State of Illinois
90th General Assembly
Legislation

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90_SB0563

      SEE INDEX
               Creates the Local Option School District Income  Tax
      Act  and  amends  the School Code, the State Finance Act, the
      Illinois  Income  Tax  Act,  and  the  Property   Tax   Code.
      Authorizes school districts by referendum to impose an income
      tax  on  individuals resident of the district.  Provides that
      with referendum approval, the income tax shall be  levied  at
      an  annual  rate,  adjusted  each year, that will produce for
      distribution to the district in each calendar year an  amount
      equal  to the corresponding 50% reduction that is required to
      be made in the annual extension of the  real  property  taxes
      that  are levied by the district against residential property
      for   educational,   operations    and    maintenance,    and
      transportation   purposes   and   that   are   collected  and
      distributed to the district in  the  same  calendar  year  in
      which  the corresponding income tax revenues are distributed.
      Provides for a referendum repeal of the tax.    Provides  for
      the  manner of levying and collecting the tax and for deposit
      of the income tax revenues in the educational, operations and
      maintenance, and transportation  funds  of  the  district  in
      proportion  to  the  respective amounts by which the taxes in
      those funds are abated.   Provides for  disbursement  of  the
      tax  to  school  districts by the State Treasurer. Amends the
      Property Tax Extension Limitation Law  to  exclude  from  the
      definition  of  "aggregate  extension" school district levies
      made to cover amounts lost because of the repeal of the local
      income tax for schools as formerly imposed  by  the  district
      under  the    Local  Option  School  District Income Tax Act.
      Changes the school State aid formula to provide that any  tax
      abatement  required  under  the  Local Option School District
      Income  Tax  Act  shall  be  disregarded  in  computing   the
      operating  tax rate of school districts for State aid formula
      purposes and shall not otherwise affect  the  computation  or
      distribution  of  State aid for school districts.   Effective
      immediately.
                                                     LRB9002616THpk
                                               LRB9002616THpk
 1        AN ACT relating to school district income taxes, amending
 2    named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  1.   Short  title.  This Act may be cited as the
 6    Local Option School District Income Tax Act.
 7        Section 5.  Definitions.  In this Act:
 8        "Taxable income" means that portion of the net income  of
 9    a  taxpayer that is allocable and apportionable to the school
10    district of which  the  taxpayer  is  a  resident  under  the
11    provisions  of  this  Act  and  the  regulations  promulgated
12    thereunder.
13        "Net  income"  means  the  net  income  of  a taxpayer as
14    defined and as determined and computed for the  taxable  year
15    under the provisions of the Illinois Income Tax Act.
16        "Taxable  year"  means  the  calendar year, or the fiscal
17    year ending in such calendar year, upon the  basis  of  which
18    taxable  income is computed under this Act, and also includes
19    a fractional part of a year for which income is earned.
20        "Resident"  means  an  individual  who  is  in  a  school
21    district for other than a temporary transitory purpose during
22    the taxable year, or who is domiciled in that school district
23    but is absent therefrom for a temporary or transitory purpose
24    during the taxable year.
25        "Residential  property"  means  (i)  property   that   is
26    "homestead  property" within the meaning of Section 15-175 of
27    the Property Tax Code, and (ii) any other real property  that
28    is  used solely for residential purposes and that is improved
29    with a structure that  consists  only  of  not  more  than  6
30    residential  units,  at least one of which is occupied as the
31    principal dwelling place  of  the  owner  or  owners  of  the
                            -2-                LRB9002616THpk
 1    property.
 2        Section  10.  Referendum; imposition of tax; limitations.
 3    The school board of each school district,  including  special
 4    charter  districts  as  defined  in Section 1-3 of the School
 5    Code and school districts organized under Article 34 of  that
 6    Code,  may  by  proper  resolution or shall upon receipt of a
 7    petition of 5% of the voters who voted in the school district
 8    in the last gubernatorial election cause to be  submitted  to
 9    the  voters  of  the  school district at the general election
10    held  in  November  of  an  even-numbered  year  or  at   the
11    nonpartisan  election  held  in  November  of an odd-numbered
12    year,  in  accordance  with  the  general  election  law,   a
13    proposition  to  authorize  an  annual  local  income tax for
14    schools,  measured  as  a  non-graduated  percentage  of  the
15    taxable income of individuals resident of  the  district  and
16    imposed  only in increments of 0.125%, to be imposed on every
17    such individual on the  privilege  of  earning  or  receiving
18    income  as  a  resident of the school district; provided that
19    the tax shall not be imposed on income earned or received  by
20    an  individual during any period in which the individual is a
21    nonresident of the school district even though the income  is
22    earned  or  received in that school district.  The resolution
23    shall be adopted or the petition shall be  filed  under  this
24    Section not less than 90 days before the date of the November
25    election  at  which the proposition is to be submitted to the
26    voters of the school district.
27        The resolution or petition to submit the  proposition  to
28    the  voters  of  the district shall: (i) specify an estimated
29    initial rate at which the tax is proposed to be imposed; (ii)
30    state that the actual  initial  rate  at  which  the  tax  is
31    imposed  shall  be  computed by the Department of Revenue and
32    shall be adjusted every 12 months thereafter; and (iii) state
33    that the actual initial rate and the  rate  as  adjusted  and
34    imposed for each succeeding 12 month period shall be computed
                            -3-                LRB9002616THpk
 1    by  the  Department  of Revenue in such manner as to produce,
 2    from the tax imposed under this  Act,  aggregate  income  tax
 3    revenues  for  distribution  to  the  school district in each
 4    calendar year that are equal, as near as may be, to  the  50%
 5    abatement  that  the county clerk is required to make in each
 6    such calendar year, as provided in Section 40,  in  extending
 7    against  residential  property  located in the district taxes
 8    levied by the district during the preceding calendar year for
 9    the   educational,   operations    and    maintenance,    and
10    transportation  purposes  of  the  district.  The proposition
11    shall state the approximate initial rate at which the tax  is
12    proposed  to  be  imposed,  as  computed by the Department of
13    Revenue under subsection (b) of Section 15, and shall  be  in
14    substantially the following form:
15             Shall  School  District  No.  ....  be authorized to
16        impose a local income  tax  for  schools  at  an  initial
17        annual  rate  of approximately ...% on the taxable income
18        earned or received by individuals who  are  residents  of
19        the  school district, if the actual initial rate at which
20        the  tax  is  imposed  is  adjusted   every   12   months
21        thereafter,  and  if the actual initial rate and the rate
22        as adjusted and imposed  for  each  succeeding  12  month
23        period  are computed by the Department of Revenue in such
24        manner as to produce aggregate income  tax  revenues  for
25        distribution to the school district in each calendar year
26        that  are  equal,  as  near as may be, to a 50% reduction
27        that would then have to be made  in  each  such  calendar
28        year  in  the  extension  against residential property of
29        real property taxes levied by  the  district  during  the
30        preceding  calendar  year for the educational, operations
31        and  maintenance,  and  transportation  purposes  of  the
32        district?
33    The votes shall be recorded as "Yes" or "No". If  a  majority
34    of  the  votes  cast  at  the  election on the proposition to
                            -4-                LRB9002616THpk
 1    impose the local income tax for schools is in favor  thereof,
 2    the school board shall, commencing on March 1 of the calendar
 3    year  immediately  succeeding  the calendar year in which the
 4    election is held and thereafter,  unless  such  authority  is
 5    repealed  as provided in Section 25, impose the annual tax at
 6    an annual rate as initially  computed  and  as  computed  and
 7    adjusted  every  12  months  thereafter  by the Department of
 8    Revenue as provided in subsection (c) of Section 15.
 9        Section 15.  Determination of annual rate.
10        (a) Upon a school board's adoption  of  a  resolution  or
11    receipt  of  a  petition to impose within the school district
12    the local income tax for schools as provided in this Act, the
13    school board shall request the county clerk of each county in
14    which all or any part of the territory of the school district
15    is located to certify,  and  each  such  county  clerk  shall
16    certify,  to  the  school  board  and  to  the  Department of
17    Revenue, not later than August 1  of  the  calendar  year  in
18    which  the  proposition  to  impose  a  local  income tax for
19    schools is to be submitted to the voters of the district at a
20    regular election held in November of  that  year,  an  amount
21    equal  to  the  aggregate  amount of real property taxes that
22    could be extended against the equalized assessed valuation of
23    the taxable residential property  in  the  district  for  the
24    educational,  operations  and maintenance, and transportation
25    purposes of the district (i) if those real property taxes are
26    levied  at  the  maximum  rates  at  which  the  district  is
27    authorized to levy those taxes for the  fiscal  year  of  the
28    district  that  begins  in  the  calendar  year  in which the
29    resolution is adopted or the petition is received,  and  (ii)
30    if    those  real  property taxes are extended at those rates
31    against the  equalized  assessed  valuation  of  the  taxable
32    residential property in the district for the calendar year in
33    which the petition is filed or the resolution is adopted.
                            -5-                LRB9002616THpk
 1        (b) Not more than 15 days after receipt by the Department
 2    of Revenue of the certification or certifications required to
 3    be  made  by the county clerk or county clerks as provided in
 4    subsection (a), the Department of Revenue shall  compute  and
 5    certify  to  the  school  board  of  the  school district the
 6    approximate rate, calculated to the nearest 0.125%, that, had
 7    this Act been in effect during the calendar year  immediately
 8    preceding  the  calendar  year  in  which  the  resolution is
 9    adopted or the petition is received, and had the local income
10    tax for schools been imposed and  collected  under  this  Act
11    within  the  district during each of the 12 months comprising
12    that immediately preceding calendar year at that  approximate
13    rate, would have produced in collected income taxes that were
14    distributable  to that school district for that calendar year
15    an amount equal or substantially equal  to  but  not  greater
16    than  50%  of  the  total  amount or amounts certified by the
17    county clerk or county clerks, as  the  case  may  be,  under
18    subsection  (a).   The  approximate  rate  as computed by the
19    Department of Revenue under  this  subsection  shall  be  the
20    approximate  initial  annual  rate that must be stated in the
21    proposition that is submitted to the voters of  the  district
22    under Section 10.
23        (c)  Not  later  than  February  1  of each calendar year
24    during any part of which the local income tax for schools  is
25    or will be imposed in a school district, each county clerk in
26    which all or any part of the school district is located shall
27    compute  and  certify  to  the  Department of Revenue and the
28    school board, as provided in Section 40, the aggregate amount
29    of the abatement required to be made under  that  Section  in
30    each   such  calendar  year  in  the  extension  against  the
31    residential property located in the district of taxes  levied
32    by   the   district   in  the  preceding  calendar  year  for
33    educational, operations and maintenance,  and  transportation
34    purposes.  Within 10 days after the receipt by the Department
                            -6-                LRB9002616THpk
 1    of Revenue of the annual certification required to be made by
 2    each  county  clerk  in  which  all or any part of the school
 3    district is located, the Department of Revenue shall  compute
 4    the  actual initial rate (with respect to the 12 month period
 5    that commences on March 1 of the first calendar  year  during
 6    which  the local income tax for schools is to imposed) or the
 7    adjusted rate (with  respect  to  each  successive  12  month
 8    period),  calculated  to  the  nearest  0.125%, that, had the
 9    local income tax  for  schools  been  imposed  and  collected
10    within  the  district during each of the 12 months comprising
11    the calendar year immediately preceding the calendar year  in
12    which  the  Department  is required to compute the rate under
13    this subsection, would  have  produced,  in  collected  local
14    school  income  taxes  that  were distributable to the school
15    district  for  that  calendar  year,  an  amount   equal   or
16    substantially  equal  to  but  not greater than the aggregate
17    amount of the abatement computed and certified by the  county
18    clerk or county clerks to the Department in the calendar year
19    in   which  the  Department  computes  the  rate  under  this
20    subsection.  The actual initial rate  or  the  adjusted  rate
21    that  is  computed and certified by the Department of Revenue
22    in each such calendar year as  provided  in  this  subsection
23    shall  be  the  annual rate at which the local income tax for
24    schools is imposed in the district for the  12  month  period
25    that  commences  on March 1 of the calendar year in which the
26    Department computes and certifies the rate.
27        Section 20.  Apportionment  of  income.   The  method  of
28    allocating  and  apportioning  income  earned  in  the school
29    district by individuals who earn  only  a  portion  of  their
30    income  in  that  district  shall be established by rules and
31    regulations that the Department of Revenue  shall  adopt  for
32    that purpose.  The method so established shall be determined,
33    as  near  as  may  be,  in  accordance with the provisions of
                            -7-                LRB9002616THpk
 1    Article III of the Illinois Income  Tax  Act,  governing  the
 2    manner  in  which income and items of deduction are allocated
 3    and apportioned to  this  State  with  respect  to  part-year
 4    residents and other persons.
 5        Section  25.   Repeal  of  local  income tax for schools;
 6    referendum.  The school board of a  school  district  may  by
 7    resolution,  or  shall  upon the petition of 5% of the voters
 8    who voted in the school district in  the  last  gubernatorial
 9    election,  cause  to  be  submitted  to  the  voters  of that
10    district in  accordance  with  the  general  election  law  a
11    proposition  to repeal the local income tax for schools.  The
12    proposition to repeal the local income tax for schools may be
13    submitted to the voters of the district only at  the  general
14    election  held in November of an even-numbered year or at the
15    nonpartisan election held  in  November  of  an  odd-numbered
16    year.   The  resolution or petition to submit the proposition
17    to the voters of the  district  shall:  (i)  state  that  the
18    proposed  repeal  of  the  local income tax for schools is to
19    take effect on March 1 of the  calendar  year  following  the
20    calendar  year  in  which the November election is held; (ii)
21    state that amounts to be collected from the imposition of the
22    local income tax for schools through February of the calendar
23    year in which the proposed repeal  of  the  tax  is  to  take
24    effect  shall  be  distributed  to  the  school  district  as
25    provided  in  this  Act  on July 1 of that calendar year; and
26    (iii) state that when the proposed repeal of the local income
27    tax for schools takes effect, the extension of real  property
28    taxes  against  residential property thereafter levied by the
29    school  district  for   the   educational,   operations   and
30    maintenance,  and  transportation  purposes  of  the district
31    shall no longer be abated under the provisions of  this  Act.
32    The proposition shall be in substantially the following form:
33             Shall  the  local  income  tax  for  schools that is
                            -8-                LRB9002616THpk
 1        imposed by School District No. .... be repealed effective
 2        March 1, .... if, when  that  repeal  takes  effect,  the
 3        extension  of the real property taxes against residential
 4        property thereafter levied by the school district for its
 5        educational,    operations    and    maintenance,     and
 6        transportation  purposes  will  no longer be reduced each
 7        year by 50%?
 8    The votes shall be recorded as "Yes" or "No". If  a  majority
 9    of  the  votes  cast  on  the proposition to repeal the local
10    income tax for schools is in favor thereof,  that  tax  shall
11    not  be  imposed  on  or  after  March 1 of the calendar year
12    following the year in which the election is held unless again
13    authorized as provided in Section 10.
14        Section 30.  Collection.
15        (a)  Any tax authorized under this Act shall  be  imposed
16    only  on  income  earned  on or after March 1 of the calendar
17    year  following  the  referendum  held  in  November  of  the
18    immediately preceding calendar year at  which  imposition  of
19    the  tax  is  authorized. The tax so imposed shall be paid by
20    the taxpayer on or before the fifteenth  day  of  the  fourth
21    month  following  the close of each taxable year during which
22    the tax is imposed and shall be submitted to  the  Department
23    of  Revenue  along  with  the  taxpayer's  return  under  the
24    Illinois  Income  Tax  Act. The tax shall be collected by the
25    Department of Revenue.  The certification of the  results  of
26    the  referendum  authorizing  the  tax by the proper election
27    officials, accompanied by the resolution of the school  board
28    imposing  the  tax  as  authorized and the computation by the
29    Department of Revenue in accordance with  subsection  (c)  of
30    Section  15  of  the  actual  initial  rate  of the tax to be
31    imposed under this Act, shall constitute the authority of the
32    Department  of  Revenue  to  collect  the  tax.   Whenever  a
33    proposition to authorize imposition of the local  income  tax
                            -9-                LRB9002616THpk
 1    for  schools is approved by the voters of any school district
 2    as provided in this Act, the county clerk of each  county  in
 3    which  that  school  district  is  located  shall certify the
 4    territorial boundaries of the district to the  Department  of
 5    Revenue,  and  the  Department  shall (i) promptly notify all
 6    individuals resident of  the  district  who  have  previously
 7    filed  a  return  with  respect  to  the taxes imposed by the
 8    Illinois Income Tax Act that the local income tax for schools
 9    will be imposed within the district beginning on March  1  of
10    the  calendar year immediately following the calendar year in
11    which the election authorizing imposition of the tax is  held
12    and  the  manner  in  which the tax is to be collected by and
13    paid to the Department of Revenue, and (ii) publish notice in
14    a newspaper published in the school district or, if there  is
15    no  such  newspaper,  then  in  a  newspaper published in the
16    county in which the school district  is  located  and  having
17    circulation  in  the  district, that the local income tax for
18    schools will be imposed within the district and the manner in
19    which the tax is  to  be  collected  by  and  paid    to  the
20    Department  of  Revenue. In addition, not later than the 15th
21    day of February of each calendar year in which the Department
22    computes and certifies the rate at which the local income tax
23    for schools is to be imposed for the  12  month  period  that
24    commences  on  March  1 of that calendar year, the Department
25    shall publish notice in a newspaper published in the district
26    (or if there is  no  such  newspaper,  then  in  a  newspaper
27    published  in the county in which the district is located and
28    having circulation in the district)  of  the  actual  initial
29    rate  or  adjusted rate, as the case may be, at which the tax
30    will be imposed within  the  district  during  the  12  month
31    period commencing on that March 1. Any tax imposed under this
32    Act  shall  be  collected  by  and  paid to the Department of
33    Revenue at the same time and in the  same  manner,  with  the
34    same  withholding  and  estimated  payment  requirements  and
                            -10-               LRB9002616THpk
 1    subject   to  the  same  assessment  and  refund  procedures,
 2    penalties, and interest as the tax imposed  by  the  Illinois
 3    Income  Tax Act. Except as provided in subsection (b) of this
 4    Section, the Department of Revenue shall forthwith  pay  over
 5    to  the  State  Treasurer, ex officio, as trustee, all moneys
 6    received by it on behalf of the school district   under  this
 7    Section,  to  be  deposited  into  a special account that the
 8    State Treasurer and State  Comptroller  shall  establish  and
 9    maintain for the benefit of that school district in the Local
10    Option  School  District Income Tax Fund, a special fund that
11    is hereby created in the  State  treasury,  to  be  held  and
12    disbursed  by  the  State  Treasurer and State Comptroller as
13    provided in this Section and Section 35.  All interest earned
14    from the investment of any moneys from time to time  held  in
15    the  Local  Option  School  District  Income Tax Fund and any
16    special accounts established in that Fund shall  be  retained
17    by the State Treasurer to be applied toward costs incurred by
18    the Department of Revenue in administering and enforcing this
19    Act.
20        (b)  The  Local  Option School District Income Tax Refund
21    Fund is hereby created in the State Treasury.  The Department
22    of  Revenue  shall  deposit  a  percentage  of  the   amounts
23    collected  from  the tax imposed under this Act by any school
24    district into a special account that the State Treasurer  and
25    State  Comptroller  shall  establish  and maintain within the
26    Local Option School District Income Tax Refund Fund  for  the
27    purpose  of  paying refunds resulting from overpayment of tax
28    liability  under  this  Act  with  respect  to  that   school
29    district.   The  Department  of  Revenue  shall determine the
30    percentage of the amounts  collected  from  the  tax  imposed
31    under this Act by any school district that is to be deposited
32    into  the  special  account  maintained  in  the Local Option
33    School  District  Income  Tax  Refund  Fund  to  pay  refunds
34    resulting from overpayment of tax liability  under  this  Act
                            -11-               LRB9002616THpk
 1    with  respect  to that school district and shall certify that
 2    percentage to the Comptroller, all in accordance  with  rules
 3    adopted  by  the  Department  of Revenue for purposes of this
 4    Section.  Money in the  special  account  maintained  in  the
 5    Local  Option  School  District  Income  Tax Refund Fund with
 6    respect to any school district shall be expended  exclusively
 7    for  the purpose of paying refunds resulting from overpayment
 8    of tax liability under this Act with respect to  that  school
 9    district.   The  Director  of  Revenue shall order payment of
10    refunds resulting from overpayment  of  tax  liability  under
11    this  Act from the special account maintained with respect to
12    a school district in the Local Option School District  Income
13    Tax  Refund  Fund  only  to the extent that amounts collected
14    pursuant to this Act  for  that  school  district  have  been
15    deposited  into  and  retained in that special account.  This
16    Section  shall  constitute  an  irrevocable  and   continuing
17    appropriation  from  the  Local Option School District Income
18    Tax Refund Fund and  the  special  accounts  established  and
19    maintained therein for the purpose of paying refunds upon the
20    order  of  the  Director  of  Revenue  in accordance with the
21    provisions of this Section.
22        (c)  The Department  of  Revenue  shall  promulgate  such
23    rules  and  regulations  as may be necessary to implement the
24    provisions of this Act.
25        Section 35.   Certification,  disbursement,  and  use  of
26    funds.
27        (a)  On  July  1  of  each  calendar  year,  or the first
28    following business day if July 1 falls on a Saturday, Sunday,
29    or holiday, the Department of Revenue shall  certify  to  the
30    State  Treasurer  and  State  Comptroller the disbursement of
31    stated sums of money to each school district in which  a  tax
32    authorized  by this Act has been imposed and collected during
33    the preceding calendar year.  On each certification date, the
                            -12-               LRB9002616THpk
 1    amount to be certified  for  disbursement  from  the  special
 2    account  maintained for a school district in the Local Option
 3    School District Income Tax Fund shall be the amount deposited
 4    into that special account from the tax collected  under  this
 5    Act  for that school district during the 12 month period that
 6    commences on March 1 of the  immediately  preceding  calendar
 7    year,  reduced  by  an  amount  equal  to 2% of the amount so
 8    deposited into that special account to  be  retained  by  the
 9    State  Treasurer and applied toward the costs incurred by the
10    Department of Revenue in  administering  and  enforcing  this
11    Act.
12        (b)  At  the  time  of  each  disbursement  to  a  school
13    district, the Department of Revenue shall prepare and certify
14    to the Comptroller the amount retained by the State Treasurer
15    as  provided in this Section and the interest earned from the
16    investment of moneys from time to  time  held  in  the  Local
17    Option  School  District  Income  Tax  Fund  and  any special
18    accounts established therein as provided in subsection (a) of
19    Section 30 to be applied toward the  costs  incurred  by  the
20    Department  in  administering  and  enforcing  this  Act, the
21    amount so retained and the interest so earned to be paid into
22    the General Revenue Fund of the State Treasury.
23        (c)  Within 5 days after receipt by the Comptroller  from
24    the   Department   of   Revenue   of   the  certification  of
25    disbursements to the school  districts  and  General  Revenue
26    Fund as provided in this Section, the Comptroller shall cause
27    the  warrants  to  be  drawn  for  the  respective amounts in
28    accordance   with   the   directions   contained    in    the
29    certification.
30        (d)  If for any reason the General Assembly fails to make
31    an  appropriation  sufficient to pay each school district the
32    full amount required to be disbursed and paid to it  by  this
33    Section  and  any  other  provision  of  this  Act, then this
34    Section  shall  constitute  an  irrevocable  and   continuing
                            -13-               LRB9002616THpk
 1    appropriation  of  all amounts necessary for that purpose and
 2    the irrevocable and continuing authority for and direction to
 3    the Comptroller and  Treasurer  of  the  State  to  make  the
 4    necessary   transfers  out  of  and  disbursements  from  the
 5    revenues and funds of the State for that purpose.
 6        (e)  The  school  board  of  each  school  district  that
 7    receives a disbursement under this Act shall apply and credit
 8    the moneys so disbursed to the  educational,  operations  and
 9    maintenance,  and  transportation  funds  of  the district in
10    proportion to the ratio that the  amount  that  the  required
11    abatement  under  Section  40  in  the  extension against the
12    residential property located  in  the  district,  during  the
13    disbursement  year,  of  real  property  taxes  levied by the
14    district in each of those 3  funds  bears  to  the  aggregate
15    amount  of  the  required abatement under that Section in the
16    extension  against  such  residential  property,  during  the
17    disbursement year, of  real  property  taxes  levied  by  the
18    district in all 3 of those funds.
19        Section  40.   Abatement  of  extension  of real property
20    taxes on residential property.
21        (a)  During each calendar year in which a disbursement is
22    required to be made under Section 35 to a school district  of
23    moneys  credited  to  a  special  account maintained for that
24    district in the Local Option School District Income Tax Fund,
25    the  county  clerk  shall   abate   the   extension   against
26    residential  property located in the district of taxes levied
27    by the district for educational, operations and  maintenance,
28    and  transportation purposes.  If any such school district is
29    located in more than one county, the amount of the  extension
30    of real property taxes levied for educational, operations and
31    maintenance,  and transportation purposes against residential
32    property situated within that district to be so abated  shall
33    be  apportioned  by the county clerks of those counties based
                            -14-               LRB9002616THpk
 1    upon the ratio of the aggregate assessed value of the taxable
 2    residential property of the district  in  each  such  county.
 3    Before  any abatement of the extension of real property taxes
 4    levied  for  educational,  operations  and  maintenance,  and
 5    transportation purposes against residential property situated
 6    within a school district is made as provided in this Section,
 7    the county clerk shall determine whether the amount  of  each
 8    of   the   educational,   operations   and  maintenance,  and
 9    transportation  tax  levies  that  has  been  certified   for
10    extension is based on a rate at which the district making the
11    certification  is authorized by statute or referendum to levy
12    that tax, shall disregard any excess, and  shall  extend  the
13    levy  of  that  tax  in accordance with the provisions of the
14    Property Tax Code, subject to abatement of the  extension  as
15    provided in this Section.
16        (b)  Not  later  than February 1 of each calendar year in
17    which the extension against residential property located in a
18    school  district  of  taxes  levied  by  the   district   for
19    educational,  operations  and maintenance, and transportation
20    purposes is required to be abated under subsection  (a),  the
21    county  clerk  shall  determine  the  aggregate amount of the
22    required abatement and  shall  certify  that  amount  to  the
23    Department  of  Revenue  and the school board.  The aggregate
24    amount of the required abatement in each such  calendar  year
25    shall  be  equal to 50% of that portion of the total levy for
26    educational, operations and maintenance,  and  transportation
27    purposes certified by the school district to the county clerk
28    in  the  preceding  calendar  year  for extension against all
29    taxable property  in  the  district  that  the  county  clerk
30    determines  would,  but for the abatement required under this
31    Section, be extended against the equalized assessed value  of
32    the taxable residential property located in the district.  In
33    extending  taxes  levied  for the educational, operations and
34    maintenance,  and  transportation  purposes  of  the   school
                            -15-               LRB9002616THpk
 1    district in the year in which the abatement is required to be
 2    made,  the  county clerk shall apportion the aggregate amount
 3    of the required abatement among the extensions  made  of  the
 4    educational,  operations  and maintenance, and transportation
 5    taxes levied by the district based upon the  ratio  that  the
 6    amount  certified for levy for each of those 3 purposes bears
 7    to the aggregate amount certified for levy for all 3 of those
 8    purposes.  In certifying to the school  board  the  aggregate
 9    amount  of  the  required  abatement,  the county clerk shall
10    further certify the amount by which each  of  the  respective
11    levies  made for the educational, operations and maintenance,
12    and transportation purposes of the district will be reduced.
13        Section 45.  Property tax rates.  The provisions of  this
14    Act  for  abatement  in  the  extension  against  residential
15    property  of  real  property taxes levied by school districts
16    for   educational,   operations    and    maintenance,    and
17    transportation  purposes  do  not constitute and shall not be
18    construed to be a limitation on or a reduction in the rate at
19    which  any  school  district  now  is  or  hereafter  may  be
20    authorized by statute or referendum to  levy  taxes  for  any
21    lawful  school  purpose;  and  notwithstanding  any abatement
22    required by Section 40 to be made in  the  extension  against
23    residential  property  of  real  property  taxes  levied by a
24    school district for educational, operations and  maintenance,
25    and  transportation  purposes, in computing the operating tax
26    rate of the district under Section 18-8 of  the  School  Code
27    that  abatement  shall  be disregarded, and the rate per cent
28    applicable to the extension of the district's taxes  for  its
29    educational,  operations  and maintenance, and transportation
30    purposes, as a component of  its  operating  tax  rate  under
31    Section  18-8  of  the  School Code, shall be computed on the
32    basis of the amount actually certified by the district to  be
33    levied   for  those  purposes,  unreduced  by  any  abatement
                            -16-               LRB9002616THpk
 1    required by Section 40.
 2        Section 50.  Penalties.  Any person who is subject to the
 3    provisions of this Act and who  willfully  fails  to  file  a
 4    return,  or  who willfully violates any rule or regulation of
 5    the  Department  of  Revenue  for   the   administration   or
 6    enforcement  of  this  Act,  or who willfully attempts in any
 7    other manner to evade or defeat any tax imposed by  this  Act
 8    or  the payment thereof, shall in addition to other penalties
 9    be guilty of a Class B misdemeanor.  A  prosecution  for  any
10    violation  of this Act may be commenced within 3 years of the
11    commission of that act.
12        Section 100. The State Finance Act is amended  by  adding
13    Section 5.449 as follows:
14        (30 ILCS 105/5.449 new)
15        Sec.  5.449.  The Local Option School District Income Tax
16    Refund Fund.
17        Section 105. The Illinois Income Tax Act  is  amended  by
18    changing Section 512 as follows:
19        (35 ILCS 5/512) (from Ch. 120, par. 5-512)
20        Sec.  512.   School  district  data;  local option school
21    income tax; net income attributable to period prior to  March
22    1 and to period on and after March 1 of a taxable year.
23        (a)  All individual income tax return forms for tax years
24    ending December 31, 1986  through  December  30,  1995  shall
25    contain  an  appropriate  space  in  which  the taxpayer must
26    indicate either (i) the name and number of  the  high  school
27    district  in  which  they  reside  on the date such return is
28    filed, or (ii)  the  name  and  number  of  the  unit  school
29    district  in  which  they  reside  on the date such return is
                            -17-               LRB9002616THpk
 1    filed.  Failure of the taxpayer to  insert  such  information
 2    shall not invalidate the return.
 3        (b)  For  all  tax  years  ending  December  31, 1995 and
 4    thereafter, the Department shall provide the State  Board  of
 5    Education  with information on individual income tax receipts
 6    by school district from the data collected by the  Geographic
 7    Information System maintained by the Department.
 8        (c)  All individual income tax forms for tax years ending
 9    on or after December 31, 1997 shall contain appropriate space
10    for  a  taxpayer  who  resides  within a school district that
11    imposes a local income tax for schools under the Local Option
12    School District Income Tax Act to calculate the tax due  from
13    the  taxpayer  under that Act.  The Department shall provide,
14    with the return, instructions for calculating and paying  the
15    local  income tax for schools as provided in the Local Option
16    School District Income Tax Act.
17        (d)  With respect to each taxable year of a resident of a
18    school district in which the local income tax for schools  is
19    imposed  under  the  Local  Option School District Income Tax
20    Act, for purposes of computing the tax due  from  a  resident
21    under  that  Act, net income for the period before March 1 of
22    the taxable year shall be that amount which  bears  the  same
23    ratio  to  the  resident's  net income for the entire taxable
24    year as the number of days in that year before March 1  bears
25    to  the total number of days in that year, and net income for
26    the period of the taxable year that begins  on  March  1  and
27    ends on the last day of the taxable year shall be that amount
28    which  bears  the same ratio to the resident's net income for
29    the entire taxable year as the number of days  in  that  year
30    beginning  March  1 bears to the total number of days in that
31    year.  As used in this subsection, the terms "taxable  year",
32    "resident",  and  "net  income"  have the meaning ascribed to
33    them by Section 5 of the Local Option School District  Income
34    Tax Act.
                            -18-               LRB9002616THpk
 1    (Source: P.A. 89-21, eff. 7-1-95.)
 2        Section 110. The Property Tax Code is amended by changing
 3    Sections  18-45  and  18-185  and  adding  Section  18-182 as
 4    follows:
 5        (35 ILCS 200/18-45)
 6        Sec. 18-45.  Computation of rates.   Except  as  provided
 7    below,  each  county  clerk  shall estimate and determine the
 8    rate per cent upon the equalized assessed valuation  for  the
 9    levy  year  of  the property in the county's taxing districts
10    and special service areas, as established under  Article  VII
11    of  the Illinois Constitution, so that the rate will produce,
12    within the proper divisions of that county, not less than the
13    net amount that will be  required  by  the  county  board  or
14    certified  to  the  county  clerk according to law.  Prior to
15    extension, the  county  clerk  shall  determine  the  maximum
16    amount of tax authorized to be levied by any statute.  If the
17    amount of any tax certified to the county clerk for extension
18    exceeds  the maximum, the clerk shall extend only the maximum
19    allowable levy.
20        The county clerk shall exclude from the  total  equalized
21    assessed  valuation,  whenever  estimating and determining it
22    under this Section and Sections  18-50  through  18-105,  the
23    equalized assessed valuation in the percentage which has been
24    agreed to by each taxing district, of any property or portion
25    thereof  within an Enterprise Zone upon which an abatement of
26    taxes  was  made  under  Section  18-170.   However,   if   a
27    municipality   has  adopted  tax  increment  financing  under
28    Division 74.4 of Article 11 of the Illinois  Municipal  Code,
29    the  county  clerk  shall  estimate  and  determine  rates in
30    accordance with Sections 11-74.4-7 through 11-74.4-9 of  that
31    Act.  The  equalized  assessed  value of all property for the
32    computation of the amount to be extended within a county with
                            -19-               LRB9002616THpk
 1    3,000,000 or more inhabitants shall be the equalized assessed
 2    value of such property for the year immediately preceding the
 3    levy year as established by the assessment  and  equalization
 4    process for the year immediately prior to the levy year.
 5        The  provisions  of  this  Section  and the authority and
 6    responsibility  of the county clerks hereunder are subject to
 7    the provisions of Section 18-182 of the Property Tax Code and
 8    Section 40 of the Local Option School District Income Tax .ct
 9    relative to abatement in the extension  of  taxes  levied  by
10    school  districts  in  which  the tax authorized by the Local
11    Option School District Income Tax Act is imposed, levied, and
12    collected.
13    (Source: P.A. 86-233; 86-953; 86-957; 86-1475; 87-17; 87-477;
14    87-895; 88-455.)
15        (35 ILCS 200/18-182 new)
16        Sec. 18-182. Abatement; local  income  tax  for  schools.
17    With  respect  to a school district in which the local income
18    tax for schools is imposed  under  the  Local  Option  School
19    District  Income  Tax  Act,  the  county clerk of a county in
20    which all or any part of the district is located shall  abate
21    the  extension  against  residential  property located in the
22    district and county of  taxes  levied  by  the  district  for
23    educational,  operations  and maintenance, and transportation
24    purposes as provided in and subject to  the  requirements  of
25    Section  40  of  that Act.  As used in this Section, the term
26    "residential property" has the  meaning  ascribed  to  it  in
27    Section 5 of the Local Option School District Income Tax Act.
28        (35 ILCS 200/18-185)
29        Sec. 18-185.  Short title; definitions.  This Section and
30    Sections  18-190  through 18-245 may be cited as the Property
31    Tax Extension Limitation Law.  As  used  in  Sections  18-190
32    through 18-245:
                            -20-               LRB9002616THpk
 1        "Consumer Price Index" means the Consumer Price Index for
 2    All  Urban  Consumers  for  all items published by the United
 3    States Department of Labor.
 4        "Extension limitation" means (a) the lesser of 5% or  the
 5    percentage  increase  in  the Consumer Price Index during the
 6    12-month calendar year preceding the levy  year  or  (b)  the
 7    rate of increase approved by voters under Section 18-205.
 8        "Affected  county"  means  a  county of 3,000,000 or more
 9    inhabitants or a county contiguous to a county  of  3,000,000
10    or more inhabitants.
11        "Taxing  district"  has  the  same  meaning  provided  in
12    Section  1-150, except as otherwise provided in this Section.
13    For the 1991 through 1994 levy years only, "taxing  district"
14    includes  only  each non-home rule taxing district having the
15    majority of its 1990  equalized  assessed  value  within  any
16    county  or  counties contiguous to a county with 3,000,000 or
17    more inhabitants.  Beginning with the 1995 levy year, "taxing
18    district" includes only each non-home  rule  taxing  district
19    subject  to  this  Law  before  the  1995  levy year and each
20    non-home rule taxing district not subject to this Law  before
21    the  1995 levy year having the majority of its 1994 equalized
22    assessed value in an affected county or counties.   Beginning
23    with  the levy year in which this Law becomes applicable to a
24    taxing  district  as  provided  in  Section  18-213,  "taxing
25    district" also includes those taxing districts  made  subject
26    to this Law as provided in Section 18-213.
27        "Aggregate  extension" for taxing districts to which this
28    Law applied before  the  1995  levy  year  means  the  annual
29    corporate extension for the taxing district and those special
30    purpose  extensions  that  are  made  annually for the taxing
31    district, excluding special purpose extensions: (a) made  for
32    the  taxing  district to pay interest or principal on general
33    obligation bonds that were approved by referendum;  (b)  made
34    for  any  taxing  district  to  pay  interest or principal on
                            -21-               LRB9002616THpk
 1    general obligation bonds issued before October 1,  1991;  (c)
 2    made  for any taxing district to pay interest or principal on
 3    bonds issued to refund or  continue  to  refund  those  bonds
 4    issued  before  October  1,  1991;  (d)  made  for any taxing
 5    district to pay interest or  principal  on  bonds  issued  to
 6    refund  or  continue  to refund bonds issued after October 1,
 7    1991 that were approved  by  referendum;  (e)  made  for  any
 8    taxing district to pay interest or principal on revenue bonds
 9    issued before October 1, 1991 for payment of which a property
10    tax  levy  or  the full faith and credit of the unit of local
11    government is pledged; however, a  tax  for  the  payment  of
12    interest or principal on those bonds shall be made only after
13    the governing body of the unit of local government finds that
14    all  other sources for payment are insufficient to make those
15    payments; (f) made for payments under a  building  commission
16    lease when the lease payments are for the retirement of bonds
17    issued  by  the commission before October 1, 1991, to pay for
18    the  building  project;  (g)  made  for  payments  due  under
19    installment contracts entered into before  October  1,  1991;
20    (h)  made  for  payments  of  principal and interest on bonds
21    issued under the Metropolitan Water Reclamation District  Act
22    to  finance construction projects initiated before October 1,
23    1991; (i) made for payments  of  principal  and  interest  on
24    limited   bonds,  as  defined  in  Section  3  of  the  Local
25    Government Debt Reform Act, in an amount not  to  exceed  the
26    debt  service  extension  base  less the amount in items (b),
27    (c), (e), and  (h)  of  this  definition  for  non-referendum
28    obligations,  except obligations initially issued pursuant to
29    referendum; and  (j)  made  for  payments  of  principal  and
30    interest  on  bonds  issued  under  Section  15  of the Local
31    Government Debt Reform Act; and (k) made by a school district
32    to replace revenues lost as a result of  the  repeal  of  the
33    local  income  tax  for  schools  as  formerly imposed by the
34    district under the Local Option School  District  Income  Tax
                            -22-               LRB9002616THpk
 1    Act.
 2        "Aggregate  extension"  for the taxing districts to which
 3    this Law did not apply before  the  1995  levy  year  (except
 4    taxing  districts  subject  to  this  Law  in accordance with
 5    Section 18-213) means the annual corporate extension for  the
 6    taxing district and those special purpose extensions that are
 7    made  annually  for  the  taxing  district, excluding special
 8    purpose extensions: (a) made for the taxing district  to  pay
 9    interest  or  principal on general obligation bonds that were
10    approved by referendum; (b) made for any taxing  district  to
11    pay  interest or principal on general obligation bonds issued
12    before March 1, 1995; (c) made for any taxing district to pay
13    interest or principal on bonds issued to refund  or  continue
14    to  refund  those bonds issued before March 1, 1995; (d) made
15    for any taxing district to pay interest or principal on bonds
16    issued to refund or continue to  refund  bonds  issued  after
17    March  1, 1995 that were approved by referendum; (e) made for
18    any taxing district to pay interest or principal  on  revenue
19    bonds  issued  before  March  1,  1995 for payment of which a
20    property tax levy or the full faith and credit of the unit of
21    local government is pledged; however, a tax for  the  payment
22    of  interest  or  principal on those bonds shall be made only
23    after the governing body of  the  unit  of  local  government
24    finds  that all other sources for payment are insufficient to
25    make those payments; (f) made for payments under  a  building
26    commission   lease  when  the  lease  payments  are  for  the
27    retirement of bonds issued by the commission before March  1,
28    1995  to  pay for the building project; (g) made for payments
29    due under installment contracts entered into before March  1,
30    1995;  (h)  made  for  payments  of principal and interest on
31    bonds  issued  under  the  Metropolitan   Water   Reclamation
32    District  Act  to  finance  construction  projects  initiated
33    before  October  1,  1991; (i) made for payments of principal
34    and interest on limited bonds, as defined in Section 3 of the
                            -23-               LRB9002616THpk
 1    Local Government Debt Reform Act, in an amount not to  exceed
 2    the debt service extension base less the amount in items (b),
 3    (c),  (e),  and  (h)  of  this  definition for non-referendum
 4    obligations, except obligations initially issued pursuant  to
 5    referendum;  (j)  made for payments of principal and interest
 6    on bonds issued under Section 15 of the Local Government Debt
 7    Reform Act; (k) made for payments of principal  and  interest
 8    on  bonds  authorized  by  Public Act 88-503 and issued under
 9    Section 20a of the Chicago Park District Act for aquarium  or
10    museum  projects;  and (l) made for payments of principal and
11    interest on bonds authorized by Public Act 87-1191 and issued
12    under Section 42 of the Cook County Forest Preserve  District
13    Act  for  zoological  park projects; and (m) made by a school
14    district to replace revenues lost as a result of  the  repeal
15    of  the  local  income tax for schools as formerly imposed by
16    the district under the Local Option  School  District  Income
17    Tax Act.
18        "Aggregate  extension"  for all taxing districts to which
19    this Law applies in accordance with Section 18-213 means  the
20    annual  corporate extension for the taxing district and those
21    special purpose extensions that are  made  annually  for  the
22    taxing  district,  excluding  special purpose extensions: (a)
23    made for the taxing district to pay interest or principal  on
24    general  obligation  bonds  that were approved by referendum;
25    (b) made for any taxing district to pay interest or principal
26    on general obligation bonds issued before the date  on  which
27    the  referendum  making  this  Law  applicable  to the taxing
28    district is held; (c) made for any  taxing  district  to  pay
29    interest  or  principal on bonds issued to refund or continue
30    to refund those bonds issued before the  date  on  which  the
31    referendum  making this Law applicable to the taxing district
32    is held; (d) made for any taxing district to pay interest  or
33    principal  on  bonds  issued  to refund or continue to refund
34    bonds issued after the date on which  the  referendum  making
                            -24-               LRB9002616THpk
 1    this  Law  applicable  to  the taxing district is held if the
 2    bonds were approved by referendum after the date on which the
 3    referendum making this Law applicable to the taxing  district
 4    is  held; (e) made for any taxing district to pay interest or
 5    principal on revenue bonds issued before the  date  on  which
 6    the  referendum  making  this  Law  applicable  to the taxing
 7    district is held for payment of which a property tax levy  or
 8    the  full faith and credit of the unit of local government is
 9    pledged; however, a  tax  for  the  payment  of  interest  or
10    principal  on  those  bonds  shall  be  made  only  after the
11    governing body of the unit of local government finds that all
12    other sources for payment  are  insufficient  to  make  those
13    payments;  (f)  made for payments under a building commission
14    lease when the lease payments are for the retirement of bonds
15    issued by  the  commission  before  the  date  on  which  the
16    referendum  making this Law applicable to the taxing district
17    is held to  pay  for  the  building  project;  (g)  made  for
18    payments  due under installment contracts entered into before
19    the date on which the referendum making this  Law  applicable
20    to  the  taxing  district  is  held; (h) made for payments of
21    principal and  interest  on  limited  bonds,  as  defined  in
22    Section  3  of  the  Local  Government Debt Reform Act, in an
23    amount not to exceed the debt service extension base less the
24    amount in items (b), (c), and  (e)  of  this  definition  for
25    non-referendum   obligations,  except  obligations  initially
26    issued pursuant to  referendum;  (i)  made  for  payments  of
27    principal  and  interest  on bonds issued under Section 15 of
28    the Local Government Debt Reform Act;  and  (j)  made  for  a
29    qualified  airport  authority to pay interest or principal on
30    general obligation bonds issued for  the  purpose  of  paying
31    obligations   due  under,  or  financing  airport  facilities
32    required to be acquired, constructed, installed  or  equipped
33    pursuant to, contracts entered into before March 1, 1996 (but
34    not including any amendments to such a contract taking effect
                            -25-               LRB9002616THpk
 1    on  or after that date); and (k) made by a school district to
 2    replace revenues lost as a result of the repeal of the  local
 3    income  tax  for  schools as formerly imposed by the district
 4    under the Local Option School District Income Tax Act.
 5        "Debt service extension base" means an  amount  equal  to
 6    that  portion  of the extension for a taxing district for the
 7    1994 levy year, or for those taxing districts subject to this
 8    Law in accordance with Section 18-213 for the  levy  year  in
 9    which the referendum making this Law applicable to the taxing
10    district  is  held,  constituting an extension for payment of
11    principal and interest on bonds issued by the taxing district
12    without referendum, but not including (i) bonds authorized by
13    Public Act 88-503 and issued under Section 20a of the Chicago
14    Park District Act for  aquarium  and  museum  projects;  (ii)
15    bonds  issued  under  Section 15 of the Local Government Debt
16    Reform Act; or (iii) refunding obligations issued  to  refund
17    or   to  continue  to  refund  obligations  initially  issued
18    pursuant to referendum.  The debt service extension base  may
19    be established or increased as provided under Section 18-212.
20        "Special purpose extensions" include, but are not limited
21    to,  extensions  for  levies  made  on  an  annual  basis for
22    unemployment  and  workers'   compensation,   self-insurance,
23    contributions  to pension plans, and extensions made pursuant
24    to Section 6-601 of the Illinois  Highway  Code  for  a  road
25    district's  permanent  road  fund  whether levied annually or
26    not.  The  extension  for  a  special  service  area  is  not
27    included in the aggregate extension.
28        "Aggregate  extension  base"  means the taxing district's
29    last preceding aggregate extension as adjusted under Sections
30    18-215 through 18-230.
31        "Levy year" has the same meaning as "year" under  Section
32    1-155.
33        "New  property" means (i) the assessed value, after final
34    board  of  review  or  board  of  appeals  action,   of   new
                            -26-               LRB9002616THpk
 1    improvements  or  additions  to  existing improvements on any
 2    parcel of real property that increase the assessed  value  of
 3    that  real  property  during  the levy year multiplied by the
 4    equalization factor issued by the  Department  under  Section
 5    17-30  and  (ii)  the  assessed  value,  after final board of
 6    review or board of  appeals  action,  of  real  property  not
 7    exempt  from  real  estate  taxation, which real property was
 8    exempt from real estate  taxation  for  any  portion  of  the
 9    immediately   preceding   levy   year,   multiplied   by  the
10    equalization factor issued by the  Department  under  Section
11    17-30.
12        "Qualified  airport authority" means an airport authority
13    organized under the Airport Authorities Act and located in  a
14    county  bordering  on  the  State  of  Wisconsin and having a
15    population in excess of 200,000 and not greater than 500,000.
16        "Recovered tax increment value" means the amount  of  the
17    current  year's  equalized  assessed value, in the first year
18    after a municipality terminates the designation of an area as
19    a redevelopment project area previously established under the
20    Tax Increment Allocation  Development  Act  in  the  Illinois
21    Municipal  Code,  previously established under the Industrial
22    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
23    previously  established  under  the Economic Development Area
24    Tax Increment Allocation Act, of  each  taxable  lot,  block,
25    tract,  or  parcel  of  real  property  in  the redevelopment
26    project area over and above the  initial  equalized  assessed
27    value of each property in the redevelopment project area.
28        Except  as  otherwise provided in this Section, "limiting
29    rate" means a fraction the numerator of  which  is  the  last
30    preceding  aggregate  extension base times an amount equal to
31    one plus the extension limitation defined in this Section and
32    the denominator of which  is  the  current  year's  equalized
33    assessed  value  of  all real property in the territory under
34    the jurisdiction of the taxing district during the prior levy
                            -27-               LRB9002616THpk
 1    year.   For  those  taxing  districts  that   reduced   their
 2    aggregate  extension  for  the  last preceding levy year, the
 3    highest aggregate extension in any of the  last  3  preceding
 4    levy  years  shall  be  used for the purpose of computing the
 5    limiting  rate.   The  denominator  shall  not  include   new
 6    property.   The  denominator  shall not include the recovered
 7    tax increment value.
 8    (Source:  P.A.  88-455;  89-1,  eff.  2-12-95;  89-138,  eff.
 9    7-14-95; 89-385, eff. 8-18-95; 89-436, eff.  1-1-96;  89-449,
10    eff. 6-1-96; 89-510, eff. 7-11-96.)
11        Section  115.  The  School  Code  is  amended by changing
12    Section 18-8 as follows:
13        (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
14        Sec.  18-8.  Basis  for   apportionment   to   districts,
15    laboratory schools and alternative schools.
16        A.  The amounts to be apportioned shall be determined for
17    each  educational  service  region  by  school  districts, as
18    follows:
19        1.  General Provisions.
20        (a)  In the computation of the amounts to be apportioned,
21    the average daily  attendance  of  all  pupils  in  grades  9
22    through  12  shall  be multiplied by 1.25.  The average daily
23    attendance  of  all  pupils  in  grades  7  and  8  shall  be
24    multiplied by 1.05.
25        (b)  The  actual  number  of  pupils  in  average   daily
26    attendance shall be computed in a one-teacher school district
27    by  dividing  the total aggregate days of pupil attendance by
28    the actual number of days school is in session but  not  more
29    than  30  such  pupils  shall  be accredited for such type of
30    district; and in districts of  2  or  more  teachers,  or  in
31    districts  where  records  of  attendance are kept by session
32    teachers, by taking the sum of the respective averages of the
                            -28-               LRB9002616THpk
 1    units composing the group.
 2        (c)  Pupils in average daily attendance shall be computed
 3    upon the average of the best 3 months of pupils attendance of
 4    the current school year except  as  district  claims  may  be
 5    later  amended  as  provided  hereinafter  in  this  Section.
 6    However,   for   any   school   district  maintaining  grades
 7    kindergarten through 12, the "average daily attendance" shall
 8    be computed on the average of the best  3  months  of  pupils
 9    attendance of the current year in grades kindergarten through
10    8,  added  together  with the average of the best 3 months of
11    pupils attendance of the current year in grades 9 through 12,
12    except as district claims may be later amended as provided in
13    this Section.  Days of attendance shall be  kept  by  regular
14    calendar  months,  except  any  days  of attendance in August
15    shall be added to the month of  September  and  any  days  of
16    attendance  in  June  shall  be  added  to  the month of May.
17    Except  as  otherwise  provided  in  this  Section,  days  of
18    attendance by pupils shall be counted only  for  sessions  of
19    not  less  than  5  clock  hours of school work per day under
20    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
21    personnel   or   volunteer   personnel   when   engaging   in
22    non-teaching   duties  and  supervising  in  those  instances
23    specified in subsection (a) of Section 10-22.34 and paragraph
24    10 of Section 34-18, with pupils of legal school age  and  in
25    kindergarten and grades 1 through 12.
26        (d)  Pupils  regularly  enrolled  in  a public school for
27    only a part of the school day may be counted on the basis  of
28    1/6  day for every class hour of instruction of 40 minutes or
29    more attended pursuant to such enrollment.
30        (e)  Days of attendance may be less than 5 clock hours on
31    the opening and closing of the  school  term,  and  upon  the
32    first  day  of pupil attendance, if preceded by a day or days
33    utilized as an institute or teachers' workshop.
34        (f)  A session of 4 or more clock hours may be counted as
                            -29-               LRB9002616THpk
 1    a day  of  attendance  upon  certification  by  the  regional
 2    superintendent,  and  approved by the State Superintendent of
 3    Education to the extent that the district has been forced  to
 4    use daily multiple sessions.
 5        (g)  A session of 3 or more clock hours may be counted as
 6    a  day of attendance (1) when the remainder of the school day
 7    or at least 2 hours in the evening of that  day  is  utilized
 8    for  an  in-service  training  program  for teachers, up to a
 9    maximum of 5 days per school year of which  a  maximum  of  4
10    days   of   such  5  days  may  be  used  for  parent-teacher
11    conferences,  provided  a  district  conducts  an  in-service
12    training program for teachers which has been approved by  the
13    State  Superintendent  of  Education;  or,  in lieu of 4 such
14    days, 2 full days may be used, in which event each  such  day
15    may  be  counted as a day of attendance; and (2) when days in
16    addition to those provided in item (1)  are  scheduled  by  a
17    school  pursuant to its school improvement plan adopted under
18    Article 34 or its revised or amended school improvement  plan
19    adopted under Article 2, provided that (i) such sessions of 3
20    or  more  clock  hours  are  scheduled  to  occur  at regular
21    intervals, (ii) the remainder of the  school  days  in  which
22    such  sessions  occur  are  utilized  for in-service training
23    programs or other staff development activities for  teachers,
24    and (iii) a sufficient number of minutes of school work under
25    the  direct  supervision  of teachers are added to the school
26    days between such regularly scheduled sessions to  accumulate
27    not less than the number of minutes by which such sessions of
28    3  or  more clock hours fall short of 5 clock hours. Any full
29    days used for the purposes of this  paragraph  shall  not  be
30    considered  for  computing  average  daily  attendance.  Days
31    scheduled for in-service training programs, staff development
32    activities, or parent-teacher conferences  may  be  scheduled
33    separately   for   different   grade   levels  and  different
34    attendance centers of the district.
                            -30-               LRB9002616THpk
 1        (h)  A session of not less than one clock  hour  teaching
 2    of  hospitalized  or homebound pupils on-site or by telephone
 3    to the classroom may be counted as  1/2  day  of  attendance,
 4    however  these  pupils  must receive 4 or more clock hours of
 5    instruction to be counted for a full day of attendance.
 6        (i)  A session of at least 4 clock hours may  be  counted
 7    as  a day of attendance for first grade pupils, and pupils in
 8    full day kindergartens, and a session of 2 or more hours  may
 9    be   counted   as   1/2   day  of  attendance  by  pupils  in
10    kindergartens which provide only 1/2 day of attendance.
11        (j)  For children with disabilities who are below the age
12    of 6 years and who cannot attend  two  or  more  clock  hours
13    because  of  their disability or immaturity, a session of not
14    less than one clock  hour  may  be  counted  as  1/2  day  of
15    attendance; however for such children whose educational needs
16    so  require a session of 4 or more clock hours may be counted
17    as a full day of attendance.
18        (k)  A recognized kindergarten which  provides  for  only
19    1/2  day of attendance by each pupil shall not have more than
20    1/2 day  of  attendance  counted  in  any  1  day.   However,
21    kindergartens  may  count  2  1/2 days of attendance in any 5
22    consecutive school  days.   Where  a  pupil  attends  such  a
23    kindergarten  for  2  half  days  on any one school day, such
24    pupil shall have the following  day  as  a  day  absent  from
25    school,  unless  the  school  district  obtains permission in
26    writing  from  the   State   Superintendent   of   Education.
27    Attendance  at  kindergartens which provide for a full day of
28    attendance by  each  pupil  shall  be  counted  the  same  as
29    attendance  by  first  grade  pupils.  Only the first year of
30    attendance in one kindergarten shall  be  counted  except  in
31    case  of children who entered the kindergarten in their fifth
32    year whose educational development requires a second year  of
33    kindergarten as determined under the rules and regulations of
34    the State Board of Education.
                            -31-               LRB9002616THpk
 1        (l)  Days  of  attendance  by  tuition  pupils  shall  be
 2    accredited  only  to  the districts that pay the tuition to a
 3    recognized school.
 4        (m)  The greater  of  the  immediately  preceding  year's
 5    weighted  average  daily  attendance  or  the  average of the
 6    weighted  average  daily  attendance   of   the   immediately
 7    preceding year and the previous 2 years shall be used.
 8        For any school year beginning July 1, 1986 or thereafter,
 9    if  the  weighted  average  daily attendance in either grades
10    kindergarten through 8 or grades 9 through 12 of  a  district
11    as  computed  for  the  first  calendar  month of the current
12    school year exceeds by more than 5%, but  not  less  than  25
13    pupils,  the district's weighted average daily attendance for
14    the first calendar month of the  immediately  preceding  year
15    in,  respectively,  grades kindergarten through 8 or grades 9
16    through 12, a supplementary payment  shall  be  made  to  the
17    district  equal  to  the  difference in the amount of aid the
18    district would be paid under this Section using the  weighted
19    average  daily attendance in the district as computed for the
20    first calendar month of  the  current  school  year  and  the
21    amount  of  aid the district would be paid using the weighted
22    average daily  attendance  in  the  district  for  the  first
23    calendar  month  of  the  immediately  preceding  year.  Such
24    supplementary State aid payment shall be paid to the district
25    as provided  in  Section  18-8.4  and  shall  be  treated  as
26    separate  from  all  other  payments  made  pursuant  to this
27    Section 18-8.
28        (n)  The number  of  low  income  eligible  pupils  in  a
29    district  shall result in an increase in the weighted average
30    daily attendance calculated as follows:  The  number  of  low
31    income pupils shall increase the weighted ADA by .53 for each
32    student  adjusted  by  dividing  the  percent  of  low income
33    eligible pupils in the district by the ratio of eligible  low
34    income  pupils  in  the  State to the best 3 months' weighted
                            -32-               LRB9002616THpk
 1    average daily attendance in the State.  In no  case  may  the
 2    adjustment under this paragraph result in a greater weighting
 3    than  .625  for each eligible low income student.  The number
 4    of low income eligible pupils in  a  district  shall  be  the
 5    low-income  eligible  count  from the most recently available
 6    federal census and  the  weighted  average  daily  attendance
 7    shall  be  calculated in accordance with the other provisions
 8    of this paragraph.
 9        (o)  Any school district which fails for any given school
10    year to maintain school as required by law, or to maintain  a
11    recognized  school  is  not  eligible to file for such school
12    year any claim upon the  common  school  fund.   In  case  of
13    nonrecognition  of one or more attendance centers in a school
14    district otherwise operating recognized schools, the claim of
15    the district shall be reduced in  the  proportion  which  the
16    average  daily attendance in the attendance center or centers
17    bear to the average daily attendance in the school  district.
18    A "recognized school" means any public school which meets the
19    standards  as  established for recognition by the State Board
20    of Education.  A school district  or  attendance  center  not
21    having  recognition  status  at  the  end of a school term is
22    entitled to receive State aid payments due upon a legal claim
23    which was filed while it was recognized.
24        (p)  School district claims filed under this Section  are
25    subject  to  Sections 18-9, 18-10 and 18-12, except as herein
26    otherwise provided.
27        (q)  The State Board of Education shall secure  from  the
28    Department  of  Revenue the value as equalized or assessed by
29    the Department of Revenue of all taxable  property  of  every
30    school district together with the applicable tax rate used in
31    extending taxes for the funds of the district as of September
32    30 of the previous year.  The Department of Revenue shall add
33    to  the  equalized  assessed value of all taxable property of
34    each school district situated entirely or partially within  a
                            -33-               LRB9002616THpk
 1    county  with 2,000,000 or more inhabitants an amount equal to
 2    the total amount by which the  homestead  exemptions  allowed
 3    under Sections 15-170 and 15-175 of the Property Tax Code for
 4    real  property  situated  in that school district exceeds the
 5    total amount that would have  been  allowed  in  that  school
 6    district  as homestead exemptions under those Sections if the
 7    maximum reduction under Section 15-170 of  the  Property  Tax
 8    Code  was  $2,000  and  the  maximum  reduction under Section
 9    15-175 of the Property Tax Code was $3,500.  The county clerk
10    of any  county  with  2,000,000  or  more  inhabitants  shall
11    annually  calculate  and  certify  to the Department for each
12    school district all homestead exemption amounts  required  by
13    this amendatory Act of 1992.  In a new district which has not
14    had  any  tax  rates yet determined for extension of taxes, a
15    leveled uniform rate shall be computed from the latest amount
16    of the fund taxes extended on the several areas  within  such
17    new district.
18        (r)  If  a  school  district  operates a full year school
19    under Section 10-19.1, the general state aid  to  the  school
20    district  shall be determined by the State Board of Education
21    in accordance with this Section as near as may be applicable.
22        2.  New  or  recomputed  claim.  The  general  State  aid
23    entitlement for a newly created school district or a district
24    which has annexed an entire school district shall be computed
25    using  attendance,  compensatory  pupil   counts,   equalized
26    assessed  valuation,  and tax rate data which would have been
27    used had the district been in existence for 3 years.  General
28    State  aid  entitlements  shall  not  be recomputed except as
29    permitted herein.
30        3.  Impaction.   Impaction  payments  shall  be  made  as
31    provided for in Section 18-4.2.
32        4.  Summer school.  Summer school payments shall be  made
33    as provided in Section 18-4.3.
34        5.  Computation  of  State aid.  The State grant shall be
                            -34-               LRB9002616THpk
 1    determined as follows:
 2        (a)  The State shall guarantee the amount of money that a
 3    district's operating tax rate as limited in other Sections of
 4    this Act would produce if every district  maintaining  grades
 5    kindergarten  through  12 had an equalized assessed valuation
 6    equal to $74,791  per  weighted  ADA  pupil;  every  district
 7    maintaining  grades  kindergarten  through 8 had an equalized
 8    assessed valuation of $108,644 per weighted  ADA  pupil;  and
 9    every  district  maintaining  grades  9  through  12  had  an
10    equalized  assessed  valuation  of  $187,657 per weighted ADA
11    pupil.  The  State  Board  of  Education  shall  adjust   the
12    equalized   assessed   valuation   amounts   stated  in  this
13    paragraph, if necessary, to conform  to  the  amount  of  the
14    appropriation approved for any fiscal year.
15        (b)  The  operating  tax rate to be used shall consist of
16    all district taxes extended for all purposes except community
17    college educational purposes for the payment of tuition under
18    Section 6-1 of the Public Community  College  Act,  Bond  and
19    Interest,   Summer  School,  Rent,  Capital  Improvement  and
20    Vocational Education Building.  Any  district  may  elect  to
21    exclude  Transportation from the calculation of its operating
22    tax rate.  Districts  may  include  taxes  extended  for  the
23    payment  of  principal and interest on bonds issued under the
24    provisions of Sections 17-2.11a and 20-2 at a  rate  of  .05%
25    per  year  for  each  purpose  or  the  actual rate extended,
26    whichever is less. In calculating the operating tax  rate  of
27    any  school  district  for  purposes  of  this  Section,  any
28    abatement  required  by Section 40 of the Local Option School
29    District Income Tax Act in the extension against  residential
30    property  of  any  tax  levied  by  the  school  district for
31    educational, operations and maintenance,  and  transportation
32    purposes   shall  be  disregarded,  and  the  rate  per  cent
33    applicable to the extension of the district's taxes  for  its
34    educational,  operations  and maintenance, and transportation
                            -35-               LRB9002616THpk
 1    purposes, as a component of its operating tax rate, shall  be
 2    computed on the basis of the amount actually certified by the
 3    district  to  be  levied  for  such of those purposes are not
 4    excluded from that rate, unreduced by any abatement  required
 5    under  Section  40 of the Local Option School District Income
 6    Tax Act.
 7        (c)  For calculation of aid under  this  Act  a  district
 8    shall  use the combined authorized tax rates of all funds not
 9    exempt in (b) above, not to exceed 2.76% of the value of  all
10    its   taxable  property  as  equalized  or  assessed  by  the
11    Department  of  Revenue  for  districts  maintaining   grades
12    kindergarten  through  12;  1.90%  of  the  value  of all its
13    taxable property as equalized or assessed by  the  Department
14    of  Revenue  for  districts  maintaining  grades kindergarten
15    through 8 only;  1.10%  of  the  value  of  all  its  taxable
16    property  as  equalized  or  assessed  by  the  Department of
17    Revenue for districts maintaining grades 9 through  12  only.
18    A  district may, however, as provided in Article 17, increase
19    its operating tax rate above the  maximum  rate  provided  in
20    this  subsection without affecting the amount of State aid to
21    which it is entitled under this Act.
22        (d) (1)  For districts  maintaining  grades  kindergarten
23    through  12  with  an  operating  tax  rate  as  described in
24    subsections 5(b) and (c) of less than  2.18%,  and  districts
25    maintaining  grades  kindergarten through 8 with an operating
26    tax rate of less than 1.28%, State aid shall be  computed  by
27    multiplying  the  difference between the guaranteed equalized
28    assessed valuation per weighted ADA pupil in subsection  5(a)
29    and  the  equalized assessed valuation per weighted ADA pupil
30    in the district by the operating tax rate, multiplied by  the
31    weighted  average daily attendance of the district; provided,
32    however, that for the 1989-1990 school year  only,  a  school
33    district  maintaining  grades  kindergarten  through  8 whose
34    operating tax rate with reference to which its general  State
                            -36-               LRB9002616THpk
 1    aid  for the 1989-1990 school year is determined is less than
 2    1.28% and more than 1.090%, and which had  an  operating  tax
 3    rate  of  1.28% or more for the previous year, shall have its
 4    general State aid computed according  to  the  provisions  of
 5    subsection 5(d)(2).
 6        (2)  For   districts   maintaining   grades  kindergarten
 7    through 12  with  an  operating  tax  rate  as  described  in
 8    subsection  5(b)  and  (c)  of 2.18% and above, the State aid
 9    shall be computed as provided in subsection (d)  (1)  but  as
10    though  the  district  had an operating tax rate of 2.76%; in
11    K-8 districts with an operating tax rate of 1.28% and  above,
12    the State aid shall be computed as provided in subsection (d)
13    (1)  but  as though the district had an operating tax rate of
14    1.90%; and in 9-12 districts, the State aid shall be computed
15    by  multiplying  the  difference   between   the   guaranteed
16    equalized  assessed  valuation  per  weighted  average  daily
17    attendance   pupil  in  subsection  5(a)  and  the  equalized
18    assessed valuation  per  weighted  average  daily  attendance
19    pupil  in  the  district  by  the  operating tax rate, not to
20    exceed  1.10%,  multiplied  by  the  weighted  average  daily
21    attendance of the district.  State  aid  computed  under  the
22    provisions  of  this  subsection  (d) (2) shall be treated as
23    separate from  all  other  payments  made  pursuant  to  this
24    Section.   The  State  Comptroller  and State Treasurer shall
25    transfer from the General Revenue Fund to the  Common  School
26    Fund  the amounts necessary to permit these claims to be paid
27    in equal installments along with  other  State  aid  payments
28    remaining to be made for the 1983-1984 school year under this
29    Section.
30        (3)  For   any   school  district  whose  1995  equalized
31    assessed  valuation  is  at  least  6%  less  than  its  1994
32    equalized assessed valuation as the result of a reduction  in
33    the  equalized  assessed  valuation  of  the taxable property
34    within such  district  of  any  one  taxpayer  whose  taxable
                            -37-               LRB9002616THpk
 1    property  within  the  district has a 1994 equalized assessed
 2    valuation constituting at least 20%  of  the  1994  equalized
 3    assessed   valuation  of  all  taxable  property  within  the
 4    district, the 1996-97 State aid of  such  district  shall  be
 5    computed using its 1995 equalized assessed valuation.
 6        (4)  For   any   school  district  whose  1988  equalized
 7    assessed valuation is 55%  or  less  of  its  1981  equalized
 8    assessed  valuation,  the  1990-91 State aid of such district
 9    shall be computed by multiplying the 1988 equalized  assessed
10    valuation  by a factor of .8.  Any such school district which
11    is reorganized effective for the 1991-92  school  year  shall
12    use the formula provided in this subparagraph for purposes of
13    the  calculation  made  pursuant  to  subsection  (m) of this
14    Section.
15        (e)  The amount of State aid shall be computed under  the
16    provisions  of  subsections  5(a)  through  5(d) provided the
17    equalized assessed valuation per weighted ADA pupil  is  less
18    than  .87 of the amounts in subsection 5(a). If the equalized
19    assessed valuation per weighted ADA  pupil  is  equal  to  or
20    greater than .87 of the amounts in subsection 5(a), the State
21    aid  shall  be  computed  under  the provisions of subsection
22    5(f).
23        (f)  If the equalized assessed valuation per weighted ADA
24    pupil is equal to or greater  than  .87  of  the  amounts  in
25    subsection  5(a),  the State aid per weighted ADA pupil shall
26    be computed by multiplying  the  product  of  .13  times  the
27    maximum  per  pupil  amount  computed under the provisions of
28    subsections 5(a) through 5(d)  by  an  amount  equal  to  the
29    quotient  of  .87  times the equalized assessed valuation per
30    weighted ADA pupil  in  subsection  5(a)  for  that  type  of
31    district  divided  by  the  district  equalized valuation per
32    weighted ADA pupil except  in  no  case  shall  the  district
33    receive  State  aid  per  weighted ADA pupil of less than .07
34    times  the  maximum  per  pupil  amount  computed  under  the
                            -38-               LRB9002616THpk
 1    provisions of subsections 5(a) through 5(d).
 2        (g)  In addition  to  the  above  grants,  summer  school
 3    grants  shall  be made based upon the calculation as provided
 4    in subsection 4 of this Section.
 5        (h)  The board of  any  district  receiving  any  of  the
 6    grants  provided for in this Section may apply those funds to
 7    any fund so received for which that board  is  authorized  to
 8    make expenditures by law.
 9        (i) (1) (a)  In  school  districts  with an average daily
10    attendance of 50,000 or more, the amount  which  is  provided
11    under subsection 1(n) of this Section by the application of a
12    base  Chapter 1 weighting factor of .375 shall be distributed
13    to the attendance centers within the district  in  proportion
14    to  the  number  of pupils enrolled at each attendance center
15    who are eligible to receive free or reduced-price lunches  or
16    breakfasts  under the federal Child Nutrition Act of 1966 and
17    under the National School Lunch Act  during  the  immediately
18    preceding  school  year.   The  amount  of State aid provided
19    under subsection 1(n) of this Section by the  application  of
20    the  Chapter  1  weighting  factor in excess of .375 shall be
21    distributed to the attendance centers within the district  in
22    proportion to the total enrollment at each attendance center.
23    Beginning  with  school  year  1989-90,  and each school year
24    thereafter, all funds provided under subsection 1 (n) of this
25    Section by the application of the Chapter 1 weighting  factor
26    which  are  in  excess of the level of non-targeted Chapter 1
27    funds  in  school  year  1988-89  shall  be  distributed   to
28    attendance  centers,  and  only to attendance centers, within
29    the district in proportion to the number of  pupils  enrolled
30    at each attendance center who are eligible to receive free or
31    reduced  price  lunches or breakfasts under the Federal Child
32    Nutrition Act and under the National School Lunch Act  during
33    the  immediately  preceding school year.  Beginning in school
34    year 1989-90, 25% of the previously  non-targeted  Chapter  1
                            -39-               LRB9002616THpk
 1    funds  as  established  for school year 1988-89 shall also be
 2    distributed to the attendance centers, and only to attendance
 3    centers, in the district  in  proportion  to  the  number  of
 4    pupils enrolled at each attendance center who are eligible to
 5    receive free or reduced price lunches or breakfasts under the
 6    Federal  Child  Nutrition  Act  and under the National School
 7    Lunch Act during the immediately preceding  school  year;  in
 8    school  year  1990-91,  50%  of  the  previously non-targeted
 9    Chapter 1 funds as established for school year 1988-89  shall
10    be  distributed to attendance centers, and only to attendance
11    centers, in the district  in  proportion  to  the  number  of
12    pupils enrolled at each attendance center who are eligible to
13    receive  such  free  or  reduced  price lunches or breakfasts
14    during the immediately preceding school year; in school  year
15    1991-92,  75%  of the previously non-targeted Chapter 1 funds
16    as established for school year 1988-89 shall  be  distributed
17    to attendance centers, and only to attendance centers, in the
18    district  in  proportion  to the number of pupils enrolled at
19    each attendance center who are eligible to receive such  free
20    or reduced price lunches or breakfasts during the immediately
21    preceding school year; in school year 1992-93 and thereafter,
22    all  funds provided under subsection 1 (n) of this Section by
23    the application of the Chapter 1 weighting  factor  shall  be
24    distributed  to  attendance  centers,  and only to attendance
25    centers, in the district  in  proportion  to  the  number  of
26    pupils enrolled at each attendance center who are eligible to
27    receive free or reduced price lunches or breakfasts under the
28    Federal  Child  Nutrition  Act  and under the National School
29    Lunch Act  during  the  immediately  preceding  school  year;
30    provided,  however,  that  the distribution formula in effect
31    beginning with school year 1989-90 shall not be applicable to
32    such portion of State aid provided under subsection 1 (n)  of
33    this  Section  by  the application of the Chapter 1 weighting
34    formula as is  set  aside  and  appropriated  by  the  school
                            -40-               LRB9002616THpk
 1    district  for the purpose of providing desegregation programs
 2    and related transportation to students (which  portion  shall
 3    not  exceed  5%  of  the  total  amount of State aid which is
 4    provided  under  subsection  1  (n)  of   this   Section   by
 5    application  of  the  Chapter  1  weighting formula), and the
 6    relevant  percentages  shall  be  applied  to  the  remaining
 7    portion  of  such  State  aid.   The  distribution  of  these
 8    portions  of  general  State  aid  among  attendance  centers
 9    according to these requirements shall not be compensated  for
10    or  contravened  by  adjustments  of the total of other funds
11    appropriated to any attendance centers.   (b)  The  Board  of
12    Education  shall  utilize funding from one or several sources
13    in order to fully implement this provision annually prior  to
14    the  opening  of  school.  The Board of Education shall apply
15    savings from  reduced  administrative  costs  required  under
16    Section  34-43.1  and growth in non-Chapter 1 State and local
17    funds to assure that all attendance centers  receive  funding
18    to replace losses due to redistribution of Chapter 1 funding.
19    The distribution formula and funding to replace losses due to
20    the  distribution formula shall occur, in full, using any and
21    all sources available, including, if necessary, revenue  from
22    administrative  reductions  beyond  those required in Section
23    34-43.1, in order to provide the necessary funds.   (c)  Each
24    attendance  center shall be provided by the school district a
25    distribution of noncategorical funds  and  other  categorical
26    funds  to which an attendance center is entitled under law in
27    order that the State  aid  provided  by  application  of  the
28    Chapter  1  weighting  factor  and required to be distributed
29    among attendance centers according  to  the  requirements  of
30    this   paragraph   supplements   rather  than  supplants  the
31    noncategorical funds and other categorical funds provided  by
32    the    school    district    to   the   attendance   centers.
33    Notwithstanding the foregoing provisions of  this  subsection
34    5(i)(1)  or any other law to the contrary, beginning with the
                            -41-               LRB9002616THpk
 1    1995-1996 school year and for each  school  year  thereafter,
 2    the  board  of  a  school district to which the provisions of
 3    this subsection  apply  shall  be  required  to  allocate  or
 4    provide  to  attendance  centers  of the district in any such
 5    school year, from the State aid  provided  for  the  district
 6    under  this Section by application of the Chapter 1 weighting
 7    factor, an aggregate amount of not less than $261,000,000  of
 8    State  Chapter  1  funds.  Any  State Chapter 1 funds that by
 9    reason of the provisions of this paragraph are  not  required
10    to  be  allocated  and  provided to attendance centers may be
11    used and appropriated by the board of the  district  for  any
12    lawful  school  purpose.    Chapter  1  funds  received by an
13    attendance  center  (except  those  funds   set   aside   for
14    desegregation   programs   and   related   transportation  to
15    students) shall be used on the schedule cited in this Section
16    at the attendance center at the discretion of  the  principal
17    and  local school council for programs to improve educational
18    opportunities at qualifying  schools  through  the  following
19    programs  and  services:  early  childhood education, reduced
20    class size or improved  adult  to  student  classroom  ratio,
21    enrichment    programs,   remedial   assistance,   attendance
22    improvement and other educationally  beneficial  expenditures
23    which supplement the regular and basic programs as determined
24    by  the  State Board of Education.  Chapter 1 funds shall not
25    be expended for any political or lobbying purposes as defined
26    by board rule. (d) Each district subject to the provisions of
27    this paragraph shall submit an acceptable plan  to  meet  the
28    educational  needs  of  disadvantaged children, in compliance
29    with the requirements of this paragraph, to the  State  Board
30    of  Education  prior to July 15 of each year. This plan shall
31    be consistent with the decisions  of  local  school  councils
32    concerning   the   school   expenditure  plans  developed  in
33    accordance with part 4 of Section 34-2.3.   The  State  Board
34    shall  approve  or  reject  the plan within 60 days after its
                            -42-               LRB9002616THpk
 1    submission.  If the plan is rejected the district shall  give
 2    written notice of intent to modify the plan within 15 days of
 3    the notification of rejection and then submit a modified plan
 4    within 30 days after the date of the written notice of intent
 5    to  modify.    Districts may amend approved plans pursuant to
 6    rules promulgated by the State Board of Education.
 7        Upon notification by the State Board  of  Education  that
 8    the  district  has not submitted a plan prior to July 15 or a
 9    modified plan within the time period  specified  herein,  the
10    State  aid funds affected by said plan or modified plan shall
11    be withheld by the State Board of Education until a  plan  or
12    modified plan is submitted.
13        If   the  district  fails  to  distribute  State  aid  to
14    attendance centers in accordance with an approved  plan,  the
15    plan for the following year shall allocate funds, in addition
16    to  the  funds  otherwise  required  by this subparagraph, to
17    those attendance centers which were  underfunded  during  the
18    previous year in amounts equal to such underfunding.
19        For   purposes   of   determining  compliance  with  this
20    subsection  in  relation  to  Chapter  1  expenditures,  each
21    district subject to the provisions of this  subsection  shall
22    submit  as  a  separate document by December 1 of each year a
23    report of Chapter 1 expenditure data for the  prior  year  in
24    addition  to  any modification of its current plan.  If it is
25    determined that there has been a failure to comply  with  the
26    expenditure   provisions   of   this   subsection   regarding
27    contravention  or  supplanting,  the  State Superintendent of
28    Education shall, within 60 days of  receipt  of  the  report,
29    notify  the  district  and any affected local school council.
30    The  district  shall  within  45  days  of  receipt  of  that
31    notification inform the State Superintendent of Education  of
32    the  remedial  or  corrective action to be taken, whether  by
33    amendment of the current plan, if feasible, or by  adjustment
34    in  the  plan for the following year.  Failure to provide the
                            -43-               LRB9002616THpk
 1    expenditure  report  or  the  notification  of  remedial   or
 2    corrective  action  in  a  timely  manner  shall  result in a
 3    withholding of the affected funds.
 4        The State Board of Education shall promulgate  rules  and
 5    regulations  to  implement  the provisions of this subsection
 6    5(i)(1).  No funds shall be released under subsection 1(n) of
 7    this Section or under this subsection 5(i)(1) to any district
 8    which has not submitted a plan which has been approved by the
 9    State Board of Education.
10        (2)  School districts with an average daily attendance of
11    more than 1,000 and less than 50,000 and having a low  income
12    pupil  weighting  factor in excess of .53 shall submit a plan
13    to the State Board of Education prior to October 30  of  each
14    year  for the use of the funds resulting from the application
15    of subsection 1(n) of this Section  for  the  improvement  of
16    instruction  in  which  priority  is  given  to  meeting  the
17    education  needs  of disadvantaged children.  Such plan shall
18    be  submitted  in  accordance  with  rules  and   regulations
19    promulgated by the State Board of Education.
20        (j)  For the purposes of calculating State aid under this
21    Section, with respect to any part of a school district within
22    a   redevelopment   project   area  in  respect  to  which  a
23    municipality has adopted tax increment  allocation  financing
24    pursuant  to  the Tax Increment Allocation Redevelopment Act,
25    Sections  11-74.4-1  through  11-74.4-11  of   the   Illinois
26    Municipal  Code or the Industrial Jobs Recovery Law, Sections
27    11-74.6-1 through 11-74.6-50 of the Illinois Municipal  Code,
28    no  part  of the current equalized assessed valuation of real
29    property  located  in  any  such  project   area   which   is
30    attributable to an increase above the total initial equalized
31    assessed   valuation  of  such  property  shall  be  used  in
32    computing the equalized assessed valuation per  weighted  ADA
33    pupil  in  the district, until such time as all redevelopment
34    project  costs  have  been  paid,  as  provided  in   Section
                            -44-               LRB9002616THpk
 1    11-74.4-8  of  the Tax Increment Allocation Redevelopment Act
 2    or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
 3    For the purpose of computing the equalized assessed valuation
 4    per weighted ADA pupil in  the  district  the  total  initial
 5    equalized   assessed   valuation  or  the  current  equalized
 6    assessed valuation, whichever is lower, shall be  used  until
 7    such time as all redevelopment project costs have been paid.
 8        (k)  For  a school district operating under the financial
 9    supervision of an Authority created under  Article  34A,  the
10    State  aid  otherwise  payable  to  that  district under this
11    Section, other than  State  aid  attributable  to  Chapter  1
12    students,  shall  be reduced by an amount equal to the budget
13    for the operations of  the  Authority  as  certified  by  the
14    Authority  to  the  State  Board  of Education, and an amount
15    equal to such  reduction  shall  be  paid  to  the  Authority
16    created  for  such district for its operating expenses in the
17    manner provided in Section 18-11.   The  remainder  of  State
18    school  aid for any such district shall be paid in accordance
19    with Article 34A when that Article provides for a disposition
20    other than that provided by this Article.
21        (l)  For purposes of calculating  State  aid  under  this
22    Section,  the  equalized  assessed  valuation  for  a  school
23    district  used  to  compute  State aid shall be determined by
24    adding to the real property equalized assessed valuation  for
25    the  district  an  amount  computed by dividing the amount of
26    money received by the district under the  provisions  of  "An
27    Act  in  relation  to  the  abolition  of ad valorem personal
28    property tax and the replacement of revenues  lost  thereby",
29    certified  August  14,  1979,  by  the total tax rate for the
30    district. For purposes of  this  subsection  1976  tax  rates
31    shall  be used for school districts in the county of Cook and
32    1977 tax rates shall be used  for  school  districts  in  all
33    other counties.
34        (m) (1)  For  a  new  school district formed by combining
                            -45-               LRB9002616THpk
 1    property  included  totally  within  2  or  more   previously
 2    existing school districts, for its first year of existence or
 3    if  the  new  district  was formed after October 31, 1982 and
 4    prior  to  September  23,  1985,  for  the  year  immediately
 5    following September 23, 1985, the State aid calculated  under
 6    this  Section  shall be computed for the new district and for
 7    the previously  existing  districts  for  which  property  is
 8    totally included within the new district.  If the computation
 9    on the basis of the previously existing districts is greater,
10    a supplementary payment equal to the difference shall be made
11    for  the first 3 years of existence of the new district or if
12    the new district was formed after October 31, 1982 and  prior
13    to  September 23, 1985, for the 3 years immediately following
14    September 23, 1985.
15        (2)  For a school  district  which  annexes  all  of  the
16    territory  of  one or more entire other school districts, for
17    the  first  year  during  which  the  change  of   boundaries
18    attributable  to  such  annexation  becomes effective for all
19    purposes as determined under Section 7-9 or 7A-8,  the  State
20    aid  calculated  under this Section shall be computed for the
21    annexing district as constituted after the annexation and for
22    the annexing and each annexed district as  constituted  prior
23    to the annexation; and if the computation on the basis of the
24    annexing  and  annexed  districts as constituted prior to the
25    annexation is greater, a supplementary payment equal  to  the
26    difference  shall  be made for the first 3 years of existence
27    of the annexing school  district  as  constituted  upon  such
28    annexation.
29        (3)  For  2  or  more school districts which annex all of
30    the territory of one or more entire other  school  districts,
31    and  for 2 or more community unit districts which result upon
32    the division (pursuant to petition under  Section  11A-2)  of
33    one  or more other unit school districts into 2 or more parts
34    and which together include all of the parts into  which  such
                            -46-               LRB9002616THpk
 1    other  unit  school district or districts are so divided, for
 2    the  first  year  during  which  the  change  of   boundaries
 3    attributable to such annexation or division becomes effective
 4    for  all  purposes as determined under Section 7-9 or 11A-10,
 5    as the case may be,  the  State  aid  calculated  under  this
 6    Section  shall  be  computed  for  each annexing or resulting
 7    district as constituted after the annexation or division  and
 8    for each annexing and annexed district, or for each resulting
 9    and  divided district, as constituted prior to the annexation
10    or division; and if the aggregate of  the  State  aid  as  so
11    computed   for   the   annexing  or  resulting  districts  as
12    constituted after the annexation or division is less than the
13    aggregate of the State aid as so computed  for  the  annexing
14    and  annexed  districts,  or  for  the  resulting and divided
15    districts,  as  constituted  prior  to  the   annexation   or
16    division,   then   a   supplementary  payment  equal  to  the
17    difference shall be made and allocated between or  among  the
18    annexing  or  resulting  districts,  as constituted upon such
19    annexation or division,  for  the  first  3  years  of  their
20    existence.   The  total difference payment shall be allocated
21    between or among the annexing or resulting districts  in  the
22    same  ratio  as the pupil enrollment from that portion of the
23    annexed or divided district or districts which is annexed  to
24    or included in each such annexing or resulting district bears
25    to  the  total  pupil  enrollment  from the entire annexed or
26    divided district or districts, as such  pupil  enrollment  is
27    determined  for the school year last ending prior to the date
28    when the change of boundaries attributable to the  annexation
29    or  division  becomes effective for all purposes.  The amount
30    of the total difference payment and the amount thereof to  be
31    allocated  to  the  annexing  or resulting districts shall be
32    computed by the State Board of  Education  on  the  basis  of
33    pupil  enrollment  and other data which shall be certified to
34    the State Board of Education, on forms which it shall provide
                            -47-               LRB9002616THpk
 1    for that purpose, by the regional superintendent  of  schools
 2    for each educational service region in which the annexing and
 3    annexed  districts,  or  resulting  and divided districts are
 4    located.
 5        (4)  If a unit school district annexes all the  territory
 6    of  another  unit  school district effective for all purposes
 7    pursuant to Section 7-9 on July 1, 1988, and if part  of  the
 8    annexed  territory  is  detached within 90 days after July 1,
 9    1988, then the detachment shall be disregarded  in  computing
10    the supplementary State aid payments under this paragraph (m)
11    for  the entire 3 year period and the supplementary State aid
12    payments shall not be diminished because of the detachment.
13        (5)  Any supplementary State aid payment made under  this
14    paragraph  (m)  shall  be  treated as separate from all other
15    payments made pursuant to this Section.
16        (n)  For the purposes of calculating State aid under this
17    Section, the real property equalized assessed valuation for a
18    school district used to compute State aid shall be determined
19    by subtracting from the real property value as  equalized  or
20    assessed  by  the  Department  of Revenue for the district an
21    amount computed by dividing the amount of  any  abatement  of
22    taxes  under  Section  18-170 of the Property Tax Code by the
23    maximum operating tax rates specified in subsection  5(c)  of
24    this Section and an amount computed by dividing the amount of
25    any abatement of taxes under subsection (a) of Section 18-165
26    of  the  Property Tax Code by the maximum operating tax rates
27    specified in subsection 5(c) of this Section.
28        (o)  Notwithstanding  any  other   provisions   of   this
29    Section,  for  the  1996-1997  school  year the amount of the
30    aggregate general State  aid  entitlement  that  is  received
31    under  this  Section  by each school district for that school
32    year shall be not less  than  the  amount  of  the  aggregate
33    general  State  aid  entitlement  that  was  received  by the
34    district under this Section for the 1995-1996 school year. If
                            -48-               LRB9002616THpk
 1    a school district is to receive an  aggregate  general  State
 2    aid  entitlement  under this Section for the 1996-1997 school
 3    year that is less than the amount of  the  aggregate  general
 4    State  aid  entitlement that the district received under this
 5    Section for the 1995-1996 school year,  the  school  district
 6    shall  also  receive,  from a separate appropriation made for
 7    purposes of this paragraph (o), a supplementary payment  that
 8    is  equal  to  the  amount  by  which  the  general State aid
 9    entitlement received by the district under this  Section  for
10    the  1995-1996  school  year  exceeds  the  general State aid
11    entitlement that  the  district  is  to  receive  under  this
12    Section  for  the  1996-1997  school  year.   If  the  amount
13    appropriated  for  supplementary payments to school districts
14    under this paragraph (o) is insufficient  for  that  purpose,
15    the  supplementary  payments  that  districts  are to receive
16    under this paragraph  shall  be  prorated  according  to  the
17    aggregate  amount  of  the appropriation made for purposes of
18    this paragraph.
19        (p)  Notwithstanding any provision of  the  Local  Option
20    School  District  Income  Tax Act, the adoption or failure to
21    adopt a local income tax for schools and any disbursement  of
22    funds  or  abatement  in the extension of real property taxes
23    resulting from the adoption and imposition of a local  income
24    tax  for  schools  by  one or more school districts under the
25    Local Option School District Income Tax Act shall not  affect
26    the  computation  or distribution of State aid for any school
27    district, and all computations of State  aid  and  all  other
28    distributions  of  State  funds  to  school  districts  shall
29    proceed  without regard to changes in school funding provided
30    in the Local Option School District Income Tax Act.
31        B.  In calculating the amount to be paid to the governing
32    board of a  public  university  that  operates  a  laboratory
33    school  under  this Section or to any alternative school that
34    is operated by a regional superintendent, the State Board  of
                            -49-               LRB9002616THpk
 1    Education  shall  require by rule such reporting requirements
 2    as it deems necessary.
 3        As used in this  Section,  "laboratory  school"  means  a
 4    public  school  which  is  created  and  operated by a public
 5    university and approved by the State Board of Education.  The
 6    governing board of a public university which  receives  funds
 7    from the State Board under this subsection B may not increase
 8    the number of students enrolled in its laboratory school from
 9    a  single district, if that district is already sending 50 or
10    more students, except under a mutual  agreement  between  the
11    school  board  of  a  student's district of residence and the
12    university  which  operates   the   laboratory   school.    A
13    laboratory  school  may  not  have  more than 1,000 students,
14    excluding students with disabilities in a  special  education
15    program.
16        As  used  in  this  Section, "alternative school" means a
17    public school which is created and  operated  by  a  Regional
18    Superintendent  of Schools and approved by the State Board of
19    Education. Such alternative  schools  may  offer  courses  of
20    instruction  for  which  credit  is  given  in regular school
21    programs, courses to prepare students  for  the  high  school
22    equivalency  testing  program  or vocational and occupational
23    training.
24        Each laboratory and alternative  school  shall  file,  on
25    forms  provided  by the State Superintendent of Education, an
26    annual  State  aid  claim  which  states  the  average  daily
27    attendance of the school's students by  month.   The  best  3
28    months'  average  daily attendance shall be computed for each
29    school.  The  weighted  average  daily  attendance  shall  be
30    computed  and  the  weighted average daily attendance for the
31    school's most recent 3 year average shall be compared to  the
32    most  recent  weighted  average  daily  attendance,  and  the
33    greater of the 2 shall be used for the calculation under this
34    subsection  B.   The  general  State aid entitlement shall be
                            -50-               LRB9002616THpk
 1    computed by multiplying the school's  student  count  by  the
 2    foundation level as determined under this Section.
 3    (Source: P.A.  88-9;  88-45;  88-89;  88-386; 88-511; 88-537;
 4    88-555; 88-641; 88-670, eff. 12-2-94;  89-15,  eff.  5-30-95;
 5    89-235,  eff.  8-4-95;  89-397,  eff.  8-20-95;  89-610, eff.
 6    8-6-96; 89-618, eff. 8-9-96;  89-626,  eff.  8-9-96;  89-679,
 7    eff. 8-16-96; revised 9-10-96.)
 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.
                            -51-               LRB9002616THpk
 1                                INDEX
 2               Statutes amended in order of appearance
 3    30 ILCS 105/5.449 new
 4    35 ILCS 5/512             from Ch. 120, par. 5-512
 5    35 ILCS 200/18-45
 6    35 ILCS 200/18-182 new
 7    35 ILCS 200/18-185
 8    105 ILCS 5/18-8           from Ch. 122, par. 18-8

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