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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