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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the School
5Funding Reform Act of 2014.
 
6    Section 905. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and
16certified the economic development project area, each year
17after the date of the certification by the county clerk of the
18"total initial equalized assessed value" until economic
19development project costs and all municipal obligations
20financing economic development project costs have been paid,
21the ad valorem taxes, if any, arising from the levies upon the
22taxable real property in the economic development project area

 

 

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1by taxing districts and tax rates determined in the manner
2provided in subsection (b) of Section 6 of this Act shall be
3divided as follows:
4    (1) That portion of the taxes levied upon each taxable lot,
5block, tract or parcel of real property which is attributable
6to the lower of the current equalized assessed value or the
7initial equalized assessed value of each such taxable lot,
8block, tract, or parcel of real property existing at the time
9tax increment allocation financing was adopted, shall be
10allocated to and when collected shall be paid by the county
11collector to the respective affected taxing districts in the
12manner required by law in the absence of the adoption of tax
13increment allocation financing.
14    (2) That portion, if any, of those taxes which is
15attributable to the increase in the current equalized assessed
16valuation of each taxable lot, block, tract, or parcel of real
17property in the economic development project area, over and
18above the initial equalized assessed value of each property
19existing at the time tax increment allocation financing was
20adopted, shall be allocated to and when collected shall be paid
21to the municipal treasurer, who shall deposit those taxes into
22a special fund called the special tax allocation fund of the
23municipality for the purpose of paying economic development
24project costs and obligations incurred in the payment thereof.
25    The municipality, by an ordinance adopting tax increment
26allocation financing, may pledge the funds in and to be

 

 

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1deposited in the special tax allocation fund for the payment of
2obligations issued under this Act and for the payment of
3economic development project costs. No part of the current
4equalized assessed valuation of each property in the economic
5development project area attributable to any increase above the
6total initial equalized assessed value, of such properties
7shall be used in calculating the general State school aid
8formula, provided for in Section 18-8 of the School Code, or
9the primary State aid formula, provided for in Section 18-8.15
10of the School Code, until such time as all economic development
11projects costs have been paid as provided for in this Section.
12    When the economic development project costs, including
13without limitation all municipal obligations financing
14economic development project costs incurred under this Act,
15have been paid, all surplus funds then remaining in the special
16tax allocation fund shall be distributed by being paid by the
17municipal treasurer to the county collector, who shall
18immediately thereafter pay those funds to the taxing districts
19having taxable property in the economic development project
20area in the same manner and proportion as the most recent
21distribution by the county collector to those taxing districts
22of real property taxes from real property in the economic
23development project area.
24    Upon the payment of all economic development project costs,
25retirement of obligations and the distribution of any excess
26monies pursuant to this Section the municipality shall adopt an

 

 

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1ordinance dissolving the special tax allocation fund for the
2economic development project area, terminating the economic
3development project area, and terminating the use of tax
4increment allocation financing for the economic development
5project area. Thereafter the rates of the taxing districts
6shall be extended and taxes levied, collected and distributed
7in the manner applicable in the absence of the adoption of tax
8increment allocation financing.
9    Nothing in this Section shall be construed as relieving
10property in economic development project areas from being
11assessed as provided in the Property Tax Code, or as relieving
12owners of that property from paying a uniform rate of taxes, as
13required by Section 4 of Article IX of the Illinois
14Constitution.
15(Source: P.A. 98-463, eff. 8-16-13.)
 
16    Section 910. The State Finance Act is amended by changing
17Section 13.2 as follows:
 
18    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
19    Sec. 13.2. Transfers among line item appropriations.
20    (a) Transfers among line item appropriations from the same
21treasury fund for the objects specified in this Section may be
22made in the manner provided in this Section when the balance
23remaining in one or more such line item appropriations is
24insufficient for the purpose for which the appropriation was

 

 

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1made.
2    (a-1) No transfers may be made from one agency to another
3agency, nor may transfers be made from one institution of
4higher education to another institution of higher education
5except as provided by subsection (a-4).
6    (a-2) Except as otherwise provided in this Section,
7transfers may be made only among the objects of expenditure
8enumerated in this Section, except that no funds may be
9transferred from any appropriation for personal services, from
10any appropriation for State contributions to the State
11Employees' Retirement System, from any separate appropriation
12for employee retirement contributions paid by the employer, nor
13from any appropriation for State contribution for employee
14group insurance. During State fiscal year 2005, an agency may
15transfer amounts among its appropriations within the same
16treasury fund for personal services, employee retirement
17contributions paid by employer, and State Contributions to
18retirement systems; notwithstanding and in addition to the
19transfers authorized in subsection (c) of this Section, the
20fiscal year 2005 transfers authorized in this sentence may be
21made in an amount not to exceed 2% of the aggregate amount
22appropriated to an agency within the same treasury fund. During
23State fiscal year 2007, the Departments of Children and Family
24Services, Corrections, Human Services, and Juvenile Justice
25may transfer amounts among their respective appropriations
26within the same treasury fund for personal services, employee

 

 

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1retirement contributions paid by employer, and State
2contributions to retirement systems. During State fiscal year
32010, the Department of Transportation may transfer amounts
4among their respective appropriations within the same treasury
5fund for personal services, employee retirement contributions
6paid by employer, and State contributions to retirement
7systems. During State fiscal years 2010 and 2014 only, an
8agency may transfer amounts among its respective
9appropriations within the same treasury fund for personal
10services, employee retirement contributions paid by employer,
11and State contributions to retirement systems.
12Notwithstanding, and in addition to, the transfers authorized
13in subsection (c) of this Section, these transfers may be made
14in an amount not to exceed 2% of the aggregate amount
15appropriated to an agency within the same treasury fund.
16    (a-3) Further, if an agency receives a separate
17appropriation for employee retirement contributions paid by
18the employer, any transfer by that agency into an appropriation
19for personal services must be accompanied by a corresponding
20transfer into the appropriation for employee retirement
21contributions paid by the employer, in an amount sufficient to
22meet the employer share of the employee contributions required
23to be remitted to the retirement system.
24    (a-4) Long-Term Care Rebalancing. The Governor may
25designate amounts set aside for institutional services
26appropriated from the General Revenue Fund or any other State

 

 

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1fund that receives monies for long-term care services to be
2transferred to all State agencies responsible for the
3administration of community-based long-term care programs,
4including, but not limited to, community-based long-term care
5programs administered by the Department of Healthcare and
6Family Services, the Department of Human Services, and the
7Department on Aging, provided that the Director of Healthcare
8and Family Services first certifies that the amounts being
9transferred are necessary for the purpose of assisting persons
10in or at risk of being in institutional care to transition to
11community-based settings, including the financial data needed
12to prove the need for the transfer of funds. The total amounts
13transferred shall not exceed 4% in total of the amounts
14appropriated from the General Revenue Fund or any other State
15fund that receives monies for long-term care services for each
16fiscal year. A notice of the fund transfer must be made to the
17General Assembly and posted at a minimum on the Department of
18Healthcare and Family Services website, the Governor's Office
19of Management and Budget website, and any other website the
20Governor sees fit. These postings shall serve as notice to the
21General Assembly of the amounts to be transferred. Notice shall
22be given at least 30 days prior to transfer.
23    (b) In addition to the general transfer authority provided
24under subsection (c), the following agencies have the specific
25transfer authority granted in this subsection:
26    The Department of Healthcare and Family Services is

 

 

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1authorized to make transfers representing savings attributable
2to not increasing grants due to the births of additional
3children from line items for payments of cash grants to line
4items for payments for employment and social services for the
5purposes outlined in subsection (f) of Section 4-2 of the
6Illinois Public Aid Code.
7    The Department of Children and Family Services is
8authorized to make transfers not exceeding 2% of the aggregate
9amount appropriated to it within the same treasury fund for the
10following line items among these same line items: Foster Home
11and Specialized Foster Care and Prevention, Institutions and
12Group Homes and Prevention, and Purchase of Adoption and
13Guardianship Services.
14    The Department on Aging is authorized to make transfers not
15exceeding 2% of the aggregate amount appropriated to it within
16the same treasury fund for the following Community Care Program
17line items among these same line items: purchase of services
18covered by the Community Care Program and Comprehensive Case
19Coordination.
20    The State Treasurer is authorized to make transfers among
21line item appropriations from the Capital Litigation Trust
22Fund, with respect to costs incurred in fiscal years 2002 and
232003 only, when the balance remaining in one or more such line
24item appropriations is insufficient for the purpose for which
25the appropriation was made, provided that no such transfer may
26be made unless the amount transferred is no longer required for

 

 

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1the purpose for which that appropriation was made.
2    The State Board of Education is authorized to make
3transfers from line item appropriations within the same
4treasury fund for General State Aid, and General State Aid -
5Hold Harmless, Primary State Aid, and Hold Harmless State
6Funding, provided that no such transfer may be made unless the
7amount transferred is no longer required for the purpose for
8which that appropriation was made, to the line item
9appropriation for Transitional Assistance when the balance
10remaining in such line item appropriation is insufficient for
11the purpose for which the appropriation was made.
12    The State Board of Education is authorized to make
13transfers between the following line item appropriations
14within the same treasury fund: Disabled Student
15Services/Materials (Section 14-13.01 of the School Code),
16Disabled Student Transportation Reimbursement (Section
1714-13.01 of the School Code), Disabled Student Tuition -
18Private Tuition (Section 14-7.02 of the School Code),
19Extraordinary Special Education (Section 14-7.02b of the
20School Code), Reimbursement for Free Lunch/Breakfast Program,
21Summer School Payments (Section 18-4.3 of the School Code), and
22Transportation - Regular/Vocational Reimbursement (Section
2329-5 of the School Code). Such transfers shall be made only
24when the balance remaining in one or more such line item
25appropriations is insufficient for the purpose for which the
26appropriation was made and provided that no such transfer may

 

 

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1be made unless the amount transferred is no longer required for
2the purpose for which that appropriation was made.
3    The Department of Healthcare and Family Services is
4authorized to make transfers not exceeding 4% of the aggregate
5amount appropriated to it, within the same treasury fund, among
6the various line items appropriated for Medical Assistance.
7    (c) The sum of such transfers for an agency in a fiscal
8year shall not exceed 2% of the aggregate amount appropriated
9to it within the same treasury fund for the following objects:
10Personal Services; Extra Help; Student and Inmate
11Compensation; State Contributions to Retirement Systems; State
12Contributions to Social Security; State Contribution for
13Employee Group Insurance; Contractual Services; Travel;
14Commodities; Printing; Equipment; Electronic Data Processing;
15Operation of Automotive Equipment; Telecommunications
16Services; Travel and Allowance for Committed, Paroled and
17Discharged Prisoners; Library Books; Federal Matching Grants
18for Student Loans; Refunds; Workers' Compensation,
19Occupational Disease, and Tort Claims; and, in appropriations
20to institutions of higher education, Awards and Grants.
21Notwithstanding the above, any amounts appropriated for
22payment of workers' compensation claims to an agency to which
23the authority to evaluate, administer and pay such claims has
24been delegated by the Department of Central Management Services
25may be transferred to any other expenditure object where such
26amounts exceed the amount necessary for the payment of such

 

 

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1claims.
2    (c-1) Special provisions for State fiscal year 2003.
3Notwithstanding any other provision of this Section to the
4contrary, for State fiscal year 2003 only, transfers among line
5item appropriations to an agency from the same treasury fund
6may be made provided that the sum of such transfers for an
7agency in State fiscal year 2003 shall not exceed 3% of the
8aggregate amount appropriated to that State agency for State
9fiscal year 2003 for the following objects: personal services,
10except that no transfer may be approved which reduces the
11aggregate appropriations for personal services within an
12agency; extra help; student and inmate compensation; State
13contributions to retirement systems; State contributions to
14social security; State contributions for employee group
15insurance; contractual services; travel; commodities;
16printing; equipment; electronic data processing; operation of
17automotive equipment; telecommunications services; travel and
18allowance for committed, paroled, and discharged prisoners;
19library books; federal matching grants for student loans;
20refunds; workers' compensation, occupational disease, and tort
21claims; and, in appropriations to institutions of higher
22education, awards and grants.
23    (c-2) Special provisions for State fiscal year 2005.
24Notwithstanding subsections (a), (a-2), and (c), for State
25fiscal year 2005 only, transfers may be made among any line
26item appropriations from the same or any other treasury fund

 

 

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1for any objects or purposes, without limitation, when the
2balance remaining in one or more such line item appropriations
3is insufficient for the purpose for which the appropriation was
4made, provided that the sum of those transfers by a State
5agency shall not exceed 4% of the aggregate amount appropriated
6to that State agency for fiscal year 2005.
7    (d) Transfers among appropriations made to agencies of the
8Legislative and Judicial departments and to the
9constitutionally elected officers in the Executive branch
10require the approval of the officer authorized in Section 10 of
11this Act to approve and certify vouchers. Transfers among
12appropriations made to the University of Illinois, Southern
13Illinois University, Chicago State University, Eastern
14Illinois University, Governors State University, Illinois
15State University, Northeastern Illinois University, Northern
16Illinois University, Western Illinois University, the Illinois
17Mathematics and Science Academy and the Board of Higher
18Education require the approval of the Board of Higher Education
19and the Governor. Transfers among appropriations to all other
20agencies require the approval of the Governor.
21    The officer responsible for approval shall certify that the
22transfer is necessary to carry out the programs and purposes
23for which the appropriations were made by the General Assembly
24and shall transmit to the State Comptroller a certified copy of
25the approval which shall set forth the specific amounts
26transferred so that the Comptroller may change his records

 

 

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1accordingly. The Comptroller shall furnish the Governor with
2information copies of all transfers approved for agencies of
3the Legislative and Judicial departments and transfers
4approved by the constitutionally elected officials of the
5Executive branch other than the Governor, showing the amounts
6transferred and indicating the dates such changes were entered
7on the Comptroller's records.
8    (e) The State Board of Education, in consultation with the
9State Comptroller, may transfer line item appropriations for
10General State Aid or Primary State Aid between the Common
11School Fund and the Education Assistance Fund. With the advice
12and consent of the Governor's Office of Management and Budget,
13the State Board of Education, in consultation with the State
14Comptroller, may transfer line item appropriations between the
15General Revenue Fund and the Education Assistance Fund for the
16following programs:
17        (1) Disabled Student Personnel Reimbursement (Section
18    14-13.01 of the School Code);
19        (2) Disabled Student Transportation Reimbursement
20    (subsection (b) of Section 14-13.01 of the School Code);
21        (3) Disabled Student Tuition - Private Tuition
22    (Section 14-7.02 of the School Code);
23        (4) Extraordinary Special Education (Section 14-7.02b
24    of the School Code);
25        (5) Reimbursement for Free Lunch/Breakfast Programs;
26        (6) Summer School Payments (Section 18-4.3 of the

 

 

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1    School Code);
2        (7) Transportation - Regular/Vocational Reimbursement
3    (Section 29-5 of the School Code);
4        (8) Regular Education Reimbursement (Section 18-3 of
5    the School Code); and
6        (9) Special Education Reimbursement (Section 14-7.03
7    of the School Code).
8(Source: P.A. 97-689, eff. 7-1-12; 98-24, eff. 6-19-13.)
 
9    Section 915. The Property Tax Code is amended by changing
10Sections 18-200 and 18-249 as follows:
 
11    (35 ILCS 200/18-200)
12    Sec. 18-200. School Code. A school district's State aid
13shall not be reduced under the computation under subsections
145(a) through 5(h) of Part A of Section 18-8 of the School Code
15or under subsection (e) of Section 18-8.15 of the School Code
16due to the operating tax rate falling from above the minimum
17requirement of that Section of the School Code to below the
18minimum requirement of that Section of the School Code due to
19the operation of this Law.
20(Source: P.A. 87-17; 88-455.)
 
21    (35 ILCS 200/18-249)
22    Sec. 18-249. Miscellaneous provisions.
23    (a) Certification of new property. For the 1994 levy year,

 

 

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1the chief county assessment officer shall certify to the county
2clerk, after all changes by the board of review or board of
3appeals, as the case may be, the assessed value of new property
4by taxing district for the 1994 levy year under rules
5promulgated by the Department.
6    (b) School Code. A school district's State aid shall not be
7reduced under the computation under subsections 5(a) through
85(h) of Part A of Section 18-8 of the School Code or under
9subsection (e) of Section 18-8.15 of the School Code due to the
10operating tax rate falling from above the minimum requirement
11of that Section of the School Code to below the minimum
12requirement of that Section of the School Code due to the
13operation of this Law.
14    (c) Rules. The Department shall make and promulgate
15reasonable rules relating to the administration of the purposes
16and provisions of Sections 18-246 through 18-249 as may be
17necessary or appropriate.
18(Source: P.A. 89-1, eff. 2-12-95.)
 
19    Section 920. The Innovation Development and Economy Act is
20amended by changing Section 33 as follows:
 
21    (50 ILCS 470/33)
22    Sec. 33. STAR Bonds School Improvement and Operations Trust
23Fund.
24    (a) The STAR Bonds School Improvement and Operations Trust

 

 

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1Fund is created as a trust fund in the State treasury. Deposits
2into the Trust Fund shall be made as provided under this
3Section. Moneys in the Trust Fund shall be used by the
4Department of Revenue only for the purpose of making payments
5to school districts in educational service regions that include
6or are adjacent to the STAR bond district. Moneys in the Trust
7Fund are not subject to appropriation and shall be used solely
8as provided in this Section. All deposits into the Trust Fund
9shall be held in the Trust Fund by the State Treasurer as ex
10officio custodian separate and apart from all public moneys or
11funds of this State and shall be administered by the Department
12exclusively for the purposes set forth in this Section. All
13moneys in the Trust Fund shall be invested and reinvested by
14the State Treasurer. All interest accruing from these
15investments shall be deposited in the Trust Fund.
16    (b) Upon approval of a STAR bond district, the political
17subdivision shall immediately transmit to the county clerk of
18the county in which the district is located a certified copy of
19the ordinance creating the district, a legal description of the
20district, a map of the district, identification of the year
21that the county clerk shall use for determining the total
22initial equalized assessed value of the district consistent
23with subsection (c), and a list of the parcel or tax
24identification number of each parcel of property included in
25the district.
26    (c) Upon approval of a STAR bond district, the county clerk

 

 

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1immediately thereafter shall determine (i) the most recently
2ascertained equalized assessed value of each lot, block, tract,
3or parcel of real property within the STAR bond district, from
4which shall be deducted the homestead exemptions under Article
515 of the Property Tax Code, which value shall be the initial
6equalized assessed value of each such piece of property, and
7(ii) the total equalized assessed value of all taxable real
8property within the district by adding together the most
9recently ascertained equalized assessed value of each taxable
10lot, block, tract, or parcel of real property within the
11district, from which shall be deducted the homestead exemptions
12under Article 15 of the Property Tax Code, and shall certify
13that amount as the total initial equalized assessed value of
14the taxable real property within the STAR bond district.
15    (d) In reference to any STAR bond district created within
16any political subdivision, and in respect to which the county
17clerk has certified the total initial equalized assessed value
18of the property in the area, the political subdivision may
19thereafter request the clerk in writing to adjust the initial
20equalized value of all taxable real property within the STAR
21bond district by deducting therefrom the exemptions under
22Article 15 of the Property Tax Code applicable to each lot,
23block, tract, or parcel of real property within the STAR bond
24district. The county clerk shall immediately, after the written
25request to adjust the total initial equalized value is
26received, determine the total homestead exemptions in the STAR

 

 

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1bond district as provided under Article 15 of the Property Tax
2Code by adding together the homestead exemptions provided by
3said Article on each lot, block, tract, or parcel of real
4property within the STAR bond district and then shall deduct
5the total of said exemptions from the total initial equalized
6assessed value. The county clerk shall then promptly certify
7that amount as the total initial equalized assessed value as
8adjusted of the taxable real property within the STAR bond
9district.
10    (e) The county clerk or other person authorized by law
11shall compute the tax rates for each taxing district with all
12or a portion of its equalized assessed value located in the
13STAR bond district. The rate per cent of tax determined shall
14be extended to the current equalized assessed value of all
15property in the district in the same manner as the rate per
16cent of tax is extended to all other taxable property in the
17taxing district.
18    (f) Beginning with the assessment year in which the first
19destination user in the first STAR bond project in a STAR bond
20district makes its first retail sales and for each assessment
21year thereafter until final maturity of the last STAR bonds
22issued in the district, the county clerk or other person
23authorized by law shall determine the increase in equalized
24assessed value of all real property within the STAR bond
25district by subtracting the initial equalized assessed value of
26all property in the district certified under subsection (c)

 

 

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1from the current equalized assessed value of all property in
2the district. Each year, the property taxes arising from the
3increase in equalized assessed value in the STAR bond district
4shall be determined for each taxing district and shall be
5certified to the county collector.
6    (g) Beginning with the year in which taxes are collected
7based on the assessment year in which the first destination
8user in the first STAR bond project in a STAR bond district
9makes its first retail sales and for each year thereafter until
10final maturity of the last STAR bonds issued in the district,
11the county collector shall, within 30 days after receipt of
12property taxes, transmit to the Department to be deposited into
13the STAR Bonds School Improvement and Operations Trust Fund 15%
14of property taxes attributable to the increase in equalized
15assessed value within the STAR bond district from each taxing
16district as certified in subsection (f).
17    (h) The Department shall pay to the regional superintendent
18of schools whose educational service region includes Franklin
19and Williamson Counties, for each year for which money is
20remitted to the Department and paid into the STAR Bonds School
21Improvement and Operations Trust Fund, the money in the Fund as
22provided in this Section. The amount paid to each school
23district shall be allocated proportionately, based on each
24qualifying school district's fall enrollment for the
25then-current school year, such that the school district with
26the largest fall enrollment receives the largest proportionate

 

 

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1share of money paid out of the Fund or by any other method or
2formula that the regional superintendent of schools deems fit,
3equitable, and in the public interest. The regional
4superintendent may allocate moneys to school districts that are
5outside of his or her educational service region or to other
6regional superintendents.
7    The Department shall determine the distributions under
8this Section using its best judgment and information. The
9Department shall be held harmless for the distributions made
10under this Section and all distributions shall be final.
11    (i) In any year that an assessment appeal is filed, the
12extension of taxes on any assessment so appealed shall not be
13delayed. In the case of an assessment that is altered, any
14taxes extended upon the unauthorized assessment or part thereof
15shall be abated, or, if already paid, shall be refunded with
16interest as provided in Section 23-20 of the Property Tax Code.
17In the case of an assessment appeal, the county collector shall
18notify the Department that an assessment appeal has been filed
19and the amount of the tax that would have been deposited in the
20STAR Bonds School Improvement and Operations Trust Fund. The
21county collector shall hold that amount in a separate fund
22until the appeal process is final. After the appeal process is
23finalized, the county collector shall transmit to the
24Department the amount of tax that remains, if any, after all
25required refunds are made. The Department shall pay any amount
26deposited into the Trust Fund under this Section in the same

 

 

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1proportion as determined for payments for that taxable year
2under subsection (h).
3    (j) In any year that ad valorem taxes are allocated to the
4STAR Bonds School Improvement and Operations Trust Fund, that
5allocation shall not reduce or otherwise impact the school aid
6provided to any school district under the general State school
7aid formula provided for in Section 18-8.05 of the School Code
8or the primary State aid formula provided for in Section
918-8.15 of the School Code.
10(Source: P.A. 96-939, eff. 6-24-10.)
 
11    Section 925. The County Economic Development Project Area
12Property Tax Allocation Act is amended by changing Section 7 as
13follows:
 
14    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
15    Sec. 7. Creation of special tax allocation fund. If a
16county has adopted property tax allocation financing by
17ordinance for an economic development project area, the
18Department has approved and certified the economic development
19project area, and the county clerk has thereafter certified the
20"total initial equalized value" of the taxable real property
21within such economic development project area in the manner
22provided in subsection (b) of Section 6 of this Act, each year
23after the date of the certification by the county clerk of the
24"initial equalized assessed value" until economic development

 

 

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1project costs and all county obligations financing economic
2development project costs have been paid, the ad valorem taxes,
3if any, arising from the levies upon the taxable real property
4in the economic development project area by taxing districts
5and tax rates determined in the manner provided in subsection
6(b) of Section 6 of this Act shall be divided as follows:
7        (1) That portion of the taxes levied upon each taxable
8    lot, block, tract or parcel of real property which is
9    attributable to the lower of the current equalized assessed
10    value or the initial equalized assessed value of each such
11    taxable lot, block, tract, or parcel of real property
12    existing at the time property tax allocation financing was
13    adopted shall be allocated and when collected shall be paid
14    by the county collector to the respective affected taxing
15    districts in the manner required by the law in the absence
16    of the adoption of property tax allocation financing.
17        (2) That portion, if any, of those taxes which is
18    attributable to the increase in the current equalized
19    assessed valuation of each taxable lot, block, tract, or
20    parcel of real property in the economic development project
21    are, over and above the initial equalized assessed value of
22    each property existing at the time property tax allocation
23    financing was adopted shall be allocated to and when
24    collected shall be paid to the county treasurer, who shall
25    deposit those taxes into a special fund called the special
26    tax allocation fund of the county for the purpose of paying

 

 

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1    economic development project costs and obligations
2    incurred in the payment thereof.
3    The county, by an ordinance adopting property tax
4allocation financing, may pledge the funds in and to be
5deposited in the special tax allocation fund for the payment of
6obligations issued under this Act and for the payment of
7economic development project costs. No part of the current
8equalized assessed valuation of each property in the economic
9development project area attributable to any increase above the
10total initial equalized assessed value of such properties shall
11be used in calculating the general State school aid formula,
12provided for in Section 18-8 of the School Code, or the primary
13State aid formula, provided for in Section 18-8.15 of the
14School Code, until such time as all economic development
15projects costs have been paid as provided for in this Section.
16    Whenever a county issues bonds for the purpose of financing
17economic development project costs, the county may provide by
18ordinance for the appointment of a trustee, which may be any
19trust company within the State, and for the establishment of
20the funds or accounts to be maintained by such trustee as the
21county shall deem necessary to provide for the security and
22payment of the bonds. If the county provides for the
23appointment of a trustee, the trustee shall be considered the
24assignee of any payments assigned by the county pursuant to the
25ordinance and this Section. Any amounts paid to the trustee as
26assignee shall be deposited in the funds or accounts

 

 

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1established pursuant to the trust agreement, and shall be held
2by the trustee in trust for the benefit of the holders of the
3bonds, and the holders shall have a lien on and a security
4interest in those bonds or accounts so long as the bonds remain
5outstanding and unpaid. Upon retirement of the bonds, the
6trustee shall pay over any excess amounts held to the county
7for deposit in the special tax allocation fund.
8    When the economic development project costs, including
9without limitation all county obligations financing economic
10development project costs incurred under this Act, have been
11paid, all surplus funds then remaining in the special tax
12allocation funds shall be distributed by being paid by the
13county treasurer to the county collector, who shall immediately
14thereafter pay those funds to the taxing districts having
15taxable property in the economic development project area in
16the same manner and proportion as the most recent distribution
17by the county collector to those taxing districts of real
18property taxes from real property in the economic development
19project area.
20    Upon the payment of all economic development project costs,
21retirement of obligations and the distribution of any excess
22monies pursuant to this Section and not later than 23 years
23from the date of adoption of the ordinance adopting property
24tax allocation financing, the county shall adopt an ordinance
25dissolving the special tax allocation fund for the economic
26development project area and terminating the designation of the

 

 

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1economic development project area as an economic development
2project area. Thereafter the rates of the taxing districts
3shall be extended and taxes levied, collected and distributed
4in the manner applicable in the absence of the adoption of
5property tax allocation financing.
6    Nothing in this Section shall be construed as relieving
7property in economic development project areas from being
8assessed as provided in the Property Tax Code or as relieving
9owners of that property from paying a uniform rate of taxes, as
10required by Section 4 of Article IX of the Illinois
11Constitution of 1970.
12(Source: P.A. 98-463, eff. 8-16-13.)
 
13    Section 930. The County Economic Development Project Area
14Tax Increment Allocation Act of 1991 is amended by changing
15Section 50 as follows:
 
16    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
17    Sec. 50. Special tax allocation fund.
18    (a) If a county clerk has certified the "total initial
19equalized assessed value" of the taxable real property within
20an economic development project area in the manner provided in
21Section 45, each year after the date of the certification by
22the county clerk of the "total initial equalized assessed
23value", until economic development project costs and all county
24obligations financing economic development project costs have

 

 

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1been paid, the ad valorem taxes, if any, arising from the
2levies upon the taxable real property in the economic
3development project area by taxing districts and tax rates
4determined in the manner provided in subsection (b) of Section
545 shall be divided as follows:
6        (1) That portion of the taxes levied upon each taxable
7    lot, block, tract, or parcel of real property that is
8    attributable to the lower of the current equalized assessed
9    value or the initial equalized assessed value of each
10    taxable lot, block, tract, or parcel of real property
11    existing at the time tax increment financing was adopted
12    shall be allocated to (and when collected shall be paid by
13    the county collector to) the respective affected taxing
14    districts in the manner required by law in the absence of
15    the adoption of tax increment allocation financing.
16        (2) That portion, if any, of the taxes that is
17    attributable to the increase in the current equalized
18    assessed valuation of each taxable lot, block, tract, or
19    parcel of real property in the economic development project
20    area, over and above the initial equalized assessed value
21    of each property existing at the time tax increment
22    financing was adopted, shall be allocated to (and when
23    collected shall be paid to) the county treasurer, who shall
24    deposit the taxes into a special fund (called the special
25    tax allocation fund of the county) for the purpose of
26    paying economic development project costs and obligations

 

 

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1    incurred in the payment of those costs.
2    (b) The county, by an ordinance adopting tax increment
3allocation financing, may pledge the monies in and to be
4deposited into the special tax allocation fund for the payment
5of obligations issued under this Act and for the payment of
6economic development project costs. No part of the current
7equalized assessed valuation of each property in the economic
8development project area attributable to any increase above the
9total initial equalized assessed value of those properties
10shall be used in calculating the general State school aid
11formula under Section 18-8 of the School Code or the primary
12State aid formula under Section 18-8.15 of the School Code
13until all economic development projects costs have been paid as
14provided for in this Section.
15    (c) When the economic development projects costs,
16including without limitation all county obligations financing
17economic development project costs incurred under this Act,
18have been paid, all surplus monies then remaining in the
19special tax allocation fund shall be distributed by being paid
20by the county treasurer to the county collector, who shall
21immediately pay the monies to the taxing districts having
22taxable property in the economic development project area in
23the same manner and proportion as the most recent distribution
24by the county collector to those taxing districts of real
25property taxes from real property in the economic development
26project area.

 

 

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1    (d) Upon the payment of all economic development project
2costs, retirement of obligations, and distribution of any
3excess monies under this Section, the county shall adopt an
4ordinance dissolving the special tax allocation fund for the
5economic development project area and terminating the
6designation of the economic development project area as an
7economic development project area. Thereafter, the rates of the
8taxing districts shall be extended and taxes shall be levied,
9collected, and distributed in the manner applicable in the
10absence of the adoption of tax increment allocation financing.
11    (e) Nothing in this Section shall be construed as relieving
12property in the economic development project areas from being
13assessed as provided in the Property Tax Code or as relieving
14owners of that property from paying a uniform rate of taxes as
15required by Section 4 of Article IX of the Illinois
16Constitution.
17(Source: P.A. 98-463, eff. 8-16-13.)
 
18    Section 935. The Illinois Municipal Code is amended by
19changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
20follows:
 
21    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
22    Sec. 11-74.4-3. Definitions. The following terms, wherever
23used or referred to in this Division 74.4 shall have the
24following respective meanings, unless in any case a different

 

 

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1meaning clearly appears from the context.
2    (a) For any redevelopment project area that has been
3designated pursuant to this Section by an ordinance adopted
4prior to November 1, 1999 (the effective date of Public Act
591-478), "blighted area" shall have the meaning set forth in
6this Section prior to that date.
7    On and after November 1, 1999, "blighted area" means any
8improved or vacant area within the boundaries of a
9redevelopment project area located within the territorial
10limits of the municipality where:
11        (1) If improved, industrial, commercial, and
12    residential buildings or improvements are detrimental to
13    the public safety, health, or welfare because of a
14    combination of 5 or more of the following factors, each of
15    which is (i) present, with that presence documented, to a
16    meaningful extent so that a municipality may reasonably
17    find that the factor is clearly present within the intent
18    of the Act and (ii) reasonably distributed throughout the
19    improved part of the redevelopment project area:
20            (A) Dilapidation. An advanced state of disrepair
21        or neglect of necessary repairs to the primary
22        structural components of buildings or improvements in
23        such a combination that a documented building
24        condition analysis determines that major repair is
25        required or the defects are so serious and so extensive
26        that the buildings must be removed.

 

 

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1            (B) Obsolescence. The condition or process of
2        falling into disuse. Structures have become ill-suited
3        for the original use.
4            (C) Deterioration. With respect to buildings,
5        defects including, but not limited to, major defects in
6        the secondary building components such as doors,
7        windows, porches, gutters and downspouts, and fascia.
8        With respect to surface improvements, that the
9        condition of roadways, alleys, curbs, gutters,
10        sidewalks, off-street parking, and surface storage
11        areas evidence deterioration, including, but not
12        limited to, surface cracking, crumbling, potholes,
13        depressions, loose paving material, and weeds
14        protruding through paved surfaces.
15            (D) Presence of structures below minimum code
16        standards. All structures that do not meet the
17        standards of zoning, subdivision, building, fire, and
18        other governmental codes applicable to property, but
19        not including housing and property maintenance codes.
20            (E) Illegal use of individual structures. The use
21        of structures in violation of applicable federal,
22        State, or local laws, exclusive of those applicable to
23        the presence of structures below minimum code
24        standards.
25            (F) Excessive vacancies. The presence of buildings
26        that are unoccupied or under-utilized and that

 

 

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1        represent an adverse influence on the area because of
2        the frequency, extent, or duration of the vacancies.
3            (G) Lack of ventilation, light, or sanitary
4        facilities. The absence of adequate ventilation for
5        light or air circulation in spaces or rooms without
6        windows, or that require the removal of dust, odor,
7        gas, smoke, or other noxious airborne materials.
8        Inadequate natural light and ventilation means the
9        absence of skylights or windows for interior spaces or
10        rooms and improper window sizes and amounts by room
11        area to window area ratios. Inadequate sanitary
12        facilities refers to the absence or inadequacy of
13        garbage storage and enclosure, bathroom facilities,
14        hot water and kitchens, and structural inadequacies
15        preventing ingress and egress to and from all rooms and
16        units within a building.
17            (H) Inadequate utilities. Underground and overhead
18        utilities such as storm sewers and storm drainage,
19        sanitary sewers, water lines, and gas, telephone, and
20        electrical services that are shown to be inadequate.
21        Inadequate utilities are those that are: (i) of
22        insufficient capacity to serve the uses in the
23        redevelopment project area, (ii) deteriorated,
24        antiquated, obsolete, or in disrepair, or (iii)
25        lacking within the redevelopment project area.
26            (I) Excessive land coverage and overcrowding of

 

 

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1        structures and community facilities. The
2        over-intensive use of property and the crowding of
3        buildings and accessory facilities onto a site.
4        Examples of problem conditions warranting the
5        designation of an area as one exhibiting excessive land
6        coverage are: (i) the presence of buildings either
7        improperly situated on parcels or located on parcels of
8        inadequate size and shape in relation to present-day
9        standards of development for health and safety and (ii)
10        the presence of multiple buildings on a single parcel.
11        For there to be a finding of excessive land coverage,
12        these parcels must exhibit one or more of the following
13        conditions: insufficient provision for light and air
14        within or around buildings, increased threat of spread
15        of fire due to the close proximity of buildings, lack
16        of adequate or proper access to a public right-of-way,
17        lack of reasonably required off-street parking, or
18        inadequate provision for loading and service.
19            (J) Deleterious land use or layout. The existence
20        of incompatible land-use relationships, buildings
21        occupied by inappropriate mixed-uses, or uses
22        considered to be noxious, offensive, or unsuitable for
23        the surrounding area.
24            (K) Environmental clean-up. The proposed
25        redevelopment project area has incurred Illinois
26        Environmental Protection Agency or United States

 

 

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1        Environmental Protection Agency remediation costs for,
2        or a study conducted by an independent consultant
3        recognized as having expertise in environmental
4        remediation has determined a need for, the clean-up of
5        hazardous waste, hazardous substances, or underground
6        storage tanks required by State or federal law,
7        provided that the remediation costs constitute a
8        material impediment to the development or
9        redevelopment of the redevelopment project area.
10            (L) Lack of community planning. The proposed
11        redevelopment project area was developed prior to or
12        without the benefit or guidance of a community plan.
13        This means that the development occurred prior to the
14        adoption by the municipality of a comprehensive or
15        other community plan or that the plan was not followed
16        at the time of the area's development. This factor must
17        be documented by evidence of adverse or incompatible
18        land-use relationships, inadequate street layout,
19        improper subdivision, parcels of inadequate shape and
20        size to meet contemporary development standards, or
21        other evidence demonstrating an absence of effective
22        community planning.
23            (M) The total equalized assessed value of the
24        proposed redevelopment project area has declined for 3
25        of the last 5 calendar years prior to the year in which
26        the redevelopment project area is designated or is

 

 

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1        increasing at an annual rate that is less than the
2        balance of the municipality for 3 of the last 5
3        calendar years for which information is available or is
4        increasing at an annual rate that is less than the
5        Consumer Price Index for All Urban Consumers published
6        by the United States Department of Labor or successor
7        agency for 3 of the last 5 calendar years prior to the
8        year in which the redevelopment project area is
9        designated.
10        (2) If vacant, the sound growth of the redevelopment
11    project area is impaired by a combination of 2 or more of
12    the following factors, each of which is (i) present, with
13    that presence documented, to a meaningful extent so that a
14    municipality may reasonably find that the factor is clearly
15    present within the intent of the Act and (ii) reasonably
16    distributed throughout the vacant part of the
17    redevelopment project area to which it pertains:
18            (A) Obsolete platting of vacant land that results
19        in parcels of limited or narrow size or configurations
20        of parcels of irregular size or shape that would be
21        difficult to develop on a planned basis and in a manner
22        compatible with contemporary standards and
23        requirements, or platting that failed to create
24        rights-of-ways for streets or alleys or that created
25        inadequate right-of-way widths for streets, alleys, or
26        other public rights-of-way or that omitted easements

 

 

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1        for public utilities.
2            (B) Diversity of ownership of parcels of vacant
3        land sufficient in number to retard or impede the
4        ability to assemble the land for development.
5            (C) Tax and special assessment delinquencies exist
6        or the property has been the subject of tax sales under
7        the Property Tax Code within the last 5 years.
8            (D) Deterioration of structures or site
9        improvements in neighboring areas adjacent to the
10        vacant land.
11            (E) The area has incurred Illinois Environmental
12        Protection Agency or United States Environmental
13        Protection Agency remediation costs for, or a study
14        conducted by an independent consultant recognized as
15        having expertise in environmental remediation has
16        determined a need for, the clean-up of hazardous waste,
17        hazardous substances, or underground storage tanks
18        required by State or federal law, provided that the
19        remediation costs constitute a material impediment to
20        the development or redevelopment of the redevelopment
21        project area.
22            (F) The total equalized assessed value of the
23        proposed redevelopment project area has declined for 3
24        of the last 5 calendar years prior to the year in which
25        the redevelopment project area is designated or is
26        increasing at an annual rate that is less than the

 

 

SB0016 Engrossed- 36 -LRB098 04277 NHT 34304 b

1        balance of the municipality for 3 of the last 5
2        calendar years for which information is available or is
3        increasing at an annual rate that is less than the
4        Consumer Price Index for All Urban Consumers published
5        by the United States Department of Labor or successor
6        agency for 3 of the last 5 calendar years prior to the
7        year in which the redevelopment project area is
8        designated.
9        (3) If vacant, the sound growth of the redevelopment
10    project area is impaired by one of the following factors
11    that (i) is present, with that presence documented, to a
12    meaningful extent so that a municipality may reasonably
13    find that the factor is clearly present within the intent
14    of the Act and (ii) is reasonably distributed throughout
15    the vacant part of the redevelopment project area to which
16    it pertains:
17            (A) The area consists of one or more unused
18        quarries, mines, or strip mine ponds.
19            (B) The area consists of unused rail yards, rail
20        tracks, or railroad rights-of-way.
21            (C) The area, prior to its designation, is subject
22        to (i) chronic flooding that adversely impacts on real
23        property in the area as certified by a registered
24        professional engineer or appropriate regulatory agency
25        or (ii) surface water that discharges from all or a
26        part of the area and contributes to flooding within the

 

 

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1        same watershed, but only if the redevelopment project
2        provides for facilities or improvements to contribute
3        to the alleviation of all or part of the flooding.
4            (D) The area consists of an unused or illegal
5        disposal site containing earth, stone, building
6        debris, or similar materials that were removed from
7        construction, demolition, excavation, or dredge sites.
8            (E) Prior to November 1, 1999, the area is not less
9        than 50 nor more than 100 acres and 75% of which is
10        vacant (notwithstanding that the area has been used for
11        commercial agricultural purposes within 5 years prior
12        to the designation of the redevelopment project area),
13        and the area meets at least one of the factors itemized
14        in paragraph (1) of this subsection, the area has been
15        designated as a town or village center by ordinance or
16        comprehensive plan adopted prior to January 1, 1982,
17        and the area has not been developed for that designated
18        purpose.
19            (F) The area qualified as a blighted improved area
20        immediately prior to becoming vacant, unless there has
21        been substantial private investment in the immediately
22        surrounding area.
23    (b) For any redevelopment project area that has been
24designated pursuant to this Section by an ordinance adopted
25prior to November 1, 1999 (the effective date of Public Act
2691-478), "conservation area" shall have the meaning set forth

 

 

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1in this Section prior to that date.
2    On and after November 1, 1999, "conservation area" means
3any improved area within the boundaries of a redevelopment
4project area located within the territorial limits of the
5municipality in which 50% or more of the structures in the area
6have an age of 35 years or more. Such an area is not yet a
7blighted area but because of a combination of 3 or more of the
8following factors is detrimental to the public safety, health,
9morals or welfare and such an area may become a blighted area:
10        (1) Dilapidation. An advanced state of disrepair or
11    neglect of necessary repairs to the primary structural
12    components of buildings or improvements in such a
13    combination that a documented building condition analysis
14    determines that major repair is required or the defects are
15    so serious and so extensive that the buildings must be
16    removed.
17        (2) Obsolescence. The condition or process of falling
18    into disuse. Structures have become ill-suited for the
19    original use.
20        (3) Deterioration. With respect to buildings, defects
21    including, but not limited to, major defects in the
22    secondary building components such as doors, windows,
23    porches, gutters and downspouts, and fascia. With respect
24    to surface improvements, that the condition of roadways,
25    alleys, curbs, gutters, sidewalks, off-street parking, and
26    surface storage areas evidence deterioration, including,

 

 

SB0016 Engrossed- 39 -LRB098 04277 NHT 34304 b

1    but not limited to, surface cracking, crumbling, potholes,
2    depressions, loose paving material, and weeds protruding
3    through paved surfaces.
4        (4) Presence of structures below minimum code
5    standards. All structures that do not meet the standards of
6    zoning, subdivision, building, fire, and other
7    governmental codes applicable to property, but not
8    including housing and property maintenance codes.
9        (5) Illegal use of individual structures. The use of
10    structures in violation of applicable federal, State, or
11    local laws, exclusive of those applicable to the presence
12    of structures below minimum code standards.
13        (6) Excessive vacancies. The presence of buildings
14    that are unoccupied or under-utilized and that represent an
15    adverse influence on the area because of the frequency,
16    extent, or duration of the vacancies.
17        (7) Lack of ventilation, light, or sanitary
18    facilities. The absence of adequate ventilation for light
19    or air circulation in spaces or rooms without windows, or
20    that require the removal of dust, odor, gas, smoke, or
21    other noxious airborne materials. Inadequate natural light
22    and ventilation means the absence or inadequacy of
23    skylights or windows for interior spaces or rooms and
24    improper window sizes and amounts by room area to window
25    area ratios. Inadequate sanitary facilities refers to the
26    absence or inadequacy of garbage storage and enclosure,

 

 

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1    bathroom facilities, hot water and kitchens, and
2    structural inadequacies preventing ingress and egress to
3    and from all rooms and units within a building.
4        (8) Inadequate utilities. Underground and overhead
5    utilities such as storm sewers and storm drainage, sanitary
6    sewers, water lines, and gas, telephone, and electrical
7    services that are shown to be inadequate. Inadequate
8    utilities are those that are: (i) of insufficient capacity
9    to serve the uses in the redevelopment project area, (ii)
10    deteriorated, antiquated, obsolete, or in disrepair, or
11    (iii) lacking within the redevelopment project area.
12        (9) Excessive land coverage and overcrowding of
13    structures and community facilities. The over-intensive
14    use of property and the crowding of buildings and accessory
15    facilities onto a site. Examples of problem conditions
16    warranting the designation of an area as one exhibiting
17    excessive land coverage are: the presence of buildings
18    either improperly situated on parcels or located on parcels
19    of inadequate size and shape in relation to present-day
20    standards of development for health and safety and the
21    presence of multiple buildings on a single parcel. For
22    there to be a finding of excessive land coverage, these
23    parcels must exhibit one or more of the following
24    conditions: insufficient provision for light and air
25    within or around buildings, increased threat of spread of
26    fire due to the close proximity of buildings, lack of

 

 

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1    adequate or proper access to a public right-of-way, lack of
2    reasonably required off-street parking, or inadequate
3    provision for loading and service.
4        (10) Deleterious land use or layout. The existence of
5    incompatible land-use relationships, buildings occupied by
6    inappropriate mixed-uses, or uses considered to be
7    noxious, offensive, or unsuitable for the surrounding
8    area.
9        (11) Lack of community planning. The proposed
10    redevelopment project area was developed prior to or
11    without the benefit or guidance of a community plan. This
12    means that the development occurred prior to the adoption
13    by the municipality of a comprehensive or other community
14    plan or that the plan was not followed at the time of the
15    area's development. This factor must be documented by
16    evidence of adverse or incompatible land-use
17    relationships, inadequate street layout, improper
18    subdivision, parcels of inadequate shape and size to meet
19    contemporary development standards, or other evidence
20    demonstrating an absence of effective community planning.
21        (12) The area has incurred Illinois Environmental
22    Protection Agency or United States Environmental
23    Protection Agency remediation costs for, or a study
24    conducted by an independent consultant recognized as
25    having expertise in environmental remediation has
26    determined a need for, the clean-up of hazardous waste,

 

 

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1    hazardous substances, or underground storage tanks
2    required by State or federal law, provided that the
3    remediation costs constitute a material impediment to the
4    development or redevelopment of the redevelopment project
5    area.
6        (13) The total equalized assessed value of the proposed
7    redevelopment project area has declined for 3 of the last 5
8    calendar years for which information is available or is
9    increasing at an annual rate that is less than the balance
10    of the municipality for 3 of the last 5 calendar years for
11    which information is available or is increasing at an
12    annual rate that is less than the Consumer Price Index for
13    All Urban Consumers published by the United States
14    Department of Labor or successor agency for 3 of the last 5
15    calendar years for which information is available.
16    (c) "Industrial park" means an area in a blighted or
17conservation area suitable for use by any manufacturing,
18industrial, research or transportation enterprise, of
19facilities to include but not be limited to factories, mills,
20processing plants, assembly plants, packing plants,
21fabricating plants, industrial distribution centers,
22warehouses, repair overhaul or service facilities, freight
23terminals, research facilities, test facilities or railroad
24facilities.
25    (d) "Industrial park conservation area" means an area
26within the boundaries of a redevelopment project area located

 

 

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1within the territorial limits of a municipality that is a labor
2surplus municipality or within 1 1/2 miles of the territorial
3limits of a municipality that is a labor surplus municipality
4if the area is annexed to the municipality; which area is zoned
5as industrial no later than at the time the municipality by
6ordinance designates the redevelopment project area, and which
7area includes both vacant land suitable for use as an
8industrial park and a blighted area or conservation area
9contiguous to such vacant land.
10    (e) "Labor surplus municipality" means a municipality in
11which, at any time during the 6 months before the municipality
12by ordinance designates an industrial park conservation area,
13the unemployment rate was over 6% and was also 100% or more of
14the national average unemployment rate for that same time as
15published in the United States Department of Labor Bureau of
16Labor Statistics publication entitled "The Employment
17Situation" or its successor publication. For the purpose of
18this subsection, if unemployment rate statistics for the
19municipality are not available, the unemployment rate in the
20municipality shall be deemed to be the same as the unemployment
21rate in the principal county in which the municipality is
22located.
23    (f) "Municipality" shall mean a city, village,
24incorporated town, or a township that is located in the
25unincorporated portion of a county with 3 million or more
26inhabitants, if the county adopted an ordinance that approved

 

 

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1the township's redevelopment plan.
2    (g) "Initial Sales Tax Amounts" means the amount of taxes
3paid under the Retailers' Occupation Tax Act, Use Tax Act,
4Service Use Tax Act, the Service Occupation Tax Act, the
5Municipal Retailers' Occupation Tax Act, and the Municipal
6Service Occupation Tax Act by retailers and servicemen on
7transactions at places located in a State Sales Tax Boundary
8during the calendar year 1985.
9    (g-1) "Revised Initial Sales Tax Amounts" means the amount
10of taxes paid under the Retailers' Occupation Tax Act, Use Tax
11Act, Service Use Tax Act, the Service Occupation Tax Act, the
12Municipal Retailers' Occupation Tax Act, and the Municipal
13Service Occupation Tax Act by retailers and servicemen on
14transactions at places located within the State Sales Tax
15Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
16    (h) "Municipal Sales Tax Increment" means an amount equal
17to the increase in the aggregate amount of taxes paid to a
18municipality from the Local Government Tax Fund arising from
19sales by retailers and servicemen within the redevelopment
20project area or State Sales Tax Boundary, as the case may be,
21for as long as the redevelopment project area or State Sales
22Tax Boundary, as the case may be, exist over and above the
23aggregate amount of taxes as certified by the Illinois
24Department of Revenue and paid under the Municipal Retailers'
25Occupation Tax Act and the Municipal Service Occupation Tax Act
26by retailers and servicemen, on transactions at places of

 

 

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1business located in the redevelopment project area or State
2Sales Tax Boundary, as the case may be, during the base year
3which shall be the calendar year immediately prior to the year
4in which the municipality adopted tax increment allocation
5financing. For purposes of computing the aggregate amount of
6such taxes for base years occurring prior to 1985, the
7Department of Revenue shall determine the Initial Sales Tax
8Amounts for such taxes and deduct therefrom an amount equal to
94% of the aggregate amount of taxes per year for each year the
10base year is prior to 1985, but not to exceed a total deduction
11of 12%. The amount so determined shall be known as the
12"Adjusted Initial Sales Tax Amounts". For purposes of
13determining the Municipal Sales Tax Increment, the Department
14of Revenue shall for each period subtract from the amount paid
15to the municipality from the Local Government Tax Fund arising
16from sales by retailers and servicemen on transactions located
17in the redevelopment project area or the State Sales Tax
18Boundary, as the case may be, the certified Initial Sales Tax
19Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
20Initial Sales Tax Amounts for the Municipal Retailers'
21Occupation Tax Act and the Municipal Service Occupation Tax
22Act. For the State Fiscal Year 1989, this calculation shall be
23made by utilizing the calendar year 1987 to determine the tax
24amounts received. For the State Fiscal Year 1990, this
25calculation shall be made by utilizing the period from January
261, 1988, until September 30, 1988, to determine the tax amounts

 

 

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1received from retailers and servicemen pursuant to the
2Municipal Retailers' Occupation Tax and the Municipal Service
3Occupation Tax Act, which shall have deducted therefrom
4nine-twelfths of the certified Initial Sales Tax Amounts, the
5Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
6Tax Amounts as appropriate. For the State Fiscal Year 1991,
7this calculation shall be made by utilizing the period from
8October 1, 1988, to June 30, 1989, to determine the tax amounts
9received from retailers and servicemen pursuant to the
10Municipal Retailers' Occupation Tax and the Municipal Service
11Occupation Tax Act which shall have deducted therefrom
12nine-twelfths of the certified Initial Sales Tax Amounts,
13Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
14Tax Amounts as appropriate. For every State Fiscal Year
15thereafter, the applicable period shall be the 12 months
16beginning July 1 and ending June 30 to determine the tax
17amounts received which shall have deducted therefrom the
18certified Initial Sales Tax Amounts, the Adjusted Initial Sales
19Tax Amounts or the Revised Initial Sales Tax Amounts, as the
20case may be.
21    (i) "Net State Sales Tax Increment" means the sum of the
22following: (a) 80% of the first $100,000 of State Sales Tax
23Increment annually generated within a State Sales Tax Boundary;
24(b) 60% of the amount in excess of $100,000 but not exceeding
25$500,000 of State Sales Tax Increment annually generated within
26a State Sales Tax Boundary; and (c) 40% of all amounts in

 

 

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1excess of $500,000 of State Sales Tax Increment annually
2generated within a State Sales Tax Boundary. If, however, a
3municipality established a tax increment financing district in
4a county with a population in excess of 3,000,000 before
5January 1, 1986, and the municipality entered into a contract
6or issued bonds after January 1, 1986, but before December 31,
71986, to finance redevelopment project costs within a State
8Sales Tax Boundary, then the Net State Sales Tax Increment
9means, for the fiscal years beginning July 1, 1990, and July 1,
101991, 100% of the State Sales Tax Increment annually generated
11within a State Sales Tax Boundary; and notwithstanding any
12other provision of this Act, for those fiscal years the
13Department of Revenue shall distribute to those municipalities
14100% of their Net State Sales Tax Increment before any
15distribution to any other municipality and regardless of
16whether or not those other municipalities will receive 100% of
17their Net State Sales Tax Increment. For Fiscal Year 1999, and
18every year thereafter until the year 2007, for any municipality
19that has not entered into a contract or has not issued bonds
20prior to June 1, 1988 to finance redevelopment project costs
21within a State Sales Tax Boundary, the Net State Sales Tax
22Increment shall be calculated as follows: By multiplying the
23Net State Sales Tax Increment by 90% in the State Fiscal Year
241999; 80% in the State Fiscal Year 2000; 70% in the State
25Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
26State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

 

 

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1in the State Fiscal Year 2005; 20% in the State Fiscal Year
22006; and 10% in the State Fiscal Year 2007. No payment shall
3be made for State Fiscal Year 2008 and thereafter.
4    Municipalities that issued bonds in connection with a
5redevelopment project in a redevelopment project area within
6the State Sales Tax Boundary prior to July 29, 1991, or that
7entered into contracts in connection with a redevelopment
8project in a redevelopment project area before June 1, 1988,
9shall continue to receive their proportional share of the
10Illinois Tax Increment Fund distribution until the date on
11which the redevelopment project is completed or terminated. If,
12however, a municipality that issued bonds in connection with a
13redevelopment project in a redevelopment project area within
14the State Sales Tax Boundary prior to July 29, 1991 retires the
15bonds prior to June 30, 2007 or a municipality that entered
16into contracts in connection with a redevelopment project in a
17redevelopment project area before June 1, 1988 completes the
18contracts prior to June 30, 2007, then so long as the
19redevelopment project is not completed or is not terminated,
20the Net State Sales Tax Increment shall be calculated,
21beginning on the date on which the bonds are retired or the
22contracts are completed, as follows: By multiplying the Net
23State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
252004; 30% in the State Fiscal Year 2005; 20% in the State
26Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No

 

 

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1payment shall be made for State Fiscal Year 2008 and
2thereafter. Refunding of any bonds issued prior to July 29,
31991, shall not alter the Net State Sales Tax Increment.
4    (j) "State Utility Tax Increment Amount" means an amount
5equal to the aggregate increase in State electric and gas tax
6charges imposed on owners and tenants, other than residential
7customers, of properties located within the redevelopment
8project area under Section 9-222 of the Public Utilities Act,
9over and above the aggregate of such charges as certified by
10the Department of Revenue and paid by owners and tenants, other
11than residential customers, of properties within the
12redevelopment project area during the base year, which shall be
13the calendar year immediately prior to the year of the adoption
14of the ordinance authorizing tax increment allocation
15financing.
16    (k) "Net State Utility Tax Increment" means the sum of the
17following: (a) 80% of the first $100,000 of State Utility Tax
18Increment annually generated by a redevelopment project area;
19(b) 60% of the amount in excess of $100,000 but not exceeding
20$500,000 of the State Utility Tax Increment annually generated
21by a redevelopment project area; and (c) 40% of all amounts in
22excess of $500,000 of State Utility Tax Increment annually
23generated by a redevelopment project area. For the State Fiscal
24Year 1999, and every year thereafter until the year 2007, for
25any municipality that has not entered into a contract or has
26not issued bonds prior to June 1, 1988 to finance redevelopment

 

 

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1project costs within a redevelopment project area, the Net
2State Utility Tax Increment shall be calculated as follows: By
3multiplying the Net State Utility Tax Increment by 90% in the
4State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
5in the State Fiscal Year 2001; 60% in the State Fiscal Year
62002; 50% in the State Fiscal Year 2003; 40% in the State
7Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
8State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
9No payment shall be made for the State Fiscal Year 2008 and
10thereafter.
11    Municipalities that issue bonds in connection with the
12redevelopment project during the period from June 1, 1988 until
133 years after the effective date of this Amendatory Act of 1988
14shall receive the Net State Utility Tax Increment, subject to
15appropriation, for 15 State Fiscal Years after the issuance of
16such bonds. For the 16th through the 20th State Fiscal Years
17after issuance of the bonds, the Net State Utility Tax
18Increment shall be calculated as follows: By multiplying the
19Net State Utility Tax Increment by 90% in year 16; 80% in year
2017; 70% in year 18; 60% in year 19; and 50% in year 20.
21Refunding of any bonds issued prior to June 1, 1988, shall not
22alter the revised Net State Utility Tax Increment payments set
23forth above.
24    (l) "Obligations" mean bonds, loans, debentures, notes,
25special certificates or other evidence of indebtedness issued
26by the municipality to carry out a redevelopment project or to

 

 

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1refund outstanding obligations.
2    (m) "Payment in lieu of taxes" means those estimated tax
3revenues from real property in a redevelopment project area
4derived from real property that has been acquired by a
5municipality which according to the redevelopment project or
6plan is to be used for a private use which taxing districts
7would have received had a municipality not acquired the real
8property and adopted tax increment allocation financing and
9which would result from levies made after the time of the
10adoption of tax increment allocation financing to the time the
11current equalized value of real property in the redevelopment
12project area exceeds the total initial equalized value of real
13property in said area.
14    (n) "Redevelopment plan" means the comprehensive program
15of the municipality for development or redevelopment intended
16by the payment of redevelopment project costs to reduce or
17eliminate those conditions the existence of which qualified the
18redevelopment project area as a "blighted area" or
19"conservation area" or combination thereof or "industrial park
20conservation area," and thereby to enhance the tax bases of the
21taxing districts which extend into the redevelopment project
22area. On and after November 1, 1999 (the effective date of
23Public Act 91-478), no redevelopment plan may be approved or
24amended that includes the development of vacant land (i) with a
25golf course and related clubhouse and other facilities or (ii)
26designated by federal, State, county, or municipal government

 

 

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1as public land for outdoor recreational activities or for
2nature preserves and used for that purpose within 5 years prior
3to the adoption of the redevelopment plan. For the purpose of
4this subsection, "recreational activities" is limited to mean
5camping and hunting. Each redevelopment plan shall set forth in
6writing the program to be undertaken to accomplish the
7objectives and shall include but not be limited to:
8        (A) an itemized list of estimated redevelopment
9    project costs;
10        (B) evidence indicating that the redevelopment project
11    area on the whole has not been subject to growth and
12    development through investment by private enterprise;
13        (C) an assessment of any financial impact of the
14    redevelopment project area on or any increased demand for
15    services from any taxing district affected by the plan and
16    any program to address such financial impact or increased
17    demand;
18        (D) the sources of funds to pay costs;
19        (E) the nature and term of the obligations to be
20    issued;
21        (F) the most recent equalized assessed valuation of the
22    redevelopment project area;
23        (G) an estimate as to the equalized assessed valuation
24    after redevelopment and the general land uses to apply in
25    the redevelopment project area;
26        (H) a commitment to fair employment practices and an

 

 

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1    affirmative action plan;
2        (I) if it concerns an industrial park conservation
3    area, the plan shall also include a general description of
4    any proposed developer, user and tenant of any property, a
5    description of the type, structure and general character of
6    the facilities to be developed, a description of the type,
7    class and number of new employees to be employed in the
8    operation of the facilities to be developed; and
9        (J) if property is to be annexed to the municipality,
10    the plan shall include the terms of the annexation
11    agreement.
12    The provisions of items (B) and (C) of this subsection (n)
13shall not apply to a municipality that before March 14, 1994
14(the effective date of Public Act 88-537) had fixed, either by
15its corporate authorities or by a commission designated under
16subsection (k) of Section 11-74.4-4, a time and place for a
17public hearing as required by subsection (a) of Section
1811-74.4-5. No redevelopment plan shall be adopted unless a
19municipality complies with all of the following requirements:
20        (1) The municipality finds that the redevelopment
21    project area on the whole has not been subject to growth
22    and development through investment by private enterprise
23    and would not reasonably be anticipated to be developed
24    without the adoption of the redevelopment plan.
25        (2) The municipality finds that the redevelopment plan
26    and project conform to the comprehensive plan for the

 

 

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1    development of the municipality as a whole, or, for
2    municipalities with a population of 100,000 or more,
3    regardless of when the redevelopment plan and project was
4    adopted, the redevelopment plan and project either: (i)
5    conforms to the strategic economic development or
6    redevelopment plan issued by the designated planning
7    authority of the municipality, or (ii) includes land uses
8    that have been approved by the planning commission of the
9    municipality.
10        (3) The redevelopment plan establishes the estimated
11    dates of completion of the redevelopment project and
12    retirement of obligations issued to finance redevelopment
13    project costs. Those dates may not be later than the dates
14    set forth under Section 11-74.4-3.5.
15        A municipality may by municipal ordinance amend an
16    existing redevelopment plan to conform to this paragraph
17    (3) as amended by Public Act 91-478, which municipal
18    ordinance may be adopted without further hearing or notice
19    and without complying with the procedures provided in this
20    Act pertaining to an amendment to or the initial approval
21    of a redevelopment plan and project and designation of a
22    redevelopment project area.
23        (3.5) The municipality finds, in the case of an
24    industrial park conservation area, also that the
25    municipality is a labor surplus municipality and that the
26    implementation of the redevelopment plan will reduce

 

 

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1    unemployment, create new jobs and by the provision of new
2    facilities enhance the tax base of the taxing districts
3    that extend into the redevelopment project area.
4        (4) If any incremental revenues are being utilized
5    under Section 8(a)(1) or 8(a)(2) of this Act in
6    redevelopment project areas approved by ordinance after
7    January 1, 1986, the municipality finds: (a) that the
8    redevelopment project area would not reasonably be
9    developed without the use of such incremental revenues, and
10    (b) that such incremental revenues will be exclusively
11    utilized for the development of the redevelopment project
12    area.
13        (5) If the redevelopment plan will not result in
14    displacement of residents from 10 or more inhabited
15    residential units, and the municipality certifies in the
16    plan that such displacement will not result from the plan,
17    a housing impact study need not be performed. If, however,
18    the redevelopment plan would result in the displacement of
19    residents from 10 or more inhabited residential units, or
20    if the redevelopment project area contains 75 or more
21    inhabited residential units and no certification is made,
22    then the municipality shall prepare, as part of the
23    separate feasibility report required by subsection (a) of
24    Section 11-74.4-5, a housing impact study.
25        Part I of the housing impact study shall include (i)
26    data as to whether the residential units are single family

 

 

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1    or multi-family units, (ii) the number and type of rooms
2    within the units, if that information is available, (iii)
3    whether the units are inhabited or uninhabited, as
4    determined not less than 45 days before the date that the
5    ordinance or resolution required by subsection (a) of
6    Section 11-74.4-5 is passed, and (iv) data as to the racial
7    and ethnic composition of the residents in the inhabited
8    residential units. The data requirement as to the racial
9    and ethnic composition of the residents in the inhabited
10    residential units shall be deemed to be fully satisfied by
11    data from the most recent federal census.
12        Part II of the housing impact study shall identify the
13    inhabited residential units in the proposed redevelopment
14    project area that are to be or may be removed. If inhabited
15    residential units are to be removed, then the housing
16    impact study shall identify (i) the number and location of
17    those units that will or may be removed, (ii) the
18    municipality's plans for relocation assistance for those
19    residents in the proposed redevelopment project area whose
20    residences are to be removed, (iii) the availability of
21    replacement housing for those residents whose residences
22    are to be removed, and shall identify the type, location,
23    and cost of the housing, and (iv) the type and extent of
24    relocation assistance to be provided.
25        (6) On and after November 1, 1999, the housing impact
26    study required by paragraph (5) shall be incorporated in

 

 

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1    the redevelopment plan for the redevelopment project area.
2        (7) On and after November 1, 1999, no redevelopment
3    plan shall be adopted, nor an existing plan amended, nor
4    shall residential housing that is occupied by households of
5    low-income and very low-income persons in currently
6    existing redevelopment project areas be removed after
7    November 1, 1999 unless the redevelopment plan provides,
8    with respect to inhabited housing units that are to be
9    removed for households of low-income and very low-income
10    persons, affordable housing and relocation assistance not
11    less than that which would be provided under the federal
12    Uniform Relocation Assistance and Real Property
13    Acquisition Policies Act of 1970 and the regulations under
14    that Act, including the eligibility criteria. Affordable
15    housing may be either existing or newly constructed
16    housing. For purposes of this paragraph (7), "low-income
17    households", "very low-income households", and "affordable
18    housing" have the meanings set forth in the Illinois
19    Affordable Housing Act. The municipality shall make a good
20    faith effort to ensure that this affordable housing is
21    located in or near the redevelopment project area within
22    the municipality.
23        (8) On and after November 1, 1999, if, after the
24    adoption of the redevelopment plan for the redevelopment
25    project area, any municipality desires to amend its
26    redevelopment plan to remove more inhabited residential

 

 

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1    units than specified in its original redevelopment plan,
2    that change shall be made in accordance with the procedures
3    in subsection (c) of Section 11-74.4-5.
4        (9) For redevelopment project areas designated prior
5    to November 1, 1999, the redevelopment plan may be amended
6    without further joint review board meeting or hearing,
7    provided that the municipality shall give notice of any
8    such changes by mail to each affected taxing district and
9    registrant on the interested party registry, to authorize
10    the municipality to expend tax increment revenues for
11    redevelopment project costs defined by paragraphs (5) and
12    (7.5), subparagraphs (E) and (F) of paragraph (11), and
13    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
14    long as the changes do not increase the total estimated
15    redevelopment project costs set out in the redevelopment
16    plan by more than 5% after adjustment for inflation from
17    the date the plan was adopted.
18    (o) "Redevelopment project" means any public and private
19development project in furtherance of the objectives of a
20redevelopment plan. On and after November 1, 1999 (the
21effective date of Public Act 91-478), no redevelopment plan may
22be approved or amended that includes the development of vacant
23land (i) with a golf course and related clubhouse and other
24facilities or (ii) designated by federal, State, county, or
25municipal government as public land for outdoor recreational
26activities or for nature preserves and used for that purpose

 

 

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1within 5 years prior to the adoption of the redevelopment plan.
2For the purpose of this subsection, "recreational activities"
3is limited to mean camping and hunting.
4    (p) "Redevelopment project area" means an area designated
5by the municipality, which is not less in the aggregate than 1
61/2 acres and in respect to which the municipality has made a
7finding that there exist conditions which cause the area to be
8classified as an industrial park conservation area or a
9blighted area or a conservation area, or a combination of both
10blighted areas and conservation areas.
11    (p-1) Notwithstanding any provision of this Act to the
12contrary, on and after August 25, 2009 (the effective date of
13Public Act 96-680), a redevelopment project area may include
14areas within a one-half mile radius of an existing or proposed
15Regional Transportation Authority Suburban Transit Access
16Route (STAR Line) station without a finding that the area is
17classified as an industrial park conservation area, a blighted
18area, a conservation area, or a combination thereof, but only
19if the municipality receives unanimous consent from the joint
20review board created to review the proposed redevelopment
21project area.
22    (q) "Redevelopment project costs", except for
23redevelopment project areas created pursuant to subsection
24(p-1), means and includes the sum total of all reasonable or
25necessary costs incurred or estimated to be incurred, and any
26such costs incidental to a redevelopment plan and a

 

 

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1redevelopment project. Such costs include, without limitation,
2the following:
3        (1) Costs of studies, surveys, development of plans,
4    and specifications, implementation and administration of
5    the redevelopment plan including but not limited to staff
6    and professional service costs for architectural,
7    engineering, legal, financial, planning or other services,
8    provided however that no charges for professional services
9    may be based on a percentage of the tax increment
10    collected; except that on and after November 1, 1999 (the
11    effective date of Public Act 91-478), no contracts for
12    professional services, excluding architectural and
13    engineering services, may be entered into if the terms of
14    the contract extend beyond a period of 3 years. In
15    addition, "redevelopment project costs" shall not include
16    lobbying expenses. After consultation with the
17    municipality, each tax increment consultant or advisor to a
18    municipality that plans to designate or has designated a
19    redevelopment project area shall inform the municipality
20    in writing of any contracts that the consultant or advisor
21    has entered into with entities or individuals that have
22    received, or are receiving, payments financed by tax
23    increment revenues produced by the redevelopment project
24    area with respect to which the consultant or advisor has
25    performed, or will be performing, service for the
26    municipality. This requirement shall be satisfied by the

 

 

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1    consultant or advisor before the commencement of services
2    for the municipality and thereafter whenever any other
3    contracts with those individuals or entities are executed
4    by the consultant or advisor;
5        (1.5) After July 1, 1999, annual administrative costs
6    shall not include general overhead or administrative costs
7    of the municipality that would still have been incurred by
8    the municipality if the municipality had not designated a
9    redevelopment project area or approved a redevelopment
10    plan;
11        (1.6) The cost of marketing sites within the
12    redevelopment project area to prospective businesses,
13    developers, and investors;
14        (2) Property assembly costs, including but not limited
15    to acquisition of land and other property, real or
16    personal, or rights or interests therein, demolition of
17    buildings, site preparation, site improvements that serve
18    as an engineered barrier addressing ground level or below
19    ground environmental contamination, including, but not
20    limited to parking lots and other concrete or asphalt
21    barriers, and the clearing and grading of land;
22        (3) Costs of rehabilitation, reconstruction or repair
23    or remodeling of existing public or private buildings,
24    fixtures, and leasehold improvements; and the cost of
25    replacing an existing public building if pursuant to the
26    implementation of a redevelopment project the existing

 

 

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1    public building is to be demolished to use the site for
2    private investment or devoted to a different use requiring
3    private investment; including any direct or indirect costs
4    relating to Green Globes or LEED certified construction
5    elements or construction elements with an equivalent
6    certification;
7        (4) Costs of the construction of public works or
8    improvements, including any direct or indirect costs
9    relating to Green Globes or LEED certified construction
10    elements or construction elements with an equivalent
11    certification, except that on and after November 1, 1999,
12    redevelopment project costs shall not include the cost of
13    constructing a new municipal public building principally
14    used to provide offices, storage space, or conference
15    facilities or vehicle storage, maintenance, or repair for
16    administrative, public safety, or public works personnel
17    and that is not intended to replace an existing public
18    building as provided under paragraph (3) of subsection (q)
19    of Section 11-74.4-3 unless either (i) the construction of
20    the new municipal building implements a redevelopment
21    project that was included in a redevelopment plan that was
22    adopted by the municipality prior to November 1, 1999 or
23    (ii) the municipality makes a reasonable determination in
24    the redevelopment plan, supported by information that
25    provides the basis for that determination, that the new
26    municipal building is required to meet an increase in the

 

 

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1    need for public safety purposes anticipated to result from
2    the implementation of the redevelopment plan;
3        (5) Costs of job training and retraining projects,
4    including the cost of "welfare to work" programs
5    implemented by businesses located within the redevelopment
6    project area;
7        (6) Financing costs, including but not limited to all
8    necessary and incidental expenses related to the issuance
9    of obligations and which may include payment of interest on
10    any obligations issued hereunder including interest
11    accruing during the estimated period of construction of any
12    redevelopment project for which such obligations are
13    issued and for not exceeding 36 months thereafter and
14    including reasonable reserves related thereto;
15        (7) To the extent the municipality by written agreement
16    accepts and approves the same, all or a portion of a taxing
17    district's capital costs resulting from the redevelopment
18    project necessarily incurred or to be incurred within a
19    taxing district in furtherance of the objectives of the
20    redevelopment plan and project.
21        (7.5) For redevelopment project areas designated (or
22    redevelopment project areas amended to add or increase the
23    number of tax-increment-financing assisted housing units)
24    on or after November 1, 1999, an elementary, secondary, or
25    unit school district's increased costs attributable to
26    assisted housing units located within the redevelopment

 

 

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1    project area for which the developer or redeveloper
2    receives financial assistance through an agreement with
3    the municipality or because the municipality incurs the
4    cost of necessary infrastructure improvements within the
5    boundaries of the assisted housing sites necessary for the
6    completion of that housing as authorized by this Act, and
7    which costs shall be paid by the municipality from the
8    Special Tax Allocation Fund when the tax increment revenue
9    is received as a result of the assisted housing units and
10    shall be calculated annually as follows:
11            (A) for foundation districts, excluding any school
12        district in a municipality with a population in excess
13        of 1,000,000, by multiplying the district's increase
14        in attendance resulting from the net increase in new
15        students enrolled in that school district who reside in
16        housing units within the redevelopment project area
17        that have received financial assistance through an
18        agreement with the municipality or because the
19        municipality incurs the cost of necessary
20        infrastructure improvements within the boundaries of
21        the housing sites necessary for the completion of that
22        housing as authorized by this Act since the designation
23        of the redevelopment project area by the most recently
24        available per capita tuition cost as defined in Section
25        10-20.12a of the School Code less any increase in
26        general State aid as defined in Section 18-8.05 of the

 

 

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1        School Code or primary State aid as defined in Section
2        18-8.15 of the School Code attributable to these added
3        new students subject to the following annual
4        limitations:
5                (i) for unit school districts with a district
6            average 1995-96 Per Capita Tuition Charge of less
7            than $5,900, no more than 25% of the total amount
8            of property tax increment revenue produced by
9            those housing units that have received tax
10            increment finance assistance under this Act;
11                (ii) for elementary school districts with a
12            district average 1995-96 Per Capita Tuition Charge
13            of less than $5,900, no more than 17% of the total
14            amount of property tax increment revenue produced
15            by those housing units that have received tax
16            increment finance assistance under this Act; and
17                (iii) for secondary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 8% of the total
20            amount of property tax increment revenue produced
21            by those housing units that have received tax
22            increment finance assistance under this Act.
23            (B) For alternate method districts, flat grant
24        districts, and foundation districts with a district
25        average 1995-96 Per Capita Tuition Charge equal to or
26        more than $5,900, excluding any school district with a

 

 

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1        population in excess of 1,000,000, by multiplying the
2        district's increase in attendance resulting from the
3        net increase in new students enrolled in that school
4        district who reside in housing units within the
5        redevelopment project area that have received
6        financial assistance through an agreement with the
7        municipality or because the municipality incurs the
8        cost of necessary infrastructure improvements within
9        the boundaries of the housing sites necessary for the
10        completion of that housing as authorized by this Act
11        since the designation of the redevelopment project
12        area by the most recently available per capita tuition
13        cost as defined in Section 10-20.12a of the School Code
14        less any increase in general state aid as defined in
15        Section 18-8.05 of the School Code or primary State aid
16        as defined in Section 18-8.15 of the School Code
17        attributable to these added new students subject to the
18        following annual limitations:
19                (i) for unit school districts, no more than 40%
20            of the total amount of property tax increment
21            revenue produced by those housing units that have
22            received tax increment finance assistance under
23            this Act;
24                (ii) for elementary school districts, no more
25            than 27% of the total amount of property tax
26            increment revenue produced by those housing units

 

 

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1            that have received tax increment finance
2            assistance under this Act; and
3                (iii) for secondary school districts, no more
4            than 13% of the total amount of property tax
5            increment revenue produced by those housing units
6            that have received tax increment finance
7            assistance under this Act.
8            (C) For any school district in a municipality with
9        a population in excess of 1,000,000, the following
10        restrictions shall apply to the reimbursement of
11        increased costs under this paragraph (7.5):
12                (i) no increased costs shall be reimbursed
13            unless the school district certifies that each of
14            the schools affected by the assisted housing
15            project is at or over its student capacity;
16                (ii) the amount reimbursable shall be reduced
17            by the value of any land donated to the school
18            district by the municipality or developer, and by
19            the value of any physical improvements made to the
20            schools by the municipality or developer; and
21                (iii) the amount reimbursed may not affect
22            amounts otherwise obligated by the terms of any
23            bonds, notes, or other funding instruments, or the
24            terms of any redevelopment agreement.
25        Any school district seeking payment under this
26        paragraph (7.5) shall, after July 1 and before

 

 

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1        September 30 of each year, provide the municipality
2        with reasonable evidence to support its claim for
3        reimbursement before the municipality shall be
4        required to approve or make the payment to the school
5        district. If the school district fails to provide the
6        information during this period in any year, it shall
7        forfeit any claim to reimbursement for that year.
8        School districts may adopt a resolution waiving the
9        right to all or a portion of the reimbursement
10        otherwise required by this paragraph (7.5). By
11        acceptance of this reimbursement the school district
12        waives the right to directly or indirectly set aside,
13        modify, or contest in any manner the establishment of
14        the redevelopment project area or projects;
15        (7.7) For redevelopment project areas designated (or
16    redevelopment project areas amended to add or increase the
17    number of tax-increment-financing assisted housing units)
18    on or after January 1, 2005 (the effective date of Public
19    Act 93-961), a public library district's increased costs
20    attributable to assisted housing units located within the
21    redevelopment project area for which the developer or
22    redeveloper receives financial assistance through an
23    agreement with the municipality or because the
24    municipality incurs the cost of necessary infrastructure
25    improvements within the boundaries of the assisted housing
26    sites necessary for the completion of that housing as

 

 

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1    authorized by this Act shall be paid to the library
2    district by the municipality from the Special Tax
3    Allocation Fund when the tax increment revenue is received
4    as a result of the assisted housing units. This paragraph
5    (7.7) applies only if (i) the library district is located
6    in a county that is subject to the Property Tax Extension
7    Limitation Law or (ii) the library district is not located
8    in a county that is subject to the Property Tax Extension
9    Limitation Law but the district is prohibited by any other
10    law from increasing its tax levy rate without a prior voter
11    referendum.
12        The amount paid to a library district under this
13    paragraph (7.7) shall be calculated by multiplying (i) the
14    net increase in the number of persons eligible to obtain a
15    library card in that district who reside in housing units
16    within the redevelopment project area that have received
17    financial assistance through an agreement with the
18    municipality or because the municipality incurs the cost of
19    necessary infrastructure improvements within the
20    boundaries of the housing sites necessary for the
21    completion of that housing as authorized by this Act since
22    the designation of the redevelopment project area by (ii)
23    the per-patron cost of providing library services so long
24    as it does not exceed $120. The per-patron cost shall be
25    the Total Operating Expenditures Per Capita for the library
26    in the previous fiscal year. The municipality may deduct

 

 

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1    from the amount that it must pay to a library district
2    under this paragraph any amount that it has voluntarily
3    paid to the library district from the tax increment
4    revenue. The amount paid to a library district under this
5    paragraph (7.7) shall be no more than 2% of the amount
6    produced by the assisted housing units and deposited into
7    the Special Tax Allocation Fund.
8        A library district is not eligible for any payment
9    under this paragraph (7.7) unless the library district has
10    experienced an increase in the number of patrons from the
11    municipality that created the tax-increment-financing
12    district since the designation of the redevelopment
13    project area.
14        Any library district seeking payment under this
15    paragraph (7.7) shall, after July 1 and before September 30
16    of each year, provide the municipality with convincing
17    evidence to support its claim for reimbursement before the
18    municipality shall be required to approve or make the
19    payment to the library district. If the library district
20    fails to provide the information during this period in any
21    year, it shall forfeit any claim to reimbursement for that
22    year. Library districts may adopt a resolution waiving the
23    right to all or a portion of the reimbursement otherwise
24    required by this paragraph (7.7). By acceptance of such
25    reimbursement, the library district shall forfeit any
26    right to directly or indirectly set aside, modify, or

 

 

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1    contest in any manner whatsoever the establishment of the
2    redevelopment project area or projects;
3        (8) Relocation costs to the extent that a municipality
4    determines that relocation costs shall be paid or is
5    required to make payment of relocation costs by federal or
6    State law or in order to satisfy subparagraph (7) of
7    subsection (n);
8        (9) Payment in lieu of taxes;
9        (10) Costs of job training, retraining, advanced
10    vocational education or career education, including but
11    not limited to courses in occupational, semi-technical or
12    technical fields leading directly to employment, incurred
13    by one or more taxing districts, provided that such costs
14    (i) are related to the establishment and maintenance of
15    additional job training, advanced vocational education or
16    career education programs for persons employed or to be
17    employed by employers located in a redevelopment project
18    area; and (ii) when incurred by a taxing district or taxing
19    districts other than the municipality, are set forth in a
20    written agreement by or among the municipality and the
21    taxing district or taxing districts, which agreement
22    describes the program to be undertaken, including but not
23    limited to the number of employees to be trained, a
24    description of the training and services to be provided,
25    the number and type of positions available or to be
26    available, itemized costs of the program and sources of

 

 

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1    funds to pay for the same, and the term of the agreement.
2    Such costs include, specifically, the payment by community
3    college districts of costs pursuant to Sections 3-37, 3-38,
4    3-40 and 3-40.1 of the Public Community College Act and by
5    school districts of costs pursuant to Sections 10-22.20a
6    and 10-23.3a of The School Code;
7        (11) Interest cost incurred by a redeveloper related to
8    the construction, renovation or rehabilitation of a
9    redevelopment project provided that:
10            (A) such costs are to be paid directly from the
11        special tax allocation fund established pursuant to
12        this Act;
13            (B) such payments in any one year may not exceed
14        30% of the annual interest costs incurred by the
15        redeveloper with regard to the redevelopment project
16        during that year;
17            (C) if there are not sufficient funds available in
18        the special tax allocation fund to make the payment
19        pursuant to this paragraph (11) then the amounts so due
20        shall accrue and be payable when sufficient funds are
21        available in the special tax allocation fund;
22            (D) the total of such interest payments paid
23        pursuant to this Act may not exceed 30% of the total
24        (i) cost paid or incurred by the redeveloper for the
25        redevelopment project plus (ii) redevelopment project
26        costs excluding any property assembly costs and any

 

 

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1        relocation costs incurred by a municipality pursuant
2        to this Act; and
3            (E) the cost limits set forth in subparagraphs (B)
4        and (D) of paragraph (11) shall be modified for the
5        financing of rehabilitated or new housing units for
6        low-income households and very low-income households,
7        as defined in Section 3 of the Illinois Affordable
8        Housing Act. The percentage of 75% shall be substituted
9        for 30% in subparagraphs (B) and (D) of paragraph (11).
10            (F) Instead of the eligible costs provided by
11        subparagraphs (B) and (D) of paragraph (11), as
12        modified by this subparagraph, and notwithstanding any
13        other provisions of this Act to the contrary, the
14        municipality may pay from tax increment revenues up to
15        50% of the cost of construction of new housing units to
16        be occupied by low-income households and very
17        low-income households as defined in Section 3 of the
18        Illinois Affordable Housing Act. The cost of
19        construction of those units may be derived from the
20        proceeds of bonds issued by the municipality under this
21        Act or other constitutional or statutory authority or
22        from other sources of municipal revenue that may be
23        reimbursed from tax increment revenues or the proceeds
24        of bonds issued to finance the construction of that
25        housing.
26            The eligible costs provided under this

 

 

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1        subparagraph (F) of paragraph (11) shall be an eligible
2        cost for the construction, renovation, and
3        rehabilitation of all low and very low-income housing
4        units, as defined in Section 3 of the Illinois
5        Affordable Housing Act, within the redevelopment
6        project area. If the low and very low-income units are
7        part of a residential redevelopment project that
8        includes units not affordable to low and very
9        low-income households, only the low and very
10        low-income units shall be eligible for benefits under
11        subparagraph (F) of paragraph (11). The standards for
12        maintaining the occupancy by low-income households and
13        very low-income households, as defined in Section 3 of
14        the Illinois Affordable Housing Act, of those units
15        constructed with eligible costs made available under
16        the provisions of this subparagraph (F) of paragraph
17        (11) shall be established by guidelines adopted by the
18        municipality. The responsibility for annually
19        documenting the initial occupancy of the units by
20        low-income households and very low-income households,
21        as defined in Section 3 of the Illinois Affordable
22        Housing Act, shall be that of the then current owner of
23        the property. For ownership units, the guidelines will
24        provide, at a minimum, for a reasonable recapture of
25        funds, or other appropriate methods designed to
26        preserve the original affordability of the ownership

 

 

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1        units. For rental units, the guidelines will provide,
2        at a minimum, for the affordability of rent to low and
3        very low-income households. As units become available,
4        they shall be rented to income-eligible tenants. The
5        municipality may modify these guidelines from time to
6        time; the guidelines, however, shall be in effect for
7        as long as tax increment revenue is being used to pay
8        for costs associated with the units or for the
9        retirement of bonds issued to finance the units or for
10        the life of the redevelopment project area, whichever
11        is later.
12        (11.5) If the redevelopment project area is located
13    within a municipality with a population of more than
14    100,000, the cost of day care services for children of
15    employees from low-income families working for businesses
16    located within the redevelopment project area and all or a
17    portion of the cost of operation of day care centers
18    established by redevelopment project area businesses to
19    serve employees from low-income families working in
20    businesses located in the redevelopment project area. For
21    the purposes of this paragraph, "low-income families"
22    means families whose annual income does not exceed 80% of
23    the municipal, county, or regional median income, adjusted
24    for family size, as the annual income and municipal,
25    county, or regional median income are determined from time
26    to time by the United States Department of Housing and

 

 

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1    Urban Development.
2        (12) Unless explicitly stated herein the cost of
3    construction of new privately-owned buildings shall not be
4    an eligible redevelopment project cost.
5        (13) After November 1, 1999 (the effective date of
6    Public Act 91-478), none of the redevelopment project costs
7    enumerated in this subsection shall be eligible
8    redevelopment project costs if those costs would provide
9    direct financial support to a retail entity initiating
10    operations in the redevelopment project area while
11    terminating operations at another Illinois location within
12    10 miles of the redevelopment project area but outside the
13    boundaries of the redevelopment project area municipality.
14    For purposes of this paragraph, termination means a closing
15    of a retail operation that is directly related to the
16    opening of the same operation or like retail entity owned
17    or operated by more than 50% of the original ownership in a
18    redevelopment project area, but it does not mean closing an
19    operation for reasons beyond the control of the retail
20    entity, as documented by the retail entity, subject to a
21    reasonable finding by the municipality that the current
22    location contained inadequate space, had become
23    economically obsolete, or was no longer a viable location
24    for the retailer or serviceman.
25        (14) No cost shall be a redevelopment project cost in a
26    redevelopment project area if used to demolish, remove, or

 

 

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1    substantially modify a historic resource, after August 26,
2    2008 (the effective date of Public Act 95-934), unless no
3    prudent and feasible alternative exists. "Historic
4    resource" for the purpose of this item (14) means (i) a
5    place or structure that is included or eligible for
6    inclusion on the National Register of Historic Places or
7    (ii) a contributing structure in a district on the National
8    Register of Historic Places. This item (14) does not apply
9    to a place or structure for which demolition, removal, or
10    modification is subject to review by the preservation
11    agency of a Certified Local Government designated as such
12    by the National Park Service of the United States
13    Department of the Interior.
14    If a special service area has been established pursuant to
15the Special Service Area Tax Act or Special Service Area Tax
16Law, then any tax increment revenues derived from the tax
17imposed pursuant to the Special Service Area Tax Act or Special
18Service Area Tax Law may be used within the redevelopment
19project area for the purposes permitted by that Act or Law as
20well as the purposes permitted by this Act.
21    (q-1) For redevelopment project areas created pursuant to
22subsection (p-1), redevelopment project costs are limited to
23those costs in paragraph (q) that are related to the existing
24or proposed Regional Transportation Authority Suburban Transit
25Access Route (STAR Line) station.
26    (r) "State Sales Tax Boundary" means the redevelopment

 

 

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1project area or the amended redevelopment project area
2boundaries which are determined pursuant to subsection (9) of
3Section 11-74.4-8a of this Act. The Department of Revenue shall
4certify pursuant to subsection (9) of Section 11-74.4-8a the
5appropriate boundaries eligible for the determination of State
6Sales Tax Increment.
7    (s) "State Sales Tax Increment" means an amount equal to
8the increase in the aggregate amount of taxes paid by retailers
9and servicemen, other than retailers and servicemen subject to
10the Public Utilities Act, on transactions at places of business
11located within a State Sales Tax Boundary pursuant to the
12Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
13Tax Act, and the Service Occupation Tax Act, except such
14portion of such increase that is paid into the State and Local
15Sales Tax Reform Fund, the Local Government Distributive Fund,
16the Local Government Tax Fund and the County and Mass Transit
17District Fund, for as long as State participation exists, over
18and above the Initial Sales Tax Amounts, Adjusted Initial Sales
19Tax Amounts or the Revised Initial Sales Tax Amounts for such
20taxes as certified by the Department of Revenue and paid under
21those Acts by retailers and servicemen on transactions at
22places of business located within the State Sales Tax Boundary
23during the base year which shall be the calendar year
24immediately prior to the year in which the municipality adopted
25tax increment allocation financing, less 3.0% of such amounts
26generated under the Retailers' Occupation Tax Act, Use Tax Act

 

 

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1and Service Use Tax Act and the Service Occupation Tax Act,
2which sum shall be appropriated to the Department of Revenue to
3cover its costs of administering and enforcing this Section.
4For purposes of computing the aggregate amount of such taxes
5for base years occurring prior to 1985, the Department of
6Revenue shall compute the Initial Sales Tax Amount for such
7taxes and deduct therefrom an amount equal to 4% of the
8aggregate amount of taxes per year for each year the base year
9is prior to 1985, but not to exceed a total deduction of 12%.
10The amount so determined shall be known as the "Adjusted
11Initial Sales Tax Amount". For purposes of determining the
12State Sales Tax Increment the Department of Revenue shall for
13each period subtract from the tax amounts received from
14retailers and servicemen on transactions located in the State
15Sales Tax Boundary, the certified Initial Sales Tax Amounts,
16Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
17Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
18the Service Use Tax Act and the Service Occupation Tax Act. For
19the State Fiscal Year 1989 this calculation shall be made by
20utilizing the calendar year 1987 to determine the tax amounts
21received. For the State Fiscal Year 1990, this calculation
22shall be made by utilizing the period from January 1, 1988,
23until September 30, 1988, to determine the tax amounts received
24from retailers and servicemen, which shall have deducted
25therefrom nine-twelfths of the certified Initial Sales Tax
26Amounts, Adjusted Initial Sales Tax Amounts or the Revised

 

 

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1Initial Sales Tax Amounts as appropriate. For the State Fiscal
2Year 1991, this calculation shall be made by utilizing the
3period from October 1, 1988, until June 30, 1989, to determine
4the tax amounts received from retailers and servicemen, which
5shall have deducted therefrom nine-twelfths of the certified
6Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
7Amounts or the Revised Initial Sales Tax Amounts as
8appropriate. For every State Fiscal Year thereafter, the
9applicable period shall be the 12 months beginning July 1 and
10ending on June 30, to determine the tax amounts received which
11shall have deducted therefrom the certified Initial Sales Tax
12Amounts, Adjusted Initial Sales Tax Amounts or the Revised
13Initial Sales Tax Amounts. Municipalities intending to receive
14a distribution of State Sales Tax Increment must report a list
15of retailers to the Department of Revenue by October 31, 1988
16and by July 31, of each year thereafter.
17    (t) "Taxing districts" means counties, townships, cities
18and incorporated towns and villages, school, road, park,
19sanitary, mosquito abatement, forest preserve, public health,
20fire protection, river conservancy, tuberculosis sanitarium
21and any other municipal corporations or districts with the
22power to levy taxes.
23    (u) "Taxing districts' capital costs" means those costs of
24taxing districts for capital improvements that are found by the
25municipal corporate authorities to be necessary and directly
26result from the redevelopment project.

 

 

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1    (v) As used in subsection (a) of Section 11-74.4-3 of this
2Act, "vacant land" means any parcel or combination of parcels
3of real property without industrial, commercial, and
4residential buildings which has not been used for commercial
5agricultural purposes within 5 years prior to the designation
6of the redevelopment project area, unless the parcel is
7included in an industrial park conservation area or the parcel
8has been subdivided; provided that if the parcel was part of a
9larger tract that has been divided into 3 or more smaller
10tracts that were accepted for recording during the period from
111950 to 1990, then the parcel shall be deemed to have been
12subdivided, and all proceedings and actions of the municipality
13taken in that connection with respect to any previously
14approved or designated redevelopment project area or amended
15redevelopment project area are hereby validated and hereby
16declared to be legally sufficient for all purposes of this Act.
17For purposes of this Section and only for land subject to the
18subdivision requirements of the Plat Act, land is subdivided
19when the original plat of the proposed Redevelopment Project
20Area or relevant portion thereof has been properly certified,
21acknowledged, approved, and recorded or filed in accordance
22with the Plat Act and a preliminary plat, if any, for any
23subsequent phases of the proposed Redevelopment Project Area or
24relevant portion thereof has been properly approved and filed
25in accordance with the applicable ordinance of the
26municipality.

 

 

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1    (w) "Annual Total Increment" means the sum of each
2municipality's annual Net Sales Tax Increment and each
3municipality's annual Net Utility Tax Increment. The ratio of
4the Annual Total Increment of each municipality to the Annual
5Total Increment for all municipalities, as most recently
6calculated by the Department, shall determine the proportional
7shares of the Illinois Tax Increment Fund to be distributed to
8each municipality.
9    (x) "LEED certified" means any certification level of
10construction elements by a qualified Leadership in Energy and
11Environmental Design Accredited Professional as determined by
12the U.S. Green Building Council.
13    (y) "Green Globes certified" means any certification level
14of construction elements by a qualified Green Globes
15Professional as determined by the Green Building Initiative.
16(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
1796-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
181-1-12.)
 
19    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
20    Sec. 11-74.4-8. Tax increment allocation financing. A
21municipality may not adopt tax increment financing in a
22redevelopment project area after the effective date of this
23amendatory Act of 1997 that will encompass an area that is
24currently included in an enterprise zone created under the
25Illinois Enterprise Zone Act unless that municipality,

 

 

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1pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
2amends the enterprise zone designating ordinance to limit the
3eligibility for tax abatements as provided in Section 5.4.1 of
4the Illinois Enterprise Zone Act. A municipality, at the time a
5redevelopment project area is designated, may adopt tax
6increment allocation financing by passing an ordinance
7providing that the ad valorem taxes, if any, arising from the
8levies upon taxable real property in such redevelopment project
9area by taxing districts and tax rates determined in the manner
10provided in paragraph (c) of Section 11-74.4-9 each year after
11the effective date of the ordinance until redevelopment project
12costs and all municipal obligations financing redevelopment
13project costs incurred under this Division have been paid shall
14be divided as follows:
15    (a) That portion of taxes levied upon each taxable lot,
16block, tract or parcel of real property which is attributable
17to the lower of the current equalized assessed value or the
18initial equalized assessed value of each such taxable lot,
19block, tract or parcel of real property in the redevelopment
20project area shall be allocated to and when collected shall be
21paid by the county collector to the respective affected taxing
22districts in the manner required by law in the absence of the
23adoption of tax increment allocation financing.
24    (b) Except from a tax levied by a township to retire bonds
25issued to satisfy court-ordered damages, that portion, if any,
26of such taxes which is attributable to the increase in the

 

 

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1current equalized assessed valuation of each taxable lot,
2block, tract or parcel of real property in the redevelopment
3project area over and above the initial equalized assessed
4value of each property in the project area shall be allocated
5to and when collected shall be paid to the municipal treasurer
6who shall deposit said taxes into a special fund called the
7special tax allocation fund of the municipality for the purpose
8of paying redevelopment project costs and obligations incurred
9in the payment thereof. In any county with a population of
103,000,000 or more that has adopted a procedure for collecting
11taxes that provides for one or more of the installments of the
12taxes to be billed and collected on an estimated basis, the
13municipal treasurer shall be paid for deposit in the special
14tax allocation fund of the municipality, from the taxes
15collected from estimated bills issued for property in the
16redevelopment project area, the difference between the amount
17actually collected from each taxable lot, block, tract, or
18parcel of real property within the redevelopment project area
19and an amount determined by multiplying the rate at which taxes
20were last extended against the taxable lot, block, track, or
21parcel of real property in the manner provided in subsection
22(c) of Section 11-74.4-9 by the initial equalized assessed
23value of the property divided by the number of installments in
24which real estate taxes are billed and collected within the
25county; provided that the payments on or before December 31,
261999 to a municipal treasurer shall be made only if each of the

 

 

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1following conditions are met:
2        (1) The total equalized assessed value of the
3    redevelopment project area as last determined was not less
4    than 175% of the total initial equalized assessed value.
5        (2) Not more than 50% of the total equalized assessed
6    value of the redevelopment project area as last determined
7    is attributable to a piece of property assigned a single
8    real estate index number.
9        (3) The municipal clerk has certified to the county
10    clerk that the municipality has issued its obligations to
11    which there has been pledged the incremental property taxes
12    of the redevelopment project area or taxes levied and
13    collected on any or all property in the municipality or the
14    full faith and credit of the municipality to pay or secure
15    payment for all or a portion of the redevelopment project
16    costs. The certification shall be filed annually no later
17    than September 1 for the estimated taxes to be distributed
18    in the following year; however, for the year 1992 the
19    certification shall be made at any time on or before March
20    31, 1992.
21        (4) The municipality has not requested that the total
22    initial equalized assessed value of real property be
23    adjusted as provided in subsection (b) of Section
24    11-74.4-9.
25    The conditions of paragraphs (1) through (4) do not apply
26after December 31, 1999 to payments to a municipal treasurer

 

 

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1made by a county with 3,000,000 or more inhabitants that has
2adopted an estimated billing procedure for collecting taxes. If
3a county that has adopted the estimated billing procedure makes
4an erroneous overpayment of tax revenue to the municipal
5treasurer, then the county may seek a refund of that
6overpayment. The county shall send the municipal treasurer a
7notice of liability for the overpayment on or before the
8mailing date of the next real estate tax bill within the
9county. The refund shall be limited to the amount of the
10overpayment.
11    It is the intent of this Division that after the effective
12date of this amendatory Act of 1988 a municipality's own ad
13valorem tax arising from levies on taxable real property be
14included in the determination of incremental revenue in the
15manner provided in paragraph (c) of Section 11-74.4-9. If the
16municipality does not extend such a tax, it shall annually
17deposit in the municipality's Special Tax Increment Fund an
18amount equal to 10% of the total contributions to the fund from
19all other taxing districts in that year. The annual 10% deposit
20required by this paragraph shall be limited to the actual
21amount of municipally produced incremental tax revenues
22available to the municipality from taxpayers located in the
23redevelopment project area in that year if: (a) the plan for
24the area restricts the use of the property primarily to
25industrial purposes, (b) the municipality establishing the
26redevelopment project area is a home-rule community with a 1990

 

 

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1population of between 25,000 and 50,000, (c) the municipality
2is wholly located within a county with a 1990 population of
3over 750,000 and (d) the redevelopment project area was
4established by the municipality prior to June 1, 1990. This
5payment shall be in lieu of a contribution of ad valorem taxes
6on real property. If no such payment is made, any redevelopment
7project area of the municipality shall be dissolved.
8    If a municipality has adopted tax increment allocation
9financing by ordinance and the County Clerk thereafter
10certifies the "total initial equalized assessed value as
11adjusted" of the taxable real property within such
12redevelopment project area in the manner provided in paragraph
13(b) of Section 11-74.4-9, each year after the date of the
14certification of the total initial equalized assessed value as
15adjusted until redevelopment project costs and all municipal
16obligations financing redevelopment project costs have been
17paid the ad valorem taxes, if any, arising from the levies upon
18the taxable real property in such redevelopment project area by
19taxing districts and tax rates determined in the manner
20provided in paragraph (c) of Section 11-74.4-9 shall be divided
21as follows:
22        (1) That portion of the taxes levied upon each taxable
23    lot, block, tract or parcel of real property which is
24    attributable to the lower of the current equalized assessed
25    value or "current equalized assessed value as adjusted" or
26    the initial equalized assessed value of each such taxable

 

 

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1    lot, block, tract, or parcel of real property existing at
2    the time tax increment financing was adopted, minus the
3    total current homestead exemptions under Article 15 of the
4    Property Tax Code in the redevelopment project area shall
5    be allocated to and when collected shall be paid by the
6    county collector to the respective affected taxing
7    districts in the manner required by law in the absence of
8    the adoption of tax increment allocation financing.
9        (2) That portion, if any, of such taxes which is
10    attributable to the increase in the current equalized
11    assessed valuation of each taxable lot, block, tract, or
12    parcel of real property in the redevelopment project area,
13    over and above the initial equalized assessed value of each
14    property existing at the time tax increment financing was
15    adopted, minus the total current homestead exemptions
16    pertaining to each piece of property provided by Article 15
17    of the Property Tax Code in the redevelopment project area,
18    shall be allocated to and when collected shall be paid to
19    the municipal Treasurer, who shall deposit said taxes into
20    a special fund called the special tax allocation fund of
21    the municipality for the purpose of paying redevelopment
22    project costs and obligations incurred in the payment
23    thereof.
24    The municipality may pledge in the ordinance the funds in
25and to be deposited in the special tax allocation fund for the
26payment of such costs and obligations. No part of the current

 

 

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1equalized assessed valuation of each property in the
2redevelopment project area attributable to any increase above
3the total initial equalized assessed value, or the total
4initial equalized assessed value as adjusted, of such
5properties shall be used in calculating the general State
6school aid formula, provided for in Section 18-8 of the School
7Code, or the primary State aid formula, provided for in Section
818-8.15 of the School Code, until such time as all
9redevelopment project costs have been paid as provided for in
10this Section.
11    Whenever a municipality issues bonds for the purpose of
12financing redevelopment project costs, such municipality may
13provide by ordinance for the appointment of a trustee, which
14may be any trust company within the State, and for the
15establishment of such funds or accounts to be maintained by
16such trustee as the municipality shall deem necessary to
17provide for the security and payment of the bonds. If such
18municipality provides for the appointment of a trustee, such
19trustee shall be considered the assignee of any payments
20assigned by the municipality pursuant to such ordinance and
21this Section. Any amounts paid to such trustee as assignee
22shall be deposited in the funds or accounts established
23pursuant to such trust agreement, and shall be held by such
24trustee in trust for the benefit of the holders of the bonds,
25and such holders shall have a lien on and a security interest
26in such funds or accounts so long as the bonds remain

 

 

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1outstanding and unpaid. Upon retirement of the bonds, the
2trustee shall pay over any excess amounts held to the
3municipality for deposit in the special tax allocation fund.
4    When such redevelopment projects costs, including without
5limitation all municipal obligations financing redevelopment
6project costs incurred under this Division, have been paid, all
7surplus funds then remaining in the special tax allocation fund
8shall be distributed by being paid by the municipal treasurer
9to the Department of Revenue, the municipality and the county
10collector; first to the Department of Revenue and the
11municipality in direct proportion to the tax incremental
12revenue received from the State and the municipality, but not
13to exceed the total incremental revenue received from the State
14or the municipality less any annual surplus distribution of
15incremental revenue previously made; with any remaining funds
16to be paid to the County Collector who shall immediately
17thereafter pay said funds to the taxing districts in the
18redevelopment project area in the same manner and proportion as
19the most recent distribution by the county collector to the
20affected districts of real property taxes from real property in
21the redevelopment project area.
22    Upon the payment of all redevelopment project costs, the
23retirement of obligations, the distribution of any excess
24monies pursuant to this Section, and final closing of the books
25and records of the redevelopment project area, the municipality
26shall adopt an ordinance dissolving the special tax allocation

 

 

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1fund for the redevelopment project area and terminating the
2designation of the redevelopment project area as a
3redevelopment project area. Title to real or personal property
4and public improvements acquired by or for the municipality as
5a result of the redevelopment project and plan shall vest in
6the municipality when acquired and shall continue to be held by
7the municipality after the redevelopment project area has been
8terminated. Municipalities shall notify affected taxing
9districts prior to November 1 if the redevelopment project area
10is to be terminated by December 31 of that same year. If a
11municipality extends estimated dates of completion of a
12redevelopment project and retirement of obligations to finance
13a redevelopment project, as allowed by this amendatory Act of
141993, that extension shall not extend the property tax
15increment allocation financing authorized by this Section.
16Thereafter the rates of the taxing districts shall be extended
17and taxes levied, collected and distributed in the manner
18applicable in the absence of the adoption of tax increment
19allocation financing.
20    Nothing in this Section shall be construed as relieving
21property in such redevelopment project areas from being
22assessed as provided in the Property Tax Code or as relieving
23owners of such property from paying a uniform rate of taxes, as
24required by Section 4 of Article IX of the Illinois
25Constitution.
26(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

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1    (65 ILCS 5/11-74.6-35)
2    Sec. 11-74.6-35. Ordinance for tax increment allocation
3financing.
4    (a) A municipality, at the time a redevelopment project
5area is designated, may adopt tax increment allocation
6financing by passing an ordinance providing that the ad valorem
7taxes, if any, arising from the levies upon taxable real
8property within the redevelopment project area by taxing
9districts and tax rates determined in the manner provided in
10subsection (b) of Section 11-74.6-40 each year after the
11effective date of the ordinance until redevelopment project
12costs and all municipal obligations financing redevelopment
13project costs incurred under this Act have been paid shall be
14divided as follows:
15        (1) That portion of the taxes levied upon each taxable
16    lot, block, tract or parcel of real property that is
17    attributable to the lower of the current equalized assessed
18    value or the initial equalized assessed value or the
19    updated initial equalized assessed value of each taxable
20    lot, block, tract or parcel of real property in the
21    redevelopment project area shall be allocated to and when
22    collected shall be paid by the county collector to the
23    respective affected taxing districts in the manner
24    required by law without regard to the adoption of tax
25    increment allocation financing.

 

 

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1        (2) That portion, if any, of those taxes that is
2    attributable to the increase in the current equalized
3    assessed value of each taxable lot, block, tract or parcel
4    of real property in the redevelopment project area, over
5    and above the initial equalized assessed value or the
6    updated initial equalized assessed value of each property
7    in the project area, shall be allocated to and when
8    collected shall be paid by the county collector to the
9    municipal treasurer who shall deposit that portion of those
10    taxes into a special fund called the special tax allocation
11    fund of the municipality for the purpose of paying
12    redevelopment project costs and obligations incurred in
13    the payment of those costs and obligations. In any county
14    with a population of 3,000,000 or more that has adopted a
15    procedure for collecting taxes that provides for one or
16    more of the installments of the taxes to be billed and
17    collected on an estimated basis, the municipal treasurer
18    shall be paid for deposit in the special tax allocation
19    fund of the municipality, from the taxes collected from
20    estimated bills issued for property in the redevelopment
21    project area, the difference between the amount actually
22    collected from each taxable lot, block, tract, or parcel of
23    real property within the redevelopment project area and an
24    amount determined by multiplying the rate at which taxes
25    were last extended against the taxable lot, block, track,
26    or parcel of real property in the manner provided in

 

 

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1    subsection (b) of Section 11-74.6-40 by the initial
2    equalized assessed value or the updated initial equalized
3    assessed value of the property divided by the number of
4    installments in which real estate taxes are billed and
5    collected within the county, provided that the payments on
6    or before December 31, 1999 to a municipal treasurer shall
7    be made only if each of the following conditions are met:
8            (A) The total equalized assessed value of the
9        redevelopment project area as last determined was not
10        less than 175% of the total initial equalized assessed
11        value.
12            (B) Not more than 50% of the total equalized
13        assessed value of the redevelopment project area as
14        last determined is attributable to a piece of property
15        assigned a single real estate index number.
16            (C) The municipal clerk has certified to the county
17        clerk that the municipality has issued its obligations
18        to which there has been pledged the incremental
19        property taxes of the redevelopment project area or
20        taxes levied and collected on any or all property in
21        the municipality or the full faith and credit of the
22        municipality to pay or secure payment for all or a
23        portion of the redevelopment project costs. The
24        certification shall be filed annually no later than
25        September 1 for the estimated taxes to be distributed
26        in the following year.

 

 

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1    The conditions of paragraphs (A) through (C) do not apply
2after December 31, 1999 to payments to a municipal treasurer
3made by a county with 3,000,000 or more inhabitants that has
4adopted an estimated billing procedure for collecting taxes. If
5a county that has adopted the estimated billing procedure makes
6an erroneous overpayment of tax revenue to the municipal
7treasurer, then the county may seek a refund of that
8overpayment. The county shall send the municipal treasurer a
9notice of liability for the overpayment on or before the
10mailing date of the next real estate tax bill within the
11county. The refund shall be limited to the amount of the
12overpayment.
13    (b) It is the intent of this Act that a municipality's own
14ad valorem tax arising from levies on taxable real property be
15included in the determination of incremental revenue in the
16manner provided in paragraph (b) of Section 11-74.6-40.
17    (c) If a municipality has adopted tax increment allocation
18financing for a redevelopment project area by ordinance and the
19county clerk thereafter certifies the total initial equalized
20assessed value or the total updated initial equalized assessed
21value of the taxable real property within such redevelopment
22project area in the manner provided in paragraph (a) or (b) of
23Section 11-74.6-40, each year after the date of the
24certification of the total initial equalized assessed value or
25the total updated initial equalized assessed value until
26redevelopment project costs and all municipal obligations

 

 

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1financing redevelopment project costs have been paid, the ad
2valorem taxes, if any, arising from the levies upon the taxable
3real property in the redevelopment project area by taxing
4districts and tax rates determined in the manner provided in
5paragraph (b) of Section 11-74.6-40 shall be divided as
6follows:
7        (1) That portion of the taxes levied upon each taxable
8    lot, block, tract or parcel of real property that is
9    attributable to the lower of the current equalized assessed
10    value or the initial equalized assessed value, or the
11    updated initial equalized assessed value of each parcel if
12    the updated initial equalized assessed value of that parcel
13    has been certified in accordance with Section 11-74.6-40,
14    whichever has been most recently certified, of each taxable
15    lot, block, tract, or parcel of real property existing at
16    the time tax increment allocation financing was adopted in
17    the redevelopment project area, shall be allocated to and
18    when collected shall be paid by the county collector to the
19    respective affected taxing districts in the manner
20    required by law without regard to the adoption of tax
21    increment allocation financing.
22        (2) That portion, if any, of those taxes that is
23    attributable to the increase in the current equalized
24    assessed value of each taxable lot, block, tract, or parcel
25    of real property in the redevelopment project area, over
26    and above the initial equalized assessed value of each

 

 

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1    property existing at the time tax increment allocation
2    financing was adopted in the redevelopment project area, or
3    the updated initial equalized assessed value of each parcel
4    if the updated initial equalized assessed value of that
5    parcel has been certified in accordance with Section
6    11-74.6-40, shall be allocated to and when collected shall
7    be paid to the municipal treasurer, who shall deposit those
8    taxes into a special fund called the special tax allocation
9    fund of the municipality for the purpose of paying
10    redevelopment project costs and obligations incurred in
11    the payment thereof.
12    (d) The municipality may pledge in the ordinance the funds
13in and to be deposited in the special tax allocation fund for
14the payment of redevelopment project costs and obligations. No
15part of the current equalized assessed value of each property
16in the redevelopment project area attributable to any increase
17above the total initial equalized assessed value or the total
18initial updated equalized assessed value of the property, shall
19be used in calculating the general General State aid formula
20School Aid Formula, provided for in Section 18-8 of the School
21Code, or the primary State aid formula, provided for in Section
2218-8.15 of the School Code, until all redevelopment project
23costs have been paid as provided for in this Section.
24    Whenever a municipality issues bonds for the purpose of
25financing redevelopment project costs, that municipality may
26provide by ordinance for the appointment of a trustee, which

 

 

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1may be any trust company within the State, and for the
2establishment of any funds or accounts to be maintained by that
3trustee, as the municipality deems necessary to provide for the
4security and payment of the bonds. If the municipality provides
5for the appointment of a trustee, the trustee shall be
6considered the assignee of any payments assigned by the
7municipality under that ordinance and this Section. Any amounts
8paid to the trustee as assignee shall be deposited into the
9funds or accounts established under the trust agreement, and
10shall be held by the trustee in trust for the benefit of the
11holders of the bonds. The holders of those bonds shall have a
12lien on and a security interest in those funds or accounts
13while the bonds remain outstanding and unpaid. Upon retirement
14of the bonds, the trustee shall pay over any excess amounts
15held to the municipality for deposit in the special tax
16allocation fund.
17    When the redevelopment projects costs, including without
18limitation all municipal obligations financing redevelopment
19project costs incurred under this Law, have been paid, all
20surplus funds then remaining in the special tax allocation fund
21shall be distributed by being paid by the municipal treasurer
22to the municipality and the county collector; first to the
23municipality in direct proportion to the tax incremental
24revenue received from the municipality, but not to exceed the
25total incremental revenue received from the municipality,
26minus any annual surplus distribution of incremental revenue

 

 

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1previously made. Any remaining funds shall be paid to the
2county collector who shall immediately distribute that payment
3to the taxing districts in the redevelopment project area in
4the same manner and proportion as the most recent distribution
5by the county collector to the affected districts of real
6property taxes from real property situated in the redevelopment
7project area.
8    Upon the payment of all redevelopment project costs,
9retirement of obligations and the distribution of any excess
10moneys under this Section, the municipality shall adopt an
11ordinance dissolving the special tax allocation fund for the
12redevelopment project area and terminating the designation of
13the redevelopment project area as a redevelopment project area.
14Thereafter the tax levies of taxing districts shall be
15extended, collected and distributed in the same manner
16applicable before the adoption of tax increment allocation
17financing. Municipality shall notify affected taxing districts
18prior to November if the redevelopment project area is to be
19terminated by December 31 of that same year.
20    Nothing in this Section shall be construed as relieving
21property in a redevelopment project area from being assessed as
22provided in the Property Tax Code or as relieving owners of
23that property from paying a uniform rate of taxes, as required
24by Section 4 of Article IX of the Illinois Constitution.
25(Source: P.A. 91-474, eff. 11-1-99.)
 

 

 

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1    Section 940. The Economic Development Project Area Tax
2Increment Allocation Act of 1995 is amended by changing Section
350 as follows:
 
4    (65 ILCS 110/50)
5    Sec. 50. Special tax allocation fund.
6    (a) If a county clerk has certified the "total initial
7equalized assessed value" of the taxable real property within
8an economic development project area in the manner provided in
9Section 45, each year after the date of the certification by
10the county clerk of the "total initial equalized assessed
11value", until economic development project costs and all
12municipal obligations financing economic development project
13costs have been paid, the ad valorem taxes, if any, arising
14from the levies upon the taxable real property in the economic
15development project area by taxing districts and tax rates
16determined in the manner provided in subsection (b) of Section
1745 shall be divided as follows:
18        (1) That portion of the taxes levied upon each taxable
19    lot, block, tract, or parcel of real property that is
20    attributable to the lower of the current equalized assessed
21    value or the initial equalized assessed value of each
22    taxable lot, block, tract, or parcel of real property
23    existing at the time tax increment financing was adopted
24    shall be allocated to (and when collected shall be paid by
25    the county collector to) the respective affected taxing

 

 

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1    districts in the manner required by law in the absence of
2    the adoption of tax increment allocation financing.
3        (2) That portion, if any, of the taxes that is
4    attributable to the increase in the current equalized
5    assessed valuation of each taxable lot, block, tract, or
6    parcel of real property in the economic development project
7    area, over and above the initial equalized assessed value
8    of each property existing at the time tax increment
9    financing was adopted, shall be allocated to (and when
10    collected shall be paid to) the municipal treasurer, who
11    shall deposit the taxes into a special fund (called the
12    special tax allocation fund of the municipality) for the
13    purpose of paying economic development project costs and
14    obligations incurred in the payment of those costs.
15    (b) The municipality, by an ordinance adopting tax
16increment allocation financing, may pledge the monies in and to
17be deposited into the special tax allocation fund for the
18payment of obligations issued under this Act and for the
19payment of economic development project costs. No part of the
20current equalized assessed valuation of each property in the
21economic development project area attributable to any increase
22above the total initial equalized assessed value of those
23properties shall be used in calculating the general State
24school aid formula under Section 18-8 of the School Code or the
25primary State aid formula under Section 18-8.15 of the School
26Code, until all economic development projects costs have been

 

 

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1paid as provided for in this Section.
2    (c) When the economic development projects costs,
3including without limitation all municipal obligations
4financing economic development project costs incurred under
5this Act, have been paid, all surplus monies then remaining in
6the special tax allocation fund shall be distributed by being
7paid by the municipal treasurer to the county collector, who
8shall immediately pay the monies to the taxing districts having
9taxable property in the economic development project area in
10the same manner and proportion as the most recent distribution
11by the county collector to those taxing districts of real
12property taxes from real property in the economic development
13project area.
14    (d) Upon the payment of all economic development project
15costs, retirement of obligations, and distribution of any
16excess monies under this Section and not later than 23 years
17from the date of the adoption of the ordinance establishing the
18economic development project area, the municipality shall
19adopt an ordinance dissolving the special tax allocation fund
20for the economic development project area and terminating the
21designation of the economic development project area as an
22economic development project area. Thereafter, the rates of the
23taxing districts shall be extended and taxes shall be levied,
24collected, and distributed in the manner applicable in the
25absence of the adoption of tax increment allocation financing.
26    (e) Nothing in this Section shall be construed as relieving

 

 

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1property in the economic development project areas from being
2assessed as provided in the Property Tax Code or as relieving
3owners or lessees of that property from paying a uniform rate
4of taxes as required by Section 4 of Article IX of the Illinois
5Constitution.
6(Source: P.A. 98-463, eff. 8-16-13.)
 
7    Section 945. The School Code is amended by changing
8Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
91F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
102-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a,
1110-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
1213B-50.10, 13B-50.15, 14-7.02b, 14-7.03, 14-13.01, 14C-12,
1317-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
1418-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5,
1534-2.3, 34-8.4, 34-18, 34-18.30, and 34-43.1 and by adding
16Section 18-8.15 as follows:
 
17    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
18    Sec. 1A-8. Powers of the Board in Assisting Districts
19Deemed in Financial Difficulties. To promote the financial
20integrity of school districts, the State Board of Education
21shall be provided the necessary powers to promote sound
22financial management and continue operation of the public
23schools.
24    (a) The State Superintendent of Education may require a

 

 

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1school district, including any district subject to Article 34A
2of this Code, to share financial information relevant to a
3proper investigation of the district's financial condition and
4the delivery of appropriate State financial, technical, and
5consulting services to the district if the district (i) has
6been designated, through the State Board of Education's School
7District Financial Profile System, as on financial warning or
8financial watch status, (ii) has failed to file an annual
9financial report, annual budget, deficit reduction plan, or
10other financial information as required by law, (iii) has been
11identified, through the district's annual audit or other
12financial and management information, as in serious financial
13difficulty in the current or next school year, or (iv) is
14determined to be likely to fail to fully meet any regularly
15scheduled, payroll-period obligations when due or any debt
16service payments when due or both. In addition to financial,
17technical, and consulting services provided by the State Board
18of Education, at the request of a school district, the State
19Superintendent may provide for an independent financial
20consultant to assist the district review its financial
21condition and options.
22    (b) The State Board of Education, after proper
23investigation of a district's financial condition, may certify
24that a district, including any district subject to Article 34A,
25is in financial difficulty when any of the following conditions
26occur:

 

 

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1        (1) The district has issued school or teacher orders
2    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
3    of this Code.
4        (2) The district has issued tax anticipation warrants
5    or tax anticipation notes in anticipation of a second
6    year's taxes when warrants or notes in anticipation of
7    current year taxes are still outstanding, as authorized by
8    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
9    issued short-term debt against 2 future revenue sources,
10    such as, but not limited to, tax anticipation warrants and
11    general State aid or primary State aid Aid certificates or
12    tax anticipation warrants and revenue anticipation notes.
13        (3) The district has for 2 consecutive years shown an
14    excess of expenditures and other financing uses over
15    revenues and other financing sources and beginning fund
16    balances on its annual financial report for the aggregate
17    totals of the Educational, Operations and Maintenance,
18    Transportation, and Working Cash Funds.
19        (4) The district refuses to provide financial
20    information or cooperate with the State Superintendent in
21    an investigation of the district's financial condition.
22        (5) The district is likely to fail to fully meet any
23    regularly scheduled, payroll-period obligations when due
24    or any debt service payments when due or both.
25    No school district shall be certified by the State Board of
26Education to be in financial difficulty solely by reason of any

 

 

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1of the above circumstances arising as a result of (i) the
2failure of the county to make any distribution of property tax
3money due the district at the time such distribution is due or
4(ii) the failure of this State to make timely payments of
5general State aid, primary State aid, or any of the mandated
6categoricals; or if the district clearly demonstrates to the
7satisfaction of the State Board of Education at the time of its
8determination that such condition no longer exists. If the
9State Board of Education certifies that a district in a city
10with 500,000 inhabitants or more is in financial difficulty,
11the State Board shall so notify the Governor and the Mayor of
12the city in which the district is located. The State Board of
13Education may require school districts certified in financial
14difficulty, except those districts subject to Article 34A, to
15develop, adopt and submit a financial plan within 45 days after
16certification of financial difficulty. The financial plan
17shall be developed according to guidelines presented to the
18district by the State Board of Education within 14 days of
19certification. Such guidelines shall address the specific
20nature of each district's financial difficulties. Any proposed
21budget of the district shall be consistent with the financial
22plan submitted to and approved by the State Board of Education.
23    A district certified to be in financial difficulty, other
24than a district subject to Article 34A, shall report to the
25State Board of Education at such times and in such manner as
26the State Board may direct, concerning the district's

 

 

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1compliance with each financial plan. The State Board may review
2the district's operations, obtain budgetary data and financial
3statements, require the district to produce reports, and have
4access to any other information in the possession of the
5district that it deems relevant. The State Board may issue
6recommendations or directives within its powers to the district
7to assist in compliance with the financial plan. The district
8shall produce such budgetary data, financial statements,
9reports and other information and comply with such directives.
10If the State Board of Education determines that a district has
11failed to comply with its financial plan, the State Board of
12Education may rescind approval of the plan and appoint a
13Financial Oversight Panel for the district as provided in
14Section 1B-4. This action shall be taken only after the
15district has been given notice and an opportunity to appear
16before the State Board of Education to discuss its failure to
17comply with its financial plan.
18    No bonds, notes, teachers orders, tax anticipation
19warrants or other evidences of indebtedness shall be issued or
20sold by a school district or be legally binding upon or
21enforceable against a local board of education of a district
22certified to be in financial difficulty unless and until the
23financial plan required under this Section has been approved by
24the State Board of Education.
25    Any financial profile compiled and distributed by the State
26Board of Education in Fiscal Year 2009 or any fiscal year

 

 

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1thereafter shall incorporate such adjustments as may be needed
2in the profile scores to reflect the financial effects of the
3inability or refusal of the State of Illinois to make timely
4disbursements of any general State aid, primary State aid, or
5mandated categorical aid payments due school districts or to
6fully reimburse school districts for mandated categorical
7programs pursuant to reimbursement formulas provided in this
8School Code.
9(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1097-429, eff. 8-16-11.)
 
11    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
12    Sec. 1B-5. When a petition for emergency financial
13assistance for a school district is allowed by the State Board
14under Section 1B-4, the State Superintendent shall within 10
15days thereafter appoint 3 members to serve at the State
16Superintendent's pleasure on a Financial Oversight Panel for
17the district. The State Superintendent shall designate one of
18the members of the Panel to serve as its Chairman. In the event
19of vacancy or resignation the State Superintendent shall
20appoint a successor within 10 days of receiving notice thereof.
21    Members of the Panel shall be selected primarily on the
22basis of their experience and education in financial
23management, with consideration given to persons knowledgeable
24in education finance. A member of the Panel may not be a board
25member or employee of the district for which the Panel is

 

 

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1constituted, nor may a member have a direct financial interest
2in that district.
3    Panel members shall serve without compensation, but may be
4reimbursed for travel and other necessary expenses incurred in
5the performance of their official duties by the State Board.
6The amount reimbursed Panel members for their expenses shall be
7charged to the school district as part of any emergency
8financial assistance and incorporated as a part of the terms
9and conditions for repayment of such assistance or shall be
10deducted from the district's general State aid or primary State
11aid as provided in Section 1B-8.
12    The first meeting of the Panel shall be held at the call of
13the Chairman. The Panel may elect such other officers as it
14deems appropriate. The Panel shall prescribe the times and
15places for its meetings and the manner in which regular and
16special meetings may be called, and shall comply with the Open
17Meetings Act.
18    Two members of the Panel shall constitute a quorum, and the
19affirmative vote of 2 members shall be necessary for any
20decision or action to be taken by the Panel.
21    The Panel and the State Superintendent shall cooperate with
22each other in the exercise of their respective powers. The
23Panel shall report not later than September 1 annually to the
24State Board and the State Superintendent with respect to its
25activities and the condition of the school district for the
26previous fiscal year.

 

 

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1    Any Financial Oversight Panel established under this
2Article shall remain in existence for not less than 3 years nor
3more than 10 years from the date the State Board grants the
4petition under Section 1B-4. If after 3 years the school
5district has repaid all of its obligations resulting from
6emergency State financial assistance provided under this
7Article and has improved its financial situation, the board of
8education may, not more frequently than once in any 12 month
9period, petition the State Board to dissolve the Financial
10Oversight Panel, terminate the oversight responsibility, and
11remove the district's certification under Section 1A-8 as a
12district in financial difficulty. In acting on such a petition
13the State Board shall give additional weight to the
14recommendations of the State Superintendent and the Financial
15Oversight Panel.
16(Source: P.A. 88-618, eff. 9-9-94.)
 
17    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
18    Sec. 1B-6. General powers. The purpose of the Financial
19Oversight Panel shall be to exercise financial control over the
20board of education, and, when approved by the State Board and
21the State Superintendent of Education, to furnish financial
22assistance so that the board can provide public education
23within the board's jurisdiction while permitting the board to
24meet its obligations to its creditors and the holders of its
25notes and bonds. Except as expressly limited by this Article,

 

 

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1the Panel shall have all powers necessary to meet its
2responsibilities and to carry out its purposes and the purposes
3of this Article, including, but not limited to, the following
4powers:
5    (a) to sue and be sued;
6    (b) to provide for its organization and internal
7management;
8    (c) to appoint a Financial Administrator to serve as the
9chief executive officer of the Panel. The Financial
10Administrator may be an individual, partnership, corporation,
11including an accounting firm, or other entity determined by the
12Panel to be qualified to serve; and to appoint other officers,
13agents, and employees of the Panel, define their duties and
14qualifications and fix their compensation and employee
15benefits;
16    (d) to approve the local board of education appointments to
17the positions of treasurer in a Class I county school unit and
18in each school district which forms a part of a Class II county
19school unit but which no longer is subject to the jurisdiction
20and authority of a township treasurer or trustees of schools of
21a township because the district has withdrawn from the
22jurisdiction and authority of the township treasurer and the
23trustees of schools of the township or because those offices
24have been abolished as provided in subsection (b) or (c) of
25Section 5-1, and chief school business official, if such
26official is not the superintendent of the district. Either the

 

 

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1board or the Panel may remove such treasurer or chief school
2business official;
3    (e) to approve any and all bonds, notes, teachers orders,
4tax anticipation warrants, and other evidences of indebtedness
5prior to issuance or sale by the school district; and
6notwithstanding any other provision of The School Code, as now
7or hereafter amended, no bonds, notes, teachers orders, tax
8anticipation warrants or other evidences of indebtedness shall
9be issued or sold by the school district or be legally binding
10upon or enforceable against the local board of education unless
11and until the approval of the Panel has been received;
12    (f) to approve all property tax levies of the school
13district and require adjustments thereto as the Panel deems
14necessary or advisable;
15    (g) to require and approve a school district financial
16plan;
17    (h) to approve and require revisions of the school district
18budget;
19    (i) to approve all contracts and other obligations as the
20Panel deems necessary and appropriate;
21    (j) to authorize emergency State financial assistance,
22including requirements regarding the terms and conditions of
23repayment of such assistance, and to require the board of
24education to levy a separate local property tax, subject to the
25limitations of Section 1B-8, sufficient to repay such
26assistance consistent with the terms and conditions of

 

 

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1repayment and the district's approved financial plan and
2budget;
3    (k) to request the regional superintendent to make
4appointments to fill all vacancies on the local school board as
5provided in Section 10-10;
6    (l) to recommend dissolution or reorganization of the
7school district to the General Assembly if in the Panel's
8judgment the circumstances so require;
9    (m) to direct a phased reduction in the oversight
10responsibilities of the Financial Administrator and of the
11Panel as the circumstances permit;
12    (n) to determine the amount of emergency State financial
13assistance to be made available to the school district, and to
14establish an operating budget for the Panel to be supported by
15funds available from such assistance, with the assistance and
16the budget required to be approved by the State Superintendent;
17    (o) to procure insurance against any loss in such amounts
18and from such insurers as it deems necessary;
19    (p) to engage the services of consultants for rendering
20professional and technical assistance and advice on matters
21within the Panel's power;
22    (q) to contract for and to accept any gifts, grants or
23loans of funds or property or financial or other aid in any
24form from the federal government, State government, unit of
25local government, school district or any agency or
26instrumentality thereof, or from any other private or public

 

 

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1source, and to comply with the terms and conditions thereof;
2    (r) to pay the expenses of its operations based on the
3Panel's budget as approved by the State Superintendent from
4emergency financial assistance funds available to the district
5or from deductions from the district's general State aid or
6primary State aid;
7    (s) to do any and all things necessary or convenient to
8carry out its purposes and exercise the powers given to the
9Panel by this Article; and
10    (t) to recommend the creation of a school finance authority
11pursuant to Article 1F of this Code.
12(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
13    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
14    Sec. 1B-7. Financial Administrator; Powers and Duties. The
15Financial Administrator appointed by the Financial Oversight
16Panel shall serve as the Panel's chief executive officer. The
17Financial Administrator shall exercise the powers and duties
18required by the Panel, including but not limited to the
19following:
20    (a) to provide guidance and recommendations to the local
21board and officials of the school district in developing the
22district's financial plan and budget prior to board action;
23    (b) to direct the local board to reorganize its financial
24accounts, budgetary systems, and internal accounting and
25financial controls, in whatever manner the Panel deems

 

 

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1appropriate to achieve greater financial responsibility and to
2reduce financial inefficiency, and to provide technical
3assistance to aid the district in accomplishing the
4reorganization;
5    (c) to make recommendations to the Financial Oversight
6Panel concerning the school district's financial plan and
7budget, and all other matters within the scope of the Panel's
8authority;
9    (d) to prepare and recommend to the Panel a proposal for
10emergency State financial assistance for the district,
11including recommended terms and conditions of repayment, and an
12operations budget for the Panel to be funded from the emergency
13assistance or from deductions from the district's general State
14aid or primary State aid;
15    (e) to require the local board to prepare and submit
16preliminary staffing and budgetary analyses annually prior to
17February 1 in such manner and form as the Financial
18Administrator shall prescribe; and
19    (f) subject to the direction of the Panel, to do all other
20things necessary or convenient to carry out its purposes and
21exercise the powers given to the Panel under this Article.
22(Source: P.A. 88-618, eff. 9-9-94.)
 
23    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
24    Sec. 1B-8. There is created in the State Treasury a special
25fund to be known as the School District Emergency Financial

 

 

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1Assistance Fund (the "Fund"). The School District Emergency
2Financial Assistance Fund shall consist of appropriations,
3loan repayments, grants from the federal government, and
4donations from any public or private source. Moneys in the Fund
5may be appropriated only to the Illinois Finance Authority and
6the State Board for those purposes authorized under this
7Article and Articles 1F and 1H of this Code. The appropriation
8may be allocated and expended by the State Board for
9contractual services to provide technical assistance or
10consultation to school districts to assess their financial
11condition and to Financial Oversight Panels that petition for
12emergency financial assistance grants. The Illinois Finance
13Authority may provide loans to school districts which are the
14subject of an approved petition for emergency financial
15assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
16Neither the State Board of Education nor the Illinois Finance
17Authority may collect any fees for providing these services.
18    From the amount allocated to each such school district
19under this Article the State Board shall identify a sum
20sufficient to cover all approved costs of the Financial
21Oversight Panel established for the respective school
22district. If the State Board and State Superintendent of
23Education have not approved emergency financial assistance in
24conjunction with the appointment of a Financial Oversight
25Panel, the Panel's approved costs shall be paid from deductions
26from the district's general State aid or primary State aid.

 

 

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1    The Financial Oversight Panel may prepare and file with the
2State Superintendent a proposal for emergency financial
3assistance for the school district and for its operations
4budget. No expenditures from the Fund shall be authorized by
5the State Superintendent until he or she has approved the
6request of the Panel, either as submitted or in such lesser
7amount determined by the State Superintendent.
8    The maximum amount of an emergency financial assistance
9loan which may be allocated to any school district under this
10Article, including moneys necessary for the operations of the
11Panel, shall not exceed $4,000 times the number of pupils
12enrolled in the school district during the school year ending
13June 30 prior to the date of approval by the State Board of the
14petition for emergency financial assistance, as certified to
15the local board and the Panel by the State Superintendent. An
16emergency financial assistance grant shall not exceed $1,000
17times the number of such pupils. A district may receive both a
18loan and a grant.
19    The payment of an emergency State financial assistance
20grant or loan shall be subject to appropriation by the General
21Assembly. Payment of the emergency State financial assistance
22loan is subject to the applicable provisions of the Illinois
23Finance Authority Act. Emergency State financial assistance
24allocated and paid to a school district under this Article may
25be applied to any fund or funds from which the local board of
26education of that district is authorized to make expenditures

 

 

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1by law.
2    Any emergency financial assistance grant proposed by the
3Financial Oversight Panel and approved by the State
4Superintendent may be paid in its entirety during the initial
5year of the Panel's existence or spread in equal or declining
6amounts over a period of years not to exceed the period of the
7Panel's existence. An emergency financial assistance loan
8proposed by the Financial Oversight Panel and approved by the
9Illinois Finance Authority may be paid in its entirety during
10the initial year of the Panel's existence or spread in equal or
11declining amounts over a period of years not to exceed the
12period of the Panel's existence. All loans made by the Illinois
13Finance Authority for a school district shall be required to be
14repaid, with simple interest over the term of the loan at a
15rate equal to 50% of the one-year Constant Maturity Treasury
16(CMT) yield as last published by the Board of Governors of the
17Federal Reserve System before the date on which the district's
18loan is approved by the Illinois Finance Authority, not later
19than the date the Financial Oversight Panel ceases to exist.
20The Panel shall establish and the Illinois Finance Authority
21shall approve the terms and conditions, including the schedule,
22of repayments. The schedule shall provide for repayments
23commencing July 1 of each year or upon each fiscal year's
24receipt of moneys from a tax levy for emergency financial
25assistance. Repayment shall be incorporated into the annual
26budget of the school district and may be made from any fund or

 

 

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1funds of the district in which there are moneys available. An
2emergency financial assistance loan to the Panel or district
3shall not be considered part of the calculation of a district's
4debt for purposes of the limitation specified in Section 19-1
5of this Code. Default on repayment is subject to the Illinois
6Grant Funds Recovery Act. When moneys are repaid as provided
7herein they shall not be made available to the local board for
8further use as emergency financial assistance under this
9Article at any time thereafter. All repayments required to be
10made by a school district shall be received by the State Board
11and deposited in the School District Emergency Financial
12Assistance Fund.
13    In establishing the terms and conditions for the repayment
14obligation of the school district the Panel shall annually
15determine whether a separate local property tax levy is
16required. The board of any school district with a tax rate for
17educational purposes for the prior year of less than 120% of
18the maximum rate for educational purposes authorized by Section
1917-2 shall provide for a separate tax levy for emergency
20financial assistance repayment purposes. Such tax levy shall
21not be subject to referendum approval. The amount of the levy
22shall be equal to the amount necessary to meet the annual
23repayment obligations of the district as established by the
24Panel, or 20% of the amount levied for educational purposes for
25the prior year, whichever is less. However, no district shall
26be required to levy the tax if the district's operating tax

 

 

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1rate as determined under Section 18-8, or 18-8.05, or 18-8.15
2exceeds 200% of the district's tax rate for educational
3purposes for the prior year.
4(Source: P.A. 97-429, eff. 8-16-11.)
 
5    (105 ILCS 5/1C-1)
6    Sec. 1C-1. Purpose. The purpose of this Article is to
7permit greater flexibility and efficiency in the distribution
8and use of certain State funds available to local education
9agencies for the improvement of the quality of educational
10services pursuant to locally established priorities.
11    Through fiscal year 2014, this This Article does not apply
12to school districts having a population in excess of 500,000
13inhabitants.
14(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1589-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
16    (105 ILCS 5/1C-2)
17    Sec. 1C-2. Block grants.
18    (a) For fiscal year 1999, and each fiscal year thereafter,
19the State Board of Education shall award to school districts
20block grants as described in subsection (c). The State Board of
21Education may adopt rules and regulations necessary to
22implement this Section. In accordance with Section 2-3.32, all
23state block grants are subject to an audit. Therefore, block
24grant receipts and block grant expenditures shall be recorded

 

 

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1to the appropriate fund code.
2    (b) (Blank).
3    (c) An Early Childhood Education Block Grant shall be
4created by combining the following programs: Preschool
5Education, Parental Training and Prevention Initiative. These
6funds shall be distributed to school districts and other
7entities on a competitive basis, except that the State Board of
8Education shall award to a school district having a population
9exceeding 500,000 inhabitants 37% of the funds in each fiscal
10year. Not less than 11% of this grant shall be used to fund
11programs for children ages 0-3, which percentage shall increase
12to at least 20% by Fiscal Year 2015. However, if, in a given
13fiscal year, the amount appropriated for the Early Childhood
14Education Block Grant is insufficient to increase the
15percentage of the grant to fund programs for children ages 0-3
16without reducing the amount of the grant for existing providers
17of preschool education programs, then the percentage of the
18grant to fund programs for children ages 0-3 may be held steady
19instead of increased.
20(Source: P.A. 95-793, eff. 1-1-09; 96-423, eff. 8-13-09.)
 
21    (105 ILCS 5/1D-1)
22    Sec. 1D-1. Block grant funding.
23    (a) For fiscal year 1996 through fiscal year 2014 and each
24fiscal year thereafter, the State Board of Education shall
25award to a school district having a population exceeding

 

 

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1500,000 inhabitants a general education block grant and an
2educational services block grant, determined as provided in
3this Section, in lieu of distributing to the district separate
4State funding for the programs described in subsections (b) and
5(c). The provisions of this Section, however, do not apply to
6any federal funds that the district is entitled to receive. In
7accordance with Section 2-3.32, all block grants are subject to
8an audit. Therefore, block grant receipts and block grant
9expenditures shall be recorded to the appropriate fund code for
10the designated block grant.
11    (b) The general education block grant shall include the
12following programs: REI Initiative, Summer Bridges, Preschool
13At Risk, K-6 Comprehensive Arts, School Improvement Support,
14Urban Education, Scientific Literacy, Substance Abuse
15Prevention, Second Language Planning, Staff Development,
16Outcomes and Assessment, K-6 Reading Improvement, 7-12
17Continued Reading Improvement, Truants' Optional Education,
18Hispanic Programs, Agriculture Education, Parental Education,
19Prevention Initiative, Report Cards, and Criminal Background
20Investigations. Notwithstanding any other provision of law,
21all amounts paid under the general education block grant from
22State appropriations to a school district in a city having a
23population exceeding 500,000 inhabitants shall be appropriated
24and expended by the board of that district for any of the
25programs included in the block grant or any of the board's
26lawful purposes.

 

 

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1    (c) The educational services block grant shall include the
2following programs: Regular and Vocational Transportation,
3State Lunch and Free Breakfast Program, Special Education
4(Personnel, Transportation, Orphanage, Private Tuition),
5funding for children requiring special education services,
6Summer School, Educational Service Centers, and
7Administrator's Academy. This subsection (c) does not relieve
8the district of its obligation to provide the services required
9under a program that is included within the educational
10services block grant. It is the intention of the General
11Assembly in enacting the provisions of this subsection (c) to
12relieve the district of the administrative burdens that impede
13efficiency and accompany single-program funding. The General
14Assembly encourages the board to pursue mandate waivers
15pursuant to Section 2-3.25g.
16    The funding program included in the educational services
17block grant for funding for children requiring special
18education services in each fiscal year shall be treated in that
19fiscal year as a payment to the school district in respect of
20services provided or costs incurred in the prior fiscal year,
21calculated in each case as provided in this Section. Nothing in
22this Section shall change the nature of payments for any
23program that, apart from this Section, would be or, prior to
24adoption or amendment of this Section, was on the basis of a
25payment in a fiscal year in respect of services provided or
26costs incurred in the prior fiscal year, calculated in each

 

 

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1case as provided in this Section.
2    (d) For fiscal year 1996 through fiscal year 2014 and each
3fiscal year thereafter, the amount of the district's block
4grants shall be determined as follows: (i) with respect to each
5program that is included within each block grant, the district
6shall receive an amount equal to the same percentage of the
7current fiscal year appropriation made for that program as the
8percentage of the appropriation received by the district from
9the 1995 fiscal year appropriation made for that program, and
10(ii) the total amount that is due the district under the block
11grant shall be the aggregate of the amounts that the district
12is entitled to receive for the fiscal year with respect to each
13program that is included within the block grant that the State
14Board of Education shall award the district under this Section
15for that fiscal year. In the case of the Summer Bridges
16program, the amount of the district's block grant shall be
17equal to 44% of the amount of the current fiscal year
18appropriation made for that program.
19    (e) The district is not required to file any application or
20other claim in order to receive the block grants to which it is
21entitled under this Section. The State Board of Education shall
22make payments to the district of amounts due under the
23district's block grants on a schedule determined by the State
24Board of Education.
25    (f) A school district to which this Section applies shall
26report to the State Board of Education on its use of the block

 

 

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1grants in such form and detail as the State Board of Education
2may specify. In addition, the report must include the following
3description for the district, which must also be reported to
4the General Assembly: block grant allocation and expenditures
5by program; population and service levels by program; and
6administrative expenditures by program. The State Board of
7Education shall ensure that the reporting requirements for the
8district are the same as for all other school districts in this
9State.
10    (g) Through fiscal year 2014, this This paragraph provides
11for the treatment of block grants under Article 1C for purposes
12of calculating the amount of block grants for a district under
13this Section. Those block grants under Article 1C are, for this
14purpose, treated as included in the amount of appropriation for
15the various programs set forth in paragraph (b) above. The
16appropriation in each current fiscal year for each block grant
17under Article 1C shall be treated for these purposes as
18appropriations for the individual program included in that
19block grant. The proportion of each block grant so allocated to
20each such program included in it shall be the proportion which
21the appropriation for that program was of all appropriations
22for such purposes now in that block grant, in fiscal 1995.
23    Payments to the school district under this Section with
24respect to each program for which payments to school districts
25generally, as of the date of this amendatory Act of the 92nd
26General Assembly, are on a reimbursement basis shall continue

 

 

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1to be made to the district on a reimbursement basis, pursuant
2to the provisions of this Code governing those programs.
3    (h) Notwithstanding any other provision of law, any school
4district receiving a block grant under this Section may
5classify all or a portion of the funds that it receives in a
6particular fiscal year from any block grant authorized under
7this Code or from general State aid pursuant to Section 18-8.05
8of this Code (other than supplemental general State aid) as
9funds received in connection with any funding program for which
10it is entitled to receive funds from the State in that fiscal
11year (including, without limitation, any funding program
12referred to in subsection (c) of this Section), regardless of
13the source or timing of the receipt. The district may not
14classify more funds as funds received in connection with the
15funding program than the district is entitled to receive in
16that fiscal year for that program. Any classification by a
17district must be made by a resolution of its board of
18education. The resolution must identify the amount of any block
19grant or general State aid to be classified under this
20subsection (h) and must specify the funding program to which
21the funds are to be treated as received in connection
22therewith. This resolution is controlling as to the
23classification of funds referenced therein. A certified copy of
24the resolution must be sent to the State Superintendent of
25Education. The resolution shall still take effect even though a
26copy of the resolution has not been sent to the State

 

 

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1Superintendent of Education in a timely manner. No
2classification under this subsection (h) by a district shall
3affect the total amount or timing of money the district is
4entitled to receive under this Code. No classification under
5this subsection (h) by a district shall in any way relieve the
6district from or affect any requirements that otherwise would
7apply with respect to the block grant as provided in this
8Section, including any accounting of funds by source, reporting
9expenditures by original source and purpose, reporting
10requirements, or requirements of provision of services.
11(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1297-813, eff. 7-13-12.)
 
13    (105 ILCS 5/1E-20)
14    (This Section scheduled to be repealed in accordance with
15105 ILCS 5/1E-165)
16    Sec. 1E-20. Members of Authority; meetings.
17    (a) When a petition for a School Finance Authority is
18allowed by the State Board under Section 1E-15 of this Code,
19the State Superintendent shall within 10 days thereafter
20appoint 5 members to serve on a School Finance Authority for
21the district. Of the initial members, 2 shall be appointed to
22serve a term of 2 years and 3 shall be appointed to serve a term
23of 3 years. Thereafter, each member shall serve for a term of 3
24years and until his or her successor has been appointed. The
25State Superintendent shall designate one of the members of the

 

 

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1Authority to serve as its Chairperson. In the event of vacancy
2or resignation, the State Superintendent shall, within 10 days
3after receiving notice, appoint a successor to serve out that
4member's term. The State Superintendent may remove a member for
5incompetence, malfeasance, neglect of duty, or other just
6cause.
7    Members of the Authority shall be selected primarily on the
8basis of their experience and education in financial
9management, with consideration given to persons knowledgeable
10in education finance. Two members of the Authority shall be
11residents of the school district that the Authority serves. A
12member of the Authority may not be a member of the district's
13school board or an employee of the district nor may a member
14have a direct financial interest in the district.
15    Authority members shall serve without compensation, but
16may be reimbursed by the State Board for travel and other
17necessary expenses incurred in the performance of their
18official duties. Unless paid from bonds issued under Section
191E-65 of this Code, the amount reimbursed members for their
20expenses shall be charged to the school district as part of any
21emergency financial assistance and incorporated as a part of
22the terms and conditions for repayment of the assistance or
23shall be deducted from the district's general State aid or
24primary State aid as provided in Section 1B-8 of this Code.
25    The Authority may elect such officers as it deems
26appropriate.

 

 

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1    (b) The first meeting of the Authority shall be held at the
2call of the Chairperson. The Authority shall prescribe the
3times and places for its meetings and the manner in which
4regular and special meetings may be called and shall comply
5with the Open Meetings Act.
6    Three members of the Authority shall constitute a quorum.
7When a vote is taken upon any measure before the Authority, a
8quorum being present, a majority of the votes of the members
9voting on the measure shall determine the outcome.
10(Source: P.A. 92-547, eff. 6-13-02.)
 
11    (105 ILCS 5/1F-20)
12(This Section scheduled to be repealed in accordance with 105
13ILCS 5/1F-165)
14    Sec. 1F-20. Members of Authority; meetings.
15    (a) Upon establishment of a School Finance Authority under
16Section 1F-15 of this Code, the State Superintendent shall
17within 15 days thereafter appoint 5 members to serve on a
18School Finance Authority for the district. Of the initial
19members, 2 shall be appointed to serve a term of 2 years and 3
20shall be appointed to serve a term of 3 years. Thereafter, each
21member shall serve for a term of 3 years and until his or her
22successor has been appointed. The State Superintendent shall
23designate one of the members of the Authority to serve as its
24Chairperson. In the event of vacancy or resignation, the State
25Superintendent shall, within 10 days after receiving notice,

 

 

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1appoint a successor to serve out that member's term. The State
2Superintendent may remove a member for incompetence,
3malfeasance, neglect of duty, or other just cause.
4    Members of the Authority shall be selected primarily on the
5basis of their experience and education in financial
6management, with consideration given to persons knowledgeable
7in education finance. Two members of the Authority shall be
8residents of the school district that the Authority serves. A
9member of the Authority may not be a member of the district's
10school board or an employee of the district nor may a member
11have a direct financial interest in the district.
12    Authority members shall be paid a stipend approved by the
13State Superintendent of not more than $100 per meeting and may
14be reimbursed by the State Board for travel and other necessary
15expenses incurred in the performance of their official duties.
16Unless paid from bonds issued under Section 1F-65 of this Code,
17the amount reimbursed members for their expenses shall be
18charged to the school district as part of any emergency
19financial assistance and incorporated as a part of the terms
20and conditions for repayment of the assistance or shall be
21deducted from the district's general State aid or primary State
22aid as provided in Section 1B-8 of this Code.
23    The Authority may elect such officers as it deems
24appropriate.
25    (b) The first meeting of the Authority shall be held at the
26call of the Chairperson. The Authority shall prescribe the

 

 

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1times and places for its meetings and the manner in which
2regular and special meetings may be called and shall comply
3with the Open Meetings Act.
4    Three members of the Authority shall constitute a quorum.
5When a vote is taken upon any measure before the Authority, a
6quorum being present, a majority of the votes of the members
7voting on the measure shall determine the outcome.
8(Source: P.A. 94-234, eff. 7-1-06.)
 
9    (105 ILCS 5/1F-62)
10(This Section scheduled to be repealed in accordance with 105
11ILCS 5/1F-165)
12    Sec. 1F-62. School District Emergency Financial Assistance
13Fund; grants and loans.
14    (a) Moneys in the School District Emergency Financial
15Assistance Fund established under Section 1B-8 of this Code may
16be allocated and expended by the State Board as grants to
17provide technical and consulting services to school districts
18to assess their financial condition and by the Illinois Finance
19Authority for emergency financial assistance loans to a School
20Finance Authority that petitions for emergency financial
21assistance. An emergency financial assistance loan to a School
22Finance Authority or borrowing from sources other than the
23State shall not be considered as part of the calculation of a
24district's debt for purposes of the limitation specified in
25Section 19-1 of this Code. From the amount allocated to each

 

 

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1School Finance Authority, the State Board shall identify a sum
2sufficient to cover all approved costs of the School Finance
3Authority. If the State Board and State Superintendent have not
4approved emergency financial assistance in conjunction with
5the appointment of a School Finance Authority, the Authority's
6approved costs shall be paid from deductions from the
7district's general State aid or primary State aid.
8    The School Finance Authority may prepare and file with the
9State Superintendent a proposal for emergency financial
10assistance for the school district and for its operations
11budget. No expenditures shall be authorized by the State
12Superintendent until he or she has approved the proposal of the
13School Finance Authority, either as submitted or in such lesser
14amount determined by the State Superintendent.
15    (b) The amount of an emergency financial assistance loan
16that may be allocated to a School Finance Authority under this
17Article, including moneys necessary for the operations of the
18School Finance Authority, and borrowing from sources other than
19the State shall not exceed, in the aggregate, $4,000 times the
20number of pupils enrolled in the district during the school
21year ending June 30 prior to the date of approval by the State
22Board of the petition for emergency financial assistance, as
23certified to the school board and the School Finance Authority
24by the State Superintendent. However, this limitation does not
25apply to borrowing by the district secured by amounts levied by
26the district prior to establishment of the School Finance

 

 

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1Authority. An emergency financial assistance grant shall not
2exceed $1,000 times the number of such pupils. A district may
3receive both a loan and a grant.
4    (c) The payment of a State emergency financial assistance
5grant or loan shall be subject to appropriation by the General
6Assembly. State emergency financial assistance allocated and
7paid to a School Finance Authority under this Article may be
8applied to any fund or funds from which the School Finance
9Authority is authorized to make expenditures by law.
10    (d) Any State emergency financial assistance proposed by
11the School Finance Authority and approved by the State
12Superintendent may be paid in its entirety during the initial
13year of the School Finance Authority's existence or spread in
14equal or declining amounts over a period of years not to exceed
15the period of the School Finance Authority's existence. The
16State Superintendent shall not approve any loan to the School
17Finance Authority unless the School Finance Authority has been
18unable to borrow sufficient funds to operate the district.
19    All loan payments made from the School District Emergency
20Financial Assistance Fund to a School Finance Authority shall
21be required to be repaid not later than the date the School
22Finance Authority ceases to exist, with simple interest over
23the term of the loan at a rate equal to 50% of the one-year
24Constant Maturity Treasury (CMT) yield as last published by the
25Board of Governors of the Federal Reserve System before the
26date on which the School Finance Authority's loan is approved

 

 

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1by the State Board.
2    The School Finance Authority shall establish and the
3Illinois Finance Authority shall approve the terms and
4conditions of the loan, including the schedule of repayments.
5The schedule shall provide for repayments commencing July 1 of
6each year or upon each fiscal year's receipt of moneys from a
7tax levy for emergency financial assistance. Repayment shall be
8incorporated into the annual budget of the district and may be
9made from any fund or funds of the district in which there are
10moneys available. Default on repayment is subject to the
11Illinois Grant Funds Recovery Act. When moneys are repaid as
12provided in this Section, they shall not be made available to
13the School Finance Authority for further use as emergency
14financial assistance under this Article at any time thereafter.
15All repayments required to be made by a School Finance
16Authority shall be received by the State Board and deposited in
17the School District Emergency Financial Assistance Fund.
18    In establishing the terms and conditions for the repayment
19obligation of the School Finance Authority, the School Finance
20Authority shall annually determine whether a separate local
21property tax levy is required to meet that obligation. The
22School Finance Authority shall provide for a separate tax levy
23for emergency financial assistance repayment purposes. This
24tax levy shall not be subject to referendum approval. The
25amount of the levy shall not exceed the amount necessary to
26meet the annual emergency financial repayment obligations of

 

 

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1the district, including principal and interest, as established
2by the School Finance Authority.
3(Source: P.A. 94-234, eff. 7-1-06.)
 
4    (105 ILCS 5/1H-20)
5    Sec. 1H-20. Members of Panel; meetings.
6    (a) Upon establishment of a Financial Oversight Panel under
7Section 1H-15 of this Code, the State Superintendent shall
8within 15 working days thereafter appoint 5 members to serve on
9a Financial Oversight Panel for the district. Members appointed
10to the Panel shall serve at the pleasure of the State
11Superintendent. The State Superintendent shall designate one
12of the members of the Panel to serve as its Chairperson. In the
13event of vacancy or resignation, the State Superintendent
14shall, within 10 days after receiving notice, appoint a
15successor to serve out that member's term.
16    (b) Members of the Panel shall be selected primarily on the
17basis of their experience and education in financial
18management, with consideration given to persons knowledgeable
19in education finance. Two members of the Panel shall be
20residents of the school district that the Panel serves. A
21member of the Panel may not be a member of the district's
22school board or an employee of the district nor may a member
23have a direct financial interest in the district.
24    (c) Panel members may be reimbursed by the State Board for
25travel and other necessary expenses incurred in the performance

 

 

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1of their official duties. The amount reimbursed members for
2their expenses shall be charged to the school district as part
3of any emergency financial assistance and incorporated as a
4part of the terms and conditions for repayment of the
5assistance or shall be deducted from the district's general
6State aid or primary State aid as provided in Section 1H-65 of
7this Code.
8    (d) With the exception of the chairperson, who shall be
9designated as provided in subsection (a) of this Section, the
10Panel may elect such officers as it deems appropriate.
11    (e) The first meeting of the Panel shall be held at the
12call of the Chairperson. The Panel shall prescribe the times
13and places for its meetings and the manner in which regular and
14special meetings may be called and shall comply with the Open
15Meetings Act. The Panel shall also comply with the Freedom of
16Information Act.
17    (f) Three members of the Panel shall constitute a quorum. A
18majority of members present is required to pass a measure.
19(Source: P.A. 97-429, eff. 8-16-11.)
 
20    (105 ILCS 5/1H-70)
21    Sec. 1H-70. Tax anticipation warrants, tax anticipation
22notes, revenue anticipation certificates or notes, general
23State aid or primary State aid anticipation certificates, and
24lines of credit. With the approval of the State Superintendent
25and provided that the district is unable to secure short-term

 

 

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1financing after 3 attempts, a Panel shall have the same power
2as a district to do the following:
3        (1) issue tax anticipation warrants under the
4    provisions of Section 17-16 of this Code against taxes
5    levied by either the school board or the Panel pursuant to
6    Section 1H-25 of this Code;
7        (2) issue tax anticipation notes under the provisions
8    of the Tax Anticipation Note Act against taxes levied by
9    either the school board or the Panel pursuant to Section
10    1H-25 of this Code;
11        (3) issue revenue anticipation certificates or notes
12    under the provisions of the Revenue Anticipation Act;
13        (4) issue general State aid or primary State aid
14    anticipation certificates under the provisions of Section
15    18-18 of this Code; and
16        (5) establish and utilize lines of credit under the
17    provisions of Section 17-17 of this Code.
18    Tax anticipation warrants, tax anticipation notes, revenue
19anticipation certificates or notes, general State aid or
20primary State aid anticipation certificates, and lines of
21credit are considered borrowing from sources other than the
22State and are subject to Section 1H-65 of this Code.
23(Source: P.A. 97-429, eff. 8-16-11.)
 
24    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
25    Sec. 2-3.28. Rules and regulations of budget and accounting

 

 

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1systems. To prescribe rules and regulations defining what shall
2constitute a budget and accounting system required under this
3Act. The rules and regulations shall prescribe the minimum
4extent of verification, the type of audit, the extent of the
5audit report and shall require compliance with statutory
6requirements and standards and such requirements as the State
7Board of Education deems necessary for an adequate budget and
8accounting system. For the 2015-2016 school year and
9thereafter, the rules and regulations shall prescribe a system
10for accounting for revenues and expenditures at the individual
11school level that includes without limitation the following:
12        (1) accounting for expenditures for school
13    administration, regular instruction, special education
14    instruction, instructional support services, and pupil
15    support services;
16        (2) salary expenditures reflecting actual staff
17    salaries at each school;
18        (3) accounting for operations, including
19    non-instructional pupil services, facilities, and business
20    services; and
21        (4) such other requirements as the State Board of
22    Education deems necessary to provide for a uniform and
23    transparent system of accounting at the school level.
24(Source: P.A. 81-1508.)
 
25    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)

 

 

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1    Sec. 2-3.33. Recomputation of claims. To recompute within
23 years from the final date for filing of a claim any claim for
3reimbursement to any school district if the claim has been
4found to be incorrect and to adjust subsequent claims
5accordingly, and to recompute and adjust any such claims within
66 years from the final date for filing when there has been an
7adverse court or administrative agency decision on the merits
8affecting the tax revenues of the school district. However, no
9such adjustment shall be made regarding equalized assessed
10valuation unless the district's equalized assessed valuation
11is changed by greater than $250,000 or 2%. Any adjustments for
12claims recomputed for the 2013-2014 school year and prior
13school years shall be applied to the apportionment of primary
14State financial aid in Section 18-8.15 of this Code beginning
15in the 2014-2015 school year and thereafter.
16    Except in the case of an adverse court or administrative
17agency decision, no recomputation of a State aid claim shall be
18made pursuant to this Section as a result of a reduction in the
19assessed valuation of a school district from the assessed
20valuation of the district reported to the State Board of
21Education by the Department of Revenue under Section 18-8.05 or
2218-8.15 of this Code unless the requirements of Section 16-15
23of the Property Tax Code and Section 2-3.84 of this Code are
24complied with in all respects.
25    This paragraph applies to all requests for recomputation of
26a general State aid or primary State aid claim received after

 

 

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1June 30, 2003. In recomputing a general State aid or primary
2State aid claim that was originally calculated using an
3extension limitation equalized assessed valuation under
4paragraph (3) of subsection (G) of Section 18-8.05 of this Code
5or paragraph (3) of subsection (h) of Section 18-8.15 of this
6Code, a qualifying reduction in equalized assessed valuation
7shall be deducted from the extension limitation equalized
8assessed valuation that was used in calculating the original
9claim.
10    From the total amount of general State aid or primary State
11aid to be provided to districts, adjustments as a result of
12recomputation under this Section together with adjustments
13under Section 2-3.84 must not exceed $25 million, in the
14aggregate for all districts under both Sections combined, of
15the general State aid or primary State aid appropriation in any
16fiscal year; if necessary, amounts shall be prorated among
17districts. If it is necessary to prorate claims under this
18paragraph, then that portion of each prorated claim that is
19approved but not paid in the current fiscal year may be
20resubmitted as a valid claim in the following fiscal year.
21(Source: P.A. 93-845, eff. 7-30-04.)
 
22    (105 ILCS 5/2-3.51.5)
23    Sec. 2-3.51.5. School Safety and Educational Improvement
24Block Grant Program. To improve the level of education and
25safety of students from kindergarten through grade 12 in school

 

 

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1districts and State-recognized, non-public schools. The State
2Board of Education is authorized to fund a School Safety and
3Educational Improvement Block Grant Program.
4    (1) For school districts, the program shall provide funding
5for school safety, textbooks and software, electronic
6textbooks and the technological equipment necessary to gain
7access to and use electronic textbooks, teacher training and
8curriculum development, school improvements, remediation
9programs under subsection (a) of Section 2-3.64, school report
10cards under Section 10-17a, and criminal history records checks
11under Sections 10-21.9 and 34-18.5. For State-recognized,
12non-public schools, the program shall provide funding for
13secular textbooks and software, criminal history records
14checks, and health and safety mandates to the extent that the
15funds are expended for purely secular purposes. A school
16district or laboratory school as defined in Section 18-8, or
1718-8.05, or 18-8.15 is not required to file an application in
18order to receive the categorical funding to which it is
19entitled under this Section. Funds for the School Safety and
20Educational Improvement Block Grant Program shall be
21distributed to school districts and laboratory schools based on
22the prior year's best 3 months average daily attendance. Funds
23for the School Safety and Educational Improvement Block Grant
24Program shall be distributed to State-recognized, non-public
25schools based on the average daily attendance figure for the
26previous school year provided to the State Board of Education.

 

 

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1The State Board of Education shall develop an application that
2requires State-recognized, non-public schools to submit
3average daily attendance figures. A State-recognized,
4non-public school must submit the application and average daily
5attendance figure prior to receiving funds under this Section.
6The State Board of Education shall promulgate rules and
7regulations necessary for the implementation of this program.
8    (2) Distribution of moneys to school districts and
9State-recognized, non-public schools shall be made in 2
10semi-annual installments, one payment on or before October 30,
11and one payment prior to April 30, of each fiscal year.
12    (3) Grants under the School Safety and Educational
13Improvement Block Grant Program shall be awarded provided there
14is an appropriation for the program, and funding levels for
15each district shall be prorated according to the amount of the
16appropriation.
17    (4) The provisions of this Section are in the public
18interest, are for the public benefit, and serve secular public
19purposes.
20(Source: P.A. 95-707, eff. 1-11-08; 96-1403, eff. 7-29-10.)
 
21    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
22    Sec. 2-3.66. Truants' alternative and optional education
23programs. To establish projects to offer modified
24instructional programs or other services designed to prevent
25students from dropping out of school, including programs

 

 

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1pursuant to Section 2-3.41, and to serve as a part time or full
2time option in lieu of regular school attendance and to award
3grants to local school districts, educational service regions
4or community college districts from appropriated funds to
5assist districts in establishing such projects. The education
6agency may operate its own program or enter into a contract
7with another not-for-profit entity to implement the program.
8The projects shall allow dropouts, up to and including age 21,
9potential dropouts, including truants, uninvolved, unmotivated
10and disaffected students, as defined by State Board of
11Education rules and regulations, to enroll, as an alternative
12to regular school attendance, in an optional education program
13which may be established by school board policy and is in
14conformance with rules adopted by the State Board of Education.
15Truants' Alternative and Optional Education programs funded
16pursuant to this Section shall be planned by a student, the
17student's parents or legal guardians, unless the student is 18
18years or older, and school officials and shall culminate in an
19individualized optional education plan. Such plan shall focus
20on academic or vocational skills, or both, and may include, but
21not be limited to, evening school, summer school, community
22college courses, adult education, preparation courses for the
23high school level test of General Educational Development,
24vocational training, work experience, programs to enhance self
25concept and parenting courses. School districts which are
26awarded grants pursuant to this Section shall be authorized to

 

 

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1provide day care services to children of students who are
2eligible and desire to enroll in programs established and
3funded under this Section, but only if and to the extent that
4such day care is necessary to enable those eligible students to
5attend and participate in the programs and courses which are
6conducted pursuant to this Section. School districts and
7regional offices of education may claim general State aid under
8Section 18-8.05 or primary State aid under Section 18-8.15 for
9students enrolled in truants' alternative and optional
10education programs, provided that such students are receiving
11services that are supplemental to a program leading to a high
12school diploma and are otherwise eligible to be claimed for
13general State aid under Section 18-8.05 or primary State aid
14under Section 18-8.15, as applicable.
15(Source: P.A. 96-734, eff. 8-25-09.)
 
16    (105 ILCS 5/2-3.66b)
17    Sec. 2-3.66b. IHOPE Program.
18    (a) There is established the Illinois Hope and Opportunity
19Pathways through Education (IHOPE) Program. The State Board of
20Education shall implement and administer the IHOPE Program. The
21goal of the IHOPE Program is to develop a comprehensive system
22in this State to re-enroll significant numbers of high school
23dropouts in programs that will enable them to earn their high
24school diploma.
25    (b) The IHOPE Program shall award grants, subject to

 

 

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1appropriation for this purpose, to educational service regions
2and a school district organized under Article 34 of this Code
3from appropriated funds to assist in establishing
4instructional programs and other services designed to
5re-enroll high school dropouts. From any funds appropriated for
6the IHOPE Program, the State Board of Education may use up to
75% for administrative costs, including the performance of a
8program evaluation and the hiring of staff to implement and
9administer the program.
10    The IHOPE Program shall provide incentive grant funds for
11regional offices of education and a school district organized
12under Article 34 of this Code to develop partnerships with
13school districts, public community colleges, and community
14groups to build comprehensive plans to re-enroll high school
15dropouts in their regions or districts.
16    Programs funded through the IHOPE Program shall allow high
17school dropouts, up to and including age 21 notwithstanding
18Section 26-2 of this Code, to re-enroll in an educational
19program in conformance with rules adopted by the State Board of
20Education. Programs may include without limitation
21comprehensive year-round programming, evening school, summer
22school, community college courses, adult education, vocational
23training, work experience, programs to enhance self-concept,
24and parenting courses. Any student in the IHOPE Program who
25wishes to earn a high school diploma must meet the
26prerequisites to receiving a high school diploma specified in

 

 

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1Section 27-22 of this Code and any other graduation
2requirements of the student's district of residence. Any
3student who successfully completes the requirements for his or
4her graduation shall receive a diploma identifying the student
5as graduating from his or her district of residence.
6    (c) In order to be eligible for funding under the IHOPE
7Program, an interested regional office of education or a school
8district organized under Article 34 of this Code shall develop
9an IHOPE Plan to be approved by the State Board of Education.
10The State Board of Education shall develop rules for the IHOPE
11Program that shall set forth the requirements for the
12development of the IHOPE Plan. Each Plan shall involve school
13districts, public community colleges, and key community
14programs that work with high school dropouts located in an
15educational service region or the City of Chicago before the
16Plan is sent to the State Board for approval. No funds may be
17distributed to a regional office of education or a school
18district organized under Article 34 of this Code until the
19State Board has approved the Plan.
20    (d) A regional office of education or a school district
21organized under Article 34 of this Code may operate its own
22program funded by the IHOPE Program or enter into a contract
23with other not-for-profit entities, including school
24districts, public community colleges, and not-for-profit
25community-based organizations, to operate a program.
26    A regional office of education or a school district

 

 

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1organized under Article 34 of this Code that receives an IHOPE
2grant from the State Board of Education may provide funds under
3a sub-grant, as specified in the IHOPE Plan, to other
4not-for-profit entities to provide services according to the
5IHOPE Plan that was developed. These other entities may include
6school districts, public community colleges, or not-for-profit
7community-based organizations or a cooperative partnership
8among these entities.
9    (e) In order to distribute funding based upon the need to
10ensure delivery of programs that will have the greatest impact,
11IHOPE Program funding must be distributed based upon the
12proportion of dropouts in the educational service region or
13school district, in the case of a school district organized
14under Article 34 of this Code, to the total number of dropouts
15in this State. This formula shall employ the dropout data
16provided by school districts to the State Board of Education.
17    A regional office of education or a school district
18organized under Article 34 of this Code may claim State aid
19under Section 18-8.05 or 18-8.15 of this Code for students
20enrolled in a program funded by the IHOPE Program, provided
21that the State Board of Education has approved the IHOPE Plan
22and that these students are receiving services that are meeting
23the requirements of Section 27-22 of this Code for receipt of a
24high school diploma and are otherwise eligible to be claimed
25for general State aid under Section 18-8.05 of this Code or
26primary State aid under Section 18-8.15 of this Code, including

 

 

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1provisions related to the minimum number of days of pupil
2attendance pursuant to Section 10-19 of this Code and the
3minimum number of daily hours of school work and any exceptions
4thereto as defined by the State Board of Education in rules.
5    (f) IHOPE categories of programming may include the
6following:
7        (1) Full-time programs that are comprehensive,
8    year-round programs.
9        (2) Part-time programs combining work and study
10    scheduled at various times that are flexible to the needs
11    of students.
12        (3) Online programs and courses in which students take
13    courses and complete on-site, supervised tests that
14    measure the student's mastery of a specific course needed
15    for graduation. Students may take courses online and earn
16    credit or students may prepare to take supervised tests for
17    specific courses for credit leading to receipt of a high
18    school diploma.
19        (4) Dual enrollment in which students attend high
20    school classes in combination with community college
21    classes or students attend community college classes while
22    simultaneously earning high school credit and eventually a
23    high school diploma.
24    (g) In order to have successful comprehensive programs
25re-enrolling and graduating low-skilled high school dropouts,
26programs funded through the IHOPE Program shall include all of

 

 

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1the following components:
2        (1) Small programs (70 to 100 students) at a separate
3    school site with a distinct identity. Programs may be
4    larger with specific need and justification, keeping in
5    mind that it is crucial to keep programs small to be
6    effective.
7        (2) Specific performance-based goals and outcomes and
8    measures of enrollment, attendance, skills, credits,
9    graduation, and the transition to college, training, and
10    employment.
11        (3) Strong, experienced leadership and teaching staff
12    who are provided with ongoing professional development.
13        (4) Voluntary enrollment.
14        (5) High standards for student learning, integrating
15    work experience, and education, including during the
16    school year and after school, and summer school programs
17    that link internships, work, and learning.
18        (6) Comprehensive programs providing extensive support
19    services.
20        (7) Small teams of students supported by full-time paid
21    mentors who work to retain and help those students
22    graduate.
23        (8) A comprehensive technology learning center with
24    Internet access and broad-based curriculum focusing on
25    academic and career subject areas.
26        (9) Learning opportunities that incorporate action

 

 

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1    into study.
2    (h) Programs funded through the IHOPE Program must report
3data to the State Board of Education as requested. This
4information shall include, but is not limited to, student
5enrollment figures, attendance information, course completion
6data, graduation information, and post-graduation information,
7as available.
8    (i) Rules must be developed by the State Board of Education
9to set forth the fund distribution process to regional offices
10of education and a school district organized under Article 34
11of this Code, the planning and the conditions upon which an
12IHOPE Plan would be approved by State Board, and other rules to
13develop the IHOPE Program.
14(Source: P.A. 96-106, eff. 7-30-09.)
 
15    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
16    Sec. 2-3.84. In calculating the amount of State aid to be
17apportioned to the various school districts in this State, the
18State Board of Education shall incorporate and deduct the total
19aggregate adjustments to assessments made by the State Property
20Tax Appeal Board or Cook County Board of Appeals, as reported
21pursuant to Section 16-15 of the Property Tax Code or Section
22129.1 of the Revenue Act of 1939 by the Department of Revenue,
23from the equalized assessed valuation that is otherwise to be
24utilized in the initial calculation.
25    From the total amount of general State aid or primary State

 

 

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1aid to be provided to districts, adjustments under this Section
2together with adjustments as a result of recomputation under
3Section 2-3.33 must not exceed $25 million, in the aggregate
4for all districts under both Sections combined, of the general
5State aid or primary State aid appropriation in any fiscal
6year; if necessary, amounts shall be prorated among districts.
7If it is necessary to prorate claims under this paragraph, then
8that portion of each prorated claim that is approved but not
9paid in the current fiscal year may be resubmitted as a valid
10claim in the following fiscal year.
11(Source: P.A. 93-845, eff. 7-30-04.)
 
12    (105 ILCS 5/2-3.109a)
13    Sec. 2-3.109a. Laboratory schools grant eligibility. A
14laboratory school as defined in Section 18-8 or 18-8.15 may
15apply for and be eligible to receive, subject to the same
16restrictions applicable to school districts, any grant
17administered by the State Board of Education that is available
18for school districts.
19(Source: P.A. 90-566, eff. 1-2-98.)
 
20    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
21    Sec. 3-14.21. Inspection of schools.
22    (a) The regional superintendent shall inspect and survey
23all public schools under his or her supervision and notify the
24board of education, or the trustees of schools in a district

 

 

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1with trustees, in writing before July 30, whether or not the
2several schools in their district have been kept as required by
3law, using forms provided by the State Board of Education which
4are based on the Health/Life Safety Code for Public Schools
5adopted under Section 2-3.12. The regional superintendent
6shall report his or her findings to the State Board of
7Education on forms provided by the State Board of Education.
8    (b) If the regional superintendent determines that a school
9board has failed in a timely manner to correct urgent items
10identified in a previous life-safety report completed under
11Section 2-3.12 or as otherwise previously ordered by the
12regional superintendent, the regional superintendent shall
13order the school board to adopt and submit to the regional
14superintendent a plan for the immediate correction of the
15building violations. This plan shall be adopted following a
16public hearing that is conducted by the school board on the
17violations and the plan and that is preceded by at least 7
18days' prior notice of the hearing published in a newspaper of
19general circulation within the school district. If the regional
20superintendent determines in the next annual inspection that
21the plan has not been completed and that the violations have
22not been corrected, the regional superintendent shall submit a
23report to the State Board of Education with a recommendation
24that the State Board withhold from payments of general State
25aid or primary State aid due to the district an amount
26necessary to correct the outstanding violations. The State

 

 

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1Board, upon notice to the school board and to the regional
2superintendent, shall consider the report at a meeting of the
3State Board, and may order that a sufficient amount of general
4State aid or primary State aid be withheld from payments due to
5the district to correct the violations. This amount shall be
6paid to the regional superintendent who shall contract on
7behalf of the school board for the correction of the
8outstanding violations.
9    (c) The Office of the State Fire Marshal or a qualified
10fire official, as defined in Section 2-3.12 of this Code, to
11whom the State Fire Marshal has delegated his or her authority
12shall conduct an annual fire safety inspection of each school
13building in this State. The State Fire Marshal or the fire
14official shall coordinate its inspections with the regional
15superintendent. The inspection shall be based on the fire
16safety code authorized in Section 2-3.12 of this Code. Any
17violations shall be reported in writing to the regional
18superintendent and shall reference the specific code sections
19where a discrepancy has been identified within 15 days after
20the inspection has been conducted. The regional superintendent
21shall address those violations that are not corrected in a
22timely manner pursuant to subsection (b) of this Section. The
23inspection must be at no cost to the school district.
24    (d) If a municipality or, in the case of an unincorporated
25area, a county or, if applicable, a fire protection district
26wishes to perform new construction inspections under the

 

 

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1jurisdiction of a regional superintendent, then the entity must
2register this wish with the regional superintendent. These
3inspections must be based on the building code authorized in
4Section 2-3.12 of this Code. The inspections must be at no cost
5to the school district.
6(Source: P.A. 96-734, eff. 8-25-09.)
 
7    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
8    Sec. 7-14A. Annexation Compensation. There shall be no
9accounting made after a mere change in boundaries when no new
10district is created, except that those districts whose
11enrollment increases by 90% or more as a result of annexing
12territory detached from another district pursuant to this
13Article are eligible for supplementary State aid payments in
14accordance with Section 11E-135 of this Code. Eligible annexing
15districts shall apply to the State Board of Education for
16supplementary State aid payments by submitting enrollment
17figures for the year immediately preceding and the year
18immediately following the effective date of the boundary change
19for both the district gaining territory and the district losing
20territory. Copies of any intergovernmental agreements between
21the district gaining territory and the district losing
22territory detailing any transfer of fund balances and staff
23must also be submitted. In all instances of changes in
24boundaries, the district losing territory shall not count the
25average daily attendance of pupils living in the territory

 

 

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1during the year preceding the effective date of the boundary
2change in its claim for reimbursement under Section 18-8 or
318-8.15 for the school year following the effective date of the
4change in boundaries and the district receiving the territory
5shall count the average daily attendance of pupils living in
6the territory during the year preceding the effective date of
7the boundary change in its claim for reimbursement under
8Section 18-8 or 18-8.15 for the school year following the
9effective date of the change in boundaries. The changes to this
10Section made by this amendatory Act of the 95th General
11Assembly are intended to be retroactive and applicable to any
12annexation taking effect on or after July 1, 2004.
13(Source: P.A. 95-707, eff. 1-11-08.)
 
14    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
15    Sec. 10-19. Length of school term - experimental programs.
16Each school board shall annually prepare a calendar for the
17school term, specifying the opening and closing dates and
18providing a minimum term of at least 185 days to insure 176
19days of actual pupil attendance, computable under Section
2018-8.05 or 18-8.15, except that for the 1980-1981 school year
21only 175 days of actual pupil attendance shall be required
22because of the closing of schools pursuant to Section 24-2 on
23January 29, 1981 upon the appointment by the President of that
24day as a day of thanksgiving for the freedom of the Americans
25who had been held hostage in Iran. Any days allowed by law for

 

 

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1teachers' institutes institute but not used as such or used as
2parental institutes as provided in Section 10-22.18d shall
3increase the minimum term by the school days not so used.
4Except as provided in Section 10-19.1, the board may not extend
5the school term beyond such closing date unless that extension
6of term is necessary to provide the minimum number of
7computable days. In case of such necessary extension school
8employees shall be paid for such additional time on the basis
9of their regular contracts. A school board may specify a
10closing date earlier than that set on the annual calendar when
11the schools of the district have provided the minimum number of
12computable days under this Section. Nothing in this Section
13prevents the board from employing superintendents of schools,
14principals and other nonteaching personnel for a period of 12
15months, or in the case of superintendents for a period in
16accordance with Section 10-23.8, or prevents the board from
17employing other personnel before or after the regular school
18term with payment of salary proportionate to that received for
19comparable work during the school term.
20    A school board may make such changes in its calendar for
21the school term as may be required by any changes in the legal
22school holidays prescribed in Section 24-2. A school board may
23make changes in its calendar for the school term as may be
24necessary to reflect the utilization of teachers' institute
25days as parental institute days as provided in Section
2610-22.18d.

 

 

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1    The calendar for the school term and any changes must be
2submitted to and approved by the regional superintendent of
3schools before the calendar or changes may take effect.
4    With the prior approval of the State Board of Education and
5subject to review by the State Board of Education every 3
6years, any school board may, by resolution of its board and in
7agreement with affected exclusive collective bargaining
8agents, establish experimental educational programs, including
9but not limited to programs for self-directed learning or
10outside of formal class periods, which programs when so
11approved shall be considered to comply with the requirements of
12this Section as respects numbers of days of actual pupil
13attendance and with the other requirements of this Act as
14respects courses of instruction.
15(Source: P.A. 93-1036, eff. 9-14-04; revised 11-12-13.)
 
16    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
17    Sec. 10-22.5a. Attendance by dependents of United States
18military personnel, foreign exchange students, and certain
19nonresident pupils.
20    (a) To enter into written agreements with cultural exchange
21organizations, or with nationally recognized eleemosynary
22institutions that promote excellence in the arts, mathematics,
23or science. The written agreements may provide for tuition free
24attendance at the local district school by foreign exchange
25students, or by nonresident pupils of eleemosynary

 

 

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1institutions. The local board of education, as part of the
2agreement, may require that the cultural exchange program or
3the eleemosynary institutions provide services to the district
4in exchange for the waiver of nonresident tuition.
5    To enter into written agreements with adjacent school
6districts to provide for tuition free attendance by a student
7of the adjacent district when requested for the student's
8health and safety by the student or parent and both districts
9determine that the student's health or safety will be served by
10such attendance. Districts shall not be required to enter into
11such agreements nor be required to alter existing
12transportation services due to the attendance of such
13non-resident pupils.
14    (a-5) If, at the time of enrollment, a dependent of United
15States military personnel is housed in temporary housing
16located outside of a school district, but will be living within
17the district within 60 days after the time of initial
18enrollment, the dependent must be allowed to enroll, subject to
19the requirements of this subsection (a-5), and must not be
20charged tuition. Any United States military personnel
21attempting to enroll a dependent under this subsection (a-5)
22shall provide proof that the dependent will be living within
23the district within 60 days after the time of initial
24enrollment. Proof of residency may include, but is not limited
25to, postmarked mail addressed to the military personnel and
26sent to an address located within the district, a lease

 

 

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1agreement for occupancy of a residence located within the
2district, or proof of ownership of a residence located within
3the district.
4    (b) Nonresident pupils and foreign exchange students
5attending school on a tuition free basis under such agreements
6and nonresident dependents of United States military personnel
7attending school on a tuition free basis may be counted for the
8purposes of determining the apportionment of State aid provided
9under Section 18-8.05 or 18-8.15 of this Code, provided that
10any cultural exchange organization or eleemosynary
11institutions wishing to participate in an agreement authorized
12under this Section must be approved in writing by the State
13Board of Education. The State Board of Education may establish
14reasonable rules to determine the eligibility of cultural
15exchange organizations or eleemosynary institutions wishing to
16participate in agreements authorized under this Section. No
17organization or institution participating in agreements
18authorized under this Section may exclude any individual for
19participation in its program on account of the person's race,
20color, sex, religion or nationality.
21(Source: P.A. 93-740, eff. 7-15-04.)
 
22    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
23    Sec. 10-22.20. Classes for adults and youths whose
24schooling has been interrupted; conditions for State
25reimbursement; use of child care facilities.

 

 

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1    (a) To establish special classes for the instruction (1) of
2persons of age 21 years or over, and (2) of persons less than
3age 21 and not otherwise in attendance in public school, for
4the purpose of providing adults in the community, and youths
5whose schooling has been interrupted, with such additional
6basic education, vocational skill training, and other
7instruction as may be necessary to increase their
8qualifications for employment or other means of self-support
9and their ability to meet their responsibilities as citizens
10including courses of instruction regularly accepted for
11graduation from elementary or high schools and for
12Americanization and General Educational Development Review
13classes.
14    The board shall pay the necessary expenses of such classes
15out of school funds of the district, including costs of student
16transportation and such facilities or provision for child-care
17as may be necessary in the judgment of the board to permit
18maximum utilization of the courses by students with children,
19and other special needs of the students directly related to
20such instruction. The expenses thus incurred shall be subject
21to State reimbursement, as provided in this Section. The board
22may make a tuition charge for persons taking instruction who
23are not subject to State reimbursement, such tuition charge not
24to exceed the per capita cost of such classes.
25    The cost of such instruction, including the additional
26expenses herein authorized, incurred for recipients of

 

 

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1financial aid under the Illinois Public Aid Code, or for
2persons for whom education and training aid has been authorized
3under Section 9-8 of that Code, shall be assumed in its
4entirety from funds appropriated by the State to the Illinois
5Community College Board.
6    (b) The Illinois Community College Board shall establish
7the standards for the courses of instruction reimbursed under
8this Section. The Illinois Community College Board shall
9supervise the administration of the programs. The Illinois
10Community College Board shall determine the cost of instruction
11in accordance with standards established by the Illinois
12Community College Board, including therein other incidental
13costs as herein authorized, which shall serve as the basis of
14State reimbursement in accordance with the provisions of this
15Section. In the approval of programs and the determination of
16the cost of instruction, the Illinois Community College Board
17shall provide for the maximum utilization of federal funds for
18such programs. The Illinois Community College Board shall also
19provide for:
20        (1) the development of an index of need for program
21    planning and for area funding allocations, as defined by
22    the Illinois Community College Board;
23        (2) the method for calculating hours of instruction, as
24    defined by the Illinois Community College Board, claimable
25    for reimbursement and a method to phase in the calculation
26    and for adjusting the calculations in cases where the

 

 

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1    services of a program are interrupted due to circumstances
2    beyond the control of the program provider;
3        (3) a plan for the reallocation of funds to increase
4    the amount allocated for grants based upon program
5    performance as set forth in subsection (d) below; and
6        (4) the development of standards for determining
7    grants based upon performance as set forth in subsection
8    (d) below and a plan for the phased-in implementation of
9    those standards.
10    For instruction provided by school districts and community
11college districts beginning July 1, 1996 and thereafter,
12reimbursement provided by the Illinois Community College Board
13for classes authorized by this Section shall be provided from
14funds appropriated for the reimbursement criteria set forth in
15subsection (c) below.
16    (c) Upon the annual approval of the Illinois Community
17College Board, reimbursement shall be first provided for
18transportation, child care services, and other special needs of
19the students directly related to instruction and then from the
20funds remaining an amount equal to the product of the total
21credit hours or units of instruction approved by the Illinois
22Community College Board, multiplied by the following:
23        (1) For adult basic education, the maximum
24    reimbursement per credit hour or per unit of instruction
25    shall be equal to (i) through fiscal year 2014, the general
26    state aid per pupil foundation level established in

 

 

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1    subsection (B) of Section 18-8.05, divided by 60, or (ii)
2    in fiscal year 2015 and thereafter, the foundation level
3    established pursuant to subsection (b) of Section 18-8.15
4    of this Code, divided by 60;
5        (2) The maximum reimbursement per credit hour or per
6    unit of instruction in subparagraph (1) above shall be
7    weighted for students enrolled in classes defined as
8    vocational skills and approved by the Illinois Community
9    College Board by 1.25;
10        (3) The maximum reimbursement per credit hour or per
11    unit of instruction in subparagraph (1) above shall be
12    multiplied by .90 for students enrolled in classes defined
13    as adult secondary education programs and approved by the
14    Illinois Community College Board;
15        (4) (Blank); and
16        (5) Funding for program years after 1999-2000 shall be
17    determined by the Illinois Community College Board.
18    (d) Upon its annual approval, the Illinois Community
19College Board shall provide grants to eligible programs for
20supplemental activities to improve or expand services under the
21Adult Education Act. Eligible programs shall be determined
22based upon performance outcomes of students in the programs as
23set by the Illinois Community College Board.
24    (e) Reimbursement under this Section shall not exceed the
25actual costs of the approved program.
26    If the amount appropriated to the Illinois Community

 

 

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1College Board for reimbursement under this Section is less than
2the amount required under this Act, the apportionment shall be
3proportionately reduced.
4    School districts and community college districts may
5assess students up to $3.00 per credit hour, for classes other
6than Adult Basic Education level programs, if needed to meet
7program costs.
8    (f) An education plan shall be established for each adult
9or youth whose schooling has been interrupted and who is
10participating in the instructional programs provided under
11this Section.
12    Each school board and community college shall keep an
13accurate and detailed account of the students assigned to and
14receiving instruction under this Section who are subject to
15State reimbursement and shall submit reports of services
16provided commencing with fiscal year 1997 as required by the
17Illinois Community College Board.
18    For classes authorized under this Section, a credit hour or
19unit of instruction is equal to 15 hours of direct instruction
20for students enrolled in approved adult education programs at
21midterm and making satisfactory progress, in accordance with
22standards established by the Illinois Community College Board.
23    (g) Upon proof submitted to the Illinois Department of
24Human Services of the payment of all claims submitted under
25this Section, that Department shall apply for federal funds
26made available therefor and any federal funds so received shall

 

 

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1be paid into the General Revenue Fund in the State Treasury.
2    School districts or community colleges providing classes
3under this Section shall submit applications to the Illinois
4Community College Board for preapproval in accordance with the
5standards established by the Illinois Community College Board.
6Payments shall be made by the Illinois Community College Board
7based upon approved programs. Interim expenditure reports may
8be required by the Illinois Community College Board. Final
9claims for the school year shall be submitted to the regional
10superintendents for transmittal to the Illinois Community
11College Board. Final adjusted payments shall be made by
12September 30.
13    If a school district or community college district fails to
14provide, or is providing unsatisfactory or insufficient
15classes under this Section, the Illinois Community College
16Board may enter into agreements with public or private
17educational or other agencies other than the public schools for
18the establishment of such classes.
19    (h) If a school district or community college district
20establishes child-care facilities for the children of
21participants in classes established under this Section, it may
22extend the use of these facilities to students who have
23obtained employment and to other persons in the community whose
24children require care and supervision while the parent or other
25person in charge of the children is employed or otherwise
26absent from the home during all or part of the day. It may make

 

 

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1the facilities available before and after as well as during
2regular school hours to school age and preschool age children
3who may benefit thereby, including children who require care
4and supervision pending the return of their parent or other
5person in charge of their care from employment or other
6activity requiring absence from the home.
7    The Illinois Community College Board shall pay to the board
8the cost of care in the facilities for any child who is a
9recipient of financial aid under the Illinois Public Aid Code.
10    The board may charge for care of children for whom it
11cannot make claim under the provisions of this Section. The
12charge shall not exceed per capita cost, and to the extent
13feasible, shall be fixed at a level which will permit
14utilization by employed parents of low or moderate income. It
15may also permit any other State or local governmental agency or
16private agency providing care for children to purchase care.
17    After July 1, 1970 when the provisions of Section 10-20.20
18become operative in the district, children in a child-care
19facility shall be transferred to the kindergarten established
20under that Section for such portion of the day as may be
21required for the kindergarten program, and only the prorated
22costs of care and training provided in the Center for the
23remaining period shall be charged to the Illinois Department of
24Human Services or other persons or agencies paying for such
25care.
26    (i) The provisions of this Section shall also apply to

 

 

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1school districts having a population exceeding 500,000.
2    (j) In addition to claiming reimbursement under this
3Section, a school district may claim general State aid under
4Section 18-8.05 or primary State aid under Section 18-8.15 for
5any student under age 21 who is enrolled in courses accepted
6for graduation from elementary or high school and who otherwise
7meets the requirements of Section 18-8.05 or 18-8.15, as
8applicable.
9(Source: P.A. 95-331, eff. 8-21-07.)
 
10    (105 ILCS 5/10-29)
11    Sec. 10-29. Remote educational programs.
12    (a) For purposes of this Section, "remote educational
13program" means an educational program delivered to students in
14the home or other location outside of a school building that
15meets all of the following criteria:
16        (1) A student may participate in the program only after
17    the school district, pursuant to adopted school board
18    policy, and a person authorized to enroll the student under
19    Section 10-20.12b of this Code determine that a remote
20    educational program will best serve the student's
21    individual learning needs. The adopted school board policy
22    shall include, but not be limited to, all of the following:
23            (A) Criteria for determining that a remote
24        educational program will best serve a student's
25        individual learning needs. The criteria must include

 

 

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1        consideration of, at a minimum, a student's prior
2        attendance, disciplinary record, and academic history.
3            (B) Any limitations on the number of students or
4        grade levels that may participate in a remote
5        educational program.
6            (C) A description of the process that the school
7        district will use to approve participation in the
8        remote educational program. The process must include
9        without limitation a requirement that, for any student
10        who qualifies to receive services pursuant to the
11        federal Individuals with Disabilities Education
12        Improvement Act of 2004, the student's participation
13        in a remote educational program receive prior approval
14        from the student's individualized education program
15        team.
16            (D) A description of the process the school
17        district will use to develop and approve a written
18        remote educational plan that meets the requirements of
19        subdivision (5) of this subsection (a).
20            (E) A description of the system the school district
21        will establish to calculate the number of clock hours a
22        student is participating in instruction in accordance
23        with the remote educational program.
24            (F) A description of the process for renewing a
25        remote educational program at the expiration of its
26        term.

 

 

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1            (G) Such other terms and provisions as the school
2        district deems necessary to provide for the
3        establishment and delivery of a remote educational
4        program.
5        (2) The school district has determined that the remote
6    educational program's curriculum is aligned to State
7    learning standards and that the program offers instruction
8    and educational experiences consistent with those given to
9    students at the same grade level in the district.
10        (3) The remote educational program is delivered by
11    instructors that meet the following qualifications:
12            (A) they are certificated under Article 21 of this
13        Code;
14            (B) they meet applicable highly qualified criteria
15        under the federal No Child Left Behind Act of 2001; and
16            (C) they have responsibility for all of the
17        following elements of the program: planning
18        instruction, diagnosing learning needs, prescribing
19        content delivery through class activities, assessing
20        learning, reporting outcomes to administrators and
21        parents and guardians, and evaluating the effects of
22        instruction.
23        (4) During the period of time from and including the
24    opening date to the closing date of the regular school term
25    of the school district established pursuant to Section
26    10-19 of this Code, participation in a remote educational

 

 

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1    program may be claimed for general State aid purposes under
2    Section 18-8.05 of this Code or primary State aid purposes
3    under Section 18-8.15 of this Code on any calendar day,
4    notwithstanding whether the day is a day of pupil
5    attendance or institute day on the school district's
6    calendar or any other provision of law restricting
7    instruction on that day. If the district holds year-round
8    classes in some buildings, the district shall classify each
9    student's participation in a remote educational program as
10    either on a year-round or a non-year-round schedule for
11    purposes of claiming general State aid or primary State
12    aid. Outside of the regular school term of the district,
13    the remote educational program may be offered as part of
14    any summer school program authorized by this Code.
15        (5) Each student participating in a remote educational
16    program must have a written remote educational plan that
17    has been approved by the school district and a person
18    authorized to enroll the student under Section 10-20.12b of
19    this Code. The school district and a person authorized to
20    enroll the student under Section 10-20.12b of this Code
21    must approve any amendment to a remote educational plan.
22    The remote educational plan must include, but is not
23    limited to, all of the following:
24            (A) Specific achievement goals for the student
25        aligned to State learning standards.
26            (B) A description of all assessments that will be

 

 

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1        used to measure student progress, which description
2        shall indicate the assessments that will be
3        administered at an attendance center within the school
4        district.
5            (C) A description of the progress reports that will
6        be provided to the school district and the person or
7        persons authorized to enroll the student under Section
8        10-20.12b of this Code.
9            (D) Expectations, processes, and schedules for
10        interaction between a teacher and student.
11            (E) A description of the specific responsibilities
12        of the student's family and the school district with
13        respect to equipment, materials, phone and Internet
14        service, and any other requirements applicable to the
15        home or other location outside of a school building
16        necessary for the delivery of the remote educational
17        program.
18            (F) If applicable, a description of how the remote
19        educational program will be delivered in a manner
20        consistent with the student's individualized education
21        program required by Section 614(d) of the federal
22        Individuals with Disabilities Education Improvement
23        Act of 2004 or plan to ensure compliance with Section
24        504 of the federal Rehabilitation Act of 1973.
25            (G) A description of the procedures and
26        opportunities for participation in academic and

 

 

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1        extra-curricular activities and programs within the
2        school district.
3            (H) The identification of a parent, guardian, or
4        other responsible adult who will provide direct
5        supervision of the program. The plan must include an
6        acknowledgment by the parent, guardian, or other
7        responsible adult that he or she may engage only in
8        non-teaching duties not requiring instructional
9        judgment or the evaluation of a student. The plan shall
10        designate the parent, guardian, or other responsible
11        adult as non-teaching personnel or volunteer personnel
12        under subsection (a) of Section 10-22.34 of this Code.
13            (I) The identification of a school district
14        administrator who will oversee the remote educational
15        program on behalf of the school district and who may be
16        contacted by the student's parents with respect to any
17        issues or concerns with the program.
18            (J) The term of the student's participation in the
19        remote educational program, which may not extend for
20        longer than 12 months, unless the term is renewed by
21        the district in accordance with subdivision (7) of this
22        subsection (a).
23            (K) A description of the specific location or
24        locations in which the program will be delivered. If
25        the remote educational program is to be delivered to a
26        student in any location other than the student's home,

 

 

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1        the plan must include a written determination by the
2        school district that the location will provide a
3        learning environment appropriate for the delivery of
4        the program. The location or locations in which the
5        program will be delivered shall be deemed a long
6        distance teaching reception area under subsection (a)
7        of Section 10-22.34 of this Code.
8            (L) Certification by the school district that the
9        plan meets all other requirements of this Section.
10        (6) Students participating in a remote educational
11    program must be enrolled in a school district attendance
12    center pursuant to the school district's enrollment policy
13    or policies. A student participating in a remote
14    educational program must be tested as part of all
15    assessments administered by the school district pursuant
16    to Section 2-3.64 of this Code at the attendance center in
17    which the student is enrolled and in accordance with the
18    attendance center's assessment policies and schedule. The
19    student must be included within all adequate yearly
20    progress and other accountability determinations for the
21    school district and attendance center under State and
22    federal law.
23        (7) The term of a student's participation in a remote
24    educational program may not extend for longer than 12
25    months, unless the term is renewed by the school district.
26    The district may only renew a student's participation in a

 

 

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1    remote educational program following an evaluation of the
2    student's progress in the program, a determination that the
3    student's continuation in the program will best serve the
4    student's individual learning needs, and an amendment to
5    the student's written remote educational plan addressing
6    any changes for the upcoming term of the program.
7    (b) A school district may, by resolution of its school
8board, establish a remote educational program.
9    (c) Clock hours of instruction by students in a remote
10educational program meeting the requirements of this Section
11may be claimed by the school district and shall be counted as
12school work for general State aid purposes in accordance with
13and subject to the limitations of Section 18-8.05 of this Code
14or primary State aid purposes in accordance with and subject to
15the limitations of Section 18-8.15 of this Code.
16    (d) The impact of remote educational programs on wages,
17hours, and terms and conditions of employment of educational
18employees within the school district shall be subject to local
19collective bargaining agreements.
20    (e) The use of a home or other location outside of a school
21building for a remote educational program shall not cause the
22home or other location to be deemed a public school facility.
23    (f) A remote educational program may be used, but is not
24required, for instruction delivered to a student in the home or
25other location outside of a school building that is not claimed
26for general State aid purposes under Section 18-8.05 of this

 

 

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1Code or primary State aid purposes under Section 18-8.15 of
2this Code.
3    (g) School districts that, pursuant to this Section, adopt
4a policy for a remote educational program must submit to the
5State Board of Education a copy of the policy and any
6amendments thereto, as well as data on student participation in
7a format specified by the State Board of Education. The State
8Board of Education may perform or contract with an outside
9entity to perform an evaluation of remote educational programs
10in this State.
11    (h) The State Board of Education may adopt any rules
12necessary to ensure compliance by remote educational programs
13with the requirements of this Section and other applicable
14legal requirements.
15(Source: P.A. 96-684, eff. 8-25-09; 97-339, eff. 8-12-11.)
 
16    (105 ILCS 5/11E-135)
17    Sec. 11E-135. Incentives. For districts reorganizing under
18this Article and for a district or districts that annex all of
19the territory of one or more entire other school districts in
20accordance with Article 7 of this Code, the following payments
21shall be made from appropriations made for these purposes:
22    (a)(1) For a combined school district, as defined in
23Section 11E-20 of this Code, or for a unit district, as defined
24in Section 11E-25 of this Code, for its first year of
25existence, the general State aid and supplemental general State

 

 

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1aid calculated under Section 18-8.05 of this Code or the
2primary State aid and supplemental grants calculated under
3Section 18-8.15 of this Code, as applicable, shall be computed
4for the new district and for the previously existing districts
5for which property is totally included within the new district.
6If the computation on the basis of the previously existing
7districts is greater, a supplementary payment equal to the
8difference shall be made for the first 4 years of existence of
9the new district.
10    (2) For a school district that annexes all of the territory
11of one or more entire other school districts as defined in
12Article 7 of this Code, for the first year during which the
13change of boundaries attributable to the annexation becomes
14effective for all purposes, as determined under Section 7-9 of
15this Code, the general State aid and supplemental general State
16aid calculated under Section 18-8.05 of this Code or the
17primary State aid and supplemental grants calculated under
18Section 18-8.15 of this Code, as applicable, shall be computed
19for the annexing district as constituted after the annexation
20and for the annexing and each annexed district as constituted
21prior to the annexation; and if the computation on the basis of
22the annexing and annexed districts as constituted prior to the
23annexation is greater, then a supplementary payment equal to
24the difference shall be made for the first 4 years of existence
25of the annexing school district as constituted upon the
26annexation.

 

 

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1    (3) For 2 or more school districts that annex all of the
2territory of one or more entire other school districts, as
3defined in Article 7 of this Code, for the first year during
4which the change of boundaries attributable to the annexation
5becomes effective for all purposes, as determined under Section
67-9 of this Code, the general State aid and supplemental
7general State aid calculated under Section 18-8.05 of this Code
8or the primary State aid and supplemental grants calculated
9under Section 18-8.15 of this Code, as applicable, shall be
10computed for each annexing district as constituted after the
11annexation and for each annexing and annexed district as
12constituted prior to the annexation; and if the aggregate of
13the general State aid and supplemental general State aid or
14primary State aid and supplemental grants, as applicable, as so
15computed for the annexing districts as constituted after the
16annexation is less than the aggregate of the general State aid
17and supplemental general State aid or primary State aid and
18supplemental grants, as applicable, as so computed for the
19annexing and annexed districts, as constituted prior to the
20annexation, then a supplementary payment equal to the
21difference shall be made and allocated between or among the
22annexing districts, as constituted upon the annexation, for the
23first 4 years of their existence. The total difference payment
24shall be allocated between or among the annexing districts in
25the same ratio as the pupil enrollment from that portion of the
26annexed district or districts that is annexed to each annexing

 

 

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1district bears to the total pupil enrollment from the entire
2annexed district or districts, as such pupil enrollment is
3determined for the school year last ending prior to the date
4when the change of boundaries attributable to the annexation
5becomes effective for all purposes. The amount of the total
6difference payment and the amount thereof to be allocated to
7the annexing districts shall be computed by the State Board of
8Education on the basis of pupil enrollment and other data that
9shall be certified to the State Board of Education, on forms
10that it shall provide for that purpose, by the regional
11superintendent of schools for each educational service region
12in which the annexing and annexed districts are located.
13    (4) For a school district conversion, as defined in Section
1411E-15 of this Code, or a multi-unit conversion, as defined in
15subsection (b) of Section 11E-30 of this Code, if in their
16first year of existence the newly created elementary districts
17and the newly created high school district, from a school
18district conversion, or the newly created elementary district
19or districts and newly created combined high school - unit
20district, from a multi-unit conversion, qualify for less
21general State aid under Section 18-8.05 of this Code or primary
22State aid under Section 18-8.15 of this Code than would have
23been payable under Section 18-8.05 or 18-8.15, as applicable,
24for that same year to the previously existing districts, then a
25supplementary payment equal to that difference shall be made
26for the first 4 years of existence of the newly created

 

 

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1districts. The aggregate amount of each supplementary payment
2shall be allocated among the newly created districts in the
3proportion that the deemed pupil enrollment in each district
4during its first year of existence bears to the actual
5aggregate pupil enrollment in all of the districts during their
6first year of existence. For purposes of each allocation:
7        (A) the deemed pupil enrollment of the newly created
8    high school district from a school district conversion
9    shall be an amount equal to its actual pupil enrollment for
10    its first year of existence multiplied by 1.25;
11        (B) the deemed pupil enrollment of each newly created
12    elementary district from a school district conversion
13    shall be an amount equal to its actual pupil enrollment for
14    its first year of existence reduced by an amount equal to
15    the product obtained when the amount by which the newly
16    created high school district's deemed pupil enrollment
17    exceeds its actual pupil enrollment for its first year of
18    existence is multiplied by a fraction, the numerator of
19    which is the actual pupil enrollment of the newly created
20    elementary district for its first year of existence and the
21    denominator of which is the actual aggregate pupil
22    enrollment of all of the newly created elementary districts
23    for their first year of existence;
24        (C) the deemed high school pupil enrollment of the
25    newly created combined high school - unit district from a
26    multi-unit conversion shall be an amount equal to its

 

 

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1    actual grades 9 through 12 pupil enrollment for its first
2    year of existence multiplied by 1.25; and
3        (D) the deemed elementary pupil enrollment of each
4    newly created district from a multi-unit conversion shall
5    be an amount equal to each district's actual grade K
6    through 8 pupil enrollment for its first year of existence,
7    reduced by an amount equal to the product obtained when the
8    amount by which the newly created combined high school -
9    unit district's deemed high school pupil enrollment
10    exceeds its actual grade 9 through 12 pupil enrollment for
11    its first year of existence is multiplied by a fraction,
12    the numerator of which is the actual grade K through 8
13    pupil enrollment of each newly created district for its
14    first year of existence and the denominator of which is the
15    actual aggregate grade K through 8 pupil enrollment of all
16    such newly created districts for their first year of
17    existence.
18     The aggregate amount of each supplementary payment under
19this subdivision (4) and the amount thereof to be allocated to
20the newly created districts shall be computed by the State
21Board of Education on the basis of pupil enrollment and other
22data, which shall be certified to the State Board of Education,
23on forms that it shall provide for that purpose, by the
24regional superintendent of schools for each educational
25service region in which the newly created districts are
26located.

 

 

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1    (5) For a partial elementary unit district, as defined in
2subsection (a) or (c) of Section 11E-30 of this Code, if, in
3the first year of existence, the newly created partial
4elementary unit district qualifies for less general State aid
5and supplemental general State aid under Section 18-8.05 of
6this Code or less primary State aid and supplemental grants
7under Section 18-8.15 of this Code, as applicable, than would
8have been payable under those Sections that Section for that
9same year to the previously existing districts that formed the
10partial elementary unit district, then a supplementary payment
11equal to that difference shall be made to the partial
12elementary unit district for the first 4 years of existence of
13that newly created district.
14    (6) For an elementary opt-in, as described in subsection
15(d) of Section 11E-30 of this Code, the general State aid or
16primary State aid difference shall be computed in accordance
17with paragraph (5) of this subsection (a) as if the elementary
18opt-in was included in an optional elementary unit district at
19the optional elementary unit district's original effective
20date. If the calculation in this paragraph (6) is less than
21that calculated in paragraph (5) of this subsection (a) at the
22optional elementary unit district's original effective date,
23then no adjustments may be made. If the calculation in this
24paragraph (6) is more than that calculated in paragraph (5) of
25this subsection (a) at the optional elementary unit district's
26original effective date, then the excess must be paid as

 

 

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1follows:
2        (A) If the effective date for the elementary opt-in is
3    one year after the effective date for the optional
4    elementary unit district, 100% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    each of the first 4 years after the effective date of the
7    elementary opt-in.
8        (B) If the effective date for the elementary opt-in is
9    2 years after the effective date for the optional
10    elementary unit district, 75% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    each of the first 4 years after the effective date of the
13    elementary opt-in.
14        (C) If the effective date for the elementary opt-in is
15    3 years after the effective date for the optional
16    elementary unit district, 50% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    each of the first 4 years after the effective date of the
19    elementary opt-in.
20        (D) If the effective date for the elementary opt-in is
21    4 years after the effective date for the optional
22    elementary unit district, 25% of the calculated excess
23    shall be paid to the optional elementary unit district in
24    each of the first 4 years after the effective date of the
25    elementary opt-in.
26        (E) If the effective date for the elementary opt-in is

 

 

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1    5 years after the effective date for the optional
2    elementary unit district, the optional elementary unit
3    district is not eligible for any additional incentives due
4    to the elementary opt-in.
5    (6.5) For a school district that annexes territory detached
6from another school district whereby the enrollment of the
7annexing district increases by 90% or more as a result of the
8annexation, for the first year during which the change of
9boundaries attributable to the annexation becomes effective
10for all purposes as determined under Section 7-9 of this Code,
11the general State aid and supplemental general State aid or
12primary State aid and supplemental grants, as applicable,
13calculated under this Section shall be computed for the
14district gaining territory and the district losing territory as
15constituted after the annexation and for the same districts as
16constituted prior to the annexation; and if the aggregate of
17the general State aid and supplemental general State aid or
18primary State aid and supplemental grants, as applicable, as so
19computed for the district gaining territory and the district
20losing territory as constituted after the annexation is less
21than the aggregate of the general State aid and supplemental
22general State aid or primary State aid and supplemental grants,
23as applicable, as so computed for the district gaining
24territory and the district losing territory as constituted
25prior to the annexation, then a supplementary payment shall be
26made to the annexing district for the first 4 years of

 

 

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1existence after the annexation, equal to the difference
2multiplied by the ratio of student enrollment in the territory
3detached to the total student enrollment in the district losing
4territory for the year prior to the effective date of the
5annexation. The amount of the total difference and the
6proportion paid to the annexing district shall be computed by
7the State Board of Education on the basis of pupil enrollment
8and other data that must be submitted to the State Board of
9Education in accordance with Section 7-14A of this Code. The
10changes to this Section made by Public Act 95-707 are intended
11to be retroactive and applicable to any annexation taking
12effect on or after July 1, 2004. For annexations that are
13eligible for payments under this paragraph (6.5) and that are
14effective on or after July 1, 2004, but before January 11, 2008
15(the effective date of Public Act 95-707), the first required
16yearly payment under this paragraph (6.5) shall be paid in the
17fiscal year of January 11, 2008 (the effective date of Public
18Act 95-707). Subsequent required yearly payments shall be paid
19in subsequent fiscal years until the payment obligation under
20this paragraph (6.5) is complete.
21    (7) Claims for financial assistance under this subsection
22(a) may not be recomputed except as expressly provided under
23Section 18-8.05 or 18-8.15 of this Code.
24    (8) Any supplementary payment made under this subsection
25(a) must be treated as separate from all other payments made
26pursuant to Section 18-8.05 or 18-8.15 of this Code.

 

 

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1    (b)(1) After the formation of a combined school district,
2as defined in Section 11E-20 of this Code, or a unit district,
3as defined in Section 11E-25 of this Code, a computation shall
4be made to determine the difference between the salaries
5effective in each of the previously existing districts on June
630, prior to the creation of the new district. For the first 4
7years after the formation of the new district, a supplementary
8State aid reimbursement shall be paid to the new district equal
9to the difference between the sum of the salaries earned by
10each of the certificated members of the new district, while
11employed in one of the previously existing districts during the
12year immediately preceding the formation of the new district,
13and the sum of the salaries those certificated members would
14have been paid during the year immediately prior to the
15formation of the new district if placed on the salary schedule
16of the previously existing district with the highest salary
17schedule.
18    (2) After the territory of one or more school districts is
19annexed by one or more other school districts as defined in
20Article 7 of this Code, a computation shall be made to
21determine the difference between the salaries effective in each
22annexed district and in the annexing district or districts as
23they were each constituted on June 30 preceding the date when
24the change of boundaries attributable to the annexation became
25effective for all purposes, as determined under Section 7-9 of
26this Code. For the first 4 years after the annexation, a

 

 

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1supplementary State aid reimbursement shall be paid to each
2annexing district as constituted after the annexation equal to
3the difference between the sum of the salaries earned by each
4of the certificated members of the annexing district as
5constituted after the annexation, while employed in an annexed
6or annexing district during the year immediately preceding the
7annexation, and the sum of the salaries those certificated
8members would have been paid during the immediately preceding
9year if placed on the salary schedule of whichever of the
10annexing or annexed districts had the highest salary schedule
11during the immediately preceding year.
12    (3) For each new high school district formed under a school
13district conversion, as defined in Section 11E-15 of this Code,
14the State shall make a supplementary payment for 4 years equal
15to the difference between the sum of the salaries earned by
16each certified member of the new high school district, while
17employed in one of the previously existing districts, and the
18sum of the salaries those certified members would have been
19paid if placed on the salary schedule of the previously
20existing district with the highest salary schedule.
21    (4) For each newly created partial elementary unit
22district, the State shall make a supplementary payment for 4
23years equal to the difference between the sum of the salaries
24earned by each certified member of the newly created partial
25elementary unit district, while employed in one of the
26previously existing districts that formed the partial

 

 

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1elementary unit district, and the sum of the salaries those
2certified members would have been paid if placed on the salary
3schedule of the previously existing district with the highest
4salary schedule. The salary schedules used in the calculation
5shall be those in effect in the previously existing districts
6for the school year prior to the creation of the new partial
7elementary unit district.
8    (5) For an elementary district opt-in, as described in
9subsection (d) of Section 11E-30 of this Code, the salary
10difference incentive shall be computed in accordance with
11paragraph (4) of this subsection (b) as if the opted-in
12elementary district was included in the optional elementary
13unit district at the optional elementary unit district's
14original effective date. If the calculation in this paragraph
15(5) is less than that calculated in paragraph (4) of this
16subsection (b) at the optional elementary unit district's
17original effective date, then no adjustments may be made. If
18the calculation in this paragraph (5) is more than that
19calculated in paragraph (4) of this subsection (b) at the
20optional elementary unit district's original effective date,
21then the excess must be paid as follows:
22        (A) If the effective date for the elementary opt-in is
23    one year after the effective date for the optional
24    elementary unit district, 100% of the calculated excess
25    shall be paid to the optional elementary unit district in
26    each of the first 4 years after the effective date of the

 

 

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1    elementary opt-in.
2        (B) If the effective date for the elementary opt-in is
3    2 years after the effective date for the optional
4    elementary unit district, 75% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    each of the first 4 years after the effective date of the
7    elementary opt-in.
8        (C) If the effective date for the elementary opt-in is
9    3 years after the effective date for the optional
10    elementary unit district, 50% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    each of the first 4 years after the effective date of the
13    elementary opt-in.
14        (D) If the effective date for the elementary opt-in is
15    4 years after the effective date for the partial elementary
16    unit district, 25% of the calculated excess shall be paid
17    to the optional elementary unit district in each of the
18    first 4 years after the effective date of the elementary
19    opt-in.
20        (E) If the effective date for the elementary opt-in is
21    5 years after the effective date for the optional
22    elementary unit district, the optional elementary unit
23    district is not eligible for any additional incentives due
24    to the elementary opt-in.
25    (5.5) After the formation of a cooperative high school by 2
26or more school districts under Section 10-22.22c of this Code,

 

 

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1a computation shall be made to determine the difference between
2the salaries effective in each of the previously existing high
3schools on June 30 prior to the formation of the cooperative
4high school. For the first 4 years after the formation of the
5cooperative high school, a supplementary State aid
6reimbursement shall be paid to the cooperative high school
7equal to the difference between the sum of the salaries earned
8by each of the certificated members of the cooperative high
9school while employed in one of the previously existing high
10schools during the year immediately preceding the formation of
11the cooperative high school and the sum of the salaries those
12certificated members would have been paid during the year
13immediately prior to the formation of the cooperative high
14school if placed on the salary schedule of the previously
15existing high school with the highest salary schedule.
16    (5.10) After the annexation of territory detached from
17another school district whereby the enrollment of the annexing
18district increases by 90% or more as a result of the
19annexation, a computation shall be made to determine the
20difference between the salaries effective in the district
21gaining territory and the district losing territory as they
22each were constituted on June 30 preceding the date when the
23change of boundaries attributable to the annexation became
24effective for all purposes as determined under Section 7-9 of
25this Code. For the first 4 years after the annexation, a
26supplementary State aid reimbursement shall be paid to the

 

 

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1annexing district equal to the difference between the sum of
2the salaries earned by each of the certificated members of the
3annexing district as constituted after the annexation while
4employed in the district gaining territory or the district
5losing territory during the year immediately preceding the
6annexation and the sum of the salaries those certificated
7members would have been paid during such immediately preceding
8year if placed on the salary schedule of whichever of the
9district gaining territory or district losing territory had the
10highest salary schedule during the immediately preceding year.
11To be eligible for supplementary State aid reimbursement under
12this Section, the intergovernmental agreement to be submitted
13pursuant to Section 7-14A of this Code must show that staff
14members were transferred from the control of the district
15losing territory to the control of the district gaining
16territory in the annexation. The changes to this Section made
17by Public Act 95-707 are intended to be retroactive and
18applicable to any annexation taking effect on or after July 1,
192004. For annexations that are eligible for payments under this
20paragraph (5.10) and that are effective on or after July 1,
212004, but before January 11, 2008 (the effective date of Public
22Act 95-707), the first required yearly payment under this
23paragraph (5.10) shall be paid in the fiscal year of January
2411, 2008 (the effective date of Public Act 95-707). Subsequent
25required yearly payments shall be paid in subsequent fiscal
26years until the payment obligation under this paragraph (5.10)

 

 

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1is complete.
2    (5.15) After the deactivation of a school facility in
3accordance with Section 10-22.22b of this Code, a computation
4shall be made to determine the difference between the salaries
5effective in the sending school district and each receiving
6school district on June 30 prior to the deactivation of the
7school facility. For the lesser of the first 4 years after the
8deactivation of the school facility or the length of the
9deactivation agreement, including any renewals of the original
10deactivation agreement, a supplementary State aid
11reimbursement shall be paid to each receiving district equal to
12the difference between the sum of the salaries earned by each
13of the certificated members transferred to that receiving
14district as a result of the deactivation while employed in the
15sending district during the year immediately preceding the
16deactivation and the sum of the salaries those certificated
17members would have been paid during the year immediately
18preceding the deactivation if placed on the salary schedule of
19the sending or receiving district with the highest salary
20schedule.
21    (6) The supplementary State aid reimbursement under this
22subsection (b) shall be treated as separate from all other
23payments made pursuant to Section 18-8.05 of this Code. In the
24case of the formation of a new district or cooperative high
25school or a deactivation, reimbursement shall begin during the
26first year of operation of the new district or cooperative high

 

 

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1school or the first year of the deactivation, and in the case
2of an annexation of the territory of one or more school
3districts by one or more other school districts or the
4annexation of territory detached from a school district whereby
5the enrollment of the annexing district increases by 90% or
6more as a result of the annexation, reimbursement shall begin
7during the first year when the change in boundaries
8attributable to the annexation becomes effective for all
9purposes as determined pursuant to Section 7-9 of this Code,
10except that for an annexation of territory detached from a
11school district that is effective on or after July 1, 2004, but
12before January 11, 2008 (the effective date of Public Act
1395-707), whereby the enrollment of the annexing district
14increases by 90% or more as a result of the annexation,
15reimbursement shall begin during the fiscal year of January 11,
162008 (the effective date of Public Act 95-707). Each year that
17the new, annexing, or receiving district or cooperative high
18school, as the case may be, is entitled to receive
19reimbursement, the number of eligible certified members who are
20employed on October 1 in the district or cooperative high
21school shall be certified to the State Board of Education on
22prescribed forms by October 15 and payment shall be made on or
23before November 15 of that year.
24    (c)(1) For the first year after the formation of a combined
25school district, as defined in Section 11E-20 of this Code or a
26unit district, as defined in Section 11E-25 of this Code, a

 

 

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1computation shall be made totaling each previously existing
2district's audited fund balances in the educational fund,
3working cash fund, operations and maintenance fund, and
4transportation fund for the year ending June 30 prior to the
5referendum for the creation of the new district. The new
6district shall be paid supplementary State aid equal to the sum
7of the differences between the deficit of the previously
8existing district with the smallest deficit and the deficits of
9each of the other previously existing districts.
10    (2) For the first year after the annexation of all of the
11territory of one or more entire school districts by another
12school district, as defined in Article 7 of this Code,
13computations shall be made, for the year ending June 30 prior
14to the date that the change of boundaries attributable to the
15annexation is allowed by the affirmative decision issued by the
16regional board of school trustees under Section 7-6 of this
17Code, notwithstanding any effort to seek administrative review
18of the decision, totaling the annexing district's and totaling
19each annexed district's audited fund balances in their
20respective educational, working cash, operations and
21maintenance, and transportation funds. The annexing district
22as constituted after the annexation shall be paid supplementary
23State aid equal to the sum of the differences between the
24deficit of whichever of the annexing or annexed districts as
25constituted prior to the annexation had the smallest deficit
26and the deficits of each of the other districts as constituted

 

 

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1prior to the annexation.
2    (3) For the first year after the annexation of all of the
3territory of one or more entire school districts by 2 or more
4other school districts, as defined by Article 7 of this Code,
5computations shall be made, for the year ending June 30 prior
6to the date that the change of boundaries attributable to the
7annexation is allowed by the affirmative decision of the
8regional board of school trustees under Section 7-6 of this
9Code, notwithstanding any action for administrative review of
10the decision, totaling each annexing and annexed district's
11audited fund balances in their respective educational, working
12cash, operations and maintenance, and transportation funds.
13The annexing districts as constituted after the annexation
14shall be paid supplementary State aid, allocated as provided in
15this paragraph (3), in an aggregate amount equal to the sum of
16the differences between the deficit of whichever of the
17annexing or annexed districts as constituted prior to the
18annexation had the smallest deficit and the deficits of each of
19the other districts as constituted prior to the annexation. The
20aggregate amount of the supplementary State aid payable under
21this paragraph (3) shall be allocated between or among the
22annexing districts as follows:
23        (A) the regional superintendent of schools for each
24    educational service region in which an annexed district is
25    located prior to the annexation shall certify to the State
26    Board of Education, on forms that it shall provide for that

 

 

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1    purpose, the value of all taxable property in each annexed
2    district, as last equalized or assessed by the Department
3    of Revenue prior to the annexation, and the equalized
4    assessed value of each part of the annexed district that
5    was annexed to or included as a part of an annexing
6    district;
7        (B) using equalized assessed values as certified by the
8    regional superintendent of schools under clause (A) of this
9    paragraph (3), the combined audited fund balance deficit of
10    each annexed district as determined under this Section
11    shall be apportioned between or among the annexing
12    districts in the same ratio as the equalized assessed value
13    of that part of the annexed district that was annexed to or
14    included as a part of an annexing district bears to the
15    total equalized assessed value of the annexed district; and
16        (C) the aggregate supplementary State aid payment
17    under this paragraph (3) shall be allocated between or
18    among, and shall be paid to, the annexing districts in the
19    same ratio as the sum of the combined audited fund balance
20    deficit of each annexing district as constituted prior to
21    the annexation, plus all combined audited fund balance
22    deficit amounts apportioned to that annexing district
23    under clause (B) of this subsection, bears to the aggregate
24    of the combined audited fund balance deficits of all of the
25    annexing and annexed districts as constituted prior to the
26    annexation.

 

 

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1    (4) For the new elementary districts and new high school
2district formed through a school district conversion, as
3defined in Section 11E-15 of this Code or the new elementary
4district or districts and new combined high school - unit
5district formed through a multi-unit conversion, as defined in
6subsection (b) of Section 11E-30 of this Code, a computation
7shall be made totaling each previously existing district's
8audited fund balances in the educational fund, working cash
9fund, operations and maintenance fund, and transportation fund
10for the year ending June 30 prior to the referendum
11establishing the new districts. In the first year of the new
12districts, the State shall make a one-time supplementary
13payment equal to the sum of the differences between the deficit
14of the previously existing district with the smallest deficit
15and the deficits of each of the other previously existing
16districts. A district with a combined balance among the 4 funds
17that is positive shall be considered to have a deficit of zero.
18The supplementary payment shall be allocated among the newly
19formed high school and elementary districts in the manner
20provided by the petition for the formation of the districts, in
21the form in which the petition is approved by the regional
22superintendent of schools or State Superintendent of Education
23under Section 11E-50 of this Code.
24    (5) For each newly created partial elementary unit
25district, as defined in subsection (a) or (c) of Section 11E-30
26of this Code, a computation shall be made totaling the audited

 

 

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1fund balances of each previously existing district that formed
2the new partial elementary unit district in the educational
3fund, working cash fund, operations and maintenance fund, and
4transportation fund for the year ending June 30 prior to the
5referendum for the formation of the partial elementary unit
6district. In the first year of the new partial elementary unit
7district, the State shall make a one-time supplementary payment
8to the new district equal to the sum of the differences between
9the deficit of the previously existing district with the
10smallest deficit and the deficits of each of the other
11previously existing districts. A district with a combined
12balance among the 4 funds that is positive shall be considered
13to have a deficit of zero.
14    (6) For an elementary opt-in as defined in subsection (d)
15of Section 11E-30 of this Code, the deficit fund balance
16incentive shall be computed in accordance with paragraph (5) of
17this subsection (c) as if the opted-in elementary was included
18in the optional elementary unit district at the optional
19elementary unit district's original effective date. If the
20calculation in this paragraph (6) is less than that calculated
21in paragraph (5) of this subsection (c) at the optional
22elementary unit district's original effective date, then no
23adjustments may be made. If the calculation in this paragraph
24(6) is more than that calculated in paragraph (5) of this
25subsection (c) at the optional elementary unit district's
26original effective date, then the excess must be paid as

 

 

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1follows:
2        (A) If the effective date for the elementary opt-in is
3    one year after the effective date for the optional
4    elementary unit district, 100% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    the first year after the effective date of the elementary
7    opt-in.
8        (B) If the effective date for the elementary opt-in is
9    2 years after the effective date for the optional
10    elementary unit district, 75% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    the first year after the effective date of the elementary
13    opt-in.
14        (C) If the effective date for the elementary opt-in is
15    3 years after the effective date for the optional
16    elementary unit district, 50% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    the first year after the effective date of the elementary
19    opt-in.
20        (D) If the effective date for the elementary opt-in is
21    4 years after the effective date for the optional
22    elementary unit district, 25% of the calculated excess
23    shall be paid to the optional elementary unit district in
24    the first year after the effective date of the elementary
25    opt-in.
26        (E) If the effective date for the elementary opt-in is

 

 

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1    5 years after the effective date for the optional
2    elementary unit district, the optional elementary unit
3    district is not eligible for any additional incentives due
4    to the elementary opt-in.
5    (6.5) For the first year after the annexation of territory
6detached from another school district whereby the enrollment of
7the annexing district increases by 90% or more as a result of
8the annexation, a computation shall be made totaling the
9audited fund balances of the district gaining territory and the
10audited fund balances of the district losing territory in the
11educational fund, working cash fund, operations and
12maintenance fund, and transportation fund for the year ending
13June 30 prior to the date that the change of boundaries
14attributable to the annexation is allowed by the affirmative
15decision of the regional board of school trustees under Section
167-6 of this Code, notwithstanding any action for administrative
17review of the decision. The annexing district as constituted
18after the annexation shall be paid supplementary State aid
19equal to the difference between the deficit of whichever
20district included in this calculation as constituted prior to
21the annexation had the smallest deficit and the deficit of each
22other district included in this calculation as constituted
23prior to the annexation, multiplied by the ratio of equalized
24assessed value of the territory detached to the total equalized
25assessed value of the district losing territory. The regional
26superintendent of schools for the educational service region in

 

 

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1which a district losing territory is located prior to the
2annexation shall certify to the State Board of Education the
3value of all taxable property in the district losing territory
4and the value of all taxable property in the territory being
5detached, as last equalized or assessed by the Department of
6Revenue prior to the annexation. To be eligible for
7supplementary State aid reimbursement under this Section, the
8intergovernmental agreement to be submitted pursuant to
9Section 7-14A of this Code must show that fund balances were
10transferred from the district losing territory to the district
11gaining territory in the annexation. The changes to this
12Section made by Public Act 95-707 are intended to be
13retroactive and applicable to any annexation taking effect on
14or after July 1, 2004. For annexations that are eligible for
15payments under this paragraph (6.5) and that are effective on
16or after July 1, 2004, but before January 11, 2008 (the
17effective date of Public Act 95-707), the required payment
18under this paragraph (6.5) shall be paid in the fiscal year of
19January 11, 2008 (the effective date of Public Act 95-707).
20    (7) For purposes of any calculation required under
21paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
22subsection (c), a district with a combined fund balance that is
23positive shall be considered to have a deficit of zero. For
24purposes of determining each district's audited fund balances
25in its educational fund, working cash fund, operations and
26maintenance fund, and transportation fund for the specified

 

 

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1year ending June 30, as provided in paragraphs (1), (2), (3),
2(4), (5), (6), and (6.5) of this subsection (c), the balance of
3each fund shall be deemed decreased by an amount equal to the
4amount of the annual property tax theretofore levied in the
5fund by the district for collection and payment to the district
6during the calendar year in which the June 30 fell, but only to
7the extent that the tax so levied in the fund actually was
8received by the district on or before or comprised a part of
9the fund on such June 30. For purposes of determining each
10district's audited fund balances, a calculation shall be made
11for each fund to determine the average for the 3 years prior to
12the specified year ending June 30, as provided in paragraphs
13(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
14of the district's expenditures in the categories "purchased
15services", "supplies and materials", and "capital outlay", as
16those categories are defined in rules of the State Board of
17Education. If this 3-year average is less than the district's
18expenditures in these categories for the specified year ending
19June 30, as provided in paragraphs (1), (2), (3), (4), (5),
20(6), and (6.5) of this subsection (c), then the 3-year average
21shall be used in calculating the amounts payable under this
22Section in place of the amounts shown in these categories for
23the specified year ending June 30, as provided in paragraphs
24(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
25Any deficit because of State aid not yet received may not be
26considered in determining the June 30 deficits. The same basis

 

 

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1of accounting shall be used by all previously existing
2districts and by all annexing or annexed districts, as
3constituted prior to the annexation, in making any computation
4required under paragraphs (1), (2), (3), (4), (5), (6), and
5(6.5) of this subsection (c).
6    (8) The supplementary State aid payments under this
7subsection (c) shall be treated as separate from all other
8payments made pursuant to Section 18-8.05 of this Code.
9    (d)(1) Following the formation of a combined school
10district, as defined in Section 11E-20 of this Code, a new unit
11district, as defined in Section 11E-25 of this Code, a new
12elementary district or districts and a new high school district
13formed through a school district conversion, as defined in
14Section 11E-15 of this Code, a new partial elementary unit
15district, as defined in Section 11E-30 of this Code, or a new
16elementary district or districts formed through a multi-unit
17conversion, as defined in subsection (b) of Section 11E-30 of
18this Code, or the annexation of all of the territory of one or
19more entire school districts by one or more other school
20districts, as defined in Article 7 of this Code, a
21supplementary State aid reimbursement shall be paid for the
22number of school years determined under the following table to
23each new or annexing district equal to the sum of $4,000 for
24each certified employee who is employed by the district on a
25full-time basis for the regular term of the school year:
 

 

 

 

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1Reorganized District's RankReorganized District's Rank
2by type of district (unit,in Average Daily Attendance
3high school, elementary)By Quintile
4in Equalized Assessed Value
5Per Pupil by Quintile
63rd, 4th,
71st2ndor 5th
8QuintileQuintileQuintile
9    1st Quintile1 year1 year1 year
10    2nd Quintile1 year2 years2 years
11    3rd Quintile2 years3 years3 years
12    4th Quintile2 years3 years3 years
13    5th Quintile2 years3 years3 years
14The State Board of Education shall make a one-time calculation
15of a reorganized district's quintile ranks. The average daily
16attendance used in this calculation shall be the best 3 months'
17average daily attendance for the district's first year. The
18equalized assessed value per pupil shall be the district's real
19property equalized assessed value used in calculating the
20district's first-year general State aid claim, under Section
2118-8.05 of this Code, or first-year primary State aid claim,
22under Section 18-8.15 of this Code, as applicable, divided by
23the best 3 months' average daily attendance.
24    No annexing or resulting school district shall be entitled
25to supplementary State aid under this subsection (d) unless the

 

 

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1district acquires at least 30% of the average daily attendance
2of the district from which the territory is being detached or
3divided.
4    If a district results from multiple reorganizations that
5would otherwise qualify the district for multiple payments
6under this subsection (d) in any year, then the district shall
7receive a single payment only for that year based solely on the
8most recent reorganization.
9    (2) For an elementary opt-in, as defined in subsection (d)
10of Section 11E-30 of this Code, the full-time certified staff
11incentive shall be computed in accordance with paragraph (1) of
12this subsection (d), equal to the sum of $4,000 for each
13certified employee of the elementary district that opts-in who
14is employed by the optional elementary unit district on a
15full-time basis for the regular term of the school year. The
16calculation from this paragraph (2) must be paid as follows:
17        (A) If the effective date for the elementary opt-in is
18    one year after the effective date for the optional
19    elementary unit district, 100% of the amount calculated in
20    this paragraph (2) shall be paid to the optional elementary
21    unit district for the number of years calculated in
22    paragraph (1) of this subsection (d) at the optional
23    elementary unit district's original effective date,
24    starting in the second year after the effective date of the
25    elementary opt-in.
26        (B) If the effective date for the elementary opt-in is

 

 

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1    2 years after the effective date for the optional
2    elementary unit district, 75% of the amount calculated in
3    this paragraph (2) shall be paid to the optional elementary
4    unit district for the number of years calculated in
5    paragraph (1) of this subsection (d) at the optional
6    elementary unit district's original effective date,
7    starting in the second year after the effective date of the
8    elementary opt-in.
9        (C) If the effective date for the elementary opt-in is
10    3 years after the effective date for the optional
11    elementary unit district, 50% of the amount calculated in
12    this paragraph (2) shall be paid to the optional elementary
13    unit district for the number of years calculated in
14    paragraph (1) of this subsection (d) at the optional
15    elementary unit district's original effective date,
16    starting in the second year after the effective date of the
17    elementary opt-in.
18        (D) If the effective date for the elementary opt-in is
19    4 years after the effective date for the optional
20    elementary unit district, 25% of the amount calculated in
21    this paragraph (2) shall be paid to the optional elementary
22    unit district for the number of years calculated in
23    paragraph (1) of this subsection (d) at the optional
24    elementary unit district's original effective date,
25    starting in the second year after the effective date of the
26    elementary opt-in.

 

 

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1        (E) If the effective date for the elementary opt-in is
2    5 years after the effective date for the optional
3    elementary unit district, the optional elementary unit
4    district is not eligible for any additional incentives due
5    to the elementary opt-in.
6    (2.5) Following the formation of a cooperative high school
7by 2 or more school districts under Section 10-22.22c of this
8Code, a supplementary State aid reimbursement shall be paid for
93 school years to the cooperative high school equal to the sum
10of $4,000 for each certified employee who is employed by the
11cooperative high school on a full-time basis for the regular
12term of any such school year. If a cooperative high school
13results from multiple agreements that would otherwise qualify
14the cooperative high school for multiple payments under this
15Section in any year, the cooperative high school shall receive
16a single payment for that year based solely on the most recent
17agreement.
18    (2.10) Following the annexation of territory detached from
19another school district whereby the enrollment of the annexing
20district increases 90% or more as a result of the annexation, a
21supplementary State aid reimbursement shall be paid to the
22annexing district equal to the sum of $4,000 for each certified
23employee who is employed by the annexing district on a
24full-time basis and shall be calculated in accordance with
25subsection (a) of this Section. To be eligible for
26supplementary State aid reimbursement under this Section, the

 

 

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1intergovernmental agreement to be submitted pursuant to
2Section 7-14A of this Code must show that certified staff
3members were transferred from the control of the district
4losing territory to the control of the district gaining
5territory in the annexation. The changes to this Section made
6by Public Act 95-707 are intended to be retroactive and
7applicable to any annexation taking effect on or after July 1,
82004. For annexations that are eligible for payments under this
9paragraph (2.10) and that are effective on or after July 1,
102004, but before January 11, 2008 (the effective date of Public
11Act 95-707), the first required yearly payment under this
12paragraph (2.10) shall be paid in the second fiscal year after
13January 11, 2008 (the effective date of Public Act 95-707). Any
14subsequent required yearly payments shall be paid in subsequent
15fiscal years until the payment obligation under this paragraph
16(2.10) is complete.
17    (2.15) Following the deactivation of a school facility in
18accordance with Section 10-22.22b of this Code, a supplementary
19State aid reimbursement shall be paid for the lesser of 3
20school years or the length of the deactivation agreement,
21including any renewals of the original deactivation agreement,
22to each receiving school district equal to the sum of $4,000
23for each certified employee who is employed by that receiving
24district on a full-time basis for the regular term of any such
25school year who was originally transferred to the control of
26that receiving district as a result of the deactivation.

 

 

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1Receiving districts are eligible for payments under this
2paragraph (2.15) based on the certified employees transferred
3to that receiving district as a result of the deactivation and
4are not required to receive at least 30% of the deactivating
5district's average daily attendance as required under
6paragraph (1) of this subsection (d) to be eligible for
7payments.
8    (3) The supplementary State aid reimbursement payable
9under this subsection (d) shall be separate from and in
10addition to all other payments made to the district pursuant to
11any other Section of this Article.
12    (4) During May of each school year for which a
13supplementary State aid reimbursement is to be paid to a new,
14annexing, or receiving school district or cooperative high
15school pursuant to this subsection (d), the school board or
16governing board shall certify to the State Board of Education,
17on forms furnished to the school board or governing board by
18the State Board of Education for purposes of this subsection
19(d), the number of certified employees for which the district
20or cooperative high school is entitled to reimbursement under
21this Section, together with the names, certificate numbers, and
22positions held by the certified employees.
23    (5) Upon certification by the State Board of Education to
24the State Comptroller of the amount of the supplementary State
25aid reimbursement to which a school district or cooperative
26high school is entitled under this subsection (d), the State

 

 

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1Comptroller shall draw his or her warrant upon the State
2Treasurer for the payment thereof to the school district or
3cooperative high school and shall promptly transmit the payment
4to the school district or cooperative high school through the
5appropriate school treasurer.
6(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
795-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
8    (105 ILCS 5/13A-8)
9    Sec. 13A-8. Funding.
10    (a) The State of Illinois shall provide funding for the
11alternative school programs within each educational service
12region and within the Chicago public school system by line item
13appropriation made to the State Board of Education for that
14purpose. This money, when appropriated, shall be provided to
15the regional superintendent and to the Chicago Board of
16Education, who shall establish a budget, including salaries,
17for their alternative school programs. Each program shall
18receive funding in the amount of $30,000 plus an amount based
19on the ratio of the region's or Chicago's best 3 months'
20average daily attendance in grades pre-kindergarten through 12
21to the statewide totals of these amounts. For purposes of this
22calculation, the best 3 months' average daily attendance for
23each region or Chicago shall be calculated by adding to the
24best 3 months' average daily attendance the number of
25low-income students identified in the most recently available

 

 

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1federal census multiplied by one-half times the percentage of
2the region's or Chicago's low-income students to the State's
3total low-income students. The State Board of Education shall
4retain up to 1.1% of the appropriation to be used to provide
5technical assistance, professional development, and
6evaluations for the programs.
7    (a-5) Notwithstanding any other provisions of this
8Section, for the 1998-1999 fiscal year, the total amount
9distributed under subsection (a) for an alternative school
10program shall be not less than the total amount that was
11distributed under that subsection for that alternative school
12program for the 1997-1998 fiscal year. If an alternative school
13program is to receive a total distribution under subsection (a)
14for the 1998-1999 fiscal year that is less than the total
15distribution that the program received under that subsection
16for the 1997-1998 fiscal year, that alternative school program
17shall also receive, from a separate appropriation made for
18purposes of this subsection (a-5), a supplementary payment
19equal to the amount by which its total distribution under
20subsection (a) for the 1997-1998 fiscal year exceeds the amount
21of the total distribution that the alternative school program
22receives under that subsection for the 1998-1999 fiscal year.
23If the amount appropriated for supplementary payments to
24alternative school programs under this subsection (a-5) is
25insufficient for that purpose, those supplementary payments
26shall be prorated among the alternative school programs

 

 

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1entitled to receive those supplementary payments according to
2the aggregate amount of the appropriation made for purposes of
3this subsection (a-5).
4    (b) An alternative school program shall be entitled to
5receive general State aid as calculated in subsection (K) of
6Section 18-8.05 or primary State aid as calculated in
7subsection (i) of Section 18-8.15 upon filing a claim as
8provided therein. Any time that a student who is enrolled in an
9alternative school program spends in work-based learning,
10community service, or a similar alternative educational
11setting shall be included in determining the student's minimum
12number of clock hours of daily school work that constitute a
13day of attendance for purposes of calculating general State aid
14or primary State aid.
15    (c) An alternative school program may receive additional
16funding from its school districts in such amount as may be
17agreed upon by the parties and necessary to support the
18program. In addition, an alternative school program is
19authorized to accept and expend gifts, legacies, and grants,
20including but not limited to federal grants, from any source
21for purposes directly related to the conduct and operation of
22the program.
23(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
2489-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
2590-802, eff. 12-15-98.)
 

 

 

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1    (105 ILCS 5/13B-20.20)
2    Sec. 13B-20.20. Enrollment in other programs. General
3Educational Development preparation programs are not eligible
4for funding under this Article. A student may enroll in a
5program approved under Section 18-8.05 or 18-8.15 of this Code,
6as appropriate, or attend both the alternative learning
7opportunities program and the regular school program to enhance
8student performance and facilitate on-time graduation.
9(Source: P.A. 92-42, eff. 1-1-02.)
 
10    (105 ILCS 5/13B-45)
11    Sec. 13B-45. Days and hours of attendance. An alternative
12learning opportunities program shall provide students with at
13least the minimum number of days of pupil attendance required
14under Section 10-19 of this Code and the minimum number of
15daily hours of school work required under Section 18-8.05 or
1618-8.15 of this Code, provided that the State Board may approve
17exceptions to these requirements if the program meets all of
18the following conditions:
19        (1) The district plan submitted under Section
20    13B-25.15 of this Code establishes that a program providing
21    the required minimum number of days of attendance or daily
22    hours of school work would not serve the needs of the
23    program's students.
24        (2) Each day of attendance shall provide no fewer than
25    3 clock hours of school work, as defined under paragraph

 

 

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1    (1) of subsection (F) of Section 18-8.05 or subsection (f)
2    of Section 18-8.15 of this Code.
3        (3) Each day of attendance that provides fewer than 5
4    clock hours of school work shall also provide supplementary
5    services, including without limitation work-based
6    learning, student assistance programs, counseling, case
7    management, health and fitness programs, or life-skills or
8    conflict resolution training, in order to provide a total
9    daily program to the student of 5 clock hours. A program
10    may claim general State aid or primary State aid for up to
11    2 hours of the time each day that a student is receiving
12    supplementary services.
13        (4) Each program shall provide no fewer than 174 days
14    of actual pupil attendance during the school term; however,
15    approved evening programs that meet the requirements of
16    Section 13B-45 of this Code may offer less than 174 days of
17    actual pupil attendance during the school term.
18(Source: P.A. 92-42, eff. 1-1-02.)
 
19    (105 ILCS 5/13B-50)
20    Sec. 13B-50. Eligibility to receive general State aid or
21primary State aid. In order to receive general State aid or
22primary State aid, alternative learning opportunities programs
23must meet the requirements for claiming general State aid as
24specified in Section 18-8.05 of this Code or primary State aid
25as specified in Section 18-8.15 of this Code, as applicable,

 

 

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1with the exception of the length of the instructional day,
2which may be less than 5 hours of school work if the program
3meets the criteria set forth under Sections 13B-50.5 and
413B-50.10 of this Code and if the program is approved by the
5State Board.
6(Source: P.A. 92-42, eff. 1-1-02.)
 
7    (105 ILCS 5/13B-50.10)
8    Sec. 13B-50.10. Additional criteria for general State aid
9or primary State aid. In order to claim general State aid or
10primary State aid, an alternative learning opportunities
11program must meet the following criteria:
12    (1) Teacher professional development plans should include
13education in the instruction of at-risk students.
14    (2) Facilities must meet the health, life, and safety
15requirements in this Code.
16    (3) The program must comply with all other State and
17federal laws applicable to education providers.
18(Source: P.A. 92-42, eff. 1-1-02.)
 
19    (105 ILCS 5/13B-50.15)
20    Sec. 13B-50.15. Level of funding. Approved alternative
21learning opportunities programs are entitled to claim general
22State aid or primary State aid, subject to Sections 13B-50,
2313B-50.5, and 13B-50.10 of this Code. Approved programs
24operated by regional offices of education are entitled to

 

 

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1receive general State aid or primary State aid at the
2foundation level of support. A school district or consortium
3must ensure that an approved program receives supplemental
4general State aid, transportation reimbursements, and special
5education resources, if appropriate, for students enrolled in
6the program.
7(Source: P.A. 92-42, eff. 1-1-02.)
 
8    (105 ILCS 5/14-7.02b)
9    Sec. 14-7.02b. Funding for children requiring special
10education services. Payments to school districts for children
11requiring special education services documented in their
12individualized education program regardless of the program
13from which these services are received, excluding children
14claimed under Sections 14-7.02 and 14-7.03 of this Code, shall
15be made in accordance with this Section. Funds received under
16this Section may be used only for the provision of special
17educational facilities and services as defined in Section
1814-1.08 of this Code.
19    The appropriation for fiscal year 2005 through fiscal year
202014 and thereafter shall be based upon the IDEA child count of
21all students in the State, excluding students claimed under
22Sections 14-7.02 and 14-7.03 of this Code, on December 1 of the
23fiscal year 2 years preceding, multiplied by 17.5% of the
24general State aid foundation level of support established for
25that fiscal year under Section 18-8.05 of this Code.

 

 

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1    Beginning with fiscal year 2005 and through fiscal year
22007, individual school districts shall not receive payments
3under this Section totaling less than they received under the
4funding authorized under Section 14-7.02a of this Code during
5fiscal year 2004, pursuant to the provisions of Section
614-7.02a as they were in effect before the effective date of
7this amendatory Act of the 93rd General Assembly. This base
8level funding shall be computed first.
9    Beginning with fiscal year 2008 through fiscal year 2014
10and each fiscal year thereafter, individual school districts
11must not receive payments under this Section totaling less than
12they received in fiscal year 2007. This funding shall be
13computed last and shall be a separate calculation from any
14other calculation set forth in this Section. This amount is
15exempt from the requirements of Section 1D-1 of this Code.
16    Through fiscal year 2014, an An amount equal to 85% of the
17funds remaining in the appropriation shall be allocated to
18school districts based upon the district's average daily
19attendance reported for purposes of Section 18-8.05 of this
20Code for the preceding school year. Fifteen percent of the
21funds remaining in the appropriation shall be allocated to
22school districts based upon the district's low income eligible
23pupil count used in the calculation of general State aid under
24Section 18-8.05 of this Code for the same fiscal year. One
25hundred percent of the funds computed and allocated to
26districts under this Section shall be distributed and paid to

 

 

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1school districts.
2    Through fiscal year 2014, for For individual students with
3disabilities whose program costs exceed 4 times the district's
4per capita tuition rate as calculated under Section 10-20.12a
5of this Code, the costs in excess of 4 times the district's per
6capita tuition rate shall be paid by the State Board of
7Education from unexpended IDEA discretionary funds originally
8designated for room and board reimbursement pursuant to Section
914-8.01 of this Code. The amount of tuition for these children
10shall be determined by the actual cost of maintaining classes
11for these children, using the per capita cost formula set forth
12in Section 14-7.01 of this Code, with the program and cost
13being pre-approved by the State Superintendent of Education.
14Reimbursement for individual students with disabilities whose
15program costs exceed 4 times the district's per capita tuition
16rate shall be claimed beginning with costs encumbered for the
172004-2005 school year through the 2013-2014 school year and
18thereafter.
19    Through fiscal year 2014, the The State Board of Education
20shall prepare vouchers equal to one-fourth the amount allocated
21to districts, for transmittal to the State Comptroller on the
2230th day of September, December, and March, respectively, and
23the final voucher, no later than June 20. Through fiscal year
242014, the The Comptroller shall make payments pursuant to this
25Section to school districts as soon as possible after receipt
26of vouchers. If the money appropriated from the General

 

 

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1Assembly for such purposes for any year is insufficient, it
2shall be apportioned on the basis of the payments due to school
3districts.
4    Nothing in this Section shall be construed to decrease or
5increase the percentage of all special education funds that are
6allocated annually under Article 1D of this Code or to alter
7the requirement that a school district provide special
8education services.
9    Nothing in this amendatory Act of the 93rd General Assembly
10shall eliminate any reimbursement obligation owed as of the
11effective date of this amendatory Act of the 93rd General
12Assembly to a school district with in excess of 500,000
13inhabitants.
14    No funding shall be provided to school districts under this
15Section after fiscal year 2014.
16(Source: P.A. 93-1022, eff. 8-24-08. 95-705, eff. 1-8-08.)
 
17    (105 ILCS 5/14-7.03)  (from Ch. 122, par. 14-7.03)
18    Sec. 14-7.03. Special Education Classes for Children from
19Orphanages, Foster Family Homes, Children's Homes, or in State
20Housing Units. If a school district maintains special education
21classes on the site of orphanages and children's homes, or if
22children from the orphanages, children's homes, foster family
23homes, other State agencies, or State residential units for
24children attend classes for children with disabilities in which
25the school district is a participating member of a joint

 

 

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1agreement, or if the children from the orphanages, children's
2homes, foster family homes, other State agencies, or State
3residential units attend classes for the children with
4disabilities maintained by the school district, then
5reimbursement shall be paid to eligible districts in accordance
6with the provisions of this Section by the Comptroller as
7directed by the State Superintendent of Education.
8    The amount of tuition for such children shall be determined
9by the actual cost of maintaining such classes, using the per
10capita cost formula set forth in Section 14-7.01, such program
11and cost to be pre-approved by the State Superintendent of
12Education.
13    On forms prepared by the State Superintendent of Education,
14the district shall certify to the regional superintendent the
15following:
16        (1) The name of the home or State residential unit with
17    the name of the owner or proprietor and address of those
18    maintaining it;
19        (2) That no service charges or other payments
20    authorized by law were collected in lieu of taxes therefrom
21    or on account thereof during either of the calendar years
22    included in the school year for which claim is being made;
23        (3) The number of children qualifying under this Act in
24    special education classes for instruction on the site of
25    the orphanages and children's homes;
26        (4) The number of children attending special education

 

 

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1    classes for children with disabilities in which the
2    district is a participating member of a special education
3    joint agreement;
4        (5) The number of children attending special education
5    classes for children with disabilities maintained by the
6    district;
7        (6) The computed amount of tuition payment claimed as
8    due, as approved by the State Superintendent of Education,
9    for maintaining these classes.
10    If a school district makes a claim for reimbursement under
11Section 18-3 or 18-4 of this Code, Act it shall not include in
12any claim filed under this Section a claim for such children.
13Payments authorized by law, including State or federal grants
14for education of children included in this Section, shall be
15deducted in determining the tuition amount.
16    Nothing in this Act shall be construed so as to prohibit
17reimbursement for the tuition of children placed in for profit
18facilities. Private facilities shall provide adequate space at
19the facility for special education classes provided by a school
20district or joint agreement for children with disabilities who
21are residents of the facility at no cost to the school district
22or joint agreement upon request of the school district or joint
23agreement. If such a private facility provides space at no cost
24to the district or joint agreement for special education
25classes provided to children with disabilities who are
26residents of the facility, the district or joint agreement

 

 

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1shall not include any costs for the use of those facilities in
2its claim for reimbursement.
3    Reimbursement for tuition may include the cost of providing
4summer school programs for children with severe and profound
5disabilities served under this Section. Claims for that
6reimbursement shall be filed by November 1 and shall be paid on
7or before December 15 from appropriations made for the purposes
8of this Section.
9    The State Board of Education shall establish such rules and
10regulations as may be necessary to implement the provisions of
11this Section.
12    Claims filed on behalf of programs operated under this
13Section housed in a jail, detention center, or county-owned
14shelter care facility shall be on an individual student basis
15only for eligible students with disabilities. These claims
16shall be in accordance with applicable rules.
17    Each district claiming reimbursement for a program
18operated as a group program shall have an approved budget on
19file with the State Board of Education prior to the initiation
20of the program's operation. On September 30, December 31, and
21March 31, the State Board of Education shall voucher payments
22to group programs based upon the approved budget during the
23year of operation. Final claims for group payments shall be
24filed on or before July 15. Final claims for group programs
25received at the State Board of Education on or before June 15
26shall be vouchered by June 30. Final claims received at the

 

 

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1State Board of Education between June 16 and July 15 shall be
2vouchered by August 30. Claims for group programs received
3after July 15 shall not be honored.
4    Each district claiming reimbursement for individual
5students shall have the eligibility of those students verified
6by the State Board of Education. On September 30, December 31,
7and March 31, the State Board of Education shall voucher
8payments for individual students based upon an estimated cost
9calculated from the prior year's claim. Final claims for
10individual students for the regular school term must be
11received at the State Board of Education by July 15. Claims for
12individual students received after July 15 shall not be
13honored. Final claims for individual students shall be
14vouchered by August 30.
15    Reimbursement shall be made based upon approved group
16programs or individual students. The State Superintendent of
17Education shall direct the Comptroller to pay a specified
18amount to the district by the 30th day of September, December,
19March, June, or August, respectively. However, notwithstanding
20any other provisions of this Section or the School Code,
21beginning with fiscal year 1994 and each fiscal year
22thereafter, if the amount appropriated for any fiscal year is
23less than the amount required for purposes of this Section, the
24amount required to eliminate any insufficient reimbursement
25for each district claim under this Section shall be reimbursed
26on August 30 of the next fiscal year. Payments required to

 

 

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1eliminate any insufficiency for prior fiscal year claims shall
2be made before any claims are paid for the current fiscal year.
3    The claim of a school district otherwise eligible to be
4reimbursed in accordance with Section 14-12.01 for the 1976-77
5school year but for this amendatory Act of 1977 shall not be
6paid unless the district ceases to maintain such classes for
7one entire school year.
8    If a school district's current reimbursement payment for
9the 1977-78 school year only is less than the prior year's
10reimbursement payment owed, the district shall be paid the
11amount of the difference between the payments in addition to
12the current reimbursement payment, and the amount so paid shall
13be subtracted from the amount of prior year's reimbursement
14payment owed to the district.
15    Regional superintendents may operate special education
16classes for children from orphanages, foster family homes,
17children's homes, or State housing units located within the
18educational services region upon consent of the school board
19otherwise so obligated. In electing to assume the powers and
20duties of a school district in providing and maintaining such a
21special education program, the regional superintendent may
22enter into joint agreements with other districts and may
23contract with public or private schools or the orphanage,
24foster family home, children's home, or State housing unit for
25provision of the special education program. The regional
26superintendent exercising the powers granted under this

 

 

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1Section shall claim the reimbursement authorized by this
2Section directly from the State Board of Education.
3    Any child who is not a resident of Illinois who is placed
4in a child welfare institution, private facility, foster family
5home, State operated program, orphanage, or children's home
6shall have the payment for his educational tuition and any
7related services assured by the placing agent.
8    For each disabled student who is placed in a residential
9facility by an Illinois public agency or by any court in this
10State, the costs for educating the student are eligible for
11reimbursement under this Section.
12    The district of residence of the disabled student as
13defined in Section 14-1.11a is responsible for the actual costs
14of the student's special education program and is eligible for
15reimbursement under this Section when placement is made by a
16State agency or the courts.
17    When a dispute arises over the determination of the
18district of residence under this Section, the district or
19districts may appeal the decision in writing to the State
20Superintendent of Education, who, upon review of materials
21submitted and any other items or information he or she may
22request for submission, shall issue a written decision on the
23matter. The decision of the State Superintendent of Education
24shall be final.
25    In the event a district does not make a tuition payment to
26another district that is providing the special education

 

 

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1program and services, the State Board of Education shall
2immediately withhold 125% of the then remaining annual tuition
3cost from the State aid or categorical aid payment due to the
4school district that is determined to be the resident school
5district. All funds withheld by the State Board of Education
6shall immediately be forwarded to the school district where the
7student is being served.
8    When a child eligible for services under this Section
914-7.03 must be placed in a nonpublic facility, that facility
10shall meet the programmatic requirements of Section 14-7.02 and
11its regulations, and the educational services shall be funded
12only in accordance with this Section 14-7.03.
13(Source: P.A. 95-313, eff. 8-20-07; 95-844, eff. 8-15-08.)
 
14    (105 ILCS 5/14-13.01)  (from Ch. 122, par. 14-13.01)
15    Sec. 14-13.01. Reimbursement payable by State; amounts for
16personnel and transportation.
17    (a) Through fiscal year 2014, for For staff working on
18behalf of children who have not been identified as eligible for
19special education and for eligible children with physical
20disabilities, including all eligible children whose placement
21has been determined under Section 14-8.02 in hospital or home
22instruction, 1/2 of the teacher's salary but not more than
23$1,000 annually per child or $9,000 per teacher, whichever is
24less.
25    (a-5) A child qualifies for home or hospital instruction if

 

 

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1it is anticipated that, due to a medical condition, the child
2will be unable to attend school, and instead must be instructed
3at home or in the hospital, for a period of 2 or more
4consecutive weeks or on an ongoing intermittent basis. For
5purposes of this Section, "ongoing intermittent basis" means
6that the child's medical condition is of such a nature or
7severity that it is anticipated that the child will be absent
8from school due to the medical condition for periods of at
9least 2 days at a time multiple times during the school year
10totaling at least 10 days or more of absences. There shall be
11no requirement that a child be absent from school a minimum
12number of days before the child qualifies for home or hospital
13instruction. In order to establish eligibility for home or
14hospital services, a student's parent or guardian must submit
15to the child's school district of residence a written statement
16from a physician licensed to practice medicine in all of its
17branches stating the existence of such medical condition, the
18impact on the child's ability to participate in education, and
19the anticipated duration or nature of the child's absence from
20school. Home or hospital instruction may commence upon receipt
21of a written physician's statement in accordance with this
22Section, but instruction shall commence not later than 5 school
23days after the school district receives the physician's
24statement. Special education and related services required by
25the child's IEP or services and accommodations required by the
26child's federal Section 504 plan must be implemented as part of

 

 

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1the child's home or hospital instruction, unless the IEP team
2or federal Section 504 plan team determines that modifications
3are necessary during the home or hospital instruction due to
4the child's condition.
5    (a-10) Through fiscal year 2014, eligible Eligible
6children to be included in any reimbursement under this
7paragraph must regularly receive a minimum of one hour of
8instruction each school day, or in lieu thereof of a minimum of
95 hours of instruction in each school week in order to qualify
10for full reimbursement under this Section. If the attending
11physician for such a child has certified that the child should
12not receive as many as 5 hours of instruction in a school week,
13however, reimbursement under this paragraph on account of that
14child shall be computed proportionate to the actual hours of
15instruction per week for that child divided by 5.
16    (a-15) The State Board of Education shall establish rules
17governing the required qualifications of staff providing home
18or hospital instruction.
19    (b) For children described in Section 14-1.02, 80% of the
20cost of transportation approved as a related service in the
21Individualized Education Program for each student in order to
22take advantage of special educational facilities.
23Transportation costs shall be determined in the same fashion as
24provided in Section 29-5 of this Code, notwithstanding any
25limitation in Section 29-5 of this Code on the fiscal years for
26which reimbursement may be claimed, provided that,

 

 

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1notwithstanding anything to the contrary contained in this
2subsection (b) or Section 29-5 of this Code, the State Board of
3Education shall award to a school district having a population
4exceeding 500,000 inhabitants 30.7% of the funds appropriated
5by the General Assembly for any fiscal year for purposes of
6payment of transportation cost claims under this subsection
7(b). For purposes of this subsection (b), the dates for
8processing claims specified in Section 29-5 shall apply.
9    (c) Through fiscal year 2014, for For each qualified
10worker, the annual sum of $9,000.
11    (d) Through fiscal year 2014, for For one full time
12qualified director of the special education program of each
13school district which maintains a fully approved program of
14special education the annual sum of $9,000. Districts
15participating in a joint agreement special education program
16shall not receive such reimbursement if reimbursement is made
17for a director of the joint agreement program.
18    (e) (Blank).
19    (f) (Blank).
20    (g) Through fiscal year 2014, for For readers, working with
21blind or partially seeing children 1/2 of their salary but not
22more than $400 annually per child. Readers may be employed to
23assist such children and shall not be required to be certified
24but prior to employment shall meet standards set up by the
25State Board of Education.
26    (h) Through fiscal year 2014, for For non-certified

 

 

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1employees, as defined by rules promulgated by the State Board
2of Education, who deliver services to students with IEPs, 1/2
3of the salary paid or $3,500 per employee, whichever is less.
4    (i) The State Board of Education shall set standards and
5prescribe rules for determining the allocation of
6reimbursement under this section on less than a full time basis
7and for less than a school year.
8    When any school district eligible for reimbursement under
9this Section operates a school or program approved by the State
10Superintendent of Education for a number of days in excess of
11the adopted school calendar but not to exceed 235 school days,
12such reimbursement shall be increased by 1/180 of the amount or
13rate paid hereunder for each day such school is operated in
14excess of 180 days per calendar year.
15    Notwithstanding any other provision of law, any school
16district receiving a payment under this Section or under
17Section 14-7.02c 14-7.02, 14-7.02b, or 29-5 of this Code may
18classify all or a portion of the funds that it receives in a
19particular fiscal year or from primary general State aid
20pursuant to Section 18-8.15 18-8.05 of this Code as funds
21received in connection with any funding program for which it is
22entitled to receive funds from the State in that fiscal year
23(including, without limitation, any funding program referenced
24in this Section), regardless of the source or timing of the
25receipt. The district may not classify more funds as funds
26received in connection with the funding program than the

 

 

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1district is entitled to receive in that fiscal year for that
2program. Any classification by a district must be made by a
3resolution of its board of education. The resolution must
4identify the amount of any payments or primary general State
5aid to be classified under this paragraph and must specify the
6funding program to which the funds are to be treated as
7received in connection therewith. This resolution is
8controlling as to the classification of funds referenced
9therein. A certified copy of the resolution must be sent to the
10State Superintendent of Education. The resolution shall still
11take effect even though a copy of the resolution has not been
12sent to the State Superintendent of Education in a timely
13manner. No classification under this paragraph by a district
14shall affect the total amount or timing of money the district
15is entitled to receive under this Code. No classification under
16this paragraph by a district shall in any way relieve the
17district from or affect any requirements that otherwise would
18apply with respect to that funding program, including any
19accounting of funds by source, reporting expenditures by
20original source and purpose, reporting requirements, or
21requirements of providing services.
22(Source: P.A. 96-257, eff. 8-11-09; 97-123, eff. 7-14-11.)
 
23    (105 ILCS 5/14C-12)  (from Ch. 122, par. 14C-12)
24    Sec. 14C-12. Account of expenditures; Cost report;
25Reimbursement. Each school district shall keep an accurate,

 

 

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1detailed and separate account of all monies paid out by it for
2the programs in transitional bilingual education required or
3permitted by this Article, including transportation costs, and
4shall annually report thereon for the school year ending June
530 indicating the average per pupil expenditure. Through fiscal
6year 2014, each Each school district shall be reimbursed for
7the amount by which such costs exceed the average per pupil
8expenditure by such school district for the education of
9children of comparable age who are not in any special education
10program. Through fiscal year 2014, at At least 60% of
11transitional bilingual education funding received from the
12State must be used for the instructional costs of transitional
13bilingual education.
14    Through fiscal year 2014, applications Applications for
15preapproval for reimbursement for costs of transitional
16bilingual education programs must be submitted to the State
17Superintendent of Education at least 60 days before a
18transitional bilingual education program is started, unless a
19justifiable exception is granted by the State Superintendent of
20Education. Applications shall set forth a plan for transitional
21bilingual education established and maintained in accordance
22with this Article.
23    Through fiscal year 2014, reimbursement Reimbursement
24claims for transitional bilingual education programs shall be
25made as follows:
26    Each school district shall claim reimbursement on a current

 

 

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1basis for the first 3 quarters of the fiscal year and file a
2final adjusted claim for the school year ended June 30
3preceding computed in accordance with rules prescribed by the
4State Superintendent's Office. The State Superintendent of
5Education before approving any such claims shall determine
6their accuracy and whether they are based upon services and
7facilities provided under approved programs. Upon approval he
8shall transmit to the Comptroller the vouchers showing the
9amounts due for school district reimbursement claims. Upon
10receipt of the final adjusted claims the State Superintendent
11of Education shall make a final determination of the accuracy
12of such claims. If the money appropriated by the General
13Assembly for such purpose for any year is insufficient, it
14shall be apportioned on the basis of the claims approved.
15    Failure on the part of the school district to prepare and
16certify the final adjusted claims due under this Section may
17constitute a forfeiture by the school district of its right to
18be reimbursed by the State under this Section.
19(Source: P.A. 96-1170, eff. 1-1-11.)
 
20    (105 ILCS 5/17-1)  (from Ch. 122, par. 17-1)
21    Sec. 17-1. Annual Budget. The board of education of each
22school district under 500,000 inhabitants shall, within or
23before the first quarter of each fiscal year, adopt and file
24with the State Board of Education an annual balanced budget
25which it deems necessary to defray all necessary expenses and

 

 

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1liabilities of the district, and in such annual budget shall
2specify the objects and purposes of each item and amount needed
3for each object or purpose.
4    The budget shall be entered upon a School District Budget
5form prepared and provided by the State Board of Education and
6therein shall contain a statement of the cash on hand at the
7beginning of the fiscal year, an estimate of the cash expected
8to be received during such fiscal year from all sources, an
9estimate of the expenditures contemplated for such fiscal year,
10and a statement of the estimated cash expected to be on hand at
11the end of such year. The estimate of taxes to be received may
12be based upon the amount of actual cash receipts that may
13reasonably be expected by the district during such fiscal year,
14estimated from the experience of the district in prior years
15and with due regard for other circumstances that may
16substantially affect such receipts. Nothing in this Section
17shall be construed as requiring any district to change or
18preventing any district from changing from a cash basis of
19financing to a surplus or deficit basis of financing; or as
20requiring any district to change or preventing any district
21from changing its system of accounting. For the 2015-2016
22school year and thereafter, the budget shall conform to the
23school level accounting requirements adopted by the State Board
24of Education pursuant to Section 2-3.28 of this Code.
25    To the extent that a school district's budget is not
26balanced, the district shall also adopt and file with the State

 

 

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1Board of Education a deficit reduction plan to balance the
2district's budget within 3 years. The deficit reduction plan
3must be filed at the same time as the budget, but the State
4Superintendent of Education may extend this deadline if the
5situation warrants.
6    If, as the result of an audit performed in compliance with
7Section 3-7 of this Code, the resulting Annual Financial Report
8required to be submitted pursuant to Section 3-15.1 of this
9Code reflects a deficit as defined for purposes of the
10preceding paragraph, then the district shall, within 30 days
11after acceptance of such audit report, submit a deficit
12reduction plan.
13    The board of education of each district shall fix a fiscal
14year therefor. If the beginning of the fiscal year of a
15district is subsequent to the time that the tax levy due to be
16made in such fiscal year shall be made, then such annual budget
17shall be adopted prior to the time such tax levy shall be made.
18The failure by a board of education of any district to adopt an
19annual budget, or to comply in any respect with the provisions
20of this Section, shall not affect the validity of any tax levy
21of the district otherwise in conformity with the law. With
22respect to taxes levied either before, on, or after the
23effective date of this amendatory Act of the 91st General
24Assembly, (i) a tax levy is made for the fiscal year in which
25the levy is due to be made regardless of which fiscal year the
26proceeds of the levy are expended or are intended to be

 

 

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1expended, and (ii) except as otherwise provided by law, a board
2of education's adoption of an annual budget in conformity with
3this Section is not a prerequisite to the adoption of a valid
4tax levy and is not a limit on the amount of the levy.
5    Such budget shall be prepared in tentative form by some
6person or persons designated by the board, and in such
7tentative form shall be made conveniently available to public
8inspection for at least 30 days prior to final action thereon.
9At least 1 public hearing shall be held as to such budget prior
10to final action thereon. Notice of availability for public
11inspection and of such public hearing shall be given by
12publication in a newspaper published in such district, at least
1330 days prior to the time of such hearing. If there is no
14newspaper published in such district, notice of such public
15hearing shall be given by posting notices thereof in 5 of the
16most public places in such district. It shall be the duty of
17the secretary of such board to make such tentative budget
18available to public inspection, and to arrange for such public
19hearing. The board may from time to time make transfers between
20the various items in any fund not exceeding in the aggregate
2110% of the total of such fund as set forth in the budget. The
22board may from time to time amend such budget by the same
23procedure as is herein provided for its original adoption.
24    Beginning July 1, 1976, the board of education, or regional
25superintendent, or governing board responsible for the
26administration of a joint agreement shall, by September 1 of

 

 

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1each fiscal year thereafter, adopt an annual budget for the
2joint agreement in the same manner and subject to the same
3requirements as are provided in this Section.
4    The State Board of Education shall exercise powers and
5duties relating to budgets as provided in Section 2-3.27 of
6this Code and shall require school districts to submit their
7annual budgets, deficit reduction plans, and other financial
8information, including revenue and expenditure reports and
9borrowing and interfund transfer plans, in such form and within
10the timelines designated by the State Board of Education.
11    By fiscal year 1982 all school districts shall use the
12Program Budget Accounting System.
13    In the case of a school district receiving emergency State
14financial assistance under Article 1B, the school board shall
15also be subject to the requirements established under Article
161B with respect to the annual budget.
17(Source: P.A. 97-429, eff. 8-16-11.)
 
18    (105 ILCS 5/17-1.2)
19    Sec. 17-1.2. Post annual budget on web site. If a school
20district has an Internet web site, the school district shall
21post its current annual budget, itemized by receipts and
22expenditures, on the district's Internet web site. For the
232015-2016 school year and thereafter, the budget shall include
24school level information conforming to the rules adopted by the
25State Board of Education pursuant to Section 2-3.28 of this

 

 

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1Code. The school district shall notify the parents or guardians
2of its students that the budget has been posted on the
3district's web site and what the web site's address is.
4(Source: P.A. 92-438, eff. 1-1-02.)
 
5    (105 ILCS 5/17-1.5)
6    Sec. 17-1.5. Limitation of administrative costs.
7    (a) It is the purpose of this Section to establish
8limitations on the growth of administrative expenditures in
9order to maximize the proportion of school district resources
10available for the instructional program, building maintenance,
11and safety services for the students of each district.
12    (b) Definitions. For the purposes of this Section:
13    "Administrative expenditures" mean the annual expenditures
14of school districts properly attributable to expenditure
15functions defined by the rules of the State Board of Education
16as: 2320 (Executive Administration Services); 2330 (Special
17Area Administration Services); 2490 (Other Support Services -
18School Administration); 2510 (Direction of Business Support
19Services); 2570 (Internal Services); and 2610 (Direction of
20Central Support Services); provided, however, that
21"administrative expenditures" shall not include early
22retirement or other pension system obligations required by
23State law.
24    "School district" means all school districts having a
25population of less than 500,000.

 

 

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1    (c) For the 1998-99 school year and each school year
2thereafter, each school district shall undertake budgetary and
3expenditure control actions so that the increase in
4administrative expenditures for that school year over the prior
5school year does not exceed 5%. School districts with
6administrative expenditures per pupil in the 25th percentile
7and below for all districts of the same type, as defined by the
8State Board of Education, may waive the limitation imposed
9under this Section for any year following a public hearing and
10with the affirmative vote of at least two-thirds of the members
11of the school board of the district. Any district waiving the
12limitation shall notify the State Board within 45 days of such
13action.
14    (d) School districts shall file with the State Board of
15Education by November 15, 1998 and by each November 15th
16thereafter a one-page report that lists (i) the actual
17administrative expenditures for the prior year from the
18district's audited Annual Financial Report, and (ii) the
19projected administrative expenditures for the current year
20from the budget adopted by the school board pursuant to Section
2117-1 of this Code.
22    If a school district that is ineligible to waive the
23limitation imposed by subsection (c) of this Section by board
24action exceeds the limitation solely because of circumstances
25beyond the control of the district and the district has
26exhausted all available and reasonable remedies to comply with

 

 

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1the limitation, the district may request a waiver pursuant to
2Section 2-3.25g. The waiver application shall specify the
3amount, nature, and reason for the relief requested, as well as
4all remedies the district has exhausted to comply with the
5limitation. Any emergency relief so requested shall apply only
6to the specific school year for which the request is made. The
7State Board of Education shall analyze all such waivers
8submitted and shall recommend that the General Assembly
9disapprove any such waiver requested that is not due solely to
10circumstances beyond the control of the district and for which
11the district has not exhausted all available and reasonable
12remedies to comply with the limitation. The State
13Superintendent shall have no authority to impose any sanctions
14pursuant to this Section for any expenditures for which a
15waiver has been requested until such waiver has been reviewed
16by the General Assembly.
17    If the report and information required under this
18subsection (d) are not provided by the school district in a
19timely manner, or are subsequently determined by the State
20Superintendent of Education to be incomplete or inaccurate, the
21State Superintendent shall notify the district in writing of
22reporting deficiencies. The school district shall, within 60
23days of the notice, address the reporting deficiencies
24identified.
25    (e) If the State Superintendent determines that a school
26district has failed to comply with the administrative

 

 

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1expenditure limitation imposed in subsection (c) of this
2Section, the State Superintendent shall notify the district of
3the violation and direct the district to undertake corrective
4action to bring the district's budget into compliance with the
5administrative expenditure limitation. The district shall,
6within 60 days of the notice, provide adequate assurance to the
7State Superintendent that appropriate corrective actions have
8been or will be taken. If the district fails to provide
9adequate assurance or fails to undertake the necessary
10corrective actions, the State Superintendent may impose
11progressive sanctions against the district that may culminate
12in withholding all subsequent payments of general State aid due
13the district under Section 18-8.05 of this Code or primary
14State aid due the district under Section 18-8.15 of this Code
15until the assurance is provided or the corrective actions
16taken.
17    (f) The State Superintendent shall publish a list each year
18of the school districts that violate the limitation imposed by
19subsection (c) of this Section and a list of the districts that
20waive the limitation by board action as provided in subsection
21(c) of this Section.
22(Source: P.A. 90-548, eff. 1-1-98; 90-653, eff. 7-29-98.)
 
23    (105 ILCS 5/17-2.11)  (from Ch. 122, par. 17-2.11)
24    Sec. 17-2.11. School board power to levy a tax or to borrow
25money and issue bonds for fire prevention, safety, energy

 

 

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1conservation, disabled accessibility, school security, and
2specified repair purposes.
3    (a) Whenever, as a result of any lawful order of any
4agency, other than a school board, having authority to enforce
5any school building code applicable to any facility that houses
6students, or any law or regulation for the protection and
7safety of the environment, pursuant to the Environmental
8Protection Act, any school district having a population of less
9than 500,000 inhabitants is required to alter or reconstruct
10any school building or permanent, fixed equipment; the district
11may, by proper resolution, levy a tax for the purpose of making
12such alteration or reconstruction, based on a survey report by
13an architect or engineer licensed in this State, upon all of
14the taxable property of the district at the value as assessed
15by the Department of Revenue and at a rate not to exceed 0.05%
16per year for a period sufficient to finance such alteration or
17reconstruction, upon the following conditions:
18        (1) When there are not sufficient funds available in
19    the operations and maintenance fund of the school district,
20    the school facility occupation tax fund of the district, or
21    the fire prevention and safety fund of the district, as
22    determined by the district on the basis of rules adopted by
23    the State Board of Education, to make such alteration or
24    reconstruction or to purchase and install such permanent,
25    fixed equipment so ordered or determined as necessary.
26    Appropriate school district records must be made available

 

 

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1    to the State Superintendent of Education, upon request, to
2    confirm this insufficiency.
3        (2) When a certified estimate of an architect or
4    engineer licensed in this State stating the estimated
5    amount necessary to make the alteration or reconstruction
6    or to purchase and install the equipment so ordered has
7    been secured by the school district, and the estimate has
8    been approved by the regional superintendent of schools
9    having jurisdiction over the district and the State
10    Superintendent of Education. Approval must not be granted
11    for any work that has already started without the prior
12    express authorization of the State Superintendent of
13    Education. If the estimate is not approved or is denied
14    approval by the regional superintendent of schools within 3
15    months after the date on which it is submitted to him or
16    her, the school board of the district may submit the
17    estimate directly to the State Superintendent of Education
18    for approval or denial.
19    In the case of an emergency situation, where the estimated
20cost to effectuate emergency repairs is less than the amount
21specified in Section 10-20.21 of this Code, the school district
22may proceed with such repairs prior to approval by the State
23Superintendent of Education, but shall comply with the
24provisions of subdivision (2) of this subsection (a) as soon
25thereafter as may be as well as Section 10-20.21 of this Code.
26If the estimated cost to effectuate emergency repairs is

 

 

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1greater than the amount specified in Section 10-20.21 of this
2Code, then the school district shall proceed in conformity with
3Section 10-20.21 of this Code and with rules established by the
4State Board of Education to address such situations. The rules
5adopted by the State Board of Education to deal with these
6situations shall stipulate that emergency situations must be
7expedited and given priority consideration. For purposes of
8this paragraph, an emergency is a situation that presents an
9imminent and continuing threat to the health and safety of
10students or other occupants of a facility, requires complete or
11partial evacuation of a building or part of a building, or
12consumes one or more of the 5 emergency days built into the
13adopted calendar of the school or schools or would otherwise be
14expected to cause such school or schools to fall short of the
15minimum school calendar requirements.
16    (b) Whenever any such district determines that it is
17necessary for energy conservation purposes that any school
18building or permanent, fixed equipment should be altered or
19reconstructed and that such alterations or reconstruction will
20be made with funds not necessary for the completion of approved
21and recommended projects contained in any safety survey report
22or amendments thereto authorized by Section 2-3.12 of this Act;
23the district may levy a tax or issue bonds as provided in
24subsection (a) of this Section.
25    (c) Whenever any such district determines that it is
26necessary for disabled accessibility purposes and to comply

 

 

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1with the school building code that any school building or
2equipment should be altered or reconstructed and that such
3alterations or reconstruction will be made with funds not
4necessary for the completion of approved and recommended
5projects contained in any safety survey report or amendments
6thereto authorized under Section 2-3.12 of this Act, the
7district may levy a tax or issue bonds as provided in
8subsection (a) of this Section.
9    (d) Whenever any such district determines that it is
10necessary for school security purposes and the related
11protection and safety of pupils and school personnel that any
12school building or property should be altered or reconstructed
13or that security systems and equipment (including but not
14limited to intercom, early detection and warning, access
15control and television monitoring systems) should be purchased
16and installed, and that such alterations, reconstruction or
17purchase and installation of equipment will be made with funds
18not necessary for the completion of approved and recommended
19projects contained in any safety survey report or amendment
20thereto authorized by Section 2-3.12 of this Act and will deter
21and prevent unauthorized entry or activities upon school
22property by unknown or dangerous persons, assure early
23detection and advance warning of any such actual or attempted
24unauthorized entry or activities and help assure the continued
25safety of pupils and school staff if any such unauthorized
26entry or activity is attempted or occurs; the district may levy

 

 

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1a tax or issue bonds as provided in subsection (a) of this
2Section.
3    (e) If a school district does not need funds for other fire
4prevention and safety projects, including the completion of
5approved and recommended projects contained in any safety
6survey report or amendments thereto authorized by Section
72-3.12 of this Act, and it is determined after a public hearing
8(which is preceded by at least one published notice (i)
9occurring at least 7 days prior to the hearing in a newspaper
10of general circulation within the school district and (ii)
11setting forth the time, date, place, and general subject matter
12of the hearing) that there is a substantial, immediate, and
13otherwise unavoidable threat to the health, safety, or welfare
14of pupils due to disrepair of school sidewalks, playgrounds,
15parking lots, or school bus turnarounds and repairs must be
16made; then the district may levy a tax or issue bonds as
17provided in subsection (a) of this Section.
18    (f) For purposes of this Section a school district may
19replace a school building or build additions to replace
20portions of a building when it is determined that the
21effectuation of the recommendations for the existing building
22will cost more than the replacement costs. Such determination
23shall be based on a comparison of estimated costs made by an
24architect or engineer licensed in the State of Illinois. The
25new building or addition shall be equivalent in area (square
26feet) and comparable in purpose and grades served and may be on

 

 

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1the same site or another site. Such replacement may only be
2done upon order of the regional superintendent of schools and
3the approval of the State Superintendent of Education.
4    (g) The filing of a certified copy of the resolution
5levying the tax when accompanied by the certificates of the
6regional superintendent of schools and State Superintendent of
7Education shall be the authority of the county clerk to extend
8such tax.
9    (h) The county clerk of the county in which any school
10district levying a tax under the authority of this Section is
11located, in reducing raised levies, shall not consider any such
12tax as a part of the general levy for school purposes and shall
13not include the same in the limitation of any other tax rate
14which may be extended.
15    Such tax shall be levied and collected in like manner as
16all other taxes of school districts, subject to the provisions
17contained in this Section.
18    (i) The tax rate limit specified in this Section may be
19increased to .10% upon the approval of a proposition to effect
20such increase by a majority of the electors voting on that
21proposition at a regular scheduled election. Such proposition
22may be initiated by resolution of the school board and shall be
23certified by the secretary to the proper election authorities
24for submission in accordance with the general election law.
25    (j) When taxes are levied by any school district for fire
26prevention, safety, energy conservation, and school security

 

 

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1purposes as specified in this Section, and the purposes for
2which the taxes have been levied are accomplished and paid in
3full, and there remain funds on hand in the Fire Prevention and
4Safety Fund from the proceeds of the taxes levied, including
5interest earnings thereon, the school board by resolution shall
6use such excess and other board restricted funds, excluding
7bond proceeds and earnings from such proceeds, as follows:
8        (1) for other authorized fire prevention, safety,
9    energy conservation, and school security purposes; or
10        (2) for transfer to the Operations and Maintenance Fund
11    for the purpose of abating an equal amount of operations
12    and maintenance purposes taxes.
13Notwithstanding subdivision (2) of this subsection (j) and
14subsection (k) of this Section, through June 30, 2017 2016, the
15school board may, by proper resolution following a public
16hearing set by the school board or the president of the school
17board (that is preceded (i) by at least one published notice
18over the name of the clerk or secretary of the board, occurring
19at least 7 days and not more than 30 days prior to the hearing,
20in a newspaper of general circulation within the school
21district and (ii) by posted notice over the name of the clerk
22or secretary of the board, at least 48 hours before the
23hearing, at the principal office of the school board or at the
24building where the hearing is to be held if a principal office
25does not exist, with both notices setting forth the time, date,
26place, and subject matter of the hearing), transfer surplus

 

 

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1life safety taxes and interest earnings thereon to the
2Operations and Maintenance Fund for building repair work.
3    (k) If any transfer is made to the Operation and
4Maintenance Fund, the secretary of the school board shall
5within 30 days notify the county clerk of the amount of that
6transfer and direct the clerk to abate the taxes to be extended
7for the purposes of operations and maintenance authorized under
8Section 17-2 of this Act by an amount equal to such transfer.
9    (l) If the proceeds from the tax levy authorized by this
10Section are insufficient to complete the work approved under
11this Section, the school board is authorized to sell bonds
12without referendum under the provisions of this Section in an
13amount that, when added to the proceeds of the tax levy
14authorized by this Section, will allow completion of the
15approved work.
16    (m) Any bonds issued pursuant to this Section shall bear
17interest at a rate not to exceed the maximum rate authorized by
18law at the time of the making of the contract, shall mature
19within 20 years from date, and shall be signed by the president
20of the school board and the treasurer of the school district.
21    (n) In order to authorize and issue such bonds, the school
22board shall adopt a resolution fixing the amount of bonds, the
23date thereof, the maturities thereof, rates of interest
24thereof, place of payment and denomination, which shall be in
25denominations of not less than $100 and not more than $5,000,
26and provide for the levy and collection of a direct annual tax

 

 

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1upon all the taxable property in the school district sufficient
2to pay the principal and interest on such bonds to maturity.
3Upon the filing in the office of the county clerk of the county
4in which the school district is located of a certified copy of
5the resolution, it is the duty of the county clerk to extend
6the tax therefor in addition to and in excess of all other
7taxes heretofore or hereafter authorized to be levied by such
8school district.
9    (o) After the time such bonds are issued as provided for by
10this Section, if additional alterations or reconstructions are
11required to be made because of surveys conducted by an
12architect or engineer licensed in the State of Illinois, the
13district may levy a tax at a rate not to exceed .05% per year
14upon all the taxable property of the district or issue
15additional bonds, whichever action shall be the most feasible.
16    (p) This Section is cumulative and constitutes complete
17authority for the issuance of bonds as provided in this Section
18notwithstanding any other statute or law to the contrary.
19    (q) With respect to instruments for the payment of money
20issued under this Section either before, on, or after the
21effective date of Public Act 86-004 (June 6, 1989), it is, and
22always has been, the intention of the General Assembly (i) that
23the Omnibus Bond Acts are, and always have been, supplementary
24grants of power to issue instruments in accordance with the
25Omnibus Bond Acts, regardless of any provision of this Act that
26may appear to be or to have been more restrictive than those

 

 

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1Acts, (ii) that the provisions of this Section are not a
2limitation on the supplementary authority granted by the
3Omnibus Bond Acts, and (iii) that instruments issued under this
4Section within the supplementary authority granted by the
5Omnibus Bond Acts are not invalid because of any provision of
6this Act that may appear to be or to have been more restrictive
7than those Acts.
8    (r) When the purposes for which the bonds are issued have
9been accomplished and paid for in full and there remain funds
10on hand from the proceeds of the bond sale and interest
11earnings therefrom, the board shall, by resolution, use such
12excess funds in accordance with the provisions of Section
1310-22.14 of this Act.
14    (s) Whenever any tax is levied or bonds issued for fire
15prevention, safety, energy conservation, and school security
16purposes, such proceeds shall be deposited and accounted for
17separately within the Fire Prevention and Safety Fund.
18(Source: P.A. 98-26, eff. 6-21-13.)
 
19    (105 ILCS 5/17-2A)  (from Ch. 122, par. 17-2A)
20    Sec. 17-2A. Interfund Transfers.
21    (a) The school board of any district having a population of
22less than 500,000 inhabitants may, by proper resolution
23following a public hearing set by the school board or the
24president of the school board (that is preceded (i) by at least
25one published notice over the name of the clerk or secretary of

 

 

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1the board, occurring at least 7 days and not more than 30 days
2prior to the hearing, in a newspaper of general circulation
3within the school district and (ii) by posted notice over the
4name of the clerk or secretary of the board, at least 48 hours
5before the hearing, at the principal office of the school board
6or at the building where the hearing is to be held if a
7principal office does not exist, with both notices setting
8forth the time, date, place, and subject matter of the
9hearing), transfer money from (1) the Educational Fund to the
10Operations and Maintenance Fund or the Transportation Fund, (2)
11the Operations and Maintenance Fund to the Educational Fund or
12the Transportation Fund, or (3) the Transportation Fund to the
13Educational Fund or the Operations and Maintenance Fund of said
14district, provided that, except during the period from July 1,
152003 through June 30, 2017 2016, such transfer is made solely
16for the purpose of meeting one-time, non-recurring expenses.
17Except during the period from July 1, 2003 through June 30,
182017 2016 and except as otherwise provided in subsection (b) of
19this Section, any other permanent interfund transfers
20authorized by any provision or judicial interpretation of this
21Code for which the transferee fund is not precisely and
22specifically set forth in the provision of this Code
23authorizing such transfer shall be made to the fund of the
24school district most in need of the funds being transferred, as
25determined by resolution of the school board.
26     (b) Notwithstanding subsection (a) of this Section or any

 

 

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1other provision of this Code to the contrary, the school board
2of any school district (i) that is subject to the Property Tax
3Extension Limitation Law, (ii) that has a population of less
4than 500,000 inhabitants, (iii) that is levying at its maximum
5tax rate, (iv) whose total equalized assessed valuation has
6declined 20% in the prior 2 years, (v) in which 80% or more of
7its students receive free or reduced-price lunch, and (vi) that
8had an equalized assessed valuation of less than $207 million
9but more than $203 million in the 2011 levy year may annually,
10until July 1, 2016, transfer money from any fund of the
11district, other than the Illinois Municipal Retirement Fund and
12the Bonds and Interest Fund, to the educational fund, the
13operations and maintenance fund, or the transportation fund of
14the district by proper resolution following a public hearing
15set by the school board or the president of the school board,
16with notice as provided in subsection (a) of this Section, so
17long as the district meets the qualifications set forth in this
18subsection (b) on the effective date of this amendatory Act of
19the 98th General Assembly even if the district does not meet
20those qualifications at the time a given transfer is made.
21(Source: P.A. 98-26, eff. 6-21-13; 98-131, eff. 1-1-14.)
 
22    (105 ILCS 5/18-4.3)  (from Ch. 122, par. 18-4.3)
23    Sec. 18-4.3. Summer school grants. Through fiscal year
242014, grants Grants shall be determined for pupil attendance in
25summer schools conducted under Sections 10-22.33A and 34-18 and

 

 

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1approved under Section 2-3.25 in the following manner.
2    The amount of grant for each accredited summer school
3attendance pupil shall be obtained by dividing the total amount
4of apportionments determined under Section 18-8.05 by the
5actual number of pupils in average daily attendance used for
6such apportionments. The number of credited summer school
7attendance pupils shall be determined (a) by counting clock
8hours of class instruction by pupils enrolled in grades 1
9through 12 in approved courses conducted at least 60 clock
10hours in summer sessions; (b) by dividing such total of clock
11hours of class instruction by 4 to produce days of credited
12pupil attendance; (c) by dividing such days of credited pupil
13attendance by the actual number of days in the regular term as
14used in computation in the general apportionment in Section
1518-8.05; and (d) by multiplying by 1.25.
16    The amount of the grant for a summer school program
17approved by the State Superintendent of Education for children
18with disabilities, as defined in Sections 14-1.02 through
1914-1.07, shall be determined in the manner contained above
20except that average daily membership shall be utilized in lieu
21of average daily attendance.
22    In the case of an apportionment based on summer school
23attendance or membership pupils, the claim therefor shall be
24presented as a separate claim for the particular school year in
25which such summer school session ends. On or before November 1
26of each year the superintendent of each eligible school

 

 

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1district shall certify to the State Superintendent of Education
2the claim of the district for the summer session just ended.
3Failure on the part of the school board to so certify shall
4constitute a forfeiture of its right to such payment. The State
5Superintendent of Education shall transmit to the Comptroller
6no later than December 15th of each year vouchers for payment
7of amounts due school districts for summer school. The State
8Superintendent of Education shall direct the Comptroller to
9draw his warrants for payments thereof by the 30th day of
10December. If the money appropriated by the General Assembly for
11such purpose for any year is insufficient, it shall be
12apportioned on the basis of claims approved.
13    However, notwithstanding the foregoing provisions, for
14each fiscal year the money appropriated by the General Assembly
15for the purposes of this Section shall only be used for grants
16for approved summer school programs for those children with
17disabilities served pursuant to Section 14-7.02 or 14-7.02b of
18this Code.
19    No funding shall be provided to school districts under this
20Section after fiscal year 2014.
21(Source: P.A. 93-1022, eff. 8-24-04.)
 
22    (105 ILCS 5/18-8.05)
23    Sec. 18-8.05. Basis for apportionment of general State
24financial aid and supplemental general State aid to the common
25schools for the 1998-1999 through the 2013-2014 and subsequent

 

 

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1school years.
 
2(A) General Provisions.
3    (1) The provisions of this Section relating to the
4calculation and apportionment of general State financial aid
5and supplemental general State aid apply to the 1998-1999
6through the 2013-2014 and subsequent school years. The system
7of general State financial aid provided for in this Section is
8designed to assure that, through a combination of State
9financial aid and required local resources, the financial
10support provided each pupil in Average Daily Attendance equals
11or exceeds a prescribed per pupil Foundation Level. This
12formula approach imputes a level of per pupil Available Local
13Resources and provides for the basis to calculate a per pupil
14level of general State financial aid that, when added to
15Available Local Resources, equals or exceeds the Foundation
16Level. The amount of per pupil general State financial aid for
17school districts, in general, varies in inverse relation to
18Available Local Resources. Per pupil amounts are based upon
19each school district's Average Daily Attendance as that term is
20defined in this Section.
21    (2) In addition to general State financial aid, school
22districts with specified levels or concentrations of pupils
23from low income households are eligible to receive supplemental
24general State financial aid grants as provided pursuant to
25subsection (H). The supplemental State aid grants provided for

 

 

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1school districts under subsection (H) shall be appropriated for
2distribution to school districts as part of the same line item
3in which the general State financial aid of school districts is
4appropriated under this Section.
5    (3) To receive financial assistance under this Section,
6school districts are required to file claims with the State
7Board of Education, subject to the following requirements:
8        (a) Any school district which fails for any given
9    school year to maintain school as required by law, or to
10    maintain a recognized school is not eligible to file for
11    such school year any claim upon the Common School Fund. In
12    case of nonrecognition of one or more attendance centers in
13    a school district otherwise operating recognized schools,
14    the claim of the district shall be reduced in the
15    proportion which the Average Daily Attendance in the
16    attendance center or centers bear to the Average Daily
17    Attendance in the school district. A "recognized school"
18    means any public school which meets the standards as
19    established for recognition by the State Board of
20    Education. A school district or attendance center not
21    having recognition status at the end of a school term is
22    entitled to receive State aid payments due upon a legal
23    claim which was filed while it was recognized.
24        (b) School district claims filed under this Section are
25    subject to Sections 18-9 and 18-12, except as otherwise
26    provided in this Section.

 

 

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1        (c) If a school district operates a full year school
2    under Section 10-19.1, the general State aid to the school
3    district shall be determined by the State Board of
4    Education in accordance with this Section as near as may be
5    applicable.
6        (d) (Blank).
7    (4) Except as provided in subsections (H) and (L), the
8board of any district receiving any of the grants provided for
9in this Section may apply those funds to any fund so received
10for which that board is authorized to make expenditures by law.
11    School districts are not required to exert a minimum
12Operating Tax Rate in order to qualify for assistance under
13this Section.
14    (5) As used in this Section the following terms, when
15capitalized, shall have the meaning ascribed herein:
16        (a) "Average Daily Attendance": A count of pupil
17    attendance in school, averaged as provided for in
18    subsection (C) and utilized in deriving per pupil financial
19    support levels.
20        (b) "Available Local Resources": A computation of
21    local financial support, calculated on the basis of Average
22    Daily Attendance and derived as provided pursuant to
23    subsection (D).
24        (c) "Corporate Personal Property Replacement Taxes":
25    Funds paid to local school districts pursuant to "An Act in
26    relation to the abolition of ad valorem personal property

 

 

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1    tax and the replacement of revenues lost thereby, and
2    amending and repealing certain Acts and parts of Acts in
3    connection therewith", certified August 14, 1979, as
4    amended (Public Act 81-1st S.S.-1).
5        (d) "Foundation Level": A prescribed level of per pupil
6    financial support as provided for in subsection (B).
7        (e) "Operating Tax Rate": All school district property
8    taxes extended for all purposes, except Bond and Interest,
9    Summer School, Rent, Capital Improvement, and Vocational
10    Education Building purposes.
 
11(B) Foundation Level.
12    (1) The Foundation Level is a figure established by the
13State representing the minimum level of per pupil financial
14support that should be available to provide for the basic
15education of each pupil in Average Daily Attendance. As set
16forth in this Section, each school district is assumed to exert
17a sufficient local taxing effort such that, in combination with
18the aggregate of general State financial aid provided the
19district, an aggregate of State and local resources are
20available to meet the basic education needs of pupils in the
21district.
22    (2) For the 1998-1999 school year, the Foundation Level of
23support is $4,225. For the 1999-2000 school year, the
24Foundation Level of support is $4,325. For the 2000-2001 school
25year, the Foundation Level of support is $4,425. For the

 

 

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12001-2002 school year and 2002-2003 school year, the Foundation
2Level of support is $4,560. For the 2003-2004 school year, the
3Foundation Level of support is $4,810. For the 2004-2005 school
4year, the Foundation Level of support is $4,964. For the
52005-2006 school year, the Foundation Level of support is
6$5,164. For the 2006-2007 school year, the Foundation Level of
7support is $5,334. For the 2007-2008 school year, the
8Foundation Level of support is $5,734. For the 2008-2009 school
9year, the Foundation Level of support is $5,959.
10    (3) For the 2009-2010 school year and each school year
11thereafter, the Foundation Level of support is $6,119 or such
12greater amount as may be established by law by the General
13Assembly.
 
14(C) Average Daily Attendance.
15    (1) For purposes of calculating general State aid pursuant
16to subsection (E), an Average Daily Attendance figure shall be
17utilized. The Average Daily Attendance figure for formula
18calculation purposes shall be the monthly average of the actual
19number of pupils in attendance of each school district, as
20further averaged for the best 3 months of pupil attendance for
21each school district. In compiling the figures for the number
22of pupils in attendance, school districts and the State Board
23of Education shall, for purposes of general State aid funding,
24conform attendance figures to the requirements of subsection
25(F).

 

 

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1    (2) The Average Daily Attendance figures utilized in
2subsection (E) shall be the requisite attendance data for the
3school year immediately preceding the school year for which
4general State aid is being calculated or the average of the
5attendance data for the 3 preceding school years, whichever is
6greater. The Average Daily Attendance figures utilized in
7subsection (H) shall be the requisite attendance data for the
8school year immediately preceding the school year for which
9general State aid is being calculated.
 
10(D) Available Local Resources.
11    (1) For purposes of calculating general State aid pursuant
12to subsection (E), a representation of Available Local
13Resources per pupil, as that term is defined and determined in
14this subsection, shall be utilized. Available Local Resources
15per pupil shall include a calculated dollar amount representing
16local school district revenues from local property taxes and
17from Corporate Personal Property Replacement Taxes, expressed
18on the basis of pupils in Average Daily Attendance. Calculation
19of Available Local Resources shall exclude any tax amnesty
20funds received as a result of Public Act 93-26.
21    (2) In determining a school district's revenue from local
22property taxes, the State Board of Education shall utilize the
23equalized assessed valuation of all taxable property of each
24school district as of September 30 of the previous year. The
25equalized assessed valuation utilized shall be obtained and

 

 

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1determined as provided in subsection (G).
2    (3) For school districts maintaining grades kindergarten
3through 12, local property tax revenues per pupil shall be
4calculated as the product of the applicable equalized assessed
5valuation for the district multiplied by 3.00%, and divided by
6the district's Average Daily Attendance figure. For school
7districts maintaining grades kindergarten through 8, local
8property tax revenues per pupil shall be calculated as the
9product of the applicable equalized assessed valuation for the
10district multiplied by 2.30%, and divided by the district's
11Average Daily Attendance figure. For school districts
12maintaining grades 9 through 12, local property tax revenues
13per pupil shall be the applicable equalized assessed valuation
14of the district multiplied by 1.05%, and divided by the
15district's Average Daily Attendance figure.
16    For partial elementary unit districts created pursuant to
17Article 11E of this Code, local property tax revenues per pupil
18shall be calculated as the product of the equalized assessed
19valuation for property within the partial elementary unit
20district for elementary purposes, as defined in Article 11E of
21this Code, multiplied by 2.06% and divided by the district's
22Average Daily Attendance figure, plus the product of the
23equalized assessed valuation for property within the partial
24elementary unit district for high school purposes, as defined
25in Article 11E of this Code, multiplied by 0.94% and divided by
26the district's Average Daily Attendance figure.

 

 

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1    (4) The Corporate Personal Property Replacement Taxes paid
2to each school district during the calendar year one year
3before the calendar year in which a school year begins, divided
4by the Average Daily Attendance figure for that district, shall
5be added to the local property tax revenues per pupil as
6derived by the application of the immediately preceding
7paragraph (3). The sum of these per pupil figures for each
8school district shall constitute Available Local Resources as
9that term is utilized in subsection (E) in the calculation of
10general State aid.
 
11(E) Computation of General State Aid.
12    (1) For each school year, the amount of general State aid
13allotted to a school district shall be computed by the State
14Board of Education as provided in this subsection.
15    (2) For any school district for which Available Local
16Resources per pupil is less than the product of 0.93 times the
17Foundation Level, general State aid for that district shall be
18calculated as an amount equal to the Foundation Level minus
19Available Local Resources, multiplied by the Average Daily
20Attendance of the school district.
21    (3) For any school district for which Available Local
22Resources per pupil is equal to or greater than the product of
230.93 times the Foundation Level and less than the product of
241.75 times the Foundation Level, the general State aid per
25pupil shall be a decimal proportion of the Foundation Level

 

 

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1derived using a linear algorithm. Under this linear algorithm,
2the calculated general State aid per pupil shall decline in
3direct linear fashion from 0.07 times the Foundation Level for
4a school district with Available Local Resources equal to the
5product of 0.93 times the Foundation Level, to 0.05 times the
6Foundation Level for a school district with Available Local
7Resources equal to the product of 1.75 times the Foundation
8Level. The allocation of general State aid for school districts
9subject to this paragraph 3 shall be the calculated general
10State aid per pupil figure multiplied by the Average Daily
11Attendance of the school district.
12    (4) For any school district for which Available Local
13Resources per pupil equals or exceeds the product of 1.75 times
14the Foundation Level, the general State aid for the school
15district shall be calculated as the product of $218 multiplied
16by the Average Daily Attendance of the school district.
17    (5) The amount of general State aid allocated to a school
18district for the 1999-2000 school year meeting the requirements
19set forth in paragraph (4) of subsection (G) shall be increased
20by an amount equal to the general State aid that would have
21been received by the district for the 1998-1999 school year by
22utilizing the Extension Limitation Equalized Assessed
23Valuation as calculated in paragraph (4) of subsection (G) less
24the general State aid allotted for the 1998-1999 school year.
25This amount shall be deemed a one time increase, and shall not
26affect any future general State aid allocations.
 

 

 

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1(F) Compilation of Average Daily Attendance.
2    (1) Each school district shall, by July 1 of each year,
3submit to the State Board of Education, on forms prescribed by
4the State Board of Education, attendance figures for the school
5year that began in the preceding calendar year. The attendance
6information so transmitted shall identify the average daily
7attendance figures for each month of the school year. Beginning
8with the general State aid claim form for the 2002-2003 school
9year, districts shall calculate Average Daily Attendance as
10provided in subdivisions (a), (b), and (c) of this paragraph
11(1).
12        (a) In districts that do not hold year-round classes,
13    days of attendance in August shall be added to the month of
14    September and any days of attendance in June shall be added
15    to the month of May.
16        (b) In districts in which all buildings hold year-round
17    classes, days of attendance in July and August shall be
18    added to the month of September and any days of attendance
19    in June shall be added to the month of May.
20        (c) In districts in which some buildings, but not all,
21    hold year-round classes, for the non-year-round buildings,
22    days of attendance in August shall be added to the month of
23    September and any days of attendance in June shall be added
24    to the month of May. The average daily attendance for the
25    year-round buildings shall be computed as provided in

 

 

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1    subdivision (b) of this paragraph (1). To calculate the
2    Average Daily Attendance for the district, the average
3    daily attendance for the year-round buildings shall be
4    multiplied by the days in session for the non-year-round
5    buildings for each month and added to the monthly
6    attendance of the non-year-round buildings.
7    Except as otherwise provided in this Section, days of
8attendance by pupils shall be counted only for sessions of not
9less than 5 clock hours of school work per day under direct
10supervision of: (i) teachers, or (ii) non-teaching personnel or
11volunteer personnel when engaging in non-teaching duties and
12supervising in those instances specified in subsection (a) of
13Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
14of legal school age and in kindergarten and grades 1 through
1512.
16    Days of attendance by tuition pupils shall be accredited
17only to the districts that pay the tuition to a recognized
18school.
19    (2) Days of attendance by pupils of less than 5 clock hours
20of school shall be subject to the following provisions in the
21compilation of Average Daily Attendance.
22        (a) Pupils regularly enrolled in a public school for
23    only a part of the school day may be counted on the basis
24    of 1/6 day for every class hour of instruction of 40
25    minutes or more attended pursuant to such enrollment,
26    unless a pupil is enrolled in a block-schedule format of 80

 

 

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1    minutes or more of instruction, in which case the pupil may
2    be counted on the basis of the proportion of minutes of
3    school work completed each day to the minimum number of
4    minutes that school work is required to be held that day.
5        (b) (Blank).
6        (c) A session of 4 or more clock hours may be counted
7    as a day of attendance upon certification by the regional
8    superintendent, and approved by the State Superintendent
9    of Education to the extent that the district has been
10    forced to use daily multiple sessions.
11        (d) A session of 3 or more clock hours may be counted
12    as a day of attendance (1) when the remainder of the school
13    day or at least 2 hours in the evening of that day is
14    utilized for an in-service training program for teachers,
15    up to a maximum of 5 days per school year, provided a
16    district conducts an in-service training program for
17    teachers in accordance with Section 10-22.39 of this Code;
18    or, in lieu of 4 such days, 2 full days may be used, in
19    which event each such day may be counted as a day required
20    for a legal school calendar pursuant to Section 10-19 of
21    this Code; (1.5) when, of the 5 days allowed under item
22    (1), a maximum of 4 days are used for parent-teacher
23    conferences, or, in lieu of 4 such days, 2 full days are
24    used, in which case each such day may be counted as a
25    calendar day required under Section 10-19 of this Code,
26    provided that the full-day, parent-teacher conference

 

 

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1    consists of (i) a minimum of 5 clock hours of
2    parent-teacher conferences, (ii) both a minimum of 2 clock
3    hours of parent-teacher conferences held in the evening
4    following a full day of student attendance, as specified in
5    subsection (F)(1)(c), and a minimum of 3 clock hours of
6    parent-teacher conferences held on the day immediately
7    following evening parent-teacher conferences, or (iii)
8    multiple parent-teacher conferences held in the evenings
9    following full days of student attendance, as specified in
10    subsection (F)(1)(c), in which the time used for the
11    parent-teacher conferences is equivalent to a minimum of 5
12    clock hours; and (2) when days in addition to those
13    provided in items (1) and (1.5) are scheduled by a school
14    pursuant to its school improvement plan adopted under
15    Article 34 or its revised or amended school improvement
16    plan adopted under Article 2, provided that (i) such
17    sessions of 3 or more clock hours are scheduled to occur at
18    regular intervals, (ii) the remainder of the school days in
19    which such sessions occur are utilized for in-service
20    training programs or other staff development activities
21    for teachers, and (iii) a sufficient number of minutes of
22    school work under the direct supervision of teachers are
23    added to the school days between such regularly scheduled
24    sessions to accumulate not less than the number of minutes
25    by which such sessions of 3 or more clock hours fall short
26    of 5 clock hours. Any full days used for the purposes of

 

 

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1    this paragraph shall not be considered for computing
2    average daily attendance. Days scheduled for in-service
3    training programs, staff development activities, or
4    parent-teacher conferences may be scheduled separately for
5    different grade levels and different attendance centers of
6    the district.
7        (e) A session of not less than one clock hour of
8    teaching hospitalized or homebound pupils on-site or by
9    telephone to the classroom may be counted as 1/2 day of
10    attendance, however these pupils must receive 4 or more
11    clock hours of instruction to be counted for a full day of
12    attendance.
13        (f) A session of at least 4 clock hours may be counted
14    as a day of attendance for first grade pupils, and pupils
15    in full day kindergartens, and a session of 2 or more hours
16    may be counted as 1/2 day of attendance by pupils in
17    kindergartens which provide only 1/2 day of attendance.
18        (g) For children with disabilities who are below the
19    age of 6 years and who cannot attend 2 or more clock hours
20    because of their disability or immaturity, a session of not
21    less than one clock hour may be counted as 1/2 day of
22    attendance; however for such children whose educational
23    needs so require a session of 4 or more clock hours may be
24    counted as a full day of attendance.
25        (h) A recognized kindergarten which provides for only
26    1/2 day of attendance by each pupil shall not have more

 

 

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1    than 1/2 day of attendance counted in any one day. However,
2    kindergartens may count 2 1/2 days of attendance in any 5
3    consecutive school days. When a pupil attends such a
4    kindergarten for 2 half days on any one school day, the
5    pupil shall have the following day as a day absent from
6    school, unless the school district obtains permission in
7    writing from the State Superintendent of Education.
8    Attendance at kindergartens which provide for a full day of
9    attendance by each pupil shall be counted the same as
10    attendance by first grade pupils. Only the first year of
11    attendance in one kindergarten shall be counted, except in
12    case of children who entered the kindergarten in their
13    fifth year whose educational development requires a second
14    year of kindergarten as determined under the rules and
15    regulations of the State Board of Education.
16        (i) On the days when the Prairie State Achievement
17    Examination is administered under subsection (c) of
18    Section 2-3.64 of this Code, the day of attendance for a
19    pupil whose school day must be shortened to accommodate
20    required testing procedures may be less than 5 clock hours
21    and shall be counted towards the 176 days of actual pupil
22    attendance required under Section 10-19 of this Code,
23    provided that a sufficient number of minutes of school work
24    in excess of 5 clock hours are first completed on other
25    school days to compensate for the loss of school work on
26    the examination days.

 

 

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1        (j) Pupils enrolled in a remote educational program
2    established under Section 10-29 of this Code may be counted
3    on the basis of one-fifth day of attendance for every clock
4    hour of instruction attended in the remote educational
5    program, provided that, in any month, the school district
6    may not claim for a student enrolled in a remote
7    educational program more days of attendance than the
8    maximum number of days of attendance the district can claim
9    (i) for students enrolled in a building holding year-round
10    classes if the student is classified as participating in
11    the remote educational program on a year-round schedule or
12    (ii) for students enrolled in a building not holding
13    year-round classes if the student is not classified as
14    participating in the remote educational program on a
15    year-round schedule.
 
16(G) Equalized Assessed Valuation Data.
17    (1) For purposes of the calculation of Available Local
18Resources required pursuant to subsection (D), the State Board
19of Education shall secure from the Department of Revenue the
20value as equalized or assessed by the Department of Revenue of
21all taxable property of every school district, together with
22(i) the applicable tax rate used in extending taxes for the
23funds of the district as of September 30 of the previous year
24and (ii) the limiting rate for all school districts subject to
25property tax extension limitations as imposed under the

 

 

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1Property Tax Extension Limitation Law.
2    The Department of Revenue shall add to the equalized
3assessed value of all taxable property of each school district
4situated entirely or partially within a county that is or was
5subject to the provisions of Section 15-176 or 15-177 of the
6Property Tax Code (a) an amount equal to the total amount by
7which the homestead exemption allowed under Section 15-176 or
815-177 of the Property Tax Code for real property situated in
9that school district exceeds the total amount that would have
10been allowed in that school district if the maximum reduction
11under Section 15-176 was (i) $4,500 in Cook County or $3,500 in
12all other counties in tax year 2003 or (ii) $5,000 in all
13counties in tax year 2004 and thereafter and (b) an amount
14equal to the aggregate amount for the taxable year of all
15additional exemptions under Section 15-175 of the Property Tax
16Code for owners with a household income of $30,000 or less. The
17county clerk of any county that is or was subject to the
18provisions of Section 15-176 or 15-177 of the Property Tax Code
19shall annually calculate and certify to the Department of
20Revenue for each school district all homestead exemption
21amounts under Section 15-176 or 15-177 of the Property Tax Code
22and all amounts of additional exemptions under Section 15-175
23of the Property Tax Code for owners with a household income of
24$30,000 or less. It is the intent of this paragraph that if the
25general homestead exemption for a parcel of property is
26determined under Section 15-176 or 15-177 of the Property Tax

 

 

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1Code rather than Section 15-175, then the calculation of
2Available Local Resources shall not be affected by the
3difference, if any, between the amount of the general homestead
4exemption allowed for that parcel of property under Section
515-176 or 15-177 of the Property Tax Code and the amount that
6would have been allowed had the general homestead exemption for
7that parcel of property been determined under Section 15-175 of
8the Property Tax Code. It is further the intent of this
9paragraph that if additional exemptions are allowed under
10Section 15-175 of the Property Tax Code for owners with a
11household income of less than $30,000, then the calculation of
12Available Local Resources shall not be affected by the
13difference, if any, because of those additional exemptions.
14    This equalized assessed valuation, as adjusted further by
15the requirements of this subsection, shall be utilized in the
16calculation of Available Local Resources.
17    (2) The equalized assessed valuation in paragraph (1) shall
18be adjusted, as applicable, in the following manner:
19        (a) For the purposes of calculating State aid under
20    this Section, with respect to any part of a school district
21    within a redevelopment project area in respect to which a
22    municipality has adopted tax increment allocation
23    financing pursuant to the Tax Increment Allocation
24    Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
25    of the Illinois Municipal Code or the Industrial Jobs
26    Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the

 

 

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1    Illinois Municipal Code, no part of the current equalized
2    assessed valuation of real property located in any such
3    project area which is attributable to an increase above the
4    total initial equalized assessed valuation of such
5    property shall be used as part of the equalized assessed
6    valuation of the district, until such time as all
7    redevelopment project costs have been paid, as provided in
8    Section 11-74.4-8 of the Tax Increment Allocation
9    Redevelopment Act or in Section 11-74.6-35 of the
10    Industrial Jobs Recovery Law. For the purpose of the
11    equalized assessed valuation of the district, the total
12    initial equalized assessed valuation or the current
13    equalized assessed valuation, whichever is lower, shall be
14    used until such time as all redevelopment project costs
15    have been paid.
16        (b) The real property equalized assessed valuation for
17    a school district shall be adjusted by subtracting from the
18    real property value as equalized or assessed by the
19    Department of Revenue for the district an amount computed
20    by dividing the amount of any abatement of taxes under
21    Section 18-170 of the Property Tax Code by 3.00% for a
22    district maintaining grades kindergarten through 12, by
23    2.30% for a district maintaining grades kindergarten
24    through 8, or by 1.05% for a district maintaining grades 9
25    through 12 and adjusted by an amount computed by dividing
26    the amount of any abatement of taxes under subsection (a)

 

 

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1    of Section 18-165 of the Property Tax Code by the same
2    percentage rates for district type as specified in this
3    subparagraph (b).
4    (3) For the 1999-2000 school year and each school year
5thereafter, if a school district meets all of the criteria of
6this subsection (G)(3), the school district's Available Local
7Resources shall be calculated under subsection (D) using the
8district's Extension Limitation Equalized Assessed Valuation
9as calculated under this subsection (G)(3).
10    For purposes of this subsection (G)(3) the following terms
11shall have the following meanings:
12        "Budget Year": The school year for which general State
13    aid is calculated and awarded under subsection (E).
14        "Base Tax Year": The property tax levy year used to
15    calculate the Budget Year allocation of general State aid.
16        "Preceding Tax Year": The property tax levy year
17    immediately preceding the Base Tax Year.
18        "Base Tax Year's Tax Extension": The product of the
19    equalized assessed valuation utilized by the County Clerk
20    in the Base Tax Year multiplied by the limiting rate as
21    calculated by the County Clerk and defined in the Property
22    Tax Extension Limitation Law.
23        "Preceding Tax Year's Tax Extension": The product of
24    the equalized assessed valuation utilized by the County
25    Clerk in the Preceding Tax Year multiplied by the Operating
26    Tax Rate as defined in subsection (A).

 

 

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1        "Extension Limitation Ratio": A numerical ratio,
2    certified by the County Clerk, in which the numerator is
3    the Base Tax Year's Tax Extension and the denominator is
4    the Preceding Tax Year's Tax Extension.
5        "Operating Tax Rate": The operating tax rate as defined
6    in subsection (A).
7    If a school district is subject to property tax extension
8limitations as imposed under the Property Tax Extension
9Limitation Law, the State Board of Education shall calculate
10the Extension Limitation Equalized Assessed Valuation of that
11district. For the 1999-2000 school year, the Extension
12Limitation Equalized Assessed Valuation of a school district as
13calculated by the State Board of Education shall be equal to
14the product of the district's 1996 Equalized Assessed Valuation
15and the district's Extension Limitation Ratio. Except as
16otherwise provided in this paragraph for a school district that
17has approved or does approve an increase in its limiting rate,
18for the 2000-2001 school year and each school year thereafter,
19the Extension Limitation Equalized Assessed Valuation of a
20school district as calculated by the State Board of Education
21shall be equal to the product of the Equalized Assessed
22Valuation last used in the calculation of general State aid and
23the district's Extension Limitation Ratio. If the Extension
24Limitation Equalized Assessed Valuation of a school district as
25calculated under this subsection (G)(3) is less than the
26district's equalized assessed valuation as calculated pursuant

 

 

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1to subsections (G)(1) and (G)(2), then for purposes of
2calculating the district's general State aid for the Budget
3Year pursuant to subsection (E), that Extension Limitation
4Equalized Assessed Valuation shall be utilized to calculate the
5district's Available Local Resources under subsection (D). For
6the 2009-2010 school year and each school year thereafter, if a
7school district has approved or does approve an increase in its
8limiting rate, pursuant to Section 18-190 of the Property Tax
9Code, affecting the Base Tax Year, the Extension Limitation
10Equalized Assessed Valuation of the school district, as
11calculated by the State Board of Education, shall be equal to
12the product of the Equalized Assessed Valuation last used in
13the calculation of general State aid times an amount equal to
14one plus the percentage increase, if any, in the Consumer Price
15Index for all Urban Consumers for all items published by the
16United States Department of Labor for the 12-month calendar
17year preceding the Base Tax Year, plus the Equalized Assessed
18Valuation of new property, annexed property, and recovered tax
19increment value and minus the Equalized Assessed Valuation of
20disconnected property. New property and recovered tax
21increment value shall have the meanings set forth in the
22Property Tax Extension Limitation Law.
23    Partial elementary unit districts created in accordance
24with Article 11E of this Code shall not be eligible for the
25adjustment in this subsection (G)(3) until the fifth year
26following the effective date of the reorganization.

 

 

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1    (3.5) For the 2010-2011 school year and each school year
2thereafter, if a school district's boundaries span multiple
3counties, then the Department of Revenue shall send to the
4State Board of Education, for the purpose of calculating
5general State aid, the limiting rate and individual rates by
6purpose for the county that contains the majority of the school
7district's Equalized Assessed Valuation.
8    (4) For the purposes of calculating general State aid for
9the 1999-2000 school year only, if a school district
10experienced a triennial reassessment on the equalized assessed
11valuation used in calculating its general State financial aid
12apportionment for the 1998-1999 school year, the State Board of
13Education shall calculate the Extension Limitation Equalized
14Assessed Valuation that would have been used to calculate the
15district's 1998-1999 general State aid. This amount shall equal
16the product of the equalized assessed valuation used to
17calculate general State aid for the 1997-1998 school year and
18the district's Extension Limitation Ratio. If the Extension
19Limitation Equalized Assessed Valuation of the school district
20as calculated under this paragraph (4) is less than the
21district's equalized assessed valuation utilized in
22calculating the district's 1998-1999 general State aid
23allocation, then for purposes of calculating the district's
24general State aid pursuant to paragraph (5) of subsection (E),
25that Extension Limitation Equalized Assessed Valuation shall
26be utilized to calculate the district's Available Local

 

 

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1Resources.
2    (5) For school districts having a majority of their
3equalized assessed valuation in any county except Cook, DuPage,
4Kane, Lake, McHenry, or Will, if the amount of general State
5aid allocated to the school district for the 1999-2000 school
6year under the provisions of subsection (E), (H), and (J) of
7this Section is less than the amount of general State aid
8allocated to the district for the 1998-1999 school year under
9these subsections, then the general State aid of the district
10for the 1999-2000 school year only shall be increased by the
11difference between these amounts. The total payments made under
12this paragraph (5) shall not exceed $14,000,000. Claims shall
13be prorated if they exceed $14,000,000.
 
14(H) Supplemental General State Aid.
15    (1) In addition to the general State aid a school district
16is allotted pursuant to subsection (E), qualifying school
17districts shall receive a grant, paid in conjunction with a
18district's payments of general State aid, for supplemental
19general State aid based upon the concentration level of
20children from low-income households within the school
21district. Supplemental State aid grants provided for school
22districts under this subsection shall be appropriated for
23distribution to school districts as part of the same line item
24in which the general State financial aid of school districts is
25appropriated under this Section.

 

 

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1    (1.5) This paragraph (1.5) applies only to those school
2years preceding the 2003-2004 school year. For purposes of this
3subsection (H), the term "Low-Income Concentration Level"
4shall be the low-income eligible pupil count from the most
5recently available federal census divided by the Average Daily
6Attendance of the school district. If, however, (i) the
7percentage decrease from the 2 most recent federal censuses in
8the low-income eligible pupil count of a high school district
9with fewer than 400 students exceeds by 75% or more the
10percentage change in the total low-income eligible pupil count
11of contiguous elementary school districts, whose boundaries
12are coterminous with the high school district, or (ii) a high
13school district within 2 counties and serving 5 elementary
14school districts, whose boundaries are coterminous with the
15high school district, has a percentage decrease from the 2 most
16recent federal censuses in the low-income eligible pupil count
17and there is a percentage increase in the total low-income
18eligible pupil count of a majority of the elementary school
19districts in excess of 50% from the 2 most recent federal
20censuses, then the high school district's low-income eligible
21pupil count from the earlier federal census shall be the number
22used as the low-income eligible pupil count for the high school
23district, for purposes of this subsection (H). The changes made
24to this paragraph (1) by Public Act 92-28 shall apply to
25supplemental general State aid grants for school years
26preceding the 2003-2004 school year that are paid in fiscal

 

 

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1year 1999 or thereafter and to any State aid payments made in
2fiscal year 1994 through fiscal year 1998 pursuant to
3subsection 1(n) of Section 18-8 of this Code (which was
4repealed on July 1, 1998), and any high school district that is
5affected by Public Act 92-28 is entitled to a recomputation of
6its supplemental general State aid grant or State aid paid in
7any of those fiscal years. This recomputation shall not be
8affected by any other funding.
9    (1.10) This paragraph (1.10) applies to the 2003-2004
10school year and each school year thereafter through the
112013-2014 school year. For purposes of this subsection (H), the
12term "Low-Income Concentration Level" shall, for each fiscal
13year, be the low-income eligible pupil count as of July 1 of
14the immediately preceding fiscal year (as determined by the
15Department of Human Services based on the number of pupils who
16are eligible for at least one of the following low income
17programs: Medicaid, the Children's Health Insurance Program,
18TANF, or Food Stamps, excluding pupils who are eligible for
19services provided by the Department of Children and Family
20Services, averaged over the 2 immediately preceding fiscal
21years for fiscal year 2004 and over the 3 immediately preceding
22fiscal years for each fiscal year thereafter) divided by the
23Average Daily Attendance of the school district.
24    (2) Supplemental general State aid pursuant to this
25subsection (H) shall be provided as follows for the 1998-1999,
261999-2000, and 2000-2001 school years only:

 

 

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1        (a) For any school district with a Low Income
2    Concentration Level of at least 20% and less than 35%, the
3    grant for any school year shall be $800 multiplied by the
4    low income eligible pupil count.
5        (b) For any school district with a Low Income
6    Concentration Level of at least 35% and less than 50%, the
7    grant for the 1998-1999 school year shall be $1,100
8    multiplied by the low income eligible pupil count.
9        (c) For any school district with a Low Income
10    Concentration Level of at least 50% and less than 60%, the
11    grant for the 1998-99 school year shall be $1,500
12    multiplied by the low income eligible pupil count.
13        (d) For any school district with a Low Income
14    Concentration Level of 60% or more, the grant for the
15    1998-99 school year shall be $1,900 multiplied by the low
16    income eligible pupil count.
17        (e) For the 1999-2000 school year, the per pupil amount
18    specified in subparagraphs (b), (c), and (d) immediately
19    above shall be increased to $1,243, $1,600, and $2,000,
20    respectively.
21        (f) For the 2000-2001 school year, the per pupil
22    amounts specified in subparagraphs (b), (c), and (d)
23    immediately above shall be $1,273, $1,640, and $2,050,
24    respectively.
25    (2.5) Supplemental general State aid pursuant to this
26subsection (H) shall be provided as follows for the 2002-2003

 

 

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1school year:
2        (a) For any school district with a Low Income
3    Concentration Level of less than 10%, the grant for each
4    school year shall be $355 multiplied by the low income
5    eligible pupil count.
6        (b) For any school district with a Low Income
7    Concentration Level of at least 10% and less than 20%, the
8    grant for each school year shall be $675 multiplied by the
9    low income eligible pupil count.
10        (c) For any school district with a Low Income
11    Concentration Level of at least 20% and less than 35%, the
12    grant for each school year shall be $1,330 multiplied by
13    the low income eligible pupil count.
14        (d) For any school district with a Low Income
15    Concentration Level of at least 35% and less than 50%, the
16    grant for each school year shall be $1,362 multiplied by
17    the low income eligible pupil count.
18        (e) For any school district with a Low Income
19    Concentration Level of at least 50% and less than 60%, the
20    grant for each school year shall be $1,680 multiplied by
21    the low income eligible pupil count.
22        (f) For any school district with a Low Income
23    Concentration Level of 60% or more, the grant for each
24    school year shall be $2,080 multiplied by the low income
25    eligible pupil count.
26    (2.10) Except as otherwise provided, supplemental general

 

 

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1State aid pursuant to this subsection (H) shall be provided as
2follows for the 2003-2004 school year and each school year
3thereafter:
4        (a) For any school district with a Low Income
5    Concentration Level of 15% or less, the grant for each
6    school year shall be $355 multiplied by the low income
7    eligible pupil count.
8        (b) For any school district with a Low Income
9    Concentration Level greater than 15%, the grant for each
10    school year shall be $294.25 added to the product of $2,700
11    and the square of the Low Income Concentration Level, all
12    multiplied by the low income eligible pupil count.
13    For the 2003-2004 school year and each school year
14thereafter through the 2008-2009 school year only, the grant
15shall be no less than the grant for the 2002-2003 school year.
16For the 2009-2010 school year only, the grant shall be no less
17than the grant for the 2002-2003 school year multiplied by
180.66. For the 2010-2011 school year only, the grant shall be no
19less than the grant for the 2002-2003 school year multiplied by
200.33. Notwithstanding the provisions of this paragraph to the
21contrary, if for any school year supplemental general State aid
22grants are prorated as provided in paragraph (1) of this
23subsection (H), then the grants under this paragraph shall be
24prorated.
25    For the 2003-2004 school year only, the grant shall be no
26greater than the grant received during the 2002-2003 school

 

 

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1year added to the product of 0.25 multiplied by the difference
2between the grant amount calculated under subsection (a) or (b)
3of this paragraph (2.10), whichever is applicable, and the
4grant received during the 2002-2003 school year. For the
52004-2005 school year only, the grant shall be no greater than
6the grant received during the 2002-2003 school year added to
7the product of 0.50 multiplied by the difference between the
8grant amount calculated under subsection (a) or (b) of this
9paragraph (2.10), whichever is applicable, and the grant
10received during the 2002-2003 school year. For the 2005-2006
11school year only, the grant shall be no greater than the grant
12received during the 2002-2003 school year added to the product
13of 0.75 multiplied by the difference between the grant amount
14calculated under subsection (a) or (b) of this paragraph
15(2.10), whichever is applicable, and the grant received during
16the 2002-2003 school year.
17    (3) School districts with an Average Daily Attendance of
18more than 1,000 and less than 50,000 that qualify for
19supplemental general State aid pursuant to this subsection
20shall submit a plan to the State Board of Education prior to
21October 30 of each year for the use of the funds resulting from
22this grant of supplemental general State aid for the
23improvement of instruction in which priority is given to
24meeting the education needs of disadvantaged children. Such
25plan shall be submitted in accordance with rules and
26regulations promulgated by the State Board of Education.

 

 

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1    (4) School districts with an Average Daily Attendance of
250,000 or more that qualify for supplemental general State aid
3pursuant to this subsection shall be required to distribute
4from funds available pursuant to this Section, no less than
5$261,000,000 in accordance with the following requirements:
6        (a) The required amounts shall be distributed to the
7    attendance centers within the district in proportion to the
8    number of pupils enrolled at each attendance center who are
9    eligible to receive free or reduced-price lunches or
10    breakfasts under the federal Child Nutrition Act of 1966
11    and under the National School Lunch Act during the
12    immediately preceding school year.
13        (b) The distribution of these portions of supplemental
14    and general State aid among attendance centers according to
15    these requirements shall not be compensated for or
16    contravened by adjustments of the total of other funds
17    appropriated to any attendance centers, and the Board of
18    Education shall utilize funding from one or several sources
19    in order to fully implement this provision annually prior
20    to the opening of school.
21        (c) Each attendance center shall be provided by the
22    school district a distribution of noncategorical funds and
23    other categorical funds to which an attendance center is
24    entitled under law in order that the general State aid and
25    supplemental general State aid provided by application of
26    this subsection supplements rather than supplants the

 

 

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1    noncategorical funds and other categorical funds provided
2    by the school district to the attendance centers.
3        (d) Any funds made available under this subsection that
4    by reason of the provisions of this subsection are not
5    required to be allocated and provided to attendance centers
6    may be used and appropriated by the board of the district
7    for any lawful school purpose.
8        (e) Funds received by an attendance center pursuant to
9    this subsection shall be used by the attendance center at
10    the discretion of the principal and local school council
11    for programs to improve educational opportunities at
12    qualifying schools through the following programs and
13    services: early childhood education, reduced class size or
14    improved adult to student classroom ratio, enrichment
15    programs, remedial assistance, attendance improvement, and
16    other educationally beneficial expenditures which
17    supplement the regular and basic programs as determined by
18    the State Board of Education. Funds provided shall not be
19    expended for any political or lobbying purposes as defined
20    by board rule.
21        (f) Each district subject to the provisions of this
22    subdivision (H)(4) shall submit an acceptable plan to meet
23    the educational needs of disadvantaged children, in
24    compliance with the requirements of this paragraph, to the
25    State Board of Education prior to July 15 of each year.
26    This plan shall be consistent with the decisions of local

 

 

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1    school councils concerning the school expenditure plans
2    developed in accordance with part 4 of Section 34-2.3. The
3    State Board shall approve or reject the plan within 60 days
4    after its submission. If the plan is rejected, the district
5    shall give written notice of intent to modify the plan
6    within 15 days of the notification of rejection and then
7    submit a modified plan within 30 days after the date of the
8    written notice of intent to modify. Districts may amend
9    approved plans pursuant to rules promulgated by the State
10    Board of Education.
11        Upon notification by the State Board of Education that
12    the district has not submitted a plan prior to July 15 or a
13    modified plan within the time period specified herein, the
14    State aid funds affected by that plan or modified plan
15    shall be withheld by the State Board of Education until a
16    plan or modified plan is submitted.
17        If the district fails to distribute State aid to
18    attendance centers in accordance with an approved plan, the
19    plan for the following year shall allocate funds, in
20    addition to the funds otherwise required by this
21    subsection, to those attendance centers which were
22    underfunded during the previous year in amounts equal to
23    such underfunding.
24        For purposes of determining compliance with this
25    subsection in relation to the requirements of attendance
26    center funding, each district subject to the provisions of

 

 

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1    this subsection shall submit as a separate document by
2    December 1 of each year a report of expenditure data for
3    the prior year in addition to any modification of its
4    current plan. If it is determined that there has been a
5    failure to comply with the expenditure provisions of this
6    subsection regarding contravention or supplanting, the
7    State Superintendent of Education shall, within 60 days of
8    receipt of the report, notify the district and any affected
9    local school council. The district shall within 45 days of
10    receipt of that notification inform the State
11    Superintendent of Education of the remedial or corrective
12    action to be taken, whether by amendment of the current
13    plan, if feasible, or by adjustment in the plan for the
14    following year. Failure to provide the expenditure report
15    or the notification of remedial or corrective action in a
16    timely manner shall result in a withholding of the affected
17    funds.
18        The State Board of Education shall promulgate rules and
19    regulations to implement the provisions of this
20    subsection. No funds shall be released under this
21    subdivision (H)(4) to any district that has not submitted a
22    plan that has been approved by the State Board of
23    Education.
 
24(I) (Blank).
 

 

 

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1(J) (Blank).
 
2(K) Grants to Laboratory and Alternative Schools.
3    In calculating the amount to be paid to the governing board
4of a public university that operates a laboratory school under
5this Section or to any alternative school that is operated by a
6regional superintendent of schools, the State Board of
7Education shall require by rule such reporting requirements as
8it deems necessary.
9    As used in this Section, "laboratory school" means a public
10school which is created and operated by a public university and
11approved by the State Board of Education. The governing board
12of a public university which receives funds from the State
13Board under this subsection (K) or subsection (i) of Section
1418-8.15 of this Code may not increase the number of students
15enrolled in its laboratory school from a single district, if
16that district is already sending 50 or more students, except
17under a mutual agreement between the school board of a
18student's district of residence and the university which
19operates the laboratory school. A laboratory school may not
20have more than 1,000 students, excluding students with
21disabilities in a special education program.
22    As used in this Section, "alternative school" means a
23public school which is created and operated by a Regional
24Superintendent of Schools and approved by the State Board of
25Education. Such alternative schools may offer courses of

 

 

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1instruction for which credit is given in regular school
2programs, courses to prepare students for the high school
3equivalency testing program or vocational and occupational
4training. A regional superintendent of schools may contract
5with a school district or a public community college district
6to operate an alternative school. An alternative school serving
7more than one educational service region may be established by
8the regional superintendents of schools of the affected
9educational service regions. An alternative school serving
10more than one educational service region may be operated under
11such terms as the regional superintendents of schools of those
12educational service regions may agree.
13    Each laboratory and alternative school shall file, on forms
14provided by the State Superintendent of Education, an annual
15State aid claim which states the Average Daily Attendance of
16the school's students by month. The best 3 months' Average
17Daily Attendance shall be computed for each school. The general
18State aid entitlement shall be computed by multiplying the
19applicable Average Daily Attendance by the Foundation Level as
20determined under this Section.
 
21(L) Payments, Additional Grants in Aid and Other Requirements.
22    (1) For a school district operating under the financial
23supervision of an Authority created under Article 34A, the
24general State aid otherwise payable to that district under this
25Section, but not the supplemental general State aid, shall be

 

 

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1reduced by an amount equal to the budget for the operations of
2the Authority as certified by the Authority to the State Board
3of Education, and an amount equal to such reduction shall be
4paid to the Authority created for such district for its
5operating expenses in the manner provided in Section 18-11. The
6remainder of general State school aid for any such district
7shall be paid in accordance with Article 34A when that Article
8provides for a disposition other than that provided by this
9Article.
10    (2) (Blank).
11    (3) Summer school. Summer school payments shall be made as
12provided in Section 18-4.3.
 
13(M) Education Funding Advisory Board.
14    The Education Funding Advisory Board, hereinafter in this
15subsection (M) referred to as the "Board", is hereby created.
16The Board shall consist of 5 members who are appointed by the
17Governor, by and with the advice and consent of the Senate. The
18members appointed shall include representatives of education,
19business, and the general public. One of the members so
20appointed shall be designated by the Governor at the time the
21appointment is made as the chairperson of the Board. The
22initial members of the Board may be appointed any time after
23the effective date of this amendatory Act of 1997. The regular
24term of each member of the Board shall be for 4 years from the
25third Monday of January of the year in which the term of the

 

 

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1member's appointment is to commence, except that of the 5
2initial members appointed to serve on the Board, the member who
3is appointed as the chairperson shall serve for a term that
4commences on the date of his or her appointment and expires on
5the third Monday of January, 2002, and the remaining 4 members,
6by lots drawn at the first meeting of the Board that is held
7after all 5 members are appointed, shall determine 2 of their
8number to serve for terms that commence on the date of their
9respective appointments and expire on the third Monday of
10January, 2001, and 2 of their number to serve for terms that
11commence on the date of their respective appointments and
12expire on the third Monday of January, 2000. All members
13appointed to serve on the Board shall serve until their
14respective successors are appointed and confirmed. Vacancies
15shall be filled in the same manner as original appointments. If
16a vacancy in membership occurs at a time when the Senate is not
17in session, the Governor shall make a temporary appointment
18until the next meeting of the Senate, when he or she shall
19appoint, by and with the advice and consent of the Senate, a
20person to fill that membership for the unexpired term. If the
21Senate is not in session when the initial appointments are
22made, those appointments shall be made as in the case of
23vacancies.
24    The Education Funding Advisory Board shall be deemed
25established, and the initial members appointed by the Governor
26to serve as members of the Board shall take office, on the date

 

 

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1that the Governor makes his or her appointment of the fifth
2initial member of the Board, whether those initial members are
3then serving pursuant to appointment and confirmation or
4pursuant to temporary appointments that are made by the
5Governor as in the case of vacancies.
6    The State Board of Education shall provide such staff
7assistance to the Education Funding Advisory Board as is
8reasonably required for the proper performance by the Board of
9its responsibilities.
10    For school years after the 2000-2001 school year through
11the 2013-2014 school year, the Education Funding Advisory
12Board, in consultation with the State Board of Education, shall
13make recommendations as provided in this subsection (M) to the
14General Assembly for the foundation level under subdivision
15(B)(3) of this Section and for the supplemental general State
16aid grant level under subsection (H) of this Section for
17districts with high concentrations of children from poverty.
18The recommended foundation level shall be determined based on a
19methodology which incorporates the basic education
20expenditures of low-spending schools exhibiting high academic
21performance. The Education Funding Advisory Board shall make
22such recommendations to the General Assembly on January 1 of
23odd numbered years, beginning January 1, 2001. After the
242013-2014 school year, the Education Funding Advisory Board
25shall make recommendations pursuant to subsection (k) of
26Section 18-8.15 of this Code.
 

 

 

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1(N) (Blank).
 
2(O) References.
3    (1) References in other laws to the various subdivisions of
4Section 18-8 as that Section existed before its repeal and
5replacement by this Section 18-8.05 shall be deemed to refer to
6the corresponding provisions of this Section 18-8.05, to the
7extent that those references remain applicable.
8    (2) References in other laws to State Chapter 1 funds shall
9be deemed to refer to the supplemental general State aid
10provided under subsection (H) of this Section.
 
11(P) Public Act 93-838 and Public Act 93-808 make inconsistent
12changes to this Section. Under Section 6 of the Statute on
13Statutes there is an irreconcilable conflict between Public Act
1493-808 and Public Act 93-838. Public Act 93-838, being the last
15acted upon, is controlling. The text of Public Act 93-838 is
16the law regardless of the text of Public Act 93-808.
17(Source: P.A. 96-45, eff. 7-15-09; 96-152, eff. 8-7-09; 96-300,
18eff. 8-11-09; 96-328, eff. 8-11-09; 96-640, eff. 8-24-09;
1996-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1480, eff.
2011-18-10; 97-339, eff. 8-12-11; 97-351, eff. 8-12-11; 97-742,
21eff. 6-30-13; 97-813, eff. 7-13-12.)
 
22    (105 ILCS 5/18-8.10)

 

 

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1    Sec. 18-8.10. Fast growth grants.
2    (a) If there has been an increase in a school district's
3student population over the most recent 2 school years of (i)
4over 1.5% in a district with over 10,000 pupils in average
5daily attendance (as defined in Section 18-8.05 or 18-8.15 of
6this Code) or (ii) over 7.5% in any other district, then the
7district is eligible for a grant under this Section, subject to
8appropriation.
9    (b) The State Board of Education shall determine a per
10pupil grant amount for each school district. The total grant
11amount for a district for any given school year shall equal the
12per pupil grant amount multiplied by the difference between the
13number of pupils in average daily attendance for the 2 most
14recent school years.
15    (c) Funds for grants under this Section must be
16appropriated to the State Board of Education in a separate line
17item for this purpose. If the amount appropriated in any fiscal
18year is insufficient to pay all grants for a school year, then
19the amount appropriated shall be prorated among eligible
20districts. As soon as possible after funds have been
21appropriated to the State Board of Education, the State Board
22of Education shall distribute the grants to eligible districts.
23    (d) If a school district intentionally reports incorrect
24average daily attendance numbers to receive a grant under this
25Section, then the district shall be denied State aid in the
26same manner as State aid is denied for intentional incorrect

 

 

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1reporting of average daily attendance numbers under Section
218-8.05 or 18-8.15 of this Code.
3(Source: P.A. 93-1042, eff. 10-8-04.)
 
4    (105 ILCS 5/18-8.15 new)
5    Sec. 18-8.15. Basis for apportionment of primary State
6financial aid to the common schools for the 2014-2015 and
7subsequent school years.
8    (a) General provisions.
9    (1) The provisions of this Section apply to the 2014-2015
10and subsequent school years. The system of primary State
11financial aid provided for in this Section is designed to
12ensure that, through a combination of State financial aid and
13required local resources, the financial support provided each
14pupil in attendance equals or exceeds a prescribed per pupil
15Foundation Level, with adjustments to the Foundation Level
16based on each school district's pupil characteristics. This
17formula approach imputes a level of per pupil Available Local
18Resources and provides for the basis to calculate a per pupil
19level of primary State financial aid that, when added to
20Available Local Resources, equals or exceeds the Foundation
21Level. The amount of per pupil primary State financial aid for
22school districts, in general, varies in inverse relation to
23Available Local Resources.
24    (2) To address increases and decreases in State funding
25resulting from this amendatory Act of the 98th General

 

 

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1Assembly, the amount of primary State aid provided to a school
2district shall be subject to adjustment as provided in
3subsection (h) of this Section. Any supplemental grants
4provided for school districts under subsection (h) of this
5Section shall be appropriated for distribution to school
6districts as part of the same line item in which the primary
7State financial aid of school districts is appropriated under
8this Section.
9    (3) To receive financial assistance under this Section,
10school districts are required to file claims with the State
11Board of Education, subject to the following requirements:
12        (A) Any school district that fails, for any given
13    school year, to maintain school as required by law or to
14    maintain a recognized school is not eligible to receive
15    financial assistance under this Section. In case of
16    non-recognition of one or more attendance centers in a
17    school district otherwise operating recognized schools,
18    the claim of the district shall be reduced in the
19    proportion that the enrollment in the attendance center or
20    centers bears to the enrollment in the school district. A
21    "recognized school" means any public school that meets the
22    standards established for recognition by the State Board of
23    Education. A school district or attendance center not
24    having recognition status at the end of a school term is
25    entitled to receive State aid payments due upon a legal
26    claim that was filed while it was recognized.

 

 

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1        (B) School district claims filed under this Section are
2    subject to Sections 18-9 and 18-12 of this Code, except as
3    otherwise provided in this Section.
4        (C) If a school district operates a full-year school
5    under Section 10-19.1 of this Code, the primary State aid
6    to the school district shall be determined by the State
7    Board of Education in accordance with this Section as near
8    as may be applicable.
9    (4) Subject to the requirements of subsection (j) of this
10Section, the school board of any district receiving any of the
11grants provided for in this Section may apply those funds to
12any fund so received for which that school board is authorized
13to make expenditures by law.
14    (5) As used in this Section, the following terms, when
15capitalized, shall have the meanings ascribed in this paragraph
16(5):
17    "Additional Weight" means a number added to 1.0 to
18calculate the District Weighted Average in accordance with
19subsection (b) of this Section. Each Additional Weight is
20calculated using the Weighting Factors and Weighting
21Percentages in paragraph (5) of subsection (b) of this Section.
22    "Adjusted Flat Grant Level" means, for each school district
23not subject to property tax extension limitations as imposed
24under the Property Tax Extension Limitation Law, the Flat Grant
25Level multiplied by the percentage, if any, of which the school
26district's combined tax rate for educational and operations and

 

 

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1maintenance purposes is of the maximum combined tax rates for
2educational and operations and maintenance purposes specified
3for that type of school district under Section 17-2 of this
4Code. For a school district subject to property tax extension
5limitations as imposed under the Property Tax Extension
6Limitation Law or a school district whose combined tax rate for
7educational and operations and maintenance purposes is at least
8the maximum combined tax rates for educational and operations
9and maintenance purposes specified for that type of school
10district under Section 17-2 of this Code, the Adjusted Flat
11Grant Level is equal to the Flat Grant Level.
12    "Advanced Standing Pupil" means a pupil in grades 9 through
1312, other than a pupil counted as a Career Pathway Completer,
14that has completed (i) one or more Advanced Placement courses
15and received a score of 3 or higher on an Advanced Placement
16examination or (ii) a course providing dual credit through an
17Illinois public community college or university in which the
18student was awarded at least 3 credit hours of postsecondary
19education credit.
20    "Alternative School" means a public school that is created
21and operated by a regional superintendent of schools and
22approved by the State Board of Education.
23    "Available Local Resources Per Pupil" means a computation
24of local financial support, calculated on the basis of Average
25Daily Attendance and derived as provided pursuant to subsection
26(d) of this Section.

 

 

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1    "Average Daily Attendance" or "ADA" means the count of
2pupils in attendance derived as provided pursuant to subsection
3(c) of this Section.
4    "Base Tax Year" means the property tax levy year used to
5calculate the Budget Year allocation of primary State aid.
6    "Base Tax Year's Extension" means the product of the
7equalized assessed valuation utilized by the county clerk in
8the Base Tax Year multiplied by the limiting rate as calculated
9by the county clerk and defined in the Property Tax Extension
10Limitation Law.
11    "Budget Year" means the school year for which primary State
12aid is calculated and awarded under subsection (e) of this
13Section.
14    "Career Pathway Completer" means a pupil that has graduated
15from high school and completed a series of connected education
16and training strategies and support services meeting the
17requirements of this definition and other requirements
18established by the State Board of Education that enable
19individuals to secure industry-relevant credentials and
20degrees and obtain employment within an occupational area and
21to advance to higher levels of future education and employment
22in that area. Career pathway programs must incorporate (i)
23rigorous academics that prepare students for success in
24community colleges and universities, as well as in
25apprenticeship and other postsecondary programs; (ii)
26career-based learning through a cluster of 3 or more courses

 

 

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1emphasizing the practical application of academic learning and
2preparing students for employment in high skill occupational
3areas; (iii) professional learning, via job shadowing,
4apprenticeships, internships, or other professional
5skill-building opportunities; (iv) support services that
6include academic and career counseling; and (v) opportunities
7for attainment of stackable, industry-relevant credentials and
8degrees.
9    "Corporate Personal Property Replacement Taxes" means
10funds paid to school districts pursuant to "An Act in relation
11to the abolition of ad valorem personal property tax and the
12replacement of revenues lost thereby, and amending and
13repealing certain Acts and parts of Acts in connection
14therewith", certified August 14, 1979, as amended (Public Act
1581-1st S.S.-1).
16    "District Weighted Average" means a figure used to derive a
17school district's Per-pupil Aid level, calculated pursuant to
18subsection (b) of this Section.
19    "Extension Limitation Equalized Assessed Valuation" means
20a figure calculated by the State Board of Education pursuant to
21paragraph (3) of subsection (h) of this Section for school
22districts subject to property tax extension limitations as
23imposed under the Property Tax Extension Limitation Law.
24    "Extension Limitation Ratio" means a numerical ratio in
25which the numerator is the Base Tax Year's Extension and the
26denominator is the Preceding Tax Year's Tax Extension.

 

 

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1    "Flat Grant Level" means a dollar amount equal to 3.5% of
2the Foundation Level.
3    "Foundation Level" means a prescribed level of per pupil
4financial support, as provided for in subsection (b) of this
5Section.
6    "Gifted Pupil" means a pupil in kindergarten through grade
78 receiving services through a program for gifted and talented
8children that has been approved by a school board and that is
9described on a school district's Internet website.
10    "Hold Harmless State Funding" means the amount of State
11funds allotted to a school district during the 2013-2014 school
12year pursuant to the following Sections of this Code, as
13calculated by the State Board of Education: Sections 18-8.05;
1414-7.02b; 14-7.03, but only with respect to reimbursement for
15children from foster family homes; 14-13.01, except for
16reimbursement of the cost of transportation pursuant to that
17Section; 14C-12; 18-4.3; and 29-5. For a school district
18organized under Article 34 of this Code, "Hold Harmless State
19Funding" also includes the funds allotted to the school
20district pursuant to Section 1D-1 of this Code attributable to
21funding programs authorized by the Sections of this Code listed
22in this definition.
23    "Laboratory School" means a public school that is created
24and operated by a public university and approved by the State
25Board of Education.
26    "Low-income Pupil" means a pupil from a household with a

 

 

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1household income level at or below 185% of the poverty
2guidelines updated periodically in the Federal Register by the
3U.S. Department of Health and Human Services under the
4authority of 42 U.S.C. 9902(2).
5    "Normal Pension Costs" means the present value of pension
6plan benefits and expenses allocated to a valuation year by an
7actuarial cost method for the Public School Teachers' Pension
8and Retirement Fund of Chicago.
9    "Operating Tax Rate" means all school district property
10taxes extended for all purposes, except bond and interest,
11summer school, rent, capital improvement, and vocational
12education building purposes.
13    "Per-pupil Aid" means a school district's Weighted
14Foundation Level less its Available Local Resources Per Pupil.
15    "Per-pupil Hold Harmless State Funding" means a school
16district's Hold Harmless State Funding, divided by the school
17district's Average Daily Attendance figure as calculated
18pursuant to subsection (F) of Section 18-8.05 of this Code
19during the 2013-2014 school year.
20    "Preceding Tax Year" means the property tax levy year
21immediately preceding the Base Tax Year.
22    "Preceding Tax Year's Tax Extension" means the product of
23the equalized assessed valuation utilized by the county clerk
24in the Preceding Tax Year multiplied by the Operating Tax Rate.
25    "Prior Year ADA" means the number of pupils within the
26count of pupils in attendance used for Average Daily Attendance

 

 

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1calculations for the school year immediately preceding the
2school year for which primary State aid is calculated and
3awarded under subsection (e) of this Section.
4    "PTELL PSA Adjustment" means the amount of primary State
5aid a school district would receive under subsection (e) of
6this Section if the Extension Limitation Equalized Assessed
7Valuation was used for calculating the school district's
8primary State aid for the Budget Year instead of the district's
9equalized assessed valuation as calculated pursuant to
10paragraphs (1) and (2) of subsection (g) of this Section.
11    "Pupil of Limited English-speaking Ability" means a child
12of limited English-speaking ability, as defined in Section
1314C-2 of this Code, participating in a program of transitional
14bilingual education or a transitional program of instruction
15meeting the requirements of Article 14C of this Code.
16    "Regular Transportation Eligible Pupil" means a pupil,
17other than a Vocational Transportation Pupil, meeting the
18fiscal year 2014 eligibility requirements for reimbursement of
19transportation costs under Section 29-5 of this Code.
20    "Special Education Summer School Pupil" means a child with
21disabilities participating in a summer school program meeting
22the fiscal year 2014 eligibility requirements for a summer
23school grant under Section 18-4.3 of this Code.
24    "Total Primary State Aid" means the amount of primary State
25aid allotted to a school district pursuant to subsection (e) of
26this Section and any supplemental grants allotted pursuant to

 

 

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1paragraphs (2) and (3) of subsection (h) of this Section.
2    "Vocational Transportation Pupil" means a pupil
3transported to an area vocational school or another school
4district's vocational program meeting the fiscal year 2014
5eligibility requirements for reimbursement of transportation
6costs under Section 29-5 of this Code.
7    "Weighted Foundation Level" means the Foundation Level
8multiplied by the District Weighted Average.
9    "Weighted Foundation Level Budget" means, for a particular
10school district, the Weighted Foundation Level multiplied by
11the ADA.
12    "Weighting Factor" means, for each Additional Weight
13classification in paragraph (5) of subsection (b) of this
14Section, the amount multiplied by the Weighting Percentage to
15calculate the Additional Weight figure.
16    "Weighting Percentage" means, for each Additional Weight
17classification in paragraph (5) of subsection (b) of this
18Section, the amount multiplied by the Weighting Factor to
19calculate the Additional Weight figure.
20    (b) Foundation Level; weighting for district pupil
21characteristics.
22    (1) The Foundation Level is a figure established by this
23State representing the minimum level of per pupil financial
24support that should be available to provide for the basic
25education of each pupil in Average Daily Attendance in a public
26school in this State. Then, for each school district, the

 

 

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1Foundation Level is weighted in accordance with the Additional
2Weights set forth in paragraph (5) of this subsection (b) to
3account for the pupil characteristics within that school
4district. As set forth in this Section, each school district is
5assumed to exert a sufficient local taxing effort such that, in
6combination with the aggregate of primary State financial aid
7provided the district, an aggregate of State and local
8resources are available to meet the basic education needs of
9pupils in the district.
10    (2) Subject to paragraph (3) of this subsection (b), for
11the 2014-2015 school year and each school year thereafter, the
12Foundation Level of support is $6,119 or such greater amount as
13may be established by law by the General Assembly.
14    (3) If the appropriation in any fiscal year for primary
15State aid, including supplemental grants pursuant to
16subsection (h) of this Section, is insufficient to pay the
17amounts required under the calculations set forth in this
18Section, then the State Board of Education shall adjust the
19Foundation Level to an amount so that the appropriation is
20sufficient to pay all primary State aid and supplemental grants
21required by this Section.
22    (4) For each school district, the Foundation Level shall be
23adjusted by multiplying the Foundation Level by a District
24Weighted Average figure, resulting in the school district's
25Weighted Foundation Level. The District Weighted Average
26figure for a particular school district shall be a number equal

 

 

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1to 1.0 plus each of the Additional Weights described in
2paragraph (5) of this subsection (b) applicable to that
3district. For each Additional Weight, the figure included in
4the District Weighted Average is the product of the Weighting
5Factor multiplied by the Weighting Percentage, as both are
6specified in paragraph (5) of this subsection (b). For each
7school district, the State Board of Education shall publicly
8report the district's District Weighted Average, Weighted
9Foundation Level, Additional Weights, amount of the Weighted
10Foundation Level Budget attributable to each Additional
11Weight, and amount of primary State aid received attributable
12to each Additional Weight.
13    (5) Additional Weights:
14        (A) Pupils of Limited English-speaking Ability:
15            (i) Weighting Factor of 0.20; and
16            (ii) Weighting Percentage equal to the Prior Year
17        ADA of Pupils of Limited English-speaking Ability,
18        divided by the Prior Year ADA for all pupils.
19        (B) Low-Income Pupils: The higher of the weights
20    determined through the following 2 methods, provided that
21    the Additional Weight shall not exceed 0.75:
22            (i) Regular low-income method:
23                (I) Weighting Factor of 0.25; and
24                (II) Weighting Percentage equal to the Prior
25            Year ADA of Low-income Pupils, divided by the Prior
26            Year ADA for all pupils.

 

 

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1            (ii) Low-income concentration method:
2                (I) Weighting Factor of 0.90 multiplied by the
3            Weighting Percentage for Low-income Pupils as
4            calculated in accordance with the regular
5            low-income method; and
6                (II) Weighting Percentage equal to the
7            Weighting Percentage for Low-income Pupils as
8            calculated in accordance with the regular
9            low-income method.
10        (C) Children with disabilities:
11            (i) Weighting Factor of 1.0; and
12            (ii) Weighting Percentage of 13.8% in the
13        2014-2015 and 2015-2016 school years and, in
14        subsequent school years, a Weighting Percentage
15        periodically established by the State Board of
16        Education, but not less frequently than once every 5
17        years, representative of the statewide average
18        population of students with disabilities in public
19        education.
20        (D) Special Education Summer School Pupils:
21            (i) Weighting Factor of 0.03; and
22            (ii) Weighting Percentage equal to the Prior Year
23        ADA of Special Education Summer School Pupils, divided
24        by the Prior Year ADA for all pupils.
25        (E) Gifted Pupils:
26            (i) Weighting Factor of 0.01; and

 

 

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1            (ii) Weighting Percentage equal to the Prior Year
2        ADA of Gifted Pupils, divided by the Prior Year ADA for
3        all pupils, provided that the Prior Year ADA of Gifted
4        Pupils used for such calculation shall not exceed 5% of
5        the Prior Year ADA for pupils in kindergarten through
6        grade 8.
7        (F) Regular Transportation Eligible Pupils:
8            (i) Weighting Factor of 0.06 for school districts
9        in the most dense quintile of school districts in this
10        State; for purposes of this subdivision (F), density
11        shall be calculated by the State Board of Education
12        based on the Prior Year ADA for all pupils in the
13        school district per square mile, with separate
14        quintile calculations for different school district
15        organizational types;
16            (ii) Weighting Factor 0.07 for school districts in
17        the next to most dense quintile of school districts in
18        this State;
19            (iii) Weighting Factor of 0.08 for school
20        districts in the median density quintile of school
21        districts in this State;
22            (iv) Weighting Factor of 0.09 for school districts
23        in the next to least dense quintile of school districts
24        in this State;
25            (v) Weighting Factor of 0.10 for school districts
26        in the least dense quintile of school districts in this

 

 

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1        State; and
2            (vi) Weighting Percentage equal to the Prior Year
3        ADA of Regular Transportation Eligible Pupils, divided
4        by the Prior Year ADA for all pupils.
5        (G) Extraordinary Transportation Eligible Pupils.
6    Notwithstanding the Weighting Factors in subdivision (F)
7    of this paragraph (5), the State Board of Education shall
8    establish by administrative rule, for the 2015-2016 school
9    year and subsequent school years, a Weighting Factor or
10    Factors, not to exceed 0.12, for school districts with high
11    transportation costs resulting from school district
12    reorganizations or consolidations or students who live a
13    significant distance from their assigned attendance
14    center. The State Board of Education shall also establish
15    the Weighting Percentage by administrative rule to account
16    for the percentage of students receiving such
17    transportation services.
18        (H) Vocational Transportation Pupils:
19            (i) Weighting Factor of 0.12; and
20            (ii) Weighting Percentage equal to the Prior Year
21        ADA of Vocational Transportation Pupils, divided by
22        the Prior Year ADA for all pupils.
23        (I) In the 2016-2017 school year and subsequent school
24    years, Advanced Standing Pupils and Career Pathway
25    Completers:
26            (i) For Advanced Standing Pupils:

 

 

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1                (I) Weighting Factor of 0.02; and
2                (II) Weighting Percentage equal to the Prior
3            Year ADA of Advanced Standing Pupils, divided by
4            the Prior Year ADA for all pupils.
5            (ii) For Career Pathway Completers:
6                (I) Weighting Factor of 0.03; and
7                (II) Weighting Percentage equal to the Prior
8            Year ADA of Career Pathway Completers, divided by
9            the Prior Year ADA for all pupils.
10    (c) Average Daily Attendance.
11    (1) For purposes of calculating primary State aid pursuant
12to subsection (e) of this Section, an Average Daily Attendance
13figure shall be utilized. The Average Daily Attendance figure
14for formula calculation purposes shall be the monthly average
15of the total number of pupils in attendance for each school
16district, as further averaged for the best 3 months of pupil
17attendance for each school district. In compiling the figures
18for the number of pupils in attendance, school districts and
19the State Board of Education shall, for purposes of primary
20State aid funding, conform attendance figures to the
21requirements of subsection (f) of this Section.
22    (2) The Average Daily Attendance figures utilized in
23subsection (e) of this Section shall be the requisite
24attendance data for the school year immediately preceding the
25school year for which primary State aid is being calculated or
26the average of the attendance data for the 3 preceding school

 

 

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1years, whichever is greater. The Average Daily Attendance
2figures utilized for subsection (b) of this Section shall be
3the requisite attendance data for the school year immediately
4preceding the school year for which primary State aid is being
5calculated.
6    (d) Available Local Resources Per Pupil.
7    (1) For purposes of calculating primary State aid pursuant
8to subsection (e) of this Section, a representation of
9Available Local Resources Per Pupil, as that term is defined
10and determined in this subsection (d), shall be utilized.
11Available Local Resources Per Pupil shall include a calculated
12dollar amount representing school district revenues from local
13property taxes and from Corporate Personal Property
14Replacement Taxes, expressed on the basis of pupils in Average
15Daily Attendance. For a school district organized under Article
1634 of this Code, calculation of Available Local Resources shall
17exclude any amounts actually paid by the board of education
18into a Public School Teachers' Pension and Retirement Fund
19created pursuant to Article 17 of the Illinois Pension Code for
20Normal Pension Costs during the fiscal year immediately
21preceding the fiscal year for which primary State aid is being
22calculated.
23    (2) In determining a school district's revenue from local
24property taxes, the State Board of Education shall utilize the
25equalized assessed valuation of all taxable property of each
26school district as of September 30 of the previous year. The

 

 

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1equalized assessed valuation utilized shall be obtained and
2determined as provided in subsection (g) of this Section.
3    (3) For school districts maintaining grades kindergarten
4through 12, local property tax revenues per pupil shall be
5calculated as the product of the applicable equalized assessed
6valuation for the district multiplied by 3.07%, and divided by
7the district's Average Daily Attendance figure. For school
8districts maintaining grades kindergarten through 8, local
9property tax revenues per pupil shall be calculated as the
10product of the applicable equalized assessed valuation for the
11district multiplied by 2.36%, and divided by the district's
12Average Daily Attendance figure. For school districts
13maintaining grades 9 through 12, local property tax revenues
14per pupil shall be the applicable equalized assessed valuation
15of the district multiplied by 1.10%, and divided by the
16district's Average Daily Attendance figure.
17    For partial elementary unit districts created pursuant to
18Article 11E of this Code, local property tax revenues per pupil
19shall be calculated as the product of the equalized assessed
20valuation for property within the partial elementary unit
21district for elementary purposes, as defined in Article 11E of
22this Code, multiplied by 2.10% and divided by the district's
23Average Daily Attendance figure, plus the product of the
24equalized assessed valuation for property within the partial
25elementary unit district for high school purposes, as defined
26in Article 11E of this Code, multiplied by 0.97% and divided by

 

 

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1the district's Average Daily Attendance figure.
2    (4) The Corporate Personal Property Replacement Taxes paid
3to each school district during the calendar year one year
4before the calendar year in which a school year begins, divided
5by the Average Daily Attendance figure for that district, shall
6be added to the local property tax revenues per pupil as
7derived by the application of paragraph (3) of this subsection
8(d). The sum of these per pupil figures for each school
9district shall constitute Available Local Resources Per Pupil
10as that term is utilized in subsection (e) of this Section in
11the calculation of primary State aid.
12    (e) Computation of primary State aid.
13    (1) For each school year, the amount of primary State aid
14allotted to a school district shall be computed by the State
15Board of Education as provided in this subsection (e).
16    (2) Subject to paragraph (4) of this subsection (e), for
17any school district for which the Per-pupil Aid is more than
18the Flat Grant Level, primary State aid for that district shall
19be in an amount equal to its Per-pupil Aid multiplied by its
20Average Daily Attendance figure.
21    (3) Subject to paragraph (4) of this subsection (e), for
22any school district for which the Per-pupil Aid is equal to or
23less than the Flat Grant Level, primary State aid for that
24district shall be in an amount equal to the Adjusted Flat Grant
25Level multiplied by the district's Average Daily Attendance
26figure.

 

 

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1    (4) From financial assistance provided to school districts
2under this Section, the State Board of Education shall withhold
3the following amounts for the following purposes:
4        (A) For each school district with an Additional Weight
5    for Pupils of Limited English-speaking Ability, the State
6    Board of Education shall withhold an amount not exceeding
7    one and one-half percent of the district's Weighted
8    Foundation Level Budget attributable to Pupils of Limited
9    English-speaking Ability for (i) State Board of Education
10    staff for administration and (ii) contractual services by a
11    not-for-profit entity for technical assistance,
12    professional development, and other support to school
13    districts and educators for services for these pupils. To
14    be eligible to receive the contract under clause (ii) of
15    this subdivision (A), the not-for-profit entity must have
16    experience providing such services in a school district
17    having a population exceeding 500,000; one or more school
18    districts in any of the counties of Lake, McHenry, DuPage,
19    Kane, and Will; and one or more school districts elsewhere
20    in this State.
21        (B) The State Board of Education shall withhold an
22    amount not exceeding one-half percent of each school
23    district's Weighted Foundation Level Budget attributable
24    to children with disabilities and Special Education Summer
25    School Pupils for State Board of Education staff and
26    contractual services for administration, professional

 

 

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1    development, and support to school districts for services
2    for children with disabilities. The State Board of
3    Education shall use a portion of the withheld amounts for
4    developing or supporting electronic individualized
5    educational programs.
6    (f) Compilation of Average Daily Attendance.
7    (1) Each school district shall, on or before July 1 of each
8year, submit to the State Board of Education, in a manner
9prescribed by the State Board of Education, attendance figures
10for the school year that began in the preceding calendar year.
11The attendance information so transmitted shall identify the
12Average Daily Attendance figures for each month of the school
13year. School districts shall calculate Average Daily
14Attendance as provided in subdivisions (A), (B), and (C) of
15this paragraph (1).
16        (A) In districts that do not hold year-round classes,
17    days of attendance in August shall be added to the month of
18    September and any days of attendance in June shall be added
19    to the month of May.
20        (B) In districts in which all buildings hold year-round
21    classes, days of attendance in July and August shall be
22    added to the month of September and any days of attendance
23    in June shall be added to the month of May.
24        (C) In districts in which some buildings, but not all,
25    hold year-round classes, for the non-year-round buildings,
26    days of attendance in August shall be added to the month of

 

 

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1    September and any days of attendance in June shall be added
2    to the month of May. The Average Daily Attendance for the
3    year-round buildings shall be computed as provided in
4    subdivision (B) of this paragraph (1). To calculate the
5    Average Daily Attendance for the district, the Average
6    Daily Attendance for the year-round buildings shall be
7    multiplied by the days in session for the non-year-round
8    buildings for each month and added to the monthly
9    attendance of the non-year-round buildings.
10    (2) For the 2014-2015 school year, days of attendance by
11pupils shall be counted in accordance with paragraphs (1) and
12(2) of subsection (F) of Section 18-8.05 of this Code. For the
132015-2016 and subsequent school years, days of attendance by
14pupils shall be counted in accordance with administrative rules
15adopted by the State Board of Education that address, without
16limitation, days of partial attendance, days utilized for
17in-service training and parent-teacher conferences,
18partial-day kindergarten, hospitalized or homebound students,
19days when assessments are administered, remote educational
20programs, virtual learning, work-based learning, dual credit
21programs, and competency-based education. Such rules shall be
22adopted by the State Board of Education by no later than April
231, 2015.
24    (g) Equalized assessed valuation data.
25    (1) For purposes of the calculation of Available Local
26Resources Per Pupil required pursuant to subsection (d) of this

 

 

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1Section, the State Board of Education shall secure from the
2Department of Revenue the value as equalized or assessed by the
3Department of Revenue of all taxable property of every school
4district, together with (i) the applicable tax rate used in
5extending taxes for the funds of the district as of September
630 of the previous year and (ii) the limiting rate for all
7school districts subject to property tax extension limitations
8as imposed under the Property Tax Extension Limitation Law.
9    The Department of Revenue shall add to the equalized
10assessed value of all taxable property of each school district
11situated entirely or partially within a county that is or was
12subject to the provisions of Section 15-176 or 15-177 of the
13Property Tax Code (A) an amount equal to the total amount by
14which the homestead exemption allowed under Section 15-176 or
1515-177 of the Property Tax Code for real property situated in
16that school district exceeds the total amount that would have
17been allowed in that school district if the maximum reduction
18under Section 15-176 was $5,000 and (B) an amount equal to the
19aggregate amount for the taxable year of all additional
20exemptions under Section 15-175 of the Property Tax Code for
21owners with a household income of $30,000 or less. The county
22clerk of any county that is or was subject to the provisions of
23Section 15-176 or 15-177 of the Property Tax Code shall
24annually calculate and certify to the Department of Revenue for
25each school district all homestead exemption amounts under
26Section 15-176 or 15-177 of the Property Tax Code and all

 

 

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1amounts of additional exemptions under Section 15-175 of the
2Property Tax Code for owners with a household income of $30,000
3or less. It is the intent of this paragraph that if the general
4homestead exemption for a parcel of property is determined
5under Section 15-176 or 15-177 of the Property Tax Code rather
6than Section 15-175, then the calculation of Available Local
7Resources Per Pupil shall not be affected by the difference, if
8any, between the amount of the general homestead exemption
9allowed for that parcel of property under Section 15-176 or
1015-177 of the Property Tax Code and the amount that would have
11been allowed had the general homestead exemption for that
12parcel of property been determined under Section 15-175 of the
13Property Tax Code. It is further the intent of this paragraph
14that if additional exemptions are allowed under Section 15-175
15of the Property Tax Code for owners with a household income of
16less than $30,000, then the calculation of Available Local
17Resources Per Pupil shall not be affected by the difference, if
18any, because of those additional exemptions.
19    This equalized assessed valuation, as adjusted further by
20the requirements of this subsection (g), shall be utilized in
21the calculation of Available Local Resources Per Pupil.
22    (2) The equalized assessed valuation in paragraph (1) of
23this subsection (g) shall be adjusted, as applicable, in the
24following manner:
25        (A) For the purposes of calculating primary State aid
26    under this Section, with respect to any part of a school

 

 

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1    district within a redevelopment project area in respect to
2    which a municipality has adopted tax increment allocation
3    financing pursuant to the Tax Increment Allocation
4    Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
5    of the Illinois Municipal Code, or the Industrial Jobs
6    Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
7    Illinois Municipal Code, no part of the current equalized
8    assessed valuation of real property located in any such
9    project area that is attributable to an increase above the
10    total initial equalized assessed valuation of such
11    property shall be used as part of the equalized assessed
12    valuation of the district, until such time as all
13    redevelopment project costs have been paid, as provided in
14    Section 11-74.4-8 of the Tax Increment Allocation
15    Redevelopment Act or in Section 11-74.6-35 of the
16    Industrial Jobs Recovery Law. For the purpose of the
17    equalized assessed valuation of the district, the total
18    initial equalized assessed valuation or the current
19    equalized assessed valuation, whichever is lower, shall be
20    used until such time as all redevelopment project costs
21    have been paid.
22        (B) The real property equalized assessed valuation for
23    a school district shall be adjusted by subtracting from the
24    real property value as equalized or assessed by the
25    Department of Revenue for the district an amount computed
26    by dividing the amount of any abatement of taxes under

 

 

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1    Section 18-170 of the Property Tax Code by 3.07% for a
2    district maintaining grades kindergarten through 12, by
3    2.36% for a district maintaining grades kindergarten
4    through 8, or by 1.10% for a district maintaining grades 9
5    through 12 and adjusted by an amount computed by dividing
6    the amount of any abatement of taxes under subsection (a)
7    of Section 18-165 of the Property Tax Code by the same
8    percentage rates for district type as specified in this
9    subdivision (B).
10    (3) If a school district's boundaries span multiple
11counties, then the Department of Revenue shall send to the
12State Board of Education, for the purpose of calculating
13primary State aid, the limiting rate and individual rates by
14purpose for the county that contains the majority of the school
15district's Equalized Assessed Valuation.
16    (h) Hold harmless and PTELL adjustments.
17    (1) The Total Primary State Aid a school district is
18allotted pursuant to this Section shall be subject to
19adjustment as provided in this subsection (h). Any supplemental
20grants allotted to school districts pursuant to this subsection
21(h) shall be paid in conjunction with the school district's
22payments of primary State aid. Any decreases to primary State
23aid pursuant to paragraph (4) of this subsection (h) shall be
24applied by the State Board of Education so as to reduce amounts
25otherwise payable pursuant to this Section.
26    (2) Notwithstanding anything to the contrary contained in

 

 

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1this Section, if, for any school year, a school district's
2per-pupil primary State aid allotment is less than its
3Per-pupil Hold Harmless State Funding by an amount exceeding
4$1,000, then the amount of primary State aid allotted to the
5school district shall be increased by a supplemental grant
6pursuant to this paragraph (2). The primary State aid
7supplemental grant shall equal an amount sufficient to raise
8the school district's per-pupil primary State aid allotment to
9an amount that is $1,000 less than the school district's
10Per-pupil Hold Harmless State Funding. For purposes of this
11paragraph (2), a school district's per-pupil primary State aid
12allotment shall be calculated by the State Board of Education
13as the sum of the primary State aid allotted to the school
14district pursuant to subsection (e) of this Section and any
15supplemental grants pursuant to this paragraph (2) and
16paragraph (3) of this subsection (h), divided by the school
17district's Average Daily Attendance figure.
18    (3) If a school district is subject to property tax
19extension limitations as imposed under the Property Tax
20Extension Limitation Law, a school district shall receive a
21supplemental grant pursuant to this paragraph (3) to account
22for the difference between its Extension Limitation Equalized
23Assessed Valuation and the school district's equalized
24assessed valuation as calculated under paragraphs (1) and (2)
25of subsection (g) of this Section. The State Board of Education
26shall calculate the Extension Limitation Equalized Assessed

 

 

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1Valuation of each district subject to property tax extension
2limitations as imposed under the Property Tax Extension
3Limitation Law. Except as otherwise provided in this paragraph
4(3) for a school district that has approved or does approve an
5increase in its limiting rate, the "Extension Limitation
6Equalized Assessed Valuation" of a school district as
7calculated by the State Board of Education shall be equal to
8the product of the equalized assessed valuation last used in
9the calculation of general State aid under Section 18-8.05 of
10this Code or primary State aid under this Section and the
11district's Extension Limitation Ratio. If a school district has
12approved or does approve an increase in its limiting rate,
13pursuant to Section 18-190 of the Property Tax Code, affecting
14the Base Tax Year, the Extension Limitation Equalized Assessed
15Valuation of the school district, as calculated by the State
16Board of Education, shall be equal to the product of the
17equalized assessed valuation last used in the calculation of
18general State aid pursuant to Section 18-8.05 of this Code or
19primary State aid pursuant to this Section times an amount
20equal to one plus the percentage increase, if any, in the
21Consumer Price Index for all Urban Consumers for all items
22published by the United States Department of Labor for the
2312-month calendar year preceding the Base Tax Year, plus the
24equalized assessed valuation of new property, annexed
25property, and recovered tax increment value and minus the
26equalized assessed valuation of disconnected property. New

 

 

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1property and recovered tax increment value shall have the
2meanings set forth in the Property Tax Extension Limitation
3Law. Notwithstanding anything to the contrary contained in this
4paragraph (3), a school district's Extension Limitation
5Equalized Assessed Valuation shall not be less than 80% of the
6district's equalized assessed valuation as calculated pursuant
7to paragraphs (1) and (2) of subsection (g) of this Section.
8    If the Extension Limitation Equalized Assessed Valuation
9of a school district as calculated under this paragraph (3) is
10less than the district's equalized assessed valuation as
11calculated pursuant to paragraphs (1) and (2) of subsection (g)
12of this Section, then the school district shall receive a
13supplemental grant equal to its PTELL PSA Adjustment as
14calculated by the State Board of Education.
15    (4) Notwithstanding anything to the contrary contained in
16this Section, the Total Primary State Aid allotted to a school
17district for the 2014-2015 through the 2016-2017 school years
18shall be adjusted as follows:
19        (A) If, for the 2014-2015 school year, the Total
20    Primary State Aid is less than Hold Harmless State Funding,
21    then the amount of primary State aid allotted to the school
22    district shall be increased by a supplemental grant in the
23    amount of 75% of the difference between Hold Harmless State
24    Funding and Total Primary State Aid. If, for the 2015-2016
25    school year, the Total Primary State Aid remains less than
26    Hold Harmless State Funding, then the amount of primary

 

 

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1    State aid allotted to the school district shall be
2    increased by a supplemental grant in the amount of 50% of
3    the difference between Hold Harmless State Funding and
4    Total Primary State Aid. If, for the 2016-2017 school year,
5    the Total Primary State Aid remains less than Hold Harmless
6    State Funding, then the amount of primary State aid
7    allotted to the school district shall be increased by a
8    supplemental grant in the amount of 25% of the difference
9    between Hold Harmless State Funding and Total Primary State
10    Aid.
11        (B) If, for the 2014-2015 school year, the Total
12    Primary State Aid is more than Hold Harmless State Funding,
13    then the amount of primary State aid allotted to the school
14    district shall be decreased by 75% of the difference
15    between Hold Harmless State Funding and Total Primary State
16    Aid. If, for the 2015-2016 school year, the Total Primary
17    State Aid is more than Hold Harmless State Funding, then
18    the amount of primary State aid allotted to the school
19    district shall be decreased by 50% of the difference
20    between Hold Harmless State Funding and Total Primary State
21    Aid. If, for the 2016-2017 school year, the Total Primary
22    State Aid is more than Hold Harmless State Funding, then
23    the amount of primary State aid allotted to the school
24    district shall be decreased by 25% of the difference
25    between Hold Harmless State Funding and Total Primary State
26    Aid.

 

 

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1    (i) Grants to Laboratory and Alternative Schools. In
2calculating the amount to be paid to the governing board of a
3public university that operates a Laboratory School or to any
4Alternative School that is operated by a regional
5superintendent of schools, the State Board of Education shall
6require, by rule, such reporting requirements as it deems
7necessary. Each Laboratory and Alternative School shall file,
8on forms provided by the State Superintendent of Education, an
9annual State aid claim that states the Average Daily Attendance
10of the school's students by month. The best 3 months' Average
11Daily Attendance shall be computed for each school. The primary
12State aid entitlement shall be computed by multiplying the
13applicable Average Daily Attendance by 105% of the Foundation
14Level.
15    (j) District improvement plans, attendance center
16distributions, and special education maintenance of State
17financial support.
18    (1) Each school district required to submit a district
19improvement plan under Section 2-3.25d of this Code shall
20demonstrate, in accordance with requirements adopted by the
21State Board of Education, how local and State funds will be
22used for strategies that give priority to meeting the
23educational needs of Low-income Pupils, Pupils of Limited
24English-speaking Ability, and children with disabilities. For
25each such category of pupils, budget information submitted with
26the plan must demonstrate that the combined amount of local

 

 

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1funds and primary State aid funds budgeted for strategies that
2give priority to that category of pupils is proportionate or
3higher, on either an aggregate or per-pupil basis, to the
4proportion of the Weighted Foundation Level Budget
5attributable to that category of pupils. The State Board of
6Education may adopt exceptions to the requirement for
7proportionate or higher budgeting to address small pupil
8subgroup populations, changes in pupil enrollment, or
9extraordinary expenditures required for any school year. The
10State Board of Education may also adopt exceptions to the
11requirement for proportionate or higher budgeting for any
12school district to implement district-wide or school-wide
13strategies if the school district or school has a high
14percentage of pupils in any particular category relative to
15statewide averages and the district can demonstrate in its plan
16that a district-wide or school-wide strategy is more likely to
17achieve the district's educational objectives for a category of
18pupils than a targeted strategy. If a school district fails to
19adhere to proportionate or higher budgeting in accordance with
20this paragraph (1), the school district must take corrective
21action in accordance with requirements adopted by the State
22Board of Education. If corrective action is not taken, the
23State Board of Education shall deduct, from primary State aid
24payments otherwise due the district, an amount equal to the
25amount by which the district failed to adhere to the
26proportionate or higher requirement.

 

 

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1    (2) School districts with an Average Daily Attendance of
250,000 or more shall be required to distribute, from funds
3available pursuant to this Section, no less than $261,000,000
4in accordance with the following requirements:
5        (A) The required amounts shall be distributed to the
6    attendance centers within the district in proportion to the
7    number of Low-income Pupils enrolled at each attendance
8    center during the current school year.
9        (B) The distribution of these portions of primary State
10    aid among attendance centers according to these
11    requirements shall not be compensated for or contravened by
12    adjustments of the total of other funds appropriated to any
13    attendance centers, and the board of education shall
14    utilize funding from one or several sources in order to
15    fully implement this paragraph (2) annually prior to the
16    opening of school.
17        (C) Each attendance center shall be provided, by the
18    school district, with a distribution of other funds to
19    which the attendance center is entitled under law in order
20    that the primary State aid provided by application of this
21    paragraph (2) supplements rather than supplants the other
22    funds provided by the school district to the attendance
23    centers.
24        (D) Funds received by an attendance center pursuant to
25    this paragraph (2) shall be used by the attendance center
26    at the discretion of the principal and local school council

 

 

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1    for programs to improve educational opportunities at
2    qualifying schools through the following programs and
3    services: early childhood education, reduced class size or
4    improved adult to student classroom ratios, enrichment
5    programs, remedial assistance, attendance improvement, and
6    other educationally beneficial expenditures that
7    supplement the regular and basic programs as determined by
8    the State Board of Education. Funds provided shall not be
9    expended for any political or lobbying purposes as defined
10    by rule of the State Board.
11        (E) Each district subject to the provisions of this
12    paragraph (2) shall submit an acceptable plan to meet the
13    educational needs of disadvantaged children, in compliance
14    with the requirements of this subdivision (E), to the State
15    Board of Education prior to July 15 of each year. This plan
16    shall be consistent with the decisions of local school
17    councils concerning the school expenditure plans developed
18    in accordance with subdivision 4 of Section 34-2.3 of this
19    Code. The State Board shall approve or reject the plan
20    within 60 days after its submission. If the plan is
21    rejected, the district shall give written notice of an
22    intent to modify the plan within 15 days after the
23    notification of rejection and then submit a modified plan
24    within 30 days after the date of the written notice of an
25    intent to modify. Districts may amend approved plans
26    pursuant to rules adopted by the State Board of Education.

 

 

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1        Upon notification by the State Board of Education that
2    the district has not submitted a plan prior to July 15 or a
3    modified plan within the time period specified in this
4    subdivision (E), the State aid funds affected by that plan
5    or modified plan shall be withheld by the State Board of
6    Education until a plan or modified plan is submitted.
7        If the district fails to distribute State aid to
8    attendance centers in accordance with an approved plan, the
9    plan for the following year shall allocate funds, in
10    addition to the funds otherwise required by this paragraph
11    (2), to those attendance centers that were underfunded
12    during the previous year in amounts equal to such
13    underfunding.
14    For purposes of determining compliance with this paragraph
15(2) in relation to the requirements of attendance center
16funding, each district subject to the provisions of this
17paragraph (2) shall submit as a separate document, on or before
18December 1 of each year, a report of expenditure data for the
19prior year in addition to any modification of its current plan.
20If it is determined that there has been a failure to comply
21with the expenditure provisions of this paragraph (2) regarding
22contravention or supplanting, the State Superintendent of
23Education shall, within 60 days after receipt of the report,
24notify the district and any affected local school council. The
25district shall, within 45 days after receipt of that
26notification, inform the State Superintendent of Education of

 

 

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1the remedial or corrective action to be taken, whether by
2amendment of the current plan, if feasible, or by adjustment in
3the plan for the following year. Failure to provide the
4expenditure report or the notification of remedial or
5corrective action in a timely manner shall result in a
6withholding of the affected funds.
7    The State Board of Education shall adopt rules to implement
8the provisions of this paragraph (2). No funds shall be
9released under this paragraph (2) to any district that has not
10submitted a plan that has been approved by the State Board of
11Education.
12    (3) Each fiscal year, the State Board of Education shall
13calculate for each school district an amount of its Total
14Primary State Aid funding that shall be deemed attributable to
15the provision of special educational facilities and services,
16as defined in Section 14-1.08 of this Code, in a manner that
17ensures compliance with maintenance of State financial support
18requirements under the federal Individuals with Disabilities
19Education Act. A school district must use such funds only for
20the provision of special educational facilities and services,
21as defined in Section 14-1.08 of this Code, and must comply
22with any expenditure verification procedures adopted by the
23State Board of Education.
24    (k) Education Funding Advisory Board. For the 2017-2018 and
25subsequent school years, the Education Funding Advisory Board
26established pursuant to subsection (M) of Section 18-8.05 of

 

 

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1this Code, in consultation with the State Board of Education,
2shall make recommendations as provided in this subsection (k)
3to the General Assembly for the Foundation Level under
4paragraph (2) of subsection (b) of this Section. The
5recommended foundation level shall be determined based on
6consideration of 2 separate methodologies:
7        (1) a methodology that incorporates the basic
8    education expenditures of low-spending schools exhibiting
9    high academic performance; and
10        (2) an evidence-based methodology that identifies an
11    educational program that includes research-based
12    educational strategies and uses the cost of that program to
13    determine the cost of education.
14    The Education Funding Advisory Board shall make its
15recommendations to the General Assembly on or before January 31
16of odd-numbered years, beginning on or before January 31, 2017.
17    (l) Primary State Aid Review Committee. The State
18Superintendent of Education shall appoint a committee of no
19more than 20 members, consisting of school administrators,
20school business officials, school financing experts, parents,
21teachers, and concerned citizens to review the administration
22of primary State aid in this State and the impact on school
23district finances of this amendatory Act of the 98th General
24Assembly. The Committee shall make periodic recommendations to
25the State Superintendent of Education and the General Assembly
26concerning the administration of primary State aid, any

 

 

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1administrative rules needed for the implementation of this
2Section, and suggestions for amending this Section or other
3Sections of this Code to achieve a school funding system that
4provides adequate, equitable, transparent, and accountable
5distribution of funds to school districts that will prepare
6students for success after high school. By no later than
7January 31, 2017 and January 31 of each odd-numbered year
8thereafter, the Committee shall submit a report with
9recommendations to the State Superintendent and General
10Assembly. The report submitted by no later than January 31,
112017 must address the following:
12        (1) whether to relate funding through the primary State
13    aid formula to district accountability or accreditation
14    status;
15        (2) whether to include funding for State career and
16    technical education and transportation for children
17    described in Section 14-1.02 of this Code within the
18    primary State aid formula;
19        (3) whether to account for municipal impact fees,
20    distributions from a special tax allocation fund
21    established in relation to tax increment allocation
22    financing, available fund balances maintained by a
23    financial institution, and other similar funds received or
24    maintained by school districts in the calculation of
25    Available Local Resources Per Pupil;
26        (4) whether regionalization factors should be

 

 

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1    incorporated into the primary State aid formula; and
2        (5) methods for reducing State liability for PTELL PSA
3    Adjustments.
4    (m) Adequacy study. Subject to the availability of funding
5through appropriations made specifically for this purpose, by
6no later than January 31, 2019, the State Board of Education
7shall contract with a public or private entity to conduct a
8study of the adequacy of education funding in this State. At a
9minimum, the adequacy study shall:
10        (1) identify a base funding level for students without
11    special needs necessary to meet adequate growth;
12        (2) include per pupil weights for students with special
13    needs to be applied to the base funding level;
14        (3) include an analysis of the effect of concentrations
15    of poverty on adequacy targets;
16        (4) include an analysis of the assumed school district
17    tax rates that should be included within the funding
18    formula; and
19        (5) in collaboration with the Illinois Early Learning
20    Council, include an analysis of what level of Preschool for
21    All Children funding would be necessary to serve all
22    children ages 0-5 years in the highest-priority service
23    tier (as specified in paragraph (4.5) of subsection (a) of
24    Section 2-3.71 of this Code) and an analysis of the
25    potential cost savings that that level of Preschool for All
26    Children investment would have on the kindergarten through

 

 

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1    grade 12 system.
2    (n) References. On and after July 1, 2014, references in
3other laws to general State aid funds or calculations under
4Section 18-8.05 of this Code shall be deemed to be references
5to primary State aid funds or calculations under this Section.
 
6    (105 ILCS 5/18-9)  (from Ch. 122, par. 18-9)
7    Sec. 18-9. Requirement for special equalization and
8supplementary State aid. If property comprising an aggregate
9assessed valuation equal to 6% or more of the total assessed
10valuation of all taxable property in a school district is owned
11by a person or corporation that is the subject of bankruptcy
12proceedings or that has been adjudged bankrupt and, as a result
13thereof, has not paid taxes on the property, then the district
14may amend its general State aid or primary State aid claim (i)
15back to the inception of the bankruptcy, not to exceed 6 years,
16in which time those taxes were not paid and (ii) for each
17succeeding year that those taxes remain unpaid, by adding to
18the claim an amount determined by multiplying the assessed
19valuation of the property on which taxes have not been paid due
20to the bankruptcy by the lesser of the total tax rate for the
21district for the tax year for which the taxes are unpaid or the
22applicable rate used in calculating the district's general
23State aid under paragraph (3) of subsection (D) of Section
2418-8.05 of this Code or primary State aid under paragraph (3)
25of subsection (d) of Section 18-8.15 of this Code, as

 

 

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1applicable. If at any time a district that receives additional
2State aid under this Section receives tax revenue from the
3property for the years that taxes were not paid, the district's
4next claim for State aid shall be reduced in an amount equal to
5the taxes paid on the property, not to exceed the additional
6State aid received under this Section. Claims under this
7Section shall be filed on forms prescribed by the State
8Superintendent of Education, and the State Superintendent of
9Education, upon receipt of a claim, shall adjust the claim in
10accordance with the provisions of this Section. Supplementary
11State aid for each succeeding year under this Section shall be
12paid beginning with the first general State aid or primary
13State aid claim paid after the district has filed a completed
14claim in accordance with this Section.
15(Source: P.A. 95-496, eff. 8-28-07.)
 
16    (105 ILCS 5/18-12)  (from Ch. 122, par. 18-12)
17    Sec. 18-12. Dates for filing State aid claims. The school
18board of each school district shall require teachers,
19principals, or superintendents to furnish from records kept by
20them such data as it needs in preparing and certifying to the
21regional superintendent its school district report of claims
22provided in Sections 18-8.05 through 18-9 as required by the
23State Superintendent of Education. The district claim shall be
24based on the latest available equalized assessed valuation and
25tax rates, as provided in Section 18-8.05 or 18-8.15 and shall

 

 

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1use the average daily attendance as determined by the method
2outlined in Section 18-8.05 or 18-8.15 and shall be certified
3and filed with the regional superintendent by June 21 for
4districts with an official school calendar end date before June
515 or within 2 weeks following the official school calendar end
6date for districts with a school year end date of June 15 or
7later. The regional superintendent shall certify and file with
8the State Superintendent of Education district State aid claims
9by July 1 for districts with an official school calendar end
10date before June 15 or no later than July 15 for districts with
11an official school calendar end date of June 15 or later.
12Failure to so file by these deadlines constitutes a forfeiture
13of the right to receive payment by the State until such claim
14is filed and vouchered for payment. The regional superintendent
15of schools shall certify the county report of claims by July
1615; and the State Superintendent of Education shall voucher for
17payment those claims to the State Comptroller as provided in
18Section 18-11.
19    Except as otherwise provided in this Section, if any school
20district fails to provide the minimum school term specified in
21Section 10-19, the State aid claim for that year shall be
22reduced by the State Superintendent of Education in an amount
23equivalent to 1/176 or .56818% for each day less than the
24number of days required by this Code.
25    If the State Superintendent of Education determines that
26the failure to provide the minimum school term was occasioned

 

 

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1by an act or acts of God, or was occasioned by conditions
2beyond the control of the school district which posed a
3hazardous threat to the health and safety of pupils, the State
4aid claim need not be reduced.
5    If a school district is precluded from providing the
6minimum hours of instruction required for a full day of
7attendance due to an adverse weather condition or a condition
8beyond the control of the school district that poses a
9hazardous threat to the health and safety of students, then the
10partial day of attendance may be counted if (i) the school
11district has provided at least one hour of instruction prior to
12the closure of the school district, (ii) a school building has
13provided at least one hour of instruction prior to the closure
14of the school building, or (iii) the normal start time of the
15school district is delayed.
16    If, prior to providing any instruction, a school district
17must close one or more but not all school buildings after
18consultation with a local emergency response agency or due to a
19condition beyond the control of the school district, then the
20school district may claim attendance for up to 2 school days
21based on the average attendance of the 3 school days
22immediately preceding the closure of the affected school
23building. The partial or no day of attendance described in this
24Section and the reasons therefore shall be certified within a
25month of the closing or delayed start by the school district
26superintendent to the regional superintendent of schools for

 

 

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1forwarding to the State Superintendent of Education for
2approval.
3    No exception to the requirement of providing a minimum
4school term may be approved by the State Superintendent of
5Education pursuant to this Section unless a school district has
6first used all emergency days provided for in its regular
7calendar.
8    If the State Superintendent of Education declares that an
9energy shortage exists during any part of the school year for
10the State or a designated portion of the State, a district may
11operate the school attendance centers within the district 4
12days of the week during the time of the shortage by extending
13each existing school day by one clock hour of school work, and
14the State aid claim shall not be reduced, nor shall the
15employees of that district suffer any reduction in salary or
16benefits as a result thereof. A district may operate all
17attendance centers on this revised schedule, or may apply the
18schedule to selected attendance centers, taking into
19consideration such factors as pupil transportation schedules
20and patterns and sources of energy for individual attendance
21centers.
22    Electronically submitted State aid claims shall be
23submitted by duly authorized district or regional individuals
24over a secure network that is password protected. The
25electronic submission of a State aid claim must be accompanied
26with an affirmation that all of the provisions of Sections

 

 

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118-8.05 through 18-9, 10-22.5, and 24-4 of this Code are met in
2all respects.
3(Source: P.A. 95-152, eff. 8-14-07; 95-811, eff. 8-13-08;
495-876, eff. 8-21-08; 96-734, eff. 8-25-09.)
 
5    (105 ILCS 5/26-16)
6    Sec. 26-16. Graduation incentives program.
7    (a) The General Assembly finds that it is critical to
8provide options for children to succeed in school. The purpose
9of this Section is to provide incentives for and encourage all
10Illinois students who have experienced or are experiencing
11difficulty in the traditional education system to enroll in
12alternative programs.
13    (b) Any student who is below the age of 20 years is
14eligible to enroll in a graduation incentives program if he or
15she:
16        (1) is considered a dropout pursuant to Section 26-2a
17    of this Code;
18        (2) has been suspended or expelled pursuant to Section
19    10-22.6 or 34-19 of this Code;
20        (3) is pregnant or is a parent;
21        (4) has been assessed as chemically dependent; or
22        (5) is enrolled in a bilingual education or LEP
23    program.
24    (c) The following programs qualify as graduation
25incentives programs for students meeting the criteria

 

 

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1established in this Section:
2        (1) Any public elementary or secondary education
3    graduation incentives program established by a school
4    district or by a regional office of education.
5        (2) Any alternative learning opportunities program
6    established pursuant to Article 13B of this Code.
7        (3) Vocational or job training courses approved by the
8    State Superintendent of Education that are available
9    through the Illinois public community college system.
10    Students may apply for reimbursement of 50% of tuition
11    costs for one course per semester or a maximum of 3 courses
12    per school year. Subject to available funds, students may
13    apply for reimbursement of up to 100% of tuition costs upon
14    a showing of employment within 6 months after completion of
15    a vocational or job training program. The qualifications
16    for reimbursement shall be established by the State
17    Superintendent of Education by rule.
18        (4) Job and career programs approved by the State
19    Superintendent of Education that are available through
20    Illinois-accredited private business and vocational
21    schools. Subject to available funds, pupils may apply for
22    reimbursement of up to 100% of tuition costs upon a showing
23    of employment within 6 months after completion of a job or
24    career program. The State Superintendent of Education
25    shall establish, by rule, the qualifications for
26    reimbursement, criteria for determining reimbursement

 

 

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1    amounts, and limits on reimbursement.
2        (5) Adult education courses that offer preparation for
3    the General Educational Development Test.
4    (d) Graduation incentives programs established by school
5districts are entitled to claim general State aid and primary
6State aid, subject to Sections 13B-50, 13B-50.5, and 13B-50.10
7of this Code. Graduation incentives programs operated by
8regional offices of education are entitled to receive general
9State aid and primary State aid at the foundation level of
10support per pupil enrolled. A school district must ensure that
11its graduation incentives program receives supplemental
12general State aid, transportation reimbursements, and special
13education resources, if appropriate, for students enrolled in
14the program.
15(Source: P.A. 93-858, eff. 1-1-05; 93-1079, eff. 1-21-05.)
 
16    (105 ILCS 5/27-8.1)  (from Ch. 122, par. 27-8.1)
17    Sec. 27-8.1. Health examinations and immunizations.
18    (1) In compliance with rules and regulations which the
19Department of Public Health shall promulgate, and except as
20hereinafter provided, all children in Illinois shall have a
21health examination as follows: within one year prior to
22entering kindergarten or the first grade of any public,
23private, or parochial elementary school; upon entering the
24sixth and ninth grades of any public, private, or parochial
25school; prior to entrance into any public, private, or

 

 

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1parochial nursery school; and, irrespective of grade,
2immediately prior to or upon entrance into any public, private,
3or parochial school or nursery school, each child shall present
4proof of having been examined in accordance with this Section
5and the rules and regulations promulgated hereunder. Any child
6who received a health examination within one year prior to
7entering the fifth grade for the 2007-2008 school year is not
8required to receive an additional health examination in order
9to comply with the provisions of Public Act 95-422 when he or
10she attends school for the 2008-2009 school year, unless the
11child is attending school for the first time as provided in
12this paragraph.
13    A tuberculosis skin test screening shall be included as a
14required part of each health examination included under this
15Section if the child resides in an area designated by the
16Department of Public Health as having a high incidence of
17tuberculosis. Additional health examinations of pupils,
18including eye examinations, may be required when deemed
19necessary by school authorities. Parents are encouraged to have
20their children undergo eye examinations at the same points in
21time required for health examinations.
22    (1.5) In compliance with rules adopted by the Department of
23Public Health and except as otherwise provided in this Section,
24all children in kindergarten and the second and sixth grades of
25any public, private, or parochial school shall have a dental
26examination. Each of these children shall present proof of

 

 

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1having been examined by a dentist in accordance with this
2Section and rules adopted under this Section before May 15th of
3the school year. If a child in the second or sixth grade fails
4to present proof by May 15th, the school may hold the child's
5report card until one of the following occurs: (i) the child
6presents proof of a completed dental examination or (ii) the
7child presents proof that a dental examination will take place
8within 60 days after May 15th. The Department of Public Health
9shall establish, by rule, a waiver for children who show an
10undue burden or a lack of access to a dentist. Each public,
11private, and parochial school must give notice of this dental
12examination requirement to the parents and guardians of
13students at least 60 days before May 15th of each school year.
14    (1.10) Except as otherwise provided in this Section, all
15children enrolling in kindergarten in a public, private, or
16parochial school on or after the effective date of this
17amendatory Act of the 95th General Assembly and any student
18enrolling for the first time in a public, private, or parochial
19school on or after the effective date of this amendatory Act of
20the 95th General Assembly shall have an eye examination. Each
21of these children shall present proof of having been examined
22by a physician licensed to practice medicine in all of its
23branches or a licensed optometrist within the previous year, in
24accordance with this Section and rules adopted under this
25Section, before October 15th of the school year. If the child
26fails to present proof by October 15th, the school may hold the

 

 

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1child's report card until one of the following occurs: (i) the
2child presents proof of a completed eye examination or (ii) the
3child presents proof that an eye examination will take place
4within 60 days after October 15th. The Department of Public
5Health shall establish, by rule, a waiver for children who show
6an undue burden or a lack of access to a physician licensed to
7practice medicine in all of its branches who provides eye
8examinations or to a licensed optometrist. Each public,
9private, and parochial school must give notice of this eye
10examination requirement to the parents and guardians of
11students in compliance with rules of the Department of Public
12Health. Nothing in this Section shall be construed to allow a
13school to exclude a child from attending because of a parent's
14or guardian's failure to obtain an eye examination for the
15child.
16    (2) The Department of Public Health shall promulgate rules
17and regulations specifying the examinations and procedures
18that constitute a health examination, which shall include the
19collection of data relating to obesity (including at a minimum,
20date of birth, gender, height, weight, blood pressure, and date
21of exam), and a dental examination and may recommend by rule
22that certain additional examinations be performed. The rules
23and regulations of the Department of Public Health shall
24specify that a tuberculosis skin test screening shall be
25included as a required part of each health examination included
26under this Section if the child resides in an area designated

 

 

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1by the Department of Public Health as having a high incidence
2of tuberculosis. The Department of Public Health shall specify
3that a diabetes screening as defined by rule shall be included
4as a required part of each health examination. Diabetes testing
5is not required.
6    Physicians licensed to practice medicine in all of its
7branches, advanced practice nurses who have a written
8collaborative agreement with a collaborating physician which
9authorizes them to perform health examinations, or physician
10assistants who have been delegated the performance of health
11examinations by their supervising physician shall be
12responsible for the performance of the health examinations,
13other than dental examinations, eye examinations, and vision
14and hearing screening, and shall sign all report forms required
15by subsection (4) of this Section that pertain to those
16portions of the health examination for which the physician,
17advanced practice nurse, or physician assistant is
18responsible. If a registered nurse performs any part of a
19health examination, then a physician licensed to practice
20medicine in all of its branches must review and sign all
21required report forms. Licensed dentists shall perform all
22dental examinations and shall sign all report forms required by
23subsection (4) of this Section that pertain to the dental
24examinations. Physicians licensed to practice medicine in all
25its branches or licensed optometrists shall perform all eye
26examinations required by this Section and shall sign all report

 

 

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1forms required by subsection (4) of this Section that pertain
2to the eye examination. For purposes of this Section, an eye
3examination shall at a minimum include history, visual acuity,
4subjective refraction to best visual acuity near and far,
5internal and external examination, and a glaucoma evaluation,
6as well as any other tests or observations that in the
7professional judgment of the doctor are necessary. Vision and
8hearing screening tests, which shall not be considered
9examinations as that term is used in this Section, shall be
10conducted in accordance with rules and regulations of the
11Department of Public Health, and by individuals whom the
12Department of Public Health has certified. In these rules and
13regulations, the Department of Public Health shall require that
14individuals conducting vision screening tests give a child's
15parent or guardian written notification, before the vision
16screening is conducted, that states, "Vision screening is not a
17substitute for a complete eye and vision evaluation by an eye
18doctor. Your child is not required to undergo this vision
19screening if an optometrist or ophthalmologist has completed
20and signed a report form indicating that an examination has
21been administered within the previous 12 months."
22    (3) Every child shall, at or about the same time as he or
23she receives a health examination required by subsection (1) of
24this Section, present to the local school proof of having
25received such immunizations against preventable communicable
26diseases as the Department of Public Health shall require by

 

 

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1rules and regulations promulgated pursuant to this Section and
2the Communicable Disease Prevention Act.
3    (4) The individuals conducting the health examination,
4dental examination, or eye examination shall record the fact of
5having conducted the examination, and such additional
6information as required, including for a health examination
7data relating to obesity (including at a minimum, date of
8birth, gender, height, weight, blood pressure, and date of
9exam), on uniform forms which the Department of Public Health
10and the State Board of Education shall prescribe for statewide
11use. The examiner shall summarize on the report form any
12condition that he or she suspects indicates a need for special
13services, including for a health examination factors relating
14to obesity. The individuals confirming the administration of
15required immunizations shall record as indicated on the form
16that the immunizations were administered.
17    (5) If a child does not submit proof of having had either
18the health examination or the immunization as required, then
19the child shall be examined or receive the immunization, as the
20case may be, and present proof by October 15 of the current
21school year, or by an earlier date of the current school year
22established by a school district. To establish a date before
23October 15 of the current school year for the health
24examination or immunization as required, a school district must
25give notice of the requirements of this Section 60 days prior
26to the earlier established date. If for medical reasons one or

 

 

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1more of the required immunizations must be given after October
215 of the current school year, or after an earlier established
3date of the current school year, then the child shall present,
4by October 15, or by the earlier established date, a schedule
5for the administration of the immunizations and a statement of
6the medical reasons causing the delay, both the schedule and
7the statement being issued by the physician, advanced practice
8nurse, physician assistant, registered nurse, or local health
9department that will be responsible for administration of the
10remaining required immunizations. If a child does not comply by
11October 15, or by the earlier established date of the current
12school year, with the requirements of this subsection, then the
13local school authority shall exclude that child from school
14until such time as the child presents proof of having had the
15health examination as required and presents proof of having
16received those required immunizations which are medically
17possible to receive immediately. During a child's exclusion
18from school for noncompliance with this subsection, the child's
19parents or legal guardian shall be considered in violation of
20Section 26-1 and subject to any penalty imposed by Section
2126-10. This subsection (5) does not apply to dental
22examinations and eye examinations. Until June 30, 2015, if the
23student is an out-of-state transfer student and does not have
24the proof required under this subsection (5) before October 15
25of the current year or whatever date is set by the school
26district, then he or she may only attend classes (i) if he or

 

 

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1she has proof that an appointment for the required vaccinations
2has been scheduled with a party authorized to submit proof of
3the required vaccinations. If the proof of vaccination required
4under this subsection (5) is not submitted within 30 days after
5the student is permitted to attend classes, then the student is
6not to be permitted to attend classes until proof of the
7vaccinations has been properly submitted. No school district or
8employee of a school district shall be held liable for any
9injury or illness to another person that results from admitting
10an out-of-state transfer student to class that has an
11appointment scheduled pursuant to this subsection (5).
12    (6) Every school shall report to the State Board of
13Education by November 15, in the manner which that agency shall
14require, the number of children who have received the necessary
15immunizations and the health examination (other than a dental
16examination or eye examination) as required, indicating, of
17those who have not received the immunizations and examination
18as required, the number of children who are exempt from health
19examination and immunization requirements on religious or
20medical grounds as provided in subsection (8). On or before
21December 1 of each year, every public school district and
22registered nonpublic school shall make publicly available the
23immunization data they are required to submit to the State
24Board of Education by November 15. The immunization data made
25publicly available must be identical to the data the school
26district or school has reported to the State Board of

 

 

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1Education.
2    Every school shall report to the State Board of Education
3by June 30, in the manner that the State Board requires, the
4number of children who have received the required dental
5examination, indicating, of those who have not received the
6required dental examination, the number of children who are
7exempt from the dental examination on religious grounds as
8provided in subsection (8) of this Section and the number of
9children who have received a waiver under subsection (1.5) of
10this Section.
11    Every school shall report to the State Board of Education
12by June 30, in the manner that the State Board requires, the
13number of children who have received the required eye
14examination, indicating, of those who have not received the
15required eye examination, the number of children who are exempt
16from the eye examination as provided in subsection (8) of this
17Section, the number of children who have received a waiver
18under subsection (1.10) of this Section, and the total number
19of children in noncompliance with the eye examination
20requirement.
21    The reported information under this subsection (6) shall be
22provided to the Department of Public Health by the State Board
23of Education.
24    (7) Upon determining that the number of pupils who are
25required to be in compliance with subsection (5) of this
26Section is below 90% of the number of pupils enrolled in the

 

 

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1school district, 10% of each State aid payment made pursuant to
2Section 18-8.05 or 18-8.15 to the school district for such year
3may be withheld by the State Board of Education until the
4number of students in compliance with subsection (5) is the
5applicable specified percentage or higher.
6    (8) Parents or legal guardians who object to health,
7dental, or eye examinations or any part thereof, or to
8immunizations, on religious grounds shall not be required to
9submit their children or wards to the examinations or
10immunizations to which they so object if such parents or legal
11guardians present to the appropriate local school authority a
12signed statement of objection, detailing the grounds for the
13objection. If the physical condition of the child is such that
14any one or more of the immunizing agents should not be
15administered, the examining physician, advanced practice
16nurse, or physician assistant responsible for the performance
17of the health examination shall endorse that fact upon the
18health examination form. Exempting a child from the health,
19dental, or eye examination does not exempt the child from
20participation in the program of physical education training
21provided in Sections 27-5 through 27-7 of this Code.
22    (9) For the purposes of this Section, "nursery schools"
23means those nursery schools operated by elementary school
24systems or secondary level school units or institutions of
25higher learning.
26(Source: P.A. 96-953, eff. 6-28-10; 97-216, eff. 1-1-12;

 

 

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197-910, eff. 1-1-13.)
 
2    (105 ILCS 5/27A-9)
3    Sec. 27A-9. Term of charter; renewal.
4    (a) A charter may be granted for a period not less than 5
5and not more than 10 school years. A charter may be renewed in
6incremental periods not to exceed 5 school years.
7    (b) A charter school renewal proposal submitted to the
8local school board or the Commission, as the chartering entity,
9shall contain:
10        (1) A report on the progress of the charter school in
11    achieving the goals, objectives, pupil performance
12    standards, content standards, and other terms of the
13    initial approved charter proposal; and
14        (2) A financial statement that discloses the costs of
15    administration, instruction, and other spending categories
16    for the charter school that is understandable to the
17    general public and that will allow comparison of those
18    costs to other schools or other comparable organizations,
19    in a format required by the State Board.
20    (c) A charter may be revoked or not renewed if the local
21school board or the Commission, as the chartering entity,
22clearly demonstrates that the charter school did any of the
23following, or otherwise failed to comply with the requirements
24of this law:
25        (1) Committed a material violation of any of the

 

 

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1    conditions, standards, or procedures set forth in the
2    charter.
3        (2) Failed to meet or make reasonable progress toward
4    achievement of the content standards or pupil performance
5    standards identified in the charter.
6        (3) Failed to meet generally accepted standards of
7    fiscal management.
8        (4) Violated any provision of law from which the
9    charter school was not exempted.
10    In the case of revocation, the local school board or the
11Commission, as the chartering entity, shall notify the charter
12school in writing of the reason why the charter is subject to
13revocation. The charter school shall submit a written plan to
14the local school board or the Commission, whichever is
15applicable, to rectify the problem. The plan shall include a
16timeline for implementation, which shall not exceed 2 years or
17the date of the charter's expiration, whichever is earlier. If
18the local school board or the Commission, as the chartering
19entity, finds that the charter school has failed to implement
20the plan of remediation and adhere to the timeline, then the
21chartering entity shall revoke the charter. Except in
22situations of an emergency where the health, safety, or
23education of the charter school's students is at risk, the
24revocation shall take place at the end of a school year.
25Nothing in this amendatory Act of the 96th General Assembly
26shall be construed to prohibit an implementation timetable that

 

 

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1is less than 2 years in duration.
2    (d) (Blank).
3    (e) Notice of a local school board's decision to deny,
4revoke or not to renew a charter shall be provided to the
5Commission and the State Board. The Commission may reverse a
6local board's decision if the Commission finds that the charter
7school or charter school proposal (i) is in compliance with
8this Article, and (ii) is in the best interests of the students
9it is designed to serve. The State Board may condition the
10granting of an appeal on the acceptance by the charter school
11of funding in an amount less than that requested in the
12proposal submitted to the local school board. Final decisions
13of the Commission shall be subject to judicial review under the
14Administrative Review Law.
15    (f) Notwithstanding other provisions of this Article, if
16the Commission on appeal reverses a local board's decision or
17if a charter school is approved by referendum, the Commission
18shall act as the authorized chartering entity for the charter
19school. The Commission shall approve the charter and shall
20perform all functions under this Article otherwise performed by
21the local school board. The State Board shall determine whether
22the charter proposal approved by the Commission is consistent
23with the provisions of this Article and, if the approved
24proposal complies, certify the proposal pursuant to this
25Article. The State Board shall report the aggregate number of
26charter school pupils resident in a school district to that

 

 

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1district and shall notify the district of the amount of funding
2to be paid by the Commission to the charter school enrolling
3such students. The Commission shall require the charter school
4to maintain accurate records of daily attendance that shall be
5deemed sufficient to file claims under Section 18-8.05 or
618-8.15 notwithstanding any other requirements of that Section
7regarding hours of instruction and teacher certification. The
8State Board shall withhold from funds otherwise due the
9district the funds authorized by this Article to be paid to the
10charter school and shall pay such amounts to the charter
11school.
12    (g) For charter schools authorized by the Commission, the
13Commission shall quarterly certify to the State Board the
14student enrollment for each of its charter schools.
15    (h) For charter schools authorized by the Commission, the
16State Board shall pay directly to a charter school any federal
17or State aid attributable to a student with a disability
18attending the school.
19(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)
 
20    (105 ILCS 5/27A-11)
21    Sec. 27A-11. Local financing.
22    (a) For purposes of the School Code, pupils enrolled in a
23charter school shall be included in the pupil enrollment of the
24school district within which the pupil resides. Each charter
25school (i) shall determine the school district in which each

 

 

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1pupil who is enrolled in the charter school resides, (ii) shall
2report the aggregate number of pupils resident of a school
3district who are enrolled in the charter school to the school
4district in which those pupils reside, and (iii) shall maintain
5accurate records of daily attendance that shall be deemed
6sufficient to file claims under Section 18-8 or 18-8.15
7notwithstanding any other requirements of that Section
8regarding hours of instruction and teacher certification.
9    (b) Except for a charter school established by referendum
10under Section 27A-6.5, as part of a charter school contract,
11the charter school and the local school board shall agree on
12funding and any services to be provided by the school district
13to the charter school. Agreed funding that a charter school is
14to receive from the local school board for a school year shall
15be paid in equal quarterly installments with the payment of the
16installment for the first quarter being made not later than
17July 1, unless the charter establishes a different payment
18schedule.
19    All services centrally or otherwise provided by the school
20district including, but not limited to, rent, food services,
21custodial services, maintenance, curriculum, media services,
22libraries, transportation, and warehousing shall be subject to
23negotiation between a charter school and the local school board
24and paid for out of the revenues negotiated pursuant to this
25subsection (b); provided that the local school board shall not
26attempt, by negotiation or otherwise, to obligate a charter

 

 

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1school to provide pupil transportation for pupils for whom a
2district is not required to provide transportation under the
3criteria set forth in subsection (a)(13) of Section 27A-7.
4    In no event shall the funding be less than 75% or more than
5125% of the school district's per capita student tuition
6multiplied by the number of students residing in the district
7who are enrolled in the charter school.
8    It is the intent of the General Assembly that funding and
9service agreements under this subsection (b) shall be neither a
10financial incentive nor a financial disincentive to the
11establishment of a charter school.
12    The charter school may set and collect reasonable fees.
13Fees collected from students enrolled at a charter school shall
14be retained by the charter school.
15    (c) Notwithstanding subsection (b) of this Section, the
16proportionate share of State and federal resources generated by
17students with disabilities or staff serving them shall be
18directed to charter schools enrolling those students by their
19school districts or administrative units. The proportionate
20share of moneys generated under other federal or State
21categorical aid programs shall be directed to charter schools
22serving students eligible for that aid.
23    (d) The governing body of a charter school is authorized to
24accept gifts, donations, or grants of any kind made to the
25charter school and to expend or use gifts, donations, or grants
26in accordance with the conditions prescribed by the donor;

 

 

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1however, a gift, donation, or grant may not be accepted by the
2governing body if it is subject to any condition contrary to
3applicable law or contrary to the terms of the contract between
4the charter school and the local school board. Charter schools
5shall be encouraged to solicit and utilize community volunteer
6speakers and other instructional resources when providing
7instruction on the Holocaust and other historical events.
8    (e) (Blank).
9    (f) The State Board shall provide technical assistance to
10persons and groups preparing or revising charter applications.
11    (g) At the non-renewal or revocation of its charter, each
12charter school shall refund to the local board of education all
13unspent funds.
14    (h) A charter school is authorized to incur temporary,
15short term debt to pay operating expenses in anticipation of
16receipt of funds from the local school board.
17(Source: P.A. 90-548, eff. 1-1-98; 90-757, eff. 8-14-98;
1891-407, eff. 8-3-99.)
 
19    (105 ILCS 5/29-5)  (from Ch. 122, par. 29-5)
20    Sec. 29-5. Reimbursement by State for transportation. Any
21school district, maintaining a school, transporting resident
22pupils to another school district's vocational program,
23offered through a joint agreement approved by the State Board
24of Education, as provided in Section 10-22.22 or transporting
25its resident pupils to a school which meets the standards for

 

 

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1recognition as established by the State Board of Education
2which provides transportation meeting the standards of safety,
3comfort, convenience, efficiency and operation prescribed by
4the State Board of Education for resident pupils in
5kindergarten or any of grades 1 through 12 who: (a) reside at
6least 1 1/2 miles as measured by the customary route of travel,
7from the school attended; or (b) reside in areas where
8conditions are such that walking constitutes a hazard to the
9safety of the child when determined under Section 29-3; and (c)
10are transported to the school attended from pick-up points at
11the beginning of the school day and back again at the close of
12the school day or transported to and from their assigned
13attendance centers during the school day, shall be reimbursed
14by the State as hereinafter provided in this Section through
15fiscal year 2014.
16    Through fiscal year 2014, the The State will pay the cost
17of transporting eligible pupils less the assessed valuation in
18a dual school district maintaining secondary grades 9 to 12
19inclusive times a qualifying rate of .05%; in elementary school
20districts maintaining grades K to 8 times a qualifying rate of
21.06%; and in unit districts maintaining grades K to 12,
22including optional elementary unit districts and combined high
23school - unit districts, times a qualifying rate of .07%;
24provided that for optional elementary unit districts and
25combined high school - unit districts, assessed valuation for
26high school purposes, as defined in Article 11E of this Code,

 

 

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1must be used. To be eligible to receive reimbursement in excess
2of 4/5 of the cost to transport eligible pupils, a school
3district shall have a Transportation Fund tax rate of at least
4.12%. If a school district does not have a .12% Transportation
5Fund tax rate, the amount of its claim in excess of 4/5 of the
6cost of transporting pupils shall be reduced by the sum arrived
7at by subtracting the Transportation Fund tax rate from .12%
8and multiplying that amount by the districts equalized or
9assessed valuation, provided, that in no case shall said
10reduction result in reimbursement of less than 4/5 of the cost
11to transport eligible pupils.
12    Through fiscal year 2014, the The minimum amount to be
13received by a district is $16 times the number of eligible
14pupils transported.
15    When calculating the reimbursement for transportation
16costs, the State Board of Education may not deduct the number
17of pupils enrolled in early education programs from the number
18of pupils eligible for reimbursement if the pupils enrolled in
19the early education programs are transported at the same time
20as other eligible pupils.
21    Through fiscal year 2014, any Any such district
22transporting resident pupils during the school day to an area
23vocational school or another school district's vocational
24program more than 1 1/2 miles from the school attended, as
25provided in Sections 10-22.20a and 10-22.22, shall be
26reimbursed by the State for 4/5 of the cost of transporting

 

 

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1eligible pupils.
2    School day means that period of time which the pupil is
3required to be in attendance for instructional purposes.
4    If a pupil is at a location within the school district
5other than his residence for child care purposes at the time
6for transportation to school, that location may be considered
7for purposes of determining the 1 1/2 miles from the school
8attended.
9    Claims for reimbursement that include children who attend
10any school other than a public school shall show the number of
11such children transported.
12    Claims for reimbursement under this Section shall not be
13paid for the transportation of pupils for whom transportation
14costs are claimed for payment under other Sections of this Act.
15    The allowable direct cost of transporting pupils for
16regular, vocational, and special education pupil
17transportation shall be limited to the sum of the cost of
18physical examinations required for employment as a school bus
19driver; the salaries of full or part-time drivers and school
20bus maintenance personnel; employee benefits excluding
21Illinois municipal retirement payments, social security
22payments, unemployment insurance payments and workers'
23compensation insurance premiums; expenditures to independent
24carriers who operate school buses; payments to other school
25districts for pupil transportation services; pre-approved
26contractual expenditures for computerized bus scheduling; the

 

 

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1cost of gasoline, oil, tires, and other supplies necessary for
2the operation of school buses; the cost of converting buses'
3gasoline engines to more fuel efficient engines or to engines
4which use alternative energy sources; the cost of travel to
5meetings and workshops conducted by the regional
6superintendent or the State Superintendent of Education
7pursuant to the standards established by the Secretary of State
8under Section 6-106 of the Illinois Vehicle Code to improve the
9driving skills of school bus drivers; the cost of maintenance
10of school buses including parts and materials used;
11expenditures for leasing transportation vehicles, except
12interest and service charges; the cost of insurance and
13licenses for transportation vehicles; expenditures for the
14rental of transportation equipment; plus a depreciation
15allowance of 20% for 5 years for school buses and vehicles
16approved for transporting pupils to and from school and a
17depreciation allowance of 10% for 10 years for other
18transportation equipment so used. Each school year, if a school
19district has made expenditures to the Regional Transportation
20Authority or any of its service boards, a mass transit
21district, or an urban transportation district under an
22intergovernmental agreement with the district to provide for
23the transportation of pupils and if the public transit carrier
24received direct payment for services or passes from a school
25district within its service area during the 2000-2001 school
26year, then the allowable direct cost of transporting pupils for

 

 

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1regular, vocational, and special education pupil
2transportation shall also include the expenditures that the
3district has made to the public transit carrier. In addition to
4the above allowable costs school districts shall also claim all
5transportation supervisory salary costs, including Illinois
6municipal retirement payments, and all transportation related
7building and building maintenance costs without limitation.
8    Special education allowable costs shall also include
9expenditures for the salaries of attendants or aides for that
10portion of the time they assist special education pupils while
11in transit and expenditures for parents and public carriers for
12transporting special education pupils when pre-approved by the
13State Superintendent of Education.
14    Indirect costs shall be included in the reimbursement claim
15for districts which own and operate their own school buses.
16Such indirect costs shall include administrative costs, or any
17costs attributable to transporting pupils from their
18attendance centers to another school building for
19instructional purposes. No school district which owns and
20operates its own school buses may claim reimbursement for
21indirect costs which exceed 5% of the total allowable direct
22costs for pupil transportation.
23    The State Board of Education shall prescribe uniform
24regulations for determining the above standards and shall
25prescribe forms of cost accounting and standards of determining
26reasonable depreciation. Such depreciation shall include the

 

 

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1cost of equipping school buses with the safety features
2required by law or by the rules, regulations and standards
3promulgated by the State Board of Education, and the Department
4of Transportation for the safety and construction of school
5buses provided, however, any equipment cost reimbursed by the
6Department of Transportation for equipping school buses with
7such safety equipment shall be deducted from the allowable cost
8in the computation of reimbursement under this Section in the
9same percentage as the cost of the equipment is depreciated.
10    On or before August 15, annually, through August 15, 2013,
11the chief school administrator for the district shall certify
12to the State Superintendent of Education the district's claim
13for reimbursement for the school year ending on June 30 next
14preceding. The State Superintendent of Education shall check
15and approve the claims and prepare the vouchers showing the
16amounts due for district reimbursement claims. Each fiscal year
17through fiscal year 2014, the State Superintendent of Education
18shall prepare and transmit the first 3 vouchers to the
19Comptroller on the 30th day of September, December and March,
20respectively, and the final voucher, no later than June 20.
21    If the amount appropriated for transportation
22reimbursement is insufficient to fund total claims for any
23fiscal year, the State Board of Education shall reduce each
24school district's allowable costs and flat grant amount
25proportionately to make total adjusted claims equal the total
26amount appropriated.

 

 

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1    For purposes of calculating claims for reimbursement under
2this Section for any school year beginning July 1, 1998, or
3thereafter, the equalized assessed valuation for a school
4district used to compute reimbursement shall be computed in the
5same manner as it is computed under paragraph (2) of subsection
6(G) of Section 18-8.05.
7    All reimbursements received from the State shall be
8deposited into the district's transportation fund or into the
9fund from which the allowable expenditures were made.
10    Notwithstanding any other provision of law, any school
11district receiving a payment under this Section or under
12Section 14-7.02, 14-7.02b, or 14-13.01 of this Code may
13classify all or a portion of the funds that it receives in a
14particular fiscal year or from general State aid pursuant to
15Section 18-8.05 of this Code as funds received in connection
16with any funding program for which it is entitled to receive
17funds from the State in that fiscal year (including, without
18limitation, any funding program referenced in this Section),
19regardless of the source or timing of the receipt. The district
20may not classify more funds as funds received in connection
21with the funding program than the district is entitled to
22receive in that fiscal year for that program. Any
23classification by a district must be made by a resolution of
24its board of education. The resolution must identify the amount
25of any payments or general State aid to be classified under
26this paragraph and must specify the funding program to which

 

 

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1the funds are to be treated as received in connection
2therewith. This resolution is controlling as to the
3classification of funds referenced therein. A certified copy of
4the resolution must be sent to the State Superintendent of
5Education. The resolution shall still take effect even though a
6copy of the resolution has not been sent to the State
7Superintendent of Education in a timely manner. No
8classification under this paragraph by a district shall affect
9the total amount or timing of money the district is entitled to
10receive under this Code. No classification under this paragraph
11by a district shall in any way relieve the district from or
12affect any requirements that otherwise would apply with respect
13to that funding program, including any accounting of funds by
14source, reporting expenditures by original source and purpose,
15reporting requirements, or requirements of providing services.
16    Any school district with a population of not more than
17500,000 must deposit all funds received under this Article into
18the transportation fund and use those funds for the provision
19of transportation services.
20(Source: P.A. 95-903, eff. 8-25-08; 96-1264, eff. 1-1-11.)
 
21    (105 ILCS 5/34-2.3)  (from Ch. 122, par. 34-2.3)
22    Sec. 34-2.3. Local school councils - Powers and duties.
23Each local school council shall have and exercise, consistent
24with the provisions of this Article and the powers and duties
25of the board of education, the following powers and duties:

 

 

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1    1. (A) To annually evaluate the performance of the
2principal of the attendance center using a Board approved
3principal evaluation form, which shall include the evaluation
4of (i) student academic improvement, as defined by the school
5improvement plan, (ii) student absenteeism rates at the school,
6(iii) instructional leadership, (iv) the effective
7implementation of programs, policies, or strategies to improve
8student academic achievement, (v) school management, and (vi)
9any other factors deemed relevant by the local school council,
10including, without limitation, the principal's communication
11skills and ability to create and maintain a student-centered
12learning environment, to develop opportunities for
13professional development, and to encourage parental
14involvement and community partnerships to achieve school
15improvement;
16    (B) to determine in the manner provided by subsection (c)
17of Section 34-2.2 and subdivision 1.5 of this Section whether
18the performance contract of the principal shall be renewed; and
19    (C) to directly select, in the manner provided by
20subsection (c) of Section 34-2.2, a new principal (including a
21new principal to fill a vacancy) -- without submitting any list
22of candidates for that position to the general superintendent
23as provided in paragraph 2 of this Section -- to serve under a
244 year performance contract; provided that (i) the
25determination of whether the principal's performance contract
26is to be renewed, based upon the evaluation required by

 

 

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1subdivision 1.5 of this Section, shall be made no later than
2150 days prior to the expiration of the current
3performance-based contract of the principal, (ii) in cases
4where such performance contract is not renewed -- a direct
5selection of a new principal -- to serve under a 4 year
6performance contract shall be made by the local school council
7no later than 45 days prior to the expiration of the current
8performance contract of the principal, and (iii) a selection by
9the local school council of a new principal to fill a vacancy
10under a 4 year performance contract shall be made within 90
11days after the date such vacancy occurs. A Council shall be
12required, if requested by the principal, to provide in writing
13the reasons for the council's not renewing the principal's
14contract.
15    1.5. The local school council's determination of whether to
16renew the principal's contract shall be based on an evaluation
17to assess the educational and administrative progress made at
18the school during the principal's current performance-based
19contract. The local school council shall base its evaluation on
20(i) student academic improvement, as defined by the school
21improvement plan, (ii) student absenteeism rates at the school,
22(iii) instructional leadership, (iv) the effective
23implementation of programs, policies, or strategies to improve
24student academic achievement, (v) school management, and (vi)
25any other factors deemed relevant by the local school council,
26including, without limitation, the principal's communication

 

 

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1skills and ability to create and maintain a student-centered
2learning environment, to develop opportunities for
3professional development, and to encourage parental
4involvement and community partnerships to achieve school
5improvement. If a local school council fails to renew the
6performance contract of a principal rated by the general
7superintendent, or his or her designee, in the previous years'
8evaluations as meeting or exceeding expectations, the
9principal, within 15 days after the local school council's
10decision not to renew the contract, may request a review of the
11local school council's principal non-retention decision by a
12hearing officer appointed by the American Arbitration
13Association. A local school council member or members or the
14general superintendent may support the principal's request for
15review. During the period of the hearing officer's review of
16the local school council's decision on whether or not to retain
17the principal, the local school council shall maintain all
18authority to search for and contract with a person to serve as
19interim or acting principal, or as the principal of the
20attendance center under a 4-year performance contract,
21provided that any performance contract entered into by the
22local school council shall be voidable or modified in
23accordance with the decision of the hearing officer. The
24principal may request review only once while at that attendance
25center. If a local school council renews the contract of a
26principal who failed to obtain a rating of "meets" or "exceeds

 

 

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1expectations" in the general superintendent's evaluation for
2the previous year, the general superintendent, within 15 days
3after the local school council's decision to renew the
4contract, may request a review of the local school council's
5principal retention decision by a hearing officer appointed by
6the American Arbitration Association. The general
7superintendent may request a review only once for that
8principal at that attendance center. All requests to review the
9retention or non-retention of a principal shall be submitted to
10the general superintendent, who shall, in turn, forward such
11requests, within 14 days of receipt, to the American
12Arbitration Association. The general superintendent shall send
13a contemporaneous copy of the request that was forwarded to the
14American Arbitration Association to the principal and to each
15local school council member and shall inform the local school
16council of its rights and responsibilities under the
17arbitration process, including the local school council's
18right to representation and the manner and process by which the
19Board shall pay the costs of the council's representation. If
20the local school council retains the principal and the general
21superintendent requests a review of the retention decision, the
22local school council and the general superintendent shall be
23considered parties to the arbitration, a hearing officer shall
24be chosen between those 2 parties pursuant to procedures
25promulgated by the State Board of Education, and the principal
26may retain counsel and participate in the arbitration. If the

 

 

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1local school council does not retain the principal and the
2principal requests a review of the retention decision, the
3local school council and the principal shall be considered
4parties to the arbitration and a hearing officer shall be
5chosen between those 2 parties pursuant to procedures
6promulgated by the State Board of Education. The hearing shall
7begin (i) within 45 days after the initial request for review
8is submitted by the principal to the general superintendent or
9(ii) if the initial request for review is made by the general
10superintendent, within 45 days after that request is mailed to
11the American Arbitration Association. The hearing officer
12shall render a decision within 45 days after the hearing begins
13and within 90 days after the initial request for review. The
14Board shall contract with the American Arbitration Association
15for all of the hearing officer's reasonable and necessary
16costs. In addition, the Board shall pay any reasonable costs
17incurred by a local school council for representation before a
18hearing officer.
19    1.10. The hearing officer shall conduct a hearing, which
20shall include (i) a review of the principal's performance,
21evaluations, and other evidence of the principal's service at
22the school, (ii) reasons provided by the local school council
23for its decision, and (iii) documentation evidencing views of
24interested persons, including, without limitation, students,
25parents, local school council members, school faculty and
26staff, the principal, the general superintendent or his or her

 

 

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1designee, and members of the community. The burden of proof in
2establishing that the local school council's decision was
3arbitrary and capricious shall be on the party requesting the
4arbitration, and this party shall sustain the burden by a
5preponderance of the evidence. The hearing officer shall set
6the local school council decision aside if that decision, in
7light of the record developed at the hearing, is arbitrary and
8capricious. The decision of the hearing officer may not be
9appealed to the Board or the State Board of Education. If the
10hearing officer decides that the principal shall be retained,
11the retention period shall not exceed 2 years.
12    2. In the event (i) the local school council does not renew
13the performance contract of the principal, or the principal
14fails to receive a satisfactory rating as provided in
15subsection (h) of Section 34-8.3, or the principal is removed
16for cause during the term of his or her performance contract in
17the manner provided by Section 34-85, or a vacancy in the
18position of principal otherwise occurs prior to the expiration
19of the term of a principal's performance contract, and (ii) the
20local school council fails to directly select a new principal
21to serve under a 4 year performance contract, the local school
22council in such event shall submit to the general
23superintendent a list of 3 candidates -- listed in the local
24school council's order of preference -- for the position of
25principal, one of which shall be selected by the general
26superintendent to serve as principal of the attendance center.

 

 

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1If the general superintendent fails or refuses to select one of
2the candidates on the list to serve as principal within 30 days
3after being furnished with the candidate list, the general
4superintendent shall select and place a principal on an interim
5basis (i) for a period not to exceed one year or (ii) until the
6local school council selects a new principal with 7 affirmative
7votes as provided in subsection (c) of Section 34-2.2,
8whichever occurs first. If the local school council fails or
9refuses to select and appoint a new principal, as specified by
10subsection (c) of Section 34-2.2, the general superintendent
11may select and appoint a new principal on an interim basis for
12an additional year or until a new contract principal is
13selected by the local school council. There shall be no
14discrimination on the basis of race, sex, creed, color or
15disability unrelated to ability to perform in connection with
16the submission of candidates for, and the selection of a
17candidate to serve as principal of an attendance center. No
18person shall be directly selected, listed as a candidate for,
19or selected to serve as principal of an attendance center (i)
20if such person has been removed for cause from employment by
21the Board or (ii) if such person does not hold a valid
22administrative certificate issued or exchanged under Article
2321 and endorsed as required by that Article for the position of
24principal. A principal whose performance contract is not
25renewed as provided under subsection (c) of Section 34-2.2 may
26nevertheless, if otherwise qualified and certified as herein

 

 

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1provided and if he or she has received a satisfactory rating as
2provided in subsection (h) of Section 34-8.3, be included by a
3local school council as one of the 3 candidates listed in order
4of preference on any candidate list from which one person is to
5be selected to serve as principal of the attendance center
6under a new performance contract. The initial candidate list
7required to be submitted by a local school council to the
8general superintendent in cases where the local school council
9does not renew the performance contract of its principal and
10does not directly select a new principal to serve under a 4
11year performance contract shall be submitted not later than 30
12days prior to the expiration of the current performance
13contract. In cases where the local school council fails or
14refuses to submit the candidate list to the general
15superintendent no later than 30 days prior to the expiration of
16the incumbent principal's contract, the general superintendent
17may appoint a principal on an interim basis for a period not to
18exceed one year, during which time the local school council
19shall be able to select a new principal with 7 affirmative
20votes as provided in subsection (c) of Section 34-2.2. In cases
21where a principal is removed for cause or a vacancy otherwise
22occurs in the position of principal and the vacancy is not
23filled by direct selection by the local school council, the
24candidate list shall be submitted by the local school council
25to the general superintendent within 90 days after the date
26such removal or vacancy occurs. In cases where the local school

 

 

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1council fails or refuses to submit the candidate list to the
2general superintendent within 90 days after the date of the
3vacancy, the general superintendent may appoint a principal on
4an interim basis for a period of one year, during which time
5the local school council shall be able to select a new
6principal with 7 affirmative votes as provided in subsection
7(c) of Section 34-2.2.
8    2.5. Whenever a vacancy in the office of a principal occurs
9for any reason, the vacancy shall be filled in the manner
10provided by this Section by the selection of a new principal to
11serve under a 4 year performance contract.
12    3. To establish additional criteria to be included as part
13of the performance contract of its principal, provided that
14such additional criteria shall not discriminate on the basis of
15race, sex, creed, color or disability unrelated to ability to
16perform, and shall not be inconsistent with the uniform 4 year
17performance contract for principals developed by the board as
18provided in Section 34-8.1 of the School Code or with other
19provisions of this Article governing the authority and
20responsibility of principals.
21    4. To approve the expenditure plan prepared by the
22principal with respect to all funds allocated and distributed
23to the attendance center by the Board. The expenditure plan
24shall be administered by the principal. Notwithstanding any
25other provision of this Act or any other law, any expenditure
26plan approved and administered under this Section 34-2.3 shall

 

 

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1be consistent with and subject to the terms of any contract for
2services with a third party entered into by the Chicago School
3Reform Board of Trustees or the board under this Act.
4    Via a supermajority vote of 7 members of the local school
5council or 8 members of a high school local school council, the
6Council may transfer allocations pursuant to Section 34-2.3
7within funds; provided that such a transfer is consistent with
8applicable law and collective bargaining agreements.
9    Beginning in fiscal year 1991 and in each fiscal year
10thereafter, the Board may reserve up to 1% of its total fiscal
11year budget for distribution on a prioritized basis to schools
12throughout the school system in order to assure adequate
13programs to meet the needs of special student populations as
14determined by the Board. This distribution shall take into
15account the needs catalogued in the Systemwide Plan and the
16various local school improvement plans of the local school
17councils. Information about these centrally funded programs
18shall be distributed to the local school councils so that their
19subsequent planning and programming will account for these
20provisions.
21    Beginning in fiscal year 1991 and in each fiscal year
22thereafter, from other amounts available in the applicable
23fiscal year budget, the board shall allocate a lump sum amount
24to each local school based upon such formula as the board shall
25determine taking into account the special needs of the student
26body. The local school principal shall develop an expenditure

 

 

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1plan in consultation with the local school council, the
2professional personnel leadership committee and with all other
3school personnel, which reflects the priorities and activities
4as described in the school's local school improvement plan and
5is consistent with applicable law and collective bargaining
6agreements and with board policies and standards; however, the
7local school council shall have the right to request waivers of
8board policy from the board of education and waivers of
9employee collective bargaining agreements pursuant to Section
1034-8.1a.
11    The expenditure plan developed by the principal with
12respect to amounts available from the fund for prioritized
13special needs programs and the allocated lump sum amount must
14be approved by the local school council.
15    The lump sum allocation shall take into account the
16following principles:
17        a. Teachers: Each school shall be allocated funds equal
18    to the amount appropriated in the previous school year for
19    compensation for teachers (regular grades kindergarten
20    through 12th grade) plus whatever increases in
21    compensation have been negotiated contractually or through
22    longevity as provided in the negotiated agreement.
23    Adjustments shall be made due to layoff or reduction in
24    force, lack of funds or work, change in subject
25    requirements, enrollment changes, or contracts with third
26    parties for the performance of services or to rectify any

 

 

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1    inconsistencies with system-wide allocation formulas or
2    for other legitimate reasons.
3        b. Other personnel: Funds for other teacher
4    certificated and uncertificated personnel paid through
5    non-categorical funds shall be provided according to
6    system-wide formulas based on student enrollment and the
7    special needs of the school as determined by the Board.
8        c. Non-compensation items: Appropriations for all
9    non-compensation items shall be based on system-wide
10    formulas based on student enrollment and on the special
11    needs of the school or factors related to the physical
12    plant, including but not limited to textbooks, electronic
13    textbooks and the technological equipment necessary to
14    gain access to and use electronic textbooks, supplies,
15    electricity, equipment, and routine maintenance.
16        d. Funds for categorical programs: Schools shall
17    receive personnel and funds based on, and shall use such
18    personnel and funds in accordance with State and Federal
19    requirements applicable to each categorical program
20    provided to meet the special needs of the student body
21    (including but not limited to, Federal Chapter I,
22    Bilingual, and Special Education).
23        d.1. Funds for State Title I: Each school shall receive
24    funds based on State and Board requirements applicable to
25    each State Title I pupil provided to meet the special needs
26    of the student body. Each school shall receive the

 

 

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1    proportion of funds as provided in Section 18-8 or 18-8.15
2    to which they are entitled. These funds shall be spent only
3    with the budgetary approval of the Local School Council as
4    provided in Section 34-2.3.
5        e. The Local School Council shall have the right to
6    request the principal to close positions and open new ones
7    consistent with the provisions of the local school
8    improvement plan provided that these decisions are
9    consistent with applicable law and collective bargaining
10    agreements. If a position is closed, pursuant to this
11    paragraph, the local school shall have for its use the
12    system-wide average compensation for the closed position.
13        f. Operating within existing laws and collective
14    bargaining agreements, the local school council shall have
15    the right to direct the principal to shift expenditures
16    within funds.
17        g. (Blank).
18    Any funds unexpended at the end of the fiscal year shall be
19available to the board of education for use as part of its
20budget for the following fiscal year.
21    5. To make recommendations to the principal concerning
22textbook selection and concerning curriculum developed
23pursuant to the school improvement plan which is consistent
24with systemwide curriculum objectives in accordance with
25Sections 34-8 and 34-18 of the School Code and in conformity
26with the collective bargaining agreement.

 

 

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1    6. To advise the principal concerning the attendance and
2disciplinary policies for the attendance center, subject to the
3provisions of this Article and Article 26, and consistent with
4the uniform system of discipline established by the board
5pursuant to Section 34-19.
6    7. To approve a school improvement plan developed as
7provided in Section 34-2.4. The process and schedule for plan
8development shall be publicized to the entire school community,
9and the community shall be afforded the opportunity to make
10recommendations concerning the plan. At least twice a year the
11principal and local school council shall report publicly on
12progress and problems with respect to plan implementation.
13    8. To evaluate the allocation of teaching resources and
14other certificated and uncertificated staff to the attendance
15center to determine whether such allocation is consistent with
16and in furtherance of instructional objectives and school
17programs reflective of the school improvement plan adopted for
18the attendance center; and to make recommendations to the
19board, the general superintendent and the principal concerning
20any reallocation of teaching resources or other staff whenever
21the council determines that any such reallocation is
22appropriate because the qualifications of any existing staff at
23the attendance center do not adequately match or support
24instructional objectives or school programs which reflect the
25school improvement plan.
26    9. To make recommendations to the principal and the general

 

 

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1superintendent concerning their respective appointments, after
2August 31, 1989, and in the manner provided by Section 34-8 and
3Section 34-8.1, of persons to fill any vacant, additional or
4newly created positions for teachers at the attendance center
5or at attendance centers which include the attendance center
6served by the local school council.
7    10. To request of the Board the manner in which training
8and assistance shall be provided to the local school council.
9Pursuant to Board guidelines a local school council is
10authorized to direct the Board of Education to contract with
11personnel or not-for-profit organizations not associated with
12the school district to train or assist council members. If
13training or assistance is provided by contract with personnel
14or organizations not associated with the school district, the
15period of training or assistance shall not exceed 30 hours
16during a given school year; person shall not be employed on a
17continuous basis longer than said period and shall not have
18been employed by the Chicago Board of Education within the
19preceding six months. Council members shall receive training in
20at least the following areas:
21        1. school budgets;
22        2. educational theory pertinent to the attendance
23    center's particular needs, including the development of
24    the school improvement plan and the principal's
25    performance contract; and
26        3. personnel selection.

 

 

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1Council members shall, to the greatest extent possible,
2complete such training within 90 days of election.
3    11. In accordance with systemwide guidelines contained in
4the System-Wide Educational Reform Goals and Objectives Plan,
5criteria for evaluation of performance shall be established for
6local school councils and local school council members. If a
7local school council persists in noncompliance with systemwide
8requirements, the Board may impose sanctions and take necessary
9corrective action, consistent with Section 34-8.3.
10    12. Each local school council shall comply with the Open
11Meetings Act and the Freedom of Information Act. Each local
12school council shall issue and transmit to its school community
13a detailed annual report accounting for its activities
14programmatically and financially. Each local school council
15shall convene at least 2 well-publicized meetings annually with
16its entire school community. These meetings shall include
17presentation of the proposed local school improvement plan, of
18the proposed school expenditure plan, and the annual report,
19and shall provide an opportunity for public comment.
20    13. Each local school council is encouraged to involve
21additional non-voting members of the school community in
22facilitating the council's exercise of its responsibilities.
23    14. The local school council may adopt a school uniform or
24dress code policy that governs the attendance center and that
25is necessary to maintain the orderly process of a school
26function or prevent endangerment of student health or safety,

 

 

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1consistent with the policies and rules of the Board of
2Education. A school uniform or dress code policy adopted by a
3local school council: (i) shall not be applied in such manner
4as to discipline or deny attendance to a transfer student or
5any other student for noncompliance with that policy during
6such period of time as is reasonably necessary to enable the
7student to acquire a school uniform or otherwise comply with
8the dress code policy that is in effect at the attendance
9center into which the student's enrollment is transferred; and
10(ii) shall include criteria and procedures under which the
11local school council will accommodate the needs of or otherwise
12provide appropriate resources to assist a student from an
13indigent family in complying with an applicable school uniform
14or dress code policy. A student whose parents or legal
15guardians object on religious grounds to the student's
16compliance with an applicable school uniform or dress code
17policy shall not be required to comply with that policy if the
18student's parents or legal guardians present to the local
19school council a signed statement of objection detailing the
20grounds for the objection.
21    15. All decisions made and actions taken by the local
22school council in the exercise of its powers and duties shall
23comply with State and federal laws, all applicable collective
24bargaining agreements, court orders and rules properly
25promulgated by the Board.
26    15a. To grant, in accordance with board rules and policies,

 

 

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1the use of assembly halls and classrooms when not otherwise
2needed, including lighting, heat, and attendants, for public
3lectures, concerts, and other educational and social
4activities.
5    15b. To approve, in accordance with board rules and
6policies, receipts and expenditures for all internal accounts
7of the attendance center, and to approve all fund-raising
8activities by nonschool organizations that use the school
9building.
10    16. (Blank).
11    17. Names and addresses of local school council members
12shall be a matter of public record.
13(Source: P.A. 96-1403, eff. 7-29-10.)
 
14    (105 ILCS 5/34-8.4)
15    Sec. 34-8.4. Intervention. The Chicago Schools Academic
16Accountability Council may recommend to the Chicago School
17Reform Board of Trustees that any school placed on remediation
18or probation under Section 34-8.3 or schools that for the 3
19consecutive school years of 1992-1993, 1993-1994, and
201994-1995 have met the State Board of Education's category of
21"does not meet expectations" be made subject to intervention
22under this Section 34-8.4. In addition to any powers created
23under this Section, the Trustees shall have all powers created
24under Section 34-8.3 with respect to schools subjected to
25intervention.

 

 

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1    Prior to subjecting a school to intervention, the Trustees
2shall conduct a public hearing and make findings of facts
3concerning the recommendation of the Chicago Schools Academic
4Accountability Council and the factors causing the failure of
5the school to adequately perform. The Trustees shall afford an
6opportunity at the hearing for interested persons to comment
7about the intervention recommendation. After the hearing has
8been held and completion of findings of fact, the Trustees
9shall make a determination whether to subject the school to
10intervention.
11    If the Trustees determine that a school shall be subject to
12intervention under this Section, the Trustees shall develop an
13intervention implementation plan and shall cause a performance
14evaluation to be made of each employee at the school. Upon
15consideration of such evaluations, and consistent with the
16intervention implementation plan, the Trustees may reassign,
17layoff, or dismiss any employees at the attendance center,
18notwithstanding the provisions of Sections 24A-5 and 34-85.
19    The chief educational officer shall appoint a principal for
20the school and shall set the terms and conditions of the
21principal's contract, which in no case may be longer than 2
22years. The principal shall select all teachers and
23non-certified personnel for the school as may be necessary. Any
24provision of Section 34-8.1 that conflicts with this Section
25shall not apply to a school subjected to intervention under
26this Section.

 

 

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1    If pursuant to this Section, the general superintendent,
2with the approval of the board, orders new local school council
3elections, the general superintendent shall carry out the
4responsibilities of the local school council for a school
5subject to intervention until the new local school council
6members are elected and trained.
7    Each school year, 5% of the supplemental general State aid
8or supplemental grant funds distributed to a school subject to
9intervention during that school year under subsection
105(i)(1)(a) of part A of Section 18-8, or subsection (H) of
11Section 18-8.05, or subsection (h) of Section 18-8.15 shall be
12used for employee performance incentives. The Trustees shall
13prepare a report evaluating the results of any interventions
14undertaken pursuant to this Section and shall make
15recommendations concerning implementation of special programs
16for dealing with underperforming schools on an ongoing basis.
17This report shall be submitted to the State Superintendent of
18Education and Mayor of the City of Chicago by January 1, 1999.
19(Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97;
2090-548, eff. 1-1-98.)
 
21    (105 ILCS 5/34-18)  (from Ch. 122, par. 34-18)
22    Sec. 34-18. Powers of the board. The board shall exercise
23general supervision and jurisdiction over the public education
24and the public school system of the city, and, except as
25otherwise provided by this Article, shall have power:

 

 

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1        1. To make suitable provision for the establishment and
2    maintenance throughout the year or for such portion thereof
3    as it may direct, not less than 9 months, of schools of all
4    grades and kinds, including normal schools, high schools,
5    night schools, schools for defectives and delinquents,
6    parental and truant schools, schools for the blind, the
7    deaf and the physically disabled, schools or classes in
8    manual training, constructural and vocational teaching,
9    domestic arts and physical culture, vocation and extension
10    schools and lecture courses, and all other educational
11    courses and facilities, including establishing, equipping,
12    maintaining and operating playgrounds and recreational
13    programs, when such programs are conducted in, adjacent to,
14    or connected with any public school under the general
15    supervision and jurisdiction of the board; provided that
16    the calendar for the school term and any changes must be
17    submitted to and approved by the State Board of Education
18    before the calendar or changes may take effect, and
19    provided that in allocating funds from year to year for the
20    operation of all attendance centers within the district,
21    the board shall ensure that supplemental general State aid
22    or supplemental grant funds are allocated and applied in
23    accordance with Section 18-8, or 18-8.05, or 18-8.15. To
24    admit to such schools without charge foreign exchange
25    students who are participants in an organized exchange
26    student program which is authorized by the board. The board

 

 

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1    shall permit all students to enroll in apprenticeship
2    programs in trade schools operated by the board, whether
3    those programs are union-sponsored or not. No student shall
4    be refused admission into or be excluded from any course of
5    instruction offered in the common schools by reason of that
6    student's sex. No student shall be denied equal access to
7    physical education and interscholastic athletic programs
8    supported from school district funds or denied
9    participation in comparable physical education and
10    athletic programs solely by reason of the student's sex.
11    Equal access to programs supported from school district
12    funds and comparable programs will be defined in rules
13    promulgated by the State Board of Education in consultation
14    with the Illinois High School Association. Notwithstanding
15    any other provision of this Article, neither the board of
16    education nor any local school council or other school
17    official shall recommend that children with disabilities
18    be placed into regular education classrooms unless those
19    children with disabilities are provided with supplementary
20    services to assist them so that they benefit from the
21    regular classroom instruction and are included on the
22    teacher's regular education class register;
23        2. To furnish lunches to pupils, to make a reasonable
24    charge therefor, and to use school funds for the payment of
25    such expenses as the board may determine are necessary in
26    conducting the school lunch program;

 

 

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1        3. To co-operate with the circuit court;
2        4. To make arrangements with the public or quasi-public
3    libraries and museums for the use of their facilities by
4    teachers and pupils of the public schools;
5        5. To employ dentists and prescribe their duties for
6    the purpose of treating the pupils in the schools, but
7    accepting such treatment shall be optional with parents or
8    guardians;
9        6. To grant the use of assembly halls and classrooms
10    when not otherwise needed, including light, heat, and
11    attendants, for free public lectures, concerts, and other
12    educational and social interests, free of charge, under
13    such provisions and control as the principal of the
14    affected attendance center may prescribe;
15        7. To apportion the pupils to the several schools;
16    provided that no pupil shall be excluded from or segregated
17    in any such school on account of his color, race, sex, or
18    nationality. The board shall take into consideration the
19    prevention of segregation and the elimination of
20    separation of children in public schools because of color,
21    race, sex, or nationality. Except that children may be
22    committed to or attend parental and social adjustment
23    schools established and maintained either for boys or girls
24    only. All records pertaining to the creation, alteration or
25    revision of attendance areas shall be open to the public.
26    Nothing herein shall limit the board's authority to

 

 

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1    establish multi-area attendance centers or other student
2    assignment systems for desegregation purposes or
3    otherwise, and to apportion the pupils to the several
4    schools. Furthermore, beginning in school year 1994-95,
5    pursuant to a board plan adopted by October 1, 1993, the
6    board shall offer, commencing on a phased-in basis, the
7    opportunity for families within the school district to
8    apply for enrollment of their children in any attendance
9    center within the school district which does not have
10    selective admission requirements approved by the board.
11    The appropriate geographical area in which such open
12    enrollment may be exercised shall be determined by the
13    board of education. Such children may be admitted to any
14    such attendance center on a space available basis after all
15    children residing within such attendance center's area
16    have been accommodated. If the number of applicants from
17    outside the attendance area exceed the space available,
18    then successful applicants shall be selected by lottery.
19    The board of education's open enrollment plan must include
20    provisions that allow low income students to have access to
21    transportation needed to exercise school choice. Open
22    enrollment shall be in compliance with the provisions of
23    the Consent Decree and Desegregation Plan cited in Section
24    34-1.01;
25        8. To approve programs and policies for providing
26    transportation services to students. Nothing herein shall

 

 

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1    be construed to permit or empower the State Board of
2    Education to order, mandate, or require busing or other
3    transportation of pupils for the purpose of achieving
4    racial balance in any school;
5        9. Subject to the limitations in this Article, to
6    establish and approve system-wide curriculum objectives
7    and standards, including graduation standards, which
8    reflect the multi-cultural diversity in the city and are
9    consistent with State law, provided that for all purposes
10    of this Article courses or proficiency in American Sign
11    Language shall be deemed to constitute courses or
12    proficiency in a foreign language; and to employ principals
13    and teachers, appointed as provided in this Article, and
14    fix their compensation. The board shall prepare such
15    reports related to minimal competency testing as may be
16    requested by the State Board of Education, and in addition
17    shall monitor and approve special education and bilingual
18    education programs and policies within the district to
19    assure that appropriate services are provided in
20    accordance with applicable State and federal laws to
21    children requiring services and education in those areas;
22        10. To employ non-teaching personnel or utilize
23    volunteer personnel for: (i) non-teaching duties not
24    requiring instructional judgment or evaluation of pupils,
25    including library duties; and (ii) supervising study
26    halls, long distance teaching reception areas used

 

 

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1    incident to instructional programs transmitted by
2    electronic media such as computers, video, and audio,
3    detention and discipline areas, and school-sponsored
4    extracurricular activities. The board may further utilize
5    volunteer non-certificated personnel or employ
6    non-certificated personnel to assist in the instruction of
7    pupils under the immediate supervision of a teacher holding
8    a valid certificate, directly engaged in teaching subject
9    matter or conducting activities; provided that the teacher
10    shall be continuously aware of the non-certificated
11    persons' activities and shall be able to control or modify
12    them. The general superintendent shall determine
13    qualifications of such personnel and shall prescribe rules
14    for determining the duties and activities to be assigned to
15    such personnel;
16        10.5. To utilize volunteer personnel from a regional
17    School Crisis Assistance Team (S.C.A.T.), created as part
18    of the Safe to Learn Program established pursuant to
19    Section 25 of the Illinois Violence Prevention Act of 1995,
20    to provide assistance to schools in times of violence or
21    other traumatic incidents within a school community by
22    providing crisis intervention services to lessen the
23    effects of emotional trauma on individuals and the
24    community; the School Crisis Assistance Team Steering
25    Committee shall determine the qualifications for
26    volunteers;

 

 

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1        11. To provide television studio facilities in not to
2    exceed one school building and to provide programs for
3    educational purposes, provided, however, that the board
4    shall not construct, acquire, operate, or maintain a
5    television transmitter; to grant the use of its studio
6    facilities to a licensed television station located in the
7    school district; and to maintain and operate not to exceed
8    one school radio transmitting station and provide programs
9    for educational purposes;
10        12. To offer, if deemed appropriate, outdoor education
11    courses, including field trips within the State of
12    Illinois, or adjacent states, and to use school educational
13    funds for the expense of the said outdoor educational
14    programs, whether within the school district or not;
15        13. During that period of the calendar year not
16    embraced within the regular school term, to provide and
17    conduct courses in subject matters normally embraced in the
18    program of the schools during the regular school term and
19    to give regular school credit for satisfactory completion
20    by the student of such courses as may be approved for
21    credit by the State Board of Education;
22        14. To insure against any loss or liability of the
23    board, the former School Board Nominating Commission,
24    Local School Councils, the Chicago Schools Academic
25    Accountability Council, or the former Subdistrict Councils
26    or of any member, officer, agent or employee thereof,

 

 

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1    resulting from alleged violations of civil rights arising
2    from incidents occurring on or after September 5, 1967 or
3    from the wrongful or negligent act or omission of any such
4    person whether occurring within or without the school
5    premises, provided the officer, agent or employee was, at
6    the time of the alleged violation of civil rights or
7    wrongful act or omission, acting within the scope of his
8    employment or under direction of the board, the former
9    School Board Nominating Commission, the Chicago Schools
10    Academic Accountability Council, Local School Councils, or
11    the former Subdistrict Councils; and to provide for or
12    participate in insurance plans for its officers and
13    employees, including but not limited to retirement
14    annuities, medical, surgical and hospitalization benefits
15    in such types and amounts as may be determined by the
16    board; provided, however, that the board shall contract for
17    such insurance only with an insurance company authorized to
18    do business in this State. Such insurance may include
19    provision for employees who rely on treatment by prayer or
20    spiritual means alone for healing, in accordance with the
21    tenets and practice of a recognized religious
22    denomination;
23        15. To contract with the corporate authorities of any
24    municipality or the county board of any county, as the case
25    may be, to provide for the regulation of traffic in parking
26    areas of property used for school purposes, in such manner

 

 

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1    as is provided by Section 11-209 of The Illinois Vehicle
2    Code, approved September 29, 1969, as amended;
3        16. (a) To provide, on an equal basis, access to a high
4    school campus and student directory information to the
5    official recruiting representatives of the armed forces of
6    Illinois and the United States for the purposes of
7    informing students of the educational and career
8    opportunities available in the military if the board has
9    provided such access to persons or groups whose purpose is
10    to acquaint students with educational or occupational
11    opportunities available to them. The board is not required
12    to give greater notice regarding the right of access to
13    recruiting representatives than is given to other persons
14    and groups. In this paragraph 16, "directory information"
15    means a high school student's name, address, and telephone
16    number.
17        (b) If a student or his or her parent or guardian
18    submits a signed, written request to the high school before
19    the end of the student's sophomore year (or if the student
20    is a transfer student, by another time set by the high
21    school) that indicates that the student or his or her
22    parent or guardian does not want the student's directory
23    information to be provided to official recruiting
24    representatives under subsection (a) of this Section, the
25    high school may not provide access to the student's
26    directory information to these recruiting representatives.

 

 

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1    The high school shall notify its students and their parents
2    or guardians of the provisions of this subsection (b).
3        (c) A high school may require official recruiting
4    representatives of the armed forces of Illinois and the
5    United States to pay a fee for copying and mailing a
6    student's directory information in an amount that is not
7    more than the actual costs incurred by the high school.
8        (d) Information received by an official recruiting
9    representative under this Section may be used only to
10    provide information to students concerning educational and
11    career opportunities available in the military and may not
12    be released to a person who is not involved in recruiting
13    students for the armed forces of Illinois or the United
14    States;
15        17. (a) To sell or market any computer program
16    developed by an employee of the school district, provided
17    that such employee developed the computer program as a
18    direct result of his or her duties with the school district
19    or through the utilization of the school district resources
20    or facilities. The employee who developed the computer
21    program shall be entitled to share in the proceeds of such
22    sale or marketing of the computer program. The distribution
23    of such proceeds between the employee and the school
24    district shall be as agreed upon by the employee and the
25    school district, except that neither the employee nor the
26    school district may receive more than 90% of such proceeds.

 

 

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1    The negotiation for an employee who is represented by an
2    exclusive bargaining representative may be conducted by
3    such bargaining representative at the employee's request.
4        (b) For the purpose of this paragraph 17:
5            (1) "Computer" means an internally programmed,
6        general purpose digital device capable of
7        automatically accepting data, processing data and
8        supplying the results of the operation.
9            (2) "Computer program" means a series of coded
10        instructions or statements in a form acceptable to a
11        computer, which causes the computer to process data in
12        order to achieve a certain result.
13            (3) "Proceeds" means profits derived from
14        marketing or sale of a product after deducting the
15        expenses of developing and marketing such product;
16        18. To delegate to the general superintendent of
17    schools, by resolution, the authority to approve contracts
18    and expenditures in amounts of $10,000 or less;
19        19. Upon the written request of an employee, to
20    withhold from the compensation of that employee any dues,
21    payments or contributions payable by such employee to any
22    labor organization as defined in the Illinois Educational
23    Labor Relations Act. Under such arrangement, an amount
24    shall be withheld from each regular payroll period which is
25    equal to the pro rata share of the annual dues plus any
26    payments or contributions, and the board shall transmit

 

 

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1    such withholdings to the specified labor organization
2    within 10 working days from the time of the withholding;
3        19a. Upon receipt of notice from the comptroller of a
4    municipality with a population of 500,000 or more, a county
5    with a population of 3,000,000 or more, the Cook County
6    Forest Preserve District, the Chicago Park District, the
7    Metropolitan Water Reclamation District, the Chicago
8    Transit Authority, or a housing authority of a municipality
9    with a population of 500,000 or more that a debt is due and
10    owing the municipality, the county, the Cook County Forest
11    Preserve District, the Chicago Park District, the
12    Metropolitan Water Reclamation District, the Chicago
13    Transit Authority, or the housing authority by an employee
14    of the Chicago Board of Education, to withhold, from the
15    compensation of that employee, the amount of the debt that
16    is due and owing and pay the amount withheld to the
17    municipality, the county, the Cook County Forest Preserve
18    District, the Chicago Park District, the Metropolitan
19    Water Reclamation District, the Chicago Transit Authority,
20    or the housing authority; provided, however, that the
21    amount deducted from any one salary or wage payment shall
22    not exceed 25% of the net amount of the payment. Before the
23    Board deducts any amount from any salary or wage of an
24    employee under this paragraph, the municipality, the
25    county, the Cook County Forest Preserve District, the
26    Chicago Park District, the Metropolitan Water Reclamation

 

 

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1    District, the Chicago Transit Authority, or the housing
2    authority shall certify that (i) the employee has been
3    afforded an opportunity for a hearing to dispute the debt
4    that is due and owing the municipality, the county, the
5    Cook County Forest Preserve District, the Chicago Park
6    District, the Metropolitan Water Reclamation District, the
7    Chicago Transit Authority, or the housing authority and
8    (ii) the employee has received notice of a wage deduction
9    order and has been afforded an opportunity for a hearing to
10    object to the order. For purposes of this paragraph, "net
11    amount" means that part of the salary or wage payment
12    remaining after the deduction of any amounts required by
13    law to be deducted and "debt due and owing" means (i) a
14    specified sum of money owed to the municipality, the
15    county, the Cook County Forest Preserve District, the
16    Chicago Park District, the Metropolitan Water Reclamation
17    District, the Chicago Transit Authority, or the housing
18    authority for services, work, or goods, after the period
19    granted for payment has expired, or (ii) a specified sum of
20    money owed to the municipality, the county, the Cook County
21    Forest Preserve District, the Chicago Park District, the
22    Metropolitan Water Reclamation District, the Chicago
23    Transit Authority, or the housing authority pursuant to a
24    court order or order of an administrative hearing officer
25    after the exhaustion of, or the failure to exhaust,
26    judicial review;

 

 

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1        20. The board is encouraged to employ a sufficient
2    number of certified school counselors to maintain a
3    student/counselor ratio of 250 to 1 by July 1, 1990. Each
4    counselor shall spend at least 75% of his work time in
5    direct contact with students and shall maintain a record of
6    such time;
7        21. To make available to students vocational and career
8    counseling and to establish 5 special career counseling
9    days for students and parents. On these days
10    representatives of local businesses and industries shall
11    be invited to the school campus and shall inform students
12    of career opportunities available to them in the various
13    businesses and industries. Special consideration shall be
14    given to counseling minority students as to career
15    opportunities available to them in various fields. For the
16    purposes of this paragraph, minority student means a person
17    who is any of the following:
18        (a) American Indian or Alaska Native (a person having
19    origins in any of the original peoples of North and South
20    America, including Central America, and who maintains
21    tribal affiliation or community attachment).
22        (b) Asian (a person having origins in any of the
23    original peoples of the Far East, Southeast Asia, or the
24    Indian subcontinent, including, but not limited to,
25    Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
26    the Philippine Islands, Thailand, and Vietnam).

 

 

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1        (c) Black or African American (a person having origins
2    in any of the black racial groups of Africa). Terms such as
3    "Haitian" or "Negro" can be used in addition to "Black or
4    African American".
5        (d) Hispanic or Latino (a person of Cuban, Mexican,
6    Puerto Rican, South or Central American, or other Spanish
7    culture or origin, regardless of race).
8        (e) Native Hawaiian or Other Pacific Islander (a person
9    having origins in any of the original peoples of Hawaii,
10    Guam, Samoa, or other Pacific Islands).
11        Counseling days shall not be in lieu of regular school
12    days;
13        22. To report to the State Board of Education the
14    annual student dropout rate and number of students who
15    graduate from, transfer from or otherwise leave bilingual
16    programs;
17        23. Except as otherwise provided in the Abused and
18    Neglected Child Reporting Act or other applicable State or
19    federal law, to permit school officials to withhold, from
20    any person, information on the whereabouts of any child
21    removed from school premises when the child has been taken
22    into protective custody as a victim of suspected child
23    abuse. School officials shall direct such person to the
24    Department of Children and Family Services, or to the local
25    law enforcement agency if appropriate;
26        24. To develop a policy, based on the current state of

 

 

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1    existing school facilities, projected enrollment and
2    efficient utilization of available resources, for capital
3    improvement of schools and school buildings within the
4    district, addressing in that policy both the relative
5    priority for major repairs, renovations and additions to
6    school facilities, and the advisability or necessity of
7    building new school facilities or closing existing schools
8    to meet current or projected demographic patterns within
9    the district;
10        25. To make available to the students in every high
11    school attendance center the ability to take all courses
12    necessary to comply with the Board of Higher Education's
13    college entrance criteria effective in 1993;
14        26. To encourage mid-career changes into the teaching
15    profession, whereby qualified professionals become
16    certified teachers, by allowing credit for professional
17    employment in related fields when determining point of
18    entry on teacher pay scale;
19        27. To provide or contract out training programs for
20    administrative personnel and principals with revised or
21    expanded duties pursuant to this Act in order to assure
22    they have the knowledge and skills to perform their duties;
23        28. To establish a fund for the prioritized special
24    needs programs, and to allocate such funds and other lump
25    sum amounts to each attendance center in a manner
26    consistent with the provisions of part 4 of Section 34-2.3.

 

 

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1    Nothing in this paragraph shall be construed to require any
2    additional appropriations of State funds for this purpose;
3        29. (Blank);
4        30. Notwithstanding any other provision of this Act or
5    any other law to the contrary, to contract with third
6    parties for services otherwise performed by employees,
7    including those in a bargaining unit, and to layoff those
8    employees upon 14 days written notice to the affected
9    employees. Those contracts may be for a period not to
10    exceed 5 years and may be awarded on a system-wide basis.
11    The board may not operate more than 30 contract schools,
12    provided that the board may operate an additional 5
13    contract turnaround schools pursuant to item (5.5) of
14    subsection (d) of Section 34-8.3 of this Code;
15        31. To promulgate rules establishing procedures
16    governing the layoff or reduction in force of employees and
17    the recall of such employees, including, but not limited
18    to, criteria for such layoffs, reductions in force or
19    recall rights of such employees and the weight to be given
20    to any particular criterion. Such criteria shall take into
21    account factors including, but not be limited to,
22    qualifications, certifications, experience, performance
23    ratings or evaluations, and any other factors relating to
24    an employee's job performance;
25        32. To develop a policy to prevent nepotism in the
26    hiring of personnel or the selection of contractors;

 

 

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1        33. To enter into a partnership agreement, as required
2    by Section 34-3.5 of this Code, and, notwithstanding any
3    other provision of law to the contrary, to promulgate
4    policies, enter into contracts, and take any other action
5    necessary to accomplish the objectives and implement the
6    requirements of that agreement; and
7        34. To establish a Labor Management Council to the
8    board comprised of representatives of the board, the chief
9    executive officer, and those labor organizations that are
10    the exclusive representatives of employees of the board and
11    to promulgate policies and procedures for the operation of
12    the Council.
13    The specifications of the powers herein granted are not to
14be construed as exclusive but the board shall also exercise all
15other powers that they may be requisite or proper for the
16maintenance and the development of a public school system, not
17inconsistent with the other provisions of this Article or
18provisions of this Code which apply to all school districts.
19    In addition to the powers herein granted and authorized to
20be exercised by the board, it shall be the duty of the board to
21review or to direct independent reviews of special education
22expenditures and services. The board shall file a report of
23such review with the General Assembly on or before May 1, 1990.
24(Source: P.A. 96-105, eff. 7-30-09; 97-227, eff. 1-1-12;
2597-396, eff. 1-1-12; 97-813, eff. 7-13-12.)
 

 

 

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1    (105 ILCS 5/34-18.30)
2    Sec. 34-18.30. Dependents of military personnel; no
3tuition charge. If, at the time of enrollment, a dependent of
4United States military personnel is housed in temporary housing
5located outside of the school district, but will be living
6within the district within 60 days after the time of initial
7enrollment, the dependent must be allowed to enroll, subject to
8the requirements of this Section, and must not be charged
9tuition. Any United States military personnel attempting to
10enroll a dependent under this Section shall provide proof that
11the dependent will be living within the district within 60 days
12after the time of initial enrollment. Proof of residency may
13include, but is not limited to, postmarked mail addressed to
14the military personnel and sent to an address located within
15the district, a lease agreement for occupancy of a residence
16located within the district, or proof of ownership of a
17residence located within the district. Non-resident dependents
18of United States military personnel attending school on a
19tuition-free basis may be counted for the purposes of
20determining the apportionment of State aid provided under
21Section 18-8.05 or 18-8.15 of this Code.
22(Source: P.A. 95-331, eff. 8-21-07.)
 
23    (105 ILCS 5/34-43.1)  (from Ch. 122, par. 34-43.1)
24    Sec. 34-43.1. (A) Limitation of noninstructional costs. It
25is the purpose of this Section to establish for the Board of

 

 

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1Education and the general superintendent of schools
2requirements and standards which maximize the proportion of
3school district resources in direct support of educational,
4program, and building maintenance and safety services for the
5pupils of the district, and which correspondingly minimize the
6amount and proportion of such resources associated with
7centralized administration, administrative support services,
8and other noninstructional services.
9    For the 1989-90 school year and for all subsequent school
10years, the Board of Education shall undertake budgetary and
11expenditure control actions which limit the administrative
12expenditures of the Board of Education to levels, as provided
13for in this Section, which represent an average of the
14administrative expenses of all school districts in this State
15not subject to Article 34.
16    (B) Certification of expenses by the State Superintendent
17of Education. The State Superintendent of Education shall
18annually certify, on or before May 1, to the Board of Education
19and the School Finance Authority, for the applicable school
20year, the following information:
21        (1) the annual expenditures of all school districts of
22    the State not subject to Article 34 properly attributable
23    to expenditure functions defined by the rules and
24    regulations of the State Board of Education as: 2210
25    (Improvement of Instructional Services); 2300 (Support
26    Services - General Administration) excluding, however,

 

 

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1    2320 (Executive Administrative Services); 2490 (Other
2    Support Services - School Administration); 2500 (Support
3    Services - Business); 2600 (Support Services - Central);
4        (2) the total annual expenditures of all school
5    districts not subject to Article 34 attributable to the
6    Education Fund, the Operations, Building and Maintenance
7    Fund, the Transportation Fund and the Illinois Municipal
8    Retirement Fund of the several districts, as defined by the
9    rules and regulations of the State Board of Education; and
10        (3) a ratio, to be called the statewide average of
11    administrative expenditures, derived by dividing the
12    expenditures certified pursuant to paragraph (B)(1) by the
13    expenditures certified pursuant to paragraph (B)(2).
14    For purposes of the annual certification of expenditures
15and ratios required by this Section, the "applicable year" of
16certification shall initially be the 1986-87 school year and,
17in sequent years, each succeeding school year.
18    The State Superintendent of Education shall consult with
19the Board of Education to ascertain whether particular
20expenditure items allocable to the administrative functions
21enumerated in paragraph (B)(1) are appropriately or
22necessarily higher in the applicable school district than in
23the rest of the State due to noncomparable factors. The State
24Superintendent shall also review the relevant cost proportions
25in other large urban school districts. The State Superintendent
26shall also review the expenditure categories in paragraph

 

 

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1(B)(1) to ascertain whether they contain school-level
2expenses. If he or she finds that adjustments to the formula
3are appropriate or necessary to establish a more fair and
4comparable standard for administrative cost for the Board of
5Education or to exclude school-level expenses, the State
6Superintendent shall recommend to the School Finance Authority
7rules and regulations adjusting particular subcategories in
8this subsection (B) or adjusting certain costs in determining
9the budget and expenditure items properly attributable to the
10functions or otherwise adjust the formula.
11    (C) Administrative expenditure limitations. The annual
12budget of the Board of Education, as adopted and implemented,
13and the related annual expenditures for the school year, shall
14reflect a limitation on administrative outlays as required by
15the following provisions, taking into account any adjustments
16established by the State Superintendent of Education: (1) the
17budget and expenditures of the Board of Education for the
181989-90 school year shall reflect a ratio of administrative
19expenditures to total expenditures equal to or less than the
20statewide average of administrative expenditures for the
211986-87 school year as certified by the State Superintendent of
22Education pursuant to paragraph (B)(3); (2) for the 1990-91
23school year and for all subsequent school years, the budget and
24expenditures of the Board of Education shall reflect a ratio of
25administrative expenditures to total expenditures equal to or
26less than the statewide average of administrative expenditures

 

 

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1certified by the State Superintendent of Education for the
2applicable year pursuant to paragraph (B)(3); (3) if for any
3school year the budget of the Board of Education reflects a
4ratio of administrative expenditures to total expenditures
5which exceeds the applicable statewide average, the Board of
6Education shall reduce expenditure items allocable to the
7administrative functions enumerated in paragraph (B)(1) such
8that the Board of Education's ratio of administrative
9expenditures to total expenditures is equal to or less than the
10applicable statewide average ratio.
11    For purposes of this Section, the ratio of administrative
12expenditures to the total expenditures of the Board of
13Education, as applied to the budget of the Board of Education,
14shall mean: the budgeted expenditure items of the Board of
15Education properly attributable to the expenditure functions
16identified in paragraph (B)(1) divided by the total budgeted
17expenditures of the Board of Education properly attributable to
18the Board of Education funds corresponding to those funds
19identified in paragraph (B)(2), exclusive of any monies
20budgeted for payment to the Public School Teachers' Pension and
21Retirement System, attributable to payments due from the
22General Funds of the State of Illinois.
23     The annual expenditure of the Board of Education for 2320
24(Executive Administrative Services) for the 1989-90 school
25year shall be no greater than the 2320 expenditure for the
261988-89 school year. The annual expenditure of the Board of

 

 

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1Education for 2320 for the 1990-91 school year and each
2subsequent school year shall be no greater than the 2320
3expenditure for the immediately preceding school year or the
41988-89 school year, whichever is less. This annual expenditure
5limitation may be adjusted in each year in an amount not to
6exceed any change effective during the applicable school year
7in salary to be paid under the collective bargaining agreement
8with instructional personnel to which the Board is a party and
9in benefit costs either required by law or such collective
10bargaining agreement.
11    (D) Cost control measures. In undertaking actions to
12control or reduce expenditure items necessitated by the
13administrative expenditure limitations of this Section, the
14Board of Education shall give priority consideration to
15reductions or cost controls with the least effect upon direct
16services to students or instructional services for pupils, and
17upon the safety and well-being of pupils, and, as applicable,
18with the particular costs or functions to which the Board of
19Education is higher than the statewide average.
20    For purposes of assuring that the cost control priorities
21of this subsection (D) are met, the State Superintendent of
22Education shall, with the assistance of the Board of Education,
23review the cost allocation practices of the Board of Education,
24and the State Superintendent of Education shall thereafter
25recommend to the School Finance Authority rules and regulations
26which define administrative areas which most impact upon the

 

 

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1direct and instructional needs of students and upon the safety
2and well-being of the pupils of the district. No position
3closed shall be reopened using State or federal categorical
4funds.
5    (E) Report of Audited Information. For the 1988-89 school
6year and for all subsequent school years, the Board of
7Education shall file with the State Board of Education the
8Annual Financial Report and its audit, as required by the rules
9of the State Board of Education. Such reports shall be filed no
10later than February 15 following the end of the school year of
11the Board of Education, beginning with the report to be filed
12no later than February 15, 1990 for the 1988-89 school year.
13    As part of the required Annual Financial Report, the Board
14of Education shall provide a detailed accounting of the central
15level, district, bureau and department costs and personnel
16included within expenditure functions included in paragraph
17(B)(1). The nature and detail of the reporting required for
18these functions shall be prescribed by the State Board of
19Education in rules and regulations. A copy of this detailed
20accounting shall also be provided annually to the School
21Finance Authority and the public. This report shall contain a
22reconciliation to the board of education's adopted budget for
23that fiscal year, specifically delineating administrative
24functions.
25    If the information required under this Section is not
26provided by the Board of Education in a timely manner, or is

 

 

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1initially or subsequently determined by the State
2Superintendent of Education to be incomplete or inaccurate, the
3State Superintendent shall, in writing, notify the Board of
4Education of reporting deficiencies. The Board of Education
5shall, within 60 days of such notice, address the reporting
6deficiencies identified. If the State Superintendent of
7Education does not receive satisfactory response to these
8reporting deficiencies within 60 days, the next payment of
9general State aid or primary State aid due the Board of
10Education under Section 18-8, and all subsequent payments,
11shall be withheld by the State Superintendent of Education
12until the enumerated deficiencies have been addressed.
13    Utilizing the Annual Financial Report, the State
14Superintendent of Education shall certify on or before May 1 to
15the School Finance Authority the Board of Education's ratio of
16administrative expenditures to total expenditures for the
171988-89 school year and for each succeeding school year. Such
18certification shall indicate the extent to which the
19administrative expenditure ratio of the Board of Education
20conformed to the limitations required in subsection (C) of this
21Section, taking into account any adjustments of the limitations
22which may have been recommended by the State Superintendent of
23Education to the School Finance Authority. In deriving the
24administrative expenditure ratio of the Chicago Board of
25Education, the State Superintendent of Education shall utilize
26the definition of this ratio prescribed in subsection (C) of

 

 

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1this Section, except that the actual expenditures of the Board
2of Education shall be substituted for budgeted expenditure
3items.
4    (F) Approval and adjustments to administrative expenditure
5limitations. The School Finance Authority organized under
6Article 34A shall monitor the Board of Education's adherence to
7the requirements of this Section. As part of its responsibility
8the School Finance Authority shall determine whether the Board
9of Education's budget for the next school year, and the
10expenditures for a prior school year, comply with the
11limitation of administrative expenditures required by this
12Section. The Board of Education and the State Board of
13Education shall provide such information as is required by the
14School Finance Authority in order for the Authority to
15determine compliance with the provisions of this Section. If
16the Authority determines that the budget proposed by the Board
17of Education does not meet the cost control requirements of
18this Section, the Board of Education shall undertake budgetary
19reductions, consistent with the requirements of this Section,
20to bring the proposed budget into compliance with such cost
21control limitations.
22    If, in formulating cost control and cost reduction
23alternatives, the Board of Education believes that meeting the
24cost control requirements of this Section related to the budget
25for the ensuing year would impair the education, safety, or
26well-being of the pupils of the school district, the Board of

 

 

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1Education may request that the School Finance Authority make
2adjustments to the limitations required by this Section. The
3Board of Education shall specify the amount, nature, and
4reasons for the relief required and shall also identify cost
5reductions which can be made in expenditure functions not
6enumerated in paragraph (B)(1), which would serve the purposes
7of this Section.
8    The School Finance Authority shall consult with the State
9Superintendent of Education concerning the reasonableness from
10an educational administration perspective of the adjustments
11sought by the Board of Education. The School Finance Authority
12shall provide an opportunity for the public to comment upon the
13reasonableness of the Board's request. If, after such
14consultation, the School Finance Authority determines that all
15or a portion of the adjustments sought by the Board of
16Education are reasonably appropriate or necessary, the
17Authority may grant such relief from the provisions of this
18Section which the Authority deems appropriate. Adjustments so
19granted apply only to the specific school year for which the
20request was made.
21    In the event that the School Finance Authority determines
22that the Board of Education has failed to achieve the required
23administrative expenditure limitations for a prior school
24year, or if the Authority determines that the Board of
25Education has not met the requirements of subsection (F), the
26Authority shall make recommendations to the Board of Education

 

 

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1concerning appropriate corrective actions. If the Board of
2Education fails to provide adequate assurance to the Authority
3that appropriate corrective actions have been or will be taken,
4the Authority may, within 60 days thereafter, require the board
5to adjust its current budget to correct for the prior year's
6shortage or may recommend to the members of the General
7Assembly and the Governor such sanctions or remedial actions as
8will serve to deter any further such failures on the part of
9the Board of Education.
10    To assist the Authority in its monitoring
11responsibilities, the Board of Education shall provide such
12reports and information as are from time to time required by
13the Authority.
14    (G) Independent reviews of administrative expenditures.
15The School Finance Authority may direct independent reviews of
16the administrative and administrative support expenditures and
17services and other non-instructional expenditure functions of
18the Board of Education. The Board of Education shall afford
19full cooperation to the School Finance Authority in such review
20activity. The purpose of such reviews shall be to verify
21specific targets for improved operating efficiencies of the
22Board of Education, to identify other areas of potential
23efficiencies, and to assure full and proper compliance by the
24Board of Education with all requirements of this Section.
25    In the conduct of reviews under this subsection, the
26Authority may request the assistance and consultation of the

 

 

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1State Superintendent of Education with regard to questions of
2efficiency and effectiveness in educational administration.
3    (H) Reports to Governor and General Assembly. On or before
4May 1, 1991 and no less frequently than yearly thereafter, the
5School Finance Authority shall provide to the Governor, the
6State Board of Education, and the members of the General
7Assembly an annual report, as outlined in Section 34A-606,
8which includes the following information: (1) documenting the
9compliance or non-compliance of the Board of Education with the
10requirements of this Section; (2) summarizing the costs,
11findings, and recommendations of any reviews directed by the
12School Finance Authority, and the response to such
13recommendations made by the Board of Education; and (3)
14recommending sanctions or legislation necessary to fulfill the
15intent of this Section.
16(Source: P.A. 86-124; 86-1477.)
 
17    Section 950. The Educational Opportunity for Military
18Children Act is amended by changing Section 25 as follows:
 
19    (105 ILCS 70/25)
20    (Section scheduled to be repealed on June 30, 2015)
21    Sec. 25. Tuition for transfer students.
22    (a) For purposes of this Section, "non-custodial parent"
23means a person who has temporary custody of the child of active
24duty military personnel and who is responsible for making

 

 

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1decisions for that child.
2    (b) If a student who is a child of active duty military
3personnel is (i) placed with a non-custodial parent and (ii) as
4a result of placement, must attend a non-resident school
5district, then the student must not be charged the tuition of
6the school that the student attends as a result of placement
7with the non-custodial parent and the student must be counted
8in the calculation of average daily attendance under Section
918-8.05 or 18-8.15 of the School Code.
10(Source: P.A. 96-953, eff. 6-28-10.)
 
11    Section 955. The Illinois Public Aid Code is amended by
12changing Section 5-16.4 as follows:
 
13    (305 ILCS 5/5-16.4)
14    Sec. 5-16.4. Medical Assistance Provider Payment Fund.
15    (a) There is created in the State treasury the Medical
16Assistance Provider Payment Fund. Interest earned by the Fund
17shall be credited to the Fund.
18    (b) The Fund is created for the purpose of disbursing
19moneys as follows:
20        (1) For medical services provided to recipients of aid
21    under Articles V, VI, and XII.
22        (2) For payment of administrative expenses incurred by
23    the Illinois Department or its agent in performing the
24    activities authorized by this Section.

 

 

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1        (3) For making transfers to the General Obligation Bond
2    Retirement and Interest Fund, as those transfers are
3    authorized in the proceedings authorizing debt under the
4    Medicaid Liability Liquidity Borrowing Act, but transfers
5    made under this paragraph (3) may not exceed the principal
6    amount of debt issued under that Act.
7    Disbursements from the Fund, other than transfers to the
8General Obligation Bond Retirement and Interest Fund (which
9shall be made in accordance with the provisions of the Medicaid
10Liability Liquidity Borrowing Act), shall be by warrants drawn
11by the State Comptroller upon receipt of vouchers duly executed
12and certified by the Illinois Department.
13    (c) The Fund shall consist of the following:
14        (1) All federal matching funds received by the Illinois
15    Department as a result of expenditures made by the Illinois
16    Department that are attributable to moneys deposited into
17    the Fund.
18        (2) Proceeds from any short-term borrowing directed to
19    the Fund by the Governor pursuant to the Medicaid Liability
20    Liquidity Borrowing Act.
21        (3) Amounts transferred into the Fund under subsection
22    (d) of this Section.
23        (4) All other moneys received for the Fund from any
24    other source, including interest earned on those moneys.
25    (d) Beginning July 1, 1995, on the 13th and 26th days of
26each month the State Comptroller and Treasurer shall transfer

 

 

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1from the General Revenue Fund to the Medical Assistance
2Provider Payment Fund an amount equal to 1/48th of the annual
3Medical Assistance appropriation to the Department of
4Healthcare and Family Services (formerly Illinois Department
5of Public Aid) from the Medical Assistance Provider Payment
6Fund, plus cumulative deficiencies from those prior transfers.
7In addition to those transfers, the State Comptroller and
8Treasurer may transfer from the General Revenue Fund to the
9Medical Assistance Provider Payment Fund as much as is
10necessary to pay claims pursuant to the new twice-monthly
11payment schedule established in Section 5-16.5 and to avoid
12interest liabilities under the State Prompt Payment Act. No
13transfers made pursuant to this subsection shall interfere with
14the timely payment of the general State aid or primary State
15aid payment made pursuant to Section 18-11 of the School Code.
16(Source: P.A. 95-331, eff. 8-21-07.)
 
17    Section 995. Savings clause. Any repeal or amendment made
18by this Act shall not affect or impair any of the following:
19suits pending or rights existing at the time this Act takes
20effect; any grant or conveyance made or right acquired or cause
21of action now existing under any Section, Article, or Act
22repealed or amended by this Act; the validity of any bonds or
23other obligations issued or sold and constituting valid
24obligations of the issuing authority at the time this Act takes
25effect; the validity of any contract; the validity of any tax

 

 

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1levied under any law in effect prior to the effective date of
2this Act; or any offense committed, act done, penalty,
3punishment, or forfeiture incurred or any claim, right, power,
4or remedy accrued under any law in effect prior to the
5effective date of this Act.
 
6    Section 999. Effective date. This Act takes effect upon
7becoming law.