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91_SB0334
LRB9102941NTsb
1 AN ACT relating to school district income taxes, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Local Option School District Income Tax Act.
7 Section 5. Definitions. In this Act:
8 "Taxable income" means that portion of the net income of
9 a taxpayer that is allocable and apportionable to the school
10 district of which the taxpayer is a resident under the
11 provisions of this Act and the regulations promulgated
12 thereunder.
13 "Net income" means the net income of a taxpayer as
14 defined and as determined and computed for the taxable year
15 under the provisions of the Illinois Income Tax Act.
16 "Taxable year" means the calendar year, or the fiscal
17 year ending in such calendar year, upon the basis of which
18 taxable income is computed under this Act, and also includes
19 a fractional part of a year for which income is earned.
20 "Resident" means an individual who is in a school
21 district for other than a temporary transitory purpose during
22 the taxable year, or who is domiciled in that school district
23 but is absent therefrom for a temporary or transitory purpose
24 during the taxable year.
25 "Residential property" means (i) property that is
26 "homestead property" within the meaning of Section 15-175 of
27 the Property Tax Code, and (ii) any other real property that
28 is used solely for residential purposes and that is improved
29 with a structure that consists only of not more than 6
30 residential units, at least one of which is occupied as the
31 principal dwelling place of the owner or owners of the
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1 property.
2 Section 10. Referendum; imposition of tax; limitations.
3 The school board of each school district, including special
4 charter districts as defined in Section 1-3 of the School
5 Code and school districts organized under Article 34 of that
6 Code, may by proper resolution or shall upon receipt of a
7 petition of 5% of the voters who voted in the school district
8 in the last gubernatorial election cause to be submitted to
9 the voters of the school district at the general election
10 held in November of an even-numbered year or at the
11 nonpartisan election held in November of an odd-numbered
12 year, in accordance with the general election law, a
13 proposition to authorize an annual local income tax for
14 schools, measured as a non-graduated percentage of the
15 taxable income of individuals resident of the district and
16 imposed only in increments of 0.125%, to be imposed on every
17 such individual on the privilege of earning or receiving
18 income as a resident of the school district; provided that
19 the tax shall not be imposed on income earned or received by
20 an individual during any period in which the individual is a
21 nonresident of the school district even though the income is
22 earned or received in that school district. The resolution
23 shall be adopted or the petition shall be filed under this
24 Section not less than 90 days before the date of the November
25 election at which the proposition is to be submitted to the
26 voters of the school district.
27 The resolution or petition to submit the proposition to
28 the voters of the district shall: (i) specify an estimated
29 initial rate at which the tax is proposed to be imposed; (ii)
30 state that the actual initial rate at which the tax is
31 imposed shall be computed by the Department of Revenue and
32 shall be adjusted every 12 months thereafter; and (iii) state
33 that the actual initial rate and the rate as adjusted and
34 imposed for each succeeding 12 month period shall be computed
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1 by the Department of Revenue in such manner as to produce,
2 from the tax imposed under this Act, aggregate income tax
3 revenues for distribution to the school district in each
4 calendar year that are equal, as near as may be, to the 50%
5 abatement that the county clerk is required to make in each
6 such calendar year, as provided in Section 40, in extending
7 against residential property located in the district taxes
8 levied by the district during the preceding calendar year for
9 the educational, operations and maintenance, and
10 transportation purposes of the district. The proposition
11 shall state the approximate initial rate at which the tax is
12 proposed to be imposed, as computed by the Department of
13 Revenue under subsection (b) of Section 15, and shall be in
14 substantially the following form:
15 Shall School District No. .... be authorized to
16 impose a local income tax for schools at an initial
17 annual rate of approximately ...% on the taxable income
18 earned or received by individuals who are residents of
19 the school district, if the actual initial rate at which
20 the tax is imposed is adjusted every 12 months
21 thereafter, and if the actual initial rate and the rate
22 as adjusted and imposed for each succeeding 12 month
23 period are computed by the Department of Revenue in such
24 manner as to produce aggregate income tax revenues for
25 distribution to the school district in each calendar year
26 that are equal, as near as may be, to a 50% reduction
27 that would then have to be made in each such calendar
28 year in the extension against residential property of
29 real property taxes levied by the district during the
30 preceding calendar year for the educational, operations
31 and maintenance, and transportation purposes of the
32 district?
33 The votes shall be recorded as "Yes" or "No". If a majority
34 of the votes cast at the election on the proposition to
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1 impose the local income tax for schools is in favor thereof,
2 the school board shall, commencing on March 1 of the calendar
3 year immediately succeeding the calendar year in which the
4 election is held and thereafter, unless such authority is
5 repealed as provided in Section 25, impose the annual tax at
6 an annual rate as initially computed and as computed and
7 adjusted every 12 months thereafter by the Department of
8 Revenue as provided in subsection (c) of Section 15.
9 Section 15. Determination of annual rate.
10 (a) Upon a school board's adoption of a resolution or
11 receipt of a petition to impose within the school district
12 the local income tax for schools as provided in this Act, the
13 school board shall request the county clerk of each county in
14 which all or any part of the territory of the school district
15 is located to certify, and each such county clerk shall
16 certify, to the school board and to the Department of
17 Revenue, not later than August 1 of the calendar year in
18 which the proposition to impose a local income tax for
19 schools is to be submitted to the voters of the district at a
20 regular election held in November of that year, an amount
21 equal to the aggregate amount of real property taxes that
22 could be extended against the equalized assessed valuation of
23 the taxable residential property in the district for the
24 educational, operations and maintenance, and transportation
25 purposes of the district (i) if those real property taxes are
26 levied at the maximum rates at which the district is
27 authorized to levy those taxes for the fiscal year of the
28 district that begins in the calendar year in which the
29 resolution is adopted or the petition is received, and (ii)
30 if those real property taxes are extended at those rates
31 against the equalized assessed valuation of the taxable
32 residential property in the district for the calendar year in
33 which the petition is filed or the resolution is adopted.
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1 (b) Not more than 15 days after receipt by the Department
2 of Revenue of the certification or certifications required to
3 be made by the county clerk or county clerks as provided in
4 subsection (a), the Department of Revenue shall compute and
5 certify to the school board of the school district the
6 approximate rate, calculated to the nearest 0.125%, that, had
7 this Act been in effect during the calendar year immediately
8 preceding the calendar year in which the resolution is
9 adopted or the petition is received, and had the local income
10 tax for schools been imposed and collected under this Act
11 within the district during each of the 12 months comprising
12 that immediately preceding calendar year at that approximate
13 rate, would have produced in collected income taxes that were
14 distributable to that school district for that calendar year
15 an amount equal or substantially equal to but not greater
16 than 50% of the total amount or amounts certified by the
17 county clerk or county clerks, as the case may be, under
18 subsection (a). The approximate rate as computed by the
19 Department of Revenue under this subsection shall be the
20 approximate initial annual rate that must be stated in the
21 proposition that is submitted to the voters of the district
22 under Section 10.
23 (c) Not later than February 1 of each calendar year
24 during any part of which the local income tax for schools is
25 or will be imposed in a school district, each county clerk in
26 which all or any part of the school district is located shall
27 compute and certify to the Department of Revenue and the
28 school board, as provided in Section 40, the aggregate amount
29 of the abatement required to be made under that Section in
30 each such calendar year in the extension against the
31 residential property located in the district of taxes levied
32 by the district in the preceding calendar year for
33 educational, operations and maintenance, and transportation
34 purposes. Within 10 days after the receipt by the Department
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1 of Revenue of the annual certification required to be made by
2 each county clerk in which all or any part of the school
3 district is located, the Department of Revenue shall compute
4 the actual initial rate (with respect to the 12 month period
5 that commences on March 1 of the first calendar year during
6 which the local income tax for schools is to imposed) or the
7 adjusted rate (with respect to each successive 12 month
8 period), calculated to the nearest 0.125%, that, had the
9 local income tax for schools been imposed and collected
10 within the district during each of the 12 months comprising
11 the calendar year immediately preceding the calendar year in
12 which the Department is required to compute the rate under
13 this subsection, would have produced, in collected local
14 school income taxes that were distributable to the school
15 district for that calendar year, an amount equal or
16 substantially equal to but not greater than the aggregate
17 amount of the abatement computed and certified by the county
18 clerk or county clerks to the Department in the calendar year
19 in which the Department computes the rate under this
20 subsection. The actual initial rate or the adjusted rate
21 that is computed and certified by the Department of Revenue
22 in each such calendar year as provided in this subsection
23 shall be the annual rate at which the local income tax for
24 schools is imposed in the district for the 12 month period
25 that commences on March 1 of the calendar year in which the
26 Department computes and certifies the rate.
27 Section 20. Apportionment of income. The method of
28 allocating and apportioning income earned in the school
29 district by individuals who earn only a portion of their
30 income in that district shall be established by rules and
31 regulations that the Department of Revenue shall adopt for
32 that purpose. The method so established shall be determined,
33 as near as may be, in accordance with the provisions of
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1 Article III of the Illinois Income Tax Act, governing the
2 manner in which income and items of deduction are allocated
3 and apportioned to this State with respect to part-year
4 residents and other persons.
5 Section 25. Repeal of local income tax for schools;
6 referendum. The school board of a school district may by
7 resolution, or shall upon the petition of 5% of the voters
8 who voted in the school district in the last gubernatorial
9 election, cause to be submitted to the voters of that
10 district in accordance with the general election law a
11 proposition to repeal the local income tax for schools. The
12 proposition to repeal the local income tax for schools may be
13 submitted to the voters of the district only at the general
14 election held in November of an even-numbered year or at the
15 nonpartisan election held in November of an odd-numbered
16 year. The resolution or petition to submit the proposition
17 to the voters of the district shall: (i) state that the
18 proposed repeal of the local income tax for schools is to
19 take effect on March 1 of the calendar year following the
20 calendar year in which the November election is held; (ii)
21 state that amounts to be collected from the imposition of the
22 local income tax for schools through February of the calendar
23 year in which the proposed repeal of the tax is to take
24 effect shall be distributed to the school district as
25 provided in this Act on July 1 of that calendar year; and
26 (iii) state that when the proposed repeal of the local income
27 tax for schools takes effect, the extension of real property
28 taxes against residential property thereafter levied by the
29 school district for the educational, operations and
30 maintenance, and transportation purposes of the district
31 shall no longer be abated under the provisions of this Act.
32 The proposition shall be in substantially the following form:
33 Shall the local income tax for schools that is
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1 imposed by School District No. .... be repealed effective
2 March 1, .... if, when that repeal takes effect, the
3 extension of the real property taxes against residential
4 property thereafter levied by the school district for its
5 educational, operations and maintenance, and
6 transportation purposes will no longer be reduced each
7 year by 50%?
8 The votes shall be recorded as "Yes" or "No". If a majority
9 of the votes cast on the proposition to repeal the local
10 income tax for schools is in favor thereof, that tax shall
11 not be imposed on or after March 1 of the calendar year
12 following the year in which the election is held unless again
13 authorized as provided in Section 10.
14 Section 30. Collection.
15 (a) Any tax authorized under this Act shall be imposed
16 only on income earned on or after March 1 of the calendar
17 year following the referendum held in November of the
18 immediately preceding calendar year at which imposition of
19 the tax is authorized. The tax so imposed shall be paid by
20 the taxpayer on or before the fifteenth day of the fourth
21 month following the close of each taxable year during which
22 the tax is imposed and shall be submitted to the Department
23 of Revenue along with the taxpayer's return under the
24 Illinois Income Tax Act. The tax shall be collected by the
25 Department of Revenue. The certification of the results of
26 the referendum authorizing the tax by the proper election
27 officials, accompanied by the resolution of the school board
28 imposing the tax as authorized and the computation by the
29 Department of Revenue in accordance with subsection (c) of
30 Section 15 of the actual initial rate of the tax to be
31 imposed under this Act, shall constitute the authority of the
32 Department of Revenue to collect the tax. Whenever a
33 proposition to authorize imposition of the local income tax
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1 for schools is approved by the voters of any school district
2 as provided in this Act, the county clerk of each county in
3 which that school district is located shall certify the
4 territorial boundaries of the district to the Department of
5 Revenue, and the Department shall (i) promptly notify all
6 individuals resident of the district who have previously
7 filed a return with respect to the taxes imposed by the
8 Illinois Income Tax Act that the local income tax for schools
9 will be imposed within the district beginning on March 1 of
10 the calendar year immediately following the calendar year in
11 which the election authorizing imposition of the tax is held
12 and the manner in which the tax is to be collected by and
13 paid to the Department of Revenue, and (ii) publish notice in
14 a newspaper published in the school district or, if there is
15 no such newspaper, then in a newspaper published in the
16 county in which the school district is located and having
17 circulation in the district, that the local income tax for
18 schools will be imposed within the district and the manner in
19 which the tax is to be collected by and paid to the
20 Department of Revenue. In addition, not later than the 15th
21 day of February of each calendar year in which the Department
22 computes and certifies the rate at which the local income tax
23 for schools is to be imposed for the 12 month period that
24 commences on March 1 of that calendar year, the Department
25 shall publish notice in a newspaper published in the district
26 (or if there is no such newspaper, then in a newspaper
27 published in the county in which the district is located and
28 having circulation in the district) of the actual initial
29 rate or adjusted rate, as the case may be, at which the tax
30 will be imposed within the district during the 12 month
31 period commencing on that March 1. Any tax imposed under this
32 Act shall be collected by and paid to the Department of
33 Revenue at the same time and in the same manner, with the
34 same withholding and estimated payment requirements and
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1 subject to the same assessment and refund procedures,
2 penalties, and interest as the tax imposed by the Illinois
3 Income Tax Act. Except as provided in subsection (b) of this
4 Section, the Department of Revenue shall forthwith pay over
5 to the State Treasurer, ex officio, as trustee, all moneys
6 received by it on behalf of the school district under this
7 Section, to be deposited into a special account that the
8 State Treasurer and State Comptroller shall establish and
9 maintain for the benefit of that school district in the Local
10 Option School District Income Tax Fund, a special fund that
11 is hereby created in the State treasury, to be held and
12 disbursed by the State Treasurer and State Comptroller as
13 provided in this Section and Section 35. All interest earned
14 from the investment of any moneys from time to time held in
15 the Local Option School District Income Tax Fund and any
16 special accounts established in that Fund shall be retained
17 by the State Treasurer to be applied toward costs incurred by
18 the Department of Revenue in administering and enforcing this
19 Act.
20 (b) The Local Option School District Income Tax Refund
21 Fund is hereby created in the State Treasury. The Department
22 of Revenue shall deposit a percentage of the amounts
23 collected from the tax imposed under this Act by any school
24 district into a special account that the State Treasurer and
25 State Comptroller shall establish and maintain within the
26 Local Option School District Income Tax Refund Fund for the
27 purpose of paying refunds resulting from overpayment of tax
28 liability under this Act with respect to that school
29 district. The Department of Revenue shall determine the
30 percentage of the amounts collected from the tax imposed
31 under this Act by any school district that is to be deposited
32 into the special account maintained in the Local Option
33 School District Income Tax Refund Fund to pay refunds
34 resulting from overpayment of tax liability under this Act
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1 with respect to that school district and shall certify that
2 percentage to the Comptroller, all in accordance with rules
3 adopted by the Department of Revenue for purposes of this
4 Section. Money in the special account maintained in the
5 Local Option School District Income Tax Refund Fund with
6 respect to any school district shall be expended exclusively
7 for the purpose of paying refunds resulting from overpayment
8 of tax liability under this Act with respect to that school
9 district. The Director of Revenue shall order payment of
10 refunds resulting from overpayment of tax liability under
11 this Act from the special account maintained with respect to
12 a school district in the Local Option School District Income
13 Tax Refund Fund only to the extent that amounts collected
14 pursuant to this Act for that school district have been
15 deposited into and retained in that special account. This
16 Section shall constitute an irrevocable and continuing
17 appropriation from the Local Option School District Income
18 Tax Refund Fund and the special accounts established and
19 maintained therein for the purpose of paying refunds upon the
20 order of the Director of Revenue in accordance with the
21 provisions of this Section.
22 (c) The Department of Revenue shall promulgate such
23 rules and regulations as may be necessary to implement the
24 provisions of this Act.
25 Section 35. Certification, disbursement, and use of
26 funds.
27 (a) On July 1 of each calendar year, or the first
28 following business day if July 1 falls on a Saturday, Sunday,
29 or holiday, the Department of Revenue shall certify to the
30 State Treasurer and State Comptroller the disbursement of
31 stated sums of money to each school district in which a tax
32 authorized by this Act has been imposed and collected during
33 the preceding calendar year. On each certification date, the
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1 amount to be certified for disbursement from the special
2 account maintained for a school district in the Local Option
3 School District Income Tax Fund shall be the amount deposited
4 into that special account from the tax collected under this
5 Act for that school district during the 12 month period that
6 commences on March 1 of the immediately preceding calendar
7 year, reduced by an amount equal to 2% of the amount so
8 deposited into that special account to be retained by the
9 State Treasurer and applied toward the costs incurred by the
10 Department of Revenue in administering and enforcing this
11 Act.
12 (b) At the time of each disbursement to a school
13 district, the Department of Revenue shall prepare and certify
14 to the Comptroller the amount retained by the State Treasurer
15 as provided in this Section and the interest earned from the
16 investment of moneys from time to time held in the Local
17 Option School District Income Tax Fund and any special
18 accounts established therein as provided in subsection (a) of
19 Section 30 to be applied toward the costs incurred by the
20 Department in administering and enforcing this Act, the
21 amount so retained and the interest so earned to be paid into
22 the General Revenue Fund of the State Treasury.
23 (c) Within 5 days after receipt by the Comptroller from
24 the Department of Revenue of the certification of
25 disbursements to the school districts and General Revenue
26 Fund as provided in this Section, the Comptroller shall cause
27 the warrants to be drawn for the respective amounts in
28 accordance with the directions contained in the
29 certification.
30 (d) If for any reason the General Assembly fails to make
31 an appropriation sufficient to pay each school district the
32 full amount required to be disbursed and paid to it by this
33 Section and any other provision of this Act, then this
34 Section shall constitute an irrevocable and continuing
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1 appropriation of all amounts necessary for that purpose and
2 the irrevocable and continuing authority for and direction to
3 the Comptroller and Treasurer of the State to make the
4 necessary transfers out of and disbursements from the
5 revenues and funds of the State for that purpose.
6 (e) The school board of each school district that
7 receives a disbursement under this Act shall apply and credit
8 the moneys so disbursed to the educational, operations and
9 maintenance, and transportation funds of the district in
10 proportion to the ratio that the amount that the required
11 abatement under Section 40 in the extension against the
12 residential property located in the district, during the
13 disbursement year, of real property taxes levied by the
14 district in each of those 3 funds bears to the aggregate
15 amount of the required abatement under that Section in the
16 extension against such residential property, during the
17 disbursement year, of real property taxes levied by the
18 district in all 3 of those funds.
19 Section 40. Abatement of extension of real property
20 taxes on residential property.
21 (a) During each calendar year in which a disbursement is
22 required to be made under Section 35 to a school district of
23 moneys credited to a special account maintained for that
24 district in the Local Option School District Income Tax Fund,
25 the county clerk shall abate the extension against
26 residential property located in the district of taxes levied
27 by the district for educational, operations and maintenance,
28 and transportation purposes. If any such school district is
29 located in more than one county, the amount of the extension
30 of real property taxes levied for educational, operations and
31 maintenance, and transportation purposes against residential
32 property situated within that district to be so abated shall
33 be apportioned by the county clerks of those counties based
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1 upon the ratio of the aggregate assessed value of the taxable
2 residential property of the district in each such county.
3 Before any abatement of the extension of real property taxes
4 levied for educational, operations and maintenance, and
5 transportation purposes against residential property situated
6 within a school district is made as provided in this Section,
7 the county clerk shall determine whether the amount of each
8 of the educational, operations and maintenance, and
9 transportation tax levies that has been certified for
10 extension is based on a rate at which the district making the
11 certification is authorized by statute or referendum to levy
12 that tax, shall disregard any excess, and shall extend the
13 levy of that tax in accordance with the provisions of the
14 Property Tax Code, subject to abatement of the extension as
15 provided in this Section.
16 (b) Not later than February 1 of each calendar year in
17 which the extension against residential property located in a
18 school district of taxes levied by the district for
19 educational, operations and maintenance, and transportation
20 purposes is required to be abated under subsection (a), the
21 county clerk shall determine the aggregate amount of the
22 required abatement and shall certify that amount to the
23 Department of Revenue and the school board. The aggregate
24 amount of the required abatement in each such calendar year
25 shall be equal to 50% of that portion of the total levy for
26 educational, operations and maintenance, and transportation
27 purposes certified by the school district to the county clerk
28 in the preceding calendar year for extension against all
29 taxable property in the district that the county clerk
30 determines would, but for the abatement required under this
31 Section, be extended against the equalized assessed value of
32 the taxable residential property located in the district. In
33 extending taxes levied for the educational, operations and
34 maintenance, and transportation purposes of the school
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1 district in the year in which the abatement is required to be
2 made, the county clerk shall apportion the aggregate amount
3 of the required abatement among the extensions made of the
4 educational, operations and maintenance, and transportation
5 taxes levied by the district based upon the ratio that the
6 amount certified for levy for each of those 3 purposes bears
7 to the aggregate amount certified for levy for all 3 of those
8 purposes. In certifying to the school board the aggregate
9 amount of the required abatement, the county clerk shall
10 further certify the amount by which each of the respective
11 levies made for the educational, operations and maintenance,
12 and transportation purposes of the district will be reduced.
13 Section 45. Property tax rates. The provisions of this
14 Act for abatement in the extension against residential
15 property of real property taxes levied by school districts
16 for educational, operations and maintenance, and
17 transportation purposes do not constitute and shall not be
18 construed to be a limitation on or a reduction in the rate at
19 which any school district now is or hereafter may be
20 authorized by statute or referendum to levy taxes for any
21 lawful school purpose.
22 Section 50. Penalties. Any person who is subject to the
23 provisions of this Act and who willfully fails to file a
24 return, or who willfully violates any rule or regulation of
25 the Department of Revenue for the administration or
26 enforcement of this Act, or who willfully attempts in any
27 other manner to evade or defeat any tax imposed by this Act
28 or the payment thereof, shall in addition to other penalties
29 be guilty of a Class B misdemeanor. A prosecution for any
30 violation of this Act may be commenced within 3 years of the
31 commission of that act.
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1 Section 100. The State Finance Act is amended by adding
2 Sections 5.490 and 5.491 as follows:
3 (30 ILCS 105/5.490 new)
4 Sec. 5.490. The Local Option School District Income Tax
5 Fund.
6 (30 ILCS 105/5.491 new)
7 Sec. 5.491. The Local Option School District Income Tax
8 Refund Fund.
9 Section 105. The Illinois Income Tax Act is amended by
10 changing Section 512 as follows:
11 (35 ILCS 5/512) (from Ch. 120, par. 5-512)
12 Sec. 512. School district data; local option school
13 income tax; net income attributable to period prior to March
14 1 and to period on and after March 1 of a taxable year.
15 (a) All individual income tax return forms for tax years
16 ending December 31, 1986 through December 30, 1995 shall
17 contain an appropriate space in which the taxpayer must
18 indicate either (i) the name and number of the high school
19 district in which they reside on the date such return is
20 filed, or (ii) the name and number of the unit school
21 district in which they reside on the date such return is
22 filed. Failure of the taxpayer to insert such information
23 shall not invalidate the return.
24 (b) For all tax years ending December 31, 1995 and
25 thereafter, the Department shall provide the State Board of
26 Education with information on individual income tax receipts
27 by school district from the data collected by the Geographic
28 Information System maintained by the Department.
29 (c) All individual income tax forms for tax years ending
30 on or after December 31, 2000 shall contain appropriate space
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1 for a taxpayer who resides within a school district that
2 imposes a local income tax for schools under the Local Option
3 School District Income Tax Act to calculate the tax due from
4 the taxpayer under that Act. The Department shall provide,
5 with the return, instructions for calculating and paying the
6 local income tax for schools as provided in the Local Option
7 School District Income Tax Act.
8 (d) With respect to each taxable year of a resident of a
9 school district in which the local income tax for schools is
10 imposed under the Local Option School District Income Tax
11 Act, for purposes of computing the tax due from a resident
12 under that Act, net income for the period before March 1 of
13 the taxable year shall be that amount which bears the same
14 ratio to the resident's net income for the entire taxable
15 year as the number of days in that year before March 1 bears
16 to the total number of days in that year, and net income for
17 the period of the taxable year that begins on March 1 and
18 ends on the last day of the taxable year shall be that amount
19 which bears the same ratio to the resident's net income for
20 the entire taxable year as the number of days in that year
21 beginning March 1 bears to the total number of days in that
22 year. As used in this subsection, the terms "taxable year",
23 "resident", and "net income" have the meaning ascribed to
24 them by Section 5 of the Local Option School District Income
25 Tax Act.
26 (Source: P.A. 89-21, eff. 7-1-95.)
27 Section 110. The Property Tax Code is amended by changing
28 Sections 18-45 and 18-185 and adding Section 18-182 as
29 follows:
30 (35 ILCS 200/18-45)
31 Sec. 18-45. Computation of rates. Except as provided
32 below, each county clerk shall estimate and determine the
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1 rate per cent upon the equalized assessed valuation for the
2 levy year of the property in the county's taxing districts
3 and special service areas, as established under Article VII
4 of the Illinois Constitution, so that the rate will produce,
5 within the proper divisions of that county, not less than the
6 net amount that will be required by the county board or
7 certified to the county clerk according to law. Prior to
8 extension, the county clerk shall determine the maximum
9 amount of tax authorized to be levied by any statute. If the
10 amount of any tax certified to the county clerk for extension
11 exceeds the maximum, the clerk shall extend only the maximum
12 allowable levy.
13 The county clerk shall exclude from the total equalized
14 assessed valuation, whenever estimating and determining it
15 under this Section and Sections 18-50 through 18-105, the
16 equalized assessed valuation in the percentage which has been
17 agreed to by each taxing district, of any property or portion
18 thereof within an Enterprise Zone upon which an abatement of
19 taxes was made under Section 18-170. However, if a
20 municipality has adopted tax increment financing under
21 Division 74.4 of Article 11 of the Illinois Municipal Code,
22 the county clerk shall estimate and determine rates in
23 accordance with Sections 11-74.4-7 through 11-74.4-9 of that
24 Act. Beginning on January 1, 1998 and thereafter, the
25 equalized assessed value of all property for the computation
26 of the amount to be extended within a county with 3,000,000
27 or more inhabitants shall be the sum of (i) the equalized
28 assessed value of such property for the year immediately
29 preceding the levy year as established by the assessment and
30 equalization process for the year immediately prior to the
31 levy year, (ii) the equalized assessed value of any property
32 that qualifies as new property, as defined in Section 18-185,
33 or annexed property, as defined in Section 18-225, for the
34 current levy year, and (iii) any recovered tax increment
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1 value, as defined in Section 18-185, for the current levy
2 year, less the equalized assessed value of any property that
3 qualifies as disconnected property, as defined in Section
4 18-225, for the current levy year.
5 The provisions of this Section and the authority and
6 responsibility of the county clerks hereunder are subject to
7 the provisions of Section 18-182 of the Property Tax Code and
8 Section 40 of the Local Option School District Income Tax Act
9 relative to abatement in the extension of taxes levied by
10 school districts in which the tax authorized by the Local
11 Option School District Income Tax Act is imposed, levied, and
12 collected.
13 (Source: P.A. 90-320, eff. 1-1-98.)
14 (35 ILCS 200/18-182 new)
15 Sec. 18-182. Abatement; local income tax for schools.
16 With respect to a school district in which the local income
17 tax for schools is imposed under the Local Option School
18 District Income Tax Act, the county clerk of a county in
19 which all or any part of the district is located shall abate
20 the extension against residential property located in the
21 district and county of taxes levied by the district for
22 educational, operations and maintenance, and transportation
23 purposes as provided in and subject to the requirements of
24 Section 40 of that Act. As used in this Section, the term
25 "residential property" has the meaning ascribed to it in
26 Section 5 of the Local Option School District Income Tax Act.
27
28 (35 ILCS 200/18-185)
29 Sec. 18-185. Short title; definitions. This Division 5
30 Section and Sections 18-190 through 18-245 may be cited as
31 the Property Tax Extension Limitation Law. As used in this
32 Division 5 Sections 18-190 through 18-245:
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1 "Consumer Price Index" means the Consumer Price Index for
2 All Urban Consumers for all items published by the United
3 States Department of Labor.
4 "Extension limitation" means (a) the lesser of 5% or the
5 percentage increase in the Consumer Price Index during the
6 12-month calendar year preceding the levy year or (b) the
7 rate of increase approved by voters under Section 18-205.
8 "Affected county" means a county of 3,000,000 or more
9 inhabitants or a county contiguous to a county of 3,000,000
10 or more inhabitants.
11 "Taxing district" has the same meaning provided in
12 Section 1-150, except as otherwise provided in this Section.
13 For the 1991 through 1994 levy years only, "taxing district"
14 includes only each non-home rule taxing district having the
15 majority of its 1990 equalized assessed value within any
16 county or counties contiguous to a county with 3,000,000 or
17 more inhabitants. Beginning with the 1995 levy year, "taxing
18 district" includes only each non-home rule taxing district
19 subject to this Law before the 1995 levy year and each
20 non-home rule taxing district not subject to this Law before
21 the 1995 levy year having the majority of its 1994 equalized
22 assessed value in an affected county or counties. Beginning
23 with the levy year in which this Law becomes applicable to a
24 taxing district as provided in Section 18-213, "taxing
25 district" also includes those taxing districts made subject
26 to this Law as provided in Section 18-213.
27 "Aggregate extension" for taxing districts to which this
28 Law applied before the 1995 levy year means the annual
29 corporate extension for the taxing district and those special
30 purpose extensions that are made annually for the taxing
31 district, excluding special purpose extensions: (a) made for
32 the taxing district to pay interest or principal on general
33 obligation bonds that were approved by referendum; (b) made
34 for any taxing district to pay interest or principal on
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1 general obligation bonds issued before October 1, 1991; (c)
2 made for any taxing district to pay interest or principal on
3 bonds issued to refund or continue to refund those bonds
4 issued before October 1, 1991; (d) made for any taxing
5 district to pay interest or principal on bonds issued to
6 refund or continue to refund bonds issued after October 1,
7 1991 that were approved by referendum; (e) made for any
8 taxing district to pay interest or principal on revenue bonds
9 issued before October 1, 1991 for payment of which a property
10 tax levy or the full faith and credit of the unit of local
11 government is pledged; however, a tax for the payment of
12 interest or principal on those bonds shall be made only after
13 the governing body of the unit of local government finds that
14 all other sources for payment are insufficient to make those
15 payments; (f) made for payments under a building commission
16 lease when the lease payments are for the retirement of bonds
17 issued by the commission before October 1, 1991, to pay for
18 the building project; (g) made for payments due under
19 installment contracts entered into before October 1, 1991;
20 (h) made for payments of principal and interest on bonds
21 issued under the Metropolitan Water Reclamation District Act
22 to finance construction projects initiated before October 1,
23 1991; (i) made for payments of principal and interest on
24 limited bonds, as defined in Section 3 of the Local
25 Government Debt Reform Act, in an amount not to exceed the
26 debt service extension base less the amount in items (b),
27 (c), (e), and (h) of this definition for non-referendum
28 obligations, except obligations initially issued pursuant to
29 referendum; (j) made for payments of principal and interest
30 on bonds issued under Section 15 of the Local Government Debt
31 Reform Act; and (k) made by a school district that
32 participates in the Special Education District of Lake
33 County, created by special education joint agreement under
34 Section 10-22.31 of the School Code, for payment of the
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1 school district's share of the amounts required to be
2 contributed by the Special Education District of Lake County
3 to the Illinois Municipal Retirement Fund under Article 7 of
4 the Illinois Pension Code; the amount of any extension under
5 this item (k) shall be certified by the school district to
6 the county clerk; and (l) made by a school district to
7 replace revenues lost as a result of the repeal of the local
8 income tax for schools as formerly imposed by the district
9 under the Local Option School District Income Tax Act.
10 "Aggregate extension" for the taxing districts to which
11 this Law did not apply before the 1995 levy year (except
12 taxing districts subject to this Law in accordance with
13 Section 18-213) means the annual corporate extension for the
14 taxing district and those special purpose extensions that are
15 made annually for the taxing district, excluding special
16 purpose extensions: (a) made for the taxing district to pay
17 interest or principal on general obligation bonds that were
18 approved by referendum; (b) made for any taxing district to
19 pay interest or principal on general obligation bonds issued
20 before March 1, 1995; (c) made for any taxing district to pay
21 interest or principal on bonds issued to refund or continue
22 to refund those bonds issued before March 1, 1995; (d) made
23 for any taxing district to pay interest or principal on bonds
24 issued to refund or continue to refund bonds issued after
25 March 1, 1995 that were approved by referendum; (e) made for
26 any taxing district to pay interest or principal on revenue
27 bonds issued before March 1, 1995 for payment of which a
28 property tax levy or the full faith and credit of the unit of
29 local government is pledged; however, a tax for the payment
30 of interest or principal on those bonds shall be made only
31 after the governing body of the unit of local government
32 finds that all other sources for payment are insufficient to
33 make those payments; (f) made for payments under a building
34 commission lease when the lease payments are for the
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1 retirement of bonds issued by the commission before March 1,
2 1995 to pay for the building project; (g) made for payments
3 due under installment contracts entered into before March 1,
4 1995; (h) made for payments of principal and interest on
5 bonds issued under the Metropolitan Water Reclamation
6 District Act to finance construction projects initiated
7 before October 1, 1991; (i) made for payments of principal
8 and interest on limited bonds, as defined in Section 3 of the
9 Local Government Debt Reform Act, in an amount not to exceed
10 the debt service extension base less the amount in items (b),
11 (c), and (e) of this definition for non-referendum
12 obligations, except obligations initially issued pursuant to
13 referendum and bonds described in subsection (h) of this
14 definition; (j) made for payments of principal and interest
15 on bonds issued under Section 15 of the Local Government Debt
16 Reform Act; (k) made for payments of principal and interest
17 on bonds authorized by Public Act 88-503 and issued under
18 Section 20a of the Chicago Park District Act for aquarium or
19 museum projects; and (l) made for payments of principal and
20 interest on bonds authorized by Public Act 87-1191 and issued
21 under Section 42 of the Cook County Forest Preserve District
22 Act for zoological park projects; and (m) made by a school
23 district to replace revenues lost as a result of the repeal
24 of the local income tax for schools as formerly imposed by
25 the district under the Local Option School District Income
26 Tax Act.
27 "Aggregate extension" for all taxing districts to which
28 this Law applies in accordance with Section 18-213, except
29 for those taxing districts subject to paragraph (2) of
30 subsection (e) of Section 18-213, means the annual corporate
31 extension for the taxing district and those special purpose
32 extensions that are made annually for the taxing district,
33 excluding special purpose extensions: (a) made for the taxing
34 district to pay interest or principal on general obligation
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1 bonds that were approved by referendum; (b) made for any
2 taxing district to pay interest or principal on general
3 obligation bonds issued before the date on which the
4 referendum making this Law applicable to the taxing district
5 is held; (c) made for any taxing district to pay interest or
6 principal on bonds issued to refund or continue to refund
7 those bonds issued before the date on which the referendum
8 making this Law applicable to the taxing district is held;
9 (d) made for any taxing district to pay interest or principal
10 on bonds issued to refund or continue to refund bonds issued
11 after the date on which the referendum making this Law
12 applicable to the taxing district is held if the bonds were
13 approved by referendum after the date on which the referendum
14 making this Law applicable to the taxing district is held;
15 (e) made for any taxing district to pay interest or principal
16 on revenue bonds issued before the date on which the
17 referendum making this Law applicable to the taxing district
18 is held for payment of which a property tax levy or the full
19 faith and credit of the unit of local government is pledged;
20 however, a tax for the payment of interest or principal on
21 those bonds shall be made only after the governing body of
22 the unit of local government finds that all other sources for
23 payment are insufficient to make those payments; (f) made for
24 payments under a building commission lease when the lease
25 payments are for the retirement of bonds issued by the
26 commission before the date on which the referendum making
27 this Law applicable to the taxing district is held to pay for
28 the building project; (g) made for payments due under
29 installment contracts entered into before the date on which
30 the referendum making this Law applicable to the taxing
31 district is held; (h) made for payments of principal and
32 interest on limited bonds, as defined in Section 3 of the
33 Local Government Debt Reform Act, in an amount not to exceed
34 the debt service extension base less the amount in items (b),
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1 (c), and (e) of this definition for non-referendum
2 obligations, except obligations initially issued pursuant to
3 referendum; (i) made for payments of principal and interest
4 on bonds issued under Section 15 of the Local Government Debt
5 Reform Act; and (j) made for a qualified airport authority to
6 pay interest or principal on general obligation bonds issued
7 for the purpose of paying obligations due under, or financing
8 airport facilities required to be acquired, constructed,
9 installed or equipped pursuant to, contracts entered into
10 before March 1, 1996 (but not including any amendments to
11 such a contract taking effect on or after that date); and (k)
12 made by a school district to replace revenues lost as a
13 result of the repeal of the local income tax for schools as
14 formerly imposed by the district under the Local Option
15 School District Income Tax Act.
16 "Aggregate extension" for all taxing districts to which
17 this Law applies in accordance with paragraph (2) of
18 subsection (e) of Section 18-213 means the annual corporate
19 extension for the taxing district and those special purpose
20 extensions that are made annually for the taxing district,
21 excluding special purpose extensions: (a) made for the taxing
22 district to pay interest or principal on general obligation
23 bonds that were approved by referendum; (b) made for any
24 taxing district to pay interest or principal on general
25 obligation bonds issued before the effective date of this
26 amendatory Act of 1997; (c) made for any taxing district to
27 pay interest or principal on bonds issued to refund or
28 continue to refund those bonds issued before the effective
29 date of this amendatory Act of 1997; (d) made for any taxing
30 district to pay interest or principal on bonds issued to
31 refund or continue to refund bonds issued after the effective
32 date of this amendatory Act of 1997 if the bonds were
33 approved by referendum after the effective date of this
34 amendatory Act of 1997; (e) made for any taxing district to
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1 pay interest or principal on revenue bonds issued before the
2 effective date of this amendatory Act of 1997 for payment of
3 which a property tax levy or the full faith and credit of the
4 unit of local government is pledged; however, a tax for the
5 payment of interest or principal on those bonds shall be made
6 only after the governing body of the unit of local government
7 finds that all other sources for payment are insufficient to
8 make those payments; (f) made for payments under a building
9 commission lease when the lease payments are for the
10 retirement of bonds issued by the commission before the
11 effective date of this amendatory Act of 1997 to pay for the
12 building project; (g) made for payments due under installment
13 contracts entered into before the effective date of this
14 amendatory Act of 1997; (h) made for payments of principal
15 and interest on limited bonds, as defined in Section 3 of the
16 Local Government Debt Reform Act, in an amount not to exceed
17 the debt service extension base less the amount in items (b),
18 (c), and (e) of this definition for non-referendum
19 obligations, except obligations initially issued pursuant to
20 referendum; (i) made for payments of principal and interest
21 on bonds issued under Section 15 of the Local Government Debt
22 Reform Act; and (j) made for a qualified airport authority to
23 pay interest or principal on general obligation bonds issued
24 for the purpose of paying obligations due under, or financing
25 airport facilities required to be acquired, constructed,
26 installed or equipped pursuant to, contracts entered into
27 before March 1, 1996 (but not including any amendments to
28 such a contract taking effect on or after that date); and (k)
29 made by a school district to replace revenues lost as a
30 result of the repeal of the local income tax for schools as
31 formerly imposed by the district under the Local Option
32 School District Income Tax Act.
33 "Debt service extension base" means an amount equal to
34 that portion of the extension for a taxing district for the
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1 1994 levy year, or for those taxing districts subject to this
2 Law in accordance with Section 18-213, except for those
3 subject to paragraph (2) of subsection (e) of Section 18-213,
4 for the levy year in which the referendum making this Law
5 applicable to the taxing district is held, or for those
6 taxing districts subject to this Law in accordance with
7 paragraph (2) of subsection (e) of Section 18-213 for the
8 1996 levy year, constituting an extension for payment of
9 principal and interest on bonds issued by the taxing district
10 without referendum, but not including (i) bonds authorized by
11 Public Act 88-503 and issued under Section 20a of the Chicago
12 Park District Act for aquarium and museum projects; (ii)
13 bonds issued under Section 15 of the Local Government Debt
14 Reform Act; or (iii) refunding obligations issued to refund
15 or to continue to refund obligations initially issued
16 pursuant to referendum. The debt service extension base may
17 be established or increased as provided under Section 18-212.
18 "Special purpose extensions" include, but are not limited
19 to, extensions for levies made on an annual basis for
20 unemployment and workers' compensation, self-insurance,
21 contributions to pension plans, and extensions made pursuant
22 to Section 6-601 of the Illinois Highway Code for a road
23 district's permanent road fund whether levied annually or
24 not. The extension for a special service area is not
25 included in the aggregate extension.
26 "Aggregate extension base" means the taxing district's
27 last preceding aggregate extension as adjusted under Sections
28 18-215 through 18-230.
29 "Levy year" has the same meaning as "year" under Section
30 1-155.
31 "New property" means (i) the assessed value, after final
32 board of review or board of appeals action, of new
33 improvements or additions to existing improvements on any
34 parcel of real property that increase the assessed value of
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1 that real property during the levy year multiplied by the
2 equalization factor issued by the Department under Section
3 17-30 and (ii) the assessed value, after final board of
4 review or board of appeals action, of real property not
5 exempt from real estate taxation, which real property was
6 exempt from real estate taxation for any portion of the
7 immediately preceding levy year, multiplied by the
8 equalization factor issued by the Department under Section
9 17-30. In addition, the county clerk in a county containing
10 a population of 3,000,000 or more shall include in the 1997
11 recovered tax increment value for any school district, any
12 recovered tax increment value that was applicable to the 1995
13 tax year calculations.
14 "Qualified airport authority" means an airport authority
15 organized under the Airport Authorities Act and located in a
16 county bordering on the State of Wisconsin and having a
17 population in excess of 200,000 and not greater than 500,000.
18 "Recovered tax increment value" means the amount of the
19 current year's equalized assessed value, in the first year
20 after a municipality terminates the designation of an area as
21 a redevelopment project area previously established under the
22 Tax Increment Allocation Development Act in the Illinois
23 Municipal Code, previously established under the Industrial
24 Jobs Recovery Law in the Illinois Municipal Code, or
25 previously established under the Economic Development Area
26 Tax Increment Allocation Act, of each taxable lot, block,
27 tract, or parcel of real property in the redevelopment
28 project area over and above the initial equalized assessed
29 value of each property in the redevelopment project area.
30 For the taxes which are extended for the 1997 levy year, the
31 recovered tax increment value for a non-home rule taxing
32 district that first became subject to this Law for the 1995
33 levy year because a majority of its 1994 equalized assessed
34 value was in an affected county or counties shall be
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1 increased if a municipality terminated the designation of an
2 area in 1993 as a redevelopment project area previously
3 established under the Tax Increment Allocation Development
4 Act in the Illinois Municipal Code, previously established
5 under the Industrial Jobs Recovery Law in the Illinois
6 Municipal Code, or previously established under the Economic
7 Development Area Tax Increment Allocation Act, by an amount
8 equal to the 1994 equalized assessed value of each taxable
9 lot, block, tract, or parcel of real property in the
10 redevelopment project area over and above the initial
11 equalized assessed value of each property in the
12 redevelopment project area.
13 Except as otherwise provided in this Section, "limiting
14 rate" means a fraction the numerator of which is the last
15 preceding aggregate extension base times an amount equal to
16 one plus the extension limitation defined in this Section and
17 the denominator of which is the current year's equalized
18 assessed value of all real property in the territory under
19 the jurisdiction of the taxing district during the prior levy
20 year. For those taxing districts that reduced their
21 aggregate extension for the last preceding levy year, the
22 highest aggregate extension in any of the last 3 preceding
23 levy years shall be used for the purpose of computing the
24 limiting rate. The denominator shall not include new
25 property. The denominator shall not include the recovered
26 tax increment value.
27 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
28 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
29 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
30 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
31 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
32 10-28-98.)
33 Section 115. The School Code is amended by changing
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1 Section 18-8.05 as follows:
2 (105 ILCS 5/18-8.05)
3 Sec. 18-8.05. Basis for apportionment of general State
4 financial aid and supplemental general State aid to the
5 common schools for the 1998-1999 and subsequent school years.
6 (A) General Provisions.
7 (1) The provisions of this Section apply to the
8 1998-1999 and subsequent school years. The system of general
9 State financial aid provided for in this Section is designed
10 to assure that, through a combination of State financial aid
11 and required local resources, the financial support provided
12 each pupil in Average Daily Attendance equals or exceeds a
13 prescribed per pupil Foundation Level. This formula approach
14 imputes a level of per pupil Available Local Resources and
15 provides for the basis to calculate a per pupil level of
16 general State financial aid that, when added to Available
17 Local Resources, equals or exceeds the Foundation Level. The
18 amount of per pupil general State financial aid for school
19 districts, in general, varies in inverse relation to
20 Available Local Resources. Per pupil amounts are based upon
21 each school district's Average Daily Attendance as that term
22 is defined in this Section.
23 (2) In addition to general State financial aid, school
24 districts with specified levels or concentrations of pupils
25 from low income households are eligible to receive
26 supplemental general State financial aid grants as provided
27 pursuant to subsection (H). The supplemental State aid grants
28 provided for school districts under subsection (H) shall be
29 appropriated for distribution to school districts as part of
30 the same line item in which the general State financial aid
31 of school districts is appropriated under this Section.
32 (3) To receive financial assistance under this Section,
33 school districts are required to file claims with the State
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1 Board of Education, subject to the following requirements:
2 (a) Any school district which fails for any given
3 school year to maintain school as required by law, or to
4 maintain a recognized school is not eligible to file for
5 such school year any claim upon the Common School Fund.
6 In case of nonrecognition of one or more attendance
7 centers in a school district otherwise operating
8 recognized schools, the claim of the district shall be
9 reduced in the proportion which the Average Daily
10 Attendance in the attendance center or centers bear to
11 the Average Daily Attendance in the school district. A
12 "recognized school" means any public school which meets
13 the standards as established for recognition by the State
14 Board of Education. A school district or attendance
15 center not having recognition status at the end of a
16 school term is entitled to receive State aid payments due
17 upon a legal claim which was filed while it was
18 recognized.
19 (b) School district claims filed under this Section
20 are subject to Sections 18-9, 18-10, and 18-12, except as
21 otherwise provided in this Section.
22 (c) If a school district operates a full year
23 school under Section 10-19.1, the general State aid to
24 the school district shall be determined by the State
25 Board of Education in accordance with this Section as
26 near as may be applicable.
27 (d) (Blank).
28 (4) Except as provided in subsections (H) and (L), the
29 board of any district receiving any of the grants provided
30 for in this Section may apply those funds to any fund so
31 received for which that board is authorized to make
32 expenditures by law.
33 School districts are not required to exert a minimum
34 Operating Tax Rate in order to qualify for assistance under
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1 this Section.
2 (5) As used in this Section the following terms, when
3 capitalized, shall have the meaning ascribed herein:
4 (a) "Average Daily Attendance": A count of pupil
5 attendance in school, averaged as provided for in
6 subsection (C) and utilized in deriving per pupil
7 financial support levels.
8 (b) "Available Local Resources": A computation of
9 local financial support, calculated on the basis of
10 Average Daily Attendance and derived as provided pursuant
11 to subsection (D).
12 (c) "Corporate Personal Property Replacement
13 Taxes": Funds paid to local school districts pursuant to
14 "An Act in relation to the abolition of ad valorem
15 personal property tax and the replacement of revenues
16 lost thereby, and amending and repealing certain Acts and
17 parts of Acts in connection therewith", certified August
18 14, 1979, as amended (Public Act 81-1st S.S.-1).
19 (d) "Foundation Level": A prescribed level of per
20 pupil financial support as provided for in subsection
21 (B).
22 (e) "Operating Tax Rate": All school district
23 property taxes extended for all purposes, except Bond and
24 Interest, Summer School, Rent, Capital Improvement, and
25 Vocational Education Building purposes.
26 (6) Notwithstanding any provision of the Local Option
27 School District Income Tax Act, the adoption or failure to
28 adopt a local income tax for schools and any disbursement of
29 funds or abatement in the extension of real property taxes
30 resulting from the adoption and imposition of a local income
31 tax for schools by one or more school districts under the
32 Local Option School District Income Tax Act shall not affect
33 the computation or distribution of State aid for any school
34 district, and all computations of State aid and all other
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1 distributions of State funds to school districts shall
2 proceed without regard to changes in school funding provided
3 in the Local Option School District Income Tax Act.
4 (B) Foundation Level.
5 (1) The Foundation Level is a figure established by the
6 State representing the minimum level of per pupil financial
7 support that should be available to provide for the basic
8 education of each pupil in Average Daily Attendance. As set
9 forth in this Section, each school district is assumed to
10 exert a sufficient local taxing effort such that, in
11 combination with the aggregate of general State financial aid
12 provided the district, an aggregate of State and local
13 resources are available to meet the basic education needs of
14 pupils in the district.
15 (2) For the 1998-1999 school year, the Foundation Level
16 of support is $4,225. For the 1999-2000 school year, the
17 Foundation Level of support is $4,325. For the 2000-2001
18 school year, the Foundation Level of support is $4,425.
19 (3) For the 2001-2002 school year and each school year
20 thereafter, the Foundation Level of support is $4,425 or such
21 greater amount as may be established by law by the General
22 Assembly.
23 (C) Average Daily Attendance.
24 (1) For purposes of calculating general State aid
25 pursuant to subsection (E), an Average Daily Attendance
26 figure shall be utilized. The Average Daily Attendance
27 figure for formula calculation purposes shall be the monthly
28 average of the actual number of pupils in attendance of each
29 school district, as further averaged for the best 3 months of
30 pupil attendance for each school district. In compiling the
31 figures for the number of pupils in attendance, school
32 districts and the State Board of Education shall, for
33 purposes of general State aid funding, conform attendance
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1 figures to the requirements of subsection (F).
2 (2) The Average Daily Attendance figures utilized in
3 subsection (E) shall be the requisite attendance data for the
4 school year immediately preceding the school year for which
5 general State aid is being calculated.
6 (D) Available Local Resources.
7 (1) For purposes of calculating general State aid
8 pursuant to subsection (E), a representation of Available
9 Local Resources per pupil, as that term is defined and
10 determined in this subsection, shall be utilized. Available
11 Local Resources per pupil shall include a calculated dollar
12 amount representing local school district revenues from local
13 property taxes and from Corporate Personal Property
14 Replacement Taxes, expressed on the basis of pupils in
15 Average Daily Attendance.
16 (2) In determining a school district's revenue from
17 local property taxes, the State Board of Education shall
18 utilize the equalized assessed valuation of all taxable
19 property of each school district as of September 30 of the
20 previous year. The equalized assessed valuation utilized
21 shall be obtained and determined as provided in subsection
22 (G).
23 (3) For school districts maintaining grades kindergarten
24 through 12, local property tax revenues per pupil shall be
25 calculated as the product of the applicable equalized
26 assessed valuation for the district multiplied by 3.00%, and
27 divided by the district's Average Daily Attendance figure.
28 For school districts maintaining grades kindergarten through
29 8, local property tax revenues per pupil shall be calculated
30 as the product of the applicable equalized assessed valuation
31 for the district multiplied by 2.30%, and divided by the
32 district's Average Daily Attendance figure. For school
33 districts maintaining grades 9 through 12, local property tax
34 revenues per pupil shall be the applicable equalized assessed
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1 valuation of the district multiplied by 1.20%, and divided by
2 the district's Average Daily Attendance figure.
3 (4) The Corporate Personal Property Replacement Taxes
4 paid to each school district during the calendar year 2 years
5 before the calendar year in which a school year begins,
6 divided by the Average Daily Attendance figure for that
7 district, shall be added to the local property tax revenues
8 per pupil as derived by the application of the immediately
9 preceding paragraph (3). The sum of these per pupil figures
10 for each school district shall constitute Available Local
11 Resources as that term is utilized in subsection (E) in the
12 calculation of general State aid.
13 (E) Computation of General State Aid.
14 (1) For each school year, the amount of general State
15 aid allotted to a school district shall be computed by the
16 State Board of Education as provided in this subsection.
17 (2) For any school district for which Available Local
18 Resources per pupil is less than the product of 0.93 times
19 the Foundation Level, general State aid for that district
20 shall be calculated as an amount equal to the Foundation
21 Level minus Available Local Resources, multiplied by the
22 Average Daily Attendance of the school district.
23 (3) For any school district for which Available Local
24 Resources per pupil is equal to or greater than the product
25 of 0.93 times the Foundation Level and less than the product
26 of 1.75 times the Foundation Level, the general State aid per
27 pupil shall be a decimal proportion of the Foundation Level
28 derived using a linear algorithm. Under this linear
29 algorithm, the calculated general State aid per pupil shall
30 decline in direct linear fashion from 0.07 times the
31 Foundation Level for a school district with Available Local
32 Resources equal to the product of 0.93 times the Foundation
33 Level, to 0.05 times the Foundation Level for a school
34 district with Available Local Resources equal to the product
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1 of 1.75 times the Foundation Level. The allocation of
2 general State aid for school districts subject to this
3 paragraph 3 shall be the calculated general State aid per
4 pupil figure multiplied by the Average Daily Attendance of
5 the school district.
6 (4) For any school district for which Available Local
7 Resources per pupil equals or exceeds the product of 1.75
8 times the Foundation Level, the general State aid for the
9 school district shall be calculated as the product of $218
10 multiplied by the Average Daily Attendance of the school
11 district.
12 (F) Compilation of Average Daily Attendance.
13 (1) Each school district shall, by July 1 of each year,
14 submit to the State Board of Education, on forms prescribed
15 by the State Board of Education, attendance figures for the
16 school year that began in the preceding calendar year. The
17 attendance information so transmitted shall identify the
18 average daily attendance figures for each month of the school
19 year, except that any days of attendance in August shall be
20 added to the month of September and any days of attendance in
21 June shall be added to the month of May.
22 Except as otherwise provided in this Section, days of
23 attendance by pupils shall be counted only for sessions of
24 not less than 5 clock hours of school work per day under
25 direct supervision of: (i) teachers, or (ii) non-teaching
26 personnel or volunteer personnel when engaging in
27 non-teaching duties and supervising in those instances
28 specified in subsection (a) of Section 10-22.34 and paragraph
29 10 of Section 34-18, with pupils of legal school age and in
30 kindergarten and grades 1 through 12.
31 Days of attendance by tuition pupils shall be accredited
32 only to the districts that pay the tuition to a recognized
33 school.
34 (2) Days of attendance by pupils of less than 5 clock
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1 hours of school shall be subject to the following provisions
2 in the compilation of Average Daily Attendance.
3 (a) Pupils regularly enrolled in a public school
4 for only a part of the school day may be counted on the
5 basis of 1/6 day for every class hour of instruction of
6 40 minutes or more attended pursuant to such enrollment.
7 (b) Days of attendance may be less than 5 clock
8 hours on the opening and closing of the school term, and
9 upon the first day of pupil attendance, if preceded by a
10 day or days utilized as an institute or teachers'
11 workshop.
12 (c) A session of 4 or more clock hours may be
13 counted as a day of attendance upon certification by the
14 regional superintendent, and approved by the State
15 Superintendent of Education to the extent that the
16 district has been forced to use daily multiple sessions.
17 (d) A session of 3 or more clock hours may be
18 counted as a day of attendance (1) when the remainder of
19 the school day or at least 2 hours in the evening of that
20 day is utilized for an in-service training program for
21 teachers, up to a maximum of 5 days per school year of
22 which a maximum of 4 days of such 5 days may be used for
23 parent-teacher conferences, provided a district conducts
24 an in-service training program for teachers which has
25 been approved by the State Superintendent of Education;
26 or, in lieu of 4 such days, 2 full days may be used, in
27 which event each such day may be counted as a day of
28 attendance; and (2) when days in addition to those
29 provided in item (1) are scheduled by a school pursuant
30 to its school improvement plan adopted under Article 34
31 or its revised or amended school improvement plan adopted
32 under Article 2, provided that (i) such sessions of 3 or
33 more clock hours are scheduled to occur at regular
34 intervals, (ii) the remainder of the school days in which
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1 such sessions occur are utilized for in-service training
2 programs or other staff development activities for
3 teachers, and (iii) a sufficient number of minutes of
4 school work under the direct supervision of teachers are
5 added to the school days between such regularly scheduled
6 sessions to accumulate not less than the number of
7 minutes by which such sessions of 3 or more clock hours
8 fall short of 5 clock hours. Any full days used for the
9 purposes of this paragraph shall not be considered for
10 computing average daily attendance. Days scheduled for
11 in-service training programs, staff development
12 activities, or parent-teacher conferences may be
13 scheduled separately for different grade levels and
14 different attendance centers of the district.
15 (e) A session of not less than one clock hour of
16 teaching of hospitalized or homebound pupils on-site or
17 by telephone to the classroom may be counted as 1/2 day
18 of attendance, however these pupils must receive 4 or
19 more clock hours of instruction to be counted for a full
20 day of attendance.
21 (f) A session of at least 4 clock hours may be
22 counted as a day of attendance for first grade pupils,
23 and pupils in full day kindergartens, and a session of 2
24 or more hours may be counted as 1/2 day of attendance by
25 pupils in kindergartens which provide only 1/2 day of
26 attendance.
27 (g) For children with disabilities who are below
28 the age of 6 years and who cannot attend 2 or more clock
29 hours because of their disability or immaturity, a
30 session of not less than one clock hour may be counted as
31 1/2 day of attendance; however for such children whose
32 educational needs so require a session of 4 or more clock
33 hours may be counted as a full day of attendance.
34 (h) A recognized kindergarten which provides for
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1 only 1/2 day of attendance by each pupil shall not have
2 more than 1/2 day of attendance counted in any one 1 day.
3 However, kindergartens may count 2 1/2 days of attendance
4 in any 5 consecutive school days. When a pupil attends
5 such a kindergarten for 2 half days on any one school
6 day, the pupil shall have the following day as a day
7 absent from school, unless the school district obtains
8 permission in writing from the State Superintendent of
9 Education. Attendance at kindergartens which provide for
10 a full day of attendance by each pupil shall be counted
11 the same as attendance by first grade pupils. Only the
12 first year of attendance in one kindergarten shall be
13 counted, except in case of children who entered the
14 kindergarten in their fifth year whose educational
15 development requires a second year of kindergarten as
16 determined under the rules and regulations of the State
17 Board of Education.
18 (G) Equalized Assessed Valuation Data.
19 (1) For purposes of the calculation of Available Local
20 Resources required pursuant to subsection (D), the State
21 Board of Education shall secure from the Department of
22 Revenue the value as equalized or assessed by the Department
23 of Revenue of all taxable property of every school district
24 together with the applicable tax rate used in extending taxes
25 for the funds of the district as of September 30 of the
26 previous year.
27 This equalized assessed valuation, as adjusted further by
28 the requirements of this subsection, shall be utilized in the
29 calculation of Available Local Resources.
30 (2) The equalized assessed valuation in paragraph (1)
31 shall be adjusted, as applicable, in the following manner:
32 (a) For the purposes of calculating State aid under
33 this Section, with respect to any part of a school
34 district within a redevelopment project area in respect
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1 to which a municipality has adopted tax increment
2 allocation financing pursuant to the Tax Increment
3 Allocation Redevelopment Act, Sections 11-74.4-1 through
4 11-74.4-11 of the Illinois Municipal Code or the
5 Industrial Jobs Recovery Law, Sections 11-74.6-1 through
6 11-74.6-50 of the Illinois Municipal Code, no part of the
7 current equalized assessed valuation of real property
8 located in any such project area which is attributable to
9 an increase above the total initial equalized assessed
10 valuation of such property shall be used as part of the
11 equalized assessed valuation of the district, until such
12 time as all redevelopment project costs have been paid,
13 as provided in Section 11-74.4-8 of the Tax Increment
14 Allocation Redevelopment Act or in Section 11-74.6-35 of
15 the Industrial Jobs Recovery Law. For the purpose of the
16 equalized assessed valuation of the district, the total
17 initial equalized assessed valuation or the current
18 equalized assessed valuation, whichever is lower, shall
19 be used until such time as all redevelopment project
20 costs have been paid.
21 (b) The real property equalized assessed valuation
22 for a school district shall be adjusted by subtracting
23 from the real property value as equalized or assessed by
24 the Department of Revenue for the district an amount
25 computed by dividing the amount of any abatement of taxes
26 under Section 18-170 of the Property Tax Code by 3.00%
27 for a district maintaining grades kindergarten through 12
28 , or by 2.30% for a district maintaining grades
29 kindergarten through 8, or by 1.20% for a district
30 maintaining grades 9 through 12 and adjusted by an amount
31 computed by dividing the amount of any abatement of taxes
32 under subsection (a) of Section 18-165 of the Property
33 Tax Code by the same percentage rates for district type
34 as specified in this subparagraph (b) (c).
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1 (H) Supplemental General State Aid.
2 (1) In addition to the general State aid a school
3 district is allotted pursuant to subsection (E), qualifying
4 school districts shall receive a grant, paid in conjunction
5 with a district's payments of general State aid, for
6 supplemental general State aid based upon the concentration
7 level of children from low-income households within the
8 school district. Supplemental State aid grants provided for
9 school districts under this subsection shall be appropriated
10 for distribution to school districts as part of the same line
11 item in which the general State financial aid of school
12 districts is appropriated under this Section. For purposes of
13 this subsection, the term "Low-Income Concentration Level"
14 shall be the low-income eligible pupil count from the most
15 recently available federal census divided by the Average
16 Daily Attendance of the school district.
17 (2) Supplemental general State aid pursuant to this
18 subsection shall be provided as follows:
19 (a) For any school district with a Low Income
20 Concentration Level of at least 20% and less than 35%,
21 the grant for any school year shall be $800 multiplied by
22 the low income eligible pupil count.
23 (b) For any school district with a Low Income
24 Concentration Level of at least 35% and less than 50%,
25 the grant for the 1998-1999 school year shall be $1,100
26 multiplied by the low income eligible pupil count.
27 (c) For any school district with a Low Income
28 Concentration Level of at least 50% and less than 60%,
29 the grant for the 1998-99 school year shall be $1,500
30 multiplied by the low income eligible pupil count.
31 (d) For any school district with a Low Income
32 Concentration Level of 60% or more, the grant for the
33 1998-99 school year shall be $1,900 multiplied by the low
34 income eligible pupil count.
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1 (e) For the 1999-2000 school year, the per pupil
2 amount specified in subparagraphs (b), (c), and (d),
3 immediately above shall be increased by $100 to $1,200,
4 $1,600, and $2,000, respectively.
5 (f) For the 2000-2001 school year, the per pupil
6 amounts specified in subparagraphs (b), (c) and (d)
7 immediately above shall be increased to $1,230, $1,640,
8 and $2,050, respectively.
9 (3) School districts with an Average Daily Attendance of
10 more than 1,000 and less than 50,000 that qualify for
11 supplemental general State aid pursuant to this subsection
12 shall submit a plan to the State Board of Education prior to
13 October 30 of each year for the use of the funds resulting
14 from this grant of supplemental general State aid for the
15 improvement of instruction in which priority is given to
16 meeting the education needs of disadvantaged children. Such
17 plan shall be submitted in accordance with rules and
18 regulations promulgated by the State Board of Education.
19 (4) School districts with an Average Daily Attendance of
20 50,000 or more that qualify for supplemental general State
21 aid pursuant to this subsection shall be required to
22 distribute from funds available pursuant to this Section, no
23 less than $261,000,000 in accordance with the following
24 requirements:
25 (a) The required amounts shall be distributed to
26 the attendance centers within the district in proportion
27 to the number of pupils enrolled at each attendance
28 center who are eligible to receive free or reduced-price
29 lunches or breakfasts under the federal Child Nutrition
30 Act of 1966 and under the National School Lunch Act
31 during the immediately preceding school year.
32 (b) The distribution of these portions of
33 supplemental and general State aid among attendance
34 centers according to these requirements shall not be
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1 compensated for or contravened by adjustments of the
2 total of other funds appropriated to any attendance
3 centers, and the Board of Education shall utilize funding
4 from one or several sources in order to fully implement
5 this provision annually prior to the opening of school.
6 (c) Each attendance center shall be provided by the
7 school district a distribution of noncategorical funds
8 and other categorical funds to which an attendance center
9 is entitled under law in order that the general State aid
10 and supplemental general State aid provided by
11 application of this subsection supplements rather than
12 supplants the noncategorical funds and other categorical
13 funds provided by the school district to the attendance
14 centers.
15 (d) Any funds made available under this subsection
16 that by reason of the provisions of this subsection are
17 not required to be allocated and provided to attendance
18 centers may be used and appropriated by the board of the
19 district for any lawful school purpose.
20 (e) Funds received by an attendance center pursuant
21 to this subsection shall be used by the attendance center
22 at the discretion of the principal and local school
23 council for programs to improve educational opportunities
24 at qualifying schools through the following programs and
25 services: early childhood education, reduced class size
26 or improved adult to student classroom ratio, enrichment
27 programs, remedial assistance, attendance improvement,
28 and other educationally beneficial expenditures which
29 supplement the regular and basic programs as determined
30 by the State Board of Education. Funds provided shall
31 not be expended for any political or lobbying purposes as
32 defined by board rule.
33 (f) Each district subject to the provisions of this
34 subdivision (H)(4) shall submit an acceptable plan to
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1 meet the educational needs of disadvantaged children, in
2 compliance with the requirements of this paragraph, to
3 the State Board of Education prior to July 15 of each
4 year. This plan shall be consistent with the decisions of
5 local school councils concerning the school expenditure
6 plans developed in accordance with part 4 of Section
7 34-2.3. The State Board shall approve or reject the plan
8 within 60 days after its submission. If the plan is
9 rejected, the district shall give written notice of
10 intent to modify the plan within 15 days of the
11 notification of rejection and then submit a modified plan
12 within 30 days after the date of the written notice of
13 intent to modify. Districts may amend approved plans
14 pursuant to rules promulgated by the State Board of
15 Education.
16 Upon notification by the State Board of Education
17 that the district has not submitted a plan prior to July
18 15 or a modified plan within the time period specified
19 herein, the State aid funds affected by that plan or
20 modified plan shall be withheld by the State Board of
21 Education until a plan or modified plan is submitted.
22 If the district fails to distribute State aid to
23 attendance centers in accordance with an approved plan,
24 the plan for the following year shall allocate funds, in
25 addition to the funds otherwise required by this
26 subsection, to those attendance centers which were
27 underfunded during the previous year in amounts equal to
28 such underfunding.
29 For purposes of determining compliance with this
30 subsection in relation to the requirements of attendance
31 center funding, each district subject to the provisions
32 of this subsection shall submit as a separate document by
33 December 1 of each year a report of expenditure data for
34 the prior year in addition to any modification of its
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1 current plan. If it is determined that there has been a
2 failure to comply with the expenditure provisions of this
3 subsection regarding contravention or supplanting, the
4 State Superintendent of Education shall, within 60 days
5 of receipt of the report, notify the district and any
6 affected local school council. The district shall within
7 45 days of receipt of that notification inform the State
8 Superintendent of Education of the remedial or corrective
9 action to be taken, whether by amendment of the current
10 plan, if feasible, or by adjustment in the plan for the
11 following year. Failure to provide the expenditure
12 report or the notification of remedial or corrective
13 action in a timely manner shall result in a withholding
14 of the affected funds.
15 The State Board of Education shall promulgate rules
16 and regulations to implement the provisions of this
17 subsection. No funds shall be released under this
18 subdivision (H)(4) to any district that has not submitted
19 a plan that has been approved by the State Board of
20 Education.
21 (I) General State Aid for Newly Configured School Districts.
22 (1) For a new school district formed by combining
23 property included totally within 2 or more previously
24 existing school districts, for its first year of existence
25 the general State aid and supplemental general State aid
26 calculated under this Section shall be computed for the new
27 district and for the previously existing districts for which
28 property is totally included within the new district. If the
29 computation on the basis of the previously existing districts
30 is greater, a supplementary payment equal to the difference
31 shall be made for the first 4 years of existence of the new
32 district.
33 (2) For a school district which annexes all of the
34 territory of one or more entire other school districts, for
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1 the first year during which the change of boundaries
2 attributable to such annexation becomes effective for all
3 purposes as determined under Section 7-9 or 7A-8, the general
4 State aid and supplemental general State aid calculated under
5 this Section shall be computed for the annexing district as
6 constituted after the annexation and for the annexing and
7 each annexed district as constituted prior to the annexation;
8 and if the computation on the basis of the annexing and
9 annexed districts as constituted prior to the annexation is
10 greater, a supplementary payment equal to the difference
11 shall be made for the first 4 years of existence of the
12 annexing school district as constituted upon such annexation.
13 (3) For 2 or more school districts which annex all of
14 the territory of one or more entire other school districts,
15 and for 2 or more community unit districts which result upon
16 the division (pursuant to petition under Section 11A-2) of
17 one or more other unit school districts into 2 or more parts
18 and which together include all of the parts into which such
19 other unit school district or districts are so divided, for
20 the first year during which the change of boundaries
21 attributable to such annexation or division becomes effective
22 for all purposes as determined under Section 7-9 or 11A-10,
23 as the case may be, the general State aid and supplemental
24 general State aid calculated under this Section shall be
25 computed for each annexing or resulting district as
26 constituted after the annexation or division and for each
27 annexing and annexed district, or for each resulting and
28 divided district, as constituted prior to the annexation or
29 division; and if the aggregate of the general State aid and
30 supplemental general State aid as so computed for the
31 annexing or resulting districts as constituted after the
32 annexation or division is less than the aggregate of the
33 general State aid and supplemental general State aid as so
34 computed for the annexing and annexed districts, or for the
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1 resulting and divided districts, as constituted prior to the
2 annexation or division, then a supplementary payment equal to
3 the difference shall be made and allocated between or among
4 the annexing or resulting districts, as constituted upon such
5 annexation or division, for the first 4 years of their
6 existence. The total difference payment shall be allocated
7 between or among the annexing or resulting districts in the
8 same ratio as the pupil enrollment from that portion of the
9 annexed or divided district or districts which is annexed to
10 or included in each such annexing or resulting district bears
11 to the total pupil enrollment from the entire annexed or
12 divided district or districts, as such pupil enrollment is
13 determined for the school year last ending prior to the date
14 when the change of boundaries attributable to the annexation
15 or division becomes effective for all purposes. The amount
16 of the total difference payment and the amount thereof to be
17 allocated to the annexing or resulting districts shall be
18 computed by the State Board of Education on the basis of
19 pupil enrollment and other data which shall be certified to
20 the State Board of Education, on forms which it shall provide
21 for that purpose, by the regional superintendent of schools
22 for each educational service region in which the annexing and
23 annexed districts, or resulting and divided districts are
24 located.
25 (3.5) Claims for financial assistance under this
26 subsection (I) shall not be recomputed except as expressly
27 provided under this Section.
28 (4) Any supplementary payment made under this subsection
29 (I) shall be treated as separate from all other payments made
30 pursuant to this Section.
31 (J) Supplementary Grants in Aid.
32 (1) Notwithstanding any other provisions of this
33 Section, the amount of the aggregate general State aid in
34 combination with supplemental general State aid under this
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1 Section for which each school district is eligible shall be
2 no less than the amount of the aggregate general State aid
3 entitlement that was received by the district under Section
4 18-8 (exclusive of amounts received under subsections 5(p)
5 and 5(p-5) of that Section) for the 1997-98 school year,
6 pursuant to the provisions of that Section as it was then in
7 effect. If a school district qualifies to receive a
8 supplementary payment made under this subsection (J), the
9 amount of the aggregate general State aid in combination with
10 supplemental general State aid under this Section which that
11 district is eligible to receive for each school year shall be
12 no less than the amount of the aggregate general State aid
13 entitlement that was received by the district under Section
14 18-8 (exclusive of amounts received under subsections 5(p)
15 and 5(p-5) of that Section) for the 1997-1998 school year,
16 pursuant to the provisions of that Section as it was then in
17 effect.
18 (2) If, as provided in paragraph (1) of this subsection
19 (J), a school district is to receive aggregate general State
20 aid in combination with supplemental general State aid under
21 this Section for the 1998-99 school year and any subsequent
22 school year that in any such school year is less than the
23 amount of the aggregate general State aid entitlement that
24 the district received for the 1997-98 school year, the school
25 district shall also receive, from a separate appropriation
26 made for purposes of this subsection (J), a supplementary
27 payment that is equal to the amount of the difference in the
28 aggregate State aid figures as described in paragraph (1).
29 (3) (Blank).
30 (K) Grants to Laboratory and Alternative Schools.
31 In calculating the amount to be paid to the governing
32 board of a public university that operates a laboratory
33 school under this Section or to any alternative school that
34 is operated by a regional superintendent of schools, the
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1 State Board of Education shall require by rule such reporting
2 requirements as it deems necessary.
3 As used in this Section, "laboratory school" means a
4 public school which is created and operated by a public
5 university and approved by the State Board of Education. The
6 governing board of a public university which receives funds
7 from the State Board under this subsection (K) may not
8 increase the number of students enrolled in its laboratory
9 school from a single district, if that district is already
10 sending 50 or more students, except under a mutual agreement
11 between the school board of a student's district of residence
12 and the university which operates the laboratory school. A
13 laboratory school may not have more than 1,000 students,
14 excluding students with disabilities in a special education
15 program.
16 As used in this Section, "alternative school" means a
17 public school which is created and operated by a Regional
18 Superintendent of Schools and approved by the State Board of
19 Education. Such alternative schools may offer courses of
20 instruction for which credit is given in regular school
21 programs, courses to prepare students for the high school
22 equivalency testing program or vocational and occupational
23 training. A regional superintendent of schools may contract
24 with a school district or a public community college district
25 to operate an alternative school. An alternative school
26 serving more than one educational service region may be
27 established by the regional superintendents of schools of
28 those the affected educational service regions. An
29 alternative school serving more than one educational service
30 region may be operated under such terms as the regional
31 superintendents of schools of those educational service
32 regions may agree.
33 Each laboratory and alternative school shall file, on
34 forms provided by the State Superintendent of Education, an
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1 annual State aid claim which states the Average Daily
2 Attendance of the school's students by month. The best 3
3 months' Average Daily Attendance shall be computed for each
4 school. The general State aid entitlement shall be computed
5 by multiplying the applicable Average Daily Attendance by the
6 Foundation Level as determined under this Section.
7 (L) Payments, Additional Grants in Aid and Other
8 Requirements.
9 (1) For a school district operating under the financial
10 supervision of an Authority created under Article 34A, the
11 general State aid otherwise payable to that district under
12 this Section, but not the supplemental general State aid,
13 shall be reduced by an amount equal to the budget for the
14 operations of the Authority as certified by the Authority to
15 the State Board of Education, and an amount equal to such
16 reduction shall be paid to the Authority created for such
17 district for its operating expenses in the manner provided in
18 Section 18-11. The remainder of general State school aid for
19 any such district shall be paid in accordance with Article
20 34A when that Article provides for a disposition other than
21 that provided by this Article.
22 (2) Impaction. Impaction payments shall be made as
23 provided for in Section 18-4.2.
24 (3) Summer school. Summer school payments shall be made
25 as provided in Section 18-4.3.
26 (M) Education Funding Advisory Board.
27 The Education Funding Advisory Board, hereinafter in this
28 subsection (M) referred to as the "Board", is hereby created.
29 The Board shall consist of 5 members who are appointed by the
30 Governor, by and with the advice and consent of the Senate.
31 The members appointed shall include representatives of
32 education, business, and the general public. One of the
33 members so appointed shall be designated by the Governor at
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1 the time the appointment is made as the chairperson of the
2 Board. The initial members of the Board may be appointed any
3 time after the effective date of this amendatory Act of 1997.
4 The regular term of each member of the Board shall be for 4
5 years from the third Monday of January of the year in which
6 the term of the member's appointment is to commence, except
7 that of the 5 initial members appointed to serve on the
8 Board, the member who is appointed as the chairperson shall
9 serve for a term that commences on the date of his or her
10 appointment and expires on the third Monday of January, 2002,
11 and the remaining 4 members, by lots drawn at the first
12 meeting of the Board that is held after all 5 members are
13 appointed, shall determine 2 of their number to serve for
14 terms that commence on the date of their respective
15 appointments and expire on the third Monday of January, 2001,
16 and 2 of their number to serve for terms that commence on the
17 date of their respective appointments and expire on the third
18 Monday of January, 2000. All members appointed to serve on
19 the Board shall serve until their respective successors are
20 appointed and confirmed. Vacancies shall be filled in the
21 same manner as original appointments. If a vacancy in
22 membership occurs at a time when the Senate is not in
23 session, the Governor shall make a temporary appointment
24 until the next meeting of the Senate, when he or she shall
25 appoint, by and with the advice and consent of the Senate, a
26 person to fill that membership for the unexpired term. If
27 the Senate is not in session when the initial appointments
28 are made, those appointments shall be made as in the case of
29 vacancies.
30 The Education Funding Advisory Board shall be deemed
31 established, and the initial members appointed by the
32 Governor to serve as members of the Board shall take office,
33 on the date that the Governor makes his or her appointment of
34 the fifth initial member of the Board, whether those initial
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1 members are then serving pursuant to appointment and
2 confirmation or pursuant to temporary appointments that are
3 made by the Governor as in the case of vacancies.
4 The State Board of Education shall provide such staff
5 assistance to the Education Funding Advisory Board as is
6 reasonably required for the proper performance by the Board
7 of its responsibilities.
8 For school years after the 2000-2001 school year, the
9 Education Funding Advisory Board, in consultation with the
10 State Board of Education, shall make recommendations as
11 provided in this subsection (M) to the General Assembly for
12 the foundation level under subdivision (B)(3) of this Section
13 and for the supplemental general State aid grant level under
14 subsection (H) of this Section for districts with high
15 concentrations of children from poverty. The recommended
16 foundation level shall be determined based on a methodology
17 which incorporates the basic education expenditures of
18 low-spending schools exhibiting high academic performance.
19 The Education Funding Advisory Board shall make such
20 recommendations to the General Assembly on January 1 of odd
21 numbered years, beginning January 1, 2001.
22 (N) General State Aid Adjustment Grant.
23 (1) Any school district subject to property tax
24 extension limitations as imposed under the provisions of the
25 Property Tax Extension Limitation Law shall be entitled to
26 receive, subject to the qualifications and requirements of
27 this subsection, a general State aid adjustment grant.
28 Eligibility for this grant shall be determined on an annual
29 basis and claims for grant payments shall be paid subject to
30 appropriations made specific to this subsection. For
31 purposes of this subsection the following terms shall have
32 the following meanings:
33 "Budget Year": The school year for which general State
34 aid is calculated and awarded under subsection (E).
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1 "Current Year": The school year immediately preceding
2 the Budget Year.
3 "Base Tax Year": The property tax levy year used to
4 calculate the Budget Year allocation of general State aid.
5 "Preceding Tax Year": The property tax levy year
6 immediately preceding the Base Tax Year.
7 "Extension Limitation Ratio": A numerical ratio,
8 certified by a school district's County Clerk, in which the
9 numerator is the Base Tax Year's tax extension amount
10 resulting from the Limiting Rate and the denominator is the
11 Preceding Tax Year's tax extension amount resulting from the
12 Limiting Rate.
13 "Limiting Rate": The limiting rate as defined in the
14 Property Tax Extension Limitation Law.
15 "Preliminary Tax Rate": The tax rate for all purposes
16 except bond and interest that would have been used to extend
17 those taxes absent the provisions of the Property Tax
18 Extension Limitation Law.
19 (2) To qualify for a general State aid adjustment grant,
20 a school district must meet all of the following eligibility
21 criteria for each Budget Year for which a grant is claimed:
22 (a) (Blank).
23 (b) The Preliminary Tax Rate of the school district
24 for the Base Tax Year was reduced by the Clerk of the
25 County as a result of the requirements of the Property
26 Tax Extension Limitation Law.
27 (c) The Available Local Resources per pupil of the
28 school district as calculated pursuant to subsection (D)
29 using the Base Tax Year are less than the product of 1.75
30 times the Foundation Level for the Budget Year.
31 (d) The school district has filed a proper and
32 timely claim for a general State aid adjustment grant as
33 required under this subsection.
34 (3) A claim for grant assistance under this subsection
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1 shall be filed with the State Board of Education on or before
2 April 1 of the Current Year for a grant for the Budget Year.
3 The claim shall be made on forms prescribed by the State
4 Board of Education and must be accompanied by a written
5 statement from the Clerk of the County, certifying:
6 (a) That the school district had its Preliminary
7 Tax Rate for the Base Tax Year reduced as a result of the
8 Property Tax Extension Limitation Law.
9 (b) (Blank).
10 (c) The Extension Limitation Ratio as that term is
11 defined in this subsection.
12 (4) On or before August 1 of the Budget Year the State
13 Board of Education shall calculate, for all school districts
14 meeting the other requirements of this subsection, the amount
15 of the general State aid adjustment grant, if any, that the
16 school districts are eligible to receive in the Budget Year.
17 The amount of the general State aid adjustment grant shall be
18 calculated as follows:
19 (a) Determine the school district's general State
20 aid grant for the Budget Year as provided in accordance
21 with the provisions of subsection (E).
22 (b) Determine the school district's adjusted level
23 of general State aid by utilizing in the calculation of
24 Available Local Resources the equalized assessed
25 valuation that was used to calculate the general State
26 aid for the preceding fiscal year multiplied by the
27 Extension Limitation Ratio.
28 (c) Subtract the sum derived in subparagraph (a)
29 from the sum derived in subparagraph (b). If the result
30 is a positive number, that amount shall be the general
31 State aid adjustment grant that the district is eligible
32 to receive.
33 (5) The State Board of Education shall in the Current
34 Year, based upon claims filed in the Current Year, recommend
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1 to the General Assembly an appropriation amount for the
2 general State aid adjustment grants to be made in the Budget
3 Year.
4 (6) Claims for general State aid adjustment grants shall
5 be paid in a lump sum on or before January 1 of the Budget
6 Year only from appropriations made by the General Assembly
7 expressly for claims under this subsection. No such claims
8 may be paid from amounts appropriated for any other purpose
9 provided for under this Section. In the event that the
10 appropriation for claims under this subsection is
11 insufficient to meet all Budget Year claims for a general
12 State aid adjustment grant, the appropriation available shall
13 be proportionately prorated by the State Board of Education
14 amongst all districts filing for and entitled to payments.
15 (7) The State Board of Education shall promulgate the
16 required claim forms and rules necessary to implement the
17 provisions of this subsection.
18 (O) References.
19 (1) References in other laws to the various subdivisions
20 of Section 18-8 as that Section existed before its repeal and
21 replacement by this Section 18-8.05 shall be deemed to refer
22 to the corresponding provisions of this Section 18-8.05, to
23 the extent that those references remain applicable.
24 (2) References in other laws to State Chapter 1 funds
25 shall be deemed to refer to the supplemental general State
26 aid provided under subsection (H) of this Section.
27 (Source: P.A. 90-548, eff. 7-1-98; incorporates 90-566;
28 90-653, eff. 7-29-98; 90-654, eff. 7-29-98; 90-655, eff.
29 7-30-98; 90-802, eff. 12-15-98; revised 12-24-98.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 105/5.490 new
4 30 ILCS 105/5.491 new
5 35 ILCS 5/512 from Ch. 120, par. 5-512
6 35 ILCS 200/18-45
7 35 ILCS 200/18-182 new
8 35 ILCS 200/18-185
9 105 ILCS 5/18-8.05