for
 7    purposes of general State  aid  funding,  conform  attendance
 8    figures to the requirements of subsection (F).
 9        (2)  The  Average  Daily  Attendance  figures utilized in
10    subsection (E) shall be the requisite attendance data for the
11    school year immediately preceding the school year  for  which
12    general  State  aid is being calculated or the average of the
13    attendance data for the 3 preceding school  years,  whichever
14    is greater.  The Average Daily Attendance figures utilized in
15    subsection (H) shall be the requisite attendance data for the
16    school  year  immediately preceding the school year for which
17    general State aid is being calculated.

18    (D)  Available Local Resources.
19        (1)  For  purposes  of  calculating  general  State   aid
20    pursuant  to  subsection  (E),  a representation of Available
21    Local Resources per  pupil,  as  that  term  is  defined  and
22    determined  in this subsection, shall be utilized.  Available
23    Local Resources per pupil shall include a  calculated  dollar
24    amount representing local school district revenues from local
25    property   taxes   and   from   Corporate  Personal  Property
26    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
27    Average Daily Attendance.
28        (2)  In  determining  a  school  district's  revenue from
29    local property taxes, the  State  Board  of  Education  shall
30    utilize  the  equalized  assessed  valuation  of  all taxable
31    property of each school district as of September  30  of  the
32    previous  year.   The  equalized  assessed valuation utilized
33    shall be obtained and determined as  provided  in  subsection
34    (G).
 
                            -35-     LRB093 09547 NHT 09784 b
 1        (3)  For school districts maintaining grades kindergarten
 2    through  12,  local  property tax revenues per pupil shall be
 3    calculated  as  the  product  of  the  applicable   equalized
 4    assessed  valuation for the district multiplied by 3.00%, and
 5    divided by the district's Average  Daily  Attendance  figure.
 6    For  school districts maintaining grades kindergarten through
 7    8, local property tax revenues per pupil shall be  calculated
 8    as the product of the applicable equalized assessed valuation
 9    for  the  district  multiplied  by  2.30%, and divided by the
10    district's  Average  Daily  Attendance  figure.   For  school
11    districts maintaining grades 9 through 12, local property tax
12    revenues per pupil shall be the applicable equalized assessed
13    valuation of the district multiplied by 1.05%, and divided by
14    the district's Average Daily Attendance figure.
15        (4)  The Corporate Personal  Property  Replacement  Taxes
16    paid to each school district during the calendar year 2 years
17    before  the  calendar  year  in  which  a school year begins,
18    divided by the  Average  Daily  Attendance  figure  for  that
19    district,  shall  be added to the local property tax revenues
20    per pupil as derived by the application  of  the  immediately
21    preceding  paragraph (3).  The sum of these per pupil figures
22    for each school district  shall  constitute  Available  Local
23    Resources  as  that term is utilized in subsection (E) in the
24    calculation of general State aid.

25    (E)  Computation of General State Aid.
26        (1)  For each school year, the amount  of  general  State
27    aid  allotted  to  a school district shall be computed by the
28    State Board of Education as provided in this subsection.
29        (2)  For any school district for  which  Available  Local
30    Resources  per  pupil  is less than the product of 0.93 times
31    the Foundation Level, general State  aid  for  that  district
32    shall  be  calculated  as  an  amount equal to the Foundation
33    Level minus Available  Local  Resources,  multiplied  by  the
34    Average Daily Attendance of the school district.
 
                            -36-     LRB093 09547 NHT 09784 b
 1        (3)  For  any  school  district for which Available Local
 2    Resources per pupil is equal to or greater than  the  product
 3    of  0.93 times the Foundation Level and less than the product
 4    of 1.75 times the Foundation Level, the general State aid per
 5    pupil shall be a decimal proportion of the  Foundation  Level
 6    derived   using   a  linear  algorithm.   Under  this  linear
 7    algorithm, the calculated general State aid per  pupil  shall
 8    decline   in  direct  linear  fashion  from  0.07  times  the
 9    Foundation Level for a school district with  Available  Local
10    Resources  equal  to the product of 0.93 times the Foundation
11    Level, to 0.05  times  the  Foundation  Level  for  a  school
12    district  with Available Local Resources equal to the product
13    of 1.75  times  the  Foundation  Level.   The  allocation  of
14    general  State  aid  for  school  districts  subject  to this
15    paragraph 3 shall be the calculated  general  State  aid  per
16    pupil  figure  multiplied  by the Average Daily Attendance of
17    the school district.
18        (4)  For any school district for  which  Available  Local
19    Resources  per  pupil  equals  or exceeds the product of 1.75
20    times the Foundation Level, the general  State  aid  for  the
21    school  district  shall  be calculated as the product of $218
22    multiplied by the Average  Daily  Attendance  of  the  school
23    district.
24        (5)  The  amount  of  general  State  aid  allocated to a
25    school district for the 1999-2000  school  year  meeting  the
26    requirements  set  forth  in  paragraph (4) of subsection (G)
27    shall be increased by an amount equal to  the  general  State
28    aid  that  would  have  been received by the district for the
29    1998-1999 school year by utilizing the  Extension  Limitation
30    Equalized  Assessed  Valuation as calculated in paragraph (4)
31    of subsection (G) less the general State aid allotted for the
32    1998-1999 school year.  This amount shall  be  deemed  a  one
33    time  increase, and shall not affect any future general State
34    aid allocations.
 
                            -37-     LRB093 09547 NHT 09784 b
 1    (F)  Compilation of Average Daily Attendance.
 2        (1)  Each school district shall, by July 1 of each  year,
 3    submit  to  the State Board of Education, on forms prescribed
 4    by the State Board of Education, attendance figures  for  the
 5    school  year  that began in the preceding calendar year.  The
 6    attendance information  so  transmitted  shall  identify  the
 7    average daily attendance figures for each month of the school
 8    year.   Beginning  with  the general State aid claim form for
 9    the 2002-2003 school year, districts shall calculate  Average
10    Daily  Attendance  as  provided in subdivisions (a), (b), and
11    (c) of this paragraph (1).
12             (a)  In  districts  that  do  not  hold   year-round
13        classes,  days  of attendance in August shall be added to
14        the month of September and any days of attendance in June
15        shall be added to the month of May.
16             (b)  In  districts  in  which  all  buildings   hold
17        year-round classes, days of attendance in July and August
18        shall  be added to the month of September and any days of
19        attendance in June shall be added to the month of May.
20             (c)  In districts in which some buildings,  but  not
21        all,  hold  year-round  classes,  for  the non-year-round
22        buildings, days of attendance in August shall be added to
23        the month of September and any days of attendance in June
24        shall be added to the month of  May.  The  average  daily
25        attendance for the year-round buildings shall be computed
26        as  provided in subdivision (b) of this paragraph (1). To
27        calculate the Average Daily Attendance for the  district,
28        the average daily attendance for the year-round buildings
29        shall  be  multiplied  by  the  days  in  session for the
30        non-year-round buildings for each month and added to  the
31        monthly attendance of the non-year-round buildings.
32        Except  as  otherwise  provided  in this Section, days of
33    attendance by pupils shall be counted only  for  sessions  of
34    not  less  than  5  clock  hours of school work per day under
 
                            -38-     LRB093 09547 NHT 09784 b
 1    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 2    personnel   or   volunteer   personnel   when   engaging   in
 3    non-teaching   duties  and  supervising  in  those  instances
 4    specified in subsection (a) of Section 10-22.34 and paragraph
 5    10 of Section 34-18, with pupils of legal school age  and  in
 6    kindergarten and grades 1 through 12.
 7        Days  of attendance by tuition pupils shall be accredited
 8    only to the districts that pay the tuition  to  a  recognized
 9    school.
10        (2)  Days  of  attendance  by pupils of less than 5 clock
11    hours of school shall be subject to the following  provisions
12    in the compilation of Average Daily Attendance.
13             (a)  Pupils  regularly  enrolled  in a public school
14        for only a part of the school day may be counted  on  the
15        basis  of  1/6 day for every class hour of instruction of
16        40 minutes or more attended pursuant to such  enrollment,
17        unless  a pupil is enrolled in a block-schedule format of
18        80 minutes or more of  instruction,  in  which  case  the
19        pupil  may  be  counted on the basis of the proportion of
20        minutes of school work completed each day to the  minimum
21        number of minutes that school work is required to be held
22        that day.
23             (b)  Days  of  attendance  may  be less than 5 clock
24        hours on the opening and closing of the school term,  and
25        upon  the first day of pupil attendance, if preceded by a
26        day  or  days  utilized  as  an  institute  or  teachers'
27        workshop.
28             (c)  A session of 4  or  more  clock  hours  may  be
29        counted  as a day of attendance upon certification by the
30        regional  superintendent,  and  approved  by  the   State
31        Superintendent  of  Education  to  the  extent  that  the
32        district has been forced to use daily multiple sessions.
33             (d)  A  session  of  3  or  more  clock hours may be
34        counted as a day of attendance (1) when the remainder  of
 
                            -39-     LRB093 09547 NHT 09784 b
 1        the school day or at least 2 hours in the evening of that
 2        day  is  utilized  for an in-service training program for
 3        teachers, up to a maximum of 5 days per  school  year  of
 4        which  a maximum of 4 days of such 5 days may be used for
 5        parent-teacher conferences, provided a district  conducts
 6        an  in-service  training  program  for teachers which has
 7        been approved by the State Superintendent  of  Education;
 8        or,  in  lieu of 4 such days, 2 full days may be used, in
 9        which event each such day may be  counted  as  a  day  of
10        attendance;  and  (2)  when  days  in  addition  to those
11        provided in item (1) are scheduled by a  school  pursuant
12        to  its  school improvement plan adopted under Article 34
13        or its revised or amended school improvement plan adopted
14        under Article 2, provided that (i) such sessions of 3  or
15        more  clock  hours  are  scheduled  to  occur  at regular
16        intervals, (ii) the remainder of the school days in which
17        such sessions occur are utilized for in-service  training
18        programs   or  other  staff  development  activities  for
19        teachers, and (iii) a sufficient  number  of  minutes  of
20        school  work under the direct supervision of teachers are
21        added to the school days between such regularly scheduled
22        sessions to  accumulate  not  less  than  the  number  of
23        minutes  by  which such sessions of 3 or more clock hours
24        fall short of 5 clock hours. Any full days used  for  the
25        purposes  of  this  paragraph shall not be considered for
26        computing average daily attendance.  Days  scheduled  for
27        in-service    training    programs,   staff   development
28        activities,  or   parent-teacher   conferences   may   be
29        scheduled  separately  for  different  grade  levels  and
30        different attendance centers of the district.
31             (e)  A  session  of  not less than one clock hour of
32        teaching hospitalized or homebound pupils on-site  or  by
33        telephone  to  the classroom may be counted as 1/2 day of
34        attendance, however these pupils must receive 4  or  more
 
                            -40-     LRB093 09547 NHT 09784 b
 1        clock  hours  of instruction to be counted for a full day
 2        of attendance.
 3             (f)  A session of at least  4  clock  hours  may  be
 4        counted  as  a  day of attendance for first grade pupils,
 5        and pupils in full day kindergartens, and a session of  2
 6        or  more hours may be counted as 1/2 day of attendance by
 7        pupils in kindergartens which provide  only  1/2  day  of
 8        attendance.
 9             (g)  For  children  with  disabilities who are below
10        the age of 6 years and who cannot attend 2 or more  clock
11        hours  because  of  their  disability  or  immaturity,  a
12        session of not less than one clock hour may be counted as
13        1/2  day  of  attendance; however for such children whose
14        educational needs so require a session of 4 or more clock
15        hours may be counted as a full day of attendance.
16             (h)  A recognized kindergarten  which  provides  for
17        only  1/2  day of attendance by each pupil shall not have
18        more than 1/2 day of attendance counted in any  one  day.
19        However, kindergartens may count 2 1/2 days of attendance
20        in  any  5 consecutive school days.  When a pupil attends
21        such a kindergarten for 2 half days  on  any  one  school
22        day,  the  pupil  shall  have  the following day as a day
23        absent from school, unless the  school  district  obtains
24        permission  in  writing  from the State Superintendent of
25        Education. Attendance at kindergartens which provide  for
26        a  full  day of attendance by each pupil shall be counted
27        the same as attendance by first grade  pupils.  Only  the
28        first  year  of  attendance  in one kindergarten shall be
29        counted, except in  case  of  children  who  entered  the
30        kindergarten   in  their  fifth  year  whose  educational
31        development requires a second  year  of  kindergarten  as
32        determined  under  the rules and regulations of the State
33        Board of Education.

34    (G)  Equalized Assessed Valuation Data.
 
                            -41-     LRB093 09547 NHT 09784 b
 1        (1)  For purposes of the calculation of  Available  Local
 2    Resources  required  pursuant  to  subsection  (D), the State
 3    Board of  Education  shall  secure  from  the  Department  of
 4    Revenue  the value as equalized or assessed by the Department
 5    of Revenue of all taxable property of every school  district,
 6    together  with  (i) the applicable tax rate used in extending
 7    taxes for the funds of the district as of September 30 of the
 8    previous year and (ii)  the  limiting  rate  for  all  school
 9    districts  subject  to  property tax extension limitations as
10    imposed under the Property Tax Extension Limitation Law.
11        This equalized assessed valuation, as adjusted further by
12    the requirements of this subsection, shall be utilized in the
13    calculation of Available Local Resources.
14        (2)  The equalized assessed valuation  in  paragraph  (1)
15    shall be adjusted, as applicable, in the following manner:
16             (a)  For the purposes of calculating State aid under
17        this  Section,  with  respect  to  any  part  of a school
18        district within a redevelopment project area  in  respect
19        to   which  a  municipality  has  adopted  tax  increment
20        allocation  financing  pursuant  to  the  Tax   Increment
21        Allocation  Redevelopment Act, Sections 11-74.4-1 through
22        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
23        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
24        11-74.6-50 of the Illinois Municipal Code, no part of the
25        current equalized assessed  valuation  of  real  property
26        located in any such project area which is attributable to
27        an  increase  above  the total initial equalized assessed
28        valuation of such property shall be used as part  of  the
29        equalized  assessed valuation of the district, until such
30        time as all redevelopment project costs have  been  paid,
31        as  provided  in  Section  11-74.4-8 of the Tax Increment
32        Allocation Redevelopment Act or in Section 11-74.6-35  of
33        the Industrial Jobs Recovery Law.  For the purpose of the
34        equalized  assessed  valuation of the district, the total
 
                            -42-     LRB093 09547 NHT 09784 b
 1        initial  equalized  assessed  valuation  or  the  current
 2        equalized assessed valuation, whichever is  lower,  shall
 3        be  used  until  such  time  as all redevelopment project
 4        costs have been paid.
 5             (b)  The real property equalized assessed  valuation
 6        for  a  school  district shall be adjusted by subtracting
 7        from the real property value as equalized or assessed  by
 8        the  Department  of  Revenue  for  the district an amount
 9        computed by dividing the amount of any abatement of taxes
10        under Section 18-170 of the Property Tax  Code  by  3.00%
11        for  a  district  maintaining grades kindergarten through
12        12,  by  2.30%  for   a   district   maintaining   grades
13        kindergarten  through  8,  or  by  1.05%  for  a district
14        maintaining grades 9 through 12 and adjusted by an amount
15        computed by dividing the amount of any abatement of taxes
16        under subsection (a) of Section 18-165  of  the  Property
17        Tax  Code  by the same percentage rates for district type
18        as specified in this subparagraph (b).
19        (3)  For the 1999-2000 school year and each  school  year
20    thereafter, if a school district meets all of the criteria of
21    this subsection (G)(3), the school district's Available Local
22    Resources  shall be calculated under subsection (D) using the
23    district's Extension Limitation Equalized Assessed  Valuation
24    as calculated under this subsection (G)(3).
25        For  purposes  of  this  subsection  (G)(3) the following
26    terms shall have the following meanings:
27             "Budget Year":  The school year  for  which  general
28        State aid is calculated and awarded under subsection (E).
29             "Base  Tax Year": The property tax levy year used to
30        calculate the Budget Year  allocation  of  general  State
31        aid.
32             "Preceding  Tax  Year":  The  property tax levy year
33        immediately preceding the Base Tax Year.
34             "Base Tax Year's Tax Extension": The product of  the
 
                            -43-     LRB093 09547 NHT 09784 b
 1        equalized assessed valuation utilized by the County Clerk
 2        in  the  Base Tax Year multiplied by the limiting rate as
 3        calculated  by  the  County  Clerk  and  defined  in  the
 4        Property Tax Extension Limitation Law.
 5             "Preceding Tax Year's Tax Extension": The product of
 6        the equalized assessed valuation utilized by  the  County
 7        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
 8        Operating Tax Rate as defined in subsection (A).
 9             "Extension  Limitation  Ratio":  A  numerical ratio,
10        certified by the County Clerk, in which the numerator  is
11        the  Base Tax Year's Tax Extension and the denominator is
12        the Preceding Tax Year's Tax Extension.
13             "Operating Tax Rate":  The  operating  tax  rate  as
14        defined in subsection (A).
15        If a school district is subject to property tax extension
16    limitations  as  imposed  under  the  Property  Tax Extension
17    Limitation Law, the State Board of Education shall  calculate
18    the Extension Limitation Equalized Assessed Valuation of that
19    district.   For  the  1999-2000  school  year,  the Extension
20    Limitation Equalized Assessed Valuation of a school  district
21    as  calculated by the State Board of Education shall be equal
22    to the product of  the  district's  1996  Equalized  Assessed
23    Valuation and the district's Extension Limitation Ratio.  For
24    the  2000-2001  school  year and each school year thereafter,
25    the Extension Limitation Equalized Assessed  Valuation  of  a
26    school district as calculated by the State Board of Education
27    shall  be  equal  to  the  product  of the Equalized Assessed
28    Valuation last used in the calculation of general  State  aid
29    and   the  district's  Extension  Limitation  Ratio.  If  the
30    Extension Limitation Equalized Assessed Valuation of a school
31    district as calculated under this subsection (G)(3)  is  less
32    than   the   district's   equalized   assessed  valuation  as
33    calculated pursuant to subsections (G)(1)  and  (G)(2),  then
34    for  purposes of calculating the district's general State aid
 
                            -44-     LRB093 09547 NHT 09784 b
 1    for  the  Budget  Year  pursuant  to  subsection  (E),   that
 2    Extension  Limitation  Equalized  Assessed Valuation shall be
 3    utilized  to  calculate  the   district's   Available   Local
 4    Resources under subsection (D).
 5        (4)  For  the  purposes  of calculating general State aid
 6    for the 1999-2000 school year  only,  if  a  school  district
 7    experienced   a   triennial  reassessment  on  the  equalized
 8    assessed valuation used  in  calculating  its  general  State
 9    financial  aid  apportionment  for the 1998-1999 school year,
10    the State Board of Education shall  calculate  the  Extension
11    Limitation  Equalized Assessed Valuation that would have been
12    used to calculate the district's 1998-1999 general State aid.
13    This amount shall equal the product of the equalized assessed
14    valuation  used  to  calculate  general  State  aid  for  the
15    1997-1998 school year and the district's Extension Limitation
16    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
17    Valuation  of  the  school  district as calculated under this
18    paragraph (4) is less than the district's equalized  assessed
19    valuation  utilized  in  calculating the district's 1998-1999
20    general  State  aid  allocation,   then   for   purposes   of
21    calculating  the  district's  general  State  aid pursuant to
22    paragraph (5) of subsection (E),  that  Extension  Limitation
23    Equalized  Assessed  Valuation shall be utilized to calculate
24    the district's Available Local Resources.
25        (5)  For school districts  having  a  majority  of  their
26    equalized  assessed  valuation  in  any  county  except Cook,
27    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
28    general  State  aid  allocated to the school district for the
29    1999-2000 school year under the provisions of subsection (E),
30    (H), and (J) of this Section  is  less  than  the  amount  of
31    general State aid allocated to the district for the 1998-1999
32    school  year  under these subsections, then the general State
33    aid of the district for the 1999-2000 school year only  shall
34    be  increased  by  the difference between these amounts.  The
 
                            -45-     LRB093 09547 NHT 09784 b
 1    total payments made under this paragraph (5) shall not exceed
 2    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
 3    $14,000,000.

 4    (H)  Supplemental General State Aid.
 5        (1)  In  addition  to  the  general  State  aid  a school
 6    district is allotted pursuant to subsection  (E),  qualifying
 7    school  districts  shall receive a grant, paid in conjunction
 8    with  a  district's  payments  of  general  State  aid,   for
 9    supplemental  general  State aid based upon the concentration
10    level of  children  from  low-income  households  within  the
11    school  district.  Supplemental State aid grants provided for
12    school districts under this subsection shall be  appropriated
13    for distribution to school districts as part of the same line
14    item  in  which  the  general  State  financial aid of school
15    districts is appropriated under this Section. For purposes of
16    this subsection, the term  "Low-Income  Concentration  Level"
17    shall  be  the  low-income eligible pupil count from the most
18    recently available federal  census  divided  by  the  Average
19    Daily Attendance of the school district. If, however, (i) the
20    percentage  decrease  from the 2 most recent federal censuses
21    in the low-income eligible  pupil  count  of  a  high  school
22    district  with fewer than 400 students exceeds by 75% or more
23    the percentage change in the total low-income eligible  pupil
24    count   of  contiguous  elementary  school  districts,  whose
25    boundaries are coterminous with the high school district,  or
26    (ii)  a  high school district within 2 counties and serving 5
27    elementary school districts, whose boundaries are coterminous
28    with the high school district, has a percentage decrease from
29    the 2 most recent federal censuses in the low-income eligible
30    pupil count and there is a percentage increase in  the  total
31    low-income   eligible  pupil  count  of  a  majority  of  the
32    elementary school districts in excess of 50% from the 2  most
33    recent  federal  censuses,  then  the  high school district's
34    low-income eligible pupil  count  from  the  earlier  federal
 
                            -46-     LRB093 09547 NHT 09784 b
 1    census  shall  be  the number used as the low-income eligible
 2    pupil count for the high school  district,  for  purposes  of
 3    this  subsection (H).  The changes made to this paragraph (1)
 4    by Public Act 92-28 shall apply to supplemental general State
 5    aid grants paid in fiscal year 1999 and in each  fiscal  year
 6    thereafter  and to any State aid payments made in fiscal year
 7    1994 through fiscal year 1998 pursuant to subsection 1(n)  of
 8    Section  18-8  of  this  Code  (which was repealed on July 1,
 9    1998), and any high  school  district  that  is  affected  by
10    Public  Act  92-28  is  entitled  to  a  recomputation of its
11    supplemental general State aid grant or State aid paid in any
12    of those fiscal  years.   This  recomputation  shall  not  be
13    affected by any other funding.
14        (2)  Supplemental  general  State  aid  pursuant  to this
15    subsection  (H)  shall  be  provided  as  follows   for   the
16    1998-1999, 1999-2000, and 2000-2001 school years only:
17             (a)  For  any  school  district  with  a  Low Income
18        Concentration Level of at least 20% and  less  than  35%,
19        the grant for any school year shall be $800 multiplied by
20        the low income eligible pupil count.
21             (b)  For  any  school  district  with  a  Low Income
22        Concentration Level of at least 35% and  less  than  50%,
23        the  grant  for the 1998-1999 school year shall be $1,100
24        multiplied by the low income eligible pupil count.
25             (c)  For any  school  district  with  a  Low  Income
26        Concentration  Level  of  at least 50% and less than 60%,
27        the grant for the 1998-99 school  year  shall  be  $1,500
28        multiplied by the low income eligible pupil count.
29             (d)  For  any  school  district  with  a  Low Income
30        Concentration Level of 60% or more,  the  grant  for  the
31        1998-99 school year shall be $1,900 multiplied by the low
32        income eligible pupil count.
33             (e)  For  the  1999-2000  school year, the per pupil
34        amount specified  in  subparagraphs  (b),  (c),  and  (d)
 
                            -47-     LRB093 09547 NHT 09784 b
 1        immediately  above  shall be increased to $1,243, $1,600,
 2        and $2,000, respectively.
 3             (f)  For the 2000-2001 school year,  the  per  pupil
 4        amounts  specified  in  subparagraphs  (b),  (c), and (d)
 5        immediately above shall be $1,273,  $1,640,  and  $2,050,
 6        respectively.
 7        (2.5)  Supplemental  general  State  aid pursuant to this
 8    subsection (H) shall be provided as follows for the 2002-2003
 9    school year and each school year thereafter:
10             (a)  For any  school  district  with  a  Low  Income
11        Concentration  Level of less than 10%, the grant for each
12        school year shall be $355 multiplied by  the  low  income
13        eligible pupil count.
14             (b)  For  any  school  district  with  a  Low Income
15        Concentration Level of at least 10% and  less  than  20%,
16        the  grant  for each school year shall be $675 multiplied
17        by the low income eligible pupil count.
18             (c)  For any  school  district  with  a  Low  Income
19        Concentration  Level  of  at least 20% and less than 35%,
20        the grant for each school year shall be $1,330 multiplied
21        by the low income eligible pupil count.
22             (d)  For any  school  district  with  a  Low  Income
23        Concentration  Level  of  at least 35% and less than 50%,
24        the grant for each school year shall be $1,362 multiplied
25        by the low income eligible pupil count.
26             (e)  For any  school  district  with  a  Low  Income
27        Concentration  Level  of  at least 50% and less than 60%,
28        the grant for each school year shall be $1,680 multiplied
29        by the low income eligible pupil count.
30             (f)  For any  school  district  with  a  Low  Income
31        Concentration  Level  of  60% or more, the grant for each
32        school year shall be $2,080 multiplied by the low  income
33        eligible pupil count.
34        (3)  School districts with an Average Daily Attendance of
 
                            -48-     LRB093 09547 NHT 09784 b
 1    more  than  1,000  and  less  than  50,000  that  qualify for
 2    supplemental general State aid pursuant  to  this  subsection
 3    shall  submit a plan to the State Board of Education prior to
 4    October 30 of each year for the use of  the  funds  resulting
 5    from  this  grant  of  supplemental general State aid for the
 6    improvement of instruction in  which  priority  is  given  to
 7    meeting  the education needs of disadvantaged children.  Such
 8    plan  shall  be  submitted  in  accordance  with  rules   and
 9    regulations promulgated by the State Board of Education.
10        (4)  School districts with an Average Daily Attendance of
11    50,000  or  more  that qualify for supplemental general State
12    aid  pursuant  to  this  subsection  shall  be  required   to
13    distribute  from funds available pursuant to this Section, no
14    less than  $261,000,000  in  accordance  with  the  following
15    requirements:
16             (a)  The  required  amounts  shall be distributed to
17        the attendance centers within the district in  proportion
18        to  the  number  of  pupils  enrolled  at each attendance
19        center who are eligible to receive free or  reduced-price
20        lunches  or  breakfasts under the federal Child Nutrition
21        Act of 1966 and  under  the  National  School  Lunch  Act
22        during the immediately preceding school year.
23             (b)  The   distribution   of   these   portions   of
24        supplemental  and  general  State  aid  among  attendance
25        centers  according  to  these  requirements  shall not be
26        compensated for or  contravened  by  adjustments  of  the
27        total  of  other  funds  appropriated  to  any attendance
28        centers, and the Board of Education shall utilize funding
29        from one or several sources in order to  fully  implement
30        this provision annually prior to the opening of school.
31             (c)  Each attendance center shall be provided by the
32        school  district  a  distribution of noncategorical funds
33        and other categorical funds to which an attendance center
34        is entitled under law in order that the general State aid
 
                            -49-     LRB093 09547 NHT 09784 b
 1        and  supplemental   general   State   aid   provided   by
 2        application  of  this  subsection supplements rather than
 3        supplants the noncategorical funds and other  categorical
 4        funds  provided  by the school district to the attendance
 5        centers.
 6             (d)  Any funds made available under this  subsection
 7        that  by  reason of the provisions of this subsection are
 8        not required to be allocated and provided  to  attendance
 9        centers  may be used and appropriated by the board of the
10        district for any lawful school purpose.
11             (e)  Funds received by an attendance center pursuant
12        to this subsection shall be used by the attendance center
13        at the discretion  of  the  principal  and  local  school
14        council for programs to improve educational opportunities
15        at  qualifying schools through the following programs and
16        services: early childhood education, reduced  class  size
17        or  improved adult to student classroom ratio, enrichment
18        programs, remedial  assistance,  attendance  improvement,
19        and  other  educationally  beneficial  expenditures which
20        supplement the regular and basic programs  as  determined
21        by the State Board of Education. Funds provided shall not
22        be  expended  for  any  political or lobbying purposes as
23        defined by board rule.
24             (f)  Each district subject to the provisions of this
25        subdivision (H)(4) shall submit  an  acceptable  plan  to
26        meet  the educational needs of disadvantaged children, in
27        compliance with the requirements of  this  paragraph,  to
28        the  State  Board  of  Education prior to July 15 of each
29        year. This plan shall be consistent with the decisions of
30        local school councils concerning the  school  expenditure
31        plans  developed  in  accordance  with  part 4 of Section
32        34-2.3.  The State Board shall approve or reject the plan
33        within 60 days after its  submission.   If  the  plan  is
34        rejected,  the  district  shall  give  written  notice of
 
                            -50-     LRB093 09547 NHT 09784 b
 1        intent  to  modify  the  plan  within  15  days  of   the
 2        notification of rejection and then submit a modified plan
 3        within  30  days  after the date of the written notice of
 4        intent to modify.  Districts  may  amend  approved  plans
 5        pursuant  to  rules  promulgated  by  the  State Board of
 6        Education.
 7             Upon notification by the State  Board  of  Education
 8        that  the district has not submitted a plan prior to July
 9        15 or a modified plan within the  time  period  specified
10        herein,  the  State  aid  funds  affected by that plan or
11        modified plan shall be withheld by  the  State  Board  of
12        Education until a plan or modified plan is submitted.
13             If  the  district  fails  to distribute State aid to
14        attendance centers in accordance with an  approved  plan,
15        the  plan for the following year shall allocate funds, in
16        addition  to  the  funds  otherwise  required   by   this
17        subsection,   to  those  attendance  centers  which  were
18        underfunded during the previous year in amounts equal  to
19        such underfunding.
20             For  purposes  of  determining  compliance with this
21        subsection in relation to the requirements of  attendance
22        center  funding,  each district subject to the provisions
23        of this subsection shall submit as a separate document by
24        December 1 of each year a report of expenditure data  for
25        the  prior  year  in  addition to any modification of its
26        current plan.  If it is determined that there has been  a
27        failure to comply with the expenditure provisions of this
28        subsection  regarding  contravention  or supplanting, the
29        State Superintendent of Education shall, within  60  days
30        of  receipt  of  the  report, notify the district and any
31        affected local school council.  The district shall within
32        45 days of receipt of that notification inform the  State
33        Superintendent of Education of the remedial or corrective
34        action  to be taken, whether  by amendment of the current
 
                            -51-     LRB093 09547 NHT 09784 b
 1        plan, if feasible, or by adjustment in the plan  for  the
 2        following  year.   Failure  to  provide  the  expenditure
 3        report  or  the  notification  of  remedial or corrective
 4        action in a timely manner shall result in  a  withholding
 5        of the affected funds.
 6             The  State Board of Education shall promulgate rules
 7        and regulations  to  implement  the  provisions  of  this
 8        subsection.   No  funds  shall  be  released  under  this
 9        subdivision (H)(4) to any district that has not submitted
10        a  plan  that  has  been  approved  by the State Board of
11        Education.

12    (I)  General State Aid for Newly Configured School Districts.
13        (1)  For  a  new  school  district  formed  by  combining
14    property  included  totally  within  2  or  more   previously
15    existing  school  districts,  for its first year of existence
16    the general State aid  and  supplemental  general  State  aid
17    calculated  under  this Section shall be computed for the new
18    district and for the previously existing districts for  which
19    property is totally included within the new district.  If the
20    computation on the basis of the previously existing districts
21    is  greater,  a supplementary payment equal to the difference
22    shall be made for the first 4 years of existence of  the  new
23    district.
24        (2)  For  a  school  district  which  annexes  all of the
25    territory of one or more entire other school  districts,  for
26    the   first  year  during  which  the  change  of  boundaries
27    attributable to such annexation  becomes  effective  for  all
28    purposes as determined under Section 7-9 or 7A-8, the general
29    State aid and supplemental general State aid calculated under
30    this  Section  shall be computed for the annexing district as
31    constituted after the annexation and  for  the  annexing  and
32    each annexed district as constituted prior to the annexation;
33    and  if  the  computation  on  the  basis of the annexing and
34    annexed districts as constituted prior to the  annexation  is
 
                            -52-     LRB093 09547 NHT 09784 b
 1    greater,  a  supplementary  payment  equal  to the difference
 2    shall be made for the first  4  years  of  existence  of  the
 3    annexing school district as constituted upon such annexation.
 4        (3)  For  2  or  more school districts which annex all of
 5    the territory of one or more entire other  school  districts,
 6    and  for 2 or more community unit districts which result upon
 7    the division (pursuant to petition under  Section  11A-2)  of
 8    one  or more other unit school districts into 2 or more parts
 9    and which together include all of the parts into  which  such
10    other  unit  school district or districts are so divided, for
11    the  first  year  during  which  the  change  of   boundaries
12    attributable to such annexation or division becomes effective
13    for  all  purposes as determined under Section 7-9 or 11A-10,
14    as the case may be, the general State  aid  and  supplemental
15    general  State  aid  calculated  under  this Section shall be
16    computed  for  each  annexing  or   resulting   district   as
17    constituted  after  the  annexation  or division and for each
18    annexing and annexed district,  or  for  each  resulting  and
19    divided  district,  as constituted prior to the annexation or
20    division; and if the aggregate of the general State  aid  and
21    supplemental  general  State  aid  as  so  computed  for  the
22    annexing  or  resulting  districts  as  constituted after the
23    annexation or division is less  than  the  aggregate  of  the
24    general  State  aid  and supplemental general State aid as so
25    computed for the annexing and annexed districts, or  for  the
26    resulting  and divided districts, as constituted prior to the
27    annexation or division, then a supplementary payment equal to
28    the difference shall be made and allocated between  or  among
29    the annexing or resulting districts, as constituted upon such
30    annexation  or  division,  for  the  first  4  years of their
31    existence.  The total difference payment shall  be  allocated
32    between  or  among the annexing or resulting districts in the
33    same ratio as the pupil enrollment from that portion  of  the
34    annexed  or divided district or districts which is annexed to
 
                            -53-     LRB093 09547 NHT 09784 b
 1    or included in each such annexing or resulting district bears
 2    to the total pupil enrollment  from  the  entire  annexed  or
 3    divided  district  or  districts, as such pupil enrollment is
 4    determined for the school year last ending prior to the  date
 5    when  the change of boundaries attributable to the annexation
 6    or division becomes effective for all purposes.   The  amount
 7    of  the total difference payment and the amount thereof to be
 8    allocated to the annexing or  resulting  districts  shall  be
 9    computed  by  the  State  Board  of Education on the basis of
10    pupil enrollment and other data which shall be  certified  to
11    the State Board of Education, on forms which it shall provide
12    for  that  purpose, by the regional superintendent of schools
13    for each educational service region in which the annexing and
14    annexed districts, or resulting  and  divided  districts  are
15    located.
16        (3.5)  Claims   for   financial   assistance  under  this
17    subsection (I) shall not be recomputed  except  as  expressly
18    provided under this Section.
19        (4)  Any supplementary payment made under this subsection
20    (I) shall be treated as separate from all other payments made
21    pursuant to this Section.

22    (J)  Supplementary Grants in Aid.
23        (1)  Notwithstanding   any   other   provisions  of  this
24    Section, the amount of the aggregate  general  State  aid  in
25    combination  with  supplemental  general State aid under this
26    Section for which each school district is eligible  shall  be
27    no  less  than  the amount of the aggregate general State aid
28    entitlement that was received by the district  under  Section
29    18-8  (exclusive  of  amounts received under subsections 5(p)
30    and 5(p-5) of that Section)  for  the  1997-98  school  year,
31    pursuant  to the provisions of that Section as it was then in
32    effect.  If  a  school  district  qualifies  to   receive   a
33    supplementary  payment  made  under  this subsection (J), the
34    amount of the aggregate general State aid in combination with
 
                            -54-     LRB093 09547 NHT 09784 b
 1    supplemental general State aid under this Section which  that
 2    district is eligible to receive for each school year shall be
 3    no  less  than  the amount of the aggregate general State aid
 4    entitlement that was received by the district  under  Section
 5    18-8  (exclusive  of  amounts received under subsections 5(p)
 6    and 5(p-5) of that Section) for the  1997-1998  school  year,
 7    pursuant  to the provisions of that Section as it was then in
 8    effect.
 9        (2)  If, as provided in paragraph (1) of this  subsection
10    (J),  a school district is to receive aggregate general State
11    aid in combination with supplemental general State aid  under
12    this  Section  for the 1998-99 school year and any subsequent
13    school year that in any such school year  is  less  than  the
14    amount  of  the  aggregate general State aid entitlement that
15    the district received for the 1997-98 school year, the school
16    district shall also receive, from  a  separate  appropriation
17    made  for  purposes  of  this subsection (J), a supplementary
18    payment that is equal to the amount of the difference in  the
19    aggregate State aid figures as described in paragraph (1).
20        (3)  (Blank).

21    (K)  Grants to Laboratory and Alternative Schools.
22        In  calculating  the  amount  to be paid to the governing
23    board of a  public  university  that  operates  a  laboratory
24    school  under  this Section or to any alternative school that
25    is operated by a  regional  superintendent  of  schools,  the
26    State Board of Education shall require by rule such reporting
27    requirements as it deems necessary.
28        As  used  in  this  Section,  "laboratory school" means a
29    public school which is  created  and  operated  by  a  public
30    university and approved by the State Board of Education.  The
31    governing  board  of a public university which receives funds
32    from the State  Board  under  this  subsection  (K)  may  not
33    increase  the  number  of students enrolled in its laboratory
34    school from a single district, if that  district  is  already
 
                            -55-     LRB093 09547 NHT 09784 b
 1    sending  50 or more students, except under a mutual agreement
 2    between the school board of a student's district of residence
 3    and the university which operates the laboratory  school.   A
 4    laboratory  school  may  not  have  more than 1,000 students,
 5    excluding students with disabilities in a  special  education
 6    program.
 7        As  used  in  this  Section, "alternative school" means a
 8    public school which is created and  operated  by  a  Regional
 9    Superintendent  of Schools and approved by the State Board of
10    Education.  Such alternative schools  may  offer  courses  of
11    instruction  for  which  credit  is  given  in regular school
12    programs, courses to prepare students  for  the  high  school
13    equivalency  testing  program  or vocational and occupational
14    training.   A regional superintendent of schools may contract
15    with a school district or a public community college district
16    to operate an  alternative  school.   An  alternative  school
17    serving  more  than  one  educational  service  region may be
18    established by the regional superintendents of schools of the
19    affected educational service regions.  An alternative  school
20    serving  more  than  one  educational  service  region may be
21    operated under such terms as the regional superintendents  of
22    schools of those educational service regions may agree.
23        Each  laboratory  and  alternative  school shall file, on
24    forms provided by the State Superintendent of  Education,  an
25    annual  State  aid  claim  which  states  the  Average  Daily
26    Attendance  of  the  school's  students by month.  The best 3
27    months' Average Daily Attendance shall be computed  for  each
28    school.  The  general State aid entitlement shall be computed
29    by multiplying the applicable Average Daily Attendance by the
30    Foundation Level as determined under this Section.

31    (L)  Payments,   Additional   Grants   in   Aid   and   Other
32    Requirements.
33        (1)  For a school district operating under the  financial
34    supervision  of  an  Authority created under Article 34A, the
 
                            -56-     LRB093 09547 NHT 09784 b
 1    general State aid otherwise payable to  that  district  under
 2    this  Section,  but  not  the supplemental general State aid,
 3    shall be reduced by an amount equal to  the  budget  for  the
 4    operations  of the Authority as certified by the Authority to
 5    the State Board of Education, and an  amount  equal  to  such
 6    reduction  shall  be  paid  to the Authority created for such
 7    district for its operating expenses in the manner provided in
 8    Section 18-11.  The remainder of general State school aid for
 9    any such district shall be paid in  accordance  with  Article
10    34A  when  that Article provides for a disposition other than
11    that provided by this Article.
12        (2)  (Blank).
13        (3)  Summer school.  Summer school payments shall be made
14    as provided in Section 18-4.3.

15    (M)  Education Funding Advisory Board.
16        The Education Funding Advisory Board, hereinafter in this
17    subsection (M) referred to as the "Board", is hereby created.
18    The Board shall consist of 5 members who are appointed by the
19    Governor, by and with the advice and consent of  the  Senate.
20    The   members  appointed  shall  include  representatives  of
21    education, business, and  the  general  public.  One  of  the
22    members  so  appointed shall be designated by the Governor at
23    the time the appointment is made as the  chairperson  of  the
24    Board.  The initial members of the Board may be appointed any
25    time after the effective date of this amendatory Act of 1997.
26    The regular term of each member of the Board shall be  for  4
27    years  from  the third Monday of January of the year in which
28    the term of the member's appointment is to  commence,  except
29    that  of  the  5  initial  members  appointed to serve on the
30    Board, the member who is appointed as the  chairperson  shall
31    serve  for  a  term  that commences on the date of his or her
32    appointment and expires on the third Monday of January, 2002,
33    and the remaining 4 members,  by  lots  drawn  at  the  first
34    meeting  of  the  Board  that is held after all 5 members are
 
                            -57-     LRB093 09547 NHT 09784 b
 1    appointed, shall determine 2 of their  number  to  serve  for
 2    terms   that   commence  on  the  date  of  their  respective
 3    appointments and expire on the third Monday of January, 2001,
 4    and 2 of their number to serve for terms that commence on the
 5    date of their respective appointments and expire on the third
 6    Monday of January, 2000.  All members appointed to  serve  on
 7    the  Board  shall serve until their respective successors are
 8    appointed and confirmed.  Vacancies shall be  filled  in  the
 9    same  manner  as  original  appointments.   If  a  vacancy in
10    membership occurs at  a  time  when  the  Senate  is  not  in
11    session,  the  Governor  shall  make  a temporary appointment
12    until the next meeting of the Senate, when he  or  she  shall
13    appoint,  by and with the advice and consent of the Senate, a
14    person to fill that membership for the  unexpired  term.   If
15    the  Senate  is  not in session when the initial appointments
16    are made, those appointments shall be made as in the case  of
17    vacancies.
18        The  Education  Funding  Advisory  Board  shall be deemed
19    established,  and  the  initial  members  appointed  by   the
20    Governor  to serve as members of the Board shall take office,
21    on the date that the Governor makes his or her appointment of
22    the fifth initial member of the Board, whether those  initial
23    members   are   then  serving  pursuant  to  appointment  and
24    confirmation or pursuant to temporary appointments  that  are
25    made by the Governor as in the case of vacancies.
26        The  State  Board  of  Education shall provide such staff
27    assistance to the Education  Funding  Advisory  Board  as  is
28    reasonably  required  for the proper performance by the Board
29    of its responsibilities.
30        For school years after the  2000-2001  school  year,  the
31    Education  Funding  Advisory  Board, in consultation with the
32    State Board  of  Education,  shall  make  recommendations  as
33    provided  in  this subsection (M) to the General Assembly for
34    the foundation level under subdivision (B)(3) of this Section
 
                            -58-     LRB093 09547 NHT 09784 b
 1    and for the supplemental general State aid grant level  under
 2    subsection  (H)  of  this  Section  for  districts  with high
 3    concentrations of children  from  poverty.   The  recommended
 4    foundation  level  shall be determined based on a methodology
 5    which  incorporates  the  basic  education  expenditures   of
 6    low-spending  schools  exhibiting  high academic performance.
 7    The  Education  Funding  Advisory  Board  shall   make   such
 8    recommendations  to  the General Assembly on January 1 of odd
 9    numbered years, beginning January 1, 2001.

10    (N)  (Blank).

11    (O)  References.
12        (1)  References in other laws to the various subdivisions
13    of Section 18-8 as that Section existed before its repeal and
14    replacement by this Section 18-8.05 shall be deemed to  refer
15    to  the  corresponding provisions of this Section 18-8.05, to
16    the extent that those references remain applicable.
17        (2)  References in other laws to State  Chapter  1  funds
18    shall  be  deemed  to refer to the supplemental general State
19    aid provided under subsection (H) of this Section.
20    (Source: P.A. 91-24, eff. 7-1-99; 91-93, eff. 7-9-99;  91-96,
21    eff.  7-9-99;  91-111,  eff.  7-14-99;  91-357, eff. 7-29-99;
22    91-533,  eff.  8-13-99;  92-7,  eff.  6-29-01;  92-16,   eff.
23    6-28-01; 92-28, eff. 7-1-01; 92-29, eff. 7-1-01; 92-269, eff.
24    8-7-01;  92-604,  eff.  7-1-02; 92-636, eff. 7-11-02; 92-651,
25    eff. 7-11-02; revised 7-26-02.)

26        Section 99.  Effective date.  This Act takes effect  upon
27    becoming law.
 
                            -59-     LRB093 09547 NHT 09784 b
 1                                INDEX
 2               Statutes amended in order of appearance
 3    New Act
 4    30 ILCS 105/5.595 new
 5    30 ILCS 105/5.596 new
 6    35 ILCS 5/512             from Ch. 120, par. 5-512
 7    35 ILCS 200/18-45
 8    35 ILCS 200/18-182 new
 9    35 ILCS 200/18-185
10    105 ILCS 5/18-8.05