SB0001sam003 95TH GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 7/25/2007

09500SB0001sam003 LRB095 04777 NHT 38251 a

AMENDMENT TO SENATE BILL 1

AMENDMENT NO. ______. Amend Senate Bill 1 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the FY2008 Budget Implementation (Education) Act.

Section 5. Purpose. It is the purpose of this Act to make changes in State programs that are necessary to implement the Governor's FY2008 budget recommendations concerning education.

Section 10. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The STEM Education Center Grant Fund.

Section 15. The Illinois Pension Code is amended by changing Section 16-158 as follows:

(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)

Sec. 16-158. Contributions by State and other employing units.

(a) The State shall make contributions to the System by means of appropriations from the Common School Fund and other State funds of amounts which, together with other employer contributions, employee contributions, investment income, and other income, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations.

The Board shall determine the amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the recommendations of the actuary, using the formula in subsection (b-3).

(a-1) Annually, on or before November 15, the Board shall certify to the Governor the amount of the required State contribution for the coming fiscal year. The certification shall include a copy of the actuarial recommendations upon which it is based.

On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking into account the amounts appropriated to and received by the System under subsection (d) of Section 7.2 of the General Obligation Bond Act.

On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly.

(b) Through State fiscal year 1995, the State contributions shall be paid to the System in accordance with Section 18-7 of the School Code.

(b-1) Beginning in State fiscal year 1996, on the 15th day of each month, or as soon thereafter as may be practicable, the Board shall submit vouchers for payment of State contributions to the System, in a total monthly amount of one-twelfth of the required annual State contribution certified under subsection (a-1). From the effective date of this amendatory Act of the 93rd General Assembly through June 30, 2004, the Board shall not submit vouchers for the remainder of fiscal year 2004 in excess of the fiscal year 2004 certified contribution amount determined under this Section after taking into consideration the transfer to the System under subsection (a) of Section 6z-61 of the State Finance Act. These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year.

If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this subsection, the difference shall be paid from the Common School Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act.

(b-2) Allocations from the Common School Fund apportioned to school districts not coming under this System shall not be diminished or affected by the provisions of this Article.

(b-3) For State fiscal years 2011 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045. In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method.

For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments so that by State fiscal year 2011, the State is contributing at the rate required under this Section; except that in the following specified State fiscal years, the State contribution to the System shall not be less than the following indicated percentages of the applicable employee payroll, even if the indicated percentage will produce a State contribution in excess of the amount otherwise required under this subsection and subsection (a), and notwithstanding any contrary certification made under subsection (a-1) before the effective date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY 2003; and 13.56% in FY 2004.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2006 is $534,627,700.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2007 is $738,014,500.

For each of State fiscal years 2008 through 2010, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.

Beginning in State fiscal year 2046, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 90% of the total actuarial liabilities of the System.

Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.

Notwithstanding any other provision of this Section, the required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under subsection (a-1), shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.

(c) Payment of the required State contributions and of all pensions, retirement annuities, death benefits, refunds, and other benefits granted under or assumed by this System, and all expenses in connection with the administration and operation thereof, are obligations of the State.

If members are paid from special trust or federal funds which are administered by the employing unit, whether school district or other unit, the employing unit shall pay to the System from such funds the full accruing retirement costs based upon that service, as determined by the System. Employer contributions, based on salary paid to members from federal funds, may be forwarded by the distributing agency of the State of Illinois to the System prior to allocation, in an amount determined in accordance with guidelines established by such agency and the System.

(d) Effective July 1, 1986, any employer of a teacher as defined in paragraph (8) of Section 16-106 shall pay the employer's normal cost of benefits based upon the teacher's service, in addition to employee contributions, as determined by the System. Such employer contributions shall be forwarded monthly in accordance with guidelines established by the System.

However, with respect to benefits granted under Section 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8) of Section 16-106, the employer's contribution shall be 12% (rather than 20%) of the member's highest annual salary rate for each year of creditable service granted, and the employer shall also pay the required employee contribution on behalf of the teacher. For the purposes of Sections 16-133.4 and 16-133.5, a teacher as defined in paragraph (8) of Section 16-106 who is serving in that capacity while on leave of absence from another employer under this Article shall not be considered an employee of the employer from which the teacher is on leave.

(e) Beginning July 1, 1998, every employer of a teacher shall pay to the System an employer contribution computed as follows:

(1) Beginning July 1, 1998 through June 30, 1999, the employer contribution shall be equal to 0.3% of each teacher's salary.

(2) Beginning July 1, 1999 and thereafter, the employer contribution shall be equal to 0.58% of each teacher's salary.

The school district or other employing unit may pay these employer contributions out of any source of funding available for that purpose and shall forward the contributions to the System on the schedule established for the payment of member contributions.

These employer contributions are intended to offset a portion of the cost to the System of the increases in retirement benefits resulting from this amendatory Act of 1998.

Each employer of teachers is entitled to a credit against the contributions required under this subsection (e) with respect to salaries paid to teachers for the period January 1, 2002 through June 30, 2003, equal to the amount paid by that employer under subsection (a-5) of Section 6.6 of the State Employees Group Insurance Act of 1971 with respect to salaries paid to teachers for that period.

The additional 1% employee contribution required under Section 16-152 by this amendatory Act of 1998 is the responsibility of the teacher and not the teacher's employer, unless the employer agrees, through collective bargaining or otherwise, to make the contribution on behalf of the teacher.

If an employer is required by a contract in effect on May 1, 1998 between the employer and an employee organization to pay, on behalf of all its full-time employees covered by this Article, all mandatory employee contributions required under this Article, then the employer shall be excused from paying the employer contribution required under this subsection (e) for the balance of the term of that contract. The employer and the employee organization shall jointly certify to the System the existence of the contractual requirement, in such form as the System may prescribe. This exclusion shall cease upon the termination, extension, or renewal of the contract at any time after May 1, 1998.

(f) If the amount of a teacher's salary for any school year used to determine final average salary exceeds the member's annual full-time salary rate with the same employer for the previous school year by more than 6%, the teacher's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in salary that is in excess of 6%. This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. If a teacher's salary for the 2005-2006 school year is used to determine final average salary under this subsection (f), then the changes made to this subsection (f) by Public Act 94-1057 shall apply in calculating whether the increase in his or her salary is in excess of 6%. For the purposes of this Section, change in employment under Section 10-21.12 of the School Code on or after June 1, 2005 shall constitute a change in employer. The System may require the employer to provide any pertinent information or documentation. The changes made to this subsection (f) by this amendatory Act of the 94th General Assembly apply without regard to whether the teacher was in service on or after its effective date.

Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (g) or (h) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.

The employer contributions required under this subsection (f) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.

(g) This subsection (g) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011. The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July 31, 2006 (the effective date of Public Act 94-1057).

When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to teachers under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.

When assessing payment for any amount due under subsection (f), the System shall exclude salary increases paid to a teacher at a time when the teacher is 10 or more years from retirement eligibility under Section 16-132 or 16-133.2.

When assessing payment for any amount due under subsection (f), the System shall exclude salary increases resulting from overload work, including summer school, when the school district has certified to the System, and the System has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule.

When assessing payment for any amount due under subsection (f), the System shall exclude a salary increase resulting from a promotion (i) for which the employee is required to hold a certificate or supervisory endorsement issued by the State Teacher Certification Board that is a different certification or supervisory endorsement than is required for the teacher's previous position and (ii) to a position that has existed and been filled by a member for no less than one complete academic year and the salary increase from the promotion is an increase that results in an amount no greater than the lesser of the average salary paid for other similar positions in the district requiring the same certification or the amount stipulated in the collective bargaining agreement for a similar position requiring the same certification.

When assessing payment for any amount due under subsection (f), the System shall exclude any payment to the teacher from the State of Illinois or the State Board of Education over which the employer does not have discretion or which is paid to a mentor teacher or principal from funds provided to the employer by the State Board of Education for the purpose of mentoring a new teacher or principal, notwithstanding that the payment is included in the computation of final average salary.

(h) When assessing payment for any amount due under subsection (f), the System shall exclude any salary increase described in subsection (g) of this Section given on or after July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Notwithstanding any other provision of this Section, any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (f) of this Section.

(i) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information:

(1) The number of recalculations required by the changes made to this Section by Public Act 94-1057 for each employer.

(2) The dollar amount by which each employer's contribution to the System was changed due to recalculations required by Public Act 94-1057.

(3) The total amount the System received from each employer as a result of the changes made to this Section by Public Act 94-4.

(4) The increase in the required State contribution resulting from the changes made to this Section by Public Act 94-1057.

(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, eff. 7-31-06; 94-1111, eff. 2-27-07.)

Section 20. The School Code is amended by changing Sections 2-3.131 (as added by Public Act 93-21), 10-17a, 10-20.20, 10-21.4a, 10-22.23a, 14-13.01, 17-1.5, 18-8.05, 18-17, 21-27, 21A-5, 21A-10, 21A-15, 21A-20, 21A-25, 21A-30, 21A-35, 24-12, 24A-1, 24A-3, 24A-4, 24A-5, 24A-6, 24A-8, and 24A-15 and by adding Sections 2-3.25p, 2-3.53b, 2-3.64b, 2-3.142, 2-3.144, 2-3.145, 2-3.146, 2-3.148, 2-3.149, 2-3.151, 3-6.5, 10-16.10, 10-17b, 10-20.40, 10-20.41, 10-20.43, 21-29, 21-30, 21-31, and 21A-3 as follows:

(105 ILCS 5/2-3.25p new)

Sec. 2-3.25p. Targeted intervention strategies.

(a) The State Board of Education is authorized to make rules necessary to define and implement strategies to support school districts. Moneys appropriated under this Section must be used to undertake targeted interventions in eligible schools to improve student achievement.

(b) School districts with schools that remain on academic watch status after a third annual calculation are eligible to participate in targeted intervention strategies. The State Board of Education shall select participating schools through a prioritization process that considers the following, in addition to other factors defined by Board rule:

(1) the number of years the school has remained in academic watch status; and

(2) the overall percentage of students in the school with State assessment scores demonstrating proficiency.

(c) The State Board of Education shall provide school districts with schools eligible to participate the opportunity to accept or decline participation in targeted intervention strategies designed in cooperation with the school district, the State Board of Education, and a designated State Intervention Team.

(d) If a school district with schools eligible to participate in an intervention strategy declines participation, then that school district must demonstrate academic improvement within the eligible schools over a 2-year period as measured by the State Board of Education. If a school district cannot demonstrate such improvement, the State Board of Education is authorized to take actions as set forth in subsection (b) of Section 2-3.25f of this Code.

(e) State Intervention Teams established under this Section shall work with school districts to identify other State, federal, and local funds that may be used to carry out targeted intervention strategies as identified in the targeted intervention plan developed under this Section.

(f) Subject to appropriation, the State Board of Education shall make funds available to school districts implementing targeted intervention strategies as identified in the targeted intervention plan developed under this Section.

(g) A school district participating in targeted intervention strategies shall be assigned a State Intervention Team, assembled by the State Board of Education, that includes an academic improvement specialist appointed by the State Board of Education and representatives from various State agencies, including, as appropriate, the Department of Human Services, the Department of Healthcare and Family Services, the Department of State Police, and the Department of Children and Family Services, among others.

(h) A State Intervention Team shall cooperate with representatives of the participating school district, which may include the school board, district superintendent, school administration, school professional staff, school parents, and the school community.

(i) In cooperation with the other members of the State Intervention Team and those entities listed in subsection (h) of this Section, the academic improvement specialist shall develop a targeted intervention plan in accordance with rules adopted by the State Board of Education.

(j) The targeted intervention plan must be completed within 60 days after the designation of the academic improvement specialist and formation of the rest of the State Intervention Team and must be filed with the State Board of Education.

(1) The academic improvement specialist is responsible for creating the plan, in consultation with the other members of the State Intervention Team.

(2) The academic improvement specialist shall attempt to reach consensus on the plan with representatives from the school district.

(k) The targeted intervention plan developed under this Section may include the following, among other appropriate strategies for school improvement:

(1) A plan for school participation in an extended school year or summer school services or both for low-achieving students.

(2) A plan to implement after-school tutoring and alternative enrichment activities for low-achieving students.

(3) A plan to increase the integration of technology in classroom instruction and the use of technology to encourage parental and community involvement.

(4) Improvements to services made available to students, parents, and guardians through the school library.

(5) Professional development opportunities available to school and district administrators and teachers.

(6) Improvements to school curriculum and school materials, including textbooks, software, and other technology.

(l) The targeted intervention plan developed under this Section shall cover a minimum of 2 school years and must identify strategies for academic improvement that can be sustained by the school district in subsequent years.

(m) The academic improvement specialist, in cooperation with the State Board of Education, shall assess the participating schools' progress throughout the course of the intervention period, including the participating schools' capacity to sustain academic improvement without participation in the program.

(105 ILCS 5/2-3.53b new)

Sec. 2-3.53b. New superintendent mentoring program.

(a) Beginning on July 1, 2008 and subject to an annual appropriation by the General Assembly, to establish a new superintendent mentoring program for new superintendents. Any individual who begins serving as a superintendent in this State on or after July 1, 2008 and has not previously served as a school district superintendent in this State shall participate in the new superintendent mentoring program for the duration of his or her first 2 school years as a superintendent and must complete the program in accordance with the requirements established by the State Board of Education by rule. The new superintendent mentoring program shall match an experienced superintendent who meets the requirements of subsection (b) of this Section with each new superintendent in his or her first 2 school years in that position in order to assist the new superintendent in the development of his or her professional growth and to provide guidance during the new superintendent's first 2 school years of service.

(b) Any individual who has actively served as a school district superintendent in this State for 3 or more years and who has demonstrated success as an instructional leader, as determined by the State Board of Education by rule, is eligible to apply to be a mentor under the new superintendent mentoring program. Mentors shall complete mentoring training through a provider selected by the State Board of Education and shall meet any other requirements set forth by the State Board and by the school district employing the mentor.

(c) Under the new superintendent mentoring program, a provider selected by the State Board of Education shall assign a mentor to a new superintendent based on (i) similarity of grade level or type of school district, (ii) learning needs of the new superintendent, and (iii) geographical proximity of the mentor to the new superintendent. The new superintendent, in collaboration with the mentor, shall identify areas for improvement of the new superintendent's professional growth, including, but not limited to, each of the following:

(1) Analyzing data and applying it to practice.

(2) Aligning professional development and instructional programs.

(3) Building a professional learning community.

(4) Effective school board relations.

(5) Facilitating effective meetings.

(6) Developing distributive leadership practices.

(7) Facilitating organizational change.

The mentor must not be required to provide an evaluation of the new superintendent on the basis of the mentoring relationship.

(d) From January 1, 2009 until May 15, 2009 and from January 1 until May 15 each year thereafter, each mentor and each new superintendent shall complete a survey of progress of the new superintendent on a form developed by the school district. On or before September 1, 2009 and on or before September 1 of each year thereafter, the provider selected by the State Board of Education shall submit a detailed annual report to the State Board of how the appropriation for the new superintendent mentoring program was spent, details on each mentor-mentee relationship, and a qualitative evaluation of the outcomes. The provider shall develop a verification form that each new superintendent and his or her mentor must complete and submit to the provider to certify completion of each year of the new superintendent mentoring program by July 15 immediately following the school year just completed.

(e) The requirements of this Section do not apply to any individual who has previously served as an assistant superintendent in a school district in this State acting under an administrative certificate for 5 or more years and who, on or after July 1, 2008, begins serving as a superintendent in the school district where he or she had served as an assistant superintendent immediately prior to being named superintendent, although such an individual may choose to participate in the new superintendent mentoring program or may be required to participate by the school district. The requirements of this Section do not apply to any superintendent or chief executive officer of a school district organized under Article 34 of this Code.

(f) The State Board may adopt any rules that are necessary for the implementation of this Section.

(105 ILCS 5/2-3.64b new)

Sec. 2-3.64b. Performance measures.

(a) In this Section, "growth model assessment" means a statistical system for educational outcome assessment that uses measures of student learning to enable the estimation of teacher, school, and school district statistical distributions. The statistical system shall use available and appropriate data, as defined by the State Board of Education, as input to account for differences in prior student attainment, such that the impact that the teacher, school, and school district have on the educational progress of students may be estimated on a student attainment constant basis. The impact that a teacher, school, or school district has on the progress or lack of progress in educational advancement or learning of a student is referred to in this Section as the "effect" of the teacher, school, or school district on the educational progress of students.

(b) No later than July 1, 2008, the State Board of Education shall establish a statewide growth model assessment system to measure the annual increase or growth in each student's performance relative to a standard year of academic growth on the assessments provided for in Section 2-3.64 of this Code and other performance indicators that the State Board may identify. In establishing the statewide growth model assessment system, the State Board of Education must take into consideration current school district assessment plans concerning student performance.

(c) The growth model assessment system shall reliably estimate school district, school, and teacher effects on students' academic achievement over time, control for student characteristics, and use an independently verifiable statistical methodology to produce such estimates.

(d) A specific teacher's effect on the educational progress of students may not be used as a part of a formal personnel evaluation until data from 3 complete academic years are obtained and unless the district and the exclusive bargaining representative of the district's teachers, if any, have agreed to its use as part of an alternative evaluation plan under Section 24A-5 or 24A-8 of this Code. Teacher effect data must not be retained for use in evaluations for more than the most recent 5 years. A student must have been present for 150 days of classroom instruction per year or 75 days of classroom instruction per semester before that student's record is attributable to a specific teacher. Records from any student who is eligible for special education services under federal law must not be used as part of the growth model assessment.

(e) The State Board of Education shall provide growth model assessment data to each school district as soon as practicable after receipt of such data, but in no case later than August 1. The aggregate growth model assessment estimates for each school district and school shall also be included in each school district's report card under Section 10-17a of this Code.

(f) All identifiable individual student performance data, information, and reports shall be deemed confidential, shall not be a public record, and shall not be disclosed; provided that such information shall be made available only to a student's classroom teacher and other appropriate educational personnel and to the student's parent or guardian.

(g) All identifiable teacher effects data, information, and reports shall be deemed confidential, shall not be a public record, and shall not be disclosed without the teacher's consent, except to appropriate personnel in the district in which the teacher is employed.

(h) As provided in Section 2-3.25d of this Code, the State Board of Education shall establish a coherent and sustained system of assistance and support for schools not meeting identified levels of achievement or not showing specified levels of progress, as determined by the State Board based upon the schools' growth model assessment results. As provided in Section 2-3.25f of this Code, the State Board of Education shall specify appropriate levels of assistance and intervention for schools that receive an unacceptable rating on student performance for the absolute student achievement standard or on progress on improved student achievement.

(105 ILCS 5/2-3.131)

Sec. 2-3.131. Transitional assistance payments.

(a) If the amount that the State Board of Education will pay to a school district from fiscal year 2004 appropriations, as estimated by the State Board of Education on April 1, 2004, is less than the amount that the State Board of Education paid to the school district from fiscal year 2003 appropriations, then, subject to appropriation, the State Board of Education shall make a fiscal year 2004 transitional assistance payment to the school district in an amount equal to the difference between the estimated amount to be paid from fiscal year 2004 appropriations and the amount paid from fiscal year 2003 appropriations.

(b) If the amount that the State Board of Education will pay to a school district from fiscal year 2005 appropriations, as estimated by the State Board of Education on April 1, 2005, is less than the amount that the State Board of Education paid to the school district from fiscal year 2004 appropriations, then the State Board of Education shall make a fiscal year 2005 transitional assistance payment to the school district in an amount equal to the difference between the estimated amount to be paid from fiscal year 2005 appropriations and the amount paid from fiscal year 2004 appropriations.

(c) If the amount that the State Board of Education will pay to a school district from fiscal year 2006 appropriations, as estimated by the State Board of Education on April 1, 2006, is less than the amount that the State Board of Education paid to the school district from fiscal year 2005 appropriations, then the State Board of Education shall make a fiscal year 2006 transitional assistance payment to the school district in an amount equal to the difference between the estimated amount to be paid from fiscal year 2006 appropriations and the amount paid from fiscal year 2005 appropriations.

(d) If the amount that the State Board of Education will pay to a school district from fiscal year 2007 appropriations, as estimated by the State Board of Education on April 1, 2007, is less than the amount that the State Board of Education paid to the school district from fiscal year 2006 appropriations, then the State Board of Education, subject to appropriation, shall make a fiscal year 2007 transitional assistance payment to the school district in an amount equal to the difference between the estimated amount to be paid from fiscal year 2007 appropriations and the amount paid from fiscal year 2006 appropriations.

(e) If the amount that the State Board of Education will pay to a school district from fiscal year 2008 appropriations, as estimated by the State Board of Education on April 1, 2008, is less than the amount that the State Board of Education paid to the school district from fiscal year 2007 appropriations, then the State Board of Education, subject to appropriation, shall make a fiscal year 2008 transitional assistance payment to the school district in an amount equal to the difference between the estimated amount to be paid from fiscal year 2008 appropriations and the amount paid from fiscal year 2007 appropriations.

(Source: P.A. 93-21, eff. 7-1-03; 93-838, eff. 7-30-04; 94-69, eff. 7-1-05; 94-835, eff. 6-6-06.)

(105 ILCS 5/2-3.142 new)

Sec. 2-3.142. Rural Learning Initiative.

(a) Subject to appropriation, the State Board of Education shall by rule establish a Rural Learning Initiative to upgrade computer lab facilities and associated components, upgrade classroom materials, and fund professional development.

(b) The State Board of Education shall select the participating school districts and schools based on each district's or school's need. In selecting participants, the State Board shall consider all of the following criteria:

(1) The district's size, student population, and location.

(2) Documented teacher shortages in critical areas for which teaching and learning could be provided by access to the Illinois Virtual High School.

(3) Limited access to advanced placement courses.

(4) Low rates of satisfactory performance on assessment instruments under Section 2-3.64 of this Code.

(5) The methods the district or school will use to measure the outcomes of the grant in the district or school.

(6) Whether the district or school has limited system capabilities, resource needs, and professional development support.

(105 ILCS 5/2-3.144 new)

Sec. 2-3.144. Enhanced teacher compensation.

(a) Subject to appropriation, an enhanced teacher compensation system is established, beginning with the 2008-2009 school year, to provide new incentives to improve student learning and to recruit and retain highly qualified teachers, encourage highly qualified teachers to undertake challenging assignments, and support teachers' roles in improving students' educational achievement.

(b) To be eligible to participate in an enhanced teacher compensation system, a school district or school building, at least in the school year before it expects to fully implement the system (i) must submit to the State Board of Education a letter of intent executed by the school district and the exclusive representative of the district's teachers to complete a plan preparing for full implementation, consistent with subsection (d) of this Section, that may include, among other activities, training to evaluate teacher performance, a restructured school day to develop integrated ongoing building-based professional development activities, release time to develop an enhanced teacher compensation system agreement, and teacher and staff training on using multiple data sources; and (ii) may agree to use the State funds it receives under Section 10-20.41 of this Code for staff development purposes to develop the enhanced teacher compensation system agreement under this Section.

(c) The State Superintendent of Education may waive the planning year if he or she determines, based on the criteria set forth under subsection (d) of this Section, that the school district or school building is ready to fully implement an alternative pay system.

(d) To participate in the program established under this Section, a school district or school building must have an educational improvement plan under Section 10-20.43 of this Code and an enhanced teacher compensation system agreement under this Section.

The enhanced teacher compensation system agreement must be negotiated with, agreed to, and ratified by the exclusive representative of the district's teachers. In addition, the agreement must do the following:

(1) describe how teachers can achieve career advancement and additional compensation;

(2) describe how the school district or school building will provide teachers with career advancement options that allow teachers to retain primary roles in student instruction and facilitate site-focused professional development that helps other teachers improve their skills;

(3) prevent any teacher's compensation paid before implementing the compensation system from being reduced as a result of participating in this system;

(4) for school districts having a population not exceeding 500,000, base at least 60% of any compensation increase on teacher performance using the following:

(A) school-wide student achievement gains;

(B) measures of achievement by a teacher's students; and

(C) an objective evaluation program that includes the following:

(i) individual teacher evaluations aligned with the educational improvement plan under Section 10-20.43 of this Code and the staff development plan under Section 10-20.40 of this Code; and

(ii) objective evaluations using multiple criteria conducted by a locally developed and periodically trained evaluation team that understands teaching and learning.

Standardized test scores shall not be used as a basis for determining compensation under the system;

(5) provide integrated ongoing building-based professional development activities to improve instructional skills and learning that are aligned with student needs under Section 10-20.43 of this Code, consistent with the staff development plan under Section 10-20.40 of this Code and led during the school day by trained teacher leaders such as master or mentor teachers;

(6) allow any teacher in a participating school district or school building that implements an enhanced teacher compensation system to participate in that system without any quota or other limit; and

(7) encourage collaboration rather than competition among teachers.

(e) Consistent with the requirements of this Section and Sections 2-3.145 and 10-20.43 of this Code, the State Board of Education must prepare and transmit to interested school districts and school buildings a standard form for applying to participate in the enhanced teacher compensation system. An interested school district or school building must submit to the State Superintendent a completed application executed by the district superintendent and the exclusive bargaining representative of the teachers. The application must include the proposed enhanced teacher compensation system agreement under this Section. The State Board of Education must convene a review committee that at least includes teachers and administrators within 30 days after receiving a completed application to recommend to the State Superintendent of Education whether to approve or disapprove the application. The State Superintendent must approve applications on a first-come, first-served basis. The applicant's enhanced teacher compensation system agreement must be legally binding on the applicant and the exclusive bargaining representative before the applicant receives enhanced compensation revenue. The State Superintendent must approve or disapprove an application based on the requirements under subsection (d) of this Section.

If the State Superintendent of Education disapproves an application, the State Superintendent must give the applicant timely notice of the specific reasons in detail for disapproving the application. The applicant may revise and resubmit its application and related documents to the State Superintendent within 30 days after receiving notice of the State Superintendent's disapproval and the State Superintendent must approve or disapprove the revised application, consistent with this subsection (e). Applications that are revised and then approved are considered submitted on the date the applicant initially submitted the application.

(f) Participating school districts and school buildings must report on the implementation and effectiveness of the enhanced teacher professional pay system, particularly addressing each requirement under subsection (d) of this Section, and make annual recommendations by June 15 to their school boards. The school board shall transmit a copy of the report with a summary of the findings and recommendations of the school district or school building to the State Superintendent of Education.

If the State Superintendent of Education determines that a school district or school building that receives enhanced teacher compensation revenue is not complying with the requirements of this Section, the State Superintendent may withhold funding from that participant. Before making the determination, the State Superintendent must notify the participant of any deficiencies and provide the participant an opportunity to comply.

(g) A school district that qualifies to participate in the enhanced teacher compensation system transitional planning year under this Section may use the State funds it receives under Section 10-20.41 of this Code for complying with the planning and staff development activities under this Section.

(105 ILCS 5/2-3.145 new)

Sec. 2-3.145. Enhanced compensation revenue.

(a) Subject to appropriation, a school district or school building that meets the conditions of Section 2-3.144 of this Code and submits an application approved by the State Superintendent of Education is eligible for enhanced teacher compensation revenue.

(b) The State Superintendent of Education must consider only those applications to participate that are submitted jointly by a school district and the exclusive bargaining representative of the teachers, if any. The application must contain an enhanced teacher compensation system agreement as set forth in Section 2-3.144 of this Code.

(c) Enhanced teacher compensation revenue for a qualifying school district or school building shall equal $260 times the number of pupils enrolled in the district or school building on October 1 of the previous fiscal year.

For a newly combined or consolidated school district, the revenue shall be computed using the sum of pupils enrolled on October 1 of the previous year in the districts entering into the combination or consolidation. The State Superintendent of Education may adjust the revenue computed for a school building using prior year data to reflect changes attributable to school closings, school openings, or grade level reconfigurations between the prior year and the current year.

The revenue shall be available only to school districts and school buildings that fully implement an enhanced teacher compensation system by October 1 of the current school year.

(d) School districts and school buildings with approved applications must receive enhanced teacher compensation revenue for each school year that the district or school building implements an enhanced teacher compensation system under this subsection (d) and Section 2-3.144 of this Code. For the 2009-2010 school year and later, a qualifying district or school building that received enhanced teacher compensation aid for the previous school year must receive at least an amount of enhanced teacher compensation revenue equal to the lesser of the amount it received for the previous school year or the amount it qualifies for under subsection (c) of this Section for the current school year, if the district or school building submits a timely application and the State Superintendent determines that the district or school building continues to implement an enhanced teacher compensation system, consistent with its application under this Section.

The State Superintendent of Education shall approve applications that comply with this Section, select applicants that qualify for the program, notify school districts and school buildings about the program, develop and disseminate application materials, and carry out other activities needed to implement this Section.

(105 ILCS 5/2-3.146 new)

Sec. 2-3.146. The Salary Incentive Program for Hard-to-staff Schools.

(a) As used in this Section:

"Eligible school principal" means a person who is a principal of a hard-to-staff school for a full school year.

"Eligible school teacher" means a person who teaches in a hard-to-staff school for a full school year.

"Hard-to-staff school" means an elementary or secondary school that ranks in the upper 20% of schools in this State in the number of teachers who leave their positions. The State Board of Education shall rank schools for this purpose based on student mobility and teacher attrition over a 5-year average.

(b) Subject to appropriation, the Salary Incentive Program for Hard-to-staff Schools is established to provide categorical funding for monetary incentives and bonuses for teachers and school administrators who are employed by school districts designated as having hard-to-staff schools by the State Board of Education. The State Board of Education shall allocate and distribute to qualifying school districts an amount as annually appropriated by the General Assembly for the Salary Incentive Program for Hard-to-staff Schools. The State Board of Education's annual budget must set out by separate line item the appropriation for the program.

(c) Unless otherwise provided by appropriation, each school district's annual allocation under the Salary Incentive Program for Hard-to-staff Schools shall be the sum of the following incentives and bonuses:

(1) An annual payment of $3,000 to be paid to each certificated teacher employed as an eligible school teacher by a school district. The school district shall distribute this payment to each eligible school teacher who teaches at a hard-to-staff school as a single payment or in more than 3 payments.

(2) An annual payment of $5,000 to each certificated principal that is employed as an eligible school principal by a school district. The school district shall distribute this payment to each eligible school principal as a single payment or in not more than 3 payments.

(d) Each regional superintendent of schools shall provide information about the Salary Incentive Program for Hard-to-staff Schools to each individual seeking to register or renew a teaching certificate.

(e) The State Board of Education shall report to the General Assembly on the effectiveness of the Salary Incentive Program for Hard-to-staff Schools on or before September 1, 2009.

(105 ILCS 5/2-3.148 new)

Sec. 2-3.148. Resource management service.

(a) The State Board of Education shall establish and maintain an Internet web-based resource management service for all school districts on or before October 1, 2008.

(b) The resource management service shall identify resource configurations that contribute to improving internal resources for student achievement, provide action-oriented analysis and solutions, and give school districts the ability to explore different scenarios of resource allocation.

(c) Annually, by the first day of October, an Internet web-based preliminary resource allocation report must be generated for each school district and delivered via the Internet to each district superintendent for use by the management team and the exclusive bargaining agents of the school district's employees. This report shall identify potential cost savings or resource reallocation opportunities for the district in 5 core areas of school district spending. These core areas are instruction, operation and maintenance, transportation, foodservice, and central services. This analysis shall show district spending in detailed subcategories compared to demographically or operationally similar peer school districts.

(d) Each school district shall have the ability through the on-line resource allocation report to test various resource allocation scenarios relative to pre-defined peers as well as geographic peers and the most efficient peers statewide. Each district shall have the ability to choose specific combinations of districts for comparison.

(e) The resource management service shall contain, based on the spending and demographic profile of the school district, action-oriented information, such as effective best practices in schools districts, diagnostic questions, and other management or community considerations that may be implemented to capture savings identified in the resource allocation report.

(f) Subject to appropriation, the resource management service may be initiated and maintained through a contract between the State Board of Education and an independent third party specializing in school market research within this State. Costs to establish and maintain this service and train school district personnel in the use of this service shall be supplied by the General Assembly to the State Board of Education through an annual appropriation of no less than $0.75 per student based on the prior year total of enrolled students in public schools in this State. Up to 25% of the annual appropriation may be allocated by the State Board of Education to hire personnel and facilitate data collection. No less than 25% of the annual appropriation shall be utilized by the State Board of Education to deliver training to school district personnel in the use of the management service. Such training shall be delivered by certificated school business officials or State Board of Education trained personnel and may be provided through administrator academies and mentoring programs. The State Board of Education may establish contracts with other organizations to provide such training and mentoring.

In the event that a district does not employ a certificated school business official, a least one employee must be trained and certified in the use of the resource management service. In addition, a representative of the exclusive bargaining agent of the school district's employees shall be invited to be trained and certified. Such resource management service training shall be valid for 2 years.

(g) The State Board of Education shall identify the data required to implement the resource management service and develop annual data reporting instruments designed to collect the information from each school district. Failure of a school district to annually report required data may result in the withholding of general State aid or other resources provided to the school district through the State Board of Education.

(h) Annually, the certificated school business official or resource management service trained employee in each school district shall review and certify that the resource allocation report has been received and reviewed by the management team and the exclusive bargaining agent of the district. Subsequently, a report must be filed with the State Board of Education identifying the considerations that will be studied as a result of such analysis. In addition, any implementation of strategies or reallocation of resources associated with the resource management service must be annually reported to the Board of Education, the exclusive bargaining agent of the school district's employees, and, subsequently, the State Board of Education. The State Board shall annually prepare a cumulative report to be posted electronically containing those initiatives studied and implemented on a statewide basis.

(105 ILCS 5/2-3.149 new)

Sec. 2-3.149. Small school support grant pilot program.

(a) Subject to appropriation, by the beginning of the 2007-2008 school year or as soon as possible thereafter, the State Board of Education shall by rule establish a small school support grant pilot program to provide grants to school districts with at least one school that meets the criteria outlined in this Section and enable those districts to create small school projects serving no more than 500 students. The small school support grant pilot program is subject to appropriation.

(b) School districts selected to receive funds under this Section shall create a small school community within a school that is separate from the school's larger student body.

(c) Grants under this Section shall be awarded pursuant to application to the State Board of Education. The form and manner of applications and the criteria for the award of grants shall be prescribed by the State Board of Education. Any school district with at least one school with an enrollment that exceeds 2,000 students or an enrollment at any grade level of 500 or more students may apply for grant funds.

(d) In year one, a maximum of 25 eligible school districts may receive grants under this Section to fund activities related to planning their small school projects, and no one grant may exceed $250,000.

If a district receiving year-one planning funds is approved to proceed and implement a small school project, then the district may qualify for 4-year, $1,000 per pupil implementation funds to fund the costs of implementing the small school project, including additional staff, administrative, and other operational expenses associated with offering a small school project. Prior to approving implementation funds, the State Board of Education may require districts to submit planning phase progress reports, which may include, among other information, the school enrollment policy, the school administration's objectives, assessment tools used to track student progress, and both a community and parental participation plan. School districts participating in the program must provide quarterly progress reports to the State Board of Education based on Board rule. The State Board of Education is authorized to evaluate schools participating in the program to determine the effectiveness of the program on educational outcomes.

(105 ILCS 5/2-3.151 new)

Sec. 2-3.151. The Science, Technology, Engineering, and Mathematics Education Center Grant Program.

(a) As used in this Section, unless the context otherwise requires:

"Grant program" means the science, technology, engineering and mathematics education center grant program created in this Article.

"Science, technology, engineering, and mathematics education" or "STEM" means learning experiences that integrate innovative curricular, instructional, and assessment strategies and materials, laboratory and mentorship experiences, and authentic inquiry-based and problem centered instruction to stimulate learning in the areas of science, technology, engineering, and mathematics.

"Science, technology, engineering, and mathematics education innovation center" means a center operated by a public school district, charter school, or joint collaborative partnership that provides STEM teaching and learning experiences, materials, laboratory and mentorship experiences, and educational seminars, institutes or workshops for students and teachers.

(b) The State Board of Education, in consultation and partnership with the Illinois Mathematics and Science Academy, the Board of Higher Education, the business community, the entrepreneurial technology community, and professionals, including teachers, in the field of science, technology, engineering, and mathematics shall create a strategic plan for developing a whole systems approach to redesigning prekindergarten through grade 12 STEM education in this State, including, but not limited to, designing and creating integrative teaching and learning networks among science, technology, engineering, and mathematics innovation education centers, university and corporate research facilities, and established STEM laboratories, businesses, and the Illinois Mathematics and Science Academy.

(c) At a minimum, the plan shall provide direction for program design and development, including the following:

(1) continuous generation and sharing of curricular, instructional, assessment, and program development materials and information about STEM teaching and learning throughout the network;

(2) identification of curricular, instructional, and assessment goals that reflect the research in cognition and the development of creativity in STEM fields and the systemic changes in STEM education, so as to be consistent with inquiry-based and problem-centered instruction in science, technology, engineering, and mathematics. Such goals shall also reflect current frameworks, standards, and guidelines, such as those defined by the National Research Council (National Academy of Science), the American Association for the Advancement of Science, the National Council of Teachers of Mathematics, the National Science Teachers Association, and professional associations in STEM fields;

(3) identification of essential teacher competencies and a comprehensive plan for recruiting, mentoring, and retaining STEM teachers, especially those in under-resourced schools and school districts; creation of a community of practice among STEM center educators and other teachers of science, technology, engineering, and mathematics as part of a network of promising practices in teaching; and the establishment of recruitment, mentoring, and retention plans for Golden Apple teachers in STEM fields and Illinois STEM teachers who have received national board certification and are also part of the STEM innovation network;

(4) a statement of desired competencies for STEM learning by students;

(5) a description of recommended courses of action to improve educational experiences, programs, practices, and service;

(6) the improvement of access and availability of STEM courses, especially for rural school districts and particularly to those groups which are traditionally underrepresented through the Illinois Virtual High School; the plan shall include goals for using telecommunications facilities as recommended by the telecommunications advisory commission;

(7) expectations and guidelines for designing and developing a dynamic, creative, and engaged teaching network;

(8) a description of the laboratory and incubator model for the STEM centers;

(9) support for innovation and entrepreneurship in curriculum, instruction, assessment, and professional development; and

(10) cost estimates.

(d) The plan shall provide a framework that enables the teachers, school districts, and institutions of higher education to operate as an integrated system. The plan shall provide innovative mechanisms and incentives to the following:

(1) educational providers, as well as professional associations, business and university partners, and educational receivers (students and teachers) at the prekindergarten through grade 12 and postsecondary levels to design and implement innovative curricula, including experiences, mentorships, institutes, and seminars and to develop new materials and activities for these;

(2) course providers and receivers for leveraging distance learning technologies through the Illinois Virtual High School and applying distance learning instructional design techniques, taking into consideration the work of the telecommunications advisory commission;

(3) prekindergarten through grade 12 teachers to encourage them to take graduate STEM courses and degree programs; such incentives may include a tuition matching program;

(4) appropriate State agencies, federal agencies, professional organizations, public television stations, and businesses and industries to involve them in the development of the strategic plan; and

(5) businesses, industries, and individuals for volunteering their time and community resources.

(e) The plan shall provide a mechanism for incorporating the cost for accomplishing these goals into the ongoing operating budget beginning in 2008.

(f) There is created the Science and Technology Education Center Grant Program to provide development and operating moneys in the form of matching funds for existing or proposed nonprofit STEM education centers. At a minimum, each STEM center that receives a grant shall not only provide STEM education activities to students enrolled in the school district and materials and educational workshops to teachers employed by the school district, but also, as part of generative and innovative teaching and learning network, shall share information with all STEM centers, the Illinois Mathematics and Science Academy, and partner associations or businesses.

(g) School districts may establish science and technology education centers or may contract with regional offices of education, intermediate service centers, public community colleges, non-profit or for-profit education providers, youth service agencies, community-based organizations, or other appropriate entities to establish science and technology education centers within the public school system. Districts may individually operate alternative learning opportunities programs or may collaborate with 2 or more districts or both to create and operate science and technology education centers.

(h) Beginning with the 2007-2008 school year, the State Board of Education shall, subject to available appropriations, annually award one or more science, technology, engineering, and mathematics education center grants for the development and operation of STEM centers.

A school district may apply for a STEM center grant pursuant to procedures and time lines specified by rule of the State Board of Education.

(i) The State Board of Education, in selecting one or more school districts for receipt of a grant, shall give priority to applicants that are geographically located farthest from other STEM centers or applicants that have less opportunity for science, technology, engineering, and mathematics resource support. The State Board shall also consider the following factors:

(1) the facility, equipment, and technology that are or will be provided and the activities and range of programs that are or will be offered by the STEM education center;

(2) the strength and capacity of the school district to work as a network cooperatively with the Illinois Mathematics and Science Academy, other STEM centers, universities and STEM laboratories, businesses, and industries; and

(3) recommendations of the P-20 Council and the Illinois Mathematics and Science Academy.

(j) A STEM center grant shall be payable from moneys appropriated to the STEM Education Center Grant Fund.

The State Board of Education shall specify the amount to be awarded to each school district that is selected to receive a grant. The amount awarded to a new STEM center for start-up costs shall not exceed $1,000,000 for the first fiscal year and may not be renewed. The amount awarded to an operating STEM center for operating costs shall not exceed $500,000 for one fiscal year and shall be renewed annually for 5 consecutive years if the STEM center is meeting its accountability goals and its role as an active partner in a generative teaching and learning network.

(k) Each school district that receives a grant pursuant to the grant program shall demonstrate, prior to receiving any actual moneys, that the center has received or has a written commitment for matching funds from other public or private sources in the amount of a dollar-for-dollar match with the amount of the grant. This requirement may be waived upon application to and approval by the State Board of Education based on a showing of continued need or financial hardship.

(l) The State Board of Education shall promulgate such rules as are required in this Section and such additional rules as may be required for implementation of the grant program.

(m) Each school district that receives a grant through the grant program shall, by the close of each school year for which the grant was awarded, submit to the Illinois Mathematics and Science Academy and the State Board of Education a report specifying the following information:

(1) the manner in which the grant money was used;

(2) the progress made toward achieving the goals and producing the deliverables specified in the grant recipient's application;

(3) any additional entities and businesses with whom the grant recipient has contracted or partnered with the goal of achieving greater integration of information technology education in prekindergarten through grade 12 curriculum;

(4) the recipient school district's plan for continuing the integration of information technology education into the curriculum, regardless of whether the grant is renewed;

(5) the documentation demonstrating effective digital collaboration and networking, technological cooperation and sharing, and personal networking via innovative, entrepreneurial networks;

(6) a description of innovative instructional methods;

(7) evidence of staff training and outreach to teachers beyond those working in the STEM education center; and

(8) any other information specified by rule of the State Board of Education.

(n) Notwithstanding the other provisions of this Section, the State Board of Education need not submit a report for any academic year in which no grants are made through the grant program.

(o) The STEM Education Center Grant Fund is created as a special fund in the State treasury. All money in the Fund shall be used, subject to appropriation, by the State Board of Education for the purpose of funding science, technology, engineering, and mathematics education center grants awarded under this Section. The Fund shall consist of all money appropriated to the Fund by the General Assembly and any gifts, grants, donations, and other moneys received by the State Board of Education for implementation of the grant program. Any unexpended or unencumbered moneys remaining in the Fund at the end of any fiscal year shall remain in the Fund. The primary purpose of the fund is to assist school districts in providing programs designed to improve educational opportunities for students who are interested in pursuing careers in science, technology, engineering, and mathematics.

(p) The State Board of Education may solicit and accept money in the form of gifts, contributions, and grants to be deposited in the STEM Education Center Grant Fund. The acceptance of federal grants for purposes of this Section does not commit State funds nor place an obligation upon the General Assembly to continue the purposes for which the federal funds are made available.

(105 ILCS 5/3-6.5 new)

Sec. 3-6.5. Regional office evaluation and accountability.

(a) The State Board of Education shall establish performance standards and indicators for regional education service centers. Performance standards and indicators must include the following:

(1) district effectiveness and efficiency in districts served resulting from technical assistance and program support;

(2) direct services provided or regionally shared services arranged by the service center that produce more economical and efficient school operations;

(3) direct services provided or regionally shared services arranged by the service center that provide for assistance in core services; and

(4) grants received for implementation of State initiatives and the results achieved by the service center under the terms of the grant contract.

(b) The regional superintendent of schools shall report, in writing, to the county board, on or before January 1 of each year, stating (i) the balance on hand at the time of the last report and all receipts since that date, with the sources from which they were derived; (ii) the amount distributed to each of the school treasurers in the county; and (iii) any balance on hand. At the same time the regional superintendent shall present for inspection his or her books and vouchers for all expenditures, and submit in writing a statement of the condition of the institute fund and of any other funds in his or her care, custody, or control.

(c) Each regional superintendent of schools, whether for a multi-county or for a single county educational service region, shall present for inspection or otherwise make available to the Auditor General, or to the agents designated by the Auditor General, all financial statements, books, vouchers, and other records required to be so presented or made available pursuant to Section 2-3.17a of this Code and the rules of the Auditor General pursuant to that Section.

(d) The State Board of Education shall conduct an annual evaluation of each regional office of education and educational service center and publish its evaluation report online. The State Board of Education shall develop rules that address how the evaluation will be conducted and what factors will be considered. Each evaluation must be published by the State Board of Education in a format that allows for comparison between the regional offices. Each evaluation must include the following:

(1) an audit of the office's finances;

(2) a review of the office's performance on the indicators adopted under subsection (a) of this Section; and

(3) the results of the service evaluation report annually made pursuant to Section 2-3.112 of this Code.

(105 ILCS 5/10-16.10 new)

Sec. 10-16.10. Board member leadership training.

(a) This Section shall apply to all school board members serving pursuant to Section 10-10 of this Code who have been elected on or after the effective date of this amendatory Act of the 95th General Assembly or appointed to fill a vacancy of at least one year's duration on or after the effective date of this amendatory Act of the 95th General Assembly.

(b) Every voting member of a board of education of a school district elected or appointed for a term beginning on or after the effective date of this amendatory Act of the 95th General Assembly shall, on or before September 1 of the first year of his or her term, successfully complete a minimum of 6 hours of professional development leadership training covering topics in education and labor law, financial oversight and accountability, and fiduciary responsibilities of a school board member. Upon demonstration of compliance, no member of a board of education shall be required to repeat this training requirement.

(c) In each succeeding year on or before September 1, each school board member shall successfully complete a minimum of 6 additional hours of professional development leadership training in ethics, open meetings laws, public and student records, powers, duties, and responsibilities of school officials, standards-based education, growth-model assessment, change theory, and data-driven decision-making.

(d) The curriculum used for training on financial oversight, accountability, and fiduciary responsibilities must be approved by the State Board of Education. This curriculum may be offered as part of a general course of training for the purpose of educating board members on their powers, functions, and duties. The training required by this Section may be offered by providers approved by the State Board of Education. In approving other providers for this training, the State Board of Education shall consider the potential provider's understanding of the educational environment and the roles of boards of education and the experience of the provider in delivering such training.

(e) Each board member shall demonstrate compliance with the requirements of this Section by filing with the district superintendent a certificate of completion of such course issued by the provider. Actual and necessary expenses incurred by a board member in complying with the foregoing requirement shall be charged to the school district. If the district superintendent does not receive the certificate of completion on or before August 15 of a given year, he or she shall send the board member notice of this fact.

(f) As long as the district superintendent annually certifies to the State Board of Education, in accordance with rules established by the State Board of Education for this purpose, that the school district has a training program that meets or exceeds the requirements of this Section, the provisions of this Section shall not apply to the school district.

(g) The professional development requirements under this Section may be provided by the school district, the regional office of education, the State's association of school boards, or by colleges, universities, or other professional development providers approved by the State Board of Education.

(h) Failure to meet the requirements in subsection (b) of this Section shall result in ineligibility for or forfeiture of office.

(i) Subject to appropriation, the State Board of Education shall make grants for program support for the requirements of this Section.

(105 ILCS 5/10-17a) (from Ch. 122, par. 10-17a)

Sec. 10-17a. Better schools accountability.

(1) Policy and Purpose. It shall be the policy of the State of Illinois that each school district in this State, including special charter districts and districts subject to the provisions of Article 34, shall submit to parents, taxpayers of such district, the Governor, the General Assembly, and the State Board of Education a school report card assessing the performance of its schools and students. The report card shall be an index of school performance measured against statewide and local standards and will provide information to make prior year comparisons and to set future year targets through the school improvement plan.

(2) Reporting Requirements. Each school district shall prepare a report card in accordance with the guidelines set forth in this Section which describes the performance of its students by school attendance centers and by district and the district's financial resources and use of financial resources. Such report card shall be presented at a regular school board meeting subject to applicable notice requirements, posted on the school district's Internet web site, if the district maintains an Internet web site, made available to a newspaper of general circulation serving the district, and, upon request, sent home to a parent (unless the district does not maintain an Internet web site, in which case the report card shall be sent home to parents without request). If the district posts the report card on its Internet web site, the district shall send a written notice home to parents stating (i) that the report card is available on the web site, (ii) the address of the web site, (iii) that a printed copy of the report card will be sent to parents upon request, and (iv) the telephone number that parents may call to request a printed copy of the report card. In addition, each school district shall submit the completed report card to the office of the district's Regional Superintendent which shall make copies available to any individuals requesting them.

The report card shall be completed and disseminated prior to October 31 in each school year. The report card shall contain, but not be limited to, actual local school attendance center, school district and statewide data indicating the present performance of the school, the State norms and the areas for planned improvement for the school and school district.

(3) (a) The report card shall include the following applicable indicators of attendance center, district, and statewide student performance: percent of students who exceed, meet, or do not meet standards established by the State Board of Education pursuant to Section 2-3.25a; the average scale score for every area tested on the ISAT at every grade level tested on the ISAT; growth model assessment estimates for each district; composite and subtest means on nationally normed achievement tests for college bound students; student attendance rates; chronic truancy rate; dropout rate; graduation rate; and student mobility, turnover shown as a percent of transfers out and a percent of transfers in.

(b) The report card shall include the following descriptions for the school, district, and State: average class size; amount of time per day devoted to mathematics, science, English and social science at primary, middle and junior high school grade levels; number of students taking the Prairie State Achievement Examination under subsection (c) of Section 2-3.64, the number of those students who received a score of excellent, and the average score by school of students taking the examination; pupil-teacher ratio; pupil-administrator ratio; operating expenditure per pupil; district expenditure by fund; average administrator salary; and average teacher salary. The report card shall also specify the amount of money that the district receives from all sources, including without limitation subcategories specifying the amount from local property taxes, the amount from general State aid, the amount from other State funding, and the amount from other income. The report card shall also include the 5 components of the financial rating and the total financial rating scores from the State Financial Profile.

(c) The report card shall include applicable indicators of parental involvement in each attendance center. The parental involvement component of the report card shall include the percentage of students whose parents or guardians have had one or more personal contacts with the students' teachers during the school year concerning the students' education, and such other information, commentary, and suggestions as the school district desires. For the purposes of this paragraph, "personal contact" includes, but is not limited to, parent-teacher conferences, parental visits to school, school visits to home, telephone conversations, and written correspondence. The parental involvement component shall not single out or identify individual students, parents, or guardians by name.

(d) The report card form shall be prepared by the State Board of Education and provided to school districts by the most efficient, economic, and appropriate means.

(e) The report card shall include an indicator describing whether the school district has improved, declined, or remained stable in the aggregate percentage of students making at least one-year's academic growth each year.

(f) The report card shall include a comparison of the following indicators to a benchmark group of at least 10 schools that have similar demographics as defined by the State Board of Education, including the size of the school, the percentage of minority enrollment in the school, per pupil expenditures, and student mobility:

(1) percentage of students in the aggregate making one year's progress in one year's time in reading, writing, and mathematics;

(2) State Financial Profile rating; and

(3) instruction per pupil expenditures.

(Source: P.A. 92-604, eff. 7-1-02; 92-631, eff. 7-11-02; revised 7-26-02.)

(105 ILCS 5/10-17b new)

Sec. 10-17b. Better schools financial accountability.

(a) This Section applies to all school districts, including a school district organized under Article 34 of this Code.

(b) The school authorities of each school district shall obtain an annual audit of its records by an independent certified public accountant or an independent public accountant. The annual audit shall include (i) development of a risk assessment of district operations, including, but not limited to, a review of financial policies and procedures and the testing and evaluation of district internal controls; (ii) an annual review and update of such risk assessment; and (iii) an annual management letter that analyzes significant risk assessment findings, recommends changes for strengthening controls and reducing identified risks, and specifies timeframes for implementation of such recommendations. The report of such annual audit shall be presented to the school board by such accountant.

The school board of a school district with a population exceeding 500,000 inhabitants shall obtain an annual audit by an independent certified public accountant or an independent public accountant. Such a school district audit shall include, but not be limited to, transactions processed at the level of the central administrative office, the district, and the individual school.

(c) A copy of the audit report in form prescribed by the State Board of Education and certified by the accountant shall be furnished to the State Board of Education on or before October 15 following the end of the fiscal year audited, except that such report shall be furnished to the State Board of Education on or before February 15 following the end of the fiscal year audited for school districts with a population exceeding 500,000.

(d) Beginning on July 1, 2008, all school districts, except a school district with a population exceeding 500,000, shall utilize a competitive request for proposal process when contracting for such an annual audit. Beginning on July 1, 2008 for all school districts, no audit engagement shall be for a term longer than 5 consecutive years, provided that nothing in this subsection (d) shall preclude a district, in its discretion, from permitting an independent certified public accountant or an independent public accountant engaged under an existing contract for such services to (i) submit a proposal for such services in response to a request for competitive proposals or (ii) be awarded a contract to provide such services under a request for proposal process. School district procurement policies and procedures adopted pursuant to Section 10-20.21 of this Code shall be amended, if necessary, to be consistent with this requirement.

(e) Notwithstanding any other provisions of this Section, each school district shall (i) prepare a corrective action plan in response to any findings contained in the annual independent audit report or management letter or any final audit report issued by the State comptroller, within 90 days of receipt of such report or letter, and (ii) to the extent practicable, begin implementation of such corrective action plan no later than the end of the next fiscal year.

(f) The State Board of Education shall adopt rules as necessary for the implementation and administration of this Section.

(105 ILCS 5/10-20.20) (from Ch. 122, par. 10-20.20)

Sec. 10-20.20. Protection from suit.) To indemnify and protect school districts, members of school boards, employees, volunteer personnel authorized in Sections 10-22.34, 10-22.34a and 10-22.34b of this Code, mentors of certified staff as authorized in Article 21A and Sections 2-3.53a, 2-3.53b, and 34-18.33 of this Code, and student teachers against civil rights damage claims and suits, constitutional rights damage claims and suits and death and bodily injury and property damage claims and suits, including defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the board or related to any mentoring services provided to certified staff of the school district. Such indemnification and protection shall extend to persons who were members of school boards, employees of school boards, authorized volunteer personnel, mentors of certified staff, or student teachers at the time of the incident from which a claim arises. No agent may be afforded indemnification or protection unless he was a member of a school board, an employee of a board, an authorized volunteer, a mentor of certified staff, or a student teacher at the time of the incident from which the claim arises.

(Source: P.A. 79-210.)

(105 ILCS 5/10-20.40 new)

Sec. 10-20.40. Staff professional development program.

(a) This Section applies to all school districts, including a school district organized under Article 34 of this Code. A school district must use the funds provided in Section 10-20.41 of this Code for staff development plans under this Section or for staff development plans developed in school improvement plans under Section 34-2.4 of this Code. "Staff" means all instructional staff within the district, including principals, other administrators, and other school personnel that have direct contact with students. A district must establish a staff professional development committee to develop the plan, assist building professional development teams in developing a building plan consistent with the goals of the district plan, and evaluate staff development plans at the building level. A majority of the committee and each building's professional development team must be teachers representing various grade levels, subject areas, and special education, selected by the exclusive bargaining representative, if any, of the district's teachers, or by majority vote of the district's or building's teachers, as appropriate, if no exclusive bargaining representative exists. The committee must also include non-teaching staff and administrators.

(b) Staff professional development activities must meet elements (1) through (7) of this subsection (b) and may meet element (8) of this subsection (b):

(1) Focus on the school classroom and research-based strategies that improve student learning.

(2) Provide opportunities for teachers to practice and improve their instructional skills over time.

(3) Provide opportunities for teachers to use student data as part of their daily work to increase student achievement.

(4) Enhance teacher content knowledge and instructional skills.

(5) Align with State and local academic standards.

(6) Provide opportunities to build professional relationships, foster collaboration among principals and other staff who provide instruction, and provide opportunities for teacher-to-teacher mentoring.

(7) Align with the educational improvement plans of a district and building required under Section 10-20.43 of this Code.

(8) Align with the professional development standards of the National Staff Development Council.

(c) Staff professional development activities may include curriculum development and curriculum training programs and activities that provide teachers and other members of building-based teams training to enhance team performance. The school district also may implement other staff professional development activities required by law and activities associated with enhanced teacher compensation models.

(d) Release time provided for teachers to supervise students on field trips and school activities or independent tasks not associated with enhancing the teacher's knowledge and instructional skills, such as preparing report cards, calculating grades, or organizing classroom materials, may not be counted as staff development time that is financed with staff development funds under Section 10-20.41 of this Code.

(e) The plan must include the staff professional development outcomes under subsection (f) of this Section, the means to achieve the outcomes, and procedures for evaluating progress at each school building toward meeting educational outcomes.

(f) The staff professional development committee must adopt a staff professional development plan for improving student achievement. The plan must be consistent with education outcomes that the school district determines. The plan must include ongoing staff professional development activities that contribute toward continuous improvement in achievement of the following goals:

(1) improving student achievement of State and local education standards in all areas of the curriculum by using best practices methods;

(2) effectively meeting the needs of a diverse student population, including at-risk children, children with disabilities, and gifted children, within the regular classroom and other settings;

(3) providing an inclusive curriculum for a racially, ethnically, and culturally diverse student population;

(4) improving staff collaboration and developing mentoring and peer coaching programs for teachers and principals new to the school or district;

(5) effectively teaching and modeling violence prevention policies and curriculum that address early intervention alternatives, issues of harassment, and teach nonviolent alternatives for conflict resolution; and

(6) providing teachers and principals and other members of building-based management teams with appropriate management and financial management skills.

(g) On or before October 15 of each year, the school district and building staff professional development committees shall write and submit a report of staff professional development activities and expenditures for the previous year, in the form and manner determined by the State Superintendent of Education. The report, signed by the district superintendent and staff professional development committee chairperson, must include assessment and evaluation data indicating progress toward district and building staff professional development goals based on teaching and learning outcomes, including the percentage of teachers and other staff involved in instruction who participate in effective staff development activities under subsection (f) of this Section.

The report must break down expenditures for the following:

(1) curriculum development and curriculum training programs; and

(2) staff professional development training models, workshops and conferences, and the cost of releasing teachers or providing substitute teachers for staff professional development purposes.

The report also must indicate whether the expenditures were incurred at the district level or the school building level and whether the school building expenditures were made possible by grants to school buildings that demonstrate exemplary use of allocated staff professional development revenue. These expenditures must be reported using the uniform financial and accounting and reporting standards.

The State Superintendent of Education shall report the staff professional development progress and expenditure data to the General Assembly on or before February 15 of each year.

(105 ILCS 5/10-20.41 new)

Sec. 10-20.41. State funds for staff professional development. Subject to appropriation, a school district shall receive annually from the State an amount equal to $100 times the number of full-time certified teachers and administrators it employs for staff professional development plans, including plans for challenging instructional activities and experiences under Section 10-20.40 of this Code, and for curriculum development and programs, other in-service education, teacher workshops, teacher conferences, the cost of substitute teachers for staff professional development purposes, pre-service and in-service education for special education professionals and paraprofessionals, and other related costs for staff development efforts. Districts may expend an additional amount of revenue for staff professional development based on their needs. Fifty percent of the funds shall be used for building level staff professional development activities, provided that the amount of these funds allocated to each school building shall be based upon the number of teachers in that building. The district may retain 25% to be used for district-wide staff professional development efforts. The remaining 25% of the funds must be used to make grants to school buildings for best practice methods. A grant may be used for any purpose authorized under Section 10-20.40 of this Code or for the costs of curriculum development and programs, other in-service education, teachers' workshops, teacher conferences, substitute teachers for staff professional development purposes, and other staff professional development efforts, as determined by the building professional development team. The building professional development team must demonstrate to the district the extent to which staff at the building have met the outcomes of the program. The district may withhold from a school building a portion of the initial allocation of funds if the staff professional development outcomes are not being met.

(105 ILCS 5/10-20.43 new)

Sec. 10-20.43. Educational improvement plan.

(a) This Section applies to all school districts, including a school district organized under Article 34 of this Code. Each school district shall develop an educational improvement plan that must include measures for improving school district, school building, teacher, and individual student performance. The district shall establish a committee for the purpose of developing the plan. A majority of the committee must be teachers representing various grade levels, subject areas, and special education, selected by the exclusive bargaining representative, if any, of the district's teachers, or by majority vote of the district's teachers, if no exclusive bargaining representative exists. The committee must also include non-teaching staff, parents, and administrators.

(b) The educational improvement plan must be approved by the school board and shall at least include elements (1) through (6) of this subsection (b) and may include elements (7) through (9) of this subsection (b), but only if the exclusive bargaining representative of the district's teachers agrees:

(1) Assessment and evaluation tools to measure student performance and progress.

(2) Performance goals and benchmarks for improvement.

(3) Measures of student attendance and completion rates.

(4) A rigorous professional development system that is aligned with educational improvement and the staff development plan under Section 10-20.40 of this Code, designed to achieve teaching quality improvement and consistent with clearly defined research-based standards.

(5) Measures of student, family, and community involvement and satisfaction.

(6) A data system about students and their academic progress that provides parents and the public with understandable information.

(7) A teacher induction and mentoring program for probationary teachers, as set forth in Article 21A of this Code, that provides continuous learning and sustained teacher support.

(8) A teacher peer assistance and review program to assist tenured teachers for whom assessment of the performance goals and benchmarks set under element (2) of this subsection (b) indicate a need for such interventions.

(9) An objective evaluation program, which may be implemented as an alternative to the evaluation plan set forth in Article 24A of this Code, that includes the following:

(A) individual formative and summative teacher evaluations aligned with the educational improvement plan and the staff development plan under Section 10-20.40 of this Code; and

(B) objective evaluations using multiple criteria conducted by a locally selected and periodically trained evaluation team that understands teaching and learning.

Individual teacher and administrator data based upon student performance and progress shall be confidential and shall not be a public record.

(c) Subject to appropriation, a school district shall receive annually from the State an amount equal to $50 times the number of full-time certified teachers and administrators it employs for developing and implementing its education improvement plan for certified school district employees. Districts may expend an additional amount of revenue for educational improvement based on their needs.

(d) A district that develops a plan under subsections (a) and (b) of this Section must ensure that each school building develops a board-approved educational improvement plan that is aligned with the district educational improvement plan and developed with and agreed to by the exclusive representative of the teachers. While a building plan must be consistent with the district educational improvement plan, it may establish performance goals and benchmarks that meet or exceed those of the district.

(e) A school improvement plan developed under Section 34-2.4 of this Code is deemed to satisfy the requirements of this Section.

(105 ILCS 5/10-21.4a) (from Ch. 122, par. 10-21.4a)

Sec. 10-21.4a. Principals - Duties. To employ principals who hold valid supervisory or administrative certificates who shall supervise the operation of attendance centers as the board shall determine necessary. In an attendance center having fewer than 4 teachers, a head teacher who does not qualify as a principal may be assigned in the place of a principal.

The principal shall assume administrative responsibilities and instructional leadership, under the supervision of the superintendent, and in accordance with reasonable rules and regulations of the board, for the planning, operation and evaluation of the educational program of the attendance area to which he or she is assigned. However, in districts under a Financial Oversight Panel pursuant to Section 1A-8 for violating a financial plan, the duties and responsibilities of principals in relation to the financial and business operations of the district shall be approved by the Panel. In the event the Board refuses or fails to follow a directive or comply with an information request of the Panel, the performance of those duties shall be subject to the direction of the Panel.

School boards shall specify in their formal job description for principals that his or her primary responsibility is in the improvement of instruction. A majority of the time spent by a principal shall be spent on curriculum and staff development through both formal and informal activities, establishing clear lines of communication regarding school goals, accomplishments, practices and policies with parents and teachers.

Unless residency within a school district is made an express condition of a person's employment or continued employment as a principal of that school district at the time of the person's initial employment as a principal of that district, residency within that school district may not at any time thereafter be made a condition of that person's employment or continued employment as a principal of the district, without regard to whether the person's initial employment as a principal of the district began before or begins on or after the effective date of this amendatory Act of 1996 and without regard to whether that person's residency within or outside of the district began or was changed before or begins or changes on or after that effective date. In no event shall residency within a school district be considered in determining the compensation of a principal or the assignment or transfer of a principal to an attendance center of the district.

School boards shall ensure that their principals are evaluated on their instructional leadership ability and their ability to maintain a positive education and learning climate pursuant to Section 24A-15 of this Code.

It shall also be the responsibility of the principal to utilize resources of proper law enforcement agencies when the safety and welfare of students and teachers are threatened by illegal use of drugs and alcohol.

The principal shall submit recommendations to the superintendent concerning the appointment, retention, promotion and assignment of all personnel assigned to the attendance center.

If a principal is absent due to extended illness or leave of absence, an assistant principal may be assigned as acting principal for a period not to exceed 60 school days.

(Source: P.A. 89-572, eff. 7-30-96; 89-622, eff. 8-9-96; 90-14, eff. 7-1-97.)

(105 ILCS 5/10-22.23a) (from Ch. 122, par. 10-22.23a)

Sec. 10-22.23a. Chief school business official. To employ a chief school business official and define the duties of the chief school business official. Any chief school business official first employed on or after July 1, 1977 shall be certificated under Section 21-7.1. For the purposes of this Section, experience as a school business official in an Illinois public school district prior to July 1, 1977 shall be deemed the equivalent of certification. School districts shall employ a chief school business official or collaboratively share in the employment of a chief school business official with another school district.

(Source: P.A. 82-387.)

(105 ILCS 5/14-13.01) (from Ch. 122, par. 14-13.01)

Sec. 14-13.01. Reimbursement payable by State; Amounts. Reimbursement for furnishing special educational facilities in a recognized school to the type of children defined in Section 14-1.02 shall be paid to the school districts in accordance with Section 14-12.01 for each school year ending June 30 by the State Comptroller out of any money in the treasury appropriated for such purposes on the presentation of vouchers by the State Board of Education.

The reimbursement shall be limited to funds expended for construction and maintenance of special education facilities designed and utilized to house instructional programs, diagnostic services, other special education services for children with disabilities and reimbursement as provided in Section 14-13.01. There shall be no reimbursement for construction and maintenance of any administrative facility separated from special education facilities designed and utilized to house instructional programs, diagnostic services and other special education services for children with disabilities.

(a) For children who have not been identified as eligible for special education and for eligible children with physical disabilities, including all eligible children whose placement has been determined under Section 14-8.02 in hospital or home instruction, 1/2 of the teacher's salary but not more than $1,000 annually per child or $8,000 per teacher for the 1985-1986 school year through the 2005-2006 school year and $1,000 per child or $9,000 per teacher for the 2006-2007 school year and for each school year and thereafter, whichever is less. Children to be included in any reimbursement under this paragraph must regularly receive a minimum of one hour of instruction each school day, or in lieu thereof of a minimum of 5 hours of instruction in each school week in order to qualify for full reimbursement under this Section. If the attending physician for such a child has certified that the child should not receive as many as 5 hours of instruction in a school week, however, reimbursement under this paragraph on account of that child shall be computed proportionate to the actual hours of instruction per week for that child divided by 5.

(b) For children described in Section 14-1.02, 4/5 of the cost of transportation for each such child, whom the State Superintendent of Education determined in advance requires special transportation service in order to take advantage of special educational facilities. Transportation costs shall be determined in the same fashion as provided in Section 29-5. For purposes of this subsection (b), the dates for processing claims specified in Section 29-5 shall apply.

(c) For each professional worker excluding those included in subparagraphs (a), (d), (e), and (f) of this Section, the annual sum of $8,000 for the 1985-1986 school year through the 2005-2006 school year and $9,000 for the 2006-2007 school year and for each school year and thereafter.

(d) For one full time qualified director of the special education program of each school district which maintains a fully approved program of special education the annual sum of $8,000 for the 1985-1986 school year through the 2005-2006 school year and $9,000 for the 2006-2007 school year and for each school year and thereafter. Districts participating in a joint agreement special education program shall not receive such reimbursement if reimbursement is made for a director of the joint agreement program.

(e) For each school psychologist as defined in Section 14-1.09 the annual sum of $8,000 for the 1985-1986 school year through the 2005-2006 school year and $9,000 for the 2006-2007 school year and for each school year and thereafter.

(f) For each qualified teacher working in a fully approved program for children of preschool age who are deaf or hard-of-hearing the annual sum of $8,000 for the 1985-1986 school year through the 2005-2006 school year and $9,000 for the 2006-2007 school year and for each school year and thereafter.

(g) For readers, working with blind or partially seeing children 1/2 of their salary but not more than $400 annually per child. Readers may be employed to assist such children and shall not be required to be certified but prior to employment shall meet standards set up by the State Board of Education.

(h) For necessary non-certified employees working in any class or program for children defined in this Article, 1/2 of the salary paid or $2,800 annually per employee through the 2005-2006 school year and $3,500 per employee for the 2006-2007 school year and for each school year thereafter, whichever is less.

The State Board of Education shall set standards and prescribe rules for determining the allocation of reimbursement under this section on less than a full time basis and for less than a school year.

When any school district eligible for reimbursement under this Section operates a school or program approved by the State Superintendent of Education for a number of days in excess of the adopted school calendar but not to exceed 235 school days, such reimbursement shall be increased by 1/185 of the amount or rate paid hereunder for each day such school is operated in excess of 185 days per calendar year.

Notwithstanding any other provision of law, any school district receiving a payment under this Section or under Section 14-7.02, 14-7.02b, or 29-5 of this Code may classify all or a portion of the funds that it receives in a particular fiscal year or from general State aid pursuant to Section 18-8.05 of this Code as funds received in connection with any funding program for which it is entitled to receive funds from the State in that fiscal year (including, without limitation, any funding program referenced in this Section), regardless of the source or timing of the receipt. The district may not classify more funds as funds received in connection with the funding program than the district is entitled to receive in that fiscal year for that program. Any classification by a district must be made by a resolution of its board of education. The resolution must identify the amount of any payments or general State aid to be classified under this paragraph and must specify the funding program to which the funds are to be treated as received in connection therewith. This resolution is controlling as to the classification of funds referenced therein. A certified copy of the resolution must be sent to the State Superintendent of Education. The resolution shall still take effect even though a copy of the resolution has not been sent to the State Superintendent of Education in a timely manner. No classification under this paragraph by a district shall affect the total amount or timing of money the district is entitled to receive under this Code. No classification under this paragraph by a district shall in any way relieve the district from or affect any requirements that otherwise would apply with respect to that funding program, including any accounting of funds by source, reporting expenditures by original source and purpose, reporting requirements, or requirements of providing services.

(Source: P.A. 92-568, eff. 6-26-02; 93-1022, eff. 8-24-04.)

(105 ILCS 5/17-1.5)

Sec. 17-1.5. Limitation of administrative costs.

(a) It is the purpose of this Section to establish limitations on the growth of administrative expenditures in order to maximize the proportion of school district resources available for the instructional programs program, building maintenance, and safety services for the students of each district and to commit to ensuring district resources are maximized to improve student and school achievement.

(b) Definitions. For the purposes of this Section:

"Administrative expenditures" mean the annual expenditures of school districts properly attributable to expenditure functions defined by the rules of the State Board of Education as: 2320 (Executive Administration Services); 2330 (Special Area Administration Services); 2490 (Other Support Services - School Administration); 2510 (Direction of Business Support Services); 2570 (Internal Services); and 2610 (Direction of Central Support Services); provided, however, that "administrative expenditures" shall not include early retirement or other pension system obligations required by State law.

"School district" means all school districts having a population of less than 500,000.

(c) For the 1998-99 school year and each school year thereafter, each school district shall undertake budgetary and expenditure control actions so that the increase in administrative expenditures for that school year over the prior school year does not exceed 5%. School districts with administrative expenditures per pupil in the 25th percentile and below for all districts of the same type, as defined by the State Board of Education, may waive the limitation imposed under this Section for any year following a public hearing and with the affirmative vote of at least two-thirds of the members of the school board of the district. Any district waiving the limitation shall notify the State Board within 45 days of such action.

(d) School districts shall file with the State Board of Education by November 15, 1998 and by each November 15th thereafter a one-page report that lists (i) the actual administrative expenditures for the prior year from the district's audited Annual Financial Report, and (ii) the projected administrative expenditures for the current year from the budget adopted by the school board pursuant to Section 17-1 of this Code.

If a school district that is ineligible to waive the limitation imposed by subsection (c) of this Section by board action exceeds the limitation solely because of circumstances beyond the control of the district and the district has exhausted all available and reasonable remedies to comply with the limitation, the district may request a waiver pursuant to Section 2-3.25g. The waiver application shall specify the amount, nature, and reason for the relief requested, as well as all remedies the district has exhausted to comply with the limitation. Any emergency relief so requested shall apply only to the specific school year for which the request is made. The State Board of Education shall analyze all such waivers submitted and shall recommend that the General Assembly disapprove any such waiver requested that is not due solely to circumstances beyond the control of the district and for which the district has not exhausted all available and reasonable remedies to comply with the limitation. The State Superintendent shall have no authority to impose any sanctions pursuant to this Section for any expenditures for which a waiver has been requested until such waiver has been reviewed by the General Assembly.

If the report and information required under this subsection (d) are not provided by the school district in a timely manner, or are subsequently determined by the State Superintendent of Education to be incomplete or inaccurate, the State Superintendent shall notify the district in writing of reporting deficiencies. The school district shall, within 60 days of the notice, address the reporting deficiencies identified.

(d-5) Notwithstanding any other provision of this Section, for a school district receiving general State financial aid due to the district under Section 18-8.05 of this Code in any school year, the school district's administrative expenditures, excluding expenditures made under Sections 2-3.64b, 2-3.147, 10-17b, 10-20.40, and 10-22.23a of this Code, may not exceed 5% for that school year.

(e) If the State Superintendent determines that a school district has failed to comply with the administrative expenditure limitation imposed in subsection (c) or (d-5) of this Section, the State Superintendent shall notify the district of the violation and direct the district to undertake corrective action to bring the district's budget into compliance with the administrative expenditure limitation. The district shall, within 60 days of the notice, provide adequate assurance to the State Superintendent that appropriate corrective actions have been or will be taken. If the district fails to provide adequate assurance or fails to undertake the necessary corrective actions, the State Superintendent may impose progressive sanctions against the district that may culminate in withholding all subsequent payments of general State aid due the district under Section 18-8.05 of this Code until the assurance is provided or the corrective actions taken.

(f) The State Superintendent shall publish a list each year of the school districts that violate the limitation imposed by subsection (c) or (d-5) of this Section and a list of the districts that waive the limitation by board action as provided in subsection (c) of this Section.

(Source: P.A. 90-548, eff. 1-1-98; 90-653, eff. 7-29-98.)

(105 ILCS 5/18-8.05)

Sec. 18-8.05. Basis for apportionment of general State financial aid and supplemental general State aid to the common schools for the 1998-1999 and subsequent school years.

(A) General Provisions.

(1) The provisions of this Section apply to the 1998-1999 and subsequent school years. The system of general State financial aid provided for in this Section is designed to assure that, through a combination of State financial aid and required local resources, the financial support provided each pupil in Average Daily Attendance equals or exceeds a prescribed per pupil Foundation Level. This formula approach imputes a level of per pupil Available Local Resources and provides for the basis to calculate a per pupil level of general State financial aid that, when added to Available Local Resources, equals or exceeds the Foundation Level. The amount of per pupil general State financial aid for school districts, in general, varies in inverse relation to Available Local Resources. Per pupil amounts are based upon each school district's Average Daily Attendance as that term is defined in this Section.

(2) In addition to general State financial aid, school districts with specified levels or concentrations of pupils from low income households are eligible to receive supplemental general State financial aid grants as provided pursuant to subsection (H). The supplemental State aid grants provided for school districts under subsection (H) shall be appropriated for distribution to school districts as part of the same line item in which the general State financial aid of school districts is appropriated under this Section.

(3) To receive financial assistance under this Section, school districts are required to file claims with the State Board of Education, subject to the following requirements:

(a) Any school district which fails for any given school year to maintain school as required by law, or to maintain a recognized school is not eligible to file for such school year any claim upon the Common School Fund. In case of nonrecognition of one or more attendance centers in a school district otherwise operating recognized schools, the claim of the district shall be reduced in the proportion which the Average Daily Attendance in the attendance center or centers bear to the Average Daily Attendance in the school district. A "recognized school" means any public school which meets the standards as established for recognition by the State Board of Education. A school district or attendance center not having recognition status at the end of a school term is entitled to receive State aid payments due upon a legal claim which was filed while it was recognized.

(b) School district claims filed under this Section are subject to Sections 18-9 and 18-12, except as otherwise provided in this Section.

(c) If a school district operates a full year school under Section 10-19.1, the general State aid to the school district shall be determined by the State Board of Education in accordance with this Section as near as may be applicable.

(d) (Blank).

(4) Except as provided in subsections (H) and (L), the board of any district receiving any of the grants provided for in this Section may apply those funds to any fund so received for which that board is authorized to make expenditures by law.

School districts are not required to exert a minimum Operating Tax Rate in order to qualify for assistance under this Section.

(5) As used in this Section the following terms, when capitalized, shall have the meaning ascribed herein:

(a) "Average Daily Attendance": A count of pupil attendance in school, averaged as provided for in subsection (C) and utilized in deriving per pupil financial support levels.

(b) "Available Local Resources": A computation of local financial support, calculated on the basis of Average Daily Attendance and derived as provided pursuant to subsection (D).

(c) "Corporate Personal Property Replacement Taxes": Funds paid to local school districts pursuant to "An Act in relation to the abolition of ad valorem personal property tax and the replacement of revenues lost thereby, and amending and repealing certain Acts and parts of Acts in connection therewith", certified August 14, 1979, as amended (Public Act 81-1st S.S.-1).

(d) "Foundation Level": A prescribed level of per pupil financial support as provided for in subsection (B).

(e) "Operating Tax Rate": All school district property taxes extended for all purposes, except Bond and Interest, Summer School, Rent, Capital Improvement, and Vocational Education Building purposes.

(B) Foundation Level.

(1) The Foundation Level is a figure established by the State representing the minimum level of per pupil financial support that should be available to provide for the basic education of each pupil in Average Daily Attendance. As set forth in this Section, each school district is assumed to exert a sufficient local taxing effort such that, in combination with the aggregate of general State financial aid provided the district, an aggregate of State and local resources are available to meet the basic education needs of pupils in the district.

(2) For the 1998-1999 school year, the Foundation Level of support is $4,225. For the 1999-2000 school year, the Foundation Level of support is $4,325. For the 2000-2001 school year, the Foundation Level of support is $4,425. For the 2001-2002 school year and 2002-2003 school year, the Foundation Level of support is $4,560. For the 2003-2004 school year, the Foundation Level of support is $4,810. For the 2004-2005 school year, the Foundation Level of support is $4,964. For the 2005-2006 school year, the Foundation Level of support is $5,164. For the 2006-2007 school year, the Foundation Level of support is $5,334.

(3) For the 2007-2008 2006-2007 school year and each school year thereafter, the Foundation Level of support is $5,888 $5,334 or such greater amount as may be established by law by the General Assembly.

(C) Average Daily Attendance.

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

(2) The Average Daily Attendance figures utilized in subsection (E) shall be the requisite attendance data for the school year immediately preceding the school year for which general State aid is being calculated or the average of the attendance data for the 3 preceding school years, whichever is greater. The Average Daily Attendance figures utilized in subsection (H) shall be the requisite attendance data for the school year immediately preceding the school year for which general State aid is being calculated.

(D) Available Local Resources.

(1) For purposes of calculating general State aid pursuant to subsection (E), a representation of Available Local Resources per pupil, as that term is defined and determined in this subsection, shall be utilized. Available Local Resources per pupil shall include a calculated dollar amount representing local school district revenues from local property taxes and from Corporate Personal Property Replacement Taxes, expressed on the basis of pupils in Average Daily Attendance. Calculation of Available Local Resources shall exclude any tax amnesty funds received as a result of Public Act 93-26.

(2) In determining a school district's revenue from local property taxes, the State Board of Education shall utilize the equalized assessed valuation of all taxable property of each school district as of September 30 of the previous year. The equalized assessed valuation utilized shall be obtained and determined as provided in subsection (G).

(3) For school districts maintaining grades kindergarten through 12, local property tax revenues per pupil shall be calculated as the product of the applicable equalized assessed valuation for the district multiplied by 3.00%, and divided by the district's Average Daily Attendance figure. For school districts maintaining grades kindergarten through 8, local property tax revenues per pupil shall be calculated as the product of the applicable equalized assessed valuation for the district multiplied by 2.30%, and divided by the district's Average Daily Attendance figure. For school districts maintaining grades 9 through 12, local property tax revenues per pupil shall be the applicable equalized assessed valuation of the district multiplied by 1.05%, and divided by the district's Average Daily Attendance figure.

For partial elementary unit districts created pursuant to Article 11E of this Code, local property tax revenues per pupil shall be calculated as the product of the equalized assessed valuation for property within the elementary and high school classification of the partial elementary unit district multiplied by 2.06% and divided by the Average Daily Attendance figure for grades kindergarten through 8, plus the product of the equalized assessed valuation for property within the high school only classification of the partial elementary unit district multiplied by 0.94% and divided by the Average Daily Attendance figure for grades 9 through 12.

(4) The Corporate Personal Property Replacement Taxes paid to each school district during the calendar year 2 years before the calendar year in which a school year begins, divided by the Average Daily Attendance figure for that district, shall be added to the local property tax revenues per pupil as derived by the application of the immediately preceding paragraph (3). The sum of these per pupil figures for each school district shall constitute Available Local Resources as that term is utilized in subsection (E) in the calculation of general State aid.

(E) Computation of General State Aid.

(1) For each school year, the amount of general State aid allotted to a school district shall be computed by the State Board of Education as provided in this subsection.

(2) For any school district for which Available Local Resources per pupil is less than the product of 0.93 times the Foundation Level, general State aid for that district shall be calculated as an amount equal to the Foundation Level minus Available Local Resources, multiplied by the Average Daily Attendance of the school district.

(3) For any school district for which Available Local Resources per pupil is equal to or greater than the product of 0.93 times the Foundation Level and less than the product of 1.75 times the Foundation Level, the general State aid per pupil shall be a decimal proportion of the Foundation Level derived using a linear algorithm. Under this linear algorithm, the calculated general State aid per pupil shall decline in direct linear fashion from 0.07 times the Foundation Level for a school district with Available Local Resources equal to the product of 0.93 times the Foundation Level, to 0.05 times the Foundation Level for a school district with Available Local Resources equal to the product of 1.75 times the Foundation Level. The allocation of general State aid for school districts subject to this paragraph 3 shall be the calculated general State aid per pupil figure multiplied by the Average Daily Attendance of the school district.

(4) For any school district for which Available Local Resources per pupil equals or exceeds the product of 1.75 times the Foundation Level, the general State aid for the school district shall be calculated as the product of $218 multiplied by the Average Daily Attendance of the school district.

(5) The amount of general State aid allocated to a school district for the 1999-2000 school year meeting the requirements set forth in paragraph (4) of subsection (G) shall be increased by an amount equal to the general State aid that would have been received by the district for the 1998-1999 school year by utilizing the Extension Limitation Equalized Assessed Valuation as calculated in paragraph (4) of subsection (G) less the general State aid allotted for the 1998-1999 school year. This amount shall be deemed a one time increase, and shall not affect any future general State aid allocations.

(F) Compilation of Average Daily Attendance.

(1) Each school district shall, by July 1 of each year, submit to the State Board of Education, on forms prescribed by the State Board of Education, attendance figures for the school year that began in the preceding calendar year. The attendance information so transmitted shall identify the average daily attendance figures for each month of the school year. Beginning with the general State aid claim form for the 2002-2003 school year, districts shall calculate Average Daily Attendance as provided in subdivisions (a), (b), and (c) of this paragraph (1).

(a) In districts that do not hold year-round classes, days of attendance in August shall be added to the month of September and any days of attendance in June shall be added to the month of May.

(b) In districts in which all buildings hold year-round classes, days of attendance in July and August shall be added to the month of September and any days of attendance in June shall be added to the month of May.

(c) In districts in which some buildings, but not all, hold year-round classes, for the non-year-round buildings, days of attendance in August shall be added to the month of September and any days of attendance in June shall be added to the month of May. The average daily attendance for the year-round buildings shall be computed as provided in subdivision (b) of this paragraph (1). To calculate the Average Daily Attendance for the district, the average daily attendance for the year-round buildings shall be multiplied by the days in session for the non-year-round buildings for each month and added to the monthly attendance of the non-year-round buildings.

Except as otherwise provided in this Section, days of attendance by pupils shall be counted only for sessions of not less than 5 clock hours of school work per day under direct supervision of: (i) teachers, or (ii) non-teaching personnel or volunteer personnel when engaging in non-teaching duties and supervising in those instances specified in subsection (a) of Section 10-22.34 and paragraph 10 of Section 34-18, with pupils of legal school age and in kindergarten and grades 1 through 12.

Days of attendance by tuition pupils shall be accredited only to the districts that pay the tuition to a recognized school.

(2) Days of attendance by pupils of less than 5 clock hours of school shall be subject to the following provisions in the compilation of Average Daily Attendance.

(a) Pupils regularly enrolled in a public school for only a part of the school day may be counted on the basis of 1/6 day for every class hour of instruction of 40 minutes or more attended pursuant to such enrollment, unless a pupil is enrolled in a block-schedule format of 80 minutes or more of instruction, in which case the pupil may be counted on the basis of the proportion of minutes of school work completed each day to the minimum number of minutes that school work is required to be held that day.

(b) Days of attendance may be less than 5 clock hours on the opening and closing of the school term, and upon the first day of pupil attendance, if preceded by a day or days utilized as an institute or teachers' workshop.

(c) A session of 4 or more clock hours may be counted as a day of attendance upon certification by the regional superintendent, and approved by the State Superintendent of Education to the extent that the district has been forced to use daily multiple sessions.

(d) A session of 3 or more clock hours may be counted as a day of attendance (1) when the remainder of the school day or at least 2 hours in the evening of that day is utilized for an in-service training program for teachers, up to a maximum of 5 days per school year of which a maximum of 4 days of such 5 days may be used for parent-teacher conferences, provided a district conducts an in-service training program for teachers which has been approved by the State Superintendent of Education; or, in lieu of 4 such days, 2 full days may be used, in which event each such day may be counted as a day of attendance; and (2) when days in addition to those provided in item (1) are scheduled by a school pursuant to its school improvement plan adopted under Article 34 or its revised or amended school improvement plan adopted under Article 2, provided that (i) such sessions of 3 or more clock hours are scheduled to occur at regular intervals, (ii) the remainder of the school days in which such sessions occur are utilized for in-service training programs or other staff development activities for teachers, and (iii) a sufficient number of minutes of school work under the direct supervision of teachers are added to the school days between such regularly scheduled sessions to accumulate not less than the number of minutes by which such sessions of 3 or more clock hours fall short of 5 clock hours. Any full days used for the purposes of this paragraph shall not be considered for computing average daily attendance. Days scheduled for in-service training programs, staff development activities, or parent-teacher conferences may be scheduled separately for different grade levels and different attendance centers of the district.

(e) A session of not less than one clock hour of teaching hospitalized or homebound pupils on-site or by telephone to the classroom may be counted as 1/2 day of attendance, however these pupils must receive 4 or more clock hours of instruction to be counted for a full day of attendance.

(f) A session of at least 4 clock hours may be counted as a day of attendance for first grade pupils, and pupils in full day kindergartens, and a session of 2 or more hours may be counted as 1/2 day of attendance by pupils in kindergartens which provide only 1/2 day of attendance.

(g) For children with disabilities who are below the age of 6 years and who cannot attend 2 or more clock hours because of their disability or immaturity, a session of not less than one clock hour may be counted as 1/2 day of attendance; however for such children whose educational needs so require a session of 4 or more clock hours may be counted as a full day of attendance.

(h) A recognized kindergarten which provides for only 1/2 day of attendance by each pupil shall not have more than 1/2 day of attendance counted in any one day. However, kindergartens may count 2 1/2 days of attendance in any 5 consecutive school days. When a pupil attends such a kindergarten for 2 half days on any one school day, the pupil shall have the following day as a day absent from school, unless the school district obtains permission in writing from the State Superintendent of Education. Attendance at kindergartens which provide for a full day of attendance by each pupil shall be counted the same as attendance by first grade pupils. Only the first year of attendance in one kindergarten shall be counted, except in case of children who entered the kindergarten in their fifth year whose educational development requires a second year of kindergarten as determined under the rules and regulations of the State Board of Education.

(i) On the days when the Prairie State Achievement Examination is administered under subsection (c) of Section 2-3.64 of this Code, the day of attendance for a pupil whose school day must be shortened to accommodate required testing procedures may be less than 5 clock hours and shall be counted towards the 176 days of actual pupil attendance required under Section 10-19 of this Code, provided that a sufficient number of minutes of school work in excess of 5 clock hours are first completed on other school days to compensate for the loss of school work on the examination days.

(G) Equalized Assessed Valuation Data.

(1) For purposes of the calculation of Available Local Resources required pursuant to subsection (D), the State Board of Education shall secure from the Department of Revenue the value as equalized or assessed by the Department of Revenue of all taxable property of every school district, together with (i) the applicable tax rate used in extending taxes for the funds of the district as of September 30 of the previous year and (ii) the limiting rate for all school districts subject to property tax extension limitations as imposed under the Property Tax Extension Limitation Law.

The Department of Revenue shall add to the equalized assessed value of all taxable property of each school district situated entirely or partially within a county that is or was subject to the alternative general homestead exemption provisions of Section 15-176 of the Property Tax Code (a) an amount equal to the total amount by which the homestead exemption allowed under Section 15-176 of the Property Tax Code for real property situated in that school district exceeds the total amount that would have been allowed in that school district if the maximum reduction under Section 15-176 was (i) $4,500 in Cook County or $3,500 in all other counties in tax year 2003 or (ii) $5,000 in all counties in tax year 2004 and thereafter and (b) an amount equal to the aggregate amount for the taxable year of all additional exemptions under Section 15-175 of the Property Tax Code for owners with a household income of $30,000 or less. The county clerk of any county that is or was subject to the alternative general homestead exemption provisions of Section 15-176 of the Property Tax Code shall annually calculate and certify to the Department of Revenue for each school district all homestead exemption amounts under Section 15-176 of the Property Tax Code and all amounts of additional exemptions under Section 15-175 of the Property Tax Code for owners with a household income of $30,000 or less. It is the intent of this paragraph that if the general homestead exemption for a parcel of property is determined under Section 15-176 of the Property Tax Code rather than Section 15-175, then the calculation of Available Local Resources shall not be affected by the difference, if any, between the amount of the general homestead exemption allowed for that parcel of property under Section 15-176 of the Property Tax Code and the amount that would have been allowed had the general homestead exemption for that parcel of property been determined under Section 15-175 of the Property Tax Code. It is further the intent of this paragraph that if additional exemptions are allowed under Section 15-175 of the Property Tax Code for owners with a household income of less than $30,000, then the calculation of Available Local Resources shall not be affected by the difference, if any, because of those additional exemptions.

This equalized assessed valuation, as adjusted further by the requirements of this subsection, shall be utilized in the calculation of Available Local Resources.

(2) The equalized assessed valuation in paragraph (1) shall be adjusted, as applicable, in the following manner:

(a) For the purposes of calculating State aid under this Section, with respect to any part of a school district within a redevelopment project area in respect to which a municipality has adopted tax increment allocation financing pursuant to the Tax Increment Allocation Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11 of the Illinois Municipal Code or the Industrial Jobs Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the Illinois Municipal Code, no part of the current equalized assessed valuation of real property located in any such project area which is attributable to an increase above the total initial equalized assessed valuation of such property shall be used as part of the equalized assessed valuation of the district, until such time as all redevelopment project costs have been paid, as provided in Section 11-74.4-8 of the Tax Increment Allocation Redevelopment Act or in Section 11-74.6-35 of the Industrial Jobs Recovery Law. For the purpose of the equalized assessed valuation of the district, the total initial equalized assessed valuation or the current equalized assessed valuation, whichever is lower, shall be used until such time as all redevelopment project costs have been paid.

(b) The real property equalized assessed valuation for a school district shall be adjusted by subtracting from the real property value as equalized or assessed by the Department of Revenue for the district an amount computed by dividing the amount of any abatement of taxes under Section 18-170 of the Property Tax Code by 3.00% for a district maintaining grades kindergarten through 12, by 2.30% for a district maintaining grades kindergarten through 8, or by 1.05% for a district maintaining grades 9 through 12 and adjusted by an amount computed by dividing the amount of any abatement of taxes under subsection (a) of Section 18-165 of the Property Tax Code by the same percentage rates for district type as specified in this subparagraph (b).

(3) For the 1999-2000 school year and each school year thereafter, if a school district meets all of the criteria of this subsection (G)(3), the school district's Available Local Resources shall be calculated under subsection (D) using the district's Extension Limitation Equalized Assessed Valuation as calculated under this subsection (G)(3).

For purposes of this subsection (G)(3) the following terms shall have the following meanings:

"Budget Year": The school year for which general State aid is calculated and awarded under subsection (E).

"Base Tax Year": The property tax levy year used to calculate the Budget Year allocation of general State aid.

"Preceding Tax Year": The property tax levy year immediately preceding the Base Tax Year.

"Base Tax Year's Tax Extension": The product of the equalized assessed valuation utilized by the County Clerk in the Base Tax Year multiplied by the limiting rate as calculated by the County Clerk and defined in the Property Tax Extension Limitation Law.

"Preceding Tax Year's Tax Extension": The product of the equalized assessed valuation utilized by the County Clerk in the Preceding Tax Year multiplied by the Operating Tax Rate as defined in subsection (A).

"Extension Limitation Ratio": A numerical ratio, certified by the County Clerk, in which the numerator is the Base Tax Year's Tax Extension and the denominator is the Preceding Tax Year's Tax Extension.

"Operating Tax Rate": The operating tax rate as defined in subsection (A).

If a school district is subject to property tax extension limitations as imposed under the Property Tax Extension Limitation Law, the State Board of Education shall calculate the Extension Limitation Equalized Assessed Valuation of that district. For the 1999-2000 school year, the Extension Limitation Equalized Assessed Valuation of a school district as calculated by the State Board of Education shall be equal to the product of the district's 1996 Equalized Assessed Valuation and the district's Extension Limitation Ratio. For the 2000-2001 school year and each school year thereafter, the Extension Limitation Equalized Assessed Valuation of a school district as calculated by the State Board of Education shall be equal to the product of the Equalized Assessed Valuation last used in the calculation of general State aid and the district's Extension Limitation Ratio. If the Extension Limitation Equalized Assessed Valuation of a school district as calculated under this subsection (G)(3) is less than the district's equalized assessed valuation as calculated pursuant to subsections (G)(1) and (G)(2), then for purposes of calculating the district's general State aid for the Budget Year pursuant to subsection (E), that Extension Limitation Equalized Assessed Valuation shall be utilized to calculate the district's Available Local Resources under subsection (D).

Partial elementary unit districts created in accordance with Article 11E of this Code shall not be eligible for the adjustment in this subsection (G)(3) until the fifth year following the effective date of the reorganization.

(4) For the purposes of calculating general State aid for the 1999-2000 school year only, if a school district experienced a triennial reassessment on the equalized assessed valuation used in calculating its general State financial aid apportionment for the 1998-1999 school year, the State Board of Education shall calculate the Extension Limitation Equalized Assessed Valuation that would have been used to calculate the district's 1998-1999 general State aid. This amount shall equal the product of the equalized assessed valuation used to calculate general State aid for the 1997-1998 school year and the district's Extension Limitation Ratio. If the Extension Limitation Equalized Assessed Valuation of the school district as calculated under this paragraph (4) is less than the district's equalized assessed valuation utilized in calculating the district's 1998-1999 general State aid allocation, then for purposes of calculating the district's general State aid pursuant to paragraph (5) of subsection (E), that Extension Limitation Equalized Assessed Valuation shall be utilized to calculate the district's Available Local Resources.

(5) For school districts having a majority of their equalized assessed valuation in any county except Cook, DuPage, Kane, Lake, McHenry, or Will, if the amount of general State aid allocated to the school district for the 1999-2000 school year under the provisions of subsection (E), (H), and (J) of this Section is less than the amount of general State aid allocated to the district for the 1998-1999 school year under these subsections, then the general State aid of the district for the 1999-2000 school year only shall be increased by the difference between these amounts. The total payments made under this paragraph (5) shall not exceed $14,000,000. Claims shall be prorated if they exceed $14,000,000.

(H) Supplemental General State Aid.

(1) In addition to the general State aid a school district is allotted pursuant to subsection (E), qualifying school districts shall receive a grant, paid in conjunction with a district's payments of general State aid, for supplemental general State aid based upon the concentration level of children from low-income households within the school district. Supplemental State aid grants provided for school districts under this subsection shall be appropriated for distribution to school districts as part of the same line item in which the general State financial aid of school districts is appropriated under this Section. If the appropriation in any fiscal year for general State aid and supplemental general State aid is insufficient to pay the amounts required under the general State aid and supplemental general State aid calculations, then the State Board of Education shall ensure that each school district receives the full amount due for general State aid and the remainder of the appropriation shall be used for supplemental general State aid, which the State Board of Education shall calculate and pay to eligible districts on a prorated basis.

(1.5) This paragraph (1.5) applies only to those school years preceding the 2003-2004 school year. For purposes of this subsection (H), the term "Low-Income Concentration Level" shall be the low-income eligible pupil count from the most recently available federal census divided by the Average Daily Attendance of the school district. If, however, (i) the percentage decrease from the 2 most recent federal censuses in the low-income eligible pupil count of a high school district with fewer than 400 students exceeds by 75% or more the percentage change in the total low-income eligible pupil count of contiguous elementary school districts, whose boundaries are coterminous with the high school district, or (ii) a high school district within 2 counties and serving 5 elementary school districts, whose boundaries are coterminous with the high school district, has a percentage decrease from the 2 most recent federal censuses in the low-income eligible pupil count and there is a percentage increase in the total low-income eligible pupil count of a majority of the elementary school districts in excess of 50% from the 2 most recent federal censuses, then the high school district's low-income eligible pupil count from the earlier federal census shall be the number used as the low-income eligible pupil count for the high school district, for purposes of this subsection (H). The changes made to this paragraph (1) by Public Act 92-28 shall apply to supplemental general State aid grants for school years preceding the 2003-2004 school year that are paid in fiscal year 1999 or thereafter and to any State aid payments made in fiscal year 1994 through fiscal year 1998 pursuant to subsection 1(n) of Section 18-8 of this Code (