State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Senate Amendment 001 ]

91_HB2733eng

 
HB2733 Engrossed                               LRB9102131NTsb

 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 schools for 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
 
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 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).
 
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 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
 
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 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.
 
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 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  1.00%  1.20%,  and
31    divided by 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,
 
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 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.
 
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 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
 
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 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
 
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 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        teaching of hospitalized 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 one 1 day.
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
 
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 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
 
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 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        ,   or   by  2.30%  for  a  district  maintaining  grades
24        kindergarten through 8, or by 1.00% 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
 
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 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
 
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 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.
 
HB2733 Engrossed            -14-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -15-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -16-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -17-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -18-               LRB9102131NTsb
 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,
 
HB2733 Engrossed            -19-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -20-               LRB9102131NTsb
 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
23    those  the  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
 
HB2733 Engrossed            -21-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -22-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -23-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -24-               LRB9102131NTsb
 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:
 
HB2733 Engrossed            -25-               LRB9102131NTsb
 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
 
HB2733 Engrossed            -26-               LRB9102131NTsb
 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.)

25        Section 99.  Effective date.  This Act takes effect  upon
26    becoming law.

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