Public Act 90-0548 of the 90th General Assembly

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Public Act 90-0548

HB0452 Enrolled                                LRB9002549THcd

    AN ACT relating to education, amending named Acts.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

                          ARTICLE 5

    Section  5-1.  Short title.  This Article may be cited as
the School Construction Law.

    Section 5-5. Definitions.  As used in this Article:
    "Approved school construction bonds" mean bonds that were
approved by referendum after January 1,  1996  but  prior  to
January  1, 1998 as provided in Sections 19-2 through 19-7 of
the  School  Code  to  provide  funds  for  the  acquisition,
development,  construction,  reconstruction,  rehabilitation,
improvement,  architectural  planning,  and  installation  of
capital  facilities  consisting  of  buildings,   structures,
durable-equipment, and land for educational purposes.
    "Grant  index"  means  a  figure for each school district
equal to one minus the  ratio  of  the  district's  equalized
assessed  valuation  per pupil in average daily attendance to
the equalized assessed valuation per pupil in  average  daily
attendance of the district located at the 90th percentile for
all  districts of the same type.  The grant index shall be no
less than 0.35 and no greater than 0.75  for  each  district;
provided  that  the grant index for districts whose equalized
assessed valuation per pupil in average daily  attendance  is
at  the  99th  percentile  and above for all districts of the
same type shall be 0.00.
    "School  construction  project"  means  the  acquisition,
development,  construction,  reconstruction,  rehabilitation,
improvement,  architectural  planning,  and  installation  of
capital  facilities  consisting  of  buildings,   structures,
durable equipment, and land for educational purposes.

    Section  5-10.   Grant  awards.   The Capital Development
Board is authorized to make grants to  school  districts  for
school  construction  projects with funds appropriated by the
General    Assembly  from  the  School  Infrastructure   Fund
pursuant  to  the provisions of this Article. The State Board
of Education is authorized to make grants to school districts
for debt service  with  funds  appropriated  by  the  General
Assembly  from the School Infrastructure Fund pursuant to the
provisions of this Article.

    Section 5-15. Grant entitlements.   The  State  Board  of
Education  is  authorized  to  issue  grant  entitlements for
school construction  projects  and  debt  service  and  shall
determine  the priority order for school construction project
grants to be made by the Capital Development Board.

    Section 5-20.   Grant  application;  district  facilities
plan.   School  districts  shall  apply to the State Board of
Education for school construction  project  grants  and  debt
service  grants.   Districts  filing grant applications shall
submit to the State Board a  district  facilities  plan  that
shall  include,    but  not  be  limited to, an assessment of
present and future district facility  needs  as  required  by
present   and   anticipated   educational   programming,  the
availability of local financial resources  including  current
revenues,  fund  balances,  and  unused  bonding  capacity, a
fiscal plan for meeting present and anticipated debt  service
obligations, and a maintenance plan and schedule that contain
necessary   assurances  that  new,  renovated,  and  existing
facilities are being or will be  properly  maintained.    The
State  Board  of  Education shall review and approve district
facilities plans prior to issuing grant  entitlements.   Each
district  that  receives  a  grant entitlement shall annually
update its district facilities plan and  submit  the  revised
plan to the State Board for approval.

    Section 5-25.  Eligibility and project standards.
    (a)  The   State   Board  of  Education  shall  establish
eligibility standards for school construction project  grants
and  debt  service  grants.   These  standards  shall include
minimum enrollment requirements for  eligibility  for  school
construction  project  grants  of 200 students for elementary
districts, 200 students for high school  districts,  and  400
students  for  unit  districts.  The State Board of Education
shall  approve  a  district's  eligibility   for   a   school
construction  project  grant or a debt service grant pursuant
to the established standards.
    (b)  The  Capital  Development  Board   shall   establish
project  standards for all school construction project grants
provided pursuant to this  Article.   These  standards  shall
include   space   and  capacity  standards  as  well  as  the
determination of  recognized  project  costs  that  shall  be
eligible  for State financial assistance and enrichment costs
that shall not be eligible for State financial assistance.

    Section 5-30. Priority of school  construction  projects.
The  State Board of Education shall develop standards for the
determination   of   priority   needs    concerning    school
construction projects based upon approved district facilities
plans.  Such standards shall call for prioritization based on
the degree of need and project type in the following order:
    (1)  Replacement  or  reconstruction  of school buildings
destroyed or damaged by flood, tornado, fire, earthquake,  or
other disasters, either man-made or produced by nature;
    (2)  Projects   designed   to  alleviate  a  shortage  of
classrooms due to  population  growth  or  to  replace  aging
school buildings;
    (3)  Projects resulting from interdistrict reorganization
of school districts contingent on local referenda;
    (4)  Replacement  or reconstruction of school  facilities
determined to be severe and continuing health or life  safety
hazards;
    (5)  Alterations  necessary  to provide accessibility for
qualified individuals with disabilities; and
    (6)  Other unique solutions to facility needs.

    Section   5-35.   School   construction   project   grant
amounts-Prohibited use.
    (a)  The product of the district's grant  index  and  the
recognized   project  cost,  as  determined  by  the  Capital
Development  Board,  for  an  approved  school   construction
project  shall  equal  the  amount  of  the grant the Capital
Development Board shall provide  to  the  eligible  district.
The  grant index shall not be used in cases where the General
Assembly and the Governor approve  appropriations  designated
for  specifically  identified  school  district  construction
projects.
    (b)  In  each  fiscal  year  in which school construction
project grants are awarded, 20% of the total  amount  awarded
statewide  shall  be  awarded  to  a  school  district with a
population exceeding 500,000, provided such district complies
with the provisions of this Article.
    (c)  No portion of a school  construction  project  grant
awarded  by  the Capital Development Board shall be used by a
school district for any on-going operational costs.

    Section  5-40.   Supervision   of   school   construction
projects.   The  Capital  Development  Board  shall  exercise
general   supervision   over   school  construction  projects
financed pursuant to this Article.
    Section 5-45.  Debt  service  grants.   School  districts
that  have issued approved school construction bonds shall be
eligible to  apply  for  debt  service  grants.   The  amount
awarded  to  eligible districts for debt service grants shall
be equal to 10% of the principal amount  of  approved  school
construction  bonds  issued  by  the district times the grant
index for the district.  Debt service grants  shall  only  be
used  by  school  districts  to: retire principal of approved
school construction bonds, restructure the  debt  service  on
such  bonds,  or  abate  the  property  taxes  levied for the
district's bond and interest fund by an amount  identical  to
the amount of the debt service grant.  No debt service grants
shall  be  awarded by the State Board of Education after June
30, 1999.

    Section 5-50. Referendum requirements.  After  the  State
Board  of  Education has approved all or part of a district's
application and issued  a  grant  entitlement  for  a  school
construction  project  grant,  the  district shall submit the
project or the financing of the project to a referendum  when
such referendum is required by law.

    Section 5-55. Rules.
    (a)  The  Capital Development Board shall promulgate such
rules  as  it  deems   necessary   for   carrying   out   its
responsibilities under the provisions of this Article.
    (b)  The  State  Board of Education shall promulgate such
rules  as  it  deems   necessary   for   carrying   out   its
responsibilities under the provisions of this Article.

    (20 ILCS 3105/Art. 1A rep.)
    Section  5-900.   The  Capital  Development  Board Act is
amended by repealing Article 1A.
    Section 5-905.  The  State  Finance  Act  is  amended  by
adding Sections 5.500, 5.505, and 6z-45 as follows:

    (30 ILCS 105/5.500 new)
    Sec. 5.500. The School Infrastructure Fund.

    (30 ILCS 105/5.505 new)
    Sec. 5.505. The School Technology Revolving Loan Fund.

    (30 ILCS 105/6z-45 new)
    Sec.  6z-45.  The School Infrastructure Fund.  The School
Infrastructure Fund is created as a special fund in the State
Treasury.  Subject to  appropriation,  money  in  the  School
Infrastructure  Fund shall, if and when the State of Illinois
incurs any bonded indebtedness for the construction of school
improvements under the School Construction Act, be set  aside
and  used  for the purpose of paying and discharging annually
the principal and interest on that bonded  indebtedness  then
due  and  payable, and for no other purpose.  The surplus, if
any, in the School Infrastructure Fund after the  payment  of
principal  and  interest  on  that  bonded  indebtedness then
annually due shall, subject  to  appropriation,  be  used  as
follows:
    First--to  make  3  payments  to  the  School  Technology
Revolving Loan Fund as follows:
    Transfer of $30,000,000 in fiscal year 1999;
    Transfer of $20,000,000 in fiscal year 2000; and
    Transfer of $10,000,000 in fiscal year 2001.
    Second--to  pay  the  expenses  of  the  State  Board  of
Education  and the Capital Development Board in administering
programs  under  the  School  Construction  Act,  the   total
expenses not to exceed $1,000,000 in any fiscal year.
    Third--to  pay  any  amounts  due  for  grants for school
construction projects  and  debt  service  under  the  School
Construction Act.

    Section  5-910.   The Illinois Pension Code is amended by
changing Sections 17-108, 17-127, and 17-129 as follows:

    (40 ILCS 5/17-108) (from Ch. 108 1/2, par. 17-108)
    Sec. 17-108. Fiscal year and school year.
    "Fiscal year" and "school year": Beginning July 1,  1999,
the  period beginning on the 1st day of July September of one
calendar year and ending on the 30th 31st day of June  August
of  the  next calendar year. Each fiscal year and each school
year shall be designated for convenience with the same number
as the calendar year in which that fiscal year or school year
ends. The fiscal year which begins September  1,  1998  shall
end June 30, 1999.
(Source: P.A. 83-792.)

    (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
    Sec. 17-127. Financing; revenues for the Fund.
    (a)  The  revenues  for  the  Fund  shall consist of: (1)
amounts paid into the Fund by contributors thereto  and  from
employer  contributions  taxes  and  State  appropriations in
accordance with this Article; (2) amounts contributed to  the
Fund  pursuant  to  any  law  now in force or hereafter to be
enacted; (3) contributions from any other source; and (4) the
earnings on investments.
    (b)  The General Assembly finds that for many  years  the
State  has  contributed  to the Fund an annual amount that is
between 20% and  30%  of  the  amount  of  the  annual  State
contribution  to  the  Article  16 retirement system, and the
General Assembly declares that it is its goal  and  intention
to  continue  this  level  of contribution to the Fund in the
future.
(Source: P.A. 88-593, eff. 8-22-94.)
    (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
    Sec. 17-129. Employer contributions; deficiency in Fund.
    (a)  If in any fiscal year  of  the  board  of  education
ending  prior to 1997 the total amounts paid to the Fund from
the board of education (other than under this subsection, and
other  than  amounts  used  for  making   or   "picking   up"
contributions  on  behalf  of teachers) and from the State do
not equal the total contributions made by or on behalf of the
teachers for such year, or if the total income of the Fund in
any such fiscal year of  the  board  of  education  from  all
sources  is less than the total such expenditures by the Fund
for such year, the Board of  Education  shall,  in  the  next
succeeding year, in addition to any other payment to the Fund
set  apart  and appropriate from moneys from its tax levy for
educational  purposes,  a  sum  sufficient  to  remove   such
deficiency  or  deficiencies,  and promptly pay such sum into
the Fund in order to restore any of the reserves of the  Fund
that  may  have  been  so  temporarily  applied.  Any amounts
received by  the  Fund  after  the  effective  date  of  this
amendatory  Act  of 1997 from State appropriations, including
under Section 17-127, shall be a  credit  against  and  shall
fully  satisfy  any  obligation  that  may have arisen, or be
claimed to have arisen, under this subsection (a) as a result
of any deficiency or deficiencies in the fiscal year  of  the
board of education ending in calendar year 1997.
    (b)  (i)  For fiscal years 2011 through 2045, the minimum
contribution to the Fund to be made by the board of education
in each fiscal year shall be an amount determined by the Fund
to  be sufficient to bring the total assets of the Fund up to
90% of the total actuarial liabilities of the Fund by the end
of fiscal year 2045.  In  making  these  determinations,  the
required  board of education contribution shall be calculated
each year as a level percentage of  payroll  over  the  years
remaining  to  and  including  fiscal  year 2045 and shall be
determined under the projected  unit  credit  actuarial  cost
method.
    (ii)  For  fiscal  years  1999 through 2010, the board of
education's contribution to the Fund, as a percentage of  the
applicable  employee  payroll,  shall  be  increased in equal
annual increments so that by fiscal year 2011, the  board  of
education  is  contributing  at  the rate required under this
subsection.
    (iii)  Beginning in fiscal year 2046, the  minimum  board
of  education  contribution for each fiscal year shall be the
amount needed to maintain the total assets of the Fund at 90%
of the total actuarial liabilities of the Fund.
    (iv)  Notwithstanding the provisions of  paragraphs  (i),
(ii),  and  (iii) of this subsection (b), for any fiscal year
the contribution to the Fund  from  the  board  of  education
shall  not  be  required  to  be  in  excess  of  the  amount
calculated  as  needed  to  maintain the assets (or cause the
assets to be) at the 90% level by the end of the fiscal year.
    (v)  Any contribution by the State to or for the  benefit
of  the  Fund,  including, without limitation, as referred to
under  Section  17-127,  shall  be  a  credit   against   any
contribution  required  to  be made by the board of education
under this subsection (b).
    (c)  The Board of Trustees shall determine the amount  of
board  of  education  contributions  required for each fiscal
year  on  the  basis  of  the  actuarial  tables  and   other
assumptions  adopted  by the Board and the recommendations of
the actuary,  in  order  to  meet  the  minimum  contribution
requirements  of  subsections  (a)  and (b).  Annually, on or
before November 15, the Board shall certify to the  board  of
education  the  amount  of  the  required  board of education
contribution for the coming fiscal year.   The  certification
shall  include  a  copy of the actuarial recommendations upon
which it is based.
(Source: P.A. 89-15, eff. 5-30-95.)

    Section 5-915.  The School Code is  amended  by  changing
Sections  1A-2,  1A-4,  1B-8,  1C-2,  2-3.51, 2-3.51.5, 7-11,
10-20.9a,  10-22.6,  10-22.20,  10-22.23,  10-23.5,  10-23.8,
10-23.8a, 18-4.3, 18-7, 18-8, 18-8.2,  21-1a,  21-2,  21-2.1,
21-2a,  21-3,  21-4,  21-5,  21-5a,  21-10, 21-11.1, 21-11.3,
21-11.4, 21-14, 24-11, 24A-5,  27A-2,  27A-7,  27A-8,  27A-9,
27A-11,   34-8.4,   34-18,  and  34-84  and  adding  Sections
2-3.117a,  2-3.124,  10-20.30,  10-22.34c,  17-1.5,  18-8.05,
21-0.01, 21-5c, 21-5d, and 34-18.17 as follows:

    (105 ILCS 5/1A-2) (from Ch. 122, par. 1A-2)
    Sec. 1A-2.  Qualifications.  The  members  of  the  State
Board of Education shall be citizens of the United States and
residents  of  the State of Illinois and shall be selected as
far as may be practicable on the basis of their knowledge of,
or interest and experience in, problems of public  education.
No  member of the State Board of Education shall be gainfully
employed  or  administratively  connected  with  any   school
system,  nor  have  any  interest  in  or  benefit from funds
provided by the State Board of Education to an or institution
of higher learning, public or private, within  Illinois,  nor
shall  they  be  members of a school board or board of school
trustees of a public or nonpublic school, college, university
or technical institution within Illinois.   No  member  shall
be appointed to more than 2 six year terms.  Members shall be
reimbursed  for  all ordinary and necessary expenses incurred
in performing their duties as members of the Board.  Expenses
shall be approved by the Board and  be  consistent  with  the
laws,  policies,  and  requirements  of the State of Illinois
regarding such expenditures, plus any member may  include  in
his claim for expenses $50 per day for meeting days.
(Source: P.A. 80-1513.)
    (105 ILCS 5/1A-4) (from Ch. 122, par. 1A-4)
    Sec. 1A-4.  Powers and duties of the Board.
    A.  Upon the appointment of new Board members as provided
in   subsection  (b)  of  Section  1A-1  and  every  2  years
thereafter, the chairperson of the Board shall be selected by
the Governor, with the advice and consent of the Senate, from
the membership of the Board to serve  as  chairperson  for  2
years.
    B.  The  Board  shall determine the qualifications of and
appoint a chief education officer to be known  as  the  State
Superintendent  of  Education who shall serve at the pleasure
of the Board and pursuant  to  a  performance-based  contract
linked   to   statewide   student  performance  and  academic
improvement  within  Illinois   schools.   except   that   No
performance-based  contract  issued for the employment of the
State Superintendent of Education shall be for a term  longer
than  3  years  and  no contract shall be extended or renewed
prior to its scheduled expiration unless the performance  and
improvement  goals  contained  in the contract have been met.
The State Superintendent of Education shall not  serve  as  a
member  of the State Board of Education.  The Board shall set
the compensation of the State Superintendent of Education who
shall serve as the Board's chief executive officer. The Board
shall also establish the duties, powers and  responsibilities
of  the  State Superintendent, which shall be included in the
State Superintendent's performance-based contract along  with
the  goals and indicators of student performance and academic
improvement used to measure the performance and effectiveness
of the State Superintendent such officer. The State Board  of
Education   may  delegate  to  the  State  Superintendent  of
Education  the  authority  to  act  on  the  Board's  behalf,
provided such delegation is made pursuant  to  adopted  board
policy  or  the  powers  delegated are ministerial in nature.
The State Board may not delegate authority under this Section
to  the  State  Superintendent  to  (1)  nonrecognize  school
districts, (2) withhold State payments as a penalty,  or  (3)
make  final  decisions under the contested case provisions of
the Illinois Administrative Procedure  Act  unless  otherwise
provided by law.
    C.  The powers and duties of the State Board of Education
shall  encompass  all  duties  delegated  to  the  Office  of
Superintendent  of  Public  Instruction  on January 12, 1975,
except as the law providing for such  powers  and  duties  is
thereafter  amended,  and such other powers and duties as the
General  Assembly  shall  designate.   The  Board  shall   be
responsible  for  the educational policies and guidelines for
public schools, pre-school through grade  12  and  Vocational
Education  in the State of Illinois.  The Board shall analyze
the present and  future  aims,  needs,  and  requirements  of
education  in  the  State  of  Illinois  and recommend to the
General Assembly the powers which should be exercised by  the
Board.   The  Board  shall  recommend  the  passage  and  the
legislation    necessary   to   determine   the   appropriate
relationship between the Board and local boards of  education
and  the various State agencies and shall recommend desirable
modifications in the laws which affect schools.
    D.  Two members of the Board shall be  appointed  by  the
chairperson to serve on a standing joint Education Committee,
2  others  shall  be  appointed  from  the  Board  of  Higher
Education,  2 others shall be appointed by the chairperson of
the Illinois Community College Board, and 2 others  shall  be
appointed  by the chairperson of the Human Resource Resources
Investment Council.  The Committee shall be  responsible  for
making  recommendations  concerning  the  submission  of  any
workforce  development  plan  or  workforce  training program
required by federal law or under any block  grant  authority.
The  Committee  will  be responsible for developing policy on
matters of mutual concern to elementary, secondary and higher
education such as Occupational and Career Education,  Teacher
Preparation    and    Certification,   Educational   Finance,
Articulation  between  Elementary,   Secondary   and   Higher
Education  and  Research  and  Planning.  The joint Education
Committee shall  meet at least quarterly and submit an annual
report of its findings, conclusions, and  recommendations  to
the  State Board of Education, the Board of Higher Education,
the Illinois Community  College  Board,  the  Human  Resource
Resources  Investment  Council, the Governor, and the General
Assembly. All meetings of this Committee  shall  be  official
meetings for reimbursement under this Act.
    E.  Five  members of the Board shall constitute a quorum.
A majority vote  of  the  members  appointed,  confirmed  and
serving on the Board is required to approve any action.
    The  Board  shall  prepare  and  submit  to  the  General
Assembly  and  the Governor on or before January 14, 1976 and
annually thereafter a report or reports of its  findings  and
recommendations.  Such annual report shall contain a separate
section which provides a critique and analysis of the  status
of  education  in  Illinois and which identifies its specific
problems and recommends express  solutions  therefor.    Such
annual  report  also  shall contain the following information
for the preceding  year  ending  on  June  30:  each  act  or
omission  of  a  school  district of which the State Board of
Education  has  knowledge  as  a  consequence  of  scheduled,
approved visits  and  which  constituted  a  failure  by  the
district  to  comply with applicable State or federal laws or
regulations relating to public education, the  name  of  such
district,  the  date  or  dates  on  which the State Board of
Education  notified  the  school  district  of  such  act  or
omission, and what action, if any, the school  district  took
with  respect  thereto  after  being  notified thereof by the
State Board of Education. The report shall also  include  the
statewide  high  school  dropout rate by grade level, sex and
race and the annual student dropout rate of and the number of
students who graduate from, transfer from or otherwise  leave
bilingual  programs.   The  Auditor  General  shall  annually
perform  a compliance audit of the State Board of Education's
performance of the reporting duty imposed by this  amendatory
Act  of  1986.  A  regular system of communication with other
directly related State agencies shall be implemented.
    The requirement for reporting  to  the  General  Assembly
shall  be  satisfied  by filing copies of the report with the
Speaker, the Minority Leader and the Clerk of  the  House  of
Representatives  and  the  President, the Minority Leader and
the Secretary of the Senate and the Legislative  Council,  as
required  by  Section  3.1  of  "An  Act to revise the law in
relation to the General Assembly Organization Act",  approved
February  25,  1874,  as  amended, and filing such additional
copies with the State Government Report  Distribution  Center
for  the  General Assembly as is required under paragraph (t)
of Section 7 of the State Library Act.
(Source: P.A. 89-430, eff.  12-15-95;  89-610,  eff.  8-6-96;
89-698, eff. 1-14-97; revised 3-31-97.)

    (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
    Sec.  1B-8.   There  is  created  in the State Treasury a
special fund to be known as  the  School  District  Emergency
Financial  Assistance Fund (the "Fund").  The School District
Emergency  Financial  Assistance  Fund   shall   consist   of
appropriations,   grants  from  the  federal  government  and
donations from any public or private source.  Moneys  in  the
Fund  may  be  appropriated  only  to the State Board for the
purposes of this Article.  The appropriation may be allocated
and expended by the State Board as loans to school  districts
which  are  the subject of an approved petition for emergency
financial assistance under Section  1B-4.   From  the  amount
allocated  to each such school district the State Board shall
identify a sum sufficient to cover all approved costs of  the
Financial  Oversight  Panel  established  for  the respective
school district.  If the State Board and State Superintendent
of Education have not approved emergency financial assistance
in conjunction with the appointment of a Financial  Oversight
Panel,   the  Panel's  approved  costs  shall  be  paid  from
deductions from the district's general State aid.
    The Financial Oversight Panel may prepare and  file  with
the  State  Superintendent a proposal for emergency financial
assistance for the school district  and  for  the  operations
budget  of the Panel.  No expenditures shall be authorized by
the State Superintendent until he has approved  the  proposal
of  the  Panel,  either as submitted or in such lesser amount
determined by the State Superintendent.
    The maximum  amount  of  emergency  financial  assistance
which  may  be  allocated  to  any school district under this
Article, including moneys necessary for the operations of the
Panel, shall not exceed $1000  times  the  number  of  pupils
enrolled in the school district during the school year ending
June  30  prior to the date of approval by the State Board of
the petition for emergency financial assistance, as certified
to the local board and the Panel by the State Superintendent.
    The payment of emergency State financial assistance shall
be  subject  to  appropriation  by  the   General   Assembly.
Emergency  State financial assistance allocated and paid to a
school district under this Article may be applied to any fund
or funds from which the local  board  of  education  of  that
district is authorized to make expenditures by law.
    Any   emergency  financial  assistance  proposed  by  the
Financial  Oversight  Panel  and  approved   by   the   State
Superintendent may be paid in its entirety during the initial
year of the Panel's existence or spread in equal or declining
amounts  over  a  period of years not to exceed the period of
the Panel's existence.  All payments  made  from  the  School
District  Emergency  Financial  Assistance  Fund for a school
district shall be required to be repaid, with simple interest
at the rate of 4%, not later  than  the  date  the  Financial
Oversight  Panel  ceases  to exist. The Panel shall establish
and the State Superintendent  shall  approve  the  terms  and
conditions,  including  the  schedule,  of  repayments.   The
schedule  shall  provide  for repayments commencing July 1 of
each year. Repayment shall be incorporated  into  the  annual
budget  of  the school district and may be made from any fund
or funds of the district in which there are moneys available.
When moneys are repaid as provided herein they shall  not  be
made  available  to  the  local  board  for  further  use  as
emergency financial assistance under this Article at any time
thereafter.   All  repayments required to be made by a school
district shall be received by the State Board  and  deposited
in the School District Emergency Financial Assistance Fund.
    In   establishing   the  terms  and  conditions  for  the
repayment obligation of the school district the  Panel  shall
annually determine whether a separate local property tax levy
is  required.   The  board  of any school district with a tax
rate for educational purposes for the prior year of less than
120% of the maximum rate for educational purposes  authorized
by  Section  17-2  shall  provide for a separate tax levy for
emergency financial assistance repayment purposes.  Such  tax
levy shall not be subject to referendum approval.  The amount
of  the  levy  shall be equal to the amount necessary to meet
the  annual  repayment  obligations  of   the   district   as
established  by  the  Panel,  or 20% of the amount levied for
educational purposes for the prior year, whichever  is  less.
However, no district shall be required to levy the tax if the
district's   operating   tax   rate   as   determined   under
subparagraph  (A)(5)(b)  of  Section  18-8 or 18-8.05 exceeds
200% of the district's tax rate for educational purposes  for
the prior year.
(Source: P.A. 88-618, eff. 9-9-94.)

    (105 ILCS 5/1C-2)
    Sec. 1C-2.  Block grants.
    (a)  For   fiscal   year   1999,  and  each  fiscal  year
thereafter, the State  Board  of  Education  shall  award  to
school districts block grants as described in subsections (b)
and  (c).  The  State  Board of Education may adopt rules and
regulations necessary to implement this Section.
    (b)  A Professional  Development  Block  Grant  shall  be
created  by  combining  the existing School Improvement Block
Grant  and  the  REI  Initiative.  These   funds   shall   be
distributed  to  school  districts  based  on  the  number of
full-time  certified  instructional  staff  employed  in  the
district.
    (c)  An Early Childhood Education Block  Grant  shall  be
created   by  combining  the  following  programs:  Preschool
Education,  Parental  Training  and  Prevention   Initiative.
These  funds  shall  be  distributed  to school districts and
other entities on a competitive basis.  Eight percent of this
grant shall be used to fund programs for children  ages  0-3.
From  appropriations made for block grant purposes, the State
Board of Education is authorized to award funds  to  eligible
recipients upon application.  Semiannual installment payments
shall  be  made  and  semiannual expenditure reports shall be
required.
(Source: P.A. 88-555, eff. 7-27-94; 89-397, eff. 8-20-95.)

    (105 ILCS 5/2-3.51) (from Ch. 122, par. 2-3.51)
    Sec. 2-3.51.  Reading Improvement  Block  Grant  Program.
To  improve  the  reading  and  study skills of children from
kindergarten through sixth grade in  school  districts.   The
State  Board  of  Education,  hereinafter referred to as "the
Board", is authorized to administer a fund a School  District
Reading  Improvement  Block  Grant  Program.  As used in this
Section,  "school  district"  shall  include  those   schools
designated as "laboratory schools".
    (a)  The   program  shall  provide  reading  specialists,
teacher aides and other  personnel  to  improve  reading  and
study  skills  of children in public schools.  As part of the
program, the Board shall also make available funds for  books
and  other  printed  materials  which improve the reading and
study  skills  of  the  children.   Funds  for  the   Reading
Improvement  Block  Grant  Program  shall  be  distributed to
school districts on the following basis:  70% of monies shall
be awarded on the prior year's best 3  months  average  daily
attendance  and  30%  shall  be  distributed on the number of
economically disadvantaged (E.C.I.A. Chapter I) pupils in the
district, provided that the State  Board  may  distribute  an
amount  not  to  exceed 2% of the monies appropriated for the
Reading Improvement Block Grant Program for  the  purpose  of
providing teacher training and re-training in the teaching of
reading.   Program  funds  shall  be  distributed  to  school
districts in 2 semi-annual installments, one  payment  on  or
before October 30, and one payment prior to April 30, of each
year.  The State Board shall promulgate rules and regulations
necessary for the implementation of this program.
    (a-5)  Reading  Improvement  Block  Grant  Program  funds
shall be used by school districts in the following manner:
         (1)  to reduce class  size  in  grades  kindergarten
    through  3  for the purpose of providing more intensified
    reading instruction;
         (2)  to extend  the  time  devoted  in  kindergarten
    through  third  grade to intensified reading instruction,
    including phonic instruction, either by  lengthening  the
    school day or lengthening the school year;
         (3)  to  create  transitional  grades  for  students
    needing  intensified  reading  instruction either between
    the first and second grades or  between  the  second  and
    third  grades  in  accordance  with the authority granted
    school districts in Section 10-21.2 of this Code;
         (4)  to  continue  direct  reading  instruction  for
    grades 4 through 6;
         (5)  to establish reading academies in schools  that
    focus  on  the  mechanics  of reading, the application of
    reading skills, and the reading of  rich  literature  and
    that  reflect a commitment of time and resources to these
    functions;
         (6)  to conduct intense  vocabulary,  spelling,  and
    related  writing  enrichment programs that promote better
    understanding of language and words;
         (7)  to  increase  the   availability   of   reading
    specialists and teacher aides for reading; and
         (8)  to  train  and retrain teachers of kindergarten
    through third grade to be proficient in the  teaching  of
    reading, including phonic instruction.
    (a-10)  Reading  Improvement  Block  Grant  Program funds
shall be made available  to  each  eligible  school  district
submitting  a  one-page  application  developed  by the State
Board beginning with the 1998-99 school  year.   Applications
shall  include existing Illinois Goals and Assessment Program
(IGAP) reading scores and the planned use for the funds.   At
the  end of each school year the school district shall report
new  IGAP  results  on  the  same  form.   Each  application,
beginning with the 1998-99 school year, shall be for a 2-year
grant based on initial  year  qualification.   Districts  not
demonstrating performance progress using  IGAP reading scores
as  the  basis  of  measure  based  on  metrics  of  progress
established  by  the  State  Board  shall not be eligible for
funding in the third or  subsequent  years  thereafter  until
such  progress is established.
    (a-15)  The   State   Superintendent   of  Education,  in
cooperation with the school districts  participating  in  the
program,  shall  annually  report  to  the  leadership of the
General Assembly on the results of  the  Reading  Improvement
Block  Grant Program and the progress being made on improving
the reading skills of students in  kindergarten  through  the
sixth grade.
    (b)  (Blank).  Distribution of monies to school districts
shall be made in 2 semi-annual installments, one on or before
October 30, and one payment prior to April 30, of each year.
    From funds distributed for purposes of this Section,  the
Board  is  authorized to approve applications from qualifying
school districts to help meet a district's costs of employing
teacher aides. No school district shall  be  eligible  to  be
paid  under  this  Section for more than one teacher aide for
each 3 certificated teachers employed  by  the  district  for
classroom  teaching  of pupils in kindergarten and grades one
through 6.
    From funds distributed for purposes of this Section,  the
Board  is  authorized to approve applications from qualifying
school districts to help meet a district's cost of  employing
reading  specialists. No school district shall be eligible to
receive payment under this Section for more than one  reading
specialist  for  each  15  certificated  teachers,  or  major
portion  thereof,  employed  by  the  district  for classroom
teaching of pupils in kindergarten and grades one through 6.
    (c)  (Blank). Each person  employed  as  a  teacher  aide
pursuant to this Section must work under the supervision of a
certificated  teacher  and,  as a condition precedent to that
employment, either shall have earned  at  least  30  semester
hours  of college credit or shall have successfully completed
a Teacher Aide Program approved by the Board.
    (d)  Grants under the Reading Improvement  Program  shall
be  awarded  provided  there  is  an  appropriation  for  the
program,  and  funding  levels  for  each  district  shall be
prorated according to the amount of the appropriation.
    (e)  (Blank). District applications for participation  in
this program shall be approved by the Board.
    (f)  (Blank).  Notwithstanding  the  provisions regarding
distribution of monies contained in subsections (a)  and  (b)
of  this  Section,  the Board may distribute an amount not to
exceed  2%  of  the  monies  appropriated  for  the   Reading
Improvement  Program  to qualified recipients for the purpose
of training  teachers  and  other  educational  personnel  to
better  teach reading to the State's elementary and secondary
school students.
(Source: P.A. 86-237; 86-750; 86-1028; 87-280.)

    (105 ILCS 5/2-3.51.5)
    Sec. 2-3.51.5.  School Safety and Educational Improvement
Block Grant Program.  To improve the level of  education  and
safety  of  students  from  kindergarten  through grade 12 in
school districts.  The State Board of Education is authorized
to fund a School Safety  and  Educational  Improvement  Block
Grant Program.
    (1)  The program shall provide funding for school safety,
textbooks  and  software,  teacher  training  and  curriculum
development,  school  improvements,  and remediation programs
under subsection (a) of Section 2-3.64.  A school district or
laboratory school as defined in subsection B of Section  18-8
or  18-8.05   is not required to file an application in order
to receive the categorical funding to which  it  is  entitled
under   this  Section.   Funds  for  the  School  Safety  and
Educational  Improvement  Block  Grant   Program   shall   be
distributed  to school districts and laboratory schools based
on the prior year's best 3 months average  daily  attendance.
The  State  Board  of  Education  shall  promulgate rules and
regulations necessary for the implementation of this program.
    (2)  Distribution of moneys to school districts shall  be
made  in 2 semi-annual installments, one payment on or before
October 30, and one payment prior to April 30, of each fiscal
year.
    (3)  Grants  under  the  School  Safety  and  Educational
Improvement Block Grant Program  shall  be  awarded  provided
there is an appropriation for the program, and funding levels
for  each  district shall be prorated according to the amount
of the appropriation.
(Source: P.A. 89-610, eff. 8-6-96.)

    (105 ILCS 5/2-3.117a new)
    Sec. 2-3.117a. School Technology Revolving Loan Program.
    (a)  The  State  Board  of  Education  is  authorized  to
administer a School Technology Revolving  Loan  Program  from
funds appropriated  from the School Technology Revolving Loan
Fund  for  the  purpose  of  making  the  financing of school
technology   hardware   improvements    affordable.    School
technology  loans shall be made available to school districts
to purchase technology hardware for eligible grade levels  on
a  3-year  rotating  basis:  grades  K-4 in year one and each
third year thereafter, grades 5-8 in year 2  and  each  third
year  thereafter,  grades  9-12 in year 3 and each third year
thereafter.
    The State Board of Education shall determine the interest
rate the loans shall bear which shall not be greater than 50%
of the rate for the most recent date shown  in  the  20  G.O.
Bonds  Index of average municipal bond yields as published in
the most recent edition of The Bond  Buyer, published in  New
York,  New  York.  The repayment period for School Technology
Revolving Loans  shall  not  exceed  3  years.  Participating
school  districts  shall use the loan proceeds for technology
hardware  investments  for  students  and  staff,   including
computer  hardware,  technology networks, related wiring, and
other items defined in rules adopted by the  State  Board  of
Education.   No  school  district  whose  equalized  assessed
valuation per pupil in average daily  attendance  is  at  the
99th  percentile and above for all districts of the same type
shall be eligible to receive a  School  Technology  Revolving
Loan under the provisions of this Section for that year.
    The  State Board of Education shall have the authority to
adopt  all  rules  necessary  for  the   implementation   and
administration   of  the  School  Technology  Revolving  Loan
Program,  including,  but  not  limited  to,  rules  defining
application procedures,  prescribing  a  maximum  amount  per
pupil  that may be requested annually by districts, requiring
appropriate local  commitments  for  technology  investments,
prescribing  a  mechanism  for  disbursing  loan funds in the
event  requests  exceed  available  funds,  and   prescribing
actions  necessary  to  protect  the State's  interest in the
event of default,  foreclosure,  or  noncompliance  with  the
terms and conditions of the loans.
    (b)  There  is  created  in the State treasury the School
Technology Revolving Loan Fund.  The State Board  shall  have
the  authority to make expenditures from the Fund pursuant to
appropriations made for the purposes of this  Section.  There
shall  be deposited into the Fund such amounts, including but
not limited to:
         (1)  Transfers from the School Infrastructure Fund;
         (2)  All receipts, including principal and  interest
    payments, from any loan made from the Fund;
         (3)  All  proceeds  of  assets  of  whatever  nature
    received  by  the  State  Board as a result of default or
    delinquency with respect to loans made from the Fund;
         (4)  Any appropriations, grants, or  gifts  made  to
    the Fund; and
         (5)  Any    income   received   from   interest   on
    investments of money in the Fund.
    (105 ILCS 5/2-3.124 new)
    Sec. 2-3.124.  Liability coverage for certificated school
employees.  Beginning with the 1998-99 school year, the State
Board of Education shall provide or arrange to have  provided
for  each  certificated person who receives a salary or wages
in exchange for performing educational employment  activities
on  behalf  of  a  school  board,  board  of  trustees, joint
agreement  program  board,  cooperative  program  board,   or
similar  governing  body  of a public elementary or secondary
educational unit in Illinois educators liability coverage  in
amounts   no  less  than:   (1)  $1,000,000  per  person  per
occurrence, not to include any civil rights issue or  claims;
(2)  $250,000  per person per occurrence for any civil rights
issue or claims and not to include any other claims; and  (3)
$3,000,000 per occurrence aggregate for all claims.
    The  coverage  provided  by  the  State  Board shall also
include: (1) reimbursement of attorney fees for defense of  a
criminal  proceeding  in  an amount not less than $35,000 per
proceeding; (2) bail bond coverage of not  less  than  $1,000
per  bond;  and  (3) assault-related personal property damage
coverage of not less than $250 per incident.
    The liability coverage required by this Section shall  be
provided  at  no  cost  to the covered persons accepting such
coverage.
    The State Board shall adopt such rules and regulations as
are necessary to implement the provisions of this Section.

    (105 ILCS 5/7-11) (from Ch. 122, par. 7-11)
    Sec.  7-11.   Annexation   of   dissolved   non-operating
districts.  If  any  school  district has become dissolved as
provided in Section 5-32, or if a petition for dissolution is
filed under subsection (b)  of  Section  7-2a,  the  regional
board  of  school trustees shall attach the territory of such
dissolved district to one  or  more  districts  and,  if  the
territory  is  added to 2 or more districts, shall divide the
property of the dissolved district  among  the  districts  to
which  its territory is added, in the manner provided for the
division of property in case of the  organization  of  a  new
district  from a part of another district. The regional board
of school trustees  of  the  region  in  which  the  regional
superintendent  has supervision over the school district that
is dissolved shall have all  power  necessary  to  annex  the
territory  of  the  dissolved  district  as  provided in this
Section, including the power to attach  the  territory  to  a
school   district  under  the  supervision  of  the  regional
superintendent of another educational  service  region.   The
annexation  of  the  territory of a dissolved school district
under  this  Section  shall  entitle  the  school   districts
involved  in  the annexation to payments from the State Board
of Education under subsection (A)(5)(m) of  Section  18-8  or
subsection  (I)  of Section 18-8.05 and under Sections 18-8.2
and 18-8.3  in  the  same  manner  and  to  the  same  extent
authorized  in  the  case  of  other  annexations  under this
Article.  Other provisions of this Article 7  of  The  School
Code  shall  apply to and govern dissolutions and annexations
under this Section and Section 7-2a, except that  it  is  the
intent  of  the General Assembly that in the case of conflict
the provisions of this Section and Section 7-2a shall control
over the other provisions of this Article.
    The regional board of school trustees shall  give  notice
of  a hearing, to be held not less than 50 days nor more than
70 days after a school district is  dissolved  under  Section
5-32  or  a petition is filed under subsection (b) of Section
7-2a, on the disposition of  the  territory  of  such  school
district  by  publishing  a notice thereof at least once each
week for 2 successive weeks in at least one newspaper  having
a  general  circulation  within  the  area  of  the territory
involved. At such  hearing,  the  regional  board  of  school
trustees  shall  hear  evidence  as  to  the school needs and
conditions of the  territory  and  of  the  area  within  and
adjacent  thereto,  and  shall  take  into  consideration the
educational welfare of the pupils of the  territory  and  the
normal high school attendance pattern of the children. In the
case of an elementary school district if all the eighth grade
graduates  of such district customarily attend high school in
the same high school district, the regional board  of  school
trustees  shall,  unless  it  be  impossible  because  of the
restrictions  of  a  special  charter  district,  annex   the
territory  of  the district to a contiguous elementary school
district whose eighth grade graduates customarily attend that
high school, and  that  has  an  elementary  school  building
nearest  to the center of the territory to be annexed, but if
such eighth grade graduates customarily attend more than  one
high  school  the  regional  board  of  school trustees shall
determine the attendance pattern of such graduates and divide
the territory of the district among the contiguous elementary
districts whose graduates attend  the  same  respective  high
schools.
    The  decision of the regional board of school trustees in
such  matter  shall  be  issued  within  10  days  after  the
conclusion of  the  hearing  and  deemed  an  "administrative
decision"  as  defined  in Section 3-101 of the Code of Civil
Procedure and any resident who appears at the hearing or  any
petitioner  may  within  10 days after a copy of the decision
sought to be reviewed was served by registered mail upon  the
party  affected  thereby  file  a  complaint for the judicial
review   of   such   decision   in   accordance   with    the
"Administrative   Review   Law",   and   all  amendments  and
modifications thereof and the rules adopted pursuant thereto.
The commencement of any action for review shall operate as  a
stay  of enforcement, and no further proceedings shall be had
until final disposition of such review. The final decision of
the regional board of school trustees or of  any  court  upon
judicial  review  shall become effective under Section 7-9 in
the case of a petition for dissolution filed under subsection
(b) of Section  7-2a,  and  a  final  decision  shall  become
effective immediately following the date no further appeal is
allowable  in  the case of a district dissolved under Section
5-32.
    Notwithstanding the foregoing provisions of this  Section
or  any  other  provision  of law to the contrary, the school
board of the Mt. Morris  School  District  is  authorized  to
donate  to  the  City  of  Mount  Morris, Illinois the school
building and other real property used as a school site by the
Mt. Morris School District at the time of its dissolution, by
appropriate resolution adopted by the  school  board  of  the
district  prior  to the dissolution of the district; and upon
the adoption of a resolution by the school board donating the
school building and school site to the City of Mount  Morris,
Illinois as authorized by this Section, the regional board of
school trustees or other school officials holding legal title
to  the  school  building  and  school  site so donated shall
immediately convey the  same  to  the  City  of  Mt.  Morris,
Illinois.
(Source: P.A. 88-386.)

    (105 ILCS 5/10-20.9a) (from Ch. 122, par. 10-20.9a)
    Sec. 10-20.9a.  Final Grade; Promotion.
    (a)  Teachers   shall  administer  the  approved  marking
system or other approved means of evaluating pupil  progress.
The  teacher  shall  maintain the responsibility and right to
determine grades and other evaluations of students within the
grading policies of  the  district  based  upon  his  or  her
professional  judgment of available criteria pertinent to any
given subject area  or  activity  for  which  he  or  she  is
responsible.  District policy shall provide the procedure and
reasons  by  and  for  which a grade may be changed; provided
that  no  grade  or  evaluation  shall  be  changed   without
notification to the teacher concerning the nature and reasons
for  such change. If such a change is made, the person making
the change shall assume such responsibility  for  determining
the grade or evaluation, and shall initial such change.
    (b)  School  districts  shall not promote are discouraged
from promoting students to the next higher grade level  based
upon  age  or  any  other  social  reasons not related to the
academic performance of the students.  On or before September
1, 1998, school boards shall may adopt and enforce  a  policy
such  policies  on promotion as they deem necessary to ensure
that students meet local goals and objectives and can perform
at the expected grade level prior to promotion. Decisions  to
promote  or  retain students in any classes shall be based on
successful  completion   of   the   curriculum,   attendance,
performance  based  on  Illinois Goals and Assessment Program
tests, the Iowa Test of Basic Skills, or other testing or any
other criteria established by  the  school  board.   Students
determined by the local district to not qualify for promotion
to   the   next  higher  grade  shall  be  provided  remedial
assistance, which may include, but shall not be limited to, a
summer bridge program of no  less  than  90  hours,  tutorial
sessions,   increased  or  concentrated  instructional  time,
modifications to instructional materials,  and  retention  in
grade.
(Source: P.A. 89-610, eff. 8-6-96.)

    (105 ILCS 5/10-20.30 new)
    Sec.  10-20.30.  No  pass-no play policy.  Beginning with
the 1998-99 school year, the  school  board  of  each  school
district  that  maintains  any  of  grades 9 through 12 shall
establish, implement, and enforce a  uniform  and  consistent
policy under which a student in any of those grades who fails
to  maintain  a  specified  minimum  grade point average or a
specified minimum grade in each course in which  the  student
is  enrolled  or both is suspended from further participation
in  any  school-sponsored  or  school-supported  athletic  or
extracurricular activities for a specified period or until  a
specified  minimum  grade  point  average or minimum grade or
both are earned by the  student.   Each  school  board  shall
adopt a policy as required by this Section not later than one
year  after the effective date of this amendatory Act of 1997
and shall concurrently file a copy of that  policy  with  the
State  Board  of  Education.   After  the  policy has been in
effect for one year, the school board  shall  file  a  report
with  the  State  Board of Education setting forth the number
and length of suspensions imposed under the policy during the
period covered by the report. If the school board already has
a policy that is consistent with  the  requirements  of  this
Section  in  effect  on the effective date of this amendatory
Act of 1997, it shall file a copy of  that  policy  with  the
State  Board of Education within 90  days after the effective
date of this amendatory Act and shall file the annual  report
required under this Section 12 months thereafter.

    (105 ILCS 5/10-22.6) (from Ch. 122, par. 10-22.6)
    Sec.  10-22.6.  Suspension or expulsion of pupils; school
searches.
    (a)  To expel pupils  guilty  of  gross  disobedience  or
misconduct,  and  no  action  shall lie against them for such
expulsion. Expulsion shall take place only after the  parents
have  been  requested to appear at a meeting of the board, or
with a hearing officer appointed  by  it,  to  discuss  their
child's behavior. Such request shall be made by registered or
certified mail and shall state the time, place and purpose of
the meeting. The board, or a hearing officer appointed by it,
at such meeting shall state the reasons for dismissal and the
date  on  which  the  expulsion  is to become effective. If a
hearing officer is appointed by the board he shall report  to
the  board  a  written  summary  of the evidence heard at the
meeting and the board may take  such  action  thereon  as  it
finds appropriate.
    (b)  To   suspend  or  by  regulation  to  authorize  the
superintendent of the district or  the  principal,  assistant
principal,  or  dean  of  students  of  any school to suspend
pupils guilty of gross  disobedience  or  misconduct,  or  to
suspend  pupils guilty of gross disobedience or misconduct on
the school bus from riding the  school  bus,  and  no  action
shall  lie against them for such suspension. The board may by
regulation authorize the superintendent of  the  district  or
the  principal,  assistant  principal, or dean of students of
any school to suspend pupils guilty of such acts for a period
not to exceed 10 school days. If a pupil is suspended due  to
gross  disobedience  or misconduct on a school bus, the board
may suspend the pupil in excess of 10 school days for  safety
reasons.  Any suspension shall be reported immediately to the
parents or guardian of such pupil along with a full statement
of  the  reasons  for  such  suspension and a notice of their
right to a review, a copy of which  shall  be  given  to  the
school  board.  Upon  request  of the parents or guardian the
school board or a  hearing  officer  appointed  by  it  shall
review  such  action  of  the  superintendent  or  principal,
assistant principal, or dean of students.  At such review the
parents  or  guardian of the pupil may appear and discuss the
suspension with the  board  or  its  hearing  officer.  If  a
hearing  officer is appointed by the board he shall report to
the board a written summary of  the  evidence  heard  at  the
meeting.  After  its  hearing  or upon receipt of the written
report of its hearing officer, the board may take such action
as it finds appropriate.
    (c)  The Department of Human Services shall be invited to
send a representative to  consult  with  the  board  at  such
meeting whenever there is evidence that mental illness may be
the cause for expulsion or suspension.
    (d)  The  board may expel a student for a definite period
of time not to exceed 2 calendar years, as  determined  on  a
case  by  case  basis.    A student who is determined to have
brought a weapon to school, any school-sponsored activity  or
event,  or  any  activity  or  event which bears a reasonable
relationship to school shall be expelled for a period of  not
less  than  one year, except that the expulsion period may be
modified by the board on a case by case basis.  For  purposes
of  this  Section,  the  term "weapon" means possession, use,
control or transfer of any object which may be used to  cause
bodily harm, including but not limited to a weapon as defined
by  Section  921  of Title 18, United States Code, firearm as
defined in Section 1.1 of the Firearm  Owners  Identification
Act, use of weapon as defined in Section 24-1 of the Criminal
Code,   knives,   guns,  firearms,  rifles,  shotguns,  brass
knuckles, billy clubs, or "look-alikes" thereof.  Such  items
as baseball bats, pipes, bottles, locks, sticks, pencils, and
pens  may  be  considered  weapons if used or attempted to be
used to cause bodily harm.  Expulsion or suspension shall  be
construed in a manner consistent with the Federal Individuals
with  Disabilities Education Act. A student who is subject to
suspension or expulsion as provided in this  Section  may  be
eligible  for  a transfer to an alternative school program in
accordance  with  Article  13A  of  the  School  Code.    The
provisions  of  this  subsection  (d)  apply  in  all  school
districts,  including special charter districts and districts
organized under Article 34.
    (e)  To maintain  order  and  security  in  the  schools,
school  authorities  may  inspect and search places and areas
such as  lockers,  desks,  parking  lots,  and  other  school
property  and equipment owned or controlled by the school, as
well as personal effects left in those places  and  areas  by
students,  without  notice  to or the consent of the student,
and without a search warrant.  As a matter of public  policy,
the  General  Assembly finds that students have no reasonable
expectation of privacy in these places and areas or in  their
personal  effects  left  in  these  places and areas.  School
authorities may request the  assistance  of  law  enforcement
officials  for  the  purpose  of  conducting  inspections and
searches of lockers, desks, parking lots,  and  other  school
property  and equipment owned or controlled by the school for
illegal  drugs,  weapons,  or  other  illegal  or   dangerous
substances or materials, including searches conducted through
the  use of specially trained dogs.  If a search conducted in
accordance with  this  Section  produces  evidence  that  the
student  has  violated  or is violating either the law, local
ordinance, or the school's policies or rules,  such  evidence
may  be seized by school authorities, and disciplinary action
may be taken.  School authorities may  also  turn  over  such
evidence  to  law enforcement authorities.  The provisions of
this subsection (e) apply in all school districts,  including
special  charter  districts  and  districts  organized  under
Article 34.
    (f)  Suspension  or  expulsion  may include suspension or
expulsion  from  school  and  all  school  activities  and  a
prohibition from being present on school grounds.
(Source: P.A.  89-371,  eff.  1-1-96;  89-507,  eff.  7-1-97;
89-610, eff. 8-6-96; P.A. 90-14, eff. 7-1-97.)

    (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
    Sec.  10-22.20.  Classes  for  adults  and  youths  whose
schooling   has   been   interrupted;  Conditions  for  State
reimbursement; Use of child care facilities.
    (a)  To establish special classes for the instruction (1)
of persons of age 21 years or over, and (2) of  persons  less
than age 21 and not otherwise in attendance in public school,
for  the  purpose  of  providing adults in the community, and
youths  whose  schooling  has  been  interrupted,  with  such
additional basic education, vocational  skill  training,  and
other  instruction  as  may  be  necessary  to increase their
qualifications for employment or other means of  self-support
and  their ability to meet their responsibilities as citizens
including  courses  of  instruction  regularly  accepted  for
graduation  from  elementary  or   high   schools   and   for
Americanization  and  General  Educational Development Review
classes.
    The board  shall  pay  the  necessary  expenses  of  such
classes  out of school funds of the district, including costs
of student transportation and such  facilities  or  provision
for  child-care  as  may  be necessary in the judgment of the
board  to  permit  maximum  utilization  of  the  courses  by
students with  children,  and  other  special  needs  of  the
students  directly related to such instruction.  The expenses
thus incurred shall be subject  to  State  reimbursement,  as
provided  in  this  Section.   The  board  may make a tuition
charge for persons taking instruction who are not subject  to
State  reimbursement,  such  tuition charge not to exceed the
per capita cost of such classes.
    The cost of such instruction,  including  the  additional
expenses   herein  authorized,  incurred  for  recipients  of
financial aid under the Illinois  Public  Aid  Code,  or  for
persons   for  whom  education  and  training  aid  has  been
authorized under Section 9-8 of that Code, shall  be  assumed
in  its  entirety from funds appropriated by the State to the
State Board of Education.
    (b)  The  State  Board  of  Education  and  the  Illinois
Community  College  Board  shall  annually  enter   into   an
interagency   agreement   to  implement  this  Section.   The
interagency agreement shall establish the standards  for  the
courses  of  instruction  reimbursed under this Section.  The
State Board of Education shall supervise  the  administration
of   the  programs.   The  State  Board  of  Education  shall
determine  the  cost  of  instruction  in   accordance   with
standards jointly established by the State Board of Education
and  the Illinois Community College Board as set forth in the
interagency agreement,  including  therein  other  incidental
costs as herein authorized, which shall serve as the basis of
State  reimbursement  in  accordance  with  the provisions of
this  Section.  In  the  approval   of   programs   and   the
determination  of the cost of instruction, the State Board of
Education  shall  provide  for  the  maximum  utilization  of
federal funds for such programs.  The  interagency  agreement
shall also include:
         (1)  the development of an index of need for program
    planning  and  for area funding allocations as defined by
    the State Board of Education;
         (2)  the   method   for   calculating    hours    of
    instruction,  as defined by the State Board of Education,
    claimable for reimbursement and a method to phase in  the
    calculation  and  for adjusting the calculations in cases
    where the services of a program are  interrupted  due  to
    circumstances beyond the control of the program provider;
         (3)  a   plan  for  the  reallocation  of  funds  to
    increase the  amount  allocated  for  grants  based  upon
    program performance as set forth in subsection (d) below;
    and
         (4)  the  development  of  standards for determining
    grants based upon performance as set forth in  subsection
    (d)  below and a plan for the phased-in implementation of
    those standards.
    For  instruction  provided  by   school   districts   and
community  college  districts  beginning  July  1,  1996  and
thereafter,  reimbursement  provided  by  the  State Board of
Education for classes authorized by  this  Section  shall  be
provided  pursuant  to the terms of the interagency agreement
from funds appropriated for the  reimbursement  criteria  set
forth in subsection (c) below.
    (c)  Upon   the   annual   approval  of  the  interagency
agreement,  reimbursement  shall  be   first   provided   for
transportation,  child care services, and other special needs
of the students directly related to instruction and then from
the funds remaining an amount equal to  the  product  of  the
total  credit  hours  or units of instruction approved by the
State Board of Education, multiplied by the following:
         (1)  For  adult   basic   education,   the   maximum
    reimbursement  per credit hour or per unit of instruction
    shall be  equal  to  the  general  state  aid  per  pupil
    foundation  level established in subsections 5(a) through
    5(d)  of  Section  18-8  or  subsection  (B)  of  Section
    18-8.05, divided by 60;
         (2)  The maximum reimbursement per  credit  hour  or
    per  unit  of instruction in subparagraph (1) above shall
    be weighted for students enrolled in classes  defined  as
    vocational  skills  and  approved  by  the State Board of
    Education by 1.25;
         (3)  The maximum reimbursement per  credit  hour  or
    per  unit  of instruction in subparagraph (1) above shall
    be multiplied by .90 for  students  enrolled  in  classes
    defined   as   adult  secondary  education  programs  and
    approved by the State Board of Education;
         (4)  For community  college  districts  the  maximum
    reimbursement  per credit hour in subparagraphs (1), (2),
    and (3)  above  shall  be  reduced  by  the  Adult  Basic
    Education/Adult  Secondary  Education/English As A Second
    Language credit hour grant  rate  prescribed  in  Section
    2-16.02 of the Public Community College Act, as pro-rated
    to the appropriation level; and
         (5)  Programs receiving funds under the formula that
    was  in  effect  during  the 1994-1995 program year which
    continue to be approved and which generate at  least  80%
    of  the  hours  claimable  in  1994-95, or in the case of
    programs not approved in 1994-95  at  least  80%  of  the
    hours  claimable  in  1995-96,  shall  have  funding  for
    subsequent  years  based upon 100% of the 1995-96 formula
    funding level for 1996-97, 90%  of  the  1995-96  formula
    funding  level  for  1997-98,  80% of the 1995-96 formula
    funding level for 1998-99, and 70% of the 1995-96 formula
    funding level for 1999-2000.  For  any  approved  program
    which  generates  less than 80% of the claimable hours in
    its base year, the level  of  funding  pursuant  to  this
    paragraph  shall be reduced proportionately.  Funding for
    program years after 1999-2000 shall be  pursuant  to  the
    interagency agreement.
    (d)  Upon   the   annual   approval  of  the  interagency
agreement, the State Board of Education shall provide  grants
to  eligible  programs for supplemental activities to improve
or expand services under the Adult Education Act.    Eligible
programs  shall be determined based upon performance outcomes
of students in the programs as set forth in  the  interagency
agreement.
    (e)  Reimbursement  under  this  Section shall not exceed
the actual costs of the approved program.
    If  the  amount  appropriated  to  the  State  Board   of
Education  for  reimbursement under this Section is less than
the amount required under this Act, the  apportionment  shall
be proportionately reduced.
    School  districts  and  community  college  districts may
assess students up to $3.00  per  credit  hour,  for  classes
other than Adult Basic Education level programs, if needed to
meet program costs.
    (f)  An  education  plan  shall  be  established for each
adult or youth whose schooling has been interrupted  and  who
is participating in the instructional programs provided under
this Section.
    Each  school  board  and  community college shall keep an
accurate and detailed account of the students assigned to and
receiving instruction under this Section who are  subject  to
State  reimbursement  and  shall  submit  reports of services
provided commencing with fiscal year 1997 as required in  the
interagency agreement.
    For  classes authorized under this Section, a credit hour
or unit of  instruction  is  equal  to  15  hours  of  direct
instruction for students enrolled in approved adult education
programs  at  midterm  and  making  satisfactory progress, in
accordance with standards jointly established  by  the  State
Board  of  Education and the Illinois Community College Board
as set forth in the interagency agreement.
    (g)  Upon proof submitted to the Illinois  Department  of
Human  Services  of the payment of all claims submitted under
this Section, that Department shall apply for  federal  funds
made  available  therefor  and  any federal funds so received
shall be paid into the General  Revenue  Fund  in  the  State
Treasury.
    School  districts or community colleges providing classes
under this Section shall submit  applications  to  the  State
Board  of  Education  for  preapproval in accordance with the
standards jointly established by the State Board of Education
and the Illinois Community College Board as set forth in  the
interagency  agreement.   Payments shall be made by the State
Board of Education based  upon  approved  programs.   Interim
expenditure  reports  may  be  required by the State Board of
Education as set forth in the interagency agreement.    Final
claims for the school year shall be submitted to the regional
superintendents   for  transmittal  to  the  State  Board  of
Education as set forth in the interagency  agreement.   Final
adjusted payments shall be made by September 30.
    If  a school district or community college district fails
to provide, or is providing  unsatisfactory  or  insufficient
classes  under this Section, the State Board of Education may
enter into agreements with public or private  educational  or
other   agencies  other  than  the  public  schools  for  the
establishment of such classes.
    (h)  If a school district or community  college  district
establishes   child-care   facilities  for  the  children  of
participants in classes established under  this  Section,  it
may  extend  the use of these facilities to students who have
obtained employment and to other  persons  in  the  community
whose  children require care and supervision while the parent
or other person in charge of  the  children  is  employed  or
otherwise absent from the home during all or part of the day.
It may make the facilities available before and after as well
as  during  regular  school hours to school age and preschool
age children who may benefit thereby, including children  who
require  care  and  supervision  pending  the return of their
parent  or  other  person  in  charge  of  their  care   from
employment or other activity requiring absence from the home.
    The  State  Board of Education shall pay to the board the
cost of care in  the  facilities  for  any  child  who  is  a
recipient  of  financial  aid  under  The Illinois Public Aid
Code.
    The board may charge for care of  children  for  whom  it
cannot  make claim under the provisions of this Section.  The
charge shall not exceed per capita cost, and  to  the  extent
feasible,  shall  be  fixed  at  a  level  which  will permit
utilization by employed parents of low  or  moderate  income.
It  may  also  permit  any  other State or local governmental
agency or private  agency  providing  care  for  children  to
purchase care.
    After  July  1,  1970  when  the  provisions  of  Section
10-20.20  become  operative  in  the  district, children in a
child-care facility shall be transferred to the  kindergarten
established under that Section for such portion of the day as
may  be  required  for the kindergarten program, and only the
prorated costs of care and training provided  in  the  Center
for  the  remaining  period  shall be charged to the Illinois
Department of Human Services or  other  persons  or  agencies
paying for such care.
    (i)  The  provisions  of this Section shall also apply to
school districts having a population exceeding 500,000.
(Source: P.A. 89-507,  eff.  7-1-97;  89-524,  eff.  7-19-96;
revised 8-15-96; 90-14, eff. 7-1-97.)

    (105 ILCS 5/10-22.23) (from Ch. 122, par. 10-22.23)
    Sec.  10-22.23.   School  Nurse.   To employ a registered
professional nurse and define the duties of the school  nurse
within the guidelines of rules and regulations promulgated by
the  State  Board  of  Education.   Any  school  nurse  first
employed  on  or  after  July  1,  1976, whose duties require
teaching  or  the  exercise  of  instructional  judgment   or
educational  evaluation of pupils, must be certificated under
Section 21-25  of  this  Act.  School  districts  may  employ
non-certificated  registered  professional  nurses to perform
professional nursing services.
(Source: P.A. 81-1508.)

    (105 ILCS 5/10-22.34c new)
    Sec. 10-22.34c. Third party  non-instructional  services.
Notwithstanding  any other law of this State, nothing in this
Code prevents a board  of  education  from  entering  into  a
contract  with  a  third party for non-instructional services
currently performed by any employee or bargaining unit member
or  from  laying  off  those  educational  support  personnel
employees  upon  30  days  written  notice  to  the  affected
employees.

    (105 ILCS 5/10-23.5) (from Ch. 122, par. 10-23.5)
    Sec. 10-23.5.  Educational support  personnel  employees.
To  employ such educational support personnel employees as it
deems  advisable  and  to  define  their  employment  duties;
provided that residency within any school district shall  not
be   considered   in   determining   the  employment  or  the
compensation of any such  employee,  or  whether  to  retain,
promote, assign or transfer such employee.  If an educational
support  personnel  employee  is  removed  or  dismissed as a
result of a decision of the  school  board  to  decrease  the
number of educational support personnel employees employed by
the   board   or  to  discontinue  some  particular  type  of
educational support service, written notice shall  be  mailed
to  the  employee  and  also  given  the  employee  either by
certified mail, return receipt requested or personal delivery
with receipt at least 30  60  days  before  the  employee  is
removed  or dismissed end of the school term, together with a
statement of honorable dismissal  and  the  reason  therefor.
The  employee  with  the shorter length of continuing service
with  the  district,  within  the  respective   category   of
position,  shall  be  dismissed  first  unless an alternative
method  of  determining  the   sequence   of   dismissal   is
established  in a collective bargaining agreement or contract
between the board and  any  exclusive  bargaining  agent  and
except  that this provision shall not impair the operation of
any affirmative action program in the district, regardless of
whether it exists by operation of law or is  conducted  on  a
voluntary basis by the board.  If the board has any vacancies
for  the  following  school  term or within one calendar year
from  the  beginning  of  the  following  school  term,   the
positions   thereby  becoming  available  within  a  specific
category of position shall be tendered to  the  employees  so
removed  or  dismissed from that category of position, so far
as they are qualified to hold  such  positions.   Each  board
shall,   in   consultation   with   any   exclusive  employee
representative or bargaining agent,  each  year  establish  a
list,   categorized  by  positions,  showing  the  length  of
continuing service of  each  full  time  educational  support
personnel   employee  who  is  qualified  to  hold  any  such
positions, unless an  alternative  method  of  determining  a
sequence  of dismissal is established as provided for in this
Section, in which case a list shall  be  made  in  accordance
with  the  alternative  method.   Copies of the list shall be
distributed  to  the  exclusive  employee  representative  or
bargaining agent on or before February 1 of each year.  Where
an educational support personnel employee is dismissed by the
board as a result of a decrease in the number of employees or
the discontinuance of the employee's job, the employee  shall
be  paid  all  earned  compensation  on  or  before the third
business day following his or her last day of employment.
    The provisions of this amendatory Act of 1986 relating to
residency within any  school  district  shall  not  apply  to
cities having a population exceeding 500,000 inhabitants.
(Source: P.A. 89-618, eff. 8-9-96.)

    (105 ILCS 5/10-23.8) (from Ch. 122, par. 10-23.8)
    Sec.  10-23.8.  Superintendent contracts under multi-year
contract. After the effective date of this amendatory Act  of
1997  and  the  expiration  of  contracts  in  effect  on the
effective date of this amendatory Act, school  districts  may
only To employ a superintendent under either a contract for a
period    not    exceeding   one   year   or   a   multi-year
performance-based contract  for  a  period  not  exceeding  5
years.  No  such contract can be offered or accepted for less
than or more than three years, except for a person serving as
superintendent for the first time in Illinois.  In such case,
the initial contract shall be for a  two  year  period.  Such
contract  may be discontinued at any time by mutual agreement
of the  contracting  parties,  or  may  be  extended  for  an
additional 3 years at the end of any year.
    Performance-based  contracts  shall  be linked to student
performance and academic improvement within  the  schools  of
the   districts.   No  performance-based  contract  shall  be
extended or rolled-over prior  to  its  scheduled  expiration
unless all the performance and improvement goals contained in
the  contract have been met.  Each performance-based contract
shall include the goals and indicators of student performance
and academic improvement determined and  used  by  the  local
school  board to measure the performance and effectiveness of
the superintendent and such other information  as  the  local
school board may determine.
    The  contract  year  is July 1 through the following June
30, unless  the  contract  specifically  provides  otherwise.
Notice  of  intent not to renew the contract must be given by
the board or by the superintendent by April 1 of the year  in
which  the contract expires, unless the contract specifically
provides otherwise.  Failure  to  do  so  will  automatically
extend  the contract for 1 additional year. The provisions of
this  paragraph  shall  not  apply  to  a  district  under  a
Financial  Oversight  Panel  pursuant  to  Section  1A-8  for
violating a financial plan.
    Notice of intent not to renew a contract when given by  a
board  must  be  in  writing,  stating  the  specific  reason
therefor.   Within  10  days  after receipt of such notice of
intent not  to  renew  a  contract,  the  superintendent  may
request  a  closed  session hearing on the dismissal.  At the
hearing the superintendent has the  privilege  of  presenting
evidence,   witnesses   and   defenses  on  the  grounds  for
dismissal. The provisions of this paragraph shall  not  apply
to  a  district under a Financial Oversight Panel pursuant to
Section 1A-8 for violating a financial plan.
    By accepting the terms  of  a  multi-year  contract,  the
superintendent  waives  all  rights  granted him or her under
Sections 24-11 through 24-16 of this Act for the duration  of
his or her employment as superintendent in the district.
(Source: P.A. 89-572, eff. 7-30-96.)

    (105 ILCS 5/10-23.8a) (from Ch. 122, par. 10-23.8a)
    Sec.   10-23.8a.  Principal   and   other   administrator
contracts under multi-year contract. After the effective date
of  this  amendatory  Act  of  1997  and  the  expiration  of
contracts  in effect on the effective date of this amendatory
Act, school districts may only To employ principals and other
school administrators under either a contract  for  a  period
not  to  exceed  one  year  or a principal under a multi-year
performance-based contract for  a  period  not  to  exceed  5
years.  No  such contract can be offered or accepted for less
than or more than 3 years, except for  a  person  serving  as
principal  for  the first time in Illinois. In such case, the
initial contract shall be for a 2 year period. Such  contract
may  be  discontinued  at any time by mutual agreement of the
contracting parties, or may be extended for an  additional  3
years at the end of any year.
    Performance-based  contracts  shall  be linked to student
performance and  academic  improvement  attributable  to  the
responsibilities    and    duties   of   the   principal   or
administrator.   No  performance-based  contract   shall   be
extended  or  rolled-over  prior  to its scheduled expiration
unless all the performance and improvement goals contained in
the contract have been met.  Each performance-based  contract
shall include the goals and indicators of student performance
and  academic  improvement  determined  and used by the local
school board to measure the performance and effectiveness  of
the   principal   or   other  administrator  and  such  other
information  as  the  local  school  board   may   determine.
           The  contract year is July 1 through the following
June 30, unless the contract specifically provides otherwise.
Notice of intent not to renew the contract must be  given  by
the  board  or  by  the principal at least 90 days before the
contract expires. Failure to do so will automatically  extend
the  contract  for  1 additional year. If offered by a school
board, each individual principal shall  have  the  option  to
accept  or  refuse  a  multi-year contract. The provisions of
this  paragraph  shall  not  apply  to  a  district  under  a
Financial  Oversight  Panel  pursuant  to  Section  1A-8  for
violating a financial plan.
    By accepting the terms  of  a  multi-year  contract,  the
principal  or  administrator waives all rights granted him or
her under Sections 24-11 through 24-16 of this  Act  for  the
duration  of  his  or  her  employment  as  a principal or an
administrator in the district.
(Source: P.A. 89-572, eff. 7-30-96.)

    (105 ILCS 5/17-1.5 new)
    Sec. 17-1.5.  Limitation of administrative costs.
    (a)  It is the  purpose  of  this  Section  to  establish
limitations  on  the growth of administrative expenditures in
order to maximize the proportion of school district resources
available   for   the   instructional    program,    building
maintenance,  and  safety  services  for the students of each
district.
    (b)  Definitions.  For the purposes of this Section:
    "Administrative    expenditures"    mean    the    annual
expenditures of school  districts  properly  attributable  to
expenditure functions defined by the rules of the State Board
of  Education  as:  2310  (Board of Education Services); 2320
(Executive Administration  Services);    2330  (Special  Area
Administration  Services);  2490  (Other  Support  Services -
School Administration); 2510 (Direction of  Business  Support
Services);  2520 (Fiscal Services); 2570 (Internal Services);
2600  (Total  Support   Services   -   Central);    and   all
expenditures  properly  attributable  for  the  Service  Area
Direction  of  functions  2540 (Operations and Maintenance of
Plant Services), 2550 (Pupil  Transportation  Services),  and
2560 (Food Services).
    "Instructional expenditures" mean the annual expenditures
of  school  districts  properly  attributable  to expenditure
functions  defined  by  the  rules  of  the  State  Board  of
Education  as:  1100  (Regular   Programs);   1200   (Special
Education   Programs);  1250  (Educational  Deprived/Remedial
Programs); 1300 (Adult/Continuing Education  Programs);  1400
(Vocational  Programs); 1500 (Interscholastic Programs); 1600
(Summer School  Programs);  1650  (Gifted    Programs);  1800
(Bilingual  Programs);  and  1900  (Truants'  Alternative and
Optional Programs).
    "School district" means all  school  districts  having  a
population of less than 500,000.
    (c)  For  the  1998-99  school  year and each school year
thereafter, each school district  shall  undertake  budgetary
and  expenditure  control  actions  so  that  the increase in
administrative expenditures for that  school  year  over  the
prior  school  year  do  not  exceed  the lesser of 5% or the
percentage increase in instructional  expenditures  for  that
school  year  over  the  prior school year.  School districts
with  administrative  expenditures  per  pupil  in  the  25th
percentile and below for all districts of the same  type,  as
defined  by  the  State  Board  of  Education,  may waive the
limitation imposed under this Section for any year  with  the
affirmative vote of at least two-thirds of the members of the
school board of the district.
    (d)  School  districts shall file with the State Board of
Education by October 15, 1998  and    by  each  October  15th
thereafter  a  one-page  report  that  lists  (i)  the actual
administrative  expenditures  and  the  actual  instructional
expenditures for the prior year from the  district's  audited
Annual    Financial    Report,   and   (ii)   the   projected
administrative expenditures and the  projected  instructional
expenditures  for the current year from the budget adopted by
the school board pursuant to Section 17-1 of this  Code.   If
the report and information required under this subsection (d)
is not provided by the school district in a timely manner, or
is   initially   or  subsequently  determined  by  the  State
Superintendent of Education to be incomplete  or  inaccurate,
the State Superintendent shall notify the district in writing
of reporting deficiencies.  The school district shall, within
60  days  of  the  notice, address the reporting deficiencies
identified.  If the State Superintendent does not  receive  a
satisfactory  response to these reporting deficiencies within
these 60 days, the next payment of general State aid due  the
district  under Section 18-8 of this Code, and all subsequent
payments, may be withheld until the  deficiencies  have  been
addressed.
    (e)  If the State Superintendent determines that a school
district   has  failed  to  comply  with  the  administrative
expenditure limitation imposed  in  subsection  (c)  of  this
Section  by  adopting a budget in violation of the limitation
or by having actual administrative expenditures for the prior
year in excess of the limitation,  the  State  Superintendent
shall  notify  the  district  of the violation and direct the
district  to  undertake  corrective  action  to   bring   the
district's  budget  into  compliance  with the administrative
expenditure limitation.  The district shall, within  60  days
of  the  notice,  provide  adequate  assurance  to  the State
Superintendent that appropriate corrective actions have  been
or  will be taken.  If the district fails to provide adequate
assurance or fails  to  undertake  the  necessary  corrective
actions, the State Superintendent may withhold all subsequent
payments  of general State aid due the district under Section
18-8 of this Code until the  assurance  is  provided  or  the
corrective actions taken.
    (f)  The  State  Superintendent shall publish a list each
year of the school  districts  that  violate  the  limitation
imposed  by  subsection (c) of this Section.  The State Board
of Education may recommend to the General  Assembly  and  the
Governor  any  additional  sanctions or remedial actions that
they determine necessary to  deter  non-compliance  with  the
limitation.

    (105 ILCS 5/18-4.3) (from Ch. 122, par. 18-4.3)
    Sec.  18-4.3.   Summer  school  grants.   Grants shall be
determined for pupil attendance in summer  schools  conducted
under Sections 10-22.33A and 34-18 and approved under Section
2-3.25 in the following manner.
    The  amount  of  grant  for each accredited summer school
attendance pupil shall be  obtained  by  dividing  the  total
amount of apportionments determined under subsections (1) and
(2)  of  Section 18-8 or Section 18-8.05 by the actual number
of  pupils  in  average  daily  attendance  used   for   such
apportionments.    The   number  of  credited  summer  school
attendance pupils shall be determined (a) by  counting  clock
hours  of  class  instruction  by pupils enrolled in grades 1
through 12 in approved courses conducted at  least  60  clock
hours in summer sessions; (b) by dividing such total of clock
hours  of  class instruction by 4 to produce days of credited
pupil attendance; (c) by dividing such days of credited pupil
attendance by the actual number of days in the  regular  term
as  used  in  computation  in  the  general  apportionment in
Section 18-8; and (d) by multiplying by 1.25.
    The amount of the  grant  for  a  summer  school  program
approved   by  the  State  Superintendent  of  Education  for
children with disabilities, as defined  in  Sections  14-1.02
through  14-1.07, shall be determined in the manner contained
above except that average daily membership shall be  utilized
in lieu of average daily attendance.
    In  the  case  of an apportionment based on summer school
attendance or membership pupils, the claim therefor shall  be
presented  as a separate claim for the particular school year
in  which such summer school  session  ends.   On  or  before
October  15  of each year the superintendent of each eligible
school district shall certify to the regional  superintendent
the  claim of the district for the summer session just ended.
Failure on the part of the school board to so  certify  shall
constitute  a  forfeiture  of its right to such payment.  The
regional  superintendent   shall   certify   to   the   State
Superintendent  of  Education  no  later  than November 1 the
regional report of  claims  for  summer  school.   The  State
Superintendent of Education shall transmit to the Comptroller
no later than December 15th of each year vouchers for payment
of amounts due school districts for summer school.  The State
Superintendent  of  Education shall direct the Comptroller to
draw his warrants for payments thereof by  the  30th  day  of
December.   If the money appropriated by the General Assembly
for  such  purpose  for any year is insufficient, it shall be
apportioned on the basis of claims approved.
    However, notwithstanding the  foregoing  provisions,  for
each  fiscal  year  the  money  appropriated  by  the General
Assembly for the purposes of this Section shall only be  used
for  grants  for  approved  summer  school programs for those
children  with  disabilities  served  pursuant  to   Sections
14-7.02 and 14-7.02a of the School Code.
(Source:   P.A.  88-9;  88-641,  eff.  9-9-94;  89-397,  eff.
8-20-95.)

    (105 ILCS 5/18-7) (from Ch. 122, par. 18-7)
    Sec. 18-7. Payments for  benefit  of  teacher  retirement
systems.
    (a)  In  each  fiscal  year through fiscal year 1998, the
State Board of  Education  shall  distribute  to  the  Public
School  Teachers'  Pension and Retirement Fund of Chicago the
sum, if any, appropriated  for  that  fiscal  year  from  the
Common School Fund for the benefit of the Retirement Fund, in
the  manner  provided  in  this Section, the Illinois Pension
Code, the State Finance Act, and other applicable  provisions
of  law.   In  making  this  distribution, the State Board of
Education shall present vouchers to the State Comptroller  on
the  10th  and  20th  days of each month beginning in August.
Each  payment  shall  equal  1/24  of   the   annual   amount
appropriated  in the months of August through May and 1/12 of
the annual amount appropriated in June.
    Beginning in fiscal year 1999, the State contributions to
the Public School Teachers' Pension and  Retirement  Fund  of
Chicago  shall  be appropriated directly to the Fund and paid
in vouchers submitted by the board of trustees of  the  Fund.
Vouchers submitted under this subsection shall be paid by the
State  Comptroller  and  Treasurer by warrants drawn on funds
appropriated to  the  Public  School  Teachers'  Pension  and
Retirement  Fund of Chicago State Board of Education for that
purpose.
    (b)  The State Board of Education shall, in State  fiscal
year  1995,  pay  to  the  Teachers' Retirement System of the
State of Illinois the amount appropriated  for  the  required
State  contribution  to the System for that fiscal year.  The
State Board of Education shall present vouchers to the  State
Comptroller  for  this  purpose  on the 10th and 20th days of
each month of the fiscal year, other than the month of  July.
Each  payment in the months of August through May shall equal
1/24 of the amount appropriated for that  fiscal  year;  each
payment  in  the month of June shall equal 1/12 of the amount
appropriated for that fiscal year.
    Vouchers submitted under this subsection shall be paid by
the State Comptroller and  Treasurer  by  warrants  drawn  on
funds  appropriated  to the State Board of Education for that
purpose.
    (c)  Beginning in State fiscal year  1996,  the  required
State contributions to the Teachers' Retirement System of the
State  of  Illinois  shall  be  appropriated  directly to the
System and  paid  on  vouchers  submitted  by  the  board  of
trustees  of  the  retirement  system, as provided in Section
16-158 of the Illinois Pension Code.  These vouchers shall be
paid by the State Comptroller and Treasurer by warrants drawn
on funds appropriated  to  the  retirement  system  for  that
purpose.
(Source: P.A. 88-593, eff. 8-22-94.)

    (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
    Sec.   18-8.  Basis   for   apportionment  to  districts,
laboratory schools and alternative schools.
    A.  The amounts to be apportioned for school years  prior
to  the  1998-1999  school  year shall be determined for each
educational service region by school districts, as follows:
    1.  General Provisions.
    (a)  In the computation of the amounts to be apportioned,
the average daily  attendance  of  all  pupils  in  grades  9
through  12  shall  be multiplied by 1.25.  The average daily
attendance  of  all  pupils  in  grades  7  and  8  shall  be
multiplied by 1.05.
    (b)  The  actual  number  of  pupils  in  average   daily
attendance shall be computed in a one-teacher school district
by  dividing  the total aggregate days of pupil attendance by
the actual number of days school is in session but  not  more
than  30  such  pupils  shall  be accredited for such type of
district; and in districts of  2  or  more  teachers,  or  in
districts  where  records  of  attendance are kept by session
teachers, by taking the sum of the respective averages of the
units composing the group.
    (c)  Pupils in average daily attendance shall be computed
upon the average of the best 3 months of pupils attendance of
the current school year except  as  district  claims  may  be
later  amended  as  provided  hereinafter  in  this  Section.
However,   for   any   school   district  maintaining  grades
kindergarten through 12, the "average daily attendance" shall
be computed on the average of the best  3  months  of  pupils
attendance of the current year in grades kindergarten through
8,  added  together  with the average of the best 3 months of
pupils attendance of the current year in grades 9 through 12,
except as district claims may be later amended as provided in
this Section.  Days of attendance shall be  kept  by  regular
calendar  months,  except  any  days  of attendance in August
shall be added to the month of  September  and  any  days  of
attendance  in  June  shall  be  added  to  the month of May.
Except  as  otherwise  provided  in  this  Section,  days  of
attendance by pupils shall be counted only  for  sessions  of
not  less  than  5  clock  hours of school work per day under
direct supervision of: (i)  teachers,  or  (ii)  non-teaching
personnel   or   volunteer   personnel   when   engaging   in
non-teaching   duties  and  supervising  in  those  instances
specified in subsection (a) of Section 10-22.34 and paragraph
10 of Section 34-18, with pupils of legal school age  and  in
kindergarten and grades 1 through 12.
    (d)  Pupils  regularly  enrolled  in  a public school for
only a part of the school day may be counted on the basis  of
1/6  day for every class hour of instruction of 40 minutes or
more attended pursuant to such enrollment.
    (e)  Days of attendance may be less than 5 clock hours on
the opening and closing of the  school  term,  and  upon  the
first  day  of pupil attendance, if preceded by a day or days
utilized as an institute or teachers' workshop.
    (f)  A session of 4 or more clock hours may be counted as
a day  of  attendance  upon  certification  by  the  regional
superintendent,  and  approved by the State Superintendent of
Education to the extent that the district has been forced  to
use daily multiple sessions.
    (g)  A session of 3 or more clock hours may be counted as
a  day of attendance (1) when the remainder of the school day
or at least 2 hours in the evening of that  day  is  utilized
for  an  in-service  training  program  for teachers, up to a
maximum of 5 days per school year of which  a  maximum  of  4
days   of   such  5  days  may  be  used  for  parent-teacher
conferences,  provided  a  district  conducts  an  in-service
training program for teachers which has been approved by  the
State  Superintendent  of  Education;  or,  in lieu of 4 such
days, 2 full days may be used, in which event each  such  day
may  be  counted as a day of attendance; and (2) when days in
addition to those provided in item (1)  are  scheduled  by  a
school  pursuant to its school improvement plan adopted under
Article 34 or its revised or amended school improvement  plan
adopted under Article 2, provided that (i) such sessions of 3
or  more  clock  hours  are  scheduled  to  occur  at regular
intervals, (ii) the remainder of the  school  days  in  which
such  sessions  occur  are  utilized  for in-service training
programs or other staff development activities for  teachers,
and (iii) a sufficient number of minutes of school work under
the  direct  supervision  of teachers are added to the school
days between such regularly scheduled sessions to  accumulate
not less than the number of minutes by which such sessions of
3  or  more clock hours fall short of 5 clock hours. Any full
days used for the purposes of this  paragraph  shall  not  be
considered  for  computing  average  daily  attendance.  Days
scheduled for in-service training programs, staff development
activities, or parent-teacher conferences  may  be  scheduled
separately   for   different   grade   levels  and  different
attendance centers of the district.
    (h)  A session of not less than one clock  hour  teaching
of  hospitalized  or homebound pupils on-site or by telephone
to the classroom may be counted as  1/2  day  of  attendance,
however  these  pupils  must receive 4 or more clock hours of
instruction to be counted for a full day of attendance.
    (i)  A session of at least 4 clock hours may  be  counted
as  a day of attendance for first grade pupils, and pupils in
full day kindergartens, and a session of 2 or more hours  may
be   counted   as   1/2   day  of  attendance  by  pupils  in
kindergartens which provide only 1/2 day of attendance.
    (j)  For children with disabilities who are below the age
of 6 years and who cannot attend  two  or  more  clock  hours
because  of  their disability or immaturity, a session of not
less than one clock  hour  may  be  counted  as  1/2  day  of
attendance; however for such children whose educational needs
so  require a session of 4 or more clock hours may be counted
as a full day of attendance.
    (k)  A recognized kindergarten which  provides  for  only
1/2  day of attendance by each pupil shall not have more than
1/2 day  of  attendance  counted  in  any  1  day.   However,
kindergartens  may  count  2  1/2 days of attendance in any 5
consecutive school  days.   Where  a  pupil  attends  such  a
kindergarten  for  2  half  days  on any one school day, such
pupil shall have the following  day  as  a  day  absent  from
school,  unless  the  school  district  obtains permission in
writing  from  the   State   Superintendent   of   Education.
Attendance  at  kindergartens which provide for a full day of
attendance by  each  pupil  shall  be  counted  the  same  as
attendance  by  first  grade  pupils.  Only the first year of
attendance in one kindergarten shall  be  counted  except  in
case  of children who entered the kindergarten in their fifth
year whose educational development requires a second year  of
kindergarten as determined under the rules and regulations of
the State Board of Education.
    (l)  Days  of  attendance  by  tuition  pupils  shall  be
accredited  only  to  the districts that pay the tuition to a
recognized school.
    (m)  The greater  of  the  immediately  preceding  year's
weighted  average  daily  attendance  or  the  average of the
weighted  average  daily  attendance   of   the   immediately
preceding year and the previous 2 years shall be used.
    For any school year beginning July 1, 1986 or thereafter,
if  the  weighted  average  daily attendance in either grades
kindergarten through 8 or grades 9 through 12 of  a  district
as  computed  for  the  first  calendar  month of the current
school year exceeds by more than 5%, but  not  less  than  25
pupils,  the district's weighted average daily attendance for
the first calendar month of the  immediately  preceding  year
in,  respectively,  grades kindergarten through 8 or grades 9
through 12, a supplementary payment  shall  be  made  to  the
district  equal  to  the  difference in the amount of aid the
district would be paid under this Section using the  weighted
average  daily attendance in the district as computed for the
first calendar month of  the  current  school  year  and  the
amount  of  aid the district would be paid using the weighted
average daily  attendance  in  the  district  for  the  first
calendar  month  of  the  immediately  preceding  year.  Such
supplementary State aid payment shall be paid to the district
as provided  in  Section  18-8.4  and  shall  be  treated  as
separate  from  all  other  payments  made  pursuant  to this
Section 18-8.
    (n)  The number  of  low  income  eligible  pupils  in  a
district  shall result in an increase in the weighted average
daily attendance calculated as follows:  The  number  of  low
income pupils shall increase the weighted ADA by .53 for each
student  adjusted  by  dividing  the  percent  of  low income
eligible pupils in the district by the ratio of eligible  low
income  pupils  in  the  State to the best 3 months' weighted
average daily attendance in the State.  In no  case  may  the
adjustment under this paragraph result in a greater weighting
than  .625  for each eligible low income student.  The number
of low income eligible pupils in  a  district  shall  be  the
low-income  eligible  count  from the most recently available
federal census and  the  weighted  average  daily  attendance
shall  be  calculated in accordance with the other provisions
of this paragraph.
    (o)  Any school district which fails for any given school
year to maintain school as required by law, or to maintain  a
recognized  school  is  not  eligible to file for such school
year any claim upon the  common  school  fund.   In  case  of
nonrecognition  of one or more attendance centers in a school
district otherwise operating recognized schools, the claim of
the district shall be reduced in  the  proportion  which  the
average  daily attendance in the attendance center or centers
bear to the average daily attendance in the school  district.
A "recognized school" means any public school which meets the
standards  as  established for recognition by the State Board
of Education.  A school district  or  attendance  center  not
having  recognition  status  at  the  end of a school term is
entitled to receive State aid payments due upon a legal claim
which was filed while it was recognized.
    (p)  School district claims filed under this Section  are
subject  to  Sections 18-9, 18-10 and 18-12, except as herein
otherwise provided.
    (q)  The State Board of Education shall secure  from  the
Department  of  Revenue the value as equalized or assessed by
the Department of Revenue of all taxable  property  of  every
school district together with the applicable tax rate used in
extending taxes for the funds of the district as of September
30 of the previous year.  The Department of Revenue shall add
to  the  equalized  assessed value of all taxable property of
each school district situated entirely or partially within  a
county  with 2,000,000 or more inhabitants an amount equal to
the total amount by which the  homestead  exemptions  allowed
under Sections 15-170 and 15-175 of the Property Tax Code for
real  property  situated  in that school district exceeds the
total amount that would have  been  allowed  in  that  school
district  as homestead exemptions under those Sections if the
maximum reduction under Section 15-170 of  the  Property  Tax
Code  was  $2,000  and  the  maximum  reduction under Section
15-175 of the Property Tax Code was $3,500.  The county clerk
of any  county  with  2,000,000  or  more  inhabitants  shall
annually  calculate  and  certify  to the Department for each
school district all homestead exemption amounts  required  by
this amendatory Act of 1992.  In a new district which has not
had  any  tax  rates yet determined for extension of taxes, a
leveled uniform rate shall be computed from the latest amount
of the fund taxes extended on the several areas  within  such
new district.
    (r)  If  a  school  district  operates a full year school
under Section 10-19.1, the general state aid  to  the  school
district  shall be determined by the State Board of Education
in accordance with this Section as near as may be applicable.
    2.  New  or  recomputed  claim.  The  general  State  aid
entitlement for a newly created school district or a district
which has annexed an entire school district shall be computed
using  attendance,  compensatory  pupil   counts,   equalized
assessed  valuation,  and tax rate data which would have been
used had the district been in existence for 3 years.  General
State  aid  entitlements  shall  not  be recomputed except as
permitted herein.
    3.  Impaction.   Impaction  payments  shall  be  made  as
provided for in Section 18-4.2.
    4.  Summer school.  Summer school payments shall be  made
as provided in Section 18-4.3.
    5.  Computation  of  State aid.  The State grant shall be
determined as follows:
    (a)  The State shall guarantee the amount of money that a
district's operating tax rate as limited in other Sections of
this Act would produce if every district  maintaining  grades
kindergarten  through  12 had an equalized assessed valuation
equal to $74,791  per  weighted  ADA  pupil;  every  district
maintaining  grades  kindergarten  through 8 had an equalized
assessed valuation of $108,644 per weighted  ADA  pupil;  and
every  district  maintaining  grades  9  through  12  had  an
equalized  assessed  valuation  of  $187,657 per weighted ADA
pupil.  The  State  Board  of  Education  shall  adjust   the
equalized   assessed   valuation   amounts   stated  in  this
paragraph, if necessary, to conform  to  the  amount  of  the
appropriation approved for any fiscal year.
    (b)  The  operating  tax rate to be used shall consist of
all district taxes extended for all purposes except community
college educational purposes for the payment of tuition under
Section 6-1 of the Public Community  College  Act,  Bond  and
Interest,   Summer  School,  Rent,  Capital  Improvement  and
Vocational Education Building.  Any  district  may  elect  to
exclude  Transportation from the calculation of its operating
tax rate.  Districts  may  include  taxes  extended  for  the
payment  of  principal and interest on bonds issued under the
provisions of Sections 17-2.11a and 20-2 at a  rate  of  .05%
per  year  for  each  purpose  or  the  actual rate extended,
whichever is less.
    (c)  For calculation of aid under  this  Act  a  district
shall  use the combined authorized tax rates of all funds not
exempt in (b) above, not to exceed 2.76% of the value of  all
its   taxable  property  as  equalized  or  assessed  by  the
Department  of  Revenue  for  districts  maintaining   grades
kindergarten  through  12;  1.90%  of  the  value  of all its
taxable property as equalized or assessed by  the  Department
of  Revenue  for  districts  maintaining  grades kindergarten
through 8 only;  1.10%  of  the  value  of  all  its  taxable
property  as  equalized  or  assessed  by  the  Department of
Revenue for districts maintaining grades 9 through  12  only.
A  district may, however, as provided in Article 17, increase
its operating tax rate above the  maximum  rate  provided  in
this  subsection without affecting the amount of State aid to
which it is entitled under this Act.
    (d) (1)  For districts  maintaining  grades  kindergarten
through  12  with  an  operating  tax  rate  as  described in
subsections 5(b) and (c) of less than  2.18%,  and  districts
maintaining  grades  kindergarten through 8 with an operating
tax rate of less than 1.28%, State aid shall be  computed  by
multiplying  the  difference between the guaranteed equalized
assessed valuation per weighted ADA pupil in subsection  5(a)
and  the  equalized assessed valuation per weighted ADA pupil
in the district by the operating tax rate, multiplied by  the
weighted  average daily attendance of the district; provided,
however, that for the 1989-1990 school year  only,  a  school
district  maintaining  grades  kindergarten  through  8 whose
operating tax rate with reference to which its general  State
aid  for the 1989-1990 school year is determined is less than
1.28% and more than 1.090%, and which had  an  operating  tax
rate  of  1.28% or more for the previous year, shall have its
general State aid computed according  to  the  provisions  of
subsection 5(d)(2).
    (2)  For   districts   maintaining   grades  kindergarten
through 12  with  an  operating  tax  rate  as  described  in
subsection  5(b)  and  (c)  of 2.18% and above, the State aid
shall be computed as provided in subsection (d)  (1)  but  as
though  the  district  had an operating tax rate of 2.76%; in
K-8 districts with an operating tax rate of 1.28% and  above,
the State aid shall be computed as provided in subsection (d)
(1)  but  as though the district had an operating tax rate of
1.90%; and in 9-12 districts, the State aid shall be computed
by  multiplying  the  difference   between   the   guaranteed
equalized  assessed  valuation  per  weighted  average  daily
attendance   pupil  in  subsection  5(a)  and  the  equalized
assessed valuation  per  weighted  average  daily  attendance
pupil  in  the  district  by  the  operating tax rate, not to
exceed  1.10%,  multiplied  by  the  weighted  average  daily
attendance of the district.  State  aid  computed  under  the
provisions  of  this  subsection  (d) (2) shall be treated as
separate from  all  other  payments  made  pursuant  to  this
Section.   The  State  Comptroller  and State Treasurer shall
transfer from the General Revenue Fund to the  Common  School
Fund  the amounts necessary to permit these claims to be paid
in equal installments along with  other  State  aid  payments
remaining to be made for the 1983-1984 school year under this
Section.
    (3)  For   any   school  district  whose  1995  equalized
assessed  valuation  is  at  least  6%  less  than  its  1994
equalized assessed valuation as the result of a reduction  in
the  equalized  assessed  valuation  of  the taxable property
within such  district  of  any  one  taxpayer  whose  taxable
property  within  the  district has a 1994 equalized assessed
valuation constituting at least 20%  of  the  1994  equalized
assessed   valuation  of  all  taxable  property  within  the
district, the 1996-97 State aid of  such  district  shall  be
computed using its 1995 equalized assessed valuation.
    (4)  For   any   school  district  whose  1988  equalized
assessed valuation is 55%  or  less  of  its  1981  equalized
assessed  valuation,  the  1990-91 State aid of such district
shall be computed by multiplying the 1988 equalized  assessed
valuation  by a factor of .8.  Any such school district which
is reorganized effective for the 1991-92  school  year  shall
use the formula provided in this subparagraph for purposes of
the  calculation  made  pursuant  to  subsection  (m) of this
Section.
    (e)  The amount of State aid shall be computed under  the
provisions  of  subsections  5(a)  through  5(d) provided the
equalized assessed valuation per weighted ADA pupil  is  less
than  .87 of the amounts in subsection 5(a). If the equalized
assessed valuation per weighted ADA  pupil  is  equal  to  or
greater than .87 of the amounts in subsection 5(a), the State
aid  shall  be  computed  under  the provisions of subsection
5(f).
    (f)  If the equalized assessed valuation per weighted ADA
pupil is equal to or greater  than  .87  of  the  amounts  in
subsection  5(a),  the State aid per weighted ADA pupil shall
be computed by multiplying  the  product  of  .13  times  the
maximum  per  pupil  amount  computed under the provisions of
subsections 5(a) through 5(d)  by  an  amount  equal  to  the
quotient  of  .87  times the equalized assessed valuation per
weighted ADA pupil  in  subsection  5(a)  for  that  type  of
district  divided  by  the  district  equalized valuation per
weighted ADA pupil except  in  no  case  shall  the  district
receive  State  aid  per  weighted ADA pupil of less than .07
times  the  maximum  per  pupil  amount  computed  under  the
provisions of subsections 5(a) through 5(d).
    (g)  In addition  to  the  above  grants,  summer  school
grants  shall  be made based upon the calculation as provided
in subsection 4 of this Section.
    (h)  The board of  any  district  receiving  any  of  the
grants  provided for in this Section may apply those funds to
any fund so received for which that board  is  authorized  to
make expenditures by law.
    (i) (1) (a)  In  school  districts  with an average daily
attendance of 50,000 or more, the amount  which  is  provided
under subsection 1(n) of this Section by the application of a
base  Chapter 1 weighting factor of .375 shall be distributed
to the attendance centers within the district  in  proportion
to  the  number  of pupils enrolled at each attendance center
who are eligible to receive free or reduced-price lunches  or
breakfasts  under the federal Child Nutrition Act of 1966 and
under the National School Lunch Act  during  the  immediately
preceding  school  year.   The  amount  of State aid provided
under subsection 1(n) of this Section by the  application  of
the  Chapter  1  weighting  factor in excess of .375 shall be
distributed to the attendance centers within the district  in
proportion to the total enrollment at each attendance center.
Beginning  with  school  year  1989-90,  and each school year
thereafter, all funds provided under subsection 1 (n) of this
Section by the application of the Chapter 1 weighting  factor
which  are  in  excess of the level of non-targeted Chapter 1
funds  in  school  year  1988-89  shall  be  distributed   to
attendance  centers,  and  only to attendance centers, within
the district in proportion to the number of  pupils  enrolled
at each attendance center who are eligible to receive free or
reduced  price  lunches or breakfasts under the Federal Child
Nutrition Act and under the National School Lunch Act  during
the  immediately  preceding school year.  Beginning in school
year 1989-90, 25% of the previously  non-targeted  Chapter  1
funds  as  established  for school year 1988-89 shall also be
distributed to the attendance centers, and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive free or reduced price lunches or breakfasts under the
Federal  Child  Nutrition  Act  and under the National School
Lunch Act during the immediately preceding  school  year;  in
school  year  1990-91,  50%  of  the  previously non-targeted
Chapter 1 funds as established for school year 1988-89  shall
be  distributed to attendance centers, and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive  such  free  or  reduced  price lunches or breakfasts
during the immediately preceding school year; in school  year
1991-92,  75%  of the previously non-targeted Chapter 1 funds
as established for school year 1988-89 shall  be  distributed
to attendance centers, and only to attendance centers, in the
district  in  proportion  to the number of pupils enrolled at
each attendance center who are eligible to receive such  free
or reduced price lunches or breakfasts during the immediately
preceding school year; in school year 1992-93 and thereafter,
all  funds provided under subsection 1 (n) of this Section by
the application of the Chapter 1 weighting  factor  shall  be
distributed  to  attendance  centers,  and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive free or reduced price lunches or breakfasts under the
Federal  Child  Nutrition  Act  and under the National School
Lunch Act  during  the  immediately  preceding  school  year;
provided,  however,  that  the distribution formula in effect
beginning with school year 1989-90 shall not be applicable to
such portion of State aid provided under subsection 1 (n)  of
this  Section  by  the application of the Chapter 1 weighting
formula as is  set  aside  and  appropriated  by  the  school
district  for the purpose of providing desegregation programs
and related transportation to students (which  portion  shall
not  exceed  5%  of  the  total  amount of State aid which is
provided  under  subsection  1  (n)  of   this   Section   by
application  of  the  Chapter  1  weighting formula), and the
relevant  percentages  shall  be  applied  to  the  remaining
portion  of  such  State  aid.   The  distribution  of  these
portions  of  general  State  aid  among  attendance  centers
according to these requirements shall not be compensated  for
or  contravened  by  adjustments  of the total of other funds
appropriated to any attendance centers.   (b)  The  Board  of
Education  shall  utilize funding from one or several sources
in order to fully implement this provision annually prior  to
the  opening  of  school.  The Board of Education shall apply
savings from  reduced  administrative  costs  required  under
Section  34-43.1  and growth in non-Chapter 1 State and local
funds to assure that all attendance centers  receive  funding
to replace losses due to redistribution of Chapter 1 funding.
The distribution formula and funding to replace losses due to
the  distribution formula shall occur, in full, using any and
all sources available, including, if necessary, revenue  from
administrative  reductions  beyond  those required in Section
34-43.1, in order to provide the necessary funds.   (c)  Each
attendance  center shall be provided by the school district a
distribution of noncategorical funds  and  other  categorical
funds  to which an attendance center is entitled under law in
order that the State  aid  provided  by  application  of  the
Chapter  1  weighting  factor  and required to be distributed
among attendance centers according  to  the  requirements  of
this   paragraph   supplements   rather  than  supplants  the
noncategorical funds and other categorical funds provided  by
the    school    district    to   the   attendance   centers.
Notwithstanding the foregoing provisions of  this  subsection
5(i)(1)  or any other law to the contrary, beginning with the
1995-1996 school year and for each  school  year  thereafter,
the  board  of  a  school district to which the provisions of
this subsection  apply  shall  be  required  to  allocate  or
provide  to  attendance  centers  of the district in any such
school year, from the State aid  provided  for  the  district
under  this Section by application of the Chapter 1 weighting
factor, an aggregate amount of not less than $261,000,000  of
State  Chapter  1  funds.  Any  State Chapter 1 funds that by
reason of the provisions of this paragraph are  not  required
to  be  allocated  and  provided to attendance centers may be
used and appropriated by the board of the  district  for  any
lawful  school  purpose.    Chapter  1  funds  received by an
attendance  center  (except  those  funds   set   aside   for
desegregation   programs   and   related   transportation  to
students) shall be used on the schedule cited in this Section
at the attendance center at the discretion of  the  principal
and  local school council for programs to improve educational
opportunities at qualifying  schools  through  the  following
programs  and  services:  early  childhood education, reduced
class size or improved  adult  to  student  classroom  ratio,
enrichment    programs,   remedial   assistance,   attendance
improvement and other educationally  beneficial  expenditures
which supplement the regular and basic programs as determined
by  the  State Board of Education.  Chapter 1 funds shall not
be expended for any political or lobbying purposes as defined
by board rule. (d) Each district subject to the provisions of
this paragraph shall submit an acceptable plan  t