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91_HB2063eng HB2063 Engrossed LRB9103817NTsb 1 AN ACT to amend the School Code by changing Section 2 18-8.05. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The School Code is amended by changing 6 Section 18-8.05 as follows: 7 (105 ILCS 5/18-8.05) 8 Sec. 18-8.05. Basis for apportionment of general State 9 financial aid and supplemental general State aid to the 10 common schoolsfor the 1998-1999 and subsequent school years. 11 (A) General Provisions. 12 (1) The provisions of this Section apply to the 13 1998-1999 and subsequent school years. The system of general 14 State financial aid provided for in this Section is designed 15 to assure that, through a combination of State financial aid 16 and required local resources, the financial support provided 17 each pupil in Average Daily Attendance equals or exceeds a 18 prescribed per pupil Foundation Level. This formula approach 19 imputes a level of per pupil Available Local Resources and 20 provides for the basis to calculate a per pupil level of 21 general State financial aid that, when added to Available 22 Local Resources, equals or exceeds the Foundation Level. The 23 amount of per pupil general State financial aid for school 24 districts, in general, varies in inverse relation to 25 Available Local Resources. Per pupil amounts are based upon 26 each school district's Average Daily Attendance as that term 27 is defined in this Section. 28 (2) In addition to general State financial aid, school 29 districts with specified levels or concentrations of pupils 30 from low income households are eligible to receive 31 supplemental general State financial aid grants as provided HB2063 Engrossed -2- LRB9103817NTsb 1 pursuant to subsection (H). The supplemental State aid grants 2 provided for school districts under subsection (H) shall be 3 appropriated for distribution to school districts as part of 4 the same line item in which the general State financial aid 5 of school districts is appropriated under this Section. 6 (3) To receive financial assistance under this Section, 7 school districts are required to file claims with the State 8 Board of Education, subject to the following requirements: 9 (a) Any school district which fails for any given 10 school year to maintain school as required by law, or to 11 maintain a recognized school is not eligible to file for 12 such school year any claim upon the Common School Fund. 13 In case of nonrecognition of one or more attendance 14 centers in a school district otherwise operating 15 recognized schools, the claim of the district shall be 16 reduced in the proportion which the Average Daily 17 Attendance in the attendance center or centers bear to 18 the Average Daily Attendance in the school district. A 19 "recognized school" means any public school which meets 20 the standards as established for recognition by the State 21 Board of Education. A school district or attendance 22 center not having recognition status at the end of a 23 school term is entitled to receive State aid payments due 24 upon a legal claim which was filed while it was 25 recognized. 26 (b) School district claims filed under this Section 27 are subject to Sections 18-9, 18-10, and 18-12, except as 28 otherwise provided in this Section. 29 (c) If a school district operates a full year 30 school under Section 10-19.1, the general State aid to 31 the school district shall be determined by the State 32 Board of Education in accordance with this Section as 33 near as may be applicable. 34 (d) (Blank). HB2063 Engrossed -3- LRB9103817NTsb 1 (4) Except as provided in subsections (H) and (L), the 2 board of any district receiving any of the grants provided 3 for in this Section may apply those funds to any fund so 4 received for which that board is authorized to make 5 expenditures by law. 6 School districts are not required to exert a minimum 7 Operating Tax Rate in order to qualify for assistance under 8 this Section. 9 (5) As used in this Section the following terms, when 10 capitalized, shall have the meaning ascribed herein: 11 (a) "Average Daily Attendance": A count of pupil 12 attendance in school, averaged as provided for in 13 subsection (C) and utilized in deriving per pupil 14 financial support levels. 15 (b) "Available Local Resources": A computation of 16 local financial support, calculated on the basis of 17 Average Daily Attendance and derived as provided pursuant 18 to subsection (D). 19 (c) "Corporate Personal Property Replacement 20 Taxes": Funds paid to local school districts pursuant to 21 "An Act in relation to the abolition of ad valorem 22 personal property tax and the replacement of revenues 23 lost thereby, and amending and repealing certain Acts and 24 parts of Acts in connection therewith", certified August 25 14, 1979, as amended (Public Act 81-1st S.S.-1). 26 (d) "Foundation Level": A prescribed level of per 27 pupil financial support as provided for in subsection 28 (B). 29 (e) "Operating Tax Rate": All school district 30 property taxes extended for all purposes, except Bond and 31 Interest, Summer School, Rent, Capital Improvement, and 32 Vocational Education Building purposes. 33 (B) Foundation Level. 34 (1) The Foundation Level is a figure established by the HB2063 Engrossed -4- LRB9103817NTsb 1 State representing the minimum level of per pupil financial 2 support that should be available to provide for the basic 3 education of each pupil in Average Daily Attendance. As set 4 forth in this Section, each school district is assumed to 5 exert a sufficient local taxing effort such that, in 6 combination with the aggregate of general State financial aid 7 provided the district, an aggregate of State and local 8 resources are available to meet the basic education needs of 9 pupils in the district. 10 (2) For the 1998-1999 school year, the Foundation Level 11 of support is $4,225. For the 1999-2000 school year, the 12 Foundation Level of support is $4,325. For the 2000-2001 13 school year, the Foundation Level of support is $4,425. 14 (3) For the 2001-2002 school year and each school year 15 thereafter, the Foundation Level of support is $4,425 or such 16 greater amount as may be established by law by the General 17 Assembly. 18 (C) Average Daily Attendance. 19 (1) For purposes of calculating general State aid 20 pursuant to subsection (E), an Average Daily Attendance 21 figure shall be utilized. The Average Daily Attendance 22 figure for formula calculation purposes shall be the monthly 23 average of the actual number of pupils in attendance of each 24 school district, as further averaged for the best 3 months of 25 pupil attendance for each school district. In compiling the 26 figures for the number of pupils in attendance, school 27 districts and the State Board of Education shall, for 28 purposes of general State aid funding, conform attendance 29 figures to the requirements of subsection (F). 30 (2) The Average Daily Attendance figures utilized in 31 subsection (E) shall be the requisite attendance data for the 32 school year immediately preceding the school year for which 33 general State aid is being calculated. HB2063 Engrossed -5- LRB9103817NTsb 1 (D) Available Local Resources. 2 (1) For purposes of calculating general State aid 3 pursuant to subsection (E), a representation of Available 4 Local Resources per pupil, as that term is defined and 5 determined in this subsection, shall be utilized. Available 6 Local Resources per pupil shall include a calculated dollar 7 amount representing local school district revenues from local 8 property taxes and from Corporate Personal Property 9 Replacement Taxes, expressed on the basis of pupils in 10 Average Daily Attendance. 11 (2) In determining a school district's revenue from 12 local property taxes, the State Board of Education shall 13 utilize the equalized assessed valuation of all taxable 14 property of each school district as of September 30 of the 15 previous year. The equalized assessed valuation utilized 16 shall be obtained and determined as provided in subsection 17 (G). 18 (3) For school districts maintaining grades kindergarten 19 through 12, local property tax revenues per pupil shall be 20 calculated as the product of the applicable equalized 21 assessed valuation for the district multiplied by 3.00%, and 22 divided by the district's Average Daily Attendance figure. 23 For school districts maintaining grades kindergarten through 24 8, local property tax revenues per pupil shall be calculated 25 as the product of the applicable equalized assessed valuation 26 for the district multiplied by 2.30%, and divided by the 27 district's Average Daily Attendance figure. For school 28 districts maintaining grades 9 through 12, local property tax 29 revenues per pupil shall be the applicable equalized assessed 30 valuation of the district multiplied by 1.20%, and divided by 31 the district's Average Daily Attendance figure. 32 (4) The Corporate Personal Property Replacement Taxes 33 paid to each school district during the calendar year 2 years 34 before the calendar year in which a school year begins, HB2063 Engrossed -6- LRB9103817NTsb 1 divided by the Average Daily Attendance figure for that 2 district, shall be added to the local property tax revenues 3 per pupil as derived by the application of the immediately 4 preceding paragraph (3). The sum of these per pupil figures 5 for each school district shall constitute Available Local 6 Resources as that term is utilized in subsection (E) in the 7 calculation of general State aid. 8 (E) Computation of General State Aid. 9 (1) For each school year, the amount of general State 10 aid allotted to a school district shall be computed by the 11 State Board of Education as provided in this subsection. 12 (2) For any school district for which Available Local 13 Resources per pupil is less than the product of 0.93 times 14 the Foundation Level, general State aid for that district 15 shall be calculated as an amount equal to the Foundation 16 Level minus Available Local Resources, multiplied by the 17 Average Daily Attendance of the school district. 18 (3) For any school district for which Available Local 19 Resources per pupil is equal to or greater than the product 20 of 0.93 times the Foundation Level and less than the product 21 of 1.75 times the Foundation Level, the general State aid per 22 pupil shall be a decimal proportion of the Foundation Level 23 derived using a linear algorithm. Under this linear 24 algorithm, the calculated general State aid per pupil shall 25 decline in direct linear fashion from 0.07 times the 26 Foundation Level for a school district with Available Local 27 Resources equal to the product of 0.93 times the Foundation 28 Level, to 0.05 times the Foundation Level for a school 29 district with Available Local Resources equal to the product 30 of 1.75 times the Foundation Level. The allocation of 31 general State aid for school districts subject to this 32 paragraph 3 shall be the calculated general State aid per 33 pupil figure multiplied by the Average Daily Attendance of 34 the school district. HB2063 Engrossed -7- LRB9103817NTsb 1 (4) For any school district for which Available Local 2 Resources per pupil equals or exceeds the product of 1.75 3 times the Foundation Level, the general State aid for the 4 school district shall be calculated as the product of $218 5 multiplied by the Average Daily Attendance of the school 6 district. 7 (F) Compilation of Average Daily Attendance. 8 (1) Each school district shall, by July 1 of each year, 9 submit to the State Board of Education, on forms prescribed 10 by the State Board of Education, attendance figures for the 11 school year that began in the preceding calendar year. The 12 attendance information so transmitted shall identify the 13 average daily attendance figures for each month of the school 14 year, except that any days of attendance in August shall be 15 added to the month of September and any days of attendance in 16 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 Days of attendance by tuition pupils shall be accredited 27 only to the districts that pay the tuition to a recognized 28 school. 29 (2) Days of attendance by pupils of less than 5 clock 30 hours of school shall be subject to the following provisions 31 in the compilation of Average Daily Attendance. 32 (a) Pupils regularly enrolled in a public school 33 for only a part of the school day may be counted on the 34 basis of 1/6 day for every class hour of instruction of HB2063 Engrossed -8- LRB9103817NTsb 1 40 minutes or more attended pursuant to such enrollment. 2 (b) Days of attendance may be less than 5 clock 3 hours on the opening and closing of the school term, and 4 upon the first day of pupil attendance, if preceded by a 5 day or days utilized as an institute or teachers' 6 workshop. 7 (c) A session of 4 or more clock hours may be 8 counted as a day of attendance upon certification by the 9 regional superintendent, and approved by the State 10 Superintendent of Education to the extent that the 11 district has been forced to use daily multiple sessions. 12 (d) A session of 3 or more clock hours may be 13 counted as a day of attendance (1) when the remainder of 14 the school day or at least 2 hours in the evening of that 15 day is utilized for an in-service training program for 16 teachers, up to a maximum of 5 days per school year of 17 which a maximum of 4 days of such 5 days may be used for 18 parent-teacher conferences, provided a district conducts 19 an in-service training program for teachers which has 20 been approved by the State Superintendent of Education; 21 or, in lieu of 4 such days, 2 full days may be used, in 22 which event each such day may be counted as a day of 23 attendance; and (2) when days in addition to those 24 provided in item (1) are scheduled by a school pursuant 25 to its school improvement plan adopted under Article 34 26 or its revised or amended school improvement plan adopted 27 under Article 2, provided that (i) such sessions of 3 or 28 more clock hours are scheduled to occur at regular 29 intervals, (ii) the remainder of the school days in which 30 such sessions occur are utilized for in-service training 31 programs or other staff development activities for 32 teachers, and (iii) a sufficient number of minutes of 33 school work under the direct supervision of teachers are 34 added to the school days between such regularly scheduled HB2063 Engrossed -9- LRB9103817NTsb 1 sessions to accumulate not less than the number of 2 minutes by which such sessions of 3 or more clock hours 3 fall short of 5 clock hours. Any full days used for the 4 purposes of this paragraph shall not be considered for 5 computing average daily attendance. Days scheduled for 6 in-service training programs, staff development 7 activities, or parent-teacher conferences may be 8 scheduled separately for different grade levels and 9 different attendance centers of the district. 10 (e) A session of not less than one clock hour of 11 teachingofhospitalized or homebound pupils on-site or 12 by telephone to the classroom may be counted as 1/2 day 13 of attendance, however these pupils must receive 4 or 14 more clock hours of instruction to be counted for a full 15 day of attendance. 16 (f) A session of at least 4 clock hours may be 17 counted as a day of attendance for first grade pupils, 18 and pupils in full day kindergartens, and a session of 2 19 or more hours may be counted as 1/2 day of attendance by 20 pupils in kindergartens which provide only 1/2 day of 21 attendance. 22 (g) For children with disabilities who are below 23 the age of 6 years and who cannot attend 2 or more clock 24 hours because of their disability or immaturity, a 25 session of not less than one clock hour may be counted as 26 1/2 day of attendance; however for such children whose 27 educational needs so require a session of 4 or more clock 28 hours may be counted as a full day of attendance. 29 (h) A recognized kindergarten which provides for 30 only 1/2 day of attendance by each pupil shall not have 31 more than 1/2 day of attendance counted in any one1day. 32 However, kindergartens may count 2 1/2 days of attendance 33 in any 5 consecutive school days. When a pupil attends 34 such a kindergarten for 2 half days on any one school HB2063 Engrossed -10- LRB9103817NTsb 1 day, the pupil shall have the following day as a day 2 absent from school, unless the school district obtains 3 permission in writing from the State Superintendent of 4 Education. Attendance at kindergartens which provide for 5 a full day of attendance by each pupil shall be counted 6 the same as attendance by first grade pupils. Only the 7 first year of attendance in one kindergarten shall be 8 counted, except in case of children who entered the 9 kindergarten in their fifth year whose educational 10 development requires a second year of kindergarten as 11 determined under the rules and regulations of the State 12 Board of Education. 13 (G) Equalized Assessed Valuation Data. 14 (1) For purposes of the calculation of Available Local 15 Resources required pursuant to subsection (D), the State 16 Board of Education shall secure from the Department of 17 Revenue the value as equalized or assessed by the Department 18 of Revenue of all taxable property of every school district 19 together with the applicable tax rate used in extending taxes 20 for the funds of the district as of September 30 of the 21 previous year. 22 This equalized assessed valuation, as adjusted further by 23 the requirements of this subsection, shall be utilized in the 24 calculation of Available Local Resources. 25 (2) The equalized assessed valuation in paragraph (1) 26 shall be adjusted, as applicable, in the following manner: 27 (a) For the purposes of calculating State aid under 28 this Section, with respect to any part of a school 29 district within a redevelopment project area in respect 30 to which a municipality has adopted tax increment 31 allocation financing pursuant to the Tax Increment 32 Allocation Redevelopment Act, Sections 11-74.4-1 through 33 11-74.4-11 of the Illinois Municipal Code or the 34 Industrial Jobs Recovery Law, Sections 11-74.6-1 through HB2063 Engrossed -11- LRB9103817NTsb 1 11-74.6-50 of the Illinois Municipal Code, no part of the 2 current equalized assessed valuation of real property 3 located in any such project area which is attributable to 4 an increase above the total initial equalized assessed 5 valuation of such property shall be used as part of the 6 equalized assessed valuation of the district, until such 7 time as all redevelopment project costs have been paid, 8 as provided in Section 11-74.4-8 of the Tax Increment 9 Allocation Redevelopment Act or in Section 11-74.6-35 of 10 the Industrial Jobs Recovery Law. For the purpose of the 11 equalized assessed valuation of the district, the total 12 initial equalized assessed valuation or the current 13 equalized assessed valuation, whichever is lower, shall 14 be used until such time as all redevelopment project 15 costs have been paid. 16 (b) The real property equalized assessed valuation 17 for a school district shall be adjusted by subtracting 18 from the real property value as equalized or assessed by 19 the Department of Revenue for the district an amount 20 computed by dividing the amount of any abatement of taxes 21 under Section 18-170 of the Property Tax Code by 3.00% 22 for a district maintaining grades kindergarten through 12 23 ,orby 2.30% for a district maintaining grades 24 kindergarten through 8, or by 1.20% for a district 25 maintaining grades 9 through 12 and adjusted by an amount 26 computed by dividing the amount of any abatement of taxes 27 under subsection (a) of Section 18-165 of the Property 28 Tax Code by the same percentage rates for district type 29 as specified in this subparagraph (b)(c). 30 (H) Supplemental General State Aid. 31 (1) In addition to the general State aid a school 32 district is allotted pursuant to subsection (E), qualifying 33 school districts shall receive a grant, paid in conjunction 34 with a district's payments of general State aid, for HB2063 Engrossed -12- LRB9103817NTsb 1 supplemental general State aid based upon the concentration 2 level of children from low-income households within the 3 school district. Supplemental State aid grants provided for 4 school districts under this subsection shall be appropriated 5 for distribution to school districts as part of the same line 6 item in which the general State financial aid of school 7 districts is appropriated under this Section. For purposes of 8 this subsection, the term "Low-Income Concentration Level" 9 shall be the low-income eligible pupil count from the most 10 recently available federal census divided by the Average 11 Daily Attendance of the school district. 12 (2) Supplemental general State aid pursuant to this 13 subsection shall be provided as follows: 14 (a) For any school district with a Low Income 15 Concentration Level of at least 20% and less than 35%, 16 the grant for any school year shall be $800 multiplied by 17 the low income eligible pupil count. 18 (b) For any school district with a Low Income 19 Concentration Level of at least 35% and less than 50%, 20 the grant for the 1998-1999 school year shall be $1,100 21 multiplied by the low income eligible pupil count. 22 (c) For any school district with a Low Income 23 Concentration Level of at least 50% and less than 60%, 24 the grant for the 1998-99 school year shall be $1,500 25 multiplied by the low income eligible pupil count. 26 (d) For any school district with a Low Income 27 Concentration Level of 60% or more, the grant for the 28 1998-99 school year shall be $1,900 multiplied by the low 29 income eligible pupil count. 30 (e) For the 1999-2000 school year, the per pupil 31 amount specified in subparagraphs (b), (c), and (d), 32 immediately above shall be increased by $100 to $1,200, 33 $1,600, and $2,000, respectively. 34 (f) For the 2000-2001 school year, the per pupil HB2063 Engrossed -13- LRB9103817NTsb 1 amounts specified in subparagraphs (b), (c) and (d) 2 immediately above shall be increased to $1,230, $1,640, 3 and $2,050, respectively. 4 (3) School districts with an Average Daily Attendance of 5 more than 1,000 and less than 50,000 that qualify for 6 supplemental general State aid pursuant to this subsection 7 shall submit a plan to the State Board of Education prior to 8 October 30 of each year for the use of the funds resulting 9 from this grant of supplemental general State aid for the 10 improvement of instruction in which priority is given to 11 meeting the education needs of disadvantaged children. Such 12 plan shall be submitted in accordance with rules and 13 regulations promulgated by the State Board of Education. 14 (4) School districts with an Average Daily Attendance of 15 50,000 or more that qualify for supplemental general State 16 aid pursuant to this subsection shall be required to 17 distribute from funds available pursuant to this Section, no 18 less than $261,000,000 in accordance with the following 19 requirements: 20 (a) The required amounts shall be distributed to 21 the attendance centers within the district in proportion 22 to the number of pupils enrolled at each attendance 23 center who are eligible to receive free or reduced-price 24 lunches or breakfasts under the federal Child Nutrition 25 Act of 1966 and under the National School Lunch Act 26 during the immediately preceding school year. 27 (b) The distribution of these portions of 28 supplemental and general State aid among attendance 29 centers according to these requirements shall not be 30 compensated for or contravened by adjustments of the 31 total of other funds appropriated to any attendance 32 centers, and the Board of Education shall utilize funding 33 from one or several sources in order to fully implement 34 this provision annually prior to the opening of school. HB2063 Engrossed -14- LRB9103817NTsb 1 (c) Each attendance center shall be provided by the 2 school district a distribution of noncategorical funds 3 and other categorical funds to which an attendance center 4 is entitled under law in order that the general State aid 5 and supplemental general State aid provided by 6 application of this subsection supplements rather than 7 supplants the noncategorical funds and other categorical 8 funds provided by the school district to the attendance 9 centers. 10 (d) Any funds made available under this subsection 11 that by reason of the provisions of this subsection are 12 not required to be allocated and provided to attendance 13 centers may be used and appropriated by the board of the 14 district for any lawful school purpose. 15 (e) Funds received by an attendance center pursuant 16 to this subsection shall be used by the attendance center 17 at the discretion of the principal and local school 18 council for programs to improve educational opportunities 19 at qualifying schools through the following programs and 20 services: early childhood education, reduced class size 21 or improved adult to student classroom ratio, enrichment 22 programs, remedial assistance, attendance improvement, 23 and other educationally beneficial expenditures which 24 supplement the regular and basic programs as determined 25 by the State Board of Education. Funds provided shall 26 not be expended for any political or lobbying purposes as 27 defined by board rule. 28 (f) Each district subject to the provisions of this 29 subdivision (H)(4) shall submit an acceptable plan to 30 meet the educational needs of disadvantaged children, in 31 compliance with the requirements of this paragraph, to 32 the State Board of Education prior to July 15 of each 33 year. This plan shall be consistent with the decisions of 34 local school councils concerning the school expenditure HB2063 Engrossed -15- LRB9103817NTsb 1 plans developed in accordance with part 4 of Section 2 34-2.3. The State Board shall approve or reject the plan 3 within 60 days after its submission. If the plan is 4 rejected, the district shall give written notice of 5 intent to modify the plan within 15 days of the 6 notification of rejection and then submit a modified plan 7 within 30 days after the date of the written notice of 8 intent to modify. Districts may amend approved plans 9 pursuant to rules promulgated by the State Board of 10 Education. 11 Upon notification by the State Board of Education 12 that the district has not submitted a plan prior to July 13 15 or a modified plan within the time period specified 14 herein, the State aid funds affected by that plan or 15 modified plan shall be withheld by the State Board of 16 Education until a plan or modified plan is submitted. 17 If the district fails to distribute State aid to 18 attendance centers in accordance with an approved plan, 19 the plan for the following year shall allocate funds, in 20 addition to the funds otherwise required by this 21 subsection, to those attendance centers which were 22 underfunded during the previous year in amounts equal to 23 such underfunding. 24 For purposes of determining compliance with this 25 subsection in relation to the requirements of attendance 26 center funding, each district subject to the provisions 27 of this subsection shall submit as a separate document by 28 December 1 of each year a report of expenditure data for 29 the prior year in addition to any modification of its 30 current plan. If it is determined that there has been a 31 failure to comply with the expenditure provisions of this 32 subsection regarding contravention or supplanting, the 33 State Superintendent of Education shall, within 60 days 34 of receipt of the report, notify the district and any HB2063 Engrossed -16- LRB9103817NTsb 1 affected local school council. The district shall within 2 45 days of receipt of that notification inform the State 3 Superintendent of Education of the remedial or corrective 4 action to be taken, whether by amendment of the current 5 plan, if feasible, or by adjustment in the plan for the 6 following year. Failure to provide the expenditure 7 report or the notification of remedial or corrective 8 action in a timely manner shall result in a withholding 9 of the affected funds. 10 The State Board of Education shall promulgate rules 11 and regulations to implement the provisions of this 12 subsection. No funds shall be released under this 13 subdivision (H)(4) to any district that has not submitted 14 a plan that has been approved by the State Board of 15 Education. 16 (I) General State Aid for Newly Configured School Districts. 17 (1) For a new school district formed by combining 18 property included totally within 2 or more previously 19 existing school districts, for its first year of existence 20 the general State aid and supplemental general State aid 21 calculated under this Section shall be computed for the new 22 district and for the previously existing districts for which 23 property is totally included within the new district. If the 24 computation on the basis of the previously existing districts 25 is greater, a supplementary payment equal to the difference 26 shall be made for the first 4 years of existence of the new 27 district. 28 (2) For a school district which annexes all of the 29 territory of one or more entire other school districts, for 30 the first year during which the change of boundaries 31 attributable to such annexation becomes effective for all 32 purposes as determined under Section 7-9 or 7A-8, the general 33 State aid and supplemental general State aid calculated under 34 this Section shall be computed for the annexing district as HB2063 Engrossed -17- LRB9103817NTsb 1 constituted after the annexation and for the annexing and 2 each annexed district as constituted prior to the annexation; 3 and if the computation on the basis of the annexing and 4 annexed districts as constituted prior to the annexation is 5 greater, a supplementary payment equal to the difference 6 shall be made for the first 4 years of existence of the 7 annexing school district as constituted upon such annexation. 8 (3) For 2 or more school districts which annex all of 9 the territory of one or more entire other school districts, 10 and for 2 or more community unit districts which result upon 11 the division (pursuant to petition under Section 11A-2) of 12 one or more other unit school districts into 2 or more parts 13 and which together include all of the parts into which such 14 other unit school district or districts are so divided, for 15 the first year during which the change of boundaries 16 attributable to such annexation or division becomes effective 17 for all purposes as determined under Section 7-9 or 11A-10, 18 as the case may be, the general State aid and supplemental 19 general State aid calculated under this Section shall be 20 computed for each annexing or resulting district as 21 constituted after the annexation or division and for each 22 annexing and annexed district, or for each resulting and 23 divided district, as constituted prior to the annexation or 24 division; and if the aggregate of the general State aid and 25 supplemental general State aid as so computed for the 26 annexing or resulting districts as constituted after the 27 annexation or division is less than the aggregate of the 28 general State aid and supplemental general State aid as so 29 computed for the annexing and annexed districts, or for the 30 resulting and divided districts, as constituted prior to the 31 annexation or division, then a supplementary payment equal to 32 the difference shall be made and allocated between or among 33 the annexing or resulting districts, as constituted upon such 34 annexation or division, for the first 4 years of their HB2063 Engrossed -18- LRB9103817NTsb 1 existence. The total difference payment shall be allocated 2 between or among the annexing or resulting districts in the 3 same ratio as the pupil enrollment from that portion of the 4 annexed or divided district or districts which is annexed to 5 or included in each such annexing or resulting district bears 6 to the total pupil enrollment from the entire annexed or 7 divided district or districts, as such pupil enrollment is 8 determined for the school year last ending prior to the date 9 when the change of boundaries attributable to the annexation 10 or division becomes effective for all purposes. The amount 11 of the total difference payment and the amount thereof to be 12 allocated to the annexing or resulting districts shall be 13 computed by the State Board of Education on the basis of 14 pupil enrollment and other data which shall be certified to 15 the State Board of Education, on forms which it shall provide 16 for that purpose, by the regional superintendent of schools 17 for each educational service region in which the annexing and 18 annexed districts, or resulting and divided districts are 19 located. 20 (3.5) Claims for financial assistance under this 21 subsection (I) shall not be recomputed except as expressly 22 provided under this Section. 23 (4) Any supplementary payment made under this subsection 24 (I) shall be treated as separate from all other payments made 25 pursuant to this Section. 26 (J) Supplementary Grants in Aid. 27 (1) Notwithstanding any other provisions of this 28 Section, the amount of the aggregate general State aid in 29 combination with supplemental general State aid under this 30 Section for which each school district is eligible shall be 31 no less than the amount of the aggregate general State aid 32 entitlement that was received by the district under Section 33 18-8 (exclusive of amounts received under subsections 5(p) 34 and 5(p-5) of that Section) for the 1997-98 school year, HB2063 Engrossed -19- LRB9103817NTsb 1 pursuant to the provisions of that Section as it was then in 2 effect. If a school district qualifies to receive a 3 supplementary payment made under this subsection (J), the 4 amount of the aggregate general State aid in combination with 5 supplemental general State aid under this Section which that 6 district is eligible to receive for each school year shall be 7 no less than the amount of the aggregate general State aid 8 entitlement that was received by the district under Section 9 18-8 (exclusive of amounts received under subsections 5(p) 10 and 5(p-5) of that Section) for the 1997-1998 school year, 11 pursuant to the provisions of that Section as it was then in 12 effect. 13 (2) If, as provided in paragraph (1) of this subsection 14 (J), a school district is to receive aggregate general State 15 aid in combination with supplemental general State aid under 16 this Section for the 1998-99 school year and any subsequent 17 school year that in any such school year is less than the 18 amount of the aggregate general State aid entitlement that 19 the district received for the 1997-98 school year, the school 20 district shall also receive, from a separate appropriation 21 made for purposes of this subsection (J), a supplementary 22 payment that is equal to the amount of the difference in the 23 aggregate State aid figures as described in paragraph (1). 24 (3) (Blank). 25 (K) Grants to Laboratory and Alternative Schools. 26 In calculating the amount to be paid to the governing 27 board of a public university that operates a laboratory 28 school under this Section or to any alternative school that 29 is operated by a regional superintendent of schools, the 30 State Board of Education shall require by rule such reporting 31 requirements as it deems necessary. 32 As used in this Section, "laboratory school" means a 33 public school which is created and operated by a public 34 university and approved by the State Board of Education. The HB2063 Engrossed -20- LRB9103817NTsb 1 governing board of a public university which receives funds 2 from the State Board under this subsection (K) may not 3 increase the number of students enrolled in its laboratory 4 school from a single district, if that district is already 5 sending 50 or more students, except under a mutual agreement 6 between the school board of a student's district of residence 7 and the university which operates the laboratory school. A 8 laboratory school may not have more than 1,000 students, 9 excluding students with disabilities in a special education 10 program. 11 As used in this Section, "alternative school" means a 12 public school which is created and operated by a Regional 13 Superintendent of Schools and approved by the State Board of 14 Education. Such alternative schools may offer courses of 15 instruction for which credit is given in regular school 16 programs, courses to prepare students for the high school 17 equivalency testing program or vocational and occupational 18 training. A regional superintendent of schools may contract 19 with a school district or a public community college district 20 to operate an alternative school. An alternative school 21 serving more than one educational service region may be 22 established by the regional superintendents of schools of 23thosethe affected educational service regions. An 24 alternative school serving more than one educational service 25 region may be operated under such terms as the regional 26 superintendents of schools of those educational service 27 regions may agree. 28 Each laboratory and alternative school shall file, on 29 forms provided by the State Superintendent of Education, an 30 annual State aid claim which states the Average Daily 31 Attendance of the school's students by month. The best 3 32 months' Average Daily Attendance shall be computed for each 33 school. The general State aid entitlement shall be computed 34 by multiplying the applicable Average Daily Attendance by the HB2063 Engrossed -21- LRB9103817NTsb 1 Foundation Level as determined under this Section. 2 (L) Payments, Additional Grants in Aid and Other 3 Requirements. 4 (1) For a school district operating under the financial 5 supervision of an Authority created under Article 34A, the 6 general State aid otherwise payable to that district under 7 this Section, but not the supplemental general State aid, 8 shall be reduced by an amount equal to the budget for the 9 operations of the Authority as certified by the Authority to 10 the State Board of Education, and an amount equal to such 11 reduction shall be paid to the Authority created for such 12 district for its operating expenses in the manner provided in 13 Section 18-11. The remainder of general State school aid for 14 any such district shall be paid in accordance with Article 15 34A when that Article provides for a disposition other than 16 that provided by this Article. 17 (2) Impaction. Impaction payments shall be made as 18 provided for in Section 18-4.2. 19 (3) Summer school. Summer school payments shall be made 20 as provided in Section 18-4.3. 21 (M) Education Funding Advisory Board. 22 The Education Funding Advisory Board, hereinafter in this 23 subsection (M) referred to as the "Board", is hereby created. 24 The Board shall consist of 5 members who are appointed by the 25 Governor, by and with the advice and consent of the Senate. 26 The members appointed shall include representatives of 27 education, business, and the general public. One of the 28 members so appointed shall be designated by the Governor at 29 the time the appointment is made as the chairperson of the 30 Board. The initial members of the Board may be appointed any 31 time after the effective date of this amendatory Act of 1997. 32 The regular term of each member of the Board shall be for 4 33 years from the third Monday of January of the year in which HB2063 Engrossed -22- LRB9103817NTsb 1 the term of the member's appointment is to commence, except 2 that of the 5 initial members appointed to serve on the 3 Board, the member who is appointed as the chairperson shall 4 serve for a term that commences on the date of his or her 5 appointment and expires on the third Monday of January, 2002, 6 and the remaining 4 members, by lots drawn at the first 7 meeting of the Board that is held after all 5 members are 8 appointed, shall determine 2 of their number to serve for 9 terms that commence on the date of their respective 10 appointments and expire on the third Monday of January, 2001, 11 and 2 of their number to serve for terms that commence on the 12 date of their respective appointments and expire on the third 13 Monday of January, 2000. All members appointed to serve on 14 the Board shall serve until their respective successors are 15 appointed and confirmed. Vacancies shall be filled in the 16 same manner as original appointments. If a vacancy in 17 membership occurs at a time when the Senate is not in 18 session, the Governor shall make a temporary appointment 19 until the next meeting of the Senate, when he or she shall 20 appoint, by and with the advice and consent of the Senate, a 21 person to fill that membership for the unexpired term. If 22 the Senate is not in session when the initial appointments 23 are made, those appointments shall be made as in the case of 24 vacancies. 25 The Education Funding Advisory Board shall be deemed 26 established, and the initial members appointed by the 27 Governor to serve as members of the Board shall take office, 28 on the date that the Governor makes his or her appointment of 29 the fifth initial member of the Board, whether those initial 30 members are then serving pursuant to appointment and 31 confirmation or pursuant to temporary appointments that are 32 made by the Governor as in the case of vacancies. 33 The State Board of Education shall provide such staff 34 assistance to the Education Funding Advisory Board as is HB2063 Engrossed -23- LRB9103817NTsb 1 reasonably required for the proper performance by the Board 2 of its responsibilities. 3 For school years after the 2000-2001 school year, the 4 Education Funding Advisory Board, in consultation with the 5 State Board of Education, shall make recommendations as 6 provided in this subsection (M) to the General Assembly for 7 the foundation level under subdivision (B)(3) of this Section 8 and for the supplemental general State aid grant level under 9 subsection (H) of this Section for districts with high 10 concentrations of children from poverty. The recommended 11 foundation level shall be determined based on a methodology 12 which incorporates the basic education expenditures of 13 low-spending schools exhibiting high academic performance. 14 The Education Funding Advisory Board shall make such 15 recommendations to the General Assembly on January 1 of odd 16 numbered years, beginning January 1, 2001. 17 (N) General State Aid Adjustment Grant. 18 (1) Any school district subject to property tax 19 extension limitations as imposed under the provisions of the 20 Property Tax Extension Limitation Law shall be entitled to 21 receive, subject to the qualifications and requirements of 22 this subsection, a general State aid adjustment grant. 23 Eligibility for this grant shall be determined on an annual 24 basis and claims for grant payments shall be paid subject to 25 appropriations made specific to this subsection. For 26 purposes of this subsection the following terms shall have 27 the following meanings: 28 "Budget Year": The school year for which general State 29 aid is calculated and awarded under subsection (E). 30 "Current Year": The school year immediately preceding 31 the Budget Year. 32 "Base Tax Year": The property tax levy year used to 33 calculate the Budget Year allocation of general State aid. 34 "Preceding Tax Year": The property tax levy year HB2063 Engrossed -24- LRB9103817NTsb 1 immediately preceding the Base Tax Year. 2 "Extension Limitation Ratio": A numerical ratio, 3 certified by a school district's County Clerk, in which the 4 numerator is the Base Tax Year's tax extension amount 5 resulting from the Limiting Rate and the denominator is the 6 Preceding Tax Year's tax extension amount resulting from the 7 Limiting Rate. 8 "Limiting Rate": The limiting rate as defined in the 9 Property Tax Extension Limitation Law. 10 "Preliminary Tax Rate": The tax rate for all purposes 11 except bond and interest that would have been used to extend 12 those taxes absent the provisions of the Property Tax 13 Extension Limitation Law. 14 (2) To qualify for a general State aid adjustment grant, 15 a school district must meet all of the following eligibility 16 criteria for each Budget Year for which a grant is claimed: 17 (a) (Blank). 18 (b) The Preliminary Tax Rate of the school district 19 for the Base Tax Year was reduced by the Clerk of the 20 County as a result of the requirements of the Property 21 Tax Extension Limitation Law. 22 (c) The Available Local Resources per pupil of the 23 school district as calculated pursuant to subsection (D) 24 using the Base Tax Year are less than the product of 1.75 25 times the Foundation Level for the Budget Year. 26 (d) The school district has filed a proper and 27 timely claim for a general State aid adjustment grant as 28 required under this subsection. 29 (3) A claim for grant assistance under this subsection 30 shall be filed with the State Board of Education on or before 31 April 1 of the Current Year for a grant for the Budget Year. 32 The claim shall be made on forms prescribed by the State 33 Board of Education and must be accompanied by a written 34 statement from the Clerk of the County, certifying: HB2063 Engrossed -25- LRB9103817NTsb 1 (a) That the school district had its Preliminary 2 Tax Rate for the Base Tax Year reduced as a result of the 3 Property Tax Extension Limitation Law. 4 (b) (Blank). 5 (c) The Extension Limitation Ratio as that term is 6 defined in this subsection. 7 (4) On or before August 1 of the Budget Year the State 8 Board of Education shall calculate, for all school districts 9 meeting the other requirements of this subsection, the amount 10 of the general State aid adjustment grant, if any, that the 11 school districts are eligible to receive in the Budget Year. 12 The amount of the general State aid adjustment grant shall be 13 calculated as follows: 14 (a) Determine the school district's general State 15 aid grant for the Budget Year as provided in accordance 16 with the provisions of subsection (E). 17 (b) Determine the school district's adjusted level 18 of general State aid by utilizing in the calculation of 19 Available Local Resources the equalized assessed 20 valuation that was used to calculate the general State 21 aid for the preceding fiscal year multiplied by the 22 Extension Limitation Ratio. 23 (c) Subtract the sum derived in subparagraph (a) 24 from the sum derived in subparagraph (b). If the result 25 is a positive number, that amount shall be the general 26 State aid adjustment grant that the district is eligible 27 to receive. 28 (5) The State Board of Education shall in the Current 29 Year, based upon claims filed in the Current Year, recommend 30 to the General Assembly an appropriation amount for the 31 general State aid adjustment grants to be made in the Budget 32 Year. 33 (6) Claims for general State aid adjustment grants shall 34 be paid in a lump sum on or before January 1 of the Budget HB2063 Engrossed -26- LRB9103817NTsb 1 Year only from appropriations made by the General Assembly 2 expressly for claims under this subsection. No such claims 3 may be paid from amounts appropriated for any other purpose 4 provided for under this Section. In the event that the 5 appropriation for claims under this subsection is 6 insufficient to meet all Budget Year claims for a general 7 State aid adjustment grant, the appropriation available shall 8 be proportionately prorated by the State Board of Education 9 amongst all districts filing for and entitled to payments. 10 (7) The State Board of Education shall promulgate the 11 required claim forms and rules necessary to implement the 12 provisions of this subsection. 13 (O) References. 14 (1) References in other laws to the various subdivisions 15 of Section 18-8 as that Section existed before its repeal and 16 replacement by this Section 18-8.05 shall be deemed to refer 17 to the corresponding provisions of this Section 18-8.05, to 18 the extent that those references remain applicable. 19 (2) References in other laws to State Chapter 1 funds 20 shall be deemed to refer to the supplemental general State 21 aid provided under subsection (H) of this Section. 22 (Source: P.A. 90-548, eff. 7-1-98; incorporates 90-566; 23 90-653, eff. 7-29-98; 90-654, eff. 7-29-98; 90-655, eff. 24 7-30-98; 90-802, eff. 12-15-98; revised 12-24-98.)