Sen. Andy Manar

Filed: 4/6/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 231

2    AMENDMENT NO. ______. Amend Senate Bill 231 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the Better
5Funding for Better Schools Act.
 
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

 

 

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

 

 

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

 

 

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1area in the same manner and proportion as the most recent
2distribution by the county collector to those taxing districts
3of real property taxes from real property in the economic
4development project area.
5    Upon the payment of all economic development project costs,
6retirement of obligations and the distribution of any excess
7monies pursuant to this Section the municipality shall adopt an
8ordinance dissolving the special tax allocation fund for the
9economic development project area, terminating the economic
10development project area, and terminating the use of tax
11increment allocation financing for the economic development
12project area. Thereafter the rates of the taxing districts
13shall be extended and taxes levied, collected and distributed
14in the manner applicable in the absence of the adoption of tax
15increment allocation financing.
16    Nothing in this Section shall be construed as relieving
17property in economic development project areas from being
18assessed as provided in the Property Tax Code, or as relieving
19owners of that property from paying a uniform rate of taxes, as
20required by Section 4 of Article IX of the Illinois
21Constitution.
22(Source: P.A. 98-463, eff. 8-16-13.)
 
23    Section 910. The State Finance Act is amended by changing
24Section 13.2 as follows:
 

 

 

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1    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
2    Sec. 13.2. Transfers among line item appropriations.
3    (a) Transfers among line item appropriations from the same
4treasury fund for the objects specified in this Section may be
5made in the manner provided in this Section when the balance
6remaining in one or more such line item appropriations is
7insufficient for the purpose for which the appropriation was
8made.
9    (a-1) No transfers may be made from one agency to another
10agency, nor may transfers be made from one institution of
11higher education to another institution of higher education
12except as provided by subsection (a-4).
13    (a-2) Except as otherwise provided in this Section,
14transfers may be made only among the objects of expenditure
15enumerated in this Section, except that no funds may be
16transferred from any appropriation for personal services, from
17any appropriation for State contributions to the State
18Employees' Retirement System, from any separate appropriation
19for employee retirement contributions paid by the employer, nor
20from any appropriation for State contribution for employee
21group insurance. During State fiscal year 2005, an agency may
22transfer amounts among its appropriations within the same
23treasury fund for personal services, employee retirement
24contributions paid by employer, and State Contributions to
25retirement systems; notwithstanding and in addition to the
26transfers authorized in subsection (c) of this Section, the

 

 

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1fiscal year 2005 transfers authorized in this sentence may be
2made in an amount not to exceed 2% of the aggregate amount
3appropriated to an agency within the same treasury fund. During
4State fiscal year 2007, the Departments of Children and Family
5Services, Corrections, Human Services, and Juvenile Justice
6may transfer amounts among their respective appropriations
7within the same treasury fund for personal services, employee
8retirement contributions paid by employer, and State
9contributions to retirement systems. During State fiscal year
102010, the Department of Transportation may transfer amounts
11among their respective appropriations within the same treasury
12fund for personal services, employee retirement contributions
13paid by employer, and State contributions to retirement
14systems. During State fiscal years 2010 and 2014 only, an
15agency may transfer amounts among its respective
16appropriations within the same treasury fund for personal
17services, employee retirement contributions paid by employer,
18and State contributions to retirement systems.
19Notwithstanding, and in addition to, the transfers authorized
20in subsection (c) of this Section, these transfers may be made
21in an amount not to exceed 2% of the aggregate amount
22appropriated to an agency within the same treasury fund.
23    (a-2.5) During State fiscal year 2015 only, the State's
24Attorneys Appellate Prosecutor may transfer amounts among its
25respective appropriations contained in operational line items
26within the same treasury fund. Notwithstanding, and in addition

 

 

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1to, the transfers authorized in subsection (c) of this Section,
2these transfers may be made in an amount not to exceed 4% of
3the aggregate amount appropriated to the State's Attorneys
4Appellate Prosecutor within the same treasury fund.
5    (a-3) Further, if an agency receives a separate
6appropriation for employee retirement contributions paid by
7the employer, any transfer by that agency into an appropriation
8for personal services must be accompanied by a corresponding
9transfer into the appropriation for employee retirement
10contributions paid by the employer, in an amount sufficient to
11meet the employer share of the employee contributions required
12to be remitted to the retirement system.
13    (a-4) Long-Term Care Rebalancing. The Governor may
14designate amounts set aside for institutional services
15appropriated from the General Revenue Fund or any other State
16fund that receives monies for long-term care services to be
17transferred to all State agencies responsible for the
18administration of community-based long-term care programs,
19including, but not limited to, community-based long-term care
20programs administered by the Department of Healthcare and
21Family Services, the Department of Human Services, and the
22Department on Aging, provided that the Director of Healthcare
23and Family Services first certifies that the amounts being
24transferred are necessary for the purpose of assisting persons
25in or at risk of being in institutional care to transition to
26community-based settings, including the financial data needed

 

 

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1to prove the need for the transfer of funds. The total amounts
2transferred shall not exceed 4% in total of the amounts
3appropriated from the General Revenue Fund or any other State
4fund that receives monies for long-term care services for each
5fiscal year. A notice of the fund transfer must be made to the
6General Assembly and posted at a minimum on the Department of
7Healthcare and Family Services website, the Governor's Office
8of Management and Budget website, and any other website the
9Governor sees fit. These postings shall serve as notice to the
10General Assembly of the amounts to be transferred. Notice shall
11be given at least 30 days prior to transfer.
12    (b) In addition to the general transfer authority provided
13under subsection (c), the following agencies have the specific
14transfer authority granted in this subsection:
15    The Department of Healthcare and Family Services is
16authorized to make transfers representing savings attributable
17to not increasing grants due to the births of additional
18children from line items for payments of cash grants to line
19items for payments for employment and social services for the
20purposes outlined in subsection (f) of Section 4-2 of the
21Illinois Public Aid Code.
22    The Department of Children and Family Services is
23authorized to make transfers not exceeding 2% of the aggregate
24amount appropriated to it within the same treasury fund for the
25following line items among these same line items: Foster Home
26and Specialized Foster Care and Prevention, Institutions and

 

 

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1Group Homes and Prevention, and Purchase of Adoption and
2Guardianship Services.
3    The Department on Aging is authorized to make transfers not
4exceeding 2% of the aggregate amount appropriated to it within
5the same treasury fund for the following Community Care Program
6line items among these same line items: purchase of services
7covered by the Community Care Program and Comprehensive Case
8Coordination.
9    The State Treasurer is authorized to make transfers among
10line item appropriations from the Capital Litigation Trust
11Fund, with respect to costs incurred in fiscal years 2002 and
122003 only, when the balance remaining in one or more such line
13item appropriations is insufficient for the purpose for which
14the appropriation was made, provided that no such transfer may
15be made unless the amount transferred is no longer required for
16the purpose for which that appropriation was made.
17    The State Board of Education is authorized to make
18transfers from line item appropriations within the same
19treasury fund for General State Aid, and General State Aid -
20Hold Harmless, Primary State Aid, and Hold Harmless State
21Funding, provided that no such transfer may be made unless the
22amount transferred is no longer required for the purpose for
23which that appropriation was made, to the line item
24appropriation for Transitional Assistance when the balance
25remaining in such line item appropriation is insufficient for
26the purpose for which the appropriation was made.

 

 

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1    The State Board of Education is authorized to make
2transfers between the following line item appropriations
3within the same treasury fund: Disabled Student
4Services/Materials (Section 14-13.01 of the School Code),
5Disabled Student Transportation Reimbursement (Section
614-13.01 of the School Code), Disabled Student Tuition -
7Private Tuition (Section 14-7.02 of the School Code),
8Extraordinary Special Education (Section 14-7.02b of the
9School Code), Reimbursement for Free Lunch/Breakfast Program,
10Summer School Payments (Section 18-4.3 of the School Code), and
11Transportation - Regular/Vocational Reimbursement (Section
1229-5 of the School Code). Such transfers shall be made only
13when the balance remaining in one or more such line item
14appropriations is insufficient for the purpose for which the
15appropriation was made and provided that no such transfer may
16be made unless the amount transferred is no longer required for
17the purpose for which that appropriation was made.
18    The Department of Healthcare and Family Services is
19authorized to make transfers not exceeding 4% of the aggregate
20amount appropriated to it, within the same treasury fund, among
21the various line items appropriated for Medical Assistance.
22    (c) The sum of such transfers for an agency in a fiscal
23year shall not exceed 2% of the aggregate amount appropriated
24to it within the same treasury fund for the following objects:
25Personal Services; Extra Help; Student and Inmate
26Compensation; State Contributions to Retirement Systems; State

 

 

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1Contributions to Social Security; State Contribution for
2Employee Group Insurance; Contractual Services; Travel;
3Commodities; Printing; Equipment; Electronic Data Processing;
4Operation of Automotive Equipment; Telecommunications
5Services; Travel and Allowance for Committed, Paroled and
6Discharged Prisoners; Library Books; Federal Matching Grants
7for Student Loans; Refunds; Workers' Compensation,
8Occupational Disease, and Tort Claims; and, in appropriations
9to institutions of higher education, Awards and Grants.
10Notwithstanding the above, any amounts appropriated for
11payment of workers' compensation claims to an agency to which
12the authority to evaluate, administer and pay such claims has
13been delegated by the Department of Central Management Services
14may be transferred to any other expenditure object where such
15amounts exceed the amount necessary for the payment of such
16claims.
17    (c-1) Special provisions for State fiscal year 2003.
18Notwithstanding any other provision of this Section to the
19contrary, for State fiscal year 2003 only, transfers among line
20item appropriations to an agency from the same treasury fund
21may be made provided that the sum of such transfers for an
22agency in State fiscal year 2003 shall not exceed 3% of the
23aggregate amount appropriated to that State agency for State
24fiscal year 2003 for the following objects: personal services,
25except that no transfer may be approved which reduces the
26aggregate appropriations for personal services within an

 

 

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1agency; extra help; student and inmate compensation; State
2contributions to retirement systems; State contributions to
3social security; State contributions for employee group
4insurance; contractual services; travel; commodities;
5printing; equipment; electronic data processing; operation of
6automotive equipment; telecommunications services; travel and
7allowance for committed, paroled, and discharged prisoners;
8library books; federal matching grants for student loans;
9refunds; workers' compensation, occupational disease, and tort
10claims; and, in appropriations to institutions of higher
11education, awards and grants.
12    (c-2) Special provisions for State fiscal year 2005.
13Notwithstanding subsections (a), (a-2), and (c), for State
14fiscal year 2005 only, transfers may be made among any line
15item appropriations from the same or any other treasury fund
16for any objects or purposes, without limitation, when the
17balance remaining in one or more such line item appropriations
18is insufficient for the purpose for which the appropriation was
19made, provided that the sum of those transfers by a State
20agency shall not exceed 4% of the aggregate amount appropriated
21to that State agency for fiscal year 2005.
22    (c-3) Special provisions for State fiscal year 2015.
23Notwithstanding any other provision of this Section, for State
24fiscal year 2015, transfers among line item appropriations to a
25State agency from the same State treasury fund may be made for
26operational or lump sum expenses only, provided that the sum of

 

 

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1such transfers for a State agency in State fiscal year 2015
2shall not exceed 4% of the aggregate amount appropriated to
3that State agency for operational or lump sum expenses for
4State fiscal year 2015. For the purpose of this subsection,
5"operational or lump sum expenses" includes the following
6objects: personal services; extra help; student and inmate
7compensation; State contributions to retirement systems; State
8contributions to social security; State contributions for
9employee group insurance; contractual services; travel;
10commodities; printing; equipment; electronic data processing;
11operation of automotive equipment; telecommunications
12services; travel and allowance for committed, paroled, and
13discharged prisoners; library books; federal matching grants
14for student loans; refunds; workers' compensation,
15occupational disease, and tort claims; lump sum and other
16purposes; and lump sum operations. For the purpose of this
17subsection (c-3), "State agency" does not include the Attorney
18General, the Secretary of State, the Comptroller, the
19Treasurer, or the legislative or judicial branches.
20    (d) Transfers among appropriations made to agencies of the
21Legislative and Judicial departments and to the
22constitutionally elected officers in the Executive branch
23require the approval of the officer authorized in Section 10 of
24this Act to approve and certify vouchers. Transfers among
25appropriations made to the University of Illinois, Southern
26Illinois University, Chicago State University, Eastern

 

 

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1Illinois University, Governors State University, Illinois
2State University, Northeastern Illinois University, Northern
3Illinois University, Western Illinois University, the Illinois
4Mathematics and Science Academy and the Board of Higher
5Education require the approval of the Board of Higher Education
6and the Governor. Transfers among appropriations to all other
7agencies require the approval of the Governor.
8    The officer responsible for approval shall certify that the
9transfer is necessary to carry out the programs and purposes
10for which the appropriations were made by the General Assembly
11and shall transmit to the State Comptroller a certified copy of
12the approval which shall set forth the specific amounts
13transferred so that the Comptroller may change his records
14accordingly. The Comptroller shall furnish the Governor with
15information copies of all transfers approved for agencies of
16the Legislative and Judicial departments and transfers
17approved by the constitutionally elected officials of the
18Executive branch other than the Governor, showing the amounts
19transferred and indicating the dates such changes were entered
20on the Comptroller's records.
21    (e) The State Board of Education, in consultation with the
22State Comptroller, may transfer line item appropriations for
23General State Aid or Primary State Aid between the Common
24School Fund and the Education Assistance Fund. With the advice
25and consent of the Governor's Office of Management and Budget,
26the State Board of Education, in consultation with the State

 

 

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1Comptroller, may transfer line item appropriations between the
2General Revenue Fund and the Education Assistance Fund for the
3following programs:
4        (1) Disabled Student Personnel Reimbursement (Section
5    14-13.01 of the School Code);
6        (2) Disabled Student Transportation Reimbursement
7    (subsection (b) of Section 14-13.01 of the School Code);
8        (3) Disabled Student Tuition - Private Tuition
9    (Section 14-7.02 of the School Code);
10        (4) Extraordinary Special Education (Section 14-7.02b
11    of the School Code);
12        (5) Reimbursement for Free Lunch/Breakfast Programs;
13        (6) Summer School Payments (Section 18-4.3 of the
14    School Code);
15        (7) Transportation - Regular/Vocational Reimbursement
16    (Section 29-5 of the School Code);
17        (8) Regular Education Reimbursement (Section 18-3 of
18    the School Code); and
19        (9) Special Education Reimbursement (Section 14-7.03
20    of the School Code).
21(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
22eff. 3-26-15.)
 
23    Section 915. The Property Tax Code is amended by changing
24Sections 18-200 and 18-249 as follows:
 

 

 

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1    (35 ILCS 200/18-200)
2    Sec. 18-200. School Code. A school district's State aid
3shall not be reduced under the computation under subsections
45(a) through 5(h) of Part A of Section 18-8 of the School Code
5or under subsection (e) of Section 18-8.15 of the School Code
6due to the operating tax rate falling from above the minimum
7requirement of that Section of the School Code to below the
8minimum requirement of that Section of the School Code due to
9the operation of this Law.
10(Source: P.A. 87-17; 88-455.)
 
11    (35 ILCS 200/18-249)
12    Sec. 18-249. Miscellaneous provisions.
13    (a) Certification of new property. For the 1994 levy year,
14the chief county assessment officer shall certify to the county
15clerk, after all changes by the board of review or board of
16appeals, as the case may be, the assessed value of new property
17by taxing district for the 1994 levy year under rules
18promulgated by the Department.
19    (b) School Code. A school district's State aid shall not be
20reduced under the computation under subsections 5(a) through
215(h) of Part A of Section 18-8 of the School Code or under
22subsection (e) of Section 18-8.15 of the School Code due to the
23operating tax rate falling from above the minimum requirement
24of that Section of the School Code to below the minimum
25requirement of that Section of the School Code due to the

 

 

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1operation of this Law.
2    (c) Rules. The Department shall make and promulgate
3reasonable rules relating to the administration of the purposes
4and provisions of Sections 18-246 through 18-249 as may be
5necessary or appropriate.
6(Source: P.A. 89-1, eff. 2-12-95.)
 
7    Section 917. The Illinois Pension Code is amended by
8changing Sections 16-158 and 17-127 as follows:
 
9    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
10    (Text of Section WITH the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 16-158. Contributions by State and other employing
13units.
14    (a) The State shall make contributions to the System by
15means of appropriations from the Common School Fund and other
16State funds of amounts which, together with other employer
17contributions, employee contributions, investment income, and
18other income, will be sufficient to meet the cost of
19maintaining and administering the System on a 100% funded basis
20in accordance with actuarial recommendations by the end of
21State fiscal year 2044.
22    The Board shall determine the amount of State contributions
23required for each fiscal year on the basis of the actuarial
24tables and other assumptions adopted by the Board and the

 

 

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1recommendations of the actuary, using the formula in subsection
2(b-3).
3    (a-1) Annually, on or before November 15 through November
415, 2011, the Board shall certify to the Governor the amount of
5the required State contribution for the coming fiscal year. The
6certification under this subsection (a-1) shall include a copy
7of the actuarial recommendations upon which it is based.
8    On or before May 1, 2004, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2005, taking
11into account the amounts appropriated to and received by the
12System under subsection (d) of Section 7.2 of the General
13Obligation Bond Act.
14    On or before July 1, 2005, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2006, taking
17into account the changes in required State contributions made
18by this amendatory Act of the 94th General Assembly.
19    On or before April 1, 2011, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2011, applying
22the changes made by Public Act 96-889 to the System's assets
23and liabilities as of June 30, 2009 as though Public Act 96-889
24was approved on that date.
25    (a-5) On or before November 1 of each year, beginning
26November 1, 2012, the Board shall submit to the State Actuary,

 

 

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1the Governor, and the General Assembly a proposed certification
2of the amount of the required State contribution to the System
3for the next fiscal year, along with all of the actuarial
4assumptions, calculations, and data upon which that proposed
5certification is based. On or before January 1 of each year,
6beginning January 1, 2013, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions.
11    On or before January 15, 2013 and each January 15
12thereafter, the Board shall certify to the Governor and the
13General Assembly the amount of the required State contribution
14for the next fiscal year. The certification shall include a
15copy of the actuarial recommendations upon which it is based
16and shall specifically identify the System's projected State
17normal cost for that fiscal year. The Board's certification
18must note any deviations from the State Actuary's recommended
19changes, the reason or reasons for not following the State
20Actuary's recommended changes, and the fiscal impact of not
21following the State Actuary's recommended changes on the
22required State contribution.
23    (a-10) For purposes of Section (c-5) of Section 20 of the
24Budget Stabilization Act, on or before November 1 of each year
25beginning November 1, 2014, the Board shall determine the
26amount of the State contribution to the System that would have

 

 

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1been required for the next fiscal year if this amendatory Act
2of the 98th General Assembly had not taken effect, using the
3best and most recent available data but based on the law in
4effect on May 31, 2014. The Board shall submit to the State
5Actuary, the Governor, and the General Assembly a proposed
6certification, along with the relevant law, actuarial
7assumptions, calculations, and data upon which that
8certification is based. On or before January 1, 2015 and every
9January 1 thereafter, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification. On or before January 15, 2015 and every January
141 thereafter, the Board shall certify to the Governor and the
15General Assembly the amount of the State contribution to the
16System that would have been required for the next fiscal year
17if this amendatory Act of the 98th General Assembly had not
18taken effect, using the best and most recent available data but
19based on the law in effect on May 31, 2014. The Board's
20certification must note any deviations from the State Actuary's
21recommended changes, the reason or reasons for not following
22the State Actuary's recommended changes, and the impact of not
23following the State Actuary's recommended changes.
24    (b) Through State fiscal year 1995, the State contributions
25shall be paid to the System in accordance with Section 18-7 of
26the School Code.

 

 

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1    (b-1) Beginning in State fiscal year 1996, on the 15th day
2of each month, or as soon thereafter as may be practicable, the
3Board shall submit vouchers for payment of State contributions
4to the System, in a total monthly amount of one-twelfth of the
5required annual State contribution certified under subsection
6(a-1). From the effective date of this amendatory Act of the
793rd General Assembly through June 30, 2004, the Board shall
8not submit vouchers for the remainder of fiscal year 2004 in
9excess of the fiscal year 2004 certified contribution amount
10determined under this Section after taking into consideration
11the transfer to the System under subsection (a) of Section
126z-61 of the State Finance Act. These vouchers shall be paid by
13the State Comptroller and Treasurer by warrants drawn on the
14funds appropriated to the System for that fiscal year.
15    If in any month the amount remaining unexpended from all
16other appropriations to the System for the applicable fiscal
17year (including the appropriations to the System under Section
188.12 of the State Finance Act and Section 1 of the State
19Pension Funds Continuing Appropriation Act) is less than the
20amount lawfully vouchered under this subsection, the
21difference shall be paid from the Common School Fund under the
22continuing appropriation authority provided in Section 1.1 of
23the State Pension Funds Continuing Appropriation Act.
24    (b-2) Allocations from the Common School Fund apportioned
25to school districts not coming under this System shall not be
26diminished or affected by the provisions of this Article.

 

 

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1    (b-3) For State fiscal years 2015 through 2044, the minimum
2contribution to the System to be made by the State for each
3fiscal year shall be an amount determined by the System to be
4equal to the sum of (1) the State's portion of the projected
5normal cost for that fiscal year, plus (2) an amount sufficient
6to bring the total assets of the System up to 100% of the total
7actuarial liabilities of the System by the end of State fiscal
8year 2044. In making these determinations, the required State
9contribution shall be calculated each year as a level
10percentage of payroll over the years remaining to and including
11fiscal year 2044 and shall be determined under the projected
12unit cost method for fiscal year 2015 and under the entry age
13normal actuarial cost method for fiscal years 2016 through
142044.
15    For State fiscal years 2012 through 2014, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18sufficient to bring the total assets of the System up to 90% of
19the total actuarial liabilities of the System by the end of
20State fiscal year 2045. In making these determinations, the
21required State contribution shall be calculated each year as a
22level percentage of payroll over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    For State fiscal years 1996 through 2005, the State
26contribution to the System, as a percentage of the applicable

 

 

09900SB0231sam001- 23 -LRB099 03162 NHT 47157 a

1employee payroll, shall be increased in equal annual increments
2so that by State fiscal year 2011, the State is contributing at
3the rate required under this Section; except that in the
4following specified State fiscal years, the State contribution
5to the System shall not be less than the following indicated
6percentages of the applicable employee payroll, even if the
7indicated percentage will produce a State contribution in
8excess of the amount otherwise required under this subsection
9and subsection (a), and notwithstanding any contrary
10certification made under subsection (a-1) before the effective
11date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
12in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
132003; and 13.56% in FY 2004.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2006 is
16$534,627,700.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2007 is
19$738,014,500.
20    For each of State fiscal years 2008 through 2009, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23from the required State contribution for State fiscal year
242007, so that by State fiscal year 2011, the State is
25contributing at the rate otherwise required under this Section.
26    Notwithstanding any other provision of this Article, the

 

 

09900SB0231sam001- 24 -LRB099 03162 NHT 47157 a

1total required State contribution for State fiscal year 2010 is
2$2,089,268,000 and shall be made from the proceeds of bonds
3sold in fiscal year 2010 pursuant to Section 7.2 of the General
4Obligation Bond Act, less (i) the pro rata share of bond sale
5expenses determined by the System's share of total bond
6proceeds, (ii) any amounts received from the Common School Fund
7in fiscal year 2010, and (iii) any reduction in bond proceeds
8due to the issuance of discounted bonds, if applicable.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2011 is
11the amount recertified by the System on or before April 1, 2011
12pursuant to subsection (a-1) of this Section and shall be made
13from the proceeds of bonds sold in fiscal year 2011 pursuant to
14Section 7.2 of the General Obligation Bond Act, less (i) the
15pro rata share of bond sale expenses determined by the System's
16share of total bond proceeds, (ii) any amounts received from
17the Common School Fund in fiscal year 2011, and (iii) any
18reduction in bond proceeds due to the issuance of discounted
19bonds, if applicable. This amount shall include, in addition to
20the amount certified by the System, an amount necessary to meet
21employer contributions required by the State as an employer
22under paragraph (e) of this Section, which may also be used by
23the System for contributions required by paragraph (a) of
24Section 16-127.
25    Beginning in State fiscal year 2045, the minimum State
26contribution for each fiscal year shall be the amount needed to

 

 

09900SB0231sam001- 25 -LRB099 03162 NHT 47157 a

1maintain the total assets of the System at 100% of the total
2actuarial liabilities of the System.
3    Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 100%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15    Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter through State
18fiscal year 2014, as calculated under this Section and
19certified under subsection (a-1), shall not exceed an amount
20equal to (i) the amount of the required State contribution that
21would have been calculated under this Section for that fiscal
22year if the System had not received any payments under
23subsection (d) of Section 7.2 of the General Obligation Bond
24Act, minus (ii) the portion of the State's total debt service
25payments for that fiscal year on the bonds issued in fiscal
26year 2003 for the purposes of that Section 7.2, as determined

 

 

09900SB0231sam001- 26 -LRB099 03162 NHT 47157 a

1and certified by the Comptroller, that is the same as the
2System's portion of the total moneys distributed under
3subsection (d) of Section 7.2 of the General Obligation Bond
4Act. In determining this maximum for State fiscal years 2008
5through 2010, however, the amount referred to in item (i) shall
6be increased, as a percentage of the applicable employee
7payroll, in equal increments calculated from the sum of the
8required State contribution for State fiscal year 2007 plus the
9applicable portion of the State's total debt service payments
10for fiscal year 2007 on the bonds issued in fiscal year 2003
11for the purposes of Section 7.2 of the General Obligation Bond
12Act, so that, by State fiscal year 2011, the State is
13contributing at the rate otherwise required under this Section.
14    (c) Payment of the required State contributions and of all
15pensions, retirement annuities, death benefits, refunds, and
16other benefits granted under or assumed by this System, and all
17expenses in connection with the administration and operation
18thereof, are obligations of the State.
19    If members are paid from special trust or federal funds
20which are administered by the employing unit, whether school
21district or other unit, the employing unit shall pay to the
22System from such funds the full accruing retirement costs based
23upon that service, which, beginning July 1, 2016 2014, shall be
24at a rate, expressed as a percentage of salary, equal to the
25total employer's minimum contribution to the System to be made
26by the State for that fiscal year, including both normal cost

 

 

09900SB0231sam001- 27 -LRB099 03162 NHT 47157 a

1and unfunded liability components, expressed as a percentage of
2payroll, as determined by the System under subsection (b-3) of
3this Section. Employer contributions, based on salary paid to
4members from federal funds, may be forwarded by the
5distributing agency of the State of Illinois to the System
6prior to allocation, in an amount determined in accordance with
7guidelines established by such agency and the System. Any
8contribution for fiscal year 2015 collected as a result of the
9change made by this amendatory Act of the 98th General Assembly
10shall be considered a State contribution under subsection (b-3)
11of this Section.
12    (d) Effective July 1, 1986, any employer of a teacher as
13defined in paragraph (8) of Section 16-106 shall pay the
14employer's normal cost of benefits based upon the teacher's
15service, in addition to employee contributions, as determined
16by the System. Such employer contributions shall be forwarded
17monthly in accordance with guidelines established by the
18System.
19    However, with respect to benefits granted under Section
2016-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
21of Section 16-106, the employer's contribution shall be 12%
22(rather than 20%) of the member's highest annual salary rate
23for each year of creditable service granted, and the employer
24shall also pay the required employee contribution on behalf of
25the teacher. For the purposes of Sections 16-133.4 and
2616-133.5, a teacher as defined in paragraph (8) of Section

 

 

09900SB0231sam001- 28 -LRB099 03162 NHT 47157 a

116-106 who is serving in that capacity while on leave of
2absence from another employer under this Article shall not be
3considered an employee of the employer from which the teacher
4is on leave.
5    (e) Beginning July 1, 1998, every employer of a teacher
6shall pay to the System an employer contribution computed as
7follows:
8        (1) Beginning July 1, 1998 through June 30, 1999, the
9    employer contribution shall be equal to 0.3% of each
10    teacher's salary.
11        (2) Beginning July 1, 1999 and thereafter, the employer
12    contribution shall be equal to 0.58% of each teacher's
13    salary.
14The school district or other employing unit may pay these
15employer contributions out of any source of funding available
16for that purpose and shall forward the contributions to the
17System on the schedule established for the payment of member
18contributions.
19    These employer contributions are intended to offset a
20portion of the cost to the System of the increases in
21retirement benefits resulting from this amendatory Act of 1998.
22    Each employer of teachers is entitled to a credit against
23the contributions required under this subsection (e) with
24respect to salaries paid to teachers for the period January 1,
252002 through June 30, 2003, equal to the amount paid by that
26employer under subsection (a-5) of Section 6.6 of the State

 

 

09900SB0231sam001- 29 -LRB099 03162 NHT 47157 a

1Employees Group Insurance Act of 1971 with respect to salaries
2paid to teachers for that period.
3    The additional 1% employee contribution required under
4Section 16-152 by this amendatory Act of 1998 is the
5responsibility of the teacher and not the teacher's employer,
6unless the employer agrees, through collective bargaining or
7otherwise, to make the contribution on behalf of the teacher.
8    If an employer is required by a contract in effect on May
91, 1998 between the employer and an employee organization to
10pay, on behalf of all its full-time employees covered by this
11Article, all mandatory employee contributions required under
12this Article, then the employer shall be excused from paying
13the employer contribution required under this subsection (e)
14for the balance of the term of that contract. The employer and
15the employee organization shall jointly certify to the System
16the existence of the contractual requirement, in such form as
17the System may prescribe. This exclusion shall cease upon the
18termination, extension, or renewal of the contract at any time
19after May 1, 1998.
20    (f) If the amount of a teacher's salary for any school year
21used to determine final average salary exceeds the member's
22annual full-time salary rate with the same employer for the
23previous school year by more than 6%, the teacher's employer
24shall pay to the System, in addition to all other payments
25required under this Section and in accordance with guidelines
26established by the System, the present value of the increase in

 

 

09900SB0231sam001- 30 -LRB099 03162 NHT 47157 a

1benefits resulting from the portion of the increase in salary
2that is in excess of 6%. This present value shall be computed
3by the System on the basis of the actuarial assumptions and
4tables used in the most recent actuarial valuation of the
5System that is available at the time of the computation. If a
6teacher's salary for the 2005-2006 school year is used to
7determine final average salary under this subsection (f), then
8the changes made to this subsection (f) by Public Act 94-1057
9shall apply in calculating whether the increase in his or her
10salary is in excess of 6%. For the purposes of this Section,
11change in employment under Section 10-21.12 of the School Code
12on or after June 1, 2005 shall constitute a change in employer.
13The System may require the employer to provide any pertinent
14information or documentation. The changes made to this
15subsection (f) by this amendatory Act of the 94th General
16Assembly apply without regard to whether the teacher was in
17service on or after its effective date.
18    Whenever it determines that a payment is or may be required
19under this subsection, the System shall calculate the amount of
20the payment and bill the employer for that amount. The bill
21shall specify the calculations used to determine the amount
22due. If the employer disputes the amount of the bill, it may,
23within 30 days after receipt of the bill, apply to the System
24in writing for a recalculation. The application must specify in
25detail the grounds of the dispute and, if the employer asserts
26that the calculation is subject to subsection (g) or (h) of

 

 

09900SB0231sam001- 31 -LRB099 03162 NHT 47157 a

1this Section, must include an affidavit setting forth and
2attesting to all facts within the employer's knowledge that are
3pertinent to the applicability of that subsection. Upon
4receiving a timely application for recalculation, the System
5shall review the application and, if appropriate, recalculate
6the amount due.
7    The employer contributions required under this subsection
8(f) may be paid in the form of a lump sum within 90 days after
9receipt of the bill. If the employer contributions are not paid
10within 90 days after receipt of the bill, then interest will be
11charged at a rate equal to the System's annual actuarially
12assumed rate of return on investment compounded annually from
13the 91st day after receipt of the bill. Payments must be
14concluded within 3 years after the employer's receipt of the
15bill.
16    (g) This subsection (g) applies only to payments made or
17salary increases given on or after June 1, 2005 but before July
181, 2011. The changes made by Public Act 94-1057 shall not
19require the System to refund any payments received before July
2031, 2006 (the effective date of Public Act 94-1057).
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude salary increases paid to teachers
23under contracts or collective bargaining agreements entered
24into, amended, or renewed before June 1, 2005.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude salary increases paid to a

 

 

09900SB0231sam001- 32 -LRB099 03162 NHT 47157 a

1teacher at a time when the teacher is 10 or more years from
2retirement eligibility under Section 16-132 or 16-133.2.
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases resulting from
5overload work, including summer school, when the school
6district has certified to the System, and the System has
7approved the certification, that (i) the overload work is for
8the sole purpose of classroom instruction in excess of the
9standard number of classes for a full-time teacher in a school
10district during a school year and (ii) the salary increases are
11equal to or less than the rate of pay for classroom instruction
12computed on the teacher's current salary and work schedule.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude a salary increase resulting from
15a promotion (i) for which the employee is required to hold a
16certificate or supervisory endorsement issued by the State
17Teacher Certification Board that is a different certification
18or supervisory endorsement than is required for the teacher's
19previous position and (ii) to a position that has existed and
20been filled by a member for no less than one complete academic
21year and the salary increase from the promotion is an increase
22that results in an amount no greater than the lesser of the
23average salary paid for other similar positions in the district
24requiring the same certification or the amount stipulated in
25the collective bargaining agreement for a similar position
26requiring the same certification.

 

 

09900SB0231sam001- 33 -LRB099 03162 NHT 47157 a

1    When assessing payment for any amount due under subsection
2(f), the System shall exclude any payment to the teacher from
3the State of Illinois or the State Board of Education over
4which the employer does not have discretion, notwithstanding
5that the payment is included in the computation of final
6average salary.
7    (h) When assessing payment for any amount due under
8subsection (f), the System shall exclude any salary increase
9described in subsection (g) of this Section given on or after
10July 1, 2011 but before July 1, 2014 under a contract or
11collective bargaining agreement entered into, amended, or
12renewed on or after June 1, 2005 but before July 1, 2011.
13Notwithstanding any other provision of this Section, any
14payments made or salary increases given after June 30, 2014
15shall be used in assessing payment for any amount due under
16subsection (f) of this Section.
17    (i) The System shall prepare a report and file copies of
18the report with the Governor and the General Assembly by
19January 1, 2007 that contains all of the following information:
20        (1) The number of recalculations required by the
21    changes made to this Section by Public Act 94-1057 for each
22    employer.
23        (2) The dollar amount by which each employer's
24    contribution to the System was changed due to
25    recalculations required by Public Act 94-1057.
26        (3) The total amount the System received from each

 

 

09900SB0231sam001- 34 -LRB099 03162 NHT 47157 a

1    employer as a result of the changes made to this Section by
2    Public Act 94-4.
3        (4) The increase in the required State contribution
4    resulting from the changes made to this Section by Public
5    Act 94-1057.
6    (j) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (k) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12;
2298-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
 
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 16-158. Contributions by State and other employing

 

 

09900SB0231sam001- 35 -LRB099 03162 NHT 47157 a

1units.
2    (a) The State shall make contributions to the System by
3means of appropriations from the Common School Fund and other
4State funds of amounts which, together with other employer
5contributions, employee contributions, investment income, and
6other income, will be sufficient to meet the cost of
7maintaining and administering the System on a 90% funded basis
8in accordance with actuarial recommendations.
9    The Board shall determine the amount of State contributions
10required for each fiscal year on the basis of the actuarial
11tables and other assumptions adopted by the Board and the
12recommendations of the actuary, using the formula in subsection
13(b-3).
14    (a-1) Annually, on or before November 15 until November 15,
152011, the Board shall certify to the Governor the amount of the
16required State contribution for the coming fiscal year. The
17certification under this subsection (a-1) shall include a copy
18of the actuarial recommendations upon which it is based and
19shall specifically identify the System's projected State
20normal cost for that fiscal year.
21    On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking
24into account the amounts appropriated to and received by the
25System under subsection (d) of Section 7.2 of the General
26Obligation Bond Act.

 

 

09900SB0231sam001- 36 -LRB099 03162 NHT 47157 a

1    On or before July 1, 2005, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2006, taking
4into account the changes in required State contributions made
5by this amendatory Act of the 94th General Assembly.
6    On or before April 1, 2011, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2011, applying
9the changes made by Public Act 96-889 to the System's assets
10and liabilities as of June 30, 2009 as though Public Act 96-889
11was approved on that date.
12    (a-5) On or before November 1 of each year, beginning
13November 1, 2012, the Board shall submit to the State Actuary,
14the Governor, and the General Assembly a proposed certification
15of the amount of the required State contribution to the System
16for the next fiscal year, along with all of the actuarial
17assumptions, calculations, and data upon which that proposed
18certification is based. On or before January 1 of each year,
19beginning January 1, 2013, the State Actuary shall issue a
20preliminary report concerning the proposed certification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. On or before
24January 15, 2013 and each January 15 thereafter, the Board
25shall certify to the Governor and the General Assembly the
26amount of the required State contribution for the next fiscal

 

 

09900SB0231sam001- 37 -LRB099 03162 NHT 47157 a

1year. The Board's certification must note any deviations from
2the State Actuary's recommended changes, the reason or reasons
3for not following the State Actuary's recommended changes, and
4the fiscal impact of not following the State Actuary's
5recommended changes on the required State contribution.
6    (b) Through State fiscal year 1995, the State contributions
7shall be paid to the System in accordance with Section 18-7 of
8the School Code.
9    (b-1) Beginning in State fiscal year 1996, on the 15th day
10of each month, or as soon thereafter as may be practicable, the
11Board shall submit vouchers for payment of State contributions
12to the System, in a total monthly amount of one-twelfth of the
13required annual State contribution certified under subsection
14(a-1). From the effective date of this amendatory Act of the
1593rd General Assembly through June 30, 2004, the Board shall
16not submit vouchers for the remainder of fiscal year 2004 in
17excess of the fiscal year 2004 certified contribution amount
18determined under this Section after taking into consideration
19the transfer to the System under subsection (a) of Section
206z-61 of the State Finance Act. These vouchers shall be paid by
21the State Comptroller and Treasurer by warrants drawn on the
22funds appropriated to the System for that fiscal year.
23    If in any month the amount remaining unexpended from all
24other appropriations to the System for the applicable fiscal
25year (including the appropriations to the System under Section
268.12 of the State Finance Act and Section 1 of the State

 

 

09900SB0231sam001- 38 -LRB099 03162 NHT 47157 a

1Pension Funds Continuing Appropriation Act) is less than the
2amount lawfully vouchered under this subsection, the
3difference shall be paid from the Common School Fund under the
4continuing appropriation authority provided in Section 1.1 of
5the State Pension Funds Continuing Appropriation Act.
6    (b-2) Allocations from the Common School Fund apportioned
7to school districts not coming under this System shall not be
8diminished or affected by the provisions of this Article.
9    (b-3) For State fiscal years 2012 through 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19    For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section; except that in the
24following specified State fiscal years, the State contribution
25to the System shall not be less than the following indicated
26percentages of the applicable employee payroll, even if the

 

 

09900SB0231sam001- 39 -LRB099 03162 NHT 47157 a

1indicated percentage will produce a State contribution in
2excess of the amount otherwise required under this subsection
3and subsection (a), and notwithstanding any contrary
4certification made under subsection (a-1) before the effective
5date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
6in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
72003; and 13.56% in FY 2004.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2006 is
10$534,627,700.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2007 is
13$738,014,500.
14    For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2010 is
22$2,089,268,000 and shall be made from the proceeds of bonds
23sold in fiscal year 2010 pursuant to Section 7.2 of the General
24Obligation Bond Act, less (i) the pro rata share of bond sale
25expenses determined by the System's share of total bond
26proceeds, (ii) any amounts received from the Common School Fund

 

 

09900SB0231sam001- 40 -LRB099 03162 NHT 47157 a

1in fiscal year 2010, and (iii) any reduction in bond proceeds
2due to the issuance of discounted bonds, if applicable.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2011 is
5the amount recertified by the System on or before April 1, 2011
6pursuant to subsection (a-1) of this Section and shall be made
7from the proceeds of bonds sold in fiscal year 2011 pursuant to
8Section 7.2 of the General Obligation Bond Act, less (i) the
9pro rata share of bond sale expenses determined by the System's
10share of total bond proceeds, (ii) any amounts received from
11the Common School Fund in fiscal year 2011, and (iii) any
12reduction in bond proceeds due to the issuance of discounted
13bonds, if applicable. This amount shall include, in addition to
14the amount certified by the System, an amount necessary to meet
15employer contributions required by the State as an employer
16under paragraph (e) of this Section, which may also be used by
17the System for contributions required by paragraph (a) of
18Section 16-127.
19    Beginning in State fiscal year 2046, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 90% of the total
22actuarial liabilities of the System.
23    Amounts received by the System pursuant to Section 25 of
24the Budget Stabilization Act or Section 8.12 of the State
25Finance Act in any fiscal year do not reduce and do not
26constitute payment of any portion of the minimum State

 

 

09900SB0231sam001- 41 -LRB099 03162 NHT 47157 a

1contribution required under this Article in that fiscal year.
2Such amounts shall not reduce, and shall not be included in the
3calculation of, the required State contributions under this
4Article in any future year until the System has reached a
5funding ratio of at least 90%. A reference in this Article to
6the "required State contribution" or any substantially similar
7term does not include or apply to any amounts payable to the
8System under Section 25 of the Budget Stabilization Act.
9    Notwithstanding any other provision of this Section, the
10required State contribution for State fiscal year 2005 and for
11fiscal year 2008 and each fiscal year thereafter, as calculated
12under this Section and certified under subsection (a-1), shall
13not exceed an amount equal to (i) the amount of the required
14State contribution that would have been calculated under this
15Section for that fiscal year if the System had not received any
16payments under subsection (d) of Section 7.2 of the General
17Obligation Bond Act, minus (ii) the portion of the State's
18total debt service payments for that fiscal year on the bonds
19issued in fiscal year 2003 for the purposes of that Section
207.2, as determined and certified by the Comptroller, that is
21the same as the System's portion of the total moneys
22distributed under subsection (d) of Section 7.2 of the General
23Obligation Bond Act. In determining this maximum for State
24fiscal years 2008 through 2010, however, the amount referred to
25in item (i) shall be increased, as a percentage of the
26applicable employee payroll, in equal increments calculated

 

 

09900SB0231sam001- 42 -LRB099 03162 NHT 47157 a

1from the sum of the required State contribution for State
2fiscal year 2007 plus the applicable portion of the State's
3total debt service payments for fiscal year 2007 on the bonds
4issued in fiscal year 2003 for the purposes of Section 7.2 of
5the General Obligation Bond Act, so that, by State fiscal year
62011, the State is contributing at the rate otherwise required
7under this Section.
8    (c) Payment of the required State contributions and of all
9pensions, retirement annuities, death benefits, refunds, and
10other benefits granted under or assumed by this System, and all
11expenses in connection with the administration and operation
12thereof, are obligations of the State.
13    If members are paid from special trust or federal funds
14which are administered by the employing unit, whether school
15district or other unit, the employing unit shall pay to the
16System from such funds the full accruing retirement costs based
17upon that service, which, beginning July 1, 2016 2014, shall be
18at a rate, expressed as a percentage of salary, equal to the
19total employer's minimum contribution to the System to be made
20by the State for that fiscal year, including both normal cost
21and unfunded liability components, expressed as a percentage of
22payroll, as determined by the System under subsection (b-3) of
23this Section. Employer contributions, based on salary paid to
24members from federal funds, may be forwarded by the
25distributing agency of the State of Illinois to the System
26prior to allocation, in an amount determined in accordance with

 

 

09900SB0231sam001- 43 -LRB099 03162 NHT 47157 a

1guidelines established by such agency and the System. Any
2contribution for fiscal year 2015 collected as a result of the
3change made by this amendatory Act of the 98th General Assembly
4shall be considered a State contribution under subsection (b-3)
5of this Section.
6    (d) Effective July 1, 1986, any employer of a teacher as
7defined in paragraph (8) of Section 16-106 shall pay the
8employer's normal cost of benefits based upon the teacher's
9service, in addition to employee contributions, as determined
10by the System. Such employer contributions shall be forwarded
11monthly in accordance with guidelines established by the
12System.
13    However, with respect to benefits granted under Section
1416-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
15of Section 16-106, the employer's contribution shall be 12%
16(rather than 20%) of the member's highest annual salary rate
17for each year of creditable service granted, and the employer
18shall also pay the required employee contribution on behalf of
19the teacher. For the purposes of Sections 16-133.4 and
2016-133.5, a teacher as defined in paragraph (8) of Section
2116-106 who is serving in that capacity while on leave of
22absence from another employer under this Article shall not be
23considered an employee of the employer from which the teacher
24is on leave.
25    (e) Beginning July 1, 1998, every employer of a teacher
26shall pay to the System an employer contribution computed as

 

 

09900SB0231sam001- 44 -LRB099 03162 NHT 47157 a

1follows:
2        (1) Beginning July 1, 1998 through June 30, 1999, the
3    employer contribution shall be equal to 0.3% of each
4    teacher's salary.
5        (2) Beginning July 1, 1999 and thereafter, the employer
6    contribution shall be equal to 0.58% of each teacher's
7    salary.
8The school district or other employing unit may pay these
9employer contributions out of any source of funding available
10for that purpose and shall forward the contributions to the
11System on the schedule established for the payment of member
12contributions.
13    These employer contributions are intended to offset a
14portion of the cost to the System of the increases in
15retirement benefits resulting from this amendatory Act of 1998.
16    Each employer of teachers is entitled to a credit against
17the contributions required under this subsection (e) with
18respect to salaries paid to teachers for the period January 1,
192002 through June 30, 2003, equal to the amount paid by that
20employer under subsection (a-5) of Section 6.6 of the State
21Employees Group Insurance Act of 1971 with respect to salaries
22paid to teachers for that period.
23    The additional 1% employee contribution required under
24Section 16-152 by this amendatory Act of 1998 is the
25responsibility of the teacher and not the teacher's employer,
26unless the employer agrees, through collective bargaining or

 

 

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1otherwise, to make the contribution on behalf of the teacher.
2    If an employer is required by a contract in effect on May
31, 1998 between the employer and an employee organization to
4pay, on behalf of all its full-time employees covered by this
5Article, all mandatory employee contributions required under
6this Article, then the employer shall be excused from paying
7the employer contribution required under this subsection (e)
8for the balance of the term of that contract. The employer and
9the employee organization shall jointly certify to the System
10the existence of the contractual requirement, in such form as
11the System may prescribe. This exclusion shall cease upon the
12termination, extension, or renewal of the contract at any time
13after May 1, 1998.
14    (f) If the amount of a teacher's salary for any school year
15used to determine final average salary exceeds the member's
16annual full-time salary rate with the same employer for the
17previous school year by more than 6%, the teacher's employer
18shall pay to the System, in addition to all other payments
19required under this Section and in accordance with guidelines
20established by the System, the present value of the increase in
21benefits resulting from the portion of the increase in salary
22that is in excess of 6%. This present value shall be computed
23by the System on the basis of the actuarial assumptions and
24tables used in the most recent actuarial valuation of the
25System that is available at the time of the computation. If a
26teacher's salary for the 2005-2006 school year is used to

 

 

09900SB0231sam001- 46 -LRB099 03162 NHT 47157 a

1determine final average salary under this subsection (f), then
2the changes made to this subsection (f) by Public Act 94-1057
3shall apply in calculating whether the increase in his or her
4salary is in excess of 6%. For the purposes of this Section,
5change in employment under Section 10-21.12 of the School Code
6on or after June 1, 2005 shall constitute a change in employer.
7The System may require the employer to provide any pertinent
8information or documentation. The changes made to this
9subsection (f) by this amendatory Act of the 94th General
10Assembly apply without regard to whether the teacher was in
11service on or after its effective date.
12    Whenever it determines that a payment is or may be required
13under this subsection, the System shall calculate the amount of
14the payment and bill the employer for that amount. The bill
15shall specify the calculations used to determine the amount
16due. If the employer disputes the amount of the bill, it may,
17within 30 days after receipt of the bill, apply to the System
18in writing for a recalculation. The application must specify in
19detail the grounds of the dispute and, if the employer asserts
20that the calculation is subject to subsection (g) or (h) of
21this Section, must include an affidavit setting forth and
22attesting to all facts within the employer's knowledge that are
23pertinent to the applicability of that subsection. Upon
24receiving a timely application for recalculation, the System
25shall review the application and, if appropriate, recalculate
26the amount due.

 

 

09900SB0231sam001- 47 -LRB099 03162 NHT 47157 a

1    The employer contributions required under this subsection
2(f) may be paid in the form of a lump sum within 90 days after
3receipt of the bill. If the employer contributions are not paid
4within 90 days after receipt of the bill, then interest will be
5charged at a rate equal to the System's annual actuarially
6assumed rate of return on investment compounded annually from
7the 91st day after receipt of the bill. Payments must be
8concluded within 3 years after the employer's receipt of the
9bill.
10    (g) This subsection (g) applies only to payments made or
11salary increases given on or after June 1, 2005 but before July
121, 2011. The changes made by Public Act 94-1057 shall not
13require the System to refund any payments received before July
1431, 2006 (the effective date of Public Act 94-1057).
15    When assessing payment for any amount due under subsection
16(f), the System shall exclude salary increases paid to teachers
17under contracts or collective bargaining agreements entered
18into, amended, or renewed before June 1, 2005.
19    When assessing payment for any amount due under subsection
20(f), the System shall exclude salary increases paid to a
21teacher at a time when the teacher is 10 or more years from
22retirement eligibility under Section 16-132 or 16-133.2.
23    When assessing payment for any amount due under subsection
24(f), the System shall exclude salary increases resulting from
25overload work, including summer school, when the school
26district has certified to the System, and the System has

 

 

09900SB0231sam001- 48 -LRB099 03162 NHT 47157 a

1approved the certification, that (i) the overload work is for
2the sole purpose of classroom instruction in excess of the
3standard number of classes for a full-time teacher in a school
4district during a school year and (ii) the salary increases are
5equal to or less than the rate of pay for classroom instruction
6computed on the teacher's current salary and work schedule.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude a salary increase resulting from
9a promotion (i) for which the employee is required to hold a
10certificate or supervisory endorsement issued by the State
11Teacher Certification Board that is a different certification
12or supervisory endorsement than is required for the teacher's
13previous position and (ii) to a position that has existed and
14been filled by a member for no less than one complete academic
15year and the salary increase from the promotion is an increase
16that results in an amount no greater than the lesser of the
17average salary paid for other similar positions in the district
18requiring the same certification or the amount stipulated in
19the collective bargaining agreement for a similar position
20requiring the same certification.
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude any payment to the teacher from
23the State of Illinois or the State Board of Education over
24which the employer does not have discretion, notwithstanding
25that the payment is included in the computation of final
26average salary.

 

 

09900SB0231sam001- 49 -LRB099 03162 NHT 47157 a

1    (h) When assessing payment for any amount due under
2subsection (f), the System shall exclude any salary increase
3described in subsection (g) of this Section given on or after
4July 1, 2011 but before July 1, 2014 under a contract or
5collective bargaining agreement entered into, amended, or
6renewed on or after June 1, 2005 but before July 1, 2011.
7Notwithstanding any other provision of this Section, any
8payments made or salary increases given after June 30, 2014
9shall be used in assessing payment for any amount due under
10subsection (f) of this Section.
11    (i) The System shall prepare a report and file copies of
12the report with the Governor and the General Assembly by
13January 1, 2007 that contains all of the following information:
14        (1) The number of recalculations required by the
15    changes made to this Section by Public Act 94-1057 for each
16    employer.
17        (2) The dollar amount by which each employer's
18    contribution to the System was changed due to
19    recalculations required by Public Act 94-1057.
20        (3) The total amount the System received from each
21    employer as a result of the changes made to this Section by
22    Public Act 94-4.
23        (4) The increase in the required State contribution
24    resulting from the changes made to this Section by Public
25    Act 94-1057.
26    (j) For purposes of determining the required State

 

 

09900SB0231sam001- 50 -LRB099 03162 NHT 47157 a

1contribution to the System, the value of the System's assets
2shall be equal to the actuarial value of the System's assets,
3which shall be calculated as follows:
4    As of June 30, 2008, the actuarial value of the System's
5assets shall be equal to the market value of the assets as of
6that date. In determining the actuarial value of the System's
7assets for fiscal years after June 30, 2008, any actuarial
8gains or losses from investment return incurred in a fiscal
9year shall be recognized in equal annual amounts over the
105-year period following that fiscal year.
11    (k) For purposes of determining the required State
12contribution to the system for a particular year, the actuarial
13value of assets shall be assumed to earn a rate of return equal
14to the system's actuarially assumed rate of return.
15(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1696-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
176-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
18    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
19    Sec. 17-127. Financing; revenues for the Fund.
20    (a) The revenues for the Fund shall consist of: (1) amounts
21paid into the Fund by contributors thereto and from employer
22contributions and State appropriations in accordance with this
23Article; (2) amounts contributed to the Fund by an Employer;
24(3) amounts contributed to the Fund pursuant to any law now in
25force or hereafter to be enacted; (4) contributions from any

 

 

09900SB0231sam001- 51 -LRB099 03162 NHT 47157 a

1other source; and (5) the earnings on investments.
2    (b) The General Assembly finds that for many years the
3State has contributed to the Fund an annual amount that is
4between 20% and 30% of the amount of the annual State
5contribution to the Article 16 retirement system, and the
6General Assembly declares that it is its goal and intention to
7continue this level of contribution to the Fund in the future.
8    (c) Beginning in State fiscal year 1999, the State shall
9include in its annual contribution to the Fund an additional
10amount equal to 0.544% of the Fund's total teacher payroll;
11except that this additional contribution need not be made in a
12fiscal year if the Board has certified in the previous fiscal
13year that the Fund is at least 90% funded, based on actuarial
14determinations. These additional State contributions are
15intended to offset a portion of the cost to the Fund of the
16increases in retirement benefits resulting from this
17amendatory Act of 1998.
18    (d) In addition to any other contribution required under
19this Article, including the contribution required under
20subsection (c), the State shall contribute to the Fund the
21following amounts:
22        (1) For State fiscal year 2017, the State shall
23    contribute $205,404,986.
24        (2) Beginning in State fiscal year 2018, the State
25    shall contribute for each fiscal year an amount to be
26    determined by the Fund, equal to the employer normal cost

 

 

09900SB0231sam001- 52 -LRB099 03162 NHT 47157 a

1    for that fiscal year, plus the amount allowed pursuant to
2    paragraph (3) of Section 17-142.1, to defray health
3    insurance costs.
4    (e) The Board shall determine the amount of State
5contributions required for each fiscal year on the basis of the
6actuarial tables and other assumptions adopted by the Board and
7the recommendations of the actuary. On or before November 1 of
8each year, beginning November 1, 2016, the Board shall submit
9to the State Actuary, the Governor, and the General Assembly a
10proposed certification of the amount of the required State
11contribution to the Fund for the next fiscal year, along with
12all of the actuarial assumptions, calculations, and data upon
13which that proposed certification is based.
14    On or before January 1 of each year, beginning January 1,
152017, the State Actuary shall issue a preliminary report
16concerning the proposed certification and identifying, if
17necessary, recommended changes in actuarial assumptions that
18the Board must consider before finalizing its certification of
19the required State contributions.
20    (f) On or before January 15, 2017 and each January 15
21thereafter, the Board shall certify to the Governor and the
22General Assembly the amount of the required State contribution
23for the next fiscal year. The certification shall include a
24copy of the actuarial recommendations upon which it is based
25and shall specifically identify the Fund's projected employer
26normal cost for that fiscal year. The Board's certification

 

 

09900SB0231sam001- 53 -LRB099 03162 NHT 47157 a

1must note any deviations from the State Actuary's recommended
2changes, the reason or reasons for not following the State
3Actuary's recommended changes, and the fiscal impact of not
4following the State Actuary's recommended changes on the
5required State contribution.
6    For the purposes of this Article, including issuing
7vouchers, and for the purposes of subsection (h) of Section 1.1
8of the State Pension Funds Continuing Appropriation Act, the
9State contribution specified for State fiscal year 2017 shall
10be deemed to have been certified, by operation of law and
11without official action by the Board or the State Actuary, in
12the amount provided in subsection (d) of this Section.
13    (g) Beginning in State fiscal year 2017, on the 15th day of
14each month, or as soon thereafter as may be practicable, the
15Board shall submit vouchers for payment of State contributions
16to the Fund, in a total monthly amount of one-twelfth of the
17required annual State contribution under subsection (d). These
18vouchers shall be paid by the State Comptroller and Treasurer
19by warrants drawn on the funds appropriated to the Fund for
20that fiscal year. If in any month the amount remaining
21unexpended from all other State appropriations to the Fund for
22the applicable fiscal year is less than the amount lawfully
23vouchered under this subsection, the difference shall be paid
24from the Common School Fund under the continuing appropriation
25authority provided in Section 1.1 of the State Pension Funds
26Continuing Appropriation Act.

 

 

09900SB0231sam001- 54 -LRB099 03162 NHT 47157 a

1(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
290-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
3    Section 918. The State Pension Funds Continuing
4Appropriation Act is amended by changing Section 1.1 as
5follows:
 
6    (40 ILCS 15/1.1)
7    Sec. 1.1. Appropriations to certain retirement systems.
8    (a) There is hereby appropriated from the General Revenue
9Fund to the General Assembly Retirement System, on a continuing
10monthly basis, the amount, if any, by which the total available
11amount of all other appropriations to that retirement system
12for the payment of State contributions is less than the total
13amount of the vouchers for required State contributions
14lawfully submitted by the retirement system for that month
15under Section 2-134 of the Illinois Pension Code.
16    (b) There is hereby appropriated from the General Revenue
17Fund to the State Universities Retirement System, on a
18continuing monthly basis, the amount, if any, by which the
19total available amount of all other appropriations to that
20retirement system for the payment of State contributions,
21including any deficiency in the required contributions of the
22optional retirement program established under Section 15-158.2
23of the Illinois Pension Code, is less than the total amount of
24the vouchers for required State contributions lawfully

 

 

09900SB0231sam001- 55 -LRB099 03162 NHT 47157 a

1submitted by the retirement system for that month under Section
215-165 of the Illinois Pension Code.
3    (c) There is hereby appropriated from the Common School
4Fund to the Teachers' Retirement System of the State of
5Illinois, on a continuing monthly basis, the amount, if any, by
6which the total available amount of all other appropriations to
7that retirement system for the payment of State contributions
8is less than the total amount of the vouchers for required
9State contributions lawfully submitted by the retirement
10system for that month under Section 16-158 of the Illinois
11Pension Code.
12    (d) There is hereby appropriated from the General Revenue
13Fund to the Judges Retirement System of Illinois, on a
14continuing monthly basis, the amount, if any, by which the
15total available amount of all other appropriations to that
16retirement system for the payment of State contributions is
17less than the total amount of the vouchers for required State
18contributions lawfully submitted by the retirement system for
19that month under Section 18-140 of the Illinois Pension Code.
20    (e) The continuing appropriations provided by subsections
21(a), (b), (c), and (d) of this Section shall first be available
22in State fiscal year 1996. The continuing appropriations
23provided by subsection (h) of this Section shall first be
24available as provided in that subsection (h).
25    (f) For State fiscal year 2010 only, the continuing
26appropriations provided by this Section are equal to the amount

 

 

09900SB0231sam001- 56 -LRB099 03162 NHT 47157 a

1certified by each System on or before December 31, 2008, less
2(i) the gross proceeds of the bonds sold in fiscal year 2010
3under the authorization contained in subsection (a) of Section
47.2 of the General Obligation Bond Act and (ii) any amounts
5received from the State Pensions Fund.
6    (g) For State fiscal year 2011 only, the continuing
7appropriations provided by this Section are equal to the amount
8certified by each System on or before April 1, 2011, less (i)
9the gross proceeds of the bonds sold in fiscal year 2011 under
10the authorization contained in subsection (a) of Section 7.2 of
11the General Obligation Bond Act and (ii) any amounts received
12from the State Pensions Fund.
13    (h) There is hereby appropriated from the Common School
14Fund to the Public School Teachers' Pension and Retirement Fund
15of Chicago, on a continuing monthly basis, the amount, if any,
16by which the total available amount of all other State
17appropriations to that Retirement Fund for the payment of State
18contributions under subsection (d) of Section 17-127 of the
19Illinois Pension Code is less than the total amount of the
20vouchers for required State contributions lawfully submitted
21by the Retirement Fund for that month under that Section
2217-127.
23(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2496-1511, eff. 1-27-11.)
 
25    Section 920. The Innovation Development and Economy Act is

 

 

09900SB0231sam001- 57 -LRB099 03162 NHT 47157 a

1amended by changing Section 33 as follows:
 
2    (50 ILCS 470/33)
3    Sec. 33. STAR Bonds School Improvement and Operations Trust
4Fund.
5    (a) The STAR Bonds School Improvement and Operations Trust
6Fund is created as a trust fund in the State treasury. Deposits
7into the Trust Fund shall be made as provided under this
8Section. Moneys in the Trust Fund shall be used by the
9Department of Revenue only for the purpose of making payments
10to school districts in educational service regions that include
11or are adjacent to the STAR bond district. Moneys in the Trust
12Fund are not subject to appropriation and shall be used solely
13as provided in this Section. All deposits into the Trust Fund
14shall be held in the Trust Fund by the State Treasurer as ex
15officio custodian separate and apart from all public moneys or
16funds of this State and shall be administered by the Department
17exclusively for the purposes set forth in this Section. All
18moneys in the Trust Fund shall be invested and reinvested by
19the State Treasurer. All interest accruing from these
20investments shall be deposited in the Trust Fund.
21    (b) Upon approval of a STAR bond district, the political
22subdivision shall immediately transmit to the county clerk of
23the county in which the district is located a certified copy of
24the ordinance creating the district, a legal description of the
25district, a map of the district, identification of the year

 

 

09900SB0231sam001- 58 -LRB099 03162 NHT 47157 a

1that the county clerk shall use for determining the total
2initial equalized assessed value of the district consistent
3with subsection (c), and a list of the parcel or tax
4identification number of each parcel of property included in
5the district.
6    (c) Upon approval of a STAR bond district, the county clerk
7immediately thereafter shall determine (i) the most recently
8ascertained equalized assessed value of each lot, block, tract,
9or parcel of real property within the STAR bond district, from
10which shall be deducted the homestead exemptions under Article
1115 of the Property Tax Code, which value shall be the initial
12equalized assessed value of each such piece of property, and
13(ii) the total equalized assessed value of all taxable real
14property within the district by adding together the most
15recently ascertained equalized assessed value of each taxable
16lot, block, tract, or parcel of real property within the
17district, from which shall be deducted the homestead exemptions
18under Article 15 of the Property Tax Code, and shall certify
19that amount as the total initial equalized assessed value of
20the taxable real property within the STAR bond district.
21    (d) In reference to any STAR bond district created within
22any political subdivision, and in respect to which the county
23clerk has certified the total initial equalized assessed value
24of the property in the area, the political subdivision may
25thereafter request the clerk in writing to adjust the initial
26equalized value of all taxable real property within the STAR

 

 

09900SB0231sam001- 59 -LRB099 03162 NHT 47157 a

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

 

 

09900SB0231sam001- 60 -LRB099 03162 NHT 47157 a

1year thereafter until final maturity of the last STAR bonds
2issued in the district, the county clerk or other person
3authorized by law shall determine the increase in equalized
4assessed value of all real property within the STAR bond
5district by subtracting the initial equalized assessed value of
6all property in the district certified under subsection (c)
7from the current equalized assessed value of all property in
8the district. Each year, the property taxes arising from the
9increase in equalized assessed value in the STAR bond district
10shall be determined for each taxing district and shall be
11certified to the county collector.
12    (g) Beginning with the year in which taxes are collected
13based on the assessment year in which the first destination
14user in the first STAR bond project in a STAR bond district
15makes its first retail sales and for each year thereafter until
16final maturity of the last STAR bonds issued in the district,
17the county collector shall, within 30 days after receipt of
18property taxes, transmit to the Department to be deposited into
19the STAR Bonds School Improvement and Operations Trust Fund 15%
20of property taxes attributable to the increase in equalized
21assessed value within the STAR bond district from each taxing
22district as certified in subsection (f).
23    (h) The Department shall pay to the regional superintendent
24of schools whose educational service region includes Franklin
25and Williamson Counties, for each year for which money is
26remitted to the Department and paid into the STAR Bonds School

 

 

09900SB0231sam001- 61 -LRB099 03162 NHT 47157 a

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

 

 

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1county collector shall hold that amount in a separate fund
2until the appeal process is final. After the appeal process is
3finalized, the county collector shall transmit to the
4Department the amount of tax that remains, if any, after all
5required refunds are made. The Department shall pay any amount
6deposited into the Trust Fund under this Section in the same
7proportion as determined for payments for that taxable year
8under subsection (h).
9    (j) In any year that ad valorem taxes are allocated to the
10STAR Bonds School Improvement and Operations Trust Fund, that
11allocation shall not reduce or otherwise impact the school aid
12provided to any school district under the general State school
13aid formula provided for in Section 18-8.05 of the School Code
14or the primary State aid formula provided for in Section
1518-8.15 of the School Code.
16(Source: P.A. 96-939, eff. 6-24-10.)
 
17    Section 925. The County Economic Development Project Area
18Property Tax Allocation Act is amended by changing Section 7 as
19follows:
 
20    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
21    Sec. 7. Creation of special tax allocation fund. If a
22county has adopted property tax allocation financing by
23ordinance for an economic development project area, the
24Department has approved and certified the economic development

 

 

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

 

 

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

 

 

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1county shall deem necessary to provide for the security and
2payment of the bonds. If the county provides for the
3appointment of a trustee, the trustee shall be considered the
4assignee of any payments assigned by the county pursuant to the
5ordinance and this Section. Any amounts paid to the trustee as
6assignee shall be deposited in the funds or accounts
7established pursuant to the trust agreement, and shall be held
8by the trustee in trust for the benefit of the holders of the
9bonds, and the holders shall have a lien on and a security
10interest in those bonds or accounts so long as the bonds remain
11outstanding and unpaid. Upon retirement of the bonds, the
12trustee shall pay over any excess amounts held to the county
13for deposit in the special tax allocation fund.
14    When the economic development project costs, including
15without limitation all county obligations financing economic
16development project costs incurred under this Act, have been
17paid, all surplus funds then remaining in the special tax
18allocation funds shall be distributed by being paid by the
19county treasurer to the county collector, who shall immediately
20thereafter pay those funds to the taxing districts having
21taxable property in the economic development project area in
22the same manner and proportion as the most recent distribution
23by the county collector to those taxing districts of real
24property taxes from real property in the economic development
25project area.
26    Upon the payment of all economic development project costs,

 

 

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1retirement of obligations and the distribution of any excess
2monies pursuant to this Section and not later than 23 years
3from the date of adoption of the ordinance adopting property
4tax allocation financing, the county shall adopt an ordinance
5dissolving the special tax allocation fund for the economic
6development project area and terminating the designation of the
7economic development project area as an economic development
8project area. Thereafter the rates of the taxing districts
9shall be extended and taxes levied, collected and distributed
10in the manner applicable in the absence of the adoption of
11property tax allocation financing.
12    Nothing in this Section shall be construed as relieving
13property in economic development project areas from being
14assessed as provided in the Property Tax Code or as relieving
15owners of that property from paying a uniform rate of taxes, as
16required by Section 4 of Article IX of the Illinois
17Constitution of 1970.
18(Source: P.A. 98-463, eff. 8-16-13.)
 
19    Section 930. The County Economic Development Project Area
20Tax Increment Allocation Act of 1991 is amended by changing
21Section 50 as follows:
 
22    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
23    Sec. 50. Special tax allocation fund.
24    (a) If a county clerk has certified the "total initial

 

 

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1equalized assessed value" of the taxable real property within
2an economic development project area in the manner provided in
3Section 45, each year after the date of the certification by
4the county clerk of the "total initial equalized assessed
5value", until economic development project costs and all county
6obligations financing economic development project costs have
7been paid, the ad valorem taxes, if any, arising from the
8levies upon the taxable real property in the economic
9development project area by taxing districts and tax rates
10determined in the manner provided in subsection (b) of Section
1145 shall be divided as follows:
12        (1) That portion of the taxes levied upon each taxable
13    lot, block, tract, or parcel of real property that is
14    attributable to the lower of the current equalized assessed
15    value or the initial equalized assessed value of each
16    taxable lot, block, tract, or parcel of real property
17    existing at the time tax increment financing was adopted
18    shall be allocated to (and when collected shall be paid by
19    the county collector to) the respective affected taxing
20    districts in the manner required by law in the absence of
21    the adoption of tax increment allocation financing.
22        (2) That portion, if any, of the taxes that is
23    attributable to the increase in the current equalized
24    assessed valuation of each taxable lot, block, tract, or
25    parcel of real property in the economic development project
26    area, over and above the initial equalized assessed value

 

 

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

 

 

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1immediately pay the monies to the taxing districts having
2taxable property in the economic development project area in
3the same manner and proportion as the most recent distribution
4by the county collector to those taxing districts of real
5property taxes from real property in the economic development
6project area.
7    (d) Upon the payment of all economic development project
8costs, retirement of obligations, and distribution of any
9excess monies under this Section, the county shall adopt an
10ordinance dissolving the special tax allocation fund for the
11economic development project area and terminating the
12designation of the economic development project area as an
13economic development project area. Thereafter, the rates of the
14taxing districts shall be extended and taxes shall be levied,
15collected, and distributed in the manner applicable in the
16absence of the adoption of tax increment allocation financing.
17    (e) Nothing in this Section shall be construed as relieving
18property in the economic development project areas from being
19assessed as provided in the Property Tax Code or as relieving
20owners of that property from paying a uniform rate of taxes as
21required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 935. The Illinois Municipal Code is amended by
25changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as

 

 

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1follows:
 
2    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
3    Sec. 11-74.4-3. Definitions. The following terms, wherever
4used or referred to in this Division 74.4 shall have the
5following respective meanings, unless in any case a different
6meaning clearly appears from the context.
7    (a) For any redevelopment project area that has been
8designated pursuant to this Section by an ordinance adopted
9prior to November 1, 1999 (the effective date of Public Act
1091-478), "blighted area" shall have the meaning set forth in
11this Section prior to that date.
12    On and after November 1, 1999, "blighted area" means any
13improved or vacant area within the boundaries of a
14redevelopment project area located within the territorial
15limits of the municipality where:
16        (1) If improved, industrial, commercial, and
17    residential buildings or improvements are detrimental to
18    the public safety, health, or welfare because of a
19    combination of 5 or more of the following factors, each of
20    which is (i) present, with that presence documented, to a
21    meaningful extent so that a municipality may reasonably
22    find that the factor is clearly present within the intent
23    of the Act and (ii) reasonably distributed throughout the
24    improved part of the redevelopment project area:
25            (A) Dilapidation. An advanced state of disrepair

 

 

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1        or neglect of necessary repairs to the primary
2        structural components of buildings or improvements in
3        such a combination that a documented building
4        condition analysis determines that major repair is
5        required or the defects are so serious and so extensive
6        that the buildings must be removed.
7            (B) Obsolescence. The condition or process of
8        falling into disuse. Structures have become ill-suited
9        for the original use.
10            (C) Deterioration. With respect to buildings,
11        defects including, but not limited to, major defects in
12        the secondary building components such as doors,
13        windows, porches, gutters and downspouts, and fascia.
14        With respect to surface improvements, that the
15        condition of roadways, alleys, curbs, gutters,
16        sidewalks, off-street parking, and surface storage
17        areas evidence deterioration, including, but not
18        limited to, surface cracking, crumbling, potholes,
19        depressions, loose paving material, and weeds
20        protruding through paved surfaces.
21            (D) Presence of structures below minimum code
22        standards. All structures that do not meet the
23        standards of zoning, subdivision, building, fire, and
24        other governmental codes applicable to property, but
25        not including housing and property maintenance codes.
26            (E) Illegal use of individual structures. The use

 

 

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1        of structures in violation of applicable federal,
2        State, or local laws, exclusive of those applicable to
3        the presence of structures below minimum code
4        standards.
5            (F) Excessive vacancies. The presence of buildings
6        that are unoccupied or under-utilized and that
7        represent an adverse influence on the area because of
8        the frequency, extent, or duration of the vacancies.
9            (G) Lack of ventilation, light, or sanitary
10        facilities. The absence of adequate ventilation for
11        light or air circulation in spaces or rooms without
12        windows, or that require the removal of dust, odor,
13        gas, smoke, or other noxious airborne materials.
14        Inadequate natural light and ventilation means the
15        absence of skylights or windows for interior spaces or
16        rooms and improper window sizes and amounts by room
17        area to window area ratios. Inadequate sanitary
18        facilities refers to the absence or inadequacy of
19        garbage storage and enclosure, bathroom facilities,
20        hot water and kitchens, and structural inadequacies
21        preventing ingress and egress to and from all rooms and
22        units within a building.
23            (H) Inadequate utilities. Underground and overhead
24        utilities such as storm sewers and storm drainage,
25        sanitary sewers, water lines, and gas, telephone, and
26        electrical services that are shown to be inadequate.

 

 

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1        Inadequate utilities are those that are: (i) of
2        insufficient capacity to serve the uses in the
3        redevelopment project area, (ii) deteriorated,
4        antiquated, obsolete, or in disrepair, or (iii)
5        lacking within the redevelopment project area.
6            (I) Excessive land coverage and overcrowding of
7        structures and community facilities. The
8        over-intensive use of property and the crowding of
9        buildings and accessory facilities onto a site.
10        Examples of problem conditions warranting the
11        designation of an area as one exhibiting excessive land
12        coverage are: (i) the presence of buildings either
13        improperly situated on parcels or located on parcels of
14        inadequate size and shape in relation to present-day
15        standards of development for health and safety and (ii)
16        the presence of multiple buildings on a single parcel.
17        For there to be a finding of excessive land coverage,
18        these parcels must exhibit one or more of the following
19        conditions: insufficient provision for light and air
20        within or around buildings, increased threat of spread
21        of fire due to the close proximity of buildings, lack
22        of adequate or proper access to a public right-of-way,
23        lack of reasonably required off-street parking, or
24        inadequate provision for loading and service.
25            (J) Deleterious land use or layout. The existence
26        of incompatible land-use relationships, buildings

 

 

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

 

 

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1        other evidence demonstrating an absence of effective
2        community planning.
3            (M) The total equalized assessed value of the
4        proposed redevelopment project area has declined for 3
5        of the last 5 calendar years prior to the year in which
6        the redevelopment project area is designated or is
7        increasing at an annual rate that is less than the
8        balance of the municipality for 3 of the last 5
9        calendar years for which information is available or is
10        increasing at an annual rate that is less than the
11        Consumer Price Index for All Urban Consumers published
12        by the United States Department of Labor or successor
13        agency for 3 of the last 5 calendar years prior to the
14        year in which the redevelopment project area is
15        designated.
16        (2) If vacant, the sound growth of the redevelopment
17    project area is impaired by a combination of 2 or more of
18    the following factors, each of which is (i) present, with
19    that presence documented, to a meaningful extent so that a
20    municipality may reasonably find that the factor is clearly
21    present within the intent of the Act and (ii) reasonably
22    distributed throughout the vacant part of the
23    redevelopment project area to which it pertains:
24            (A) Obsolete platting of vacant land that results
25        in parcels of limited or narrow size or configurations
26        of parcels of irregular size or shape that would be

 

 

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1        difficult to develop on a planned basis and in a manner
2        compatible with contemporary standards and
3        requirements, or platting that failed to create
4        rights-of-ways for streets or alleys or that created
5        inadequate right-of-way widths for streets, alleys, or
6        other public rights-of-way or that omitted easements
7        for public utilities.
8            (B) Diversity of ownership of parcels of vacant
9        land sufficient in number to retard or impede the
10        ability to assemble the land for development.
11            (C) Tax and special assessment delinquencies exist
12        or the property has been the subject of tax sales under
13        the Property Tax Code within the last 5 years.
14            (D) Deterioration of structures or site
15        improvements in neighboring areas adjacent to the
16        vacant land.
17            (E) The area has incurred Illinois Environmental
18        Protection Agency or United States Environmental
19        Protection Agency remediation costs for, or a study
20        conducted by an independent consultant recognized as
21        having expertise in environmental remediation has
22        determined a need for, the clean-up of hazardous waste,
23        hazardous substances, or underground storage tanks
24        required by State or federal law, provided that the
25        remediation costs constitute a material impediment to
26        the development or redevelopment of the redevelopment

 

 

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1        project area.
2            (F) The total equalized assessed value of the
3        proposed redevelopment project area has declined for 3
4        of the last 5 calendar years prior to the year in which
5        the redevelopment project area is designated or is
6        increasing at an annual rate that is less than the
7        balance of the municipality 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
10        Consumer Price Index for All Urban Consumers published
11        by the United States Department of Labor or successor
12        agency for 3 of the last 5 calendar years prior to the
13        year in which the redevelopment project area is
14        designated.
15        (3) If vacant, the sound growth of the redevelopment
16    project area is impaired by one of the following factors
17    that (i) is present, with that presence documented, to a
18    meaningful extent so that a municipality may reasonably
19    find that the factor is clearly present within the intent
20    of the Act and (ii) is reasonably distributed throughout
21    the vacant part of the redevelopment project area to which
22    it pertains:
23            (A) The area consists of one or more unused
24        quarries, mines, or strip mine ponds.
25            (B) The area consists of unused rail yards, rail
26        tracks, or railroad rights-of-way.

 

 

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1            (C) The area, prior to its designation, is subject
2        to (i) chronic flooding that adversely impacts on real
3        property in the area as certified by a registered
4        professional engineer or appropriate regulatory agency
5        or (ii) surface water that discharges from all or a
6        part of the area and contributes to flooding within the
7        same watershed, but only if the redevelopment project
8        provides for facilities or improvements to contribute
9        to the alleviation of all or part of the flooding.
10            (D) The area consists of an unused or illegal
11        disposal site containing earth, stone, building
12        debris, or similar materials that were removed from
13        construction, demolition, excavation, or dredge sites.
14            (E) Prior to November 1, 1999, the area is not less
15        than 50 nor more than 100 acres and 75% of which is
16        vacant (notwithstanding that the area has been used for
17        commercial agricultural purposes within 5 years prior
18        to the designation of the redevelopment project area),
19        and the area meets at least one of the factors itemized
20        in paragraph (1) of this subsection, the area has been
21        designated as a town or village center by ordinance or
22        comprehensive plan adopted prior to January 1, 1982,
23        and the area has not been developed for that designated
24        purpose.
25            (F) The area qualified as a blighted improved area
26        immediately prior to becoming vacant, unless there has

 

 

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1        been substantial private investment in the immediately
2        surrounding area.
3    (b) For any redevelopment project area that has been
4designated pursuant to this Section by an ordinance adopted
5prior to November 1, 1999 (the effective date of Public Act
691-478), "conservation area" shall have the meaning set forth
7in this Section prior to that date.
8    On and after November 1, 1999, "conservation area" means
9any improved area within the boundaries of a redevelopment
10project area located within the territorial limits of the
11municipality in which 50% or more of the structures in the area
12have an age of 35 years or more. Such an area is not yet a
13blighted area but because of a combination of 3 or more of the
14following factors is detrimental to the public safety, health,
15morals or welfare and such an area may become a blighted area:
16        (1) Dilapidation. An advanced state of disrepair or
17    neglect of necessary repairs to the primary structural
18    components of buildings or improvements in such a
19    combination that a documented building condition analysis
20    determines that major repair is required or the defects are
21    so serious and so extensive that the buildings must be
22    removed.
23        (2) Obsolescence. The condition or process of falling
24    into disuse. Structures have become ill-suited for the
25    original use.
26        (3) Deterioration. With respect to buildings, defects

 

 

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1    including, but not limited to, major defects in the
2    secondary building components such as doors, windows,
3    porches, gutters and downspouts, and fascia. With respect
4    to surface improvements, that the condition of roadways,
5    alleys, curbs, gutters, sidewalks, off-street parking, and
6    surface storage areas evidence deterioration, including,
7    but not limited to, surface cracking, crumbling, potholes,
8    depressions, loose paving material, and weeds protruding
9    through paved surfaces.
10        (4) Presence of structures below minimum code
11    standards. All structures that do not meet the standards of
12    zoning, subdivision, building, fire, and other
13    governmental codes applicable to property, but not
14    including housing and property maintenance codes.
15        (5) Illegal use of individual structures. The use of
16    structures in violation of applicable federal, State, or
17    local laws, exclusive of those applicable to the presence
18    of structures below minimum code standards.
19        (6) Excessive vacancies. The presence of buildings
20    that are unoccupied or under-utilized and that represent an
21    adverse influence on the area because of the frequency,
22    extent, or duration of the vacancies.
23        (7) Lack of ventilation, light, or sanitary
24    facilities. The absence of adequate ventilation for light
25    or air circulation in spaces or rooms without windows, or
26    that require the removal of dust, odor, gas, smoke, or

 

 

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1    other noxious airborne materials. Inadequate natural light
2    and ventilation means the absence or inadequacy of
3    skylights or windows for interior spaces or rooms and
4    improper window sizes and amounts by room area to window
5    area ratios. Inadequate sanitary facilities refers to the
6    absence or inadequacy of garbage storage and enclosure,
7    bathroom facilities, hot water and kitchens, and
8    structural inadequacies preventing ingress and egress to
9    and from all rooms and units within a building.
10        (8) Inadequate utilities. Underground and overhead
11    utilities such as storm sewers and storm drainage, sanitary
12    sewers, water lines, and gas, telephone, and electrical
13    services that are shown to be inadequate. Inadequate
14    utilities are those that are: (i) of insufficient capacity
15    to serve the uses in the redevelopment project area, (ii)
16    deteriorated, antiquated, obsolete, or in disrepair, or
17    (iii) lacking within the redevelopment project area.
18        (9) Excessive land coverage and overcrowding of
19    structures and community facilities. The over-intensive
20    use of property and the crowding of buildings and accessory
21    facilities onto a site. Examples of problem conditions
22    warranting the designation of an area as one exhibiting
23    excessive land coverage are: the presence of buildings
24    either improperly situated on parcels or located on parcels
25    of inadequate size and shape in relation to present-day
26    standards of development for health and safety and the

 

 

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1    presence of multiple buildings on a single parcel. For
2    there to be a finding of excessive land coverage, these
3    parcels must exhibit one or more of the following
4    conditions: insufficient provision for light and air
5    within or around buildings, increased threat of spread of
6    fire due to the close proximity of buildings, lack of
7    adequate or proper access to a public right-of-way, lack of
8    reasonably required off-street parking, or inadequate
9    provision for loading and service.
10        (10) Deleterious land use or layout. The existence of
11    incompatible land-use relationships, buildings occupied by
12    inappropriate mixed-uses, or uses considered to be
13    noxious, offensive, or unsuitable for the surrounding
14    area.
15        (11) Lack of community planning. The proposed
16    redevelopment project area was developed prior to or
17    without the benefit or guidance of a community plan. This
18    means that the development occurred prior to the adoption
19    by the municipality of a comprehensive or other community
20    plan or that the plan was not followed at the time of the
21    area's development. This factor must be documented by
22    evidence of adverse or incompatible land-use
23    relationships, inadequate street layout, improper
24    subdivision, parcels of inadequate shape and size to meet
25    contemporary development standards, or other evidence
26    demonstrating an absence of effective community planning.

 

 

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1        (12) The area has incurred Illinois Environmental
2    Protection Agency or United States Environmental
3    Protection Agency remediation costs for, or a study
4    conducted by an independent consultant recognized as
5    having expertise in environmental remediation has
6    determined a need for, the clean-up of hazardous waste,
7    hazardous substances, or underground storage tanks
8    required by State or federal law, provided that the
9    remediation costs constitute a material impediment to the
10    development or redevelopment of the redevelopment project
11    area.
12        (13) The total equalized assessed value of the proposed
13    redevelopment project area has declined for 3 of the last 5
14    calendar years for which information is available or is
15    increasing at an annual rate that is less than the balance
16    of the municipality for 3 of the last 5 calendar years for
17    which information is available or is increasing at an
18    annual rate that is less than the Consumer Price Index for
19    All Urban Consumers published by the United States
20    Department of Labor or successor agency for 3 of the last 5
21    calendar years for which information is available.
22    (c) "Industrial park" means an area in a blighted or
23conservation area suitable for use by any manufacturing,
24industrial, research or transportation enterprise, of
25facilities to include but not be limited to factories, mills,
26processing plants, assembly plants, packing plants,

 

 

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1fabricating plants, industrial distribution centers,
2warehouses, repair overhaul or service facilities, freight
3terminals, research facilities, test facilities or railroad
4facilities.
5    (d) "Industrial park conservation area" means an area
6within the boundaries of a redevelopment project area located
7within the territorial limits of a municipality that is a labor
8surplus municipality or within 1 1/2 miles of the territorial
9limits of a municipality that is a labor surplus municipality
10if the area is annexed to the municipality; which area is zoned
11as industrial no later than at the time the municipality by
12ordinance designates the redevelopment project area, and which
13area includes both vacant land suitable for use as an
14industrial park and a blighted area or conservation area
15contiguous to such vacant land.
16    (e) "Labor surplus municipality" means a municipality in
17which, at any time during the 6 months before the municipality
18by ordinance designates an industrial park conservation area,
19the unemployment rate was over 6% and was also 100% or more of
20the national average unemployment rate for that same time as
21published in the United States Department of Labor Bureau of
22Labor Statistics publication entitled "The Employment
23Situation" or its successor publication. For the purpose of
24this subsection, if unemployment rate statistics for the
25municipality are not available, the unemployment rate in the
26municipality shall be deemed to be the same as the unemployment

 

 

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1rate in the principal county in which the municipality is
2located.
3    (f) "Municipality" shall mean a city, village,
4incorporated town, or a township that is located in the
5unincorporated portion of a county with 3 million or more
6inhabitants, if the county adopted an ordinance that approved
7the township's redevelopment plan.
8    (g) "Initial Sales Tax Amounts" means the amount of taxes
9paid under the Retailers' Occupation Tax Act, Use Tax Act,
10Service Use Tax Act, the Service Occupation Tax Act, the
11Municipal Retailers' Occupation Tax Act, and the Municipal
12Service Occupation Tax Act by retailers and servicemen on
13transactions at places located in a State Sales Tax Boundary
14during the calendar year 1985.
15    (g-1) "Revised Initial Sales Tax Amounts" means the amount
16of taxes paid under the Retailers' Occupation Tax Act, Use Tax
17Act, Service Use Tax Act, the Service Occupation Tax Act, the
18Municipal Retailers' Occupation Tax Act, and the Municipal
19Service Occupation Tax Act by retailers and servicemen on
20transactions at places located within the State Sales Tax
21Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
22    (h) "Municipal Sales Tax Increment" means an amount equal
23to the increase in the aggregate amount of taxes paid to a
24municipality from the Local Government Tax Fund arising from
25sales by retailers and servicemen within the redevelopment
26project area or State Sales Tax Boundary, as the case may be,

 

 

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1for as long as the redevelopment project area or State Sales
2Tax Boundary, as the case may be, exist over and above the
3aggregate amount of taxes as certified by the Illinois
4Department of Revenue and paid under the Municipal Retailers'
5Occupation Tax Act and the Municipal Service Occupation Tax Act
6by retailers and servicemen, on transactions at places of
7business located in the redevelopment project area or State
8Sales Tax Boundary, as the case may be, during the base year
9which shall be the calendar year immediately prior to the year
10in which the municipality adopted tax increment allocation
11financing. For purposes of computing the aggregate amount of
12such taxes for base years occurring prior to 1985, the
13Department of Revenue shall determine the Initial Sales Tax
14Amounts for such taxes and deduct therefrom an amount equal to
154% of the aggregate amount of taxes per year for each year the
16base year is prior to 1985, but not to exceed a total deduction
17of 12%. The amount so determined shall be known as the
18"Adjusted Initial Sales Tax Amounts". For purposes of
19determining the Municipal Sales Tax Increment, the Department
20of Revenue shall for each period subtract from the amount paid
21to the municipality from the Local Government Tax Fund arising
22from sales by retailers and servicemen on transactions located
23in the redevelopment project area or the State Sales Tax
24Boundary, as the case may be, the certified Initial Sales Tax
25Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
26Initial Sales Tax Amounts for the Municipal Retailers'

 

 

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1Occupation Tax Act and the Municipal Service Occupation Tax
2Act. For the State Fiscal Year 1989, this calculation shall be
3made by utilizing the calendar year 1987 to determine the tax
4amounts received. For the State Fiscal Year 1990, this
5calculation shall be made by utilizing the period from January
61, 1988, until September 30, 1988, to determine the tax amounts
7received from retailers and servicemen pursuant to the
8Municipal Retailers' Occupation Tax and the Municipal Service
9Occupation Tax Act, which shall have deducted therefrom
10nine-twelfths of the certified Initial Sales Tax Amounts, the
11Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
12Tax Amounts as appropriate. For the State Fiscal Year 1991,
13this calculation shall be made by utilizing the period from
14October 1, 1988, to June 30, 1989, to determine the tax amounts
15received from retailers and servicemen pursuant to the
16Municipal Retailers' Occupation Tax and the Municipal Service
17Occupation Tax Act which shall have deducted therefrom
18nine-twelfths of the certified Initial Sales Tax Amounts,
19Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
20Tax Amounts as appropriate. For every State Fiscal Year
21thereafter, the applicable period shall be the 12 months
22beginning July 1 and ending June 30 to determine the tax
23amounts received which shall have deducted therefrom the
24certified Initial Sales Tax Amounts, the Adjusted Initial Sales
25Tax Amounts or the Revised Initial Sales Tax Amounts, as the
26case may be.

 

 

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1    (i) "Net State Sales Tax Increment" means the sum of the
2following: (a) 80% of the first $100,000 of State Sales Tax
3Increment annually generated within a State Sales Tax Boundary;
4(b) 60% of the amount in excess of $100,000 but not exceeding
5$500,000 of State Sales Tax Increment annually generated within
6a State Sales Tax Boundary; and (c) 40% of all amounts in
7excess of $500,000 of State Sales Tax Increment annually
8generated within a State Sales Tax Boundary. If, however, a
9municipality established a tax increment financing district in
10a county with a population in excess of 3,000,000 before
11January 1, 1986, and the municipality entered into a contract
12or issued bonds after January 1, 1986, but before December 31,
131986, to finance redevelopment project costs within a State
14Sales Tax Boundary, then the Net State Sales Tax Increment
15means, for the fiscal years beginning July 1, 1990, and July 1,
161991, 100% of the State Sales Tax Increment annually generated
17within a State Sales Tax Boundary; and notwithstanding any
18other provision of this Act, for those fiscal years the
19Department of Revenue shall distribute to those municipalities
20100% of their Net State Sales Tax Increment before any
21distribution to any other municipality and regardless of
22whether or not those other municipalities will receive 100% of
23their Net State Sales Tax Increment. For Fiscal Year 1999, and
24every year thereafter until the year 2007, for any municipality
25that has not entered into a contract or has not issued bonds
26prior to June 1, 1988 to finance redevelopment project costs

 

 

09900SB0231sam001- 89 -LRB099 03162 NHT 47157 a

1within a State Sales Tax Boundary, the Net State Sales Tax
2Increment shall be calculated as follows: By multiplying the
3Net State Sales Tax Increment by 90% in the State Fiscal Year
41999; 80% in the State Fiscal Year 2000; 70% in the State
5Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
6State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
7in the State Fiscal Year 2005; 20% in the State Fiscal Year
82006; and 10% in the State Fiscal Year 2007. No payment shall
9be made for State Fiscal Year 2008 and thereafter.
10    Municipalities that issued bonds in connection with a
11redevelopment project in a redevelopment project area within
12the State Sales Tax Boundary prior to July 29, 1991, or that
13entered into contracts in connection with a redevelopment
14project in a redevelopment project area before June 1, 1988,
15shall continue to receive their proportional share of the
16Illinois Tax Increment Fund distribution until the date on
17which the redevelopment project is completed or terminated. If,
18however, a municipality that issued bonds in connection with a
19redevelopment project in a redevelopment project area within
20the State Sales Tax Boundary prior to July 29, 1991 retires the
21bonds prior to June 30, 2007 or a municipality that entered
22into contracts in connection with a redevelopment project in a
23redevelopment project area before June 1, 1988 completes the
24contracts prior to June 30, 2007, then so long as the
25redevelopment project is not completed or is not terminated,
26the Net State Sales Tax Increment shall be calculated,

 

 

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1beginning on the date on which the bonds are retired or the
2contracts are completed, as follows: By multiplying the Net
3State Sales Tax Increment by 60% in the State Fiscal Year 2002;
450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
52004; 30% in the State Fiscal Year 2005; 20% in the State
6Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
7payment shall be made for State Fiscal Year 2008 and
8thereafter. Refunding of any bonds issued prior to July 29,
91991, shall not alter the Net State Sales Tax Increment.
10    (j) "State Utility Tax Increment Amount" means an amount
11equal to the aggregate increase in State electric and gas tax
12charges imposed on owners and tenants, other than residential
13customers, of properties located within the redevelopment
14project area under Section 9-222 of the Public Utilities Act,
15over and above the aggregate of such charges as certified by
16the Department of Revenue and paid by owners and tenants, other
17than residential customers, of properties within the
18redevelopment project area during the base year, which shall be
19the calendar year immediately prior to the year of the adoption
20of the ordinance authorizing tax increment allocation
21financing.
22    (k) "Net State Utility Tax Increment" means the sum of the
23following: (a) 80% of the first $100,000 of State Utility Tax
24Increment annually generated by a redevelopment project area;
25(b) 60% of the amount in excess of $100,000 but not exceeding
26$500,000 of the State Utility Tax Increment annually generated

 

 

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1by a redevelopment project area; and (c) 40% of all amounts in
2excess of $500,000 of State Utility Tax Increment annually
3generated by a redevelopment project area. For the State Fiscal
4Year 1999, and every year thereafter until the year 2007, for
5any municipality that has not entered into a contract or has
6not issued bonds prior to June 1, 1988 to finance redevelopment
7project costs within a redevelopment project area, the Net
8State Utility Tax Increment shall be calculated as follows: By
9multiplying the Net State Utility Tax Increment by 90% in the
10State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
11in the State Fiscal Year 2001; 60% in the State Fiscal Year
122002; 50% in the State Fiscal Year 2003; 40% in the State
13Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
14State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
15No payment shall be made for the State Fiscal Year 2008 and
16thereafter.
17    Municipalities that issue bonds in connection with the
18redevelopment project during the period from June 1, 1988 until
193 years after the effective date of this Amendatory Act of 1988
20shall receive the Net State Utility Tax Increment, subject to
21appropriation, for 15 State Fiscal Years after the issuance of
22such bonds. For the 16th through the 20th State Fiscal Years
23after issuance of the bonds, the Net State Utility Tax
24Increment shall be calculated as follows: By multiplying the
25Net State Utility Tax Increment by 90% in year 16; 80% in year
2617; 70% in year 18; 60% in year 19; and 50% in year 20.

 

 

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1Refunding of any bonds issued prior to June 1, 1988, shall not
2alter the revised Net State Utility Tax Increment payments set
3forth above.
4    (l) "Obligations" mean bonds, loans, debentures, notes,
5special certificates or other evidence of indebtedness issued
6by the municipality to carry out a redevelopment project or to
7refund outstanding obligations.
8    (m) "Payment in lieu of taxes" means those estimated tax
9revenues from real property in a redevelopment project area
10derived from real property that has been acquired by a
11municipality which according to the redevelopment project or
12plan is to be used for a private use which taxing districts
13would have received had a municipality not acquired the real
14property and adopted tax increment allocation financing and
15which would result from levies made after the time of the
16adoption of tax increment allocation financing to the time the
17current equalized value of real property in the redevelopment
18project area exceeds the total initial equalized value of real
19property in said area.
20    (n) "Redevelopment plan" means the comprehensive program
21of the municipality for development or redevelopment intended
22by the payment of redevelopment project costs to reduce or
23eliminate those conditions the existence of which qualified the
24redevelopment project area as a "blighted area" or
25"conservation area" or combination thereof or "industrial park
26conservation area," and thereby to enhance the tax bases of the

 

 

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1taxing districts which extend into the redevelopment project
2area. On and after November 1, 1999 (the effective date of
3Public Act 91-478), no redevelopment plan may be approved or
4amended that includes the development of vacant land (i) with a
5golf course and related clubhouse and other facilities or (ii)
6designated by federal, State, county, or municipal government
7as public land for outdoor recreational activities or for
8nature preserves and used for that purpose within 5 years prior
9to the adoption of the redevelopment plan. For the purpose of
10this subsection, "recreational activities" is limited to mean
11camping and hunting. Each redevelopment plan shall set forth in
12writing the program to be undertaken to accomplish the
13objectives and shall include but not be limited to:
14        (A) an itemized list of estimated redevelopment
15    project costs;
16        (B) evidence indicating that the redevelopment project
17    area on the whole has not been subject to growth and
18    development through investment by private enterprise;
19        (C) an assessment of any financial impact of the
20    redevelopment project area on or any increased demand for
21    services from any taxing district affected by the plan and
22    any program to address such financial impact or increased
23    demand;
24        (D) the sources of funds to pay costs;
25        (E) the nature and term of the obligations to be
26    issued;

 

 

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1        (F) the most recent equalized assessed valuation of the
2    redevelopment project area;
3        (G) an estimate as to the equalized assessed valuation
4    after redevelopment and the general land uses to apply in
5    the redevelopment project area;
6        (H) a commitment to fair employment practices and an
7    affirmative action plan;
8        (I) if it concerns an industrial park conservation
9    area, the plan shall also include a general description of
10    any proposed developer, user and tenant of any property, a
11    description of the type, structure and general character of
12    the facilities to be developed, a description of the type,
13    class and number of new employees to be employed in the
14    operation of the facilities to be developed; and
15        (J) if property is to be annexed to the municipality,
16    the plan shall include the terms of the annexation
17    agreement.
18    The provisions of items (B) and (C) of this subsection (n)
19shall not apply to a municipality that before March 14, 1994
20(the effective date of Public Act 88-537) had fixed, either by
21its corporate authorities or by a commission designated under
22subsection (k) of Section 11-74.4-4, a time and place for a
23public hearing as required by subsection (a) of Section
2411-74.4-5. No redevelopment plan shall be adopted unless a
25municipality complies with all of the following requirements:
26        (1) The municipality finds that the redevelopment

 

 

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

 

 

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1    of a redevelopment plan and project and designation of a
2    redevelopment project area.
3        (3.5) The municipality finds, in the case of an
4    industrial park conservation area, also that the
5    municipality is a labor surplus municipality and that the
6    implementation of the redevelopment plan will reduce
7    unemployment, create new jobs and by the provision of new
8    facilities enhance the tax base of the taxing districts
9    that extend into the redevelopment project area.
10        (4) If any incremental revenues are being utilized
11    under Section 8(a)(1) or 8(a)(2) of this Act in
12    redevelopment project areas approved by ordinance after
13    January 1, 1986, the municipality finds: (a) that the
14    redevelopment project area would not reasonably be
15    developed without the use of such incremental revenues, and
16    (b) that such incremental revenues will be exclusively
17    utilized for the development of the redevelopment project
18    area.
19        (5) If the redevelopment plan will not result in
20    displacement of residents from 10 or more inhabited
21    residential units, and the municipality certifies in the
22    plan that such displacement will not result from the plan,
23    a housing impact study need not be performed. If, however,
24    the redevelopment plan would result in the displacement of
25    residents from 10 or more inhabited residential units, or
26    if the redevelopment project area contains 75 or more

 

 

09900SB0231sam001- 97 -LRB099 03162 NHT 47157 a

1    inhabited residential units and no certification is made,
2    then the municipality shall prepare, as part of the
3    separate feasibility report required by subsection (a) of
4    Section 11-74.4-5, a housing impact study.
5        Part I of the housing impact study shall include (i)
6    data as to whether the residential units are single family
7    or multi-family units, (ii) the number and type of rooms
8    within the units, if that information is available, (iii)
9    whether the units are inhabited or uninhabited, as
10    determined not less than 45 days before the date that the
11    ordinance or resolution required by subsection (a) of
12    Section 11-74.4-5 is passed, and (iv) data as to the racial
13    and ethnic composition of the residents in the inhabited
14    residential units. The data requirement as to the racial
15    and ethnic composition of the residents in the inhabited
16    residential units shall be deemed to be fully satisfied by
17    data from the most recent federal census.
18        Part II of the housing impact study shall identify the
19    inhabited residential units in the proposed redevelopment
20    project area that are to be or may be removed. If inhabited
21    residential units are to be removed, then the housing
22    impact study shall identify (i) the number and location of
23    those units that will or may be removed, (ii) the
24    municipality's plans for relocation assistance for those
25    residents in the proposed redevelopment project area whose
26    residences are to be removed, (iii) the availability of

 

 

09900SB0231sam001- 98 -LRB099 03162 NHT 47157 a

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

 

 

09900SB0231sam001- 99 -LRB099 03162 NHT 47157 a

1    located in or near the redevelopment project area within
2    the municipality.
3        (8) On and after November 1, 1999, if, after the
4    adoption of the redevelopment plan for the redevelopment
5    project area, any municipality desires to amend its
6    redevelopment plan to remove more inhabited residential
7    units than specified in its original redevelopment plan,
8    that change shall be made in accordance with the procedures
9    in subsection (c) of Section 11-74.4-5.
10        (9) For redevelopment project areas designated prior
11    to November 1, 1999, the redevelopment plan may be amended
12    without further joint review board meeting or hearing,
13    provided that the municipality shall give notice of any
14    such changes by mail to each affected taxing district and
15    registrant on the interested party registry, to authorize
16    the municipality to expend tax increment revenues for
17    redevelopment project costs defined by paragraphs (5) and
18    (7.5), subparagraphs (E) and (F) of paragraph (11), and
19    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
20    long as the changes do not increase the total estimated
21    redevelopment project costs set out in the redevelopment
22    plan by more than 5% after adjustment for inflation from
23    the date the plan was adopted.
24    (o) "Redevelopment project" means any public and private
25development project in furtherance of the objectives of a
26redevelopment plan. On and after November 1, 1999 (the

 

 

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1effective date of Public Act 91-478), no redevelopment plan may
2be approved or amended that includes the development of vacant
3land (i) with a golf course and related clubhouse and other
4facilities or (ii) designated by federal, State, county, or
5municipal government as public land for outdoor recreational
6activities or for nature preserves and used for that purpose
7within 5 years prior to the adoption of the redevelopment plan.
8For the purpose of this subsection, "recreational activities"
9is limited to mean camping and hunting.
10    (p) "Redevelopment project area" means an area designated
11by the municipality, which is not less in the aggregate than 1
121/2 acres and in respect to which the municipality has made a
13finding that there exist conditions which cause the area to be
14classified as an industrial park conservation area or a
15blighted area or a conservation area, or a combination of both
16blighted areas and conservation areas.
17    (p-1) Notwithstanding any provision of this Act to the
18contrary, on and after August 25, 2009 (the effective date of
19Public Act 96-680), a redevelopment project area may include
20areas within a one-half mile radius of an existing or proposed
21Regional Transportation Authority Suburban Transit Access
22Route (STAR Line) station without a finding that the area is
23classified as an industrial park conservation area, a blighted
24area, a conservation area, or a combination thereof, but only
25if the municipality receives unanimous consent from the joint
26review board created to review the proposed redevelopment

 

 

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1project area.
2    (q) "Redevelopment project costs", except for
3redevelopment project areas created pursuant to subsection
4(p-1), means and includes the sum total of all reasonable or
5necessary costs incurred or estimated to be incurred, and any
6such costs incidental to a redevelopment plan and a
7redevelopment project. Such costs include, without limitation,
8the following:
9        (1) Costs of studies, surveys, development of plans,
10    and specifications, implementation and administration of
11    the redevelopment plan including but not limited to staff
12    and professional service costs for architectural,
13    engineering, legal, financial, planning or other services,
14    provided however that no charges for professional services
15    may be based on a percentage of the tax increment
16    collected; except that on and after November 1, 1999 (the
17    effective date of Public Act 91-478), no contracts for
18    professional services, excluding architectural and
19    engineering services, may be entered into if the terms of
20    the contract extend beyond a period of 3 years. In
21    addition, "redevelopment project costs" shall not include
22    lobbying expenses. After consultation with the
23    municipality, each tax increment consultant or advisor to a
24    municipality that plans to designate or has designated a
25    redevelopment project area shall inform the municipality
26    in writing of any contracts that the consultant or advisor

 

 

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1    has entered into with entities or individuals that have
2    received, or are receiving, payments financed by tax
3    increment revenues produced by the redevelopment project
4    area with respect to which the consultant or advisor has
5    performed, or will be performing, service for the
6    municipality. This requirement shall be satisfied by the
7    consultant or advisor before the commencement of services
8    for the municipality and thereafter whenever any other
9    contracts with those individuals or entities are executed
10    by the consultant or advisor;
11        (1.5) After July 1, 1999, annual administrative costs
12    shall not include general overhead or administrative costs
13    of the municipality that would still have been incurred by
14    the municipality if the municipality had not designated a
15    redevelopment project area or approved a redevelopment
16    plan;
17        (1.6) The cost of marketing sites within the
18    redevelopment project area to prospective businesses,
19    developers, and investors;
20        (2) Property assembly costs, including but not limited
21    to acquisition of land and other property, real or
22    personal, or rights or interests therein, demolition of
23    buildings, site preparation, site improvements that serve
24    as an engineered barrier addressing ground level or below
25    ground environmental contamination, including, but not
26    limited to parking lots and other concrete or asphalt

 

 

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1    barriers, and the clearing and grading of land;
2        (3) Costs of rehabilitation, reconstruction or repair
3    or remodeling of existing public or private buildings,
4    fixtures, and leasehold improvements; and the cost of
5    replacing an existing public building if pursuant to the
6    implementation of a redevelopment project the existing
7    public building is to be demolished to use the site for
8    private investment or devoted to a different use requiring
9    private investment; including any direct or indirect costs
10    relating to Green Globes or LEED certified construction
11    elements or construction elements with an equivalent
12    certification;
13        (4) Costs of the construction of public works or
14    improvements, including any direct or indirect costs
15    relating to Green Globes or LEED certified construction
16    elements or construction elements with an equivalent
17    certification, except that on and after November 1, 1999,
18    redevelopment project costs shall not include the cost of
19    constructing a new municipal public building principally
20    used to provide offices, storage space, or conference
21    facilities or vehicle storage, maintenance, or repair for
22    administrative, public safety, or public works personnel
23    and that is not intended to replace an existing public
24    building as provided under paragraph (3) of subsection (q)
25    of Section 11-74.4-3 unless either (i) the construction of
26    the new municipal building implements a redevelopment

 

 

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1    project that was included in a redevelopment plan that was
2    adopted by the municipality prior to November 1, 1999 or
3    (ii) the municipality makes a reasonable determination in
4    the redevelopment plan, supported by information that
5    provides the basis for that determination, that the new
6    municipal building is required to meet an increase in the
7    need for public safety purposes anticipated to result from
8    the implementation of the redevelopment plan;
9        (5) Costs of job training and retraining projects,
10    including the cost of "welfare to work" programs
11    implemented by businesses located within the redevelopment
12    project area;
13        (6) Financing costs, including but not limited to all
14    necessary and incidental expenses related to the issuance
15    of obligations and which may include payment of interest on
16    any obligations issued hereunder including interest
17    accruing during the estimated period of construction of any
18    redevelopment project for which such obligations are
19    issued and for not exceeding 36 months thereafter and
20    including reasonable reserves related thereto;
21        (7) To the extent the municipality by written agreement
22    accepts and approves the same, all or a portion of a taxing
23    district's capital costs resulting from the redevelopment
24    project necessarily incurred or to be incurred within a
25    taxing district in furtherance of the objectives of the
26    redevelopment plan and project.

 

 

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1        (7.5) For redevelopment project areas designated (or
2    redevelopment project areas amended to add or increase the
3    number of tax-increment-financing assisted housing units)
4    on or after November 1, 1999, an elementary, secondary, or
5    unit school district's increased costs attributable to
6    assisted housing units located within the redevelopment
7    project area for which the developer or redeveloper
8    receives financial assistance through an agreement with
9    the municipality or because the municipality incurs the
10    cost of necessary infrastructure improvements within the
11    boundaries of the assisted housing sites necessary for the
12    completion of that housing as authorized by this Act, and
13    which costs shall be paid by the municipality from the
14    Special Tax Allocation Fund when the tax increment revenue
15    is received as a result of the assisted housing units and
16    shall be calculated annually as follows:
17            (A) for foundation districts, excluding any school
18        district in a municipality with a population in excess
19        of 1,000,000, by multiplying the district's increase
20        in attendance resulting from the net increase in new
21        students enrolled in that school district who reside in
22        housing units within the redevelopment project area
23        that have received financial assistance through an
24        agreement with the municipality or because the
25        municipality incurs the cost of necessary
26        infrastructure improvements within the boundaries of

 

 

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1        the housing sites necessary for the completion of that
2        housing as authorized by this Act since the designation
3        of the redevelopment project area by the most recently
4        available per capita tuition cost as defined in Section
5        10-20.12a of the School Code less any increase in
6        general State aid as defined in Section 18-8.05 of the
7        School Code or primary State aid as defined in Section
8        18-8.15 of the School Code attributable to these added
9        new students subject to the following annual
10        limitations:
11                (i) for unit school districts with a district
12            average 1995-96 Per Capita Tuition Charge of less
13            than $5,900, no more than 25% of the total amount
14            of property tax increment revenue produced by
15            those housing units that have received tax
16            increment finance assistance under this Act;
17                (ii) for elementary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 17% 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; and
23                (iii) for secondary school districts with a
24            district average 1995-96 Per Capita Tuition Charge
25            of less than $5,900, no more than 8% of the total
26            amount of property tax increment revenue produced

 

 

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1            by those housing units that have received tax
2            increment finance assistance under this Act.
3            (B) For alternate method districts, flat grant
4        districts, and foundation districts with a district
5        average 1995-96 Per Capita Tuition Charge equal to or
6        more than $5,900, excluding any school district with a
7        population in excess of 1,000,000, by multiplying the
8        district's increase in attendance resulting from the
9        net increase in new students enrolled in that school
10        district who reside in housing units within the
11        redevelopment project area that have received
12        financial assistance through an agreement with the
13        municipality or because the municipality incurs the
14        cost of necessary infrastructure improvements within
15        the boundaries of the housing sites necessary for the
16        completion of that housing as authorized by this Act
17        since the designation of the redevelopment project
18        area by the most recently available per capita tuition
19        cost as defined in Section 10-20.12a of the School Code
20        less any increase in general state aid as defined in
21        Section 18-8.05 of the School Code or primary State aid
22        as defined in Section 18-8.15 of the School Code
23        attributable to these added new students subject to the
24        following annual limitations:
25                (i) for unit school districts, no more than 40%
26            of the total amount of property tax increment

 

 

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1            revenue produced by those housing units that have
2            received tax increment finance assistance under
3            this Act;
4                (ii) for elementary school districts, no more
5            than 27% of the total amount of property tax
6            increment revenue produced by those housing units
7            that have received tax increment finance
8            assistance under this Act; and
9                (iii) for secondary school districts, no more
10            than 13% of the total amount of property tax
11            increment revenue produced by those housing units
12            that have received tax increment finance
13            assistance under this Act.
14            (C) For any school district in a municipality with
15        a population in excess of 1,000,000, the following
16        restrictions shall apply to the reimbursement of
17        increased costs under this paragraph (7.5):
18                (i) no increased costs shall be reimbursed
19            unless the school district certifies that each of
20            the schools affected by the assisted housing
21            project is at or over its student capacity;
22                (ii) the amount reimbursable shall be reduced
23            by the value of any land donated to the school
24            district by the municipality or developer, and by
25            the value of any physical improvements made to the
26            schools by the municipality or developer; and

 

 

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1                (iii) the amount reimbursed may not affect
2            amounts otherwise obligated by the terms of any
3            bonds, notes, or other funding instruments, or the
4            terms of any redevelopment agreement.
5        Any school district seeking payment under this
6        paragraph (7.5) shall, after July 1 and before
7        September 30 of each year, provide the municipality
8        with reasonable evidence to support its claim for
9        reimbursement before the municipality shall be
10        required to approve or make the payment to the school
11        district. If the school district fails to provide the
12        information during this period in any year, it shall
13        forfeit any claim to reimbursement for that year.
14        School districts may adopt a resolution waiving the
15        right to all or a portion of the reimbursement
16        otherwise required by this paragraph (7.5). By
17        acceptance of this reimbursement the school district
18        waives the right to directly or indirectly set aside,
19        modify, or contest in any manner the establishment of
20        the redevelopment project area or projects;
21        (7.7) 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 January 1, 2005 (the effective date of Public
25    Act 93-961), a public library district's increased costs
26    attributable to assisted housing units located within the

 

 

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

 

 

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1    completion of that housing as authorized by this Act since
2    the designation of the redevelopment project area by (ii)
3    the per-patron cost of providing library services so long
4    as it does not exceed $120. The per-patron cost shall be
5    the Total Operating Expenditures Per Capita for the library
6    in the previous fiscal year. The municipality may deduct
7    from the amount that it must pay to a library district
8    under this paragraph any amount that it has voluntarily
9    paid to the library district from the tax increment
10    revenue. The amount paid to a library district under this
11    paragraph (7.7) shall be no more than 2% of the amount
12    produced by the assisted housing units and deposited into
13    the Special Tax Allocation Fund.
14        A library district is not eligible for any payment
15    under this paragraph (7.7) unless the library district has
16    experienced an increase in the number of patrons from the
17    municipality that created the tax-increment-financing
18    district since the designation of the redevelopment
19    project area.
20        Any library district seeking payment under this
21    paragraph (7.7) shall, after July 1 and before September 30
22    of each year, provide the municipality with convincing
23    evidence to support its claim for reimbursement before the
24    municipality shall be required to approve or make the
25    payment to the library district. If the library district
26    fails to provide the information during this period in any

 

 

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1    year, it shall forfeit any claim to reimbursement for that
2    year. Library districts may adopt a resolution waiving the
3    right to all or a portion of the reimbursement otherwise
4    required by this paragraph (7.7). By acceptance of such
5    reimbursement, the library district shall forfeit any
6    right to directly or indirectly set aside, modify, or
7    contest in any manner whatsoever the establishment of the
8    redevelopment project area or projects;
9        (8) Relocation costs to the extent that a municipality
10    determines that relocation costs shall be paid or is
11    required to make payment of relocation costs by federal or
12    State law or in order to satisfy subparagraph (7) of
13    subsection (n);
14        (9) Payment in lieu of taxes;
15        (10) Costs of job training, retraining, advanced
16    vocational education or career education, including but
17    not limited to courses in occupational, semi-technical or
18    technical fields leading directly to employment, incurred
19    by one or more taxing districts, provided that such costs
20    (i) are related to the establishment and maintenance of
21    additional job training, advanced vocational education or
22    career education programs for persons employed or to be
23    employed by employers located in a redevelopment project
24    area; and (ii) when incurred by a taxing district or taxing
25    districts other than the municipality, are set forth in a
26    written agreement by or among the municipality and the

 

 

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

 

 

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1        available in the special tax allocation fund;
2            (D) the total of such interest payments paid
3        pursuant to this Act may not exceed 30% of the total
4        (i) cost paid or incurred by the redeveloper for the
5        redevelopment project plus (ii) redevelopment project
6        costs excluding any property assembly costs and any
7        relocation costs incurred by a municipality pursuant
8        to this Act; and
9            (E) the cost limits set forth in subparagraphs (B)
10        and (D) of paragraph (11) shall be modified for the
11        financing of rehabilitated or new housing units for
12        low-income households and very low-income households,
13        as defined in Section 3 of the Illinois Affordable
14        Housing Act. The percentage of 75% shall be substituted
15        for 30% in subparagraphs (B) and (D) of paragraph (11).
16            (F) Instead of the eligible costs provided by
17        subparagraphs (B) and (D) of paragraph (11), as
18        modified by this subparagraph, and notwithstanding any
19        other provisions of this Act to the contrary, the
20        municipality may pay from tax increment revenues up to
21        50% of the cost of construction of new housing units to
22        be occupied by low-income households and very
23        low-income households as defined in Section 3 of the
24        Illinois Affordable Housing Act. The cost of
25        construction of those units may be derived from the
26        proceeds of bonds issued by the municipality under this

 

 

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1        Act or other constitutional or statutory authority or
2        from other sources of municipal revenue that may be
3        reimbursed from tax increment revenues or the proceeds
4        of bonds issued to finance the construction of that
5        housing.
6            The eligible costs provided under this
7        subparagraph (F) of paragraph (11) shall be an eligible
8        cost for the construction, renovation, and
9        rehabilitation of all low and very low-income housing
10        units, as defined in Section 3 of the Illinois
11        Affordable Housing Act, within the redevelopment
12        project area. If the low and very low-income units are
13        part of a residential redevelopment project that
14        includes units not affordable to low and very
15        low-income households, only the low and very
16        low-income units shall be eligible for benefits under
17        subparagraph (F) of paragraph (11). The standards for
18        maintaining the occupancy by low-income households and
19        very low-income households, as defined in Section 3 of
20        the Illinois Affordable Housing Act, of those units
21        constructed with eligible costs made available under
22        the provisions of this subparagraph (F) of paragraph
23        (11) shall be established by guidelines adopted by the
24        municipality. The responsibility for annually
25        documenting the initial occupancy of the units by
26        low-income households and very low-income households,

 

 

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1        as defined in Section 3 of the Illinois Affordable
2        Housing Act, shall be that of the then current owner of
3        the property. For ownership units, the guidelines will
4        provide, at a minimum, for a reasonable recapture of
5        funds, or other appropriate methods designed to
6        preserve the original affordability of the ownership
7        units. For rental units, the guidelines will provide,
8        at a minimum, for the affordability of rent to low and
9        very low-income households. As units become available,
10        they shall be rented to income-eligible tenants. The
11        municipality may modify these guidelines from time to
12        time; the guidelines, however, shall be in effect for
13        as long as tax increment revenue is being used to pay
14        for costs associated with the units or for the
15        retirement of bonds issued to finance the units or for
16        the life of the redevelopment project area, whichever
17        is later.
18        (11.5) If the redevelopment project area is located
19    within a municipality with a population of more than
20    100,000, the cost of day care services for children of
21    employees from low-income families working for businesses
22    located within the redevelopment project area and all or a
23    portion of the cost of operation of day care centers
24    established by redevelopment project area businesses to
25    serve employees from low-income families working in
26    businesses located in the redevelopment project area. For

 

 

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1    the purposes of this paragraph, "low-income families"
2    means families whose annual income does not exceed 80% of
3    the municipal, county, or regional median income, adjusted
4    for family size, as the annual income and municipal,
5    county, or regional median income are determined from time
6    to time by the United States Department of Housing and
7    Urban Development.
8        (12) Unless explicitly stated herein the cost of
9    construction of new privately-owned buildings shall not be
10    an eligible redevelopment project cost.
11        (13) After November 1, 1999 (the effective date of
12    Public Act 91-478), none of the redevelopment project costs
13    enumerated in this subsection shall be eligible
14    redevelopment project costs if those costs would provide
15    direct financial support to a retail entity initiating
16    operations in the redevelopment project area while
17    terminating operations at another Illinois location within
18    10 miles of the redevelopment project area but outside the
19    boundaries of the redevelopment project area municipality.
20    For purposes of this paragraph, termination means a closing
21    of a retail operation that is directly related to the
22    opening of the same operation or like retail entity owned
23    or operated by more than 50% of the original ownership in a
24    redevelopment project area, but it does not mean closing an
25    operation for reasons beyond the control of the retail
26    entity, as documented by the retail entity, subject to a

 

 

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1    reasonable finding by the municipality that the current
2    location contained inadequate space, had become
3    economically obsolete, or was no longer a viable location
4    for the retailer or serviceman.
5        (14) No cost shall be a redevelopment project cost in a
6    redevelopment project area if used to demolish, remove, or
7    substantially modify a historic resource, after August 26,
8    2008 (the effective date of Public Act 95-934), unless no
9    prudent and feasible alternative exists. "Historic
10    resource" for the purpose of this item (14) means (i) a
11    place or structure that is included or eligible for
12    inclusion on the National Register of Historic Places or
13    (ii) a contributing structure in a district on the National
14    Register of Historic Places. This item (14) does not apply
15    to a place or structure for which demolition, removal, or
16    modification is subject to review by the preservation
17    agency of a Certified Local Government designated as such
18    by the National Park Service of the United States
19    Department of the Interior.
20    If a special service area has been established pursuant to
21the Special Service Area Tax Act or Special Service Area Tax
22Law, then any tax increment revenues derived from the tax
23imposed pursuant to the Special Service Area Tax Act or Special
24Service Area Tax Law may be used within the redevelopment
25project area for the purposes permitted by that Act or Law as
26well as the purposes permitted by this Act.

 

 

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1    (q-1) For redevelopment project areas created pursuant to
2subsection (p-1), redevelopment project costs are limited to
3those costs in paragraph (q) that are related to the existing
4or proposed Regional Transportation Authority Suburban Transit
5Access Route (STAR Line) station.
6    (r) "State Sales Tax Boundary" means the redevelopment
7project area or the amended redevelopment project area
8boundaries which are determined pursuant to subsection (9) of
9Section 11-74.4-8a of this Act. The Department of Revenue shall
10certify pursuant to subsection (9) of Section 11-74.4-8a the
11appropriate boundaries eligible for the determination of State
12Sales Tax Increment.
13    (s) "State Sales Tax Increment" means an amount equal to
14the increase in the aggregate amount of taxes paid by retailers
15and servicemen, other than retailers and servicemen subject to
16the Public Utilities Act, on transactions at places of business
17located within a State Sales Tax Boundary pursuant to the
18Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
19Tax Act, and the Service Occupation Tax Act, except such
20portion of such increase that is paid into the State and Local
21Sales Tax Reform Fund, the Local Government Distributive Fund,
22the Local Government Tax Fund and the County and Mass Transit
23District Fund, for as long as State participation exists, over
24and above the Initial Sales Tax Amounts, Adjusted Initial Sales
25Tax Amounts or the Revised Initial Sales Tax Amounts for such
26taxes as certified by the Department of Revenue and paid under

 

 

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1those Acts by retailers and servicemen on transactions at
2places of business located within the State Sales Tax Boundary
3during the base year which shall be the calendar year
4immediately prior to the year in which the municipality adopted
5tax increment allocation financing, less 3.0% of such amounts
6generated under the Retailers' Occupation Tax Act, Use Tax Act
7and Service Use Tax Act and the Service Occupation Tax Act,
8which sum shall be appropriated to the Department of Revenue to
9cover its costs of administering and enforcing this Section.
10For purposes of computing the aggregate amount of such taxes
11for base years occurring prior to 1985, the Department of
12Revenue shall compute the Initial Sales Tax Amount for such
13taxes and deduct therefrom an amount equal to 4% of the
14aggregate amount of taxes per year for each year the base year
15is prior to 1985, but not to exceed a total deduction of 12%.
16The amount so determined shall be known as the "Adjusted
17Initial Sales Tax Amount". For purposes of determining the
18State Sales Tax Increment the Department of Revenue shall for
19each period subtract from the tax amounts received from
20retailers and servicemen on transactions located in the State
21Sales Tax Boundary, the certified Initial Sales Tax Amounts,
22Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
23Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
24the Service Use Tax Act and the Service Occupation Tax Act. For
25the State Fiscal Year 1989 this calculation shall be made by
26utilizing the calendar year 1987 to determine the tax amounts

 

 

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1received. For the State Fiscal Year 1990, this calculation
2shall be made by utilizing the period from January 1, 1988,
3until September 30, 1988, to determine the tax amounts received
4from retailers and servicemen, which shall have deducted
5therefrom nine-twelfths of the certified Initial Sales Tax
6Amounts, Adjusted Initial Sales Tax Amounts or the Revised
7Initial Sales Tax Amounts as appropriate. For the State Fiscal
8Year 1991, this calculation shall be made by utilizing the
9period from October 1, 1988, until June 30, 1989, to determine
10the tax amounts received from retailers and servicemen, which
11shall have deducted therefrom nine-twelfths of the certified
12Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
13Amounts or the Revised Initial Sales Tax Amounts as
14appropriate. For every State Fiscal Year thereafter, the
15applicable period shall be the 12 months beginning July 1 and
16ending on June 30, to determine the tax amounts received which
17shall have deducted therefrom the certified Initial Sales Tax
18Amounts, Adjusted Initial Sales Tax Amounts or the Revised
19Initial Sales Tax Amounts. Municipalities intending to receive
20a distribution of State Sales Tax Increment must report a list
21of retailers to the Department of Revenue by October 31, 1988
22and by July 31, of each year thereafter.
23    (t) "Taxing districts" means counties, townships, cities
24and incorporated towns and villages, school, road, park,
25sanitary, mosquito abatement, forest preserve, public health,
26fire protection, river conservancy, tuberculosis sanitarium

 

 

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1and any other municipal corporations or districts with the
2power to levy taxes.
3    (u) "Taxing districts' capital costs" means those costs of
4taxing districts for capital improvements that are found by the
5municipal corporate authorities to be necessary and directly
6result from the redevelopment project.
7    (v) As used in subsection (a) of Section 11-74.4-3 of this
8Act, "vacant land" means any parcel or combination of parcels
9of real property without industrial, commercial, and
10residential buildings which has not been used for commercial
11agricultural purposes within 5 years prior to the designation
12of the redevelopment project area, unless the parcel is
13included in an industrial park conservation area or the parcel
14has been subdivided; provided that if the parcel was part of a
15larger tract that has been divided into 3 or more smaller
16tracts that were accepted for recording during the period from
171950 to 1990, then the parcel shall be deemed to have been
18subdivided, and all proceedings and actions of the municipality
19taken in that connection with respect to any previously
20approved or designated redevelopment project area or amended
21redevelopment project area are hereby validated and hereby
22declared to be legally sufficient for all purposes of this Act.
23For purposes of this Section and only for land subject to the
24subdivision requirements of the Plat Act, land is subdivided
25when the original plat of the proposed Redevelopment Project
26Area or relevant portion thereof has been properly certified,

 

 

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1acknowledged, approved, and recorded or filed in accordance
2with the Plat Act and a preliminary plat, if any, for any
3subsequent phases of the proposed Redevelopment Project Area or
4relevant portion thereof has been properly approved and filed
5in accordance with the applicable ordinance of the
6municipality.
7    (w) "Annual Total Increment" means the sum of each
8municipality's annual Net Sales Tax Increment and each
9municipality's annual Net Utility Tax Increment. The ratio of
10the Annual Total Increment of each municipality to the Annual
11Total Increment for all municipalities, as most recently
12calculated by the Department, shall determine the proportional
13shares of the Illinois Tax Increment Fund to be distributed to
14each municipality.
15    (x) "LEED certified" means any certification level of
16construction elements by a qualified Leadership in Energy and
17Environmental Design Accredited Professional as determined by
18the U.S. Green Building Council.
19    (y) "Green Globes certified" means any certification level
20of construction elements by a qualified Green Globes
21Professional as determined by the Green Building Initiative.
22(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
2396-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
241-1-12.)
 
25    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)

 

 

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1    Sec. 11-74.4-8. Tax increment allocation financing. A
2municipality may not adopt tax increment financing in a
3redevelopment project area after the effective date of this
4amendatory Act of 1997 that will encompass an area that is
5currently included in an enterprise zone created under the
6Illinois Enterprise Zone Act unless that municipality,
7pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
8amends the enterprise zone designating ordinance to limit the
9eligibility for tax abatements as provided in Section 5.4.1 of
10the Illinois Enterprise Zone Act. A municipality, at the time a
11redevelopment project area is designated, may adopt tax
12increment allocation financing by passing an ordinance
13providing that the ad valorem taxes, if any, arising from the
14levies upon taxable real property in such redevelopment project
15area by taxing districts and tax rates determined in the manner
16provided in paragraph (c) of Section 11-74.4-9 each year after
17the effective date of the ordinance until redevelopment project
18costs and all municipal obligations financing redevelopment
19project costs incurred under this Division have been paid shall
20be divided as follows:
21    (a) That portion of taxes levied upon each taxable lot,
22block, tract or parcel of real property which is attributable
23to the lower of the current equalized assessed value or the
24initial equalized assessed value of each such taxable lot,
25block, tract or parcel of real property in the redevelopment
26project area shall be allocated to and when collected shall be

 

 

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1paid by the county collector to the respective affected taxing
2districts in the manner required by law in the absence of the
3adoption of tax increment allocation financing.
4    (b) Except from a tax levied by a township to retire bonds
5issued to satisfy court-ordered damages, that portion, if any,
6of such taxes which is attributable to the increase in the
7current equalized assessed valuation of each taxable lot,
8block, tract or parcel of real property in the redevelopment
9project area over and above the initial equalized assessed
10value of each property in the project area shall be allocated
11to and when collected shall be paid to the municipal treasurer
12who shall deposit said taxes into a special fund called the
13special tax allocation fund of the municipality for the purpose
14of paying redevelopment project costs and obligations incurred
15in the payment thereof. In any county with a population of
163,000,000 or more that has adopted a procedure for collecting
17taxes that provides for one or more of the installments of the
18taxes to be billed and collected on an estimated basis, the
19municipal treasurer shall be paid for deposit in the special
20tax allocation fund of the municipality, from the taxes
21collected from estimated bills issued for property in the
22redevelopment project area, the difference between the amount
23actually collected from each taxable lot, block, tract, or
24parcel of real property within the redevelopment project area
25and an amount determined by multiplying the rate at which taxes
26were last extended against the taxable lot, block, track, or

 

 

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1parcel of real property in the manner provided in subsection
2(c) of Section 11-74.4-9 by the initial equalized assessed
3value of the property divided by the number of installments in
4which real estate taxes are billed and collected within the
5county; provided that the payments on or before December 31,
61999 to a municipal treasurer shall be made only if each of the
7following conditions are met:
8        (1) The total equalized assessed value of the
9    redevelopment project area as last determined was not less
10    than 175% of the total initial equalized assessed value.
11        (2) Not more than 50% of the total equalized assessed
12    value of the redevelopment project area as last determined
13    is attributable to a piece of property assigned a single
14    real estate index number.
15        (3) The municipal clerk has certified to the county
16    clerk that the municipality has issued its obligations to
17    which there has been pledged the incremental property taxes
18    of the redevelopment project area or taxes levied and
19    collected on any or all property in the municipality or the
20    full faith and credit of the municipality to pay or secure
21    payment for all or a portion of the redevelopment project
22    costs. The certification shall be filed annually no later
23    than September 1 for the estimated taxes to be distributed
24    in the following year; however, for the year 1992 the
25    certification shall be made at any time on or before March
26    31, 1992.

 

 

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1        (4) The municipality has not requested that the total
2    initial equalized assessed value of real property be
3    adjusted as provided in subsection (b) of Section
4    11-74.4-9.
5    The conditions of paragraphs (1) through (4) do not apply
6after December 31, 1999 to payments to a municipal treasurer
7made by a county with 3,000,000 or more inhabitants that has
8adopted an estimated billing procedure for collecting taxes. If
9a county that has adopted the estimated billing procedure makes
10an erroneous overpayment of tax revenue to the municipal
11treasurer, then the county may seek a refund of that
12overpayment. The county shall send the municipal treasurer a
13notice of liability for the overpayment on or before the
14mailing date of the next real estate tax bill within the
15county. The refund shall be limited to the amount of the
16overpayment.
17    It is the intent of this Division that after the effective
18date of this amendatory Act of 1988 a municipality's own ad
19valorem tax arising from levies on taxable real property be
20included in the determination of incremental revenue in the
21manner provided in paragraph (c) of Section 11-74.4-9. If the
22municipality does not extend such a tax, it shall annually
23deposit in the municipality's Special Tax Increment Fund an
24amount equal to 10% of the total contributions to the fund from
25all other taxing districts in that year. The annual 10% deposit
26required by this paragraph shall be limited to the actual

 

 

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

 

 

09900SB0231sam001- 129 -LRB099 03162 NHT 47157 a

1as follows:
2        (1) That portion of the taxes levied upon each taxable
3    lot, block, tract or parcel of real property which is
4    attributable to the lower of the current equalized assessed
5    value or "current equalized assessed value as adjusted" or
6    the initial equalized assessed value of each such taxable
7    lot, block, tract, or parcel of real property existing at
8    the time tax increment financing was adopted, minus the
9    total current homestead exemptions under Article 15 of the
10    Property Tax Code in the redevelopment project area shall
11    be allocated to and when collected shall be paid by the
12    county collector to the respective affected taxing
13    districts in the manner required by law in the absence of
14    the adoption of tax increment allocation financing.
15        (2) That portion, if any, of such taxes which is
16    attributable to the increase in the current equalized
17    assessed valuation of each taxable lot, block, tract, or
18    parcel of real property in the redevelopment project area,
19    over and above the initial equalized assessed value of each
20    property existing at the time tax increment financing was
21    adopted, minus the total current homestead exemptions
22    pertaining to each piece of property provided by Article 15
23    of the Property Tax Code in the redevelopment project area,
24    shall be allocated to and when collected shall be paid to
25    the municipal Treasurer, who shall deposit said taxes into
26    a special fund called the special tax allocation fund of

 

 

09900SB0231sam001- 130 -LRB099 03162 NHT 47157 a

1    the municipality for the purpose of paying redevelopment
2    project costs and obligations incurred in the payment
3    thereof.
4    The municipality may pledge in the ordinance the funds in
5and to be deposited in the special tax allocation fund for the
6payment of such costs and obligations. No part of the current
7equalized assessed valuation of each property in the
8redevelopment project area attributable to any increase above
9the total initial equalized assessed value, or the total
10initial equalized assessed value as adjusted, of such
11properties shall be used in calculating the general State
12school aid formula, provided for in Section 18-8 of the School
13Code, or the primary State aid formula, provided for in Section
1418-8.15 of the School Code, until such time as all
15redevelopment project costs have been paid as provided for in
16this Section.
17    Whenever a municipality issues bonds for the purpose of
18financing redevelopment project costs, such municipality may
19provide by ordinance for the appointment of a trustee, which
20may be any trust company within the State, and for the
21establishment of such funds or accounts to be maintained by
22such trustee as the municipality shall deem necessary to
23provide for the security and payment of the bonds. If such
24municipality provides for the appointment of a trustee, such
25trustee shall be considered the assignee of any payments
26assigned by the municipality pursuant to such ordinance and

 

 

09900SB0231sam001- 131 -LRB099 03162 NHT 47157 a

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

 

 

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1the redevelopment project area.
2    Upon the payment of all redevelopment project costs, the
3retirement of obligations, the distribution of any excess
4monies pursuant to this Section, and final closing of the books
5and records of the redevelopment project area, the municipality
6shall adopt an ordinance dissolving the special tax allocation
7fund for the redevelopment project area and terminating the
8designation of the redevelopment project area as a
9redevelopment project area. Title to real or personal property
10and public improvements acquired by or for the municipality as
11a result of the redevelopment project and plan shall vest in
12the municipality when acquired and shall continue to be held by
13the municipality after the redevelopment project area has been
14terminated. Municipalities shall notify affected taxing
15districts prior to November 1 if the redevelopment project area
16is to be terminated by December 31 of that same year. If a
17municipality extends estimated dates of completion of a
18redevelopment project and retirement of obligations to finance
19a redevelopment project, as allowed by this amendatory Act of
201993, that extension shall not extend the property tax
21increment allocation financing authorized by this Section.
22Thereafter the rates of the taxing districts shall be extended
23and taxes levied, collected and distributed in the manner
24applicable in the absence of the adoption of tax increment
25allocation financing.
26    Nothing in this Section shall be construed as relieving

 

 

09900SB0231sam001- 133 -LRB099 03162 NHT 47157 a

1property in such redevelopment project areas from being
2assessed as provided in the Property Tax Code or as relieving
3owners of such property from paying a uniform rate of taxes, as
4required by Section 4 of Article IX of the Illinois
5Constitution.
6(Source: P.A. 98-463, eff. 8-16-13.)
 
7    (65 ILCS 5/11-74.6-35)
8    Sec. 11-74.6-35. Ordinance for tax increment allocation
9financing.
10    (a) A municipality, at the time a redevelopment project
11area is designated, may adopt tax increment allocation
12financing by passing an ordinance providing that the ad valorem
13taxes, if any, arising from the levies upon taxable real
14property within the redevelopment project area by taxing
15districts and tax rates determined in the manner provided in
16subsection (b) of Section 11-74.6-40 each year after the
17effective date of the ordinance until redevelopment project
18costs and all municipal obligations financing redevelopment
19project costs incurred under this Act have been paid shall be
20divided as follows:
21        (1) That portion of the taxes levied upon each taxable
22    lot, block, tract or parcel of real property that is
23    attributable to the lower of the current equalized assessed
24    value or the initial equalized assessed value or the
25    updated initial equalized assessed value of each taxable

 

 

09900SB0231sam001- 134 -LRB099 03162 NHT 47157 a

1    lot, block, tract or parcel of real property in the
2    redevelopment project area shall be allocated to and when
3    collected shall be paid by the county collector to the
4    respective affected taxing districts in the manner
5    required by law without regard to the adoption of tax
6    increment allocation financing.
7        (2) That portion, if any, of those taxes that is
8    attributable to the increase in the current equalized
9    assessed value of each taxable lot, block, tract or parcel
10    of real property in the redevelopment project area, over
11    and above the initial equalized assessed value or the
12    updated initial equalized assessed value of each property
13    in the project area, shall be allocated to and when
14    collected shall be paid by the county collector to the
15    municipal treasurer who shall deposit that portion of those
16    taxes into a special fund called the special tax allocation
17    fund of the municipality for the purpose of paying
18    redevelopment project costs and obligations incurred in
19    the payment of those costs and obligations. In any county
20    with a population of 3,000,000 or more that has adopted a
21    procedure for collecting taxes that provides for one or
22    more of the installments of the taxes to be billed and
23    collected on an estimated basis, the municipal treasurer
24    shall be paid for deposit in the special tax allocation
25    fund of the municipality, from the taxes collected from
26    estimated bills issued for property in the redevelopment

 

 

09900SB0231sam001- 135 -LRB099 03162 NHT 47157 a

1    project area, the difference between the amount actually
2    collected from each taxable lot, block, tract, or parcel of
3    real property within the redevelopment project area and an
4    amount determined by multiplying the rate at which taxes
5    were last extended against the taxable lot, block, track,
6    or parcel of real property in the manner provided in
7    subsection (b) of Section 11-74.6-40 by the initial
8    equalized assessed value or the updated initial equalized
9    assessed value of the property divided by the number of
10    installments in which real estate taxes are billed and
11    collected within the county, provided that the payments on
12    or before December 31, 1999 to a municipal treasurer shall
13    be made only if each of the following conditions are met:
14            (A) The total equalized assessed value of the
15        redevelopment project area as last determined was not
16        less than 175% of the total initial equalized assessed
17        value.
18            (B) Not more than 50% of the total equalized
19        assessed value of the redevelopment project area as
20        last determined is attributable to a piece of property
21        assigned a single real estate index number.
22            (C) The municipal clerk has certified to the county
23        clerk that the municipality has issued its obligations
24        to which there has been pledged the incremental
25        property taxes of the redevelopment project area or
26        taxes levied and collected on any or all property in

 

 

09900SB0231sam001- 136 -LRB099 03162 NHT 47157 a

1        the municipality or the full faith and credit of the
2        municipality to pay or secure payment for all or a
3        portion of the redevelopment project costs. The
4        certification shall be filed annually no later than
5        September 1 for the estimated taxes to be distributed
6        in the following year.
7    The conditions of paragraphs (A) through (C) do not apply
8after December 31, 1999 to payments to a municipal treasurer
9made by a county with 3,000,000 or more inhabitants that has
10adopted an estimated billing procedure for collecting taxes. If
11a county that has adopted the estimated billing procedure makes
12an erroneous overpayment of tax revenue to the municipal
13treasurer, then the county may seek a refund of that
14overpayment. The county shall send the municipal treasurer a
15notice of liability for the overpayment on or before the
16mailing date of the next real estate tax bill within the
17county. The refund shall be limited to the amount of the
18overpayment.
19    (b) It is the intent of this Act that a municipality's own
20ad valorem tax arising from levies on taxable real property be
21included in the determination of incremental revenue in the
22manner provided in paragraph (b) of Section 11-74.6-40.
23    (c) If a municipality has adopted tax increment allocation
24financing for a redevelopment project area by ordinance and the
25county clerk thereafter certifies the total initial equalized
26assessed value or the total updated initial equalized assessed

 

 

09900SB0231sam001- 137 -LRB099 03162 NHT 47157 a

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

 

 

09900SB0231sam001- 138 -LRB099 03162 NHT 47157 a

1    increment allocation financing.
2        (2) That portion, if any, of those taxes that is
3    attributable to the increase in the current equalized
4    assessed value of each taxable lot, block, tract, or parcel
5    of real property in the redevelopment project area, over
6    and above the initial equalized assessed value of each
7    property existing at the time tax increment allocation
8    financing was adopted in the redevelopment project area, or
9    the updated initial equalized assessed value of each parcel
10    if the updated initial equalized assessed value of that
11    parcel has been certified in accordance with Section
12    11-74.6-40, shall be allocated to and when collected shall
13    be paid to the municipal treasurer, who shall deposit those
14    taxes into a special fund called the special tax allocation
15    fund of the municipality for the purpose of paying
16    redevelopment project costs and obligations incurred in
17    the payment thereof.
18    (d) The municipality may pledge in the ordinance the funds
19in and to be deposited in the special tax allocation fund for
20the payment of redevelopment project costs and obligations. No
21part of the current equalized assessed value of each property
22in the redevelopment project area attributable to any increase
23above the total initial equalized assessed value or the total
24initial updated equalized assessed value of the property, shall
25be used in calculating the general General State aid formula
26School Aid Formula, provided for in Section 18-8 of the School

 

 

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1Code, or the primary State aid formula, provided for in Section
218-8.15 of the School Code, until all redevelopment project
3costs have been paid as provided for in this Section.
4    Whenever a municipality issues bonds for the purpose of
5financing redevelopment project costs, that municipality may
6provide by ordinance for the appointment of a trustee, which
7may be any trust company within the State, and for the
8establishment of any funds or accounts to be maintained by that
9trustee, as the municipality deems necessary to provide for the
10security and payment of the bonds. If the municipality provides
11for the appointment of a trustee, the trustee shall be
12considered the assignee of any payments assigned by the
13municipality under that ordinance and this Section. Any amounts
14paid to the trustee as assignee shall be deposited into the
15funds or accounts established under the trust agreement, and
16shall be held by the trustee in trust for the benefit of the
17holders of the bonds. The holders of those bonds shall have a
18lien on and a security interest in those funds or accounts
19while the bonds remain outstanding and unpaid. Upon retirement
20of the bonds, the trustee shall pay over any excess amounts
21held to the municipality for deposit in the special tax
22allocation fund.
23    When the redevelopment projects costs, including without
24limitation all municipal obligations financing redevelopment
25project costs incurred under this Law, have been paid, all
26surplus funds then remaining in the special tax allocation fund

 

 

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1shall be distributed by being paid by the municipal treasurer
2to the municipality and the county collector; first to the
3municipality in direct proportion to the tax incremental
4revenue received from the municipality, but not to exceed the
5total incremental revenue received from the municipality,
6minus any annual surplus distribution of incremental revenue
7previously made. Any remaining funds shall be paid to the
8county collector who shall immediately distribute that payment
9to the taxing districts in the redevelopment project area in
10the same manner and proportion as the most recent distribution
11by the county collector to the affected districts of real
12property taxes from real property situated in the redevelopment
13project area.
14    Upon the payment of all redevelopment project costs,
15retirement of obligations and the distribution of any excess
16moneys under this Section, the municipality shall adopt an
17ordinance dissolving the special tax allocation fund for the
18redevelopment project area and terminating the designation of
19the redevelopment project area as a redevelopment project area.
20Thereafter the tax levies of taxing districts shall be
21extended, collected and distributed in the same manner
22applicable before the adoption of tax increment allocation
23financing. Municipality shall notify affected taxing districts
24prior to November if the redevelopment project area is to be
25terminated by December 31 of that same year.
26    Nothing in this Section shall be construed as relieving

 

 

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1property in a redevelopment project area from being assessed as
2provided in the Property Tax Code or as relieving owners of
3that property from paying a uniform rate of taxes, as required
4by Section 4 of Article IX of the Illinois Constitution.
5(Source: P.A. 91-474, eff. 11-1-99.)
 
6    Section 940. The Economic Development Project Area Tax
7Increment Allocation Act of 1995 is amended by changing Section
850 as follows:
 
9    (65 ILCS 110/50)
10    Sec. 50. Special tax allocation fund.
11    (a) If a county clerk has certified the "total initial
12equalized assessed value" of the taxable real property within
13an economic development project area in the manner provided in
14Section 45, each year after the date of the certification by
15the county clerk of the "total initial equalized assessed
16value", until economic development project costs and all
17municipal obligations financing economic development project
18costs have been paid, the ad valorem taxes, if any, arising
19from the levies upon the taxable real property in the economic
20development project area by taxing districts and tax rates
21determined in the manner provided in subsection (b) of Section
2245 shall be divided as follows:
23        (1) That portion of the taxes levied upon each taxable
24    lot, block, tract, or parcel of real property that is

 

 

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1    attributable to the lower of the current equalized assessed
2    value or the initial equalized assessed value of each
3    taxable lot, block, tract, or parcel of real property
4    existing at the time tax increment financing was adopted
5    shall be allocated to (and when collected shall be paid by
6    the 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 the taxes that 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 economic development project
13    area, over and above the initial equalized assessed value
14    of each property existing at the time tax increment
15    financing was adopted, shall be allocated to (and when
16    collected shall be paid to) the municipal treasurer, who
17    shall deposit the taxes into a special fund (called the
18    special tax allocation fund of the municipality) for the
19    purpose of paying economic development project costs and
20    obligations incurred in the payment of those costs.
21    (b) The municipality, by an ordinance adopting tax
22increment allocation financing, may pledge the monies in and to
23be deposited into the special tax allocation fund for the
24payment of obligations issued under this Act and for the
25payment of economic development project costs. No part of the
26current equalized assessed valuation of each property in the

 

 

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1economic development project area attributable to any increase
2above the total initial equalized assessed value of those
3properties shall be used in calculating the general State
4school aid formula under Section 18-8 of the School Code or the
5primary State aid formula under Section 18-8.15 of the School
6Code, until all economic development projects costs have been
7paid as provided for in this Section.
8    (c) When the economic development projects costs,
9including without limitation all municipal obligations
10financing economic development project costs incurred under
11this Act, have been paid, all surplus monies then remaining in
12the special tax allocation fund shall be distributed by being
13paid by the municipal treasurer to the county collector, who
14shall immediately pay the monies 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    (d) Upon the payment of all economic development project
21costs, retirement of obligations, and distribution of any
22excess monies under this Section and not later than 23 years
23from the date of the adoption of the ordinance establishing the
24economic development project area, the municipality shall
25adopt an ordinance dissolving the special tax allocation fund
26for the economic development project area and terminating the

 

 

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1designation of the economic development project area as an
2economic development project area. Thereafter, the rates of the
3taxing districts shall be extended and taxes shall be levied,
4collected, and distributed in the manner applicable in the
5absence of the adoption of tax increment allocation financing.
6    (e) Nothing in this Section shall be construed as relieving
7property in the economic development project areas from being
8assessed as provided in the Property Tax Code or as relieving
9owners or lessees of that property from paying a uniform rate
10of taxes as required by Section 4 of Article IX of the Illinois
11Constitution.
12(Source: P.A. 98-463, eff. 8-16-13.)
 
13    Section 945. The School Code is amended by changing
14Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
151F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
162-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,
1710-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
1813B-50, 13B-50.10, 13B-50.15, 14-7.02, 14-7.02b, 14-7.03,
1914-13.01, 14C-1, 14C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A,
2018-4.3, 18-8.05, 18-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9,
2127A-11, 29-5, 34-2.3, 34-8.4, 34-18, 34-18.30, 34-43.1, and
2234-53 and by adding Sections 17-3.6 and 18-8.15 as follows:
 
23    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
24    Sec. 1A-8. Powers of the Board in Assisting Districts

 

 

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

 

 

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1condition and options.
2    (b) The State Board of Education, after proper
3investigation of a district's financial condition, may certify
4that a district, including any district subject to Article 34A,
5is in financial difficulty when any of the following conditions
6occur:
7        (1) The district has issued school or teacher orders
8    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
9    of this Code.
10        (2) The district has issued tax anticipation warrants
11    or tax anticipation notes in anticipation of a second
12    year's taxes when warrants or notes in anticipation of
13    current year taxes are still outstanding, as authorized by
14    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
15    issued short-term debt against 2 future revenue sources,
16    such as, but not limited to, tax anticipation warrants and
17    general State aid or primary State aid Aid certificates or
18    tax anticipation warrants and revenue anticipation notes.
19        (3) The district has for 2 consecutive years shown an
20    excess of expenditures and other financing uses over
21    revenues and other financing sources and beginning fund
22    balances on its annual financial report for the aggregate
23    totals of the Educational, Operations and Maintenance,
24    Transportation, and Working Cash Funds.
25        (4) The district refuses to provide financial
26    information or cooperate with the State Superintendent in

 

 

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

 

 

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1budget of the district shall be consistent with the financial
2plan submitted to and approved by the State Board of Education.
3    A district certified to be in financial difficulty, other
4than a district subject to Article 34A, shall report to the
5State Board of Education at such times and in such manner as
6the State Board may direct, concerning the district's
7compliance with each financial plan. The State Board may review
8the district's operations, obtain budgetary data and financial
9statements, require the district to produce reports, and have
10access to any other information in the possession of the
11district that it deems relevant. The State Board may issue
12recommendations or directives within its powers to the district
13to assist in compliance with the financial plan. The district
14shall produce such budgetary data, financial statements,
15reports and other information and comply with such directives.
16If the State Board of Education determines that a district has
17failed to comply with its financial plan, the State Board of
18Education may rescind approval of the plan and appoint a
19Financial Oversight Panel for the district as provided in
20Section 1B-4. This action shall be taken only after the
21district has been given notice and an opportunity to appear
22before the State Board of Education to discuss its failure to
23comply with its financial plan.
24    No bonds, notes, teachers orders, tax anticipation
25warrants or other evidences of indebtedness shall be issued or
26sold by a school district or be legally binding upon or

 

 

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1enforceable against a local board of education of a district
2certified to be in financial difficulty unless and until the
3financial plan required under this Section has been approved by
4the State Board of Education.
5    Any financial profile compiled and distributed by the State
6Board of Education in Fiscal Year 2009 or any fiscal year
7thereafter shall incorporate such adjustments as may be needed
8in the profile scores to reflect the financial effects of the
9inability or refusal of the State of Illinois to make timely
10disbursements of any general State aid, primary State aid, or
11mandated categorical aid payments due school districts or to
12fully reimburse school districts for mandated categorical
13programs pursuant to reimbursement formulas provided in this
14School Code.
15(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1697-429, eff. 8-16-11.)
 
17    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
18    Sec. 1B-5. When a petition for emergency financial
19assistance for a school district is allowed by the State Board
20under Section 1B-4, the State Superintendent shall within 10
21days thereafter appoint 3 members to serve at the State
22Superintendent's pleasure on a Financial Oversight Panel for
23the district. The State Superintendent shall designate one of
24the members of the Panel to serve as its Chairman. In the event
25of vacancy or resignation the State Superintendent shall

 

 

09900SB0231sam001- 150 -LRB099 03162 NHT 47157 a

1appoint a successor within 10 days of receiving notice thereof.
2    Members of the Panel shall be selected primarily on the
3basis of their experience and education in financial
4management, with consideration given to persons knowledgeable
5in education finance. A member of the Panel may not be a board
6member or employee of the district for which the Panel is
7constituted, nor may a member have a direct financial interest
8in that district.
9    Panel members shall serve without compensation, but may be
10reimbursed for travel and other necessary expenses incurred in
11the performance of their official duties by the State Board.
12The amount reimbursed Panel members for their expenses shall be
13charged to the school district as part of any emergency
14financial assistance and incorporated as a part of the terms
15and conditions for repayment of such assistance or shall be
16deducted from the district's general State aid or primary State
17aid as provided in Section 1B-8.
18    The first meeting of the Panel shall be held at the call of
19the Chairman. The Panel may elect such other officers as it
20deems appropriate. The Panel shall prescribe the times and
21places for its meetings and the manner in which regular and
22special meetings may be called, and shall comply with the Open
23Meetings Act.
24    Two members of the Panel shall constitute a quorum, and the
25affirmative vote of 2 members shall be necessary for any
26decision or action to be taken by the Panel.

 

 

09900SB0231sam001- 151 -LRB099 03162 NHT 47157 a

1    The Panel and the State Superintendent shall cooperate with
2each other in the exercise of their respective powers. The
3Panel shall report not later than September 1 annually to the
4State Board and the State Superintendent with respect to its
5activities and the condition of the school district for the
6previous fiscal year.
7    Any Financial Oversight Panel established under this
8Article shall remain in existence for not less than 3 years nor
9more than 10 years from the date the State Board grants the
10petition under Section 1B-4. If after 3 years the school
11district has repaid all of its obligations resulting from
12emergency State financial assistance provided under this
13Article and has improved its financial situation, the board of
14education may, not more frequently than once in any 12 month
15period, petition the State Board to dissolve the Financial
16Oversight Panel, terminate the oversight responsibility, and
17remove the district's certification under Section 1A-8 as a
18district in financial difficulty. In acting on such a petition
19the State Board shall give additional weight to the
20recommendations of the State Superintendent and the Financial
21Oversight Panel.
22(Source: P.A. 88-618, eff. 9-9-94.)
 
23    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
24    Sec. 1B-6. General powers. The purpose of the Financial
25Oversight Panel shall be to exercise financial control over the

 

 

09900SB0231sam001- 152 -LRB099 03162 NHT 47157 a

1board of education, and, when approved by the State Board and
2the State Superintendent of Education, to furnish financial
3assistance so that the board can provide public education
4within the board's jurisdiction while permitting the board to
5meet its obligations to its creditors and the holders of its
6notes and bonds. Except as expressly limited by this Article,
7the Panel shall have all powers necessary to meet its
8responsibilities and to carry out its purposes and the purposes
9of this Article, including, but not limited to, the following
10powers:
11    (a) to sue and be sued;
12    (b) to provide for its organization and internal
13management;
14    (c) to appoint a Financial Administrator to serve as the
15chief executive officer of the Panel. The Financial
16Administrator may be an individual, partnership, corporation,
17including an accounting firm, or other entity determined by the
18Panel to be qualified to serve; and to appoint other officers,
19agents, and employees of the Panel, define their duties and
20qualifications and fix their compensation and employee
21benefits;
22    (d) to approve the local board of education appointments to
23the positions of treasurer in a Class I county school unit and
24in each school district which forms a part of a Class II county
25school unit but which no longer is subject to the jurisdiction
26and authority of a township treasurer or trustees of schools of

 

 

09900SB0231sam001- 153 -LRB099 03162 NHT 47157 a

1a township because the district has withdrawn from the
2jurisdiction and authority of the township treasurer and the
3trustees of schools of the township or because those offices
4have been abolished as provided in subsection (b) or (c) of
5Section 5-1, and chief school business official, if such
6official is not the superintendent of the district. Either the
7board or the Panel may remove such treasurer or chief school
8business official;
9    (e) to approve any and all bonds, notes, teachers orders,
10tax anticipation warrants, and other evidences of indebtedness
11prior to issuance or sale by the school district; and
12notwithstanding any other provision of The School Code, as now
13or hereafter amended, no bonds, notes, teachers orders, tax
14anticipation warrants or other evidences of indebtedness shall
15be issued or sold by the school district or be legally binding
16upon or enforceable against the local board of education unless
17and until the approval of the Panel has been received;
18    (f) to approve all property tax levies of the school
19district and require adjustments thereto as the Panel deems
20necessary or advisable;
21    (g) to require and approve a school district financial
22plan;
23    (h) to approve and require revisions of the school district
24budget;
25    (i) to approve all contracts and other obligations as the
26Panel deems necessary and appropriate;

 

 

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1    (j) to authorize emergency State financial assistance,
2including requirements regarding the terms and conditions of
3repayment of such assistance, and to require the board of
4education to levy a separate local property tax, subject to the
5limitations of Section 1B-8, sufficient to repay such
6assistance consistent with the terms and conditions of
7repayment and the district's approved financial plan and
8budget;
9    (k) to request the regional superintendent to make
10appointments to fill all vacancies on the local school board as
11provided in Section 10-10;
12    (l) to recommend dissolution or reorganization of the
13school district to the General Assembly if in the Panel's
14judgment the circumstances so require;
15    (m) to direct a phased reduction in the oversight
16responsibilities of the Financial Administrator and of the
17Panel as the circumstances permit;
18    (n) to determine the amount of emergency State financial
19assistance to be made available to the school district, and to
20establish an operating budget for the Panel to be supported by
21funds available from such assistance, with the assistance and
22the budget required to be approved by the State Superintendent;
23    (o) to procure insurance against any loss in such amounts
24and from such insurers as it deems necessary;
25    (p) to engage the services of consultants for rendering
26professional and technical assistance and advice on matters

 

 

09900SB0231sam001- 155 -LRB099 03162 NHT 47157 a

1within the Panel's power;
2    (q) to contract for and to accept any gifts, grants or
3loans of funds or property or financial or other aid in any
4form from the federal government, State government, unit of
5local government, school district or any agency or
6instrumentality thereof, or from any other private or public
7source, and to comply with the terms and conditions thereof;
8    (r) to pay the expenses of its operations based on the
9Panel's budget as approved by the State Superintendent from
10emergency financial assistance funds available to the district
11or from deductions from the district's general State aid or
12primary State aid;
13    (s) to do any and all things necessary or convenient to
14carry out its purposes and exercise the powers given to the
15Panel by this Article; and
16    (t) to recommend the creation of a school finance authority
17pursuant to Article 1F of this Code.
18(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
19    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
20    Sec. 1B-7. Financial Administrator; Powers and Duties. The
21Financial Administrator appointed by the Financial Oversight
22Panel shall serve as the Panel's chief executive officer. The
23Financial Administrator shall exercise the powers and duties
24required by the Panel, including but not limited to the
25following:

 

 

09900SB0231sam001- 156 -LRB099 03162 NHT 47157 a

1    (a) to provide guidance and recommendations to the local
2board and officials of the school district in developing the
3district's financial plan and budget prior to board action;
4    (b) to direct the local board to reorganize its financial
5accounts, budgetary systems, and internal accounting and
6financial controls, in whatever manner the Panel deems
7appropriate to achieve greater financial responsibility and to
8reduce financial inefficiency, and to provide technical
9assistance to aid the district in accomplishing the
10reorganization;
11    (c) to make recommendations to the Financial Oversight
12Panel concerning the school district's financial plan and
13budget, and all other matters within the scope of the Panel's
14authority;
15    (d) to prepare and recommend to the Panel a proposal for
16emergency State financial assistance for the district,
17including recommended terms and conditions of repayment, and an
18operations budget for the Panel to be funded from the emergency
19assistance or from deductions from the district's general State
20aid or primary State aid;
21    (e) to require the local board to prepare and submit
22preliminary staffing and budgetary analyses annually prior to
23February 1 in such manner and form as the Financial
24Administrator shall prescribe; and
25    (f) subject to the direction of the Panel, to do all other
26things necessary or convenient to carry out its purposes and

 

 

09900SB0231sam001- 157 -LRB099 03162 NHT 47157 a

1exercise the powers given to the Panel under this Article.
2(Source: P.A. 88-618, eff. 9-9-94.)
 
3    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
4    Sec. 1B-8. There is created in the State Treasury a special
5fund to be known as the School District Emergency Financial
6Assistance Fund (the "Fund"). The School District Emergency
7Financial Assistance Fund shall consist of appropriations,
8loan repayments, grants from the federal government, and
9donations from any public or private source. Moneys in the Fund
10may be appropriated only to the Illinois Finance Authority and
11the State Board for those purposes authorized under this
12Article and Articles 1F and 1H of this Code. The appropriation
13may be allocated and expended by the State Board for
14contractual services to provide technical assistance or
15consultation to school districts to assess their financial
16condition and to Financial Oversight Panels that petition for
17emergency financial assistance grants. The Illinois Finance
18Authority may provide loans to school districts which are the
19subject of an approved petition for emergency financial
20assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
21Neither the State Board of Education nor the Illinois Finance
22Authority may collect any fees for providing these services.
23    From the amount allocated to each such school district
24under this Article the State Board shall identify a sum
25sufficient to cover all approved costs of the Financial

 

 

09900SB0231sam001- 158 -LRB099 03162 NHT 47157 a

1Oversight Panel established for the respective school
2district. If the State Board and State Superintendent of
3Education have not approved emergency financial assistance in
4conjunction with the appointment of a Financial Oversight
5Panel, the Panel's approved costs shall be paid from deductions
6from the district's general State aid or primary State aid.
7    The Financial Oversight Panel may prepare and file with the
8State Superintendent a proposal for emergency financial
9assistance for the school district and for its operations
10budget. No expenditures from the Fund shall be authorized by
11the State Superintendent until he or she has approved the
12request of the Panel, either as submitted or in such lesser
13amount determined by the State Superintendent.
14    The maximum amount of an emergency financial assistance
15loan which may be allocated to any school district under this
16Article, including moneys necessary for the operations of the
17Panel, shall not exceed $4,000 times the number of pupils
18enrolled in the school district during the school year ending
19June 30 prior to the date of approval by the State Board of the
20petition for emergency financial assistance, as certified to
21the local board and the Panel by the State Superintendent. An
22emergency financial assistance grant shall not exceed $1,000
23times the number of such pupils. A district may receive both a
24loan and a grant.
25    The payment of an emergency State financial assistance
26grant or loan shall be subject to appropriation by the General

 

 

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1Assembly. Payment of the emergency State financial assistance
2loan is subject to the applicable provisions of the Illinois
3Finance Authority Act. Emergency State financial assistance
4allocated and paid to a school district under this Article may
5be applied to any fund or funds from which the local board of
6education of that district is authorized to make expenditures
7by law.
8    Any emergency financial assistance grant proposed by the
9Financial Oversight Panel and approved by the State
10Superintendent may be paid in its entirety during the initial
11year of the Panel's existence or spread in equal or declining
12amounts over a period of years not to exceed the period of the
13Panel's existence. An emergency financial assistance loan
14proposed by the Financial Oversight Panel and approved by the
15Illinois Finance Authority may be paid in its entirety during
16the initial year of the Panel's existence or spread in equal or
17declining amounts over a period of years not to exceed the
18period of the Panel's existence. All loans made by the Illinois
19Finance Authority for a school district shall be required to be
20repaid, with simple interest over the term of the loan at a
21rate equal to 50% of the one-year Constant Maturity Treasury
22(CMT) yield as last published by the Board of Governors of the
23Federal Reserve System before the date on which the district's
24loan is approved by the Illinois Finance Authority, not later
25than the date the Financial Oversight Panel ceases to exist.
26The Panel shall establish and the Illinois Finance Authority

 

 

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1shall approve the terms and conditions, including the schedule,
2of repayments. The schedule shall provide for repayments
3commencing July 1 of each year or upon each fiscal year's
4receipt of moneys from a tax levy for emergency financial
5assistance. Repayment shall be incorporated into the annual
6budget of the school district and may be made from any fund or
7funds of the district in which there are moneys available. An
8emergency financial assistance loan to the Panel or district
9shall not be considered part of the calculation of a district's
10debt for purposes of the limitation specified in Section 19-1
11of this Code. Default on repayment is subject to the Illinois
12Grant Funds Recovery Act. When moneys are repaid as provided
13herein they shall not be made available to the local board for
14further use as emergency financial assistance under this
15Article at any time thereafter. All repayments required to be
16made by a school district shall be received by the State Board
17and deposited in the School District Emergency Financial
18Assistance Fund.
19    In establishing the terms and conditions for the repayment
20obligation of the school district the Panel shall annually
21determine whether a separate local property tax levy is
22required. The board of any school district with a tax rate for
23educational purposes for the prior year of less than 120% of
24the maximum rate for educational purposes authorized by Section
2517-2 shall provide for a separate tax levy for emergency
26financial assistance repayment purposes. Such tax levy shall

 

 

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1not be subject to referendum approval. The amount of the levy
2shall be equal to the amount necessary to meet the annual
3repayment obligations of the district as established by the
4Panel, or 20% of the amount levied for educational purposes for
5the prior year, whichever is less. However, no district shall
6be required to levy the tax if the district's operating tax
7rate as determined under Section 18-8, or 18-8.05, or 18-8.15
8exceeds 200% of the district's tax rate for educational
9purposes for the prior year.
10(Source: P.A. 97-429, eff. 8-16-11.)
 
11    (105 ILCS 5/1C-1)
12    Sec. 1C-1. Purpose. The purpose of this Article is to
13permit greater flexibility and efficiency in the distribution
14and use of certain State funds available to local education
15agencies for the improvement of the quality of educational
16services pursuant to locally established priorities.
17    Through fiscal year 2016, this This Article does not apply
18to school districts having a population in excess of 500,000
19inhabitants.
20(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
2189-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
22    (105 ILCS 5/1C-2)
23    Sec. 1C-2. Block grants.
24    (a) For fiscal year 1999, and each fiscal year thereafter,

 

 

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1the State Board of Education shall award to school districts
2block grants as described in subsection (c). The State Board of
3Education may adopt rules and regulations necessary to
4implement this Section. In accordance with Section 2-3.32, all
5state block grants are subject to an audit. Therefore, block
6grant receipts and block grant expenditures shall be recorded
7to the appropriate fund code.
8    (b) (Blank).
9    (c) An Early Childhood Education Block Grant shall be
10created by combining the following programs: Preschool
11Education, Parental Training and Prevention Initiative. These
12funds shall be distributed to school districts and other
13entities on a competitive basis, except that the State Board of
14Education shall award to a school district having a population
15exceeding 500,000 inhabitants 37% of the funds in each fiscal
16year. Not less than 14% of this grant shall be used to fund
17programs for children ages 0-3, which percentage shall increase
18to at least 20% by Fiscal Year 2016. However, if, in a given
19fiscal year, the amount appropriated for the Early Childhood
20Education Block Grant is insufficient to increase the
21percentage of the grant to fund programs for children ages 0-3
22without reducing the amount of the grant for existing providers
23of preschool education programs, then the percentage of the
24grant to fund programs for children ages 0-3 may be held steady
25instead of increased.
26(Source: P.A. 98-645, eff. 7-1-14.)
 

 

 

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1    (105 ILCS 5/1D-1)
2    Sec. 1D-1. Block grant funding.
3    (a) For fiscal year 1996 through fiscal year 2016 and each
4fiscal year thereafter, the State Board of Education shall
5award to a school district having a population exceeding
6500,000 inhabitants a general education block grant and an
7educational services block grant, determined as provided in
8this Section, in lieu of distributing to the district separate
9State funding for the programs described in subsections (b) and
10(c). The provisions of this Section, however, do not apply to
11any federal funds that the district is entitled to receive. In
12accordance with Section 2-3.32, all block grants are subject to
13an audit. Therefore, block grant receipts and block grant
14expenditures shall be recorded to the appropriate fund code for
15the designated block grant.
16    (b) The general education block grant shall include the
17following programs: REI Initiative, Summer Bridges, Preschool
18At Risk, K-6 Comprehensive Arts, School Improvement Support,
19Urban Education, Scientific Literacy, Substance Abuse
20Prevention, Second Language Planning, Staff Development,
21Outcomes and Assessment, K-6 Reading Improvement, 7-12
22Continued Reading Improvement, Truants' Optional Education,
23Hispanic Programs, Agriculture Education, Parental Education,
24Prevention Initiative, Report Cards, and Criminal Background
25Investigations. Notwithstanding any other provision of law,

 

 

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1all amounts paid under the general education block grant from
2State appropriations to a school district in a city having a
3population exceeding 500,000 inhabitants shall be appropriated
4and expended by the board of that district for any of the
5programs included in the block grant or any of the board's
6lawful purposes.
7    (c) The educational services block grant shall include the
8following programs: Regular and Vocational Transportation,
9State Lunch and Free Breakfast Program, Special Education
10(Personnel, Transportation, Orphanage, Private Tuition),
11funding for children requiring special education services,
12Summer School, Educational Service Centers, and
13Administrator's Academy. This subsection (c) does not relieve
14the district of its obligation to provide the services required
15under a program that is included within the educational
16services block grant. It is the intention of the General
17Assembly in enacting the provisions of this subsection (c) to
18relieve the district of the administrative burdens that impede
19efficiency and accompany single-program funding. The General
20Assembly encourages the board to pursue mandate waivers
21pursuant to Section 2-3.25g.
22    The funding program included in the educational services
23block grant for funding for children requiring special
24education services in each fiscal year shall be treated in that
25fiscal year as a payment to the school district in respect of
26services provided or costs incurred in the prior fiscal year,

 

 

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1calculated in each case as provided in this Section. Nothing in
2this Section shall change the nature of payments for any
3program that, apart from this Section, would be or, prior to
4adoption or amendment of this Section, was on the basis of a
5payment in a fiscal year in respect of services provided or
6costs incurred in the prior fiscal year, calculated in each
7case as provided in this Section.
8    (d) For fiscal year 1996 through fiscal year 2016 and each
9fiscal year thereafter, the amount of the district's block
10grants shall be determined as follows: (i) with respect to each
11program that is included within each block grant, the district
12shall receive an amount equal to the same percentage of the
13current fiscal year appropriation made for that program as the
14percentage of the appropriation received by the district from
15the 1995 fiscal year appropriation made for that program, and
16(ii) the total amount that is due the district under the block
17grant shall be the aggregate of the amounts that the district
18is entitled to receive for the fiscal year with respect to each
19program that is included within the block grant that the State
20Board of Education shall award the district under this Section
21for that fiscal year. In the case of the Summer Bridges
22program, the amount of the district's block grant shall be
23equal to 44% of the amount of the current fiscal year
24appropriation made for that program.
25    (e) The district is not required to file any application or
26other claim in order to receive the block grants to which it is

 

 

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1entitled under this Section. The State Board of Education shall
2make payments to the district of amounts due under the
3district's block grants on a schedule determined by the State
4Board of Education.
5    (f) A school district to which this Section applies shall
6report to the State Board of Education on its use of the block
7grants in such form and detail as the State Board of Education
8may specify. In addition, the report must include the following
9description for the district, which must also be reported to
10the General Assembly: block grant allocation and expenditures
11by program; population and service levels by program; and
12administrative expenditures by program. The State Board of
13Education shall ensure that the reporting requirements for the
14district are the same as for all other school districts in this
15State.
16    (g) Through fiscal year 2016, this This paragraph provides
17for the treatment of block grants under Article 1C for purposes
18of calculating the amount of block grants for a district under
19this Section. Those block grants under Article 1C are, for this
20purpose, treated as included in the amount of appropriation for
21the various programs set forth in paragraph (b) above. The
22appropriation in each current fiscal year for each block grant
23under Article 1C shall be treated for these purposes as
24appropriations for the individual program included in that
25block grant. The proportion of each block grant so allocated to
26each such program included in it shall be the proportion which

 

 

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1the appropriation for that program was of all appropriations
2for such purposes now in that block grant, in fiscal 1995.
3    Payments to the school district under this Section with
4respect to each program for which payments to school districts
5generally, as of the date of this amendatory Act of the 92nd
6General Assembly, are on a reimbursement basis shall continue
7to be made to the district on a reimbursement basis, pursuant
8to the provisions of this Code governing those programs.
9    (h) Notwithstanding any other provision of law, any school
10district receiving a block grant under this Section may
11classify all or a portion of the funds that it receives in a
12particular fiscal year from any block grant authorized under
13this Code or from general State aid pursuant to Section 18-8.05
14of this Code (other than supplemental general State aid) as
15funds received in connection with any funding program for which
16it is entitled to receive funds from the State in that fiscal
17year (including, without limitation, any funding program
18referred to in subsection (c) of this Section), regardless of
19the source or timing of the receipt. The district may not
20classify more funds as funds received in connection with the
21funding program than the district is entitled to receive in
22that fiscal year for that program. Any classification by a
23district must be made by a resolution of its board of
24education. The resolution must identify the amount of any block
25grant or general State aid to be classified under this
26subsection (h) and must specify the funding program to which

 

 

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1the funds are to be treated as received in connection
2therewith. This resolution is controlling as to the
3classification of funds referenced therein. A certified copy of
4the resolution must be sent to the State Superintendent of
5Education. The resolution shall still take effect even though a
6copy of the resolution has not been sent to the State
7Superintendent of Education in a timely manner. No
8classification under this subsection (h) by a district shall
9affect the total amount or timing of money the district is
10entitled to receive under this Code. No classification under
11this subsection (h) by a district shall in any way relieve the
12district from or affect any requirements that otherwise would
13apply with respect to the block grant as provided in this
14Section, including any accounting of funds by source, reporting
15expenditures by original source and purpose, reporting
16requirements, or requirements of provision of services.
17(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1897-813, eff. 7-13-12.)
 
19    (105 ILCS 5/1E-20)
20    (This Section scheduled to be repealed in accordance with
21105 ILCS 5/1E-165)
22    Sec. 1E-20. Members of Authority; meetings.
23    (a) When a petition for a School Finance Authority is
24allowed by the State Board under Section 1E-15 of this Code,
25the State Superintendent shall within 10 days thereafter

 

 

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1appoint 5 members to serve on a School Finance Authority for
2the district. Of the initial members, 2 shall be appointed to
3serve a term of 2 years and 3 shall be appointed to serve a term
4of 3 years. Thereafter, each member shall serve for a term of 3
5years and until his or her successor has been appointed. The
6State Superintendent shall designate one of the members of the
7Authority to serve as its Chairperson. In the event of vacancy
8or resignation, the State Superintendent shall, within 10 days
9after receiving notice, appoint a successor to serve out that
10member's term. The State Superintendent may remove a member for
11incompetence, malfeasance, neglect of duty, or other just
12cause.
13    Members of the Authority shall be selected primarily on the
14basis of their experience and education in financial
15management, with consideration given to persons knowledgeable
16in education finance. Two members of the Authority shall be
17residents of the school district that the Authority serves. A
18member of the Authority may not be a member of the district's
19school board or an employee of the district nor may a member
20have a direct financial interest in the district.
21    Authority members shall serve without compensation, but
22may be reimbursed by the State Board for travel and other
23necessary expenses incurred in the performance of their
24official duties. Unless paid from bonds issued under Section
251E-65 of this Code, the amount reimbursed members for their
26expenses shall be charged to the school district as part of any

 

 

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1emergency financial assistance and incorporated as a part of
2the terms and conditions for repayment of the assistance or
3shall be deducted from the district's general State aid or
4primary State aid as provided in Section 1B-8 of this Code.
5    The Authority may elect such officers as it deems
6appropriate.
7    (b) The first meeting of the Authority shall be held at the
8call of the Chairperson. The Authority shall prescribe the
9times and places for its meetings and the manner in which
10regular and special meetings may be called and shall comply
11with the Open Meetings Act.
12    Three members of the Authority shall constitute a quorum.
13When a vote is taken upon any measure before the Authority, a
14quorum being present, a majority of the votes of the members
15voting on the measure shall determine the outcome.
16(Source: P.A. 92-547, eff. 6-13-02.)
 
17    (105 ILCS 5/1F-20)
18(This Section scheduled to be repealed in accordance with 105
19ILCS 5/1F-165)
20    Sec. 1F-20. Members of Authority; meetings.
21    (a) Upon establishment of a School Finance Authority under
22Section 1F-15 of this Code, the State Superintendent shall
23within 15 days thereafter appoint 5 members to serve on a
24School Finance Authority for the district. Of the initial
25members, 2 shall be appointed to serve a term of 2 years and 3

 

 

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1shall be appointed to serve a term of 3 years. Thereafter, each
2member shall serve for a term of 3 years and until his or her
3successor has been appointed. The State Superintendent shall
4designate one of the members of the Authority to serve as its
5Chairperson. In the event of vacancy or resignation, the State
6Superintendent shall, within 10 days after receiving notice,
7appoint a successor to serve out that member's term. The State
8Superintendent may remove a member for incompetence,
9malfeasance, neglect of duty, or other just cause.
10    Members of the Authority shall be selected primarily on the
11basis of their experience and education in financial
12management, with consideration given to persons knowledgeable
13in education finance. Two members of the Authority shall be
14residents of the school district that the Authority serves. A
15member of the Authority may not be a member of the district's
16school board or an employee of the district nor may a member
17have a direct financial interest in the district.
18    Authority members shall be paid a stipend approved by the
19State Superintendent of not more than $100 per meeting and may
20be reimbursed by the State Board for travel and other necessary
21expenses incurred in the performance of their official duties.
22Unless paid from bonds issued under Section 1F-65 of this Code,
23the amount reimbursed members for their expenses shall be
24charged to the school district as part of any emergency
25financial assistance and incorporated as a part of the terms
26and conditions for repayment of the assistance or shall be

 

 

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1deducted from the district's general State aid or primary State
2aid as provided in Section 1B-8 of this Code.
3    The Authority may elect such officers as it deems
4appropriate.
5    (b) The first meeting of the Authority shall be held at the
6call of the Chairperson. The Authority shall prescribe the
7times and places for its meetings and the manner in which
8regular and special meetings may be called and shall comply
9with the Open Meetings Act.
10    Three members of the Authority shall constitute a quorum.
11When a vote is taken upon any measure before the Authority, a
12quorum being present, a majority of the votes of the members
13voting on the measure shall determine the outcome.
14(Source: P.A. 94-234, eff. 7-1-06.)
 
15    (105 ILCS 5/1F-62)
16(This Section scheduled to be repealed in accordance with 105
17ILCS 5/1F-165)
18    Sec. 1F-62. School District Emergency Financial Assistance
19Fund; grants and loans.
20    (a) Moneys in the School District Emergency Financial
21Assistance Fund established under Section 1B-8 of this Code may
22be allocated and expended by the State Board as grants to
23provide technical and consulting services to school districts
24to assess their financial condition and by the Illinois Finance
25Authority for emergency financial assistance loans to a School

 

 

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

 

 

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1year ending June 30 prior to the date of approval by the State
2Board of the petition for emergency financial assistance, as
3certified to the school board and the School Finance Authority
4by the State Superintendent. However, this limitation does not
5apply to borrowing by the district secured by amounts levied by
6the district prior to establishment of the School Finance
7Authority. An emergency financial assistance grant shall not
8exceed $1,000 times the number of such pupils. A district may
9receive both a loan and a grant.
10    (c) The payment of a State emergency financial assistance
11grant or loan shall be subject to appropriation by the General
12Assembly. State emergency financial assistance allocated and
13paid to a School Finance Authority under this Article may be
14applied to any fund or funds from which the School Finance
15Authority is authorized to make expenditures by law.
16    (d) Any State emergency financial assistance proposed by
17the School Finance Authority and approved by the State
18Superintendent may be paid in its entirety during the initial
19year of the School Finance Authority's existence or spread in
20equal or declining amounts over a period of years not to exceed
21the period of the School Finance Authority's existence. The
22State Superintendent shall not approve any loan to the School
23Finance Authority unless the School Finance Authority has been
24unable to borrow sufficient funds to operate the district.
25    All loan payments made from the School District Emergency
26Financial Assistance Fund to a School Finance Authority shall

 

 

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1be required to be repaid not later than the date the School
2Finance Authority ceases to exist, with simple interest over
3the term of the loan at a rate equal to 50% of the one-year
4Constant Maturity Treasury (CMT) yield as last published by the
5Board of Governors of the Federal Reserve System before the
6date on which the School Finance Authority's loan is approved
7by the State Board.
8    The School Finance Authority shall establish and the
9Illinois Finance Authority shall approve the terms and
10conditions of the loan, including the schedule of repayments.
11The schedule shall provide for repayments commencing July 1 of
12each year or upon each fiscal year's receipt of moneys from a
13tax levy for emergency financial assistance. Repayment shall be
14incorporated into the annual budget of the district and may be
15made from any fund or funds of the district in which there are
16moneys available. Default on repayment is subject to the
17Illinois Grant Funds Recovery Act. When moneys are repaid as
18provided in this Section, they shall not be made available to
19the School Finance Authority for further use as emergency
20financial assistance under this Article at any time thereafter.
21All repayments required to be made by a School Finance
22Authority shall be received by the State Board and deposited in
23the School District Emergency Financial Assistance Fund.
24    In establishing the terms and conditions for the repayment
25obligation of the School Finance Authority, the School Finance
26Authority shall annually determine whether a separate local

 

 

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1property tax levy is required to meet that obligation. The
2School Finance Authority shall provide for a separate tax levy
3for emergency financial assistance repayment purposes. This
4tax levy shall not be subject to referendum approval. The
5amount of the levy shall not exceed the amount necessary to
6meet the annual emergency financial repayment obligations of
7the district, including principal and interest, as established
8by the School Finance Authority.
9(Source: P.A. 94-234, eff. 7-1-06.)
 
10    (105 ILCS 5/1H-20)
11    Sec. 1H-20. Members of Panel; meetings.
12    (a) Upon establishment of a Financial Oversight Panel under
13Section 1H-15 of this Code, the State Superintendent shall
14within 15 working days thereafter appoint 5 members to serve on
15a Financial Oversight Panel for the district. Members appointed
16to the Panel shall serve at the pleasure of the State
17Superintendent. The State Superintendent shall designate one
18of the members of the Panel to serve as its Chairperson. In the
19event of vacancy or resignation, the State Superintendent
20shall, within 10 days after receiving notice, appoint a
21successor to serve out that member's term.
22    (b) Members of the Panel shall be selected primarily on the
23basis of their experience and education in financial
24management, with consideration given to persons knowledgeable
25in education finance. Two members of the Panel shall be

 

 

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1residents of the school district that the Panel serves. A
2member of the Panel may not be a member of the district's
3school board or an employee of the district nor may a member
4have a direct financial interest in the district.
5    (c) Panel members may be reimbursed by the State Board for
6travel and other necessary expenses incurred in the performance
7of their official duties. The amount reimbursed members for
8their expenses shall be charged to the school district as part
9of any emergency financial assistance and incorporated as a
10part of the terms and conditions for repayment of the
11assistance or shall be deducted from the district's general
12State aid or primary State aid as provided in Section 1H-65 of
13this Code.
14    (d) With the exception of the chairperson, who shall be
15designated as provided in subsection (a) of this Section, the
16Panel may elect such officers as it deems appropriate.
17    (e) The first meeting of the Panel shall be held at the
18call of the Chairperson. The Panel shall prescribe the times
19and places for its meetings and the manner in which regular and
20special meetings may be called and shall comply with the Open
21Meetings Act. The Panel shall also comply with the Freedom of
22Information Act.
23    (f) Three members of the Panel shall constitute a quorum. A
24majority of members present is required to pass a measure.
25(Source: P.A. 97-429, eff. 8-16-11.)
 

 

 

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1    (105 ILCS 5/1H-70)
2    Sec. 1H-70. Tax anticipation warrants, tax anticipation
3notes, revenue anticipation certificates or notes, general
4State aid or primary State aid anticipation certificates, and
5lines of credit. With the approval of the State Superintendent
6and provided that the district is unable to secure short-term
7financing after 3 attempts, a Panel shall have the same power
8as a district to do the following:
9        (1) issue tax anticipation warrants under the
10    provisions of Section 17-16 of this Code against taxes
11    levied by either the school board or the Panel pursuant to
12    Section 1H-25 of this Code;
13        (2) issue tax anticipation notes under the provisions
14    of the Tax Anticipation Note Act against taxes levied by
15    either the school board or the Panel pursuant to Section
16    1H-25 of this Code;
17        (3) issue revenue anticipation certificates or notes
18    under the provisions of the Revenue Anticipation Act;
19        (4) issue general State aid or primary State aid
20    anticipation certificates under the provisions of Section
21    18-18 of this Code; and
22        (5) establish and utilize lines of credit under the
23    provisions of Section 17-17 of this Code.
24    Tax anticipation warrants, tax anticipation notes, revenue
25anticipation certificates or notes, general State aid or
26primary State aid anticipation certificates, and lines of

 

 

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1credit are considered borrowing from sources other than the
2State and are subject to Section 1H-65 of this Code.
3(Source: P.A. 97-429, eff. 8-16-11.)
 
4    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
5    Sec. 2-3.28. Rules and regulations of budget and accounting
6systems. To prescribe rules and regulations defining what shall
7constitute a budget and accounting system required under this
8Act. The rules and regulations shall prescribe the minimum
9extent of verification, the type of audit, the extent of the
10audit report and shall require compliance with statutory
11requirements and standards and such requirements as the State
12Board of Education deems necessary for an adequate budget and
13accounting system. For the 2018-2019 school year and
14thereafter, the rules and regulations shall prescribe a system
15for accounting for revenues and expenditures at the individual
16school level that includes without limitation the following:
17        (1) accounting for expenditures for school
18    administration, regular instruction, special education
19    instruction, instructional programs for children of
20    limited English-speaking ability, instructional support
21    services, and pupil support services;
22        (2) salary expenditures reflecting actual staff
23    salaries at each school;
24        (3) accounting for operations, including
25    non-instructional pupil services, facilities, and business

 

 

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1    services; and
2        (4) such other requirements as the State Board of
3    Education deems necessary to provide for a uniform and
4    transparent system of accounting at the school level.
5(Source: P.A. 81-1508.)
 
6    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
7    Sec. 2-3.33. Recomputation of claims. To recompute within
83 years from the final date for filing of a claim any claim for
9reimbursement to any school district if the claim has been
10found to be incorrect and to adjust subsequent claims
11accordingly, and to recompute and adjust any such claims within
126 years from the final date for filing when there has been an
13adverse court or administrative agency decision on the merits
14affecting the tax revenues of the school district. However, no
15such adjustment shall be made regarding equalized assessed
16valuation unless the district's equalized assessed valuation
17is changed by greater than $250,000 or 2%. Any adjustments for
18claims recomputed for the 2015-2016 school year and prior
19school years shall be applied to the apportionment of primary
20State financial aid in Section 18-8.15 of this Code beginning
21in the 2016-2017 school year and thereafter.
22    Except in the case of an adverse court or administrative
23agency decision, no recomputation of a State aid claim shall be
24made pursuant to this Section as a result of a reduction in the
25assessed valuation of a school district from the assessed

 

 

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1valuation of the district reported to the State Board of
2Education by the Department of Revenue under Section 18-8.05 or
318-8.15 of this Code unless the requirements of Section 16-15
4of the Property Tax Code and Section 2-3.84 of this Code are
5complied with in all respects.
6    This paragraph applies to all requests for recomputation of
7a general State aid or primary State aid claim received after
8June 30, 2003. In recomputing a general State aid or primary
9State aid claim that was originally calculated using an
10extension limitation equalized assessed valuation under
11paragraph (3) of subsection (G) of Section 18-8.05 of this Code
12or paragraph (2) of subsection (h) of Section 18-8.15 of this
13Code, a qualifying reduction in equalized assessed valuation
14shall be deducted from the extension limitation equalized
15assessed valuation that was used in calculating the original
16claim.
17    From the total amount of general State aid or primary State
18aid to be provided to districts, adjustments as a result of
19recomputation under this Section together with adjustments
20under Section 2-3.84 must not exceed $25 million, in the
21aggregate for all districts under both Sections combined, of
22the general State aid or primary State aid appropriation in any
23fiscal year; if necessary, amounts shall be prorated among
24districts. If it is necessary to prorate claims under this
25paragraph, then that portion of each prorated claim that is
26approved but not paid in the current fiscal year may be

 

 

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1resubmitted as a valid claim in the following fiscal year.
2(Source: P.A. 93-845, eff. 7-30-04.)
 
3    (105 ILCS 5/2-3.51.5)
4    Sec. 2-3.51.5. School Safety and Educational Improvement
5Block Grant Program. To improve the level of education and
6safety of students from kindergarten through grade 12 in school
7districts and State-recognized, non-public schools. The State
8Board of Education is authorized to fund a School Safety and
9Educational Improvement Block Grant Program.
10    (1) For school districts, the program shall provide funding
11for school safety, textbooks and software, electronic
12textbooks and the technological equipment necessary to gain
13access to and use electronic textbooks, teacher training and
14curriculum development, school improvements, school report
15cards under Section 10-17a, and criminal history records checks
16under Sections 10-21.9 and 34-18.5. For State-recognized,
17non-public schools, the program shall provide funding for
18secular textbooks and software, criminal history records
19checks, and health and safety mandates to the extent that the
20funds are expended for purely secular purposes. A school
21district or laboratory school as defined in Section 18-8, or
2218-8.05, or 18-8.15 is not required to file an application in
23order to receive the categorical funding to which it is
24entitled under this Section. Funds for the School Safety and
25Educational Improvement Block Grant Program shall be

 

 

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1distributed to school districts and laboratory schools based on
2the prior year's best 3 months average daily attendance. Funds
3for the School Safety and Educational Improvement Block Grant
4Program shall be distributed to State-recognized, non-public
5schools based on the average daily attendance figure for the
6previous school year provided to the State Board of Education.
7The State Board of Education shall develop an application that
8requires State-recognized, non-public schools to submit
9average daily attendance figures. A State-recognized,
10non-public school must submit the application and average daily
11attendance figure prior to receiving funds under this Section.
12The State Board of Education shall promulgate rules and
13regulations necessary for the implementation of this program.
14    (2) Distribution of moneys to school districts and
15State-recognized, non-public schools shall be made in 2
16semi-annual installments, one payment on or before October 30,
17and one payment prior to April 30, of each fiscal year.
18    (3) Grants under the School Safety and Educational
19Improvement Block Grant Program shall be awarded provided there
20is an appropriation for the program, and funding levels for
21each district shall be prorated according to the amount of the
22appropriation.
23    (4) The provisions of this Section are in the public
24interest, are for the public benefit, and serve secular public
25purposes.
26(Source: P.A. 98-972, eff. 8-15-14.)
 

 

 

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1    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
2    Sec. 2-3.66. Truants' alternative and optional education
3programs. To establish projects to offer modified
4instructional programs or other services designed to prevent
5students from dropping out of school, including programs
6pursuant to Section 2-3.41, and to serve as a part time or full
7time option in lieu of regular school attendance and to award
8grants to local school districts, educational service regions
9or community college districts from appropriated funds to
10assist districts in establishing such projects. The education
11agency may operate its own program or enter into a contract
12with another not-for-profit entity to implement the program.
13The projects shall allow dropouts, up to and including age 21,
14potential dropouts, including truants, uninvolved, unmotivated
15and disaffected students, as defined by State Board of
16Education rules and regulations, to enroll, as an alternative
17to regular school attendance, in an optional education program
18which may be established by school board policy and is in
19conformance with rules adopted by the State Board of Education.
20Truants' Alternative and Optional Education programs funded
21pursuant to this Section shall be planned by a student, the
22student's parents or legal guardians, unless the student is 18
23years or older, and school officials and shall culminate in an
24individualized optional education plan. Such plan shall focus
25on academic or vocational skills, or both, and may include, but

 

 

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1not be limited to, evening school, summer school, community
2college courses, adult education, preparation courses for high
3school equivalency testing, vocational training, work
4experience, programs to enhance self concept and parenting
5courses. School districts which are awarded grants pursuant to
6this Section shall be authorized to provide day care services
7to children of students who are eligible and desire to enroll
8in programs established and funded under this Section, but only
9if and to the extent that such day care is necessary to enable
10those eligible students to attend and participate in the
11programs and courses which are conducted pursuant to this
12Section. School districts and regional offices of education may
13claim general State aid under Section 18-8.05 or primary State
14aid under Section 18-8.15 for students enrolled in truants'
15alternative and optional education programs, provided that
16such students are receiving services that are supplemental to a
17program leading to a high school diploma and are otherwise
18eligible to be claimed for general State aid under Section
1918-8.05 or primary State aid under Section 18-8.15, as
20applicable.
21(Source: P.A. 98-718, eff. 1-1-15.)
 
22    (105 ILCS 5/2-3.66b)
23    Sec. 2-3.66b. IHOPE Program.
24    (a) There is established the Illinois Hope and Opportunity
25Pathways through Education (IHOPE) Program. The State Board of

 

 

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1Education shall implement and administer the IHOPE Program. The
2goal of the IHOPE Program is to develop a comprehensive system
3in this State to re-enroll significant numbers of high school
4dropouts in programs that will enable them to earn their high
5school diploma.
6    (b) The IHOPE Program shall award grants, subject to
7appropriation for this purpose, to educational service regions
8and a school district organized under Article 34 of this Code
9from appropriated funds to assist in establishing
10instructional programs and other services designed to
11re-enroll high school dropouts. From any funds appropriated for
12the IHOPE Program, the State Board of Education may use up to
135% for administrative costs, including the performance of a
14program evaluation and the hiring of staff to implement and
15administer the program.
16    The IHOPE Program shall provide incentive grant funds for
17regional offices of education and a school district organized
18under Article 34 of this Code to develop partnerships with
19school districts, public community colleges, and community
20groups to build comprehensive plans to re-enroll high school
21dropouts in their regions or districts.
22    Programs funded through the IHOPE Program shall allow high
23school dropouts, up to and including age 21 notwithstanding
24Section 26-2 of this Code, to re-enroll in an educational
25program in conformance with rules adopted by the State Board of
26Education. Programs may include without limitation

 

 

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1comprehensive year-round programming, evening school, summer
2school, community college courses, adult education, vocational
3training, work experience, programs to enhance self-concept,
4and parenting courses. Any student in the IHOPE Program who
5wishes to earn a high school diploma must meet the
6prerequisites to receiving a high school diploma specified in
7Section 27-22 of this Code and any other graduation
8requirements of the student's district of residence. Any
9student who successfully completes the requirements for his or
10her graduation shall receive a diploma identifying the student
11as graduating from his or her district of residence.
12    (c) In order to be eligible for funding under the IHOPE
13Program, an interested regional office of education or a school
14district organized under Article 34 of this Code shall develop
15an IHOPE Plan to be approved by the State Board of Education.
16The State Board of Education shall develop rules for the IHOPE
17Program that shall set forth the requirements for the
18development of the IHOPE Plan. Each Plan shall involve school
19districts, public community colleges, and key community
20programs that work with high school dropouts located in an
21educational service region or the City of Chicago before the
22Plan is sent to the State Board for approval. No funds may be
23distributed to a regional office of education or a school
24district organized under Article 34 of this Code until the
25State Board has approved the Plan.
26    (d) A regional office of education or a school district

 

 

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

 

 

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1that the State Board of Education has approved the IHOPE Plan
2and that these students are receiving services that are meeting
3the requirements of Section 27-22 of this Code for receipt of a
4high school diploma and are otherwise eligible to be claimed
5for general State aid under Section 18-8.05 of this Code or
6primary State aid under Section 18-8.15 of this Code, including
7provisions related to the minimum number of days of pupil
8attendance pursuant to Section 10-19 of this Code and the
9minimum number of daily hours of school work and any exceptions
10thereto as defined by the State Board of Education in rules.
11    (f) IHOPE categories of programming may include the
12following:
13        (1) Full-time programs that are comprehensive,
14    year-round programs.
15        (2) Part-time programs combining work and study
16    scheduled at various times that are flexible to the needs
17    of students.
18        (3) Online programs and courses in which students take
19    courses and complete on-site, supervised tests that
20    measure the student's mastery of a specific course needed
21    for graduation. Students may take courses online and earn
22    credit or students may prepare to take supervised tests for
23    specific courses for credit leading to receipt of a high
24    school diploma.
25        (4) Dual enrollment in which students attend high
26    school classes in combination with community college

 

 

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1    classes or students attend community college classes while
2    simultaneously earning high school credit and eventually a
3    high school diploma.
4    (g) In order to have successful comprehensive programs
5re-enrolling and graduating low-skilled high school dropouts,
6programs funded through the IHOPE Program shall include all of
7the following components:
8        (1) Small programs (70 to 100 students) at a separate
9    school site with a distinct identity. Programs may be
10    larger with specific need and justification, keeping in
11    mind that it is crucial to keep programs small to be
12    effective.
13        (2) Specific performance-based goals and outcomes and
14    measures of enrollment, attendance, skills, credits,
15    graduation, and the transition to college, training, and
16    employment.
17        (3) Strong, experienced leadership and teaching staff
18    who are provided with ongoing professional development.
19        (4) Voluntary enrollment.
20        (5) High standards for student learning, integrating
21    work experience, and education, including during the
22    school year and after school, and summer school programs
23    that link internships, work, and learning.
24        (6) Comprehensive programs providing extensive support
25    services.
26        (7) Small teams of students supported by full-time paid

 

 

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1    mentors who work to retain and help those students
2    graduate.
3        (8) A comprehensive technology learning center with
4    Internet access and broad-based curriculum focusing on
5    academic and career subject areas.
6        (9) Learning opportunities that incorporate action
7    into study.
8    (h) Programs funded through the IHOPE Program must report
9data to the State Board of Education as requested. This
10information shall include, but is not limited to, student
11enrollment figures, attendance information, course completion
12data, graduation information, and post-graduation information,
13as available.
14    (i) Rules must be developed by the State Board of Education
15to set forth the fund distribution process to regional offices
16of education and a school district organized under Article 34
17of this Code, the planning and the conditions upon which an
18IHOPE Plan would be approved by State Board, and other rules to
19develop the IHOPE Program.
20(Source: P.A. 96-106, eff. 7-30-09.)
 
21    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
22    Sec. 2-3.84. In calculating the amount of State aid to be
23apportioned to the various school districts in this State, the
24State Board of Education shall incorporate and deduct the total
25aggregate adjustments to assessments made by the State Property

 

 

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1Tax Appeal Board or Cook County Board of Appeals, as reported
2pursuant to Section 16-15 of the Property Tax Code or Section
3129.1 of the Revenue Act of 1939 by the Department of Revenue,
4from the equalized assessed valuation that is otherwise to be
5utilized in the initial calculation.
6    From the total amount of general State aid or primary State
7aid to be provided to districts, adjustments under this Section
8together with adjustments as a result of recomputation under
9Section 2-3.33 must not exceed $25 million, in the aggregate
10for all districts under both Sections combined, of the general
11State aid or primary State aid appropriation in any fiscal
12year; if necessary, amounts shall be prorated among districts.
13If it is necessary to prorate claims under this paragraph, then
14that portion of each prorated claim that is approved but not
15paid in the current fiscal year may be resubmitted as a valid
16claim in the following fiscal year.
17(Source: P.A. 93-845, eff. 7-30-04.)
 
18    (105 ILCS 5/2-3.109a)
19    Sec. 2-3.109a. Laboratory schools grant eligibility. A
20laboratory school as defined in Section 18-8 or 18-8.15 may
21apply for and be eligible to receive, subject to the same
22restrictions applicable to school districts, any grant
23administered by the State Board of Education that is available
24for school districts.
25(Source: P.A. 90-566, eff. 1-2-98.)
 

 

 

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1    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
2    Sec. 3-14.21. Inspection of schools.
3    (a) The regional superintendent shall inspect and survey
4all public schools under his or her supervision and notify the
5board of education, or the trustees of schools in a district
6with trustees, in writing before July 30, whether or not the
7several schools in their district have been kept as required by
8law, using forms provided by the State Board of Education which
9are based on the Health/Life Safety Code for Public Schools
10adopted under Section 2-3.12. The regional superintendent
11shall report his or her findings to the State Board of
12Education on forms provided by the State Board of Education.
13    (b) If the regional superintendent determines that a school
14board has failed in a timely manner to correct urgent items
15identified in a previous life-safety report completed under
16Section 2-3.12 or as otherwise previously ordered by the
17regional superintendent, the regional superintendent shall
18order the school board to adopt and submit to the regional
19superintendent a plan for the immediate correction of the
20building violations. This plan shall be adopted following a
21public hearing that is conducted by the school board on the
22violations and the plan and that is preceded by at least 7
23days' prior notice of the hearing published in a newspaper of
24general circulation within the school district. If the regional
25superintendent determines in the next annual inspection that

 

 

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1the plan has not been completed and that the violations have
2not been corrected, the regional superintendent shall submit a
3report to the State Board of Education with a recommendation
4that the State Board withhold from payments of general State
5aid or primary State aid due to the district an amount
6necessary to correct the outstanding violations. The State
7Board, upon notice to the school board and to the regional
8superintendent, shall consider the report at a meeting of the
9State Board, and may order that a sufficient amount of general
10State aid or primary State aid be withheld from payments due to
11the district to correct the violations. This amount shall be
12paid to the regional superintendent who shall contract on
13behalf of the school board for the correction of the
14outstanding violations.
15    (c) The Office of the State Fire Marshal or a qualified
16fire official, as defined in Section 2-3.12 of this Code, to
17whom the State Fire Marshal has delegated his or her authority
18shall conduct an annual fire safety inspection of each school
19building in this State. The State Fire Marshal or the fire
20official shall coordinate its inspections with the regional
21superintendent. The inspection shall be based on the fire
22safety code authorized in Section 2-3.12 of this Code. Any
23violations shall be reported in writing to the regional
24superintendent and shall reference the specific code sections
25where a discrepancy has been identified within 15 days after
26the inspection has been conducted. The regional superintendent

 

 

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1shall address those violations that are not corrected in a
2timely manner pursuant to subsection (b) of this Section. The
3inspection must be at no cost to the school district.
4    (d) If a municipality or, in the case of an unincorporated
5area, a county or, if applicable, a fire protection district
6wishes to perform new construction inspections under the
7jurisdiction of a regional superintendent, then the entity must
8register this wish with the regional superintendent. These
9inspections must be based on the building code authorized in
10Section 2-3.12 of this Code. The inspections must be at no cost
11to the school district.
12(Source: P.A. 96-734, eff. 8-25-09.)
 
13    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
14    Sec. 7-14A. Annexation Compensation. There shall be no
15accounting made after a mere change in boundaries when no new
16district is created, except that those districts whose
17enrollment increases by 90% or more as a result of annexing
18territory detached from another district pursuant to this
19Article are eligible for supplementary State aid payments in
20accordance with Section 11E-135 of this Code. Eligible annexing
21districts shall apply to the State Board of Education for
22supplementary State aid payments by submitting enrollment
23figures for the year immediately preceding and the year
24immediately following the effective date of the boundary change
25for both the district gaining territory and the district losing

 

 

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1territory. Copies of any intergovernmental agreements between
2the district gaining territory and the district losing
3territory detailing any transfer of fund balances and staff
4must also be submitted. In all instances of changes in
5boundaries, the district losing territory shall not count the
6average daily attendance of pupils living in the territory
7during the year preceding the effective date of the boundary
8change in its claim for reimbursement under Section 18-8 or
918-8.15 for the school year following the effective date of the
10change in boundaries and the district receiving the territory
11shall count the average daily attendance of pupils living in
12the territory during the year preceding the effective date of
13the boundary change in its claim for reimbursement under
14Section 18-8 or 18-8.15 for the school year following the
15effective date of the change in boundaries. The changes to this
16Section made by this amendatory Act of the 95th General
17Assembly are intended to be retroactive and applicable to any
18annexation taking effect on or after July 1, 2004.
19(Source: P.A. 95-707, eff. 1-11-08.)
 
20    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
21    Sec. 10-17a. State, school district, and school report
22cards.
23    (1) By October 31, 2013 and October 31 of each subsequent
24school year, the State Board of Education, through the State
25Superintendent of Education, shall prepare a State report card,

 

 

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1school district report cards, and school report cards, and
2shall by the most economic means provide to each school
3district in this State, including special charter districts and
4districts subject to the provisions of Article 34, the report
5cards for the school district and each of its schools.
6    (2) In addition to any information required by federal law,
7the State Superintendent shall determine the indicators and
8presentation of the school report card, which must include, at
9a minimum, the most current data possessed by the State Board
10of Education related to the following:
11        (A) school characteristics and student demographics,
12    including average class size, average teaching experience,
13    student racial/ethnic breakdown, and the percentage of
14    students classified as low-income; the percentage of
15    students classified as English learners; the percentage of
16    students who have individualized education plans or 504
17    plans that provide for special education services; the
18    percentage of students who annually transferred in or out
19    of the school district; the per-pupil operating
20    expenditure of the school district; and the per-pupil State
21    average operating expenditure for the district type
22    (elementary, high school, or unit);
23        (B) curriculum information, including, where
24    applicable, Advanced Placement, International
25    Baccalaureate or equivalent courses, dual enrollment
26    courses, foreign language classes, school personnel

 

 

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1    resources (including Career Technical Education teachers),
2    before and after school programs, extracurricular
3    activities, subjects in which elective classes are
4    offered, health and wellness initiatives (including the
5    average number of days of Physical Education per week per
6    student), approved programs of study, awards received,
7    community partnerships, and special programs such as
8    programming for the gifted and talented, students with
9    disabilities, and work-study students;
10        (C) student outcomes, including, where applicable, the
11    percentage of students deemed proficient on assessments of
12    State standards, the percentage of students in the eighth
13    grade who pass Algebra, the percentage of students enrolled
14    in post-secondary institutions (including colleges,
15    universities, community colleges, trade/vocational
16    schools, and training programs leading to career
17    certification within 2 semesters of high school
18    graduation), the percentage of students graduating from
19    high school who are college and career ready, and the
20    percentage of graduates enrolled in community colleges,
21    colleges, and universities who are in one or more courses
22    that the community college, college, or university
23    identifies as a developmental course;
24        (D) student progress, including, where applicable, the
25    percentage of students in the ninth grade who have earned 5
26    credits or more without failing more than one core class, a

 

 

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1    measure of students entering kindergarten ready to learn, a
2    measure of growth, and the percentage of students who enter
3    high school on track for college and career readiness;
4        (E) the school environment, including, where
5    applicable, the percentage of students with less than 10
6    absences in a school year, the percentage of teachers with
7    less than 10 absences in a school year for reasons other
8    than professional development, leaves taken pursuant to
9    the federal Family Medical Leave Act of 1993, long-term
10    disability, or parental leaves, the 3-year average of the
11    percentage of teachers returning to the school from the
12    previous year, the number of different principals at the
13    school in the last 6 years, 2 or more indicators from any
14    school climate survey selected or approved by the State and
15    administered pursuant to Section 2-3.153 of this Code, with
16    the same or similar indicators included on school report
17    cards for all surveys selected or approved by the State
18    pursuant to Section 2-3.153 of this Code, and the combined
19    percentage of teachers rated as proficient or excellent in
20    their most recent evaluation; and
21        (F) a school district's and its individual schools'
22    balanced accountability measure, in accordance with
23    Section 2-3.25a of this Code.
24    The school report card shall also provide information that
25allows for comparing the current outcome, progress, and
26environment data to the State average, to the school data from

 

 

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1the past 5 years, and to the outcomes, progress, and
2environment of similar schools based on the type of school and
3enrollment of low-income students, special education students,
4and English learners.
5    (3) At the discretion of the State Superintendent, the
6school district report card shall include a subset of the
7information identified in paragraphs (A) through (E) of
8subsection (2) of this Section, as well as information relating
9to the operating expense per pupil and other finances of the
10school district, and the State report card shall include a
11subset of the information identified in paragraphs (A) through
12(E) of subsection (2) of this Section. The school district
13report card shall include the total and per pupil normal cost
14amount the State contributed to the Teachers' Retirement System
15of the State of Illinois in the prior fiscal year for the
16district's employees, which shall be reported to the State
17Board of Education by the Teachers' Retirement System of the
18State of Illinois.
19    (4) Notwithstanding anything to the contrary in this
20Section, in consultation with key education stakeholders, the
21State Superintendent shall at any time have the discretion to
22amend or update any and all metrics on the school, district, or
23State report card.
24    (5) Annually, no more than 30 calendar days after receipt
25of the school district and school report cards from the State
26Superintendent of Education, each school district, including

 

 

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1special charter districts and districts subject to the
2provisions of Article 34, shall present such report cards at a
3regular school board meeting subject to applicable notice
4requirements, post the report cards on the school district's
5Internet web site, if the district maintains an Internet web
6site, make the report cards available to a newspaper of general
7circulation serving the district, and, upon request, send the
8report cards home to a parent (unless the district does not
9maintain an Internet web site, in which case the report card
10shall be sent home to parents without request). If the district
11posts the report card on its Internet web site, the district
12shall send a written notice home to parents stating (i) that
13the report card is available on the web site, (ii) the address
14of the web site, (iii) that a printed copy of the report card
15will be sent to parents upon request, and (iv) the telephone
16number that parents may call to request a printed copy of the
17report card.
18    (6) Nothing contained in this amendatory Act of the 98th
19General Assembly repeals, supersedes, invalidates, or
20nullifies final decisions in lawsuits pending on the effective
21date of this amendatory Act of the 98th General Assembly in
22Illinois courts involving the interpretation of Public Act
2397-8.
24(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
25eff. 7-10-15; 99-193, eff. 7-30-15; revised 10-21-15.)
 

 

 

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1    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
2    Sec. 10-19. Length of school term - experimental programs.
3Each school board shall annually prepare a calendar for the
4school term, specifying the opening and closing dates and
5providing a minimum term of at least 185 days to insure 176
6days of actual pupil attendance, computable under Section
718-8.05 or 18-8.15, except that for the 1980-1981 school year
8only 175 days of actual pupil attendance shall be required
9because of the closing of schools pursuant to Section 24-2 on
10January 29, 1981 upon the appointment by the President of that
11day as a day of thanksgiving for the freedom of the Americans
12who had been held hostage in Iran. Any days allowed by law for
13teachers' institutes but not used as such or used as parental
14institutes as provided in Section 10-22.18d shall increase the
15minimum term by the school days not so used. Except as provided
16in Section 10-19.1, the board may not extend the school term
17beyond such closing date unless that extension of term is
18necessary to provide the minimum number of computable days. In
19case of such necessary extension school employees shall be paid
20for such additional time on the basis of their regular
21contracts. A school board may specify a closing date earlier
22than that set on the annual calendar when the schools of the
23district have provided the minimum number of computable days
24under this Section. Nothing in this Section prevents the board
25from employing superintendents of schools, principals and
26other nonteaching personnel for a period of 12 months, or in

 

 

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1the case of superintendents for a period in accordance with
2Section 10-23.8, or prevents the board from employing other
3personnel before or after the regular school term with payment
4of salary proportionate to that received for comparable work
5during the school term.
6    A school board may make such changes in its calendar for
7the school term as may be required by any changes in the legal
8school holidays prescribed in Section 24-2. A school board may
9make changes in its calendar for the school term as may be
10necessary to reflect the utilization of teachers' institute
11days as parental institute days as provided in Section
1210-22.18d.
13    The calendar for the school term and any changes must be
14submitted to and approved by the regional superintendent of
15schools before the calendar or changes may take effect.
16    With the prior approval of the State Board of Education and
17subject to review by the State Board of Education every 3
18years, any school board may, by resolution of its board and in
19agreement with affected exclusive collective bargaining
20agents, establish experimental educational programs, including
21but not limited to programs for e-learning days as authorized
22under Section 10-20.56 of this Code, self-directed learning, or
23outside of formal class periods, which programs when so
24approved shall be considered to comply with the requirements of
25this Section as respects numbers of days of actual pupil
26attendance and with the other requirements of this Act as

 

 

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1respects courses of instruction.
2(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
3    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
4    Sec. 10-22.5a. Attendance by dependents of United States
5military personnel, foreign exchange students, and certain
6nonresident pupils.
7    (a) To enter into written agreements with cultural exchange
8organizations, or with nationally recognized eleemosynary
9institutions that promote excellence in the arts, mathematics,
10or science. The written agreements may provide for tuition free
11attendance at the local district school by foreign exchange
12students, or by nonresident pupils of eleemosynary
13institutions. The local board of education, as part of the
14agreement, may require that the cultural exchange program or
15the eleemosynary institutions provide services to the district
16in exchange for the waiver of nonresident tuition.
17    To enter into written agreements with adjacent school
18districts to provide for tuition free attendance by a student
19of the adjacent district when requested for the student's
20health and safety by the student or parent and both districts
21determine that the student's health or safety will be served by
22such attendance. Districts shall not be required to enter into
23such agreements nor be required to alter existing
24transportation services due to the attendance of such
25non-resident pupils.

 

 

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1    (a-5) If, at the time of enrollment, a dependent of United
2States military personnel is housed in temporary housing
3located outside of a school district, but will be living within
4the district within 60 days after the time of initial
5enrollment, the dependent must be allowed to enroll, subject to
6the requirements of this subsection (a-5), and must not be
7charged tuition. Any United States military personnel
8attempting to enroll a dependent under this subsection (a-5)
9shall provide proof that the dependent will be living within
10the district within 60 days after the time of initial
11enrollment. Proof of residency may include, but is not limited
12to, postmarked mail addressed to the military personnel and
13sent to an address located within the district, a lease
14agreement for occupancy of a residence located within the
15district, or proof of ownership of a residence located within
16the district.
17    (b) Nonresident pupils and foreign exchange students
18attending school on a tuition free basis under such agreements
19and nonresident dependents of United States military personnel
20attending school on a tuition free basis may be counted for the
21purposes of determining the apportionment of State aid provided
22under Section 18-8.05 or 18-8.15 of this Code. No organization
23or institution participating in agreements authorized under
24this Section may exclude any individual for participation in
25its program on account of the person's race, color, sex,
26religion or nationality.

 

 

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1(Source: P.A. 98-739, eff. 7-16-14.)
 
2    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
3    Sec. 10-22.20. Classes for adults and youths whose
4schooling has been interrupted; conditions for State
5reimbursement; use of child care facilities.
6    (a) To establish special classes for the instruction (1) of
7persons of age 21 years or over and (2) of persons less than
8age 21 and not otherwise in attendance in public school, for
9the purpose of providing adults in the community and youths
10whose schooling has been interrupted with such additional basic
11education, vocational skill training, and other instruction as
12may be necessary to increase their qualifications for
13employment or other means of self-support and their ability to
14meet their responsibilities as citizens, including courses of
15instruction regularly accepted for graduation from elementary
16or high schools and for Americanization and high school
17equivalency testing review classes.
18    The board shall pay the necessary expenses of such classes
19out of school funds of the district, including costs of student
20transportation and such facilities or provision for child-care
21as may be necessary in the judgment of the board to permit
22maximum utilization of the courses by students with children,
23and other special needs of the students directly related to
24such instruction. The expenses thus incurred shall be subject
25to State reimbursement, as provided in this Section. The board

 

 

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1may make a tuition charge for persons taking instruction who
2are not subject to State reimbursement, such tuition charge not
3to exceed the per capita cost of such classes.
4    The cost of such instruction, including the additional
5expenses herein authorized, incurred for recipients of
6financial aid under the Illinois Public Aid Code, or for
7persons for whom education and training aid has been authorized
8under Section 9-8 of that Code, shall be assumed in its
9entirety from funds appropriated by the State to the Illinois
10Community College Board.
11    (b) The Illinois Community College Board shall establish
12the standards for the courses of instruction reimbursed under
13this Section. The Illinois Community College Board shall
14supervise the administration of the programs. The Illinois
15Community College Board shall determine the cost of instruction
16in accordance with standards established by the Illinois
17Community College Board, including therein other incidental
18costs as herein authorized, which shall serve as the basis of
19State reimbursement in accordance with the provisions of this
20Section. In the approval of programs and the determination of
21the cost of instruction, the Illinois Community College Board
22shall provide for the maximum utilization of federal funds for
23such programs. The Illinois Community College Board shall also
24provide for:
25        (1) the development of an index of need for program
26    planning and for area funding allocations, as defined by

 

 

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1    the Illinois Community College Board;
2        (2) the method for calculating hours of instruction, as
3    defined by the Illinois Community College Board, claimable
4    for reimbursement and a method to phase in the calculation
5    and for adjusting the calculations in cases where the
6    services of a program are interrupted due to circumstances
7    beyond the control of the program provider;
8        (3) a plan for the reallocation of funds to increase
9    the amount allocated for grants based upon program
10    performance as set forth in subsection (d) below; and
11        (4) the development of standards for determining
12    grants based upon performance as set forth in subsection
13    (d) below and a plan for the phased-in implementation of
14    those standards.
15    For instruction provided by school districts and community
16college districts beginning July 1, 1996 and thereafter,
17reimbursement provided by the Illinois Community College Board
18for classes authorized by this Section shall be provided from
19funds appropriated for the reimbursement criteria set forth in
20subsection (c) below.
21    (c) Upon the annual approval of the Illinois Community
22College Board, reimbursement shall be first provided for
23transportation, child care services, and other special needs of
24the students directly related to instruction and then from the
25funds remaining an amount equal to the product of the total
26credit hours or units of instruction approved by the Illinois

 

 

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1Community College Board, multiplied by the following:
2        (1) For adult basic education, the maximum
3    reimbursement per credit hour or per unit of instruction
4    shall be equal to (i) through fiscal year 2016, the general
5    state aid per pupil foundation level established in
6    subsection (B) of Section 18-8.05, divided by 60, or (ii)
7    in fiscal year 2017 and thereafter, the foundation level
8    established pursuant to subsection (b) of Section 18-8.15
9    of this Code, divided by 60;
10        (2) The maximum reimbursement per credit hour or per
11    unit of instruction in subparagraph (1) above shall be
12    weighted for students enrolled in classes defined as
13    vocational skills and approved by the Illinois Community
14    College Board by 1.25;
15        (3) The maximum reimbursement per credit hour or per
16    unit of instruction in subparagraph (1) above shall be
17    multiplied by .90 for students enrolled in classes defined
18    as adult secondary education programs and approved by the
19    Illinois Community College Board;
20        (4) (Blank); and
21        (5) Funding for program years after 1999-2000 shall be
22    determined by the Illinois Community College Board.
23    (d) Upon its annual approval, the Illinois Community
24College Board shall provide grants to eligible programs for
25supplemental activities to improve or expand services under the
26Adult Education Act. Eligible programs shall be determined

 

 

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1based upon performance outcomes of students in the programs as
2set by the Illinois Community College Board.
3    (e) Reimbursement under this Section shall not exceed the
4actual costs of the approved program.
5    If the amount appropriated to the Illinois Community
6College Board for reimbursement under this Section is less than
7the amount required under this Act, the apportionment shall be
8proportionately reduced.
9    School districts and community college districts may
10assess students up to $3.00 per credit hour, for classes other
11than Adult Basic Education level programs, if needed to meet
12program costs.
13    (f) An education plan shall be established for each adult
14or youth whose schooling has been interrupted and who is
15participating in the instructional programs provided under
16this Section.
17    Each school board and community college shall keep an
18accurate and detailed account of the students assigned to and
19receiving instruction under this Section who are subject to
20State reimbursement and shall submit reports of services
21provided commencing with fiscal year 1997 as required by the
22Illinois Community College Board.
23    For classes authorized under this Section, a credit hour or
24unit of instruction is equal to 15 hours of direct instruction
25for students enrolled in approved adult education programs at
26midterm and making satisfactory progress, in accordance with

 

 

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1standards established by the Illinois Community College Board.
2    (g) Upon proof submitted to the Illinois Department of
3Human Services of the payment of all claims submitted under
4this Section, that Department shall apply for federal funds
5made available therefor and any federal funds so received shall
6be paid into the General Revenue Fund in the State Treasury.
7    School districts or community colleges providing classes
8under this Section shall submit applications to the Illinois
9Community College Board for preapproval in accordance with the
10standards established by the Illinois Community College Board.
11Payments shall be made by the Illinois Community College Board
12based upon approved programs. Interim expenditure reports may
13be required by the Illinois Community College Board. Final
14claims for the school year shall be submitted to the regional
15superintendents for transmittal to the Illinois Community
16College Board. Final adjusted payments shall be made by
17September 30.
18    If a school district or community college district fails to
19provide, or is providing unsatisfactory or insufficient
20classes under this Section, the Illinois Community College
21Board may enter into agreements with public or private
22educational or other agencies other than the public schools for
23the establishment of such classes.
24    (h) If a school district or community college district
25establishes child-care facilities for the children of
26participants in classes established under this Section, it may

 

 

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

 

 

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1costs of care and training provided in the Center for the
2remaining period shall be charged to the Illinois Department of
3Human Services or other persons or agencies paying for such
4care.
5    (i) The provisions of this Section shall also apply to
6school districts having a population exceeding 500,000.
7    (j) In addition to claiming reimbursement under this
8Section, a school district may claim general State aid under
9Section 18-8.05 or primary State aid under Section 18-8.15 for
10any student under age 21 who is enrolled in courses accepted
11for graduation from elementary or high school and who otherwise
12meets the requirements of Section 18-8.05 or 18-8.15, as
13applicable.
14(Source: P.A. 98-718, eff. 1-1-15.)
 
15    (105 ILCS 5/10-29)
16    Sec. 10-29. Remote educational programs.
17    (a) For purposes of this Section, "remote educational
18program" means an educational program delivered to students in
19the home or other location outside of a school building that
20meets all of the following criteria:
21        (1) A student may participate in the program only after
22    the school district, pursuant to adopted school board
23    policy, and a person authorized to enroll the student under
24    Section 10-20.12b of this Code determine that a remote
25    educational program will best serve the student's

 

 

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1    individual learning needs. The adopted school board policy
2    shall include, but not be limited to, all of the following:
3            (A) Criteria for determining that a remote
4        educational program will best serve a student's
5        individual learning needs. The criteria must include
6        consideration of, at a minimum, a student's prior
7        attendance, disciplinary record, and academic history.
8            (B) Any limitations on the number of students or
9        grade levels that may participate in a remote
10        educational program.
11            (C) A description of the process that the school
12        district will use to approve participation in the
13        remote educational program. The process must include
14        without limitation a requirement that, for any student
15        who qualifies to receive services pursuant to the
16        federal Individuals with Disabilities Education
17        Improvement Act of 2004, the student's participation
18        in a remote educational program receive prior approval
19        from the student's individualized education program
20        team.
21            (D) A description of the process the school
22        district will use to develop and approve a written
23        remote educational plan that meets the requirements of
24        subdivision (5) of this subsection (a).
25            (E) A description of the system the school district
26        will establish to calculate the number of clock hours a

 

 

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

 

 

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1        instruction.
2        (4) During the period of time from and including the
3    opening date to the closing date of the regular school term
4    of the school district established pursuant to Section
5    10-19 of this Code, participation in a remote educational
6    program may be claimed for general State aid purposes under
7    Section 18-8.05 of this Code or primary State aid purposes
8    under Section 18-8.15 of this Code on any calendar day,
9    notwithstanding whether the day is a day of pupil
10    attendance or institute day on the school district's
11    calendar or any other provision of law restricting
12    instruction on that day. If the district holds year-round
13    classes in some buildings, the district shall classify each
14    student's participation in a remote educational program as
15    either on a year-round or a non-year-round schedule for
16    purposes of claiming general State aid or primary State
17    aid. Outside of the regular school term of the district,
18    the remote educational program may be offered as part of
19    any summer school program authorized by this Code.
20        (5) Each student participating in a remote educational
21    program must have a written remote educational plan that
22    has been approved by the school district and a person
23    authorized to enroll the student under Section 10-20.12b of
24    this Code. The school district and a person authorized to
25    enroll the student under Section 10-20.12b of this Code
26    must approve any amendment to a remote educational plan.

 

 

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1    The remote educational plan must include, but is not
2    limited to, all of the following:
3            (A) Specific achievement goals for the student
4        aligned to State learning standards.
5            (B) A description of all assessments that will be
6        used to measure student progress, which description
7        shall indicate the assessments that will be
8        administered at an attendance center within the school
9        district.
10            (C) A description of the progress reports that will
11        be provided to the school district and the person or
12        persons authorized to enroll the student under Section
13        10-20.12b of this Code.
14            (D) Expectations, processes, and schedules for
15        interaction between a teacher and student.
16            (E) A description of the specific responsibilities
17        of the student's family and the school district with
18        respect to equipment, materials, phone and Internet
19        service, and any other requirements applicable to the
20        home or other location outside of a school building
21        necessary for the delivery of the remote educational
22        program.
23            (F) If applicable, a description of how the remote
24        educational program will be delivered in a manner
25        consistent with the student's individualized education
26        program required by Section 614(d) of the federal

 

 

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1        Individuals with Disabilities Education Improvement
2        Act of 2004 or plan to ensure compliance with Section
3        504 of the federal Rehabilitation Act of 1973.
4            (G) A description of the procedures and
5        opportunities for participation in academic and
6        extra-curricular activities and programs within the
7        school district.
8            (H) The identification of a parent, guardian, or
9        other responsible adult who will provide direct
10        supervision of the program. The plan must include an
11        acknowledgment by the parent, guardian, or other
12        responsible adult that he or she may engage only in
13        non-teaching duties not requiring instructional
14        judgment or the evaluation of a student. The plan shall
15        designate the parent, guardian, or other responsible
16        adult as non-teaching personnel or volunteer personnel
17        under subsection (a) of Section 10-22.34 of this Code.
18            (I) The identification of a school district
19        administrator who will oversee the remote educational
20        program on behalf of the school district and who may be
21        contacted by the student's parents with respect to any
22        issues or concerns with the program.
23            (J) The term of the student's participation in the
24        remote educational program, which may not extend for
25        longer than 12 months, unless the term is renewed by
26        the district in accordance with subdivision (7) of this

 

 

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1        subsection (a).
2            (K) A description of the specific location or
3        locations in which the program will be delivered. If
4        the remote educational program is to be delivered to a
5        student in any location other than the student's home,
6        the plan must include a written determination by the
7        school district that the location will provide a
8        learning environment appropriate for the delivery of
9        the program. The location or locations in which the
10        program will be delivered shall be deemed a long
11        distance teaching reception area under subsection (a)
12        of Section 10-22.34 of this Code.
13            (L) Certification by the school district that the
14        plan meets all other requirements of this Section.
15        (6) Students participating in a remote educational
16    program must be enrolled in a school district attendance
17    center pursuant to the school district's enrollment policy
18    or policies. A student participating in a remote
19    educational program must be tested as part of all
20    assessments administered by the school district pursuant
21    to Section 2-3.64a-5 of this Code at the attendance center
22    in which the student is enrolled and in accordance with the
23    attendance center's assessment policies and schedule. The
24    student must be included within all accountability
25    determinations for the school district and attendance
26    center under State and federal law.

 

 

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1        (7) The term of a student's participation in a remote
2    educational program may not extend for longer than 12
3    months, unless the term is renewed by the school district.
4    The district may only renew a student's participation in a
5    remote educational program following an evaluation of the
6    student's progress in the program, a determination that the
7    student's continuation in the program will best serve the
8    student's individual learning needs, and an amendment to
9    the student's written remote educational plan addressing
10    any changes for the upcoming term of the program.
11    For purposes of this Section, a remote educational program
12does not include instruction delivered to students through an
13e-learning program approved under Section 10-20.56 of this
14Code.
15    (b) A school district may, by resolution of its school
16board, establish a remote educational program.
17    (c) Clock hours of instruction by students in a remote
18educational program meeting the requirements of this Section
19may be claimed by the school district and shall be counted as
20school work for general State aid purposes in accordance with
21and subject to the limitations of Section 18-8.05 of this Code
22or primary State aid purposes in accordance with and subject to
23the limitations of Section 18-8.15 of this Code.
24    (d) The impact of remote educational programs on wages,
25hours, and terms and conditions of employment of educational
26employees within the school district shall be subject to local

 

 

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1collective bargaining agreements.
2    (e) The use of a home or other location outside of a school
3building for a remote educational program shall not cause the
4home or other location to be deemed a public school facility.
5    (f) A remote educational program may be used, but is not
6required, for instruction delivered to a student in the home or
7other location outside of a school building that is not claimed
8for general State aid purposes under Section 18-8.05 of this
9Code or primary State aid purposes under Section 18-8.15 of
10this Code.
11    (g) School districts that, pursuant to this Section, adopt
12a policy for a remote educational program must submit to the
13State Board of Education a copy of the policy and any
14amendments thereto, as well as data on student participation in
15a format specified by the State Board of Education. The State
16Board of Education may perform or contract with an outside
17entity to perform an evaluation of remote educational programs
18in this State.
19    (h) The State Board of Education may adopt any rules
20necessary to ensure compliance by remote educational programs
21with the requirements of this Section and other applicable
22legal requirements.
23(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
2499-194, eff. 7-30-15; revised 10-9-15.)
 
25    (105 ILCS 5/11E-135)

 

 

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1    Sec. 11E-135. Incentives. For districts reorganizing under
2this Article and for a district or districts that annex all of
3the territory of one or more entire other school districts in
4accordance with Article 7 of this Code, the following payments
5shall be made from appropriations made for these purposes:
6    (a)(1) For a combined school district, as defined in
7Section 11E-20 of this Code, or for a unit district, as defined
8in Section 11E-25 of this Code, for its first year of
9existence, the general State aid and supplemental general State
10aid calculated under Section 18-8.05 of this Code or the
11primary State aid and supplemental grants calculated under
12Section 18-8.15 of this Code, as applicable, shall be computed
13for the new district and for the previously existing districts
14for which property is totally included within the new district.
15If the computation on the basis of the previously existing
16districts is greater, a supplementary payment equal to the
17difference shall be made for the first 4 years of existence of
18the new district.
19    (2) For a school district that annexes all of the territory
20of one or more entire other school districts as defined in
21Article 7 of this Code, for the first year during which the
22change of boundaries attributable to the annexation becomes
23effective for all purposes, as determined under Section 7-9 of
24this Code, the general State aid and supplemental general State
25aid calculated under Section 18-8.05 of this Code or the
26primary State aid and supplemental grants calculated under

 

 

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1Section 18-8.15 of this Code, as applicable, shall be computed
2for the annexing district as constituted after the annexation
3and for the annexing and each annexed district as constituted
4prior to the annexation; and if the computation on the basis of
5the annexing and annexed districts as constituted prior to the
6annexation is greater, then a supplementary payment equal to
7the difference shall be made for the first 4 years of existence
8of the annexing school district as constituted upon the
9annexation.
10    (3) For 2 or more school districts that annex all of the
11territory of one or more entire other school districts, as
12defined in Article 7 of this Code, for the first year during
13which the change of boundaries attributable to the annexation
14becomes effective for all purposes, as determined under Section
157-9 of this Code, the general State aid and supplemental
16general State aid calculated under Section 18-8.05 of this Code
17or the primary State aid and supplemental grants calculated
18under Section 18-8.15 of this Code, as applicable, shall be
19computed for each annexing district as constituted after the
20annexation and for each annexing and annexed district as
21constituted prior to the annexation; and if the aggregate of
22the general State aid and supplemental general State aid or
23primary State aid and supplemental grants, as applicable, as so
24computed for the annexing districts as constituted after the
25annexation is less than the aggregate of the general State aid
26and supplemental general State aid or primary State aid and

 

 

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1supplemental grants, as applicable, as so computed for the
2annexing and annexed districts, as constituted prior to the
3annexation, then a supplementary payment equal to the
4difference shall be made and allocated between or among the
5annexing districts, as constituted upon the annexation, for the
6first 4 years of their existence. The total difference payment
7shall be allocated between or among the annexing districts in
8the same ratio as the pupil enrollment from that portion of the
9annexed district or districts that is annexed to each annexing
10district bears to the total pupil enrollment from the entire
11annexed district or districts, as such pupil enrollment is
12determined for the school year last ending prior to the date
13when the change of boundaries attributable to the annexation
14becomes effective for all purposes. The amount of the total
15difference payment and the amount thereof to be allocated to
16the annexing districts shall be computed by the State Board of
17Education on the basis of pupil enrollment and other data that
18shall be certified to the State Board of Education, on forms
19that it shall provide for that purpose, by the regional
20superintendent of schools for each educational service region
21in which the annexing and annexed districts are located.
22    (4) For a school district conversion, as defined in Section
2311E-15 of this Code, or a multi-unit conversion, as defined in
24subsection (b) of Section 11E-30 of this Code, if in their
25first year of existence the newly created elementary districts
26and the newly created high school district, from a school

 

 

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1district conversion, or the newly created elementary district
2or districts and newly created combined high school - unit
3district, from a multi-unit conversion, qualify for less
4general State aid under Section 18-8.05 of this Code or primary
5State aid under Section 18-8.15 of this Code than would have
6been payable under Section 18-8.05 or 18-8.15, as applicable,
7for that same year to the previously existing districts, then a
8supplementary payment equal to that difference shall be made
9for the first 4 years of existence of the newly created
10districts. The aggregate amount of each supplementary payment
11shall be allocated among the newly created districts in the
12proportion that the deemed pupil enrollment in each district
13during its first year of existence bears to the actual
14aggregate pupil enrollment in all of the districts during their
15first year of existence. For purposes of each allocation:
16        (A) the deemed pupil enrollment of the newly created
17    high school district from a school district conversion
18    shall be an amount equal to its actual pupil enrollment for
19    its first year of existence multiplied by 1.25;
20        (B) the deemed pupil enrollment of each newly created
21    elementary district from a school district conversion
22    shall be an amount equal to its actual pupil enrollment for
23    its first year of existence reduced by an amount equal to
24    the product obtained when the amount by which the newly
25    created high school district's deemed pupil enrollment
26    exceeds its actual pupil enrollment for its first year of

 

 

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1    existence is multiplied by a fraction, the numerator of
2    which is the actual pupil enrollment of the newly created
3    elementary district for its first year of existence and the
4    denominator of which is the actual aggregate pupil
5    enrollment of all of the newly created elementary districts
6    for their first year of existence;
7        (C) the deemed high school pupil enrollment of the
8    newly created combined high school - unit district from a
9    multi-unit conversion shall be an amount equal to its
10    actual grades 9 through 12 pupil enrollment for its first
11    year of existence multiplied by 1.25; and
12        (D) the deemed elementary pupil enrollment of each
13    newly created district from a multi-unit conversion shall
14    be an amount equal to each district's actual grade K
15    through 8 pupil enrollment for its first year of existence,
16    reduced by an amount equal to the product obtained when the
17    amount by which the newly created combined high school -
18    unit district's deemed high school pupil enrollment
19    exceeds its actual grade 9 through 12 pupil enrollment for
20    its first year of existence is multiplied by a fraction,
21    the numerator of which is the actual grade K through 8
22    pupil enrollment of each newly created district for its
23    first year of existence and the denominator of which is the
24    actual aggregate grade K through 8 pupil enrollment of all
25    such newly created districts for their first year of
26    existence.

 

 

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1     The aggregate amount of each supplementary payment under
2this subdivision (4) and the amount thereof to be allocated to
3the newly created districts shall be computed by the State
4Board of Education on the basis of pupil enrollment and other
5data, which shall be certified to the State Board of Education,
6on forms that it shall provide for that purpose, by the
7regional superintendent of schools for each educational
8service region in which the newly created districts are
9located.
10    (5) For a partial elementary unit district, as defined in
11subsection (a) or (c) of Section 11E-30 of this Code, if, in
12the first year of existence, the newly created partial
13elementary unit district qualifies for less general State aid
14and supplemental general State aid under Section 18-8.05 of
15this Code or less primary State aid and supplemental grants
16under Section 18-8.15 of this Code, as applicable, than would
17have been payable under those Sections that Section for that
18same year to the previously existing districts that formed the
19partial elementary unit district, then a supplementary payment
20equal to that difference shall be made to the partial
21elementary unit district for the first 4 years of existence of
22that newly created district.
23    (6) For an elementary opt-in, as described in subsection
24(d) of Section 11E-30 of this Code, the general State aid or
25primary State aid difference shall be computed in accordance
26with paragraph (5) of this subsection (a) as if the elementary

 

 

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1opt-in was included in an optional elementary unit district at
2the optional elementary unit district's original effective
3date. If the calculation in this paragraph (6) is less than
4that calculated in paragraph (5) of this subsection (a) at the
5optional elementary unit district's original effective date,
6then no adjustments may be made. If the calculation in this
7paragraph (6) is more than that calculated in paragraph (5) of
8this subsection (a) at the optional elementary unit district's
9original effective date, then the excess must be paid as
10follows:
11        (A) If the effective date for the elementary opt-in is
12    one year after the effective date for the optional
13    elementary unit district, 100% of the calculated excess
14    shall be paid to the optional elementary unit district in
15    each of the first 4 years after the effective date of the
16    elementary opt-in.
17        (B) If the effective date for the elementary opt-in is
18    2 years after the effective date for the optional
19    elementary unit district, 75% of the calculated excess
20    shall be paid to the optional elementary unit district in
21    each of the first 4 years after the effective date of the
22    elementary opt-in.
23        (C) If the effective date for the elementary opt-in is
24    3 years after the effective date for the optional
25    elementary unit district, 50% of the calculated excess
26    shall be paid to the optional elementary unit district in

 

 

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

 

 

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1primary State aid and supplemental grants, as applicable, as so
2computed for the district gaining territory and the district
3losing territory as constituted after the annexation is less
4than the aggregate of the general State aid and supplemental
5general State aid or primary State aid and supplemental grants,
6as applicable, as so computed for the district gaining
7territory and the district losing territory as constituted
8prior to the annexation, then a supplementary payment shall be
9made to the annexing district for the first 4 years of
10existence after the annexation, equal to the difference
11multiplied by the ratio of student enrollment in the territory
12detached to the total student enrollment in the district losing
13territory for the year prior to the effective date of the
14annexation. The amount of the total difference and the
15proportion paid to the annexing district shall be computed by
16the State Board of Education on the basis of pupil enrollment
17and other data that must be submitted to the State Board of
18Education in accordance with Section 7-14A of this Code. The
19changes to this Section made by Public Act 95-707 are intended
20to be retroactive and applicable to any annexation taking
21effect on or after July 1, 2004. For annexations that are
22eligible for payments under this paragraph (6.5) and that are
23effective on or after July 1, 2004, but before January 11, 2008
24(the effective date of Public Act 95-707), the first required
25yearly payment under this paragraph (6.5) shall be paid in the
26fiscal year of January 11, 2008 (the effective date of Public

 

 

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1Act 95-707). Subsequent required yearly payments shall be paid
2in subsequent fiscal years until the payment obligation under
3this paragraph (6.5) is complete.
4    (7) Claims for financial assistance under this subsection
5(a) may not be recomputed except as expressly provided under
6Section 18-8.05 or 18-8.15 of this Code.
7    (8) Any supplementary payment made under this subsection
8(a) must be treated as separate from all other payments made
9pursuant to Section 18-8.05 or 18-8.15 of this Code.
10    (b)(1) After the formation of a combined school district,
11as defined in Section 11E-20 of this Code, or a unit district,
12as defined in Section 11E-25 of this Code, a computation shall
13be made to determine the difference between the salaries
14effective in each of the previously existing districts on June
1530, prior to the creation of the new district. For the first 4
16years after the formation of the new district, a supplementary
17State aid reimbursement shall be paid to the new district equal
18to the difference between the sum of the salaries earned by
19each of the certificated members of the new district, while
20employed in one of the previously existing districts during the
21year immediately preceding the formation of the new district,
22and the sum of the salaries those certificated members would
23have been paid during the year immediately prior to the
24formation of the new district if placed on the salary schedule
25of the previously existing district with the highest salary
26schedule.

 

 

09900SB0231sam001- 232 -LRB099 03162 NHT 47157 a

1    (2) After the territory of one or more school districts is
2annexed by one or more other school districts as defined in
3Article 7 of this Code, a computation shall be made to
4determine the difference between the salaries effective in each
5annexed district and in the annexing district or districts as
6they were each constituted on June 30 preceding the date when
7the change of boundaries attributable to the annexation became
8effective for all purposes, as determined under Section 7-9 of
9this Code. For the first 4 years after the annexation, a
10supplementary State aid reimbursement shall be paid to each
11annexing district as constituted after the annexation equal to
12the difference between the sum of the salaries earned by each
13of the certificated members of the annexing district as
14constituted after the annexation, while employed in an annexed
15or annexing district during the year immediately preceding the
16annexation, and the sum of the salaries those certificated
17members would have been paid during the immediately preceding
18year if placed on the salary schedule of whichever of the
19annexing or annexed districts had the highest salary schedule
20during the immediately preceding year.
21    (3) For each new high school district formed under a school
22district conversion, as defined in Section 11E-15 of this Code,
23the State shall make a supplementary payment for 4 years equal
24to the difference between the sum of the salaries earned by
25each certified member of the new high school district, while
26employed in one of the previously existing districts, and the

 

 

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

 

 

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1the calculation in this paragraph (5) is more than that
2calculated in paragraph (4) of this subsection (b) at the
3optional elementary unit district's original effective date,
4then the excess must be paid as follows:
5        (A) If the effective date for the elementary opt-in is
6    one year after the effective date for the optional
7    elementary unit district, 100% of the calculated excess
8    shall be paid to the optional elementary unit district in
9    each of the first 4 years after the effective date of the
10    elementary opt-in.
11        (B) If the effective date for the elementary opt-in is
12    2 years after the effective date for the optional
13    elementary unit district, 75% of the calculated excess
14    shall be paid to the optional elementary unit district in
15    each of the first 4 years after the effective date of the
16    elementary opt-in.
17        (C) If the effective date for the elementary opt-in is
18    3 years after the effective date for the optional
19    elementary unit district, 50% of the calculated excess
20    shall be paid to the optional elementary unit district in
21    each of the first 4 years after the effective date of the
22    elementary opt-in.
23        (D) If the effective date for the elementary opt-in is
24    4 years after the effective date for the partial elementary
25    unit district, 25% of the calculated excess shall be paid
26    to the optional elementary unit district in each of the

 

 

09900SB0231sam001- 235 -LRB099 03162 NHT 47157 a

1    first 4 years after the effective date of the elementary
2    opt-in.
3        (E) If the effective date for the elementary opt-in is
4    5 years after the effective date for the optional
5    elementary unit district, the optional elementary unit
6    district is not eligible for any additional incentives due
7    to the elementary opt-in.
8    (5.5) After the formation of a cooperative high school by 2
9or more school districts under Section 10-22.22c of this Code,
10a computation shall be made to determine the difference between
11the salaries effective in each of the previously existing high
12schools on June 30 prior to the formation of the cooperative
13high school. For the first 4 years after the formation of the
14cooperative high school, a supplementary State aid
15reimbursement shall be paid to the cooperative high school
16equal to the difference between the sum of the salaries earned
17by each of the certificated members of the cooperative high
18school while employed in one of the previously existing high
19schools during the year immediately preceding the formation of
20the cooperative high school and the sum of the salaries those
21certificated members would have been paid during the year
22immediately prior to the formation of the cooperative high
23school if placed on the salary schedule of the previously
24existing high school with the highest salary schedule.
25    (5.10) After the annexation of territory detached from
26another school district whereby the enrollment of the annexing

 

 

09900SB0231sam001- 236 -LRB099 03162 NHT 47157 a

1district increases by 90% or more as a result of the
2annexation, a computation shall be made to determine the
3difference between the salaries effective in the district
4gaining territory and the district losing territory as they
5each were constituted on June 30 preceding the date when the
6change of boundaries attributable to the annexation became
7effective for all purposes as determined under Section 7-9 of
8this Code. For the first 4 years after the annexation, a
9supplementary State aid reimbursement shall be paid to the
10annexing district equal to the difference between the sum of
11the salaries earned by each of the certificated members of the
12annexing district as constituted after the annexation while
13employed in the district gaining territory or the district
14losing territory during the year immediately preceding the
15annexation and the sum of the salaries those certificated
16members would have been paid during such immediately preceding
17year if placed on the salary schedule of whichever of the
18district gaining territory or district losing territory had the
19highest salary schedule during the immediately preceding year.
20To be eligible for supplementary State aid reimbursement under
21this Section, the intergovernmental agreement to be submitted
22pursuant to Section 7-14A of this Code must show that staff
23members were transferred from the control of the district
24losing territory to the control of the district gaining
25territory in the annexation. The changes to this Section made
26by Public Act 95-707 are intended to be retroactive and

 

 

09900SB0231sam001- 237 -LRB099 03162 NHT 47157 a

1applicable to any annexation taking effect on or after July 1,
22004. For annexations that are eligible for payments under this
3paragraph (5.10) and that are effective on or after July 1,
42004, but before January 11, 2008 (the effective date of Public
5Act 95-707), the first required yearly payment under this
6paragraph (5.10) shall be paid in the fiscal year of January
711, 2008 (the effective date of Public Act 95-707). Subsequent
8required yearly payments shall be paid in subsequent fiscal
9years until the payment obligation under this paragraph (5.10)
10is complete.
11    (5.15) After the deactivation of a school facility in
12accordance with Section 10-22.22b of this Code, a computation
13shall be made to determine the difference between the salaries
14effective in the sending school district and each receiving
15school district on June 30 prior to the deactivation of the
16school facility. For the lesser of the first 4 years after the
17deactivation of the school facility or the length of the
18deactivation agreement, including any renewals of the original
19deactivation agreement, a supplementary State aid
20reimbursement shall be paid to each receiving district equal to
21the difference between the sum of the salaries earned by each
22of the certificated members transferred to that receiving
23district as a result of the deactivation while employed in the
24sending district during the year immediately preceding the
25deactivation and the sum of the salaries those certificated
26members would have been paid during the year immediately

 

 

09900SB0231sam001- 238 -LRB099 03162 NHT 47157 a

1preceding the deactivation if placed on the salary schedule of
2the sending or receiving district with the highest salary
3schedule.
4    (6) The supplementary State aid reimbursement under this
5subsection (b) shall be treated as separate from all other
6payments made pursuant to Section 18-8.05 of this Code. In the
7case of the formation of a new district or cooperative high
8school or a deactivation, reimbursement shall begin during the
9first year of operation of the new district or cooperative high
10school or the first year of the deactivation, and in the case
11of an annexation of the territory of one or more school
12districts by one or more other school districts or the
13annexation of territory detached from a school district whereby
14the enrollment of the annexing district increases by 90% or
15more as a result of the annexation, reimbursement shall begin
16during the first year when the change in boundaries
17attributable to the annexation becomes effective for all
18purposes as determined pursuant to Section 7-9 of this Code,
19except that for an annexation of territory detached from a
20school district that is effective on or after July 1, 2004, but
21before January 11, 2008 (the effective date of Public Act
2295-707), whereby the enrollment of the annexing district
23increases by 90% or more as a result of the annexation,
24reimbursement shall begin during the fiscal year of January 11,
252008 (the effective date of Public Act 95-707). Each year that
26the new, annexing, or receiving district or cooperative high

 

 

09900SB0231sam001- 239 -LRB099 03162 NHT 47157 a

1school, as the case may be, is entitled to receive
2reimbursement, the number of eligible certified members who are
3employed on October 1 in the district or cooperative high
4school shall be certified to the State Board of Education on
5prescribed forms by October 15 and payment shall be made on or
6before November 15 of that year.
7    (c)(1) For the first year after the formation of a combined
8school district, as defined in Section 11E-20 of this Code or a
9unit district, as defined in Section 11E-25 of this Code, a
10computation shall be made totaling each previously existing
11district's audited fund balances in the educational fund,
12working cash fund, operations and maintenance fund, and
13transportation fund for the year ending June 30 prior to the
14referendum for the creation of the new district. The new
15district shall be paid supplementary State aid equal to the sum
16of the differences between the deficit of the previously
17existing district with the smallest deficit and the deficits of
18each of the other previously existing districts.
19    (2) For the first year after the annexation of all of the
20territory of one or more entire school districts by another
21school district, as defined in Article 7 of this Code,
22computations shall be made, for the year ending June 30 prior
23to the date that the change of boundaries attributable to the
24annexation is allowed by the affirmative decision issued by the
25regional board of school trustees under Section 7-6 of this
26Code, notwithstanding any effort to seek administrative review

 

 

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

 

 

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1annexation had the smallest deficit and the deficits of each of
2the other districts as constituted prior to the annexation. The
3aggregate amount of the supplementary State aid payable under
4this paragraph (3) shall be allocated between or among the
5annexing districts as follows:
6        (A) the regional superintendent of schools for each
7    educational service region in which an annexed district is
8    located prior to the annexation shall certify to the State
9    Board of Education, on forms that it shall provide for that
10    purpose, the value of all taxable property in each annexed
11    district, as last equalized or assessed by the Department
12    of Revenue prior to the annexation, and the equalized
13    assessed value of each part of the annexed district that
14    was annexed to or included as a part of an annexing
15    district;
16        (B) using equalized assessed values as certified by the
17    regional superintendent of schools under clause (A) of this
18    paragraph (3), the combined audited fund balance deficit of
19    each annexed district as determined under this Section
20    shall be apportioned between or among the annexing
21    districts in the same ratio as the equalized assessed value
22    of that part of the annexed district that was annexed to or
23    included as a part of an annexing district bears to the
24    total equalized assessed value of the annexed district; and
25        (C) the aggregate supplementary State aid payment
26    under this paragraph (3) shall be allocated between or

 

 

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1    among, and shall be paid to, the annexing districts in the
2    same ratio as the sum of the combined audited fund balance
3    deficit of each annexing district as constituted prior to
4    the annexation, plus all combined audited fund balance
5    deficit amounts apportioned to that annexing district
6    under clause (B) of this subsection, bears to the aggregate
7    of the combined audited fund balance deficits of all of the
8    annexing and annexed districts as constituted prior to the
9    annexation.
10    (4) For the new elementary districts and new high school
11district formed through a school district conversion, as
12defined in Section 11E-15 of this Code or the new elementary
13district or districts and new combined high school - unit
14district formed through a multi-unit conversion, as defined in
15subsection (b) of Section 11E-30 of this Code, a computation
16shall be made totaling each previously existing district's
17audited fund balances in the educational fund, working cash
18fund, operations and maintenance fund, and transportation fund
19for the year ending June 30 prior to the referendum
20establishing the new districts. In the first year of the new
21districts, the State shall make a one-time supplementary
22payment equal to the sum of the differences between the deficit
23of the previously existing district with the smallest deficit
24and the deficits of each of the other previously existing
25districts. A district with a combined balance among the 4 funds
26that is positive shall be considered to have a deficit of zero.

 

 

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

 

 

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1in the optional elementary unit district at the optional
2elementary unit district's original effective date. If the
3calculation in this paragraph (6) is less than that calculated
4in paragraph (5) of this subsection (c) at the optional
5elementary unit district's original effective date, then no
6adjustments may be made. If the calculation in this paragraph
7(6) is more than that calculated in paragraph (5) of this
8subsection (c) at the optional elementary unit district's
9original effective date, then the excess must be paid as
10follows:
11        (A) If the effective date for the elementary opt-in is
12    one year after the effective date for the optional
13    elementary unit district, 100% of the calculated excess
14    shall be paid to the optional elementary unit district in
15    the first year after the effective date of the elementary
16    opt-in.
17        (B) If the effective date for the elementary opt-in is
18    2 years after the effective date for the optional
19    elementary unit district, 75% of the calculated excess
20    shall be paid to the optional elementary unit district in
21    the first year after the effective date of the elementary
22    opt-in.
23        (C) If the effective date for the elementary opt-in is
24    3 years after the effective date for the optional
25    elementary unit district, 50% of the calculated excess
26    shall be paid to the optional elementary unit district in

 

 

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1    the first year after the effective date of the elementary
2    opt-in.
3        (D) If the effective date for the elementary opt-in is
4    4 years after the effective date for the optional
5    elementary unit district, 25% of the calculated excess
6    shall be paid to the optional elementary unit district in
7    the first year after the effective date of the elementary
8    opt-in.
9        (E) If the effective date for the elementary opt-in is
10    5 years after the effective date for the optional
11    elementary unit district, the optional elementary unit
12    district is not eligible for any additional incentives due
13    to the elementary opt-in.
14    (6.5) For the first year after the annexation of territory
15detached from another school district whereby the enrollment of
16the annexing district increases by 90% or more as a result of
17the annexation, a computation shall be made totaling the
18audited fund balances of the district gaining territory and the
19audited fund balances of the district losing territory in the
20educational fund, working cash fund, operations and
21maintenance fund, and transportation fund for the year ending
22June 30 prior to the date that the change of boundaries
23attributable to the annexation is allowed by the affirmative
24decision of the regional board of school trustees under Section
257-6 of this Code, notwithstanding any action for administrative
26review of the decision. The annexing district as constituted

 

 

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1after the annexation shall be paid supplementary State aid
2equal to the difference between the deficit of whichever
3district included in this calculation as constituted prior to
4the annexation had the smallest deficit and the deficit of each
5other district included in this calculation as constituted
6prior to the annexation, multiplied by the ratio of equalized
7assessed value of the territory detached to the total equalized
8assessed value of the district losing territory. The regional
9superintendent of schools for the educational service region in
10which a district losing territory is located prior to the
11annexation shall certify to the State Board of Education the
12value of all taxable property in the district losing territory
13and the value of all taxable property in the territory being
14detached, as last equalized or assessed by the Department of
15Revenue prior to the annexation. To be eligible for
16supplementary State aid reimbursement under this Section, the
17intergovernmental agreement to be submitted pursuant to
18Section 7-14A of this Code must show that fund balances were
19transferred from the district losing territory to the district
20gaining territory in the annexation. The changes to this
21Section made by Public Act 95-707 are intended to be
22retroactive and applicable to any annexation taking effect on
23or after July 1, 2004. For annexations that are eligible for
24payments under this paragraph (6.5) and that are effective on
25or after July 1, 2004, but before January 11, 2008 (the
26effective date of Public Act 95-707), the required payment

 

 

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1under this paragraph (6.5) shall be paid in the fiscal year of
2January 11, 2008 (the effective date of Public Act 95-707).
3    (7) For purposes of any calculation required under
4paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
5subsection (c), a district with a combined fund balance that is
6positive shall be considered to have a deficit of zero. For
7purposes of determining each district's audited fund balances
8in its educational fund, working cash fund, operations and
9maintenance fund, and transportation fund for the specified
10year ending June 30, as provided in paragraphs (1), (2), (3),
11(4), (5), (6), and (6.5) of this subsection (c), the balance of
12each fund shall be deemed decreased by an amount equal to the
13amount of the annual property tax theretofore levied in the
14fund by the district for collection and payment to the district
15during the calendar year in which the June 30 fell, but only to
16the extent that the tax so levied in the fund actually was
17received by the district on or before or comprised a part of
18the fund on such June 30. For purposes of determining each
19district's audited fund balances, a calculation shall be made
20for each fund to determine the average for the 3 years prior to
21the specified year ending June 30, as provided in paragraphs
22(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
23of the district's expenditures in the categories "purchased
24services", "supplies and materials", and "capital outlay", as
25those categories are defined in rules of the State Board of
26Education. If this 3-year average is less than the district's

 

 

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1expenditures in these categories for the specified year ending
2June 30, as provided in paragraphs (1), (2), (3), (4), (5),
3(6), and (6.5) of this subsection (c), then the 3-year average
4shall be used in calculating the amounts payable under this
5Section in place of the amounts shown in these categories for
6the specified year ending June 30, as provided in paragraphs
7(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
8Any deficit because of State aid not yet received may not be
9considered in determining the June 30 deficits. The same basis
10of accounting shall be used by all previously existing
11districts and by all annexing or annexed districts, as
12constituted prior to the annexation, in making any computation
13required under paragraphs (1), (2), (3), (4), (5), (6), and
14(6.5) of this subsection (c).
15    (8) The supplementary State aid payments under this
16subsection (c) shall be treated as separate from all other
17payments made pursuant to Section 18-8.05 of this Code.
18    (d)(1) Following the formation of a combined school
19district, as defined in Section 11E-20 of this Code, a new unit
20district, as defined in Section 11E-25 of this Code, a new
21elementary district or districts and a new high school district
22formed through a school district conversion, as defined in
23Section 11E-15 of this Code, a new partial elementary unit
24district, as defined in Section 11E-30 of this Code, or a new
25elementary district or districts formed through a multi-unit
26conversion, as defined in subsection (b) of Section 11E-30 of

 

 

 

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1this Code, or the annexation of all of the territory of one or
2more entire school districts by one or more other school
3districts, as defined in Article 7 of this Code, a
4supplementary State aid reimbursement shall be paid for the
5number of school years determined under the following table to
6each new or annexing district equal to the sum of $4,000 for
7each certified employee who is employed by the district on a
8full-time basis for the regular term of the school year:
 
9Reorganized District's RankReorganized District's Rank
10by type of district (unit,in Average Daily Attendance
11high school, elementary)By Quintile
12in Equalized Assessed Value
13Per Pupil by Quintile
143rd, 4th,
151st2ndor 5th
16QuintileQuintileQuintile
17    1st Quintile1 year1 year1 year
18    2nd Quintile1 year2 years2 years
19    3rd Quintile2 years3 years3 years
20    4th Quintile2 years3 years3 years
21    5th Quintile2 years3 years3 years
22The State Board of Education shall make a one-time calculation
23of a reorganized district's quintile ranks. The average daily
24attendance used in this calculation shall be the best 3 months'

 

 

09900SB0231sam001- 250 -LRB099 03162 NHT 47157 a

1average daily attendance for the district's first year. The
2equalized assessed value per pupil shall be the district's real
3property equalized assessed value used in calculating the
4district's first-year general State aid claim, under Section
518-8.05 of this Code, or first-year primary State aid claim,
6under Section 18-8.15 of this Code, as applicable, divided by
7the best 3 months' average daily attendance.
8    No annexing or resulting school district shall be entitled
9to supplementary State aid under this subsection (d) unless the
10district acquires at least 30% of the average daily attendance
11of the district from which the territory is being detached or
12divided.
13    If a district results from multiple reorganizations that
14would otherwise qualify the district for multiple payments
15under this subsection (d) in any year, then the district shall
16receive a single payment only for that year based solely on the
17most recent reorganization.
18    (2) For an elementary opt-in, as defined in subsection (d)
19of Section 11E-30 of this Code, the full-time certified staff
20incentive shall be computed in accordance with paragraph (1) of
21this subsection (d), equal to the sum of $4,000 for each
22certified employee of the elementary district that opts-in who
23is employed by the optional elementary unit district on a
24full-time basis for the regular term of the school year. The
25calculation from this paragraph (2) must be paid as follows:
26        (A) If the effective date for the elementary opt-in is

 

 

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1    one year after the effective date for the optional
2    elementary unit district, 100% 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        (B) If the effective date for the elementary opt-in is
10    2 years after the effective date for the optional
11    elementary unit district, 75% 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        (C) If the effective date for the elementary opt-in is
19    3 years after the effective date for the optional
20    elementary unit district, 50% 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        (D) If the effective date for the elementary opt-in is
2    4 years after the effective date for the optional
3    elementary unit district, 25% of the amount calculated in
4    this paragraph (2) shall be paid to the optional elementary
5    unit district for the number of years calculated in
6    paragraph (1) of this subsection (d) at the optional
7    elementary unit district's original effective date,
8    starting in the second year after the effective date of the
9    elementary opt-in.
10        (E) If the effective date for the elementary opt-in is
11    5 years after the effective date for the optional
12    elementary unit district, the optional elementary unit
13    district is not eligible for any additional incentives due
14    to the elementary opt-in.
15    (2.5) Following the formation of a cooperative high school
16by 2 or more school districts under Section 10-22.22c of this
17Code, a supplementary State aid reimbursement shall be paid for
183 school years to the cooperative high school equal to the sum
19of $4,000 for each certified employee who is employed by the
20cooperative high school on a full-time basis for the regular
21term of any such school year. If a cooperative high school
22results from multiple agreements that would otherwise qualify
23the cooperative high school for multiple payments under this
24Section in any year, the cooperative high school shall receive
25a single payment for that year based solely on the most recent
26agreement.

 

 

09900SB0231sam001- 253 -LRB099 03162 NHT 47157 a

1    (2.10) Following the annexation of territory detached from
2another school district whereby the enrollment of the annexing
3district increases 90% or more as a result of the annexation, a
4supplementary State aid reimbursement shall be paid to the
5annexing district equal to the sum of $4,000 for each certified
6employee who is employed by the annexing district on a
7full-time basis and shall be calculated in accordance with
8subsection (a) of this Section. To be eligible for
9supplementary State aid reimbursement under this Section, the
10intergovernmental agreement to be submitted pursuant to
11Section 7-14A of this Code must show that certified staff
12members were transferred from the control of the district
13losing territory to the control of the district gaining
14territory in the annexation. The changes to this Section made
15by Public Act 95-707 are intended to be retroactive and
16applicable to any annexation taking effect on or after July 1,
172004. For annexations that are eligible for payments under this
18paragraph (2.10) and that are effective on or after July 1,
192004, but before January 11, 2008 (the effective date of Public
20Act 95-707), the first required yearly payment under this
21paragraph (2.10) shall be paid in the second fiscal year after
22January 11, 2008 (the effective date of Public Act 95-707). Any
23subsequent required yearly payments shall be paid in subsequent
24fiscal years until the payment obligation under this paragraph
25(2.10) is complete.
26    (2.15) Following the deactivation of a school facility in

 

 

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1accordance with Section 10-22.22b of this Code, a supplementary
2State aid reimbursement shall be paid for the lesser of 3
3school years or the length of the deactivation agreement,
4including any renewals of the original deactivation agreement,
5to each receiving school district equal to the sum of $4,000
6for each certified employee who is employed by that receiving
7district on a full-time basis for the regular term of any such
8school year who was originally transferred to the control of
9that receiving district as a result of the deactivation.
10Receiving districts are eligible for payments under this
11paragraph (2.15) based on the certified employees transferred
12to that receiving district as a result of the deactivation and
13are not required to receive at least 30% of the deactivating
14district's average daily attendance as required under
15paragraph (1) of this subsection (d) to be eligible for
16payments.
17    (3) The supplementary State aid reimbursement payable
18under this subsection (d) shall be separate from and in
19addition to all other payments made to the district pursuant to
20any other Section of this Article.
21    (4) During May of each school year for which a
22supplementary State aid reimbursement is to be paid to a new,
23annexing, or receiving school district or cooperative high
24school pursuant to this subsection (d), the school board or
25governing board shall certify to the State Board of Education,
26on forms furnished to the school board or governing board by

 

 

09900SB0231sam001- 255 -LRB099 03162 NHT 47157 a

1the State Board of Education for purposes of this subsection
2(d), the number of certified employees for which the district
3or cooperative high school is entitled to reimbursement under
4this Section, together with the names, certificate numbers, and
5positions held by the certified employees.
6    (5) Upon certification by the State Board of Education to
7the State Comptroller of the amount of the supplementary State
8aid reimbursement to which a school district or cooperative
9high school is entitled under this subsection (d), the State
10Comptroller shall draw his or her warrant upon the State
11Treasurer for the payment thereof to the school district or
12cooperative high school and shall promptly transmit the payment
13to the school district or cooperative high school through the
14appropriate school treasurer.
15(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
1695-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
17    (105 ILCS 5/13A-8)
18    Sec. 13A-8. Funding.
19    (a) The State of Illinois shall provide funding for the
20alternative school programs within each educational service
21region and within the Chicago public school system by line item
22appropriation made to the State Board of Education for that
23purpose. This money, when appropriated, shall be provided to
24the regional superintendent and to the Chicago Board of
25Education, who shall establish a budget, including salaries,

 

 

09900SB0231sam001- 256 -LRB099 03162 NHT 47157 a

1for their alternative school programs. Each program shall
2receive funding in the amount of $30,000 plus an amount based
3on the ratio of the region's or Chicago's best 3 months'
4average daily attendance in grades pre-kindergarten through 12
5to the statewide totals of these amounts. For purposes of this
6calculation, the best 3 months' average daily attendance for
7each region or Chicago shall be calculated by adding to the
8best 3 months' average daily attendance the number of
9low-income students identified in the most recently available
10federal census multiplied by one-half times the percentage of
11the region's or Chicago's low-income students to the State's
12total low-income students. The State Board of Education shall
13retain up to 1.1% of the appropriation to be used to provide
14technical assistance, professional development, and
15evaluations for the programs.
16    (a-5) Notwithstanding any other provisions of this
17Section, for the 1998-1999 fiscal year, the total amount
18distributed under subsection (a) for an alternative school
19program shall be not less than the total amount that was
20distributed under that subsection for that alternative school
21program for the 1997-1998 fiscal year. If an alternative school
22program is to receive a total distribution under subsection (a)
23for the 1998-1999 fiscal year that is less than the total
24distribution that the program received under that subsection
25for the 1997-1998 fiscal year, that alternative school program
26shall also receive, from a separate appropriation made for

 

 

09900SB0231sam001- 257 -LRB099 03162 NHT 47157 a

1purposes of this subsection (a-5), a supplementary payment
2equal to the amount by which its total distribution under
3subsection (a) for the 1997-1998 fiscal year exceeds the amount
4of the total distribution that the alternative school program
5receives under that subsection for the 1998-1999 fiscal year.
6If the amount appropriated for supplementary payments to
7alternative school programs under this subsection (a-5) is
8insufficient for that purpose, those supplementary payments
9shall be prorated among the alternative school programs
10entitled to receive those supplementary payments according to
11the aggregate amount of the appropriation made for purposes of
12this subsection (a-5).
13    (b) An alternative school program shall be entitled to
14receive general State aid as calculated in subsection (K) of
15Section 18-8.05 or primary State aid as calculated in
16subsection (i) of Section 18-8.15 upon filing a claim as
17provided therein. Any time that a student who is enrolled in an
18alternative school program spends in work-based learning,
19community service, or a similar alternative educational
20setting shall be included in determining the student's minimum
21number of clock hours of daily school work that constitute a
22day of attendance for purposes of calculating general State aid
23or primary State aid.
24    (c) An alternative school program may receive additional
25funding from its school districts in such amount as may be
26agreed upon by the parties and necessary to support the

 

 

09900SB0231sam001- 258 -LRB099 03162 NHT 47157 a

1program. In addition, an alternative school program is
2authorized to accept and expend gifts, legacies, and grants,
3including but not limited to federal grants, from any source
4for purposes directly related to the conduct and operation of
5the program.
6(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
789-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
890-802, eff. 12-15-98.)
 
9    (105 ILCS 5/13B-20.20)
10    Sec. 13B-20.20. Enrollment in other programs. High school
11equivalency testing preparation programs are not eligible for
12funding under this Article. A student may enroll in a program
13approved under Section 18-8.05 or 18-8.15 of this Code, as
14appropriate, or attend both the alternative learning
15opportunities program and the regular school program to enhance
16student performance and facilitate on-time graduation.
17(Source: P.A. 98-718, eff. 1-1-15.)
 
18    (105 ILCS 5/13B-45)
19    Sec. 13B-45. Days and hours of attendance. An alternative
20learning opportunities program shall provide students with at
21least the minimum number of days of pupil attendance required
22under Section 10-19 of this Code and the minimum number of
23daily hours of school work required under Section 18-8.05 or
2418-8.15 of this Code, provided that the State Board may approve

 

 

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1exceptions to these requirements if the program meets all of
2the following conditions:
3        (1) The district plan submitted under Section
4    13B-25.15 of this Code establishes that a program providing
5    the required minimum number of days of attendance or daily
6    hours of school work would not serve the needs of the
7    program's students.
8        (2) Each day of attendance shall provide no fewer than
9    3 clock hours of school work, as defined under paragraph
10    (1) of subsection (F) of Section 18-8.05 or subsection (f)
11    of Section 18-8.15 of this Code.
12        (3) Each day of attendance that provides fewer than 5
13    clock hours of school work shall also provide supplementary
14    services, including without limitation work-based
15    learning, student assistance programs, counseling, case
16    management, health and fitness programs, or life-skills or
17    conflict resolution training, in order to provide a total
18    daily program to the student of 5 clock hours. A program
19    may claim general State aid or primary State aid for up to
20    2 hours of the time each day that a student is receiving
21    supplementary services.
22        (4) Each program shall provide no fewer than 174 days
23    of actual pupil attendance during the school term; however,
24    approved evening programs that meet the requirements of
25    Section 13B-45 of this Code may offer less than 174 days of
26    actual pupil attendance during the school term.

 

 

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1(Source: P.A. 92-42, eff. 1-1-02.)
 
2    (105 ILCS 5/13B-50)
3    Sec. 13B-50. Eligibility to receive general State aid or
4primary State aid. In order to receive general State aid or
5primary State aid, alternative learning opportunities programs
6must meet the requirements for claiming general State aid as
7specified in Section 18-8.05 of this Code or primary State aid
8as specified in Section 18-8.15 of this Code, as applicable,
9with the exception of the length of the instructional day,
10which may be less than 5 hours of school work if the program
11meets the criteria set forth under Sections 13B-50.5 and
1213B-50.10 of this Code and if the program is approved by the
13State Board.
14(Source: P.A. 92-42, eff. 1-1-02.)
 
15    (105 ILCS 5/13B-50.10)
16    Sec. 13B-50.10. Additional criteria for general State aid
17or primary State aid. In order to claim general State aid or
18primary State aid, an alternative learning opportunities
19program must meet the following criteria:
20    (1) Teacher professional development plans should include
21education in the instruction of at-risk students.
22    (2) Facilities must meet the health, life, and safety
23requirements in this Code.
24    (3) The program must comply with all other State and

 

 

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1federal laws applicable to education providers.
2(Source: P.A. 92-42, eff. 1-1-02.)
 
3    (105 ILCS 5/13B-50.15)
4    Sec. 13B-50.15. Level of funding. Approved alternative
5learning opportunities programs are entitled to claim general
6State aid or primary State aid, subject to Sections 13B-50,
713B-50.5, and 13B-50.10 of this Code. Approved programs
8operated by regional offices of education are entitled to
9receive general State aid or primary State aid at the
10foundation level of support. A school district or consortium
11must ensure that an approved program receives supplemental
12general State aid, transportation reimbursements, and special
13education resources, if appropriate, for students enrolled in
14the program.
15(Source: P.A. 92-42, eff. 1-1-02.)
 
16    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)
17    Sec. 14-7.02. Children attending private schools, public
18out-of-state schools, public school residential facilities or
19private special education facilities. The General Assembly
20recognizes that non-public schools or special education
21facilities provide an important service in the educational
22system in Illinois.
23    If because of his or her disability the special education
24program of a district is unable to meet the needs of a child

 

 

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1and the child attends a non-public school or special education
2facility, a public out-of-state school or a special education
3facility owned and operated by a county government unit that
4provides special educational services required by the child and
5is in compliance with the appropriate rules and regulations of
6the State Superintendent of Education, the school district in
7which the child is a resident shall pay the actual cost of
8tuition for special education and related services provided
9during the regular school term and during the summer school
10term if the child's educational needs so require, excluding
11room, board and transportation costs charged the child by that
12non-public school or special education facility, public
13out-of-state school or county special education facility, or
14$4,500 per year, whichever is less, and shall provide him any
15necessary transportation. "Nonpublic special education
16facility" shall include a residential facility, within or
17without the State of Illinois, which provides special education
18and related services to meet the needs of the child by
19utilizing private schools or public schools, whether located on
20the site or off the site of the residential facility.
21    The State Board of Education shall promulgate rules and
22regulations for determining when placement in a private special
23education facility is appropriate. Such rules and regulations
24shall take into account the various types of services needed by
25a child and the availability of such services to the particular
26child in the public school. In developing these rules and

 

 

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1regulations the State Board of Education shall consult with the
2Advisory Council on Education of Children with Disabilities and
3hold public hearings to secure recommendations from parents,
4school personnel, and others concerned about this matter.
5    The State Board of Education shall also promulgate rules
6and regulations for transportation to and from a residential
7school. Transportation to and from home to a residential school
8more than once each school term shall be subject to prior
9approval by the State Superintendent in accordance with the
10rules and regulations of the State Board.
11    A school district making tuition payments pursuant to this
12Section is eligible for reimbursement from the State for the
13amount of such payments actually made in excess of the district
14per capita tuition charge for students not receiving special
15education services. Such reimbursement shall be approved in
16accordance with Section 14-12.01 and each district shall file
17its claims, computed in accordance with rules prescribed by the
18State Board of Education, on forms prescribed by the State
19Superintendent of Education. Data used as a basis of
20reimbursement claims shall be for the preceding regular school
21term and summer school term. Each school district shall
22transmit its claims to the State Board of Education on or
23before August 15. The State Board of Education, before
24approving any such claims, shall determine their accuracy and
25whether they are based upon services and facilities provided
26under approved programs. Upon approval the State Board shall

 

 

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1cause vouchers to be prepared showing the amount due for
2payment of reimbursement claims to school districts, for
3transmittal to the State Comptroller on the 30th day of
4September, December, and March, respectively, and the final
5voucher, no later than June 20. If the money appropriated by
6the General Assembly for such purpose for any year is
7insufficient, it shall be apportioned on the basis of the
8claims approved.
9    No child shall be placed in a special education program
10pursuant to this Section if the tuition cost for special
11education and related services increases more than 10 percent
12over the tuition cost for the previous school year or exceeds
13$4,500 per year unless such costs have been approved by the
14Illinois Purchased Care Review Board. The Illinois Purchased
15Care Review Board shall consist of the following persons, or
16their designees: the Directors of Children and Family Services,
17Public Health, Public Aid, and the Governor's Office of
18Management and Budget; the Secretary of Human Services; the
19State Superintendent of Education; and such other persons as
20the Governor may designate. The Review Board shall also consist
21of one non-voting member who is an administrator of a private,
22nonpublic, special education school. The Review Board shall
23establish rules and regulations for its determination of
24allowable costs and payments made by local school districts for
25special education, room and board, and other related services
26provided by non-public schools or special education facilities

 

 

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1and shall establish uniform standards and criteria which it
2shall follow. The Review Board shall approve the usual and
3customary rate or rates of a special education program that (i)
4is offered by an out-of-state, non-public provider of
5integrated autism specific educational and autism specific
6residential services, (ii) offers 2 or more levels of
7residential care, including at least one locked facility, and
8(iii) serves 12 or fewer Illinois students.
9    The Review Board shall establish uniform definitions and
10criteria for accounting separately by special education, room
11and board and other related services costs. The Board shall
12also establish guidelines for the coordination of services and
13financial assistance provided by all State agencies to assure
14that no otherwise qualified child with a disability receiving
15services under Article 14 shall be excluded from participation
16in, be denied the benefits of or be subjected to discrimination
17under any program or activity provided by any State agency.
18    The Review Board shall review the costs for special
19education and related services provided by non-public schools
20or special education facilities and shall approve or disapprove
21such facilities in accordance with the rules and regulations
22established by it with respect to allowable costs.
23    The State Board of Education shall provide administrative
24and staff support for the Review Board as deemed reasonable by
25the State Superintendent of Education. This support shall not
26include travel expenses or other compensation for any Review

 

 

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1Board member other than the State Superintendent of Education.
2    The Review Board shall seek the advice of the Advisory
3Council on Education of Children with Disabilities on the rules
4and regulations to be promulgated by it relative to providing
5special education services.
6    If a child has been placed in a program in which the actual
7per pupil costs of tuition for special education and related
8services based on program enrollment, excluding room, board and
9transportation costs, exceed $4,500 and such costs have been
10approved by the Review Board, the district shall pay such total
11costs which exceed $4,500. A district making such tuition
12payments in excess of $4,500 pursuant to this Section shall be
13responsible for an amount in excess of $4,500 equal to the
14district per capita tuition charge and shall be eligible for
15reimbursement from the State for the amount of such payments
16actually made in excess of the districts per capita tuition
17charge for students not receiving special education services.
18    If a child has been placed in an approved individual
19program and the tuition costs including room and board costs
20have been approved by the Review Board, then such room and
21board costs shall be paid by the appropriate State agency
22subject to the provisions of Section 14-8.01 of this Act. Room
23and board costs not provided by a State agency other than the
24State Board of Education shall be provided by the State Board
25of Education on a current basis. In no event, however, shall
26the State's liability for funding of these tuition costs begin

 

 

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1until after the legal obligations of third party payors have
2been subtracted from such costs. If the money appropriated by
3the General Assembly for such purpose for any year is
4insufficient, it shall be apportioned on the basis of the
5claims approved. Each district shall submit estimated claims to
6the State Superintendent of Education. Upon approval of such
7claims, the State Superintendent of Education shall direct the
8State Comptroller to make payments on a monthly basis. The
9frequency for submitting estimated claims and the method of
10determining payment shall be prescribed in rules and
11regulations adopted by the State Board of Education. Such
12current state reimbursement shall be reduced by an amount equal
13to the proceeds which the child or child's parents are eligible
14to receive under any public or private insurance or assistance
15program. Nothing in this Section shall be construed as
16relieving an insurer or similar third party from an otherwise
17valid obligation to provide or to pay for services provided to
18a child with a disability.
19    If it otherwise qualifies, a school district is eligible
20for the transportation reimbursement under Section 14-13.01
21and for the reimbursement of tuition payments under this
22Section whether the non-public school or special education
23facility, public out-of-state school or county special
24education facility, attended by a child who resides in that
25district and requires special educational services, is within
26or outside of the State of Illinois. However, a district is not

 

 

09900SB0231sam001- 268 -LRB099 03162 NHT 47157 a

1eligible to claim transportation reimbursement under this
2Section unless the district certifies to the State
3Superintendent of Education that the district is unable to
4provide special educational services required by the child for
5the current school year.
6    Nothing in this Section authorizes the reimbursement of a
7school district for the amount paid for tuition of a child
8attending a non-public school or special education facility,
9public out-of-state school or county special education
10facility unless the school district certifies to the State
11Superintendent of Education that the special education program
12of that district is unable to meet the needs of that child
13because of his disability and the State Superintendent of
14Education finds that the school district is in substantial
15compliance with Section 14-4.01. However, if a child is
16unilaterally placed by a State agency or any court in a
17non-public school or special education facility, public
18out-of-state school, or county special education facility, a
19school district shall not be required to certify to the State
20Superintendent of Education, for the purpose of tuition
21reimbursement, that the special education program of that
22district is unable to meet the needs of a child because of his
23or her disability.
24    Any educational or related services provided, pursuant to
25this Section in a non-public school or special education
26facility or a special education facility owned and operated by

 

 

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1a county government unit shall be at no cost to the parent or
2guardian of the child. However, current law and practices
3relative to contributions by parents or guardians for costs
4other than educational or related services are not affected by
5this amendatory Act of 1978.
6    Reimbursement for children attending public school
7residential facilities shall be made in accordance with the
8provisions of this Section.
9    Notwithstanding any other provision of law, any school
10district receiving a payment under this Section or under
11Section 14-7.02b, 14-13.01, or 29-5 of this Code may classify
12all or a portion of the funds that it receives in a particular
13fiscal year or from general State aid pursuant to Section
1418-8.05 of this Code as funds received in connection with any
15funding program for which it is entitled to receive funds from
16the State in that fiscal year (including, without limitation,
17any funding program referenced in this Section), regardless of
18the source or timing of the receipt. The district may not
19classify more funds as funds received in connection with the
20funding program than the district is entitled to receive in
21that fiscal year for that program. Any classification by a
22district must be made by a resolution of its board of
23education. The resolution must identify the amount of any
24payments or general State aid to be classified under this
25paragraph and must specify the funding program to which the
26funds are to be treated as received in connection therewith.

 

 

09900SB0231sam001- 270 -LRB099 03162 NHT 47157 a

1This resolution is controlling as to the classification of
2funds referenced therein. A certified copy of the resolution
3must be sent to the State Superintendent of Education. The
4resolution shall still take effect even though a copy of the
5resolution has not been sent to the State Superintendent of
6Education in a timely manner. No classification under this
7paragraph by a district shall affect the total amount or timing
8of money the district is entitled to receive under this Code.
9No classification under this paragraph by a district shall in
10any way relieve the district from or affect any requirements
11that otherwise would apply with respect to that funding
12program, including any accounting of funds by source, reporting
13expenditures by original source and purpose, reporting
14requirements, or requirements of providing services.
15    Notwithstanding anything to the contrary contained in this
16Section, the State Board of Education shall award to a school
17district having a population exceeding 500,000 inhabitants
1848.4% of the funds appropriated by the General Assembly for any
19fiscal year for purposes of payments to school districts under
20this Section.
21(Source: P.A. 98-636, eff. 6-6-14; 98-1008, eff. 1-1-15; 99-78,
22eff. 7-20-15; 99-143, eff. 7-27-15.)
 
23    (105 ILCS 5/14-7.02b)
24    Sec. 14-7.02b. Funding for children requiring special
25education services. Payments to school districts for children

 

 

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1requiring special education services documented in their
2individualized education program regardless of the program
3from which these services are received, excluding children
4claimed under Sections 14-7.02 and 14-7.03 of this Code, shall
5be made in accordance with this Section. Funds received under
6this Section may be used only for the provision of special
7educational facilities and services as defined in Section
814-1.08 of this Code.
9    The appropriation for fiscal year 2005 through fiscal year
102016 and thereafter shall be based upon the IDEA child count of
11all students in the State, excluding students claimed under
12Sections 14-7.02 and 14-7.03 of this Code, on December 1 of the
13fiscal year 2 years preceding, multiplied by 17.5% of the
14general State aid foundation level of support established for
15that fiscal year under Section 18-8.05 of this Code.
16    Beginning with fiscal year 2005 and through fiscal year
172007, individual school districts shall not receive payments
18under this Section totaling less than they received under the
19funding authorized under Section 14-7.02a of this Code during
20fiscal year 2004, pursuant to the provisions of Section
2114-7.02a as they were in effect before the effective date of
22this amendatory Act of the 93rd General Assembly. This base
23level funding shall be computed first.
24    Beginning with fiscal year 2008 through fiscal year 2016
25and each fiscal year thereafter, individual school districts
26must not receive payments under this Section totaling less than

 

 

09900SB0231sam001- 272 -LRB099 03162 NHT 47157 a

1they received in fiscal year 2007. This funding shall be
2computed last and shall be a separate calculation from any
3other calculation set forth in this Section. This amount is
4exempt from the requirements of Section 1D-1 of this Code.
5    Through fiscal year 2016, an An amount equal to 85% of the
6funds remaining in the appropriation shall be allocated to
7school districts based upon the district's average daily
8attendance reported for purposes of Section 18-8.05 of this
9Code for the preceding school year. Fifteen percent of the
10funds remaining in the appropriation shall be allocated to
11school districts based upon the district's low income eligible
12pupil count used in the calculation of general State aid under
13Section 18-8.05 of this Code for the same fiscal year. One
14hundred percent of the funds computed and allocated to
15districts under this Section shall be distributed and paid to
16school districts.
17    For individual students with disabilities whose program
18costs exceed 4 times the district's per capita tuition rate as
19calculated under Section 10-20.12a of this Code, the costs in
20excess of 4 times the district's per capita tuition rate shall
21be paid by the State Board of Education from unexpended IDEA
22discretionary funds originally designated for room and board
23reimbursement pursuant to Section 14-8.01 of this Code. The
24amount of tuition for these children shall be determined by the
25actual cost of maintaining classes for these children, using
26the per capita cost formula set forth in Section 14-7.01 of

 

 

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1this Code, with the program and cost being pre-approved by the
2State Superintendent of Education. Reimbursement for
3individual students with disabilities whose program costs
4exceed 4 times the district's per capita tuition rate shall be
5claimed beginning with costs encumbered for the 2004-2005
6school year and thereafter.
7    The State Board of Education shall prepare vouchers equal
8to one-fourth the amount allocated to districts, for
9transmittal to the State Comptroller on the 30th day of
10September, December, and March, respectively, and the final
11voucher, no later than June 20. The Comptroller shall make
12payments pursuant to this Section to school districts as soon
13as possible after receipt of vouchers. If the money
14appropriated from the General Assembly for such purposes for
15any year is insufficient, it shall be apportioned on the basis
16of the payments due to school districts.
17    Nothing in this Section shall be construed to decrease or
18increase the percentage of all special education funds that are
19allocated annually under Article 1D of this Code or to alter
20the requirement that a school district provide special
21education services.
22    Nothing in this amendatory Act of the 93rd General Assembly
23shall eliminate any reimbursement obligation owed as of the
24effective date of this amendatory Act of the 93rd General
25Assembly to a school district with in excess of 500,000
26inhabitants.

 

 

09900SB0231sam001- 274 -LRB099 03162 NHT 47157 a

1    Except for reimbursement for individual students with
2disabilities whose program costs exceed 4 times the district's
3per capita tuition rate, no funding shall be provided to school
4districts under this Section after fiscal year 2016.
5(Source: P.A. 93-1022, eff. 8-24-08; 95-705, eff. 1-8-08.)
 
6    (105 ILCS 5/14-7.03)  (from Ch. 122, par. 14-7.03)
7    Sec. 14-7.03. Special Education Classes for Children from
8Orphanages, Foster Family Homes, Children's Homes, or in State
9Housing Units. If a school district maintains special education
10classes on the site of orphanages and children's homes, or if
11children from the orphanages, children's homes, foster family
12homes, other State agencies, or State residential units for
13children attend classes for children with disabilities in which
14the school district is a participating member of a joint
15agreement, or if the children from the orphanages, children's
16homes, foster family homes, other State agencies, or State
17residential units attend classes for the children with
18disabilities maintained by the school district, then
19reimbursement shall be paid to eligible districts in accordance
20with the provisions of this Section by the Comptroller as
21directed by the State Superintendent of Education.
22    The amount of tuition for such children shall be determined
23by the actual cost of maintaining such classes, using the per
24capita cost formula set forth in Section 14-7.01, such program
25and cost to be pre-approved by the State Superintendent of

 

 

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1Education.
2    If a school district makes a claim for reimbursement under
3Section 18-3 or 18-4 of this Code, Act it shall not include in
4any claim filed under this Section a claim for such children.
5Payments authorized by law, including State or federal grants
6for education of children included in this Section, shall be
7deducted in determining the tuition amount.
8    Nothing in this Act shall be construed so as to prohibit
9reimbursement for the tuition of children placed in for profit
10facilities. Private facilities shall provide adequate space at
11the facility for special education classes provided by a school
12district or joint agreement for children with disabilities who
13are residents of the facility at no cost to the school district
14or joint agreement upon request of the school district or joint
15agreement. If such a private facility provides space at no cost
16to the district or joint agreement for special education
17classes provided to children with disabilities who are
18residents of the facility, the district or joint agreement
19shall not include any costs for the use of those facilities in
20its claim for reimbursement.
21    Reimbursement for tuition may include the cost of providing
22summer school programs for children with severe and profound
23disabilities served under this Section. Claims for that
24reimbursement shall be filed by November 1 and shall be paid on
25or before December 15 from appropriations made for the purposes
26of this Section.

 

 

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

 

 

09900SB0231sam001- 277 -LRB099 03162 NHT 47157 a

1calculated from the prior year's claim. Final claims for
2individual students for the regular school term must be
3received at the State Board of Education by July 15. Claims for
4individual students received after July 15 shall not be
5honored. Final claims for individual students shall be
6vouchered by August 30.
7    Reimbursement shall be made based upon approved group
8programs or individual students. The State Superintendent of
9Education shall direct the Comptroller to pay a specified
10amount to the district by the 30th day of September, December,
11March, June, or August, respectively. However, notwithstanding
12any other provisions of this Section or the School Code,
13beginning with fiscal year 1994 and each fiscal year
14thereafter, if the amount appropriated for any fiscal year is
15less than the amount required for purposes of this Section, the
16amount required to eliminate any insufficient reimbursement
17for each district claim under this Section shall be reimbursed
18on August 30 of the next fiscal year. Payments required to
19eliminate any insufficiency for prior fiscal year claims shall
20be made before any claims are paid for the current fiscal year.
21    The claim of a school district otherwise eligible to be
22reimbursed in accordance with Section 14-12.01 for the 1976-77
23school year but for this amendatory Act of 1977 shall not be
24paid unless the district ceases to maintain such classes for
25one entire school year.
26    If a school district's current reimbursement payment for

 

 

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1the 1977-78 school year only is less than the prior year's
2reimbursement payment owed, the district shall be paid the
3amount of the difference between the payments in addition to
4the current reimbursement payment, and the amount so paid shall
5be subtracted from the amount of prior year's reimbursement
6payment owed to the district.
7    Regional superintendents may operate special education
8classes for children from orphanages, foster family homes,
9children's homes, or State housing units located within the
10educational services region upon consent of the school board
11otherwise so obligated. In electing to assume the powers and
12duties of a school district in providing and maintaining such a
13special education program, the regional superintendent may
14enter into joint agreements with other districts and may
15contract with public or private schools or the orphanage,
16foster family home, children's home, or State housing unit for
17provision of the special education program. The regional
18superintendent exercising the powers granted under this
19Section shall claim the reimbursement authorized by this
20Section directly from the State Board of Education.
21    Any child who is not a resident of Illinois who is placed
22in a child welfare institution, private facility, foster family
23home, State operated program, orphanage, or children's home
24shall have the payment for his educational tuition and any
25related services assured by the placing agent.
26    For each student with a disability who is placed in a

 

 

09900SB0231sam001- 279 -LRB099 03162 NHT 47157 a

1residential facility by an Illinois public agency or by any
2court in this State, the costs for educating the student are
3eligible for reimbursement under this Section.
4    The district of residence of the student with a disability
5as defined in Section 14-1.11a is responsible for the actual
6costs of the student's special education program and is
7eligible for reimbursement under this Section when placement is
8made by a State agency or the courts.
9    When a dispute arises over the determination of the
10district of residence under this Section, the district or
11districts may appeal the decision in writing to the State
12Superintendent of Education, who, upon review of materials
13submitted and any other items or information he or she may
14request for submission, shall issue a written decision on the
15matter. The decision of the State Superintendent of Education
16shall be final.
17    In the event a district does not make a tuition payment to
18another district that is providing the special education
19program and services, the State Board of Education shall
20immediately withhold 125% of the then remaining annual tuition
21cost from the State aid or categorical aid payment due to the
22school district that is determined to be the resident school
23district. All funds withheld by the State Board of Education
24shall immediately be forwarded to the school district where the
25student is being served.
26    When a child eligible for services under this Section

 

 

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114-7.03 must be placed in a nonpublic facility, that facility
2shall meet the programmatic requirements of Section 14-7.02 and
3its regulations, and the educational services shall be funded
4only in accordance with this Section 14-7.03.
5(Source: P.A. 98-739, eff. 7-16-14; 99-143, eff. 7-27-15.)
 
6    (105 ILCS 5/14-13.01)  (from Ch. 122, par. 14-13.01)
7    Sec. 14-13.01. Reimbursement payable by State; amounts for
8personnel and transportation.
9    (a) Through fiscal year 2016, for For staff working on
10behalf of children who have not been identified as eligible for
11special education and for eligible children with physical
12disabilities, including all eligible children whose placement
13has been determined under Section 14-8.02 in hospital or home
14instruction, 1/2 of the teacher's salary but not more than
15$1,000 annually per child or $9,000 per teacher, whichever is
16less.
17    (a-5) A child qualifies for home or hospital instruction if
18it is anticipated that, due to a medical condition, the child
19will be unable to attend school, and instead must be instructed
20at home or in the hospital, for a period of 2 or more
21consecutive weeks or on an ongoing intermittent basis. For
22purposes of this Section, "ongoing intermittent basis" means
23that the child's medical condition is of such a nature or
24severity that it is anticipated that the child will be absent
25from school due to the medical condition for periods of at

 

 

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1least 2 days at a time multiple times during the school year
2totaling at least 10 days or more of absences. There shall be
3no requirement that a child be absent from school a minimum
4number of days before the child qualifies for home or hospital
5instruction. In order to establish eligibility for home or
6hospital services, a student's parent or guardian must submit
7to the child's school district of residence a written statement
8from a physician licensed to practice medicine in all of its
9branches stating the existence of such medical condition, the
10impact on the child's ability to participate in education, and
11the anticipated duration or nature of the child's absence from
12school. Home or hospital instruction may commence upon receipt
13of a written physician's statement in accordance with this
14Section, but instruction shall commence not later than 5 school
15days after the school district receives the physician's
16statement. Special education and related services required by
17the child's IEP or services and accommodations required by the
18child's federal Section 504 plan must be implemented as part of
19the child's home or hospital instruction, unless the IEP team
20or federal Section 504 plan team determines that modifications
21are necessary during the home or hospital instruction due to
22the child's condition.
23    (a-10) Through fiscal year 2016, eligible Eligible
24children to be included in any reimbursement under this
25paragraph must regularly receive a minimum of one hour of
26instruction each school day, or in lieu thereof of a minimum of

 

 

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15 hours of instruction in each school week in order to qualify
2for full reimbursement under this Section. If the attending
3physician for such a child has certified that the child should
4not receive as many as 5 hours of instruction in a school week,
5however, reimbursement under this paragraph on account of that
6child shall be computed proportionate to the actual hours of
7instruction per week for that child divided by 5.
8    (a-15) The State Board of Education shall establish rules
9governing the required qualifications of staff providing home
10or hospital instruction.
11    (b) For children described in Section 14-1.02, 80% of the
12cost of transportation approved as a related service in the
13Individualized Education Program for each student in order to
14take advantage of special educational facilities.
15Transportation costs shall be determined in the same fashion as
16provided in Section 29-5 of this Code, provided that,
17notwithstanding anything to the contrary contained in this
18subsection (b) or Section 29-5 of this Code, the State Board of
19Education shall award to a school district having a population
20exceeding 500,000 inhabitants 30.7% of the funds appropriated
21by the General Assembly for any fiscal year for purposes of
22payment of transportation cost claims under this subsection
23(b). For purposes of this subsection (b), the dates for
24processing claims specified in Section 29-5 shall apply.
25    (c) Through fiscal year 2016, for For each qualified
26worker, the annual sum of $9,000.

 

 

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1    (d) Through fiscal year 2016, for For one full time
2qualified director of the special education program of each
3school district which maintains a fully approved program of
4special education the annual sum of $9,000. Districts
5participating in a joint agreement special education program
6shall not receive such reimbursement if reimbursement is made
7for a director of the joint agreement program.
8    (e) (Blank).
9    (f) (Blank).
10    (g) Through fiscal year 2016, for For readers, working with
11blind or partially seeing children 1/2 of their salary but not
12more than $400 annually per child. Readers may be employed to
13assist such children and shall not be required to be certified
14but prior to employment shall meet standards set up by the
15State Board of Education.
16    (h) Through fiscal year 2016, for For non-certified
17employees, as defined by rules promulgated by the State Board
18of Education, who deliver services to students with IEPs, 1/2
19of the salary paid or $3,500 per employee, whichever is less.
20    (i) The State Board of Education shall set standards and
21prescribe rules for determining the allocation of
22reimbursement under this section on less than a full time basis
23and for less than a school year.
24    When any school district eligible for reimbursement under
25this Section operates a school or program approved by the State
26Superintendent of Education for a number of days in excess of

 

 

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1the adopted school calendar but not to exceed 235 school days,
2such reimbursement shall be increased by 1/180 of the amount or
3rate paid hereunder for each day such school is operated in
4excess of 180 days per calendar year.
5    Notwithstanding any other provision of law, any school
6district receiving a payment under this Section or under
7Section 14-7.02, 14-7.02b, or 29-5 of this Code may classify
8all or a portion of the funds that it receives in a particular
9fiscal year or from primary general State aid pursuant to
10Section 18-8.15 18-8.05 of this Code as funds received in
11connection with any funding program for which it is entitled to
12receive funds from the State in that fiscal year (including,
13without limitation, any funding program referenced in this
14Section), regardless of the source or timing of the receipt.
15The district may not classify more funds as funds received in
16connection with the funding program than the district is
17entitled to receive in that fiscal year for that program. Any
18classification by a district must be made by a resolution of
19its board of education. The resolution must identify the amount
20of any payments or primary general State aid to be classified
21under this paragraph and must specify the funding program to
22which the funds are to be treated as received in connection
23therewith. This resolution is controlling as to the
24classification of funds referenced therein. A certified copy of
25the resolution must be sent to the State Superintendent of
26Education. The resolution shall still take effect even though a

 

 

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1copy of the resolution has not been sent to the State
2Superintendent of Education in a timely manner. No
3classification under this paragraph by a district shall affect
4the total amount or timing of money the district is entitled to
5receive under this Code. No classification under this paragraph
6by a district shall in any way relieve the district from or
7affect any requirements that otherwise would apply with respect
8to that funding program, including any accounting of funds by
9source, reporting expenditures by original source and purpose,
10reporting requirements, or requirements of providing services.
11(Source: P.A. 96-257, eff. 8-11-09; 97-123, eff. 7-14-11.)
 
12    (105 ILCS 5/14C-1)  (from Ch. 122, par. 14C-1)
13    Sec. 14C-1. The General Assembly finds that there are large
14numbers of children in this State who come from environments
15where the primary language is other than English. Experience
16has shown that public school classes in which instruction is
17given only in English are often inadequate for the education of
18children whose native tongue is another language. The General
19Assembly believes that a program of transitional bilingual
20education can meet the needs of these children and facilitate
21their integration into the regular public school curriculum.
22Therefore, pursuant to the policy of this State to ensure equal
23educational opportunity to every child, and in recognition of
24the educational needs of English learners, it is the purpose of
25this Act to provide for the establishment of transitional

 

 

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1bilingual education programs in the public schools, to provide
2supplemental financial assistance through fiscal year 2016 to
3help local school districts meet the extra costs of such
4programs, and to allow this State to directly or indirectly
5provide technical assistance and professional development to
6support transitional bilingual education programs statewide.
7(Source: P.A. 99-30, eff. 7-10-15.)
 
8    (105 ILCS 5/14C-12)  (from Ch. 122, par. 14C-12)
9    Sec. 14C-12. Account of expenditures; Cost report;
10Reimbursement. Each school district with at least one English
11learner shall keep an accurate, detailed and separate account
12of all monies paid out by it for the programs in transitional
13bilingual education required or permitted by this Article,
14including transportation costs, and shall annually report
15thereon for the school year ending June 30 indicating the
16average per pupil expenditure. Through fiscal year 2016, each
17Each school district shall be reimbursed for the amount by
18which such costs exceed the average per pupil expenditure by
19such school district for the education of children of
20comparable age who are not in any special education program. No
21funding shall be provided to school districts under this
22Section after fiscal year 2016. In fiscal year 2017 and each
23fiscal year thereafter, all funding received by a school
24district from the State pursuant to Section 18-8.15 of this
25Code that is attributable to English learner pupils must be

 

 

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1used for programs and services authorized under this Article.
2At least 60% of transitional bilingual education funding
3received from the State must be used for the instructional
4costs of programs and services authorized under this Article
5transitional bilingual education.
6    Applications for preapproval for reimbursement for costs
7of transitional bilingual education programs must be submitted
8to the State Superintendent of Education at least 60 days
9before a transitional bilingual education program is started,
10unless a justifiable exception is granted by the State
11Superintendent of Education. Applications shall set forth a
12plan for transitional bilingual education established and
13maintained in accordance with this Article.
14    Through fiscal year 2016, reimbursement Reimbursement
15claims for transitional bilingual education programs shall be
16made as follows:
17    Each school district shall claim reimbursement on a current
18basis for the first 3 quarters of the fiscal year and file a
19final adjusted claim for the school year ended June 30
20preceding computed in accordance with rules prescribed by the
21State Superintendent's Office. The State Superintendent of
22Education before approving any such claims shall determine
23their accuracy and whether they are based upon services and
24facilities provided under approved programs. Upon approval he
25shall transmit to the Comptroller the vouchers showing the
26amounts due for school district reimbursement claims. Upon

 

 

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1receipt of the final adjusted claims the State Superintendent
2of Education shall make a final determination of the accuracy
3of such claims. If the money appropriated by the General
4Assembly for such purpose for any year is insufficient, it
5shall be apportioned on the basis of the claims approved.
6    Failure on the part of the school district to prepare and
7certify the final adjusted claims due under this Section may
8constitute a forfeiture by the school district of its right to
9be reimbursed by the State under this Section.
10(Source: P.A. 96-1170, eff. 1-1-11.)
 
11    (105 ILCS 5/17-1)  (from Ch. 122, par. 17-1)
12    Sec. 17-1. Annual Budget. The board of education of each
13school district under 500,000 inhabitants shall, within or
14before the first quarter of each fiscal year, adopt and file
15with the State Board of Education an annual balanced budget
16which it deems necessary to defray all necessary expenses and
17liabilities of the district, and in such annual budget shall
18specify the objects and purposes of each item and amount needed
19for each object or purpose.
20    The budget shall be entered upon a School District Budget
21form prepared and provided by the State Board of Education and
22therein shall contain a statement of the cash on hand at the
23beginning of the fiscal year, an estimate of the cash expected
24to be received during such fiscal year from all sources, an
25estimate of the expenditures contemplated for such fiscal year,

 

 

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1and a statement of the estimated cash expected to be on hand at
2the end of such year. The estimate of taxes to be received may
3be based upon the amount of actual cash receipts that may
4reasonably be expected by the district during such fiscal year,
5estimated from the experience of the district in prior years
6and with due regard for other circumstances that may
7substantially affect such receipts. Nothing in this Section
8shall be construed as requiring any district to change or
9preventing any district from changing from a cash basis of
10financing to a surplus or deficit basis of financing; or as
11requiring any district to change or preventing any district
12from changing its system of accounting. For the 2018-2019
13school year and thereafter, the budget shall conform to the
14school level accounting requirements adopted by the State Board
15of Education pursuant to Section 2-3.28 of this Code.
16    To the extent that a school district's budget is not
17balanced, the district shall also adopt and file with the State
18Board of Education a deficit reduction plan to balance the
19district's budget within 3 years. The deficit reduction plan
20must be filed at the same time as the budget, but the State
21Superintendent of Education may extend this deadline if the
22situation warrants.
23    If, as the result of an audit performed in compliance with
24Section 3-7 of this Code, the resulting Annual Financial Report
25required to be submitted pursuant to Section 3-15.1 of this
26Code reflects a deficit as defined for purposes of the

 

 

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1preceding paragraph, then the district shall, within 30 days
2after acceptance of such audit report, submit a deficit
3reduction plan.
4    The board of education of each district shall fix a fiscal
5year therefor. If the beginning of the fiscal year of a
6district is subsequent to the time that the tax levy due to be
7made in such fiscal year shall be made, then such annual budget
8shall be adopted prior to the time such tax levy shall be made.
9The failure by a board of education of any district to adopt an
10annual budget, or to comply in any respect with the provisions
11of this Section, shall not affect the validity of any tax levy
12of the district otherwise in conformity with the law. With
13respect to taxes levied either before, on, or after the
14effective date of this amendatory Act of the 91st General
15Assembly, (i) a tax levy is made for the fiscal year in which
16the levy is due to be made regardless of which fiscal year the
17proceeds of the levy are expended or are intended to be
18expended, and (ii) except as otherwise provided by law, a board
19of education's adoption of an annual budget in conformity with
20this Section is not a prerequisite to the adoption of a valid
21tax levy and is not a limit on the amount of the levy.
22    Such budget shall be prepared in tentative form by some
23person or persons designated by the board, and in such
24tentative form shall be made conveniently available to public
25inspection for at least 30 days prior to final action thereon.
26At least 1 public hearing shall be held as to such budget prior

 

 

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1to final action thereon. Notice of availability for public
2inspection and of such public hearing shall be given by
3publication in a newspaper published in such district, at least
430 days prior to the time of such hearing. If there is no
5newspaper published in such district, notice of such public
6hearing shall be given by posting notices thereof in 5 of the
7most public places in such district. It shall be the duty of
8the secretary of such board to make such tentative budget
9available to public inspection, and to arrange for such public
10hearing. The board may from time to time make transfers between
11the various items in any fund not exceeding in the aggregate
1210% of the total of such fund as set forth in the budget. The
13board may from time to time amend such budget by the same
14procedure as is herein provided for its original adoption.
15    Beginning July 1, 1976, the board of education, or regional
16superintendent, or governing board responsible for the
17administration of a joint agreement shall, by September 1 of
18each fiscal year thereafter, adopt an annual budget for the
19joint agreement in the same manner and subject to the same
20requirements as are provided in this Section.
21    The State Board of Education shall exercise powers and
22duties relating to budgets as provided in Section 2-3.27 of
23this Code and shall require school districts to submit their
24annual budgets, deficit reduction plans, and other financial
25information, including revenue and expenditure reports and
26borrowing and interfund transfer plans, in such form and within

 

 

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1the timelines designated by the State Board of Education.
2    By fiscal year 1982 all school districts shall use the
3Program Budget Accounting System.
4    In the case of a school district receiving emergency State
5financial assistance under Article 1B, the school board shall
6also be subject to the requirements established under Article
71B with respect to the annual budget.
8(Source: P.A. 97-429, eff. 8-16-11.)
 
9    (105 ILCS 5/17-1.2)
10    Sec. 17-1.2. Post annual budget on web site. If a school
11district has an Internet web site, the school district shall
12post its current annual budget, itemized by receipts and
13expenditures, on the district's Internet web site. For the
142018-2019 school year and thereafter, the budget shall include
15school level information conforming to the rules adopted by the
16State Board of Education pursuant to Section 2-3.28 of this
17Code. The school district shall notify the parents or guardians
18of its students that the budget has been posted on the
19district's web site and what the web site's address is.
20(Source: P.A. 92-438, eff. 1-1-02.)
 
21    (105 ILCS 5/17-1.5)
22    Sec. 17-1.5. Limitation of administrative costs.
23    (a) It is the purpose of this Section to establish
24limitations on the growth of administrative expenditures in

 

 

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1order to maximize the proportion of school district resources
2available for the instructional program, building maintenance,
3and safety services for the students of each district.
4    (b) Definitions. For the purposes of this Section:
5    "Administrative expenditures" mean the annual expenditures
6of school districts properly attributable to expenditure
7functions defined by the rules of the State Board of Education
8as: 2320 (Executive Administration Services); 2330 (Special
9Area Administration Services); 2490 (Other Support Services -
10School Administration); 2510 (Direction of Business Support
11Services); 2570 (Internal Services); and 2610 (Direction of
12Central Support Services); provided, however, that
13"administrative expenditures" shall not include early
14retirement or other pension system obligations required by
15State law.
16    "School district" means all school districts having a
17population of less than 500,000.
18    (c) For the 1998-99 school year and each school year
19thereafter, each school district shall undertake budgetary and
20expenditure control actions so that the increase in
21administrative expenditures for that school year over the prior
22school year does not exceed 5%. School districts with
23administrative expenditures per pupil in the 25th percentile
24and below for all districts of the same type, as defined by the
25State Board of Education, may waive the limitation imposed
26under this Section for any year following a public hearing and

 

 

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1with the affirmative vote of at least two-thirds of the members
2of the school board of the district. Any district waiving the
3limitation shall notify the State Board within 45 days of such
4action.
5    (d) School districts shall file with the State Board of
6Education by November 15, 1998 and by each November 15th
7thereafter a one-page report that lists (i) the actual
8administrative expenditures for the prior year from the
9district's audited Annual Financial Report, and (ii) the
10projected administrative expenditures for the current year
11from the budget adopted by the school board pursuant to Section
1217-1 of this Code.
13    If a school district that is ineligible to waive the
14limitation imposed by subsection (c) of this Section by board
15action exceeds the limitation solely because of circumstances
16beyond the control of the district and the district has
17exhausted all available and reasonable remedies to comply with
18the limitation, the district may request a waiver pursuant to
19Section 2-3.25g. The waiver application shall specify the
20amount, nature, and reason for the relief requested, as well as
21all remedies the district has exhausted to comply with the
22limitation. Any emergency relief so requested shall apply only
23to the specific school year for which the request is made. The
24State Board of Education shall analyze all such waivers
25submitted and shall recommend that the General Assembly
26disapprove any such waiver requested that is not due solely to

 

 

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1circumstances beyond the control of the district and for which
2the district has not exhausted all available and reasonable
3remedies to comply with the limitation. The State
4Superintendent shall have no authority to impose any sanctions
5pursuant to this Section for any expenditures for which a
6waiver has been requested until such waiver has been reviewed
7by the General Assembly.
8    If the report and information required under this
9subsection (d) are not provided by the school district in a
10timely manner, or are subsequently determined by the State
11Superintendent of Education to be incomplete or inaccurate, the
12State Superintendent shall notify the district in writing of
13reporting deficiencies. The school district shall, within 60
14days of the notice, address the reporting deficiencies
15identified.
16    (e) If the State Superintendent determines that a school
17district has failed to comply with the administrative
18expenditure limitation imposed in subsection (c) of this
19Section, the State Superintendent shall notify the district of
20the violation and direct the district to undertake corrective
21action to bring the district's budget into compliance with the
22administrative expenditure limitation. The district shall,
23within 60 days of the notice, provide adequate assurance to the
24State Superintendent that appropriate corrective actions have
25been or will be taken. If the district fails to provide
26adequate assurance or fails to undertake the necessary

 

 

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1corrective actions, the State Superintendent may impose
2progressive sanctions against the district that may culminate
3in withholding all subsequent payments of general State aid due
4the district under Section 18-8.05 of this Code or primary
5State aid due the district under Section 18-8.15 of this Code
6until the assurance is provided or the corrective actions
7taken.
8    (f) The State Superintendent shall publish a list each year
9of the school districts that violate the limitation imposed by
10subsection (c) of this Section and a list of the districts that
11waive the limitation by board action as provided in subsection
12(c) of this Section.
13(Source: P.A. 90-548, eff. 1-1-98; 90-653, eff. 7-29-98.)
 
14    (105 ILCS 5/17-2.11)  (from Ch. 122, par. 17-2.11)
15    Sec. 17-2.11. School board power to levy a tax or to borrow
16money and issue bonds for fire prevention, safety, energy
17conservation, accessibility, school security, and specified
18repair purposes.
19    (a) Whenever, as a result of any lawful order of any
20agency, other than a school board, having authority to enforce
21any school building code applicable to any facility that houses
22students, or any law or regulation for the protection and
23safety of the environment, pursuant to the Environmental
24Protection Act, any school district having a population of less
25than 500,000 inhabitants is required to alter or reconstruct

 

 

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1any school building or permanent, fixed equipment; the district
2may, by proper resolution, levy a tax for the purpose of making
3such alteration or reconstruction, based on a survey report by
4an architect or engineer licensed in this State, upon all of
5the taxable property of the district at the value as assessed
6by the Department of Revenue and at a rate not to exceed 0.05%
7per year for a period sufficient to finance such alteration or
8reconstruction, upon the following conditions:
9        (1) When there are not sufficient funds available in
10    the operations and maintenance fund of the school district,
11    the school facility occupation tax fund of the district, or
12    the fire prevention and safety fund of the district, as
13    determined by the district on the basis of rules adopted by
14    the State Board of Education, to make such alteration or
15    reconstruction or to purchase and install such permanent,
16    fixed equipment so ordered or determined as necessary.
17    Appropriate school district records must be made available
18    to the State Superintendent of Education, upon request, to
19    confirm this insufficiency.
20        (2) When a certified estimate of an architect or
21    engineer licensed in this State stating the estimated
22    amount necessary to make the alteration or reconstruction
23    or to purchase and install the equipment so ordered has
24    been secured by the school district, and the estimate has
25    been approved by the regional superintendent of schools
26    having jurisdiction over the district and the State

 

 

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1    Superintendent of Education. Approval must not be granted
2    for any work that has already started without the prior
3    express authorization of the State Superintendent of
4    Education. If the estimate is not approved or is denied
5    approval by the regional superintendent of schools within 3
6    months after the date on which it is submitted to him or
7    her, the school board of the district may submit the
8    estimate directly to the State Superintendent of Education
9    for approval or denial.
10    In the case of an emergency situation, where the estimated
11cost to effectuate emergency repairs is less than the amount
12specified in Section 10-20.21 of this Code, the school district
13may proceed with such repairs prior to approval by the State
14Superintendent of Education, but shall comply with the
15provisions of subdivision (2) of this subsection (a) as soon
16thereafter as may be as well as Section 10-20.21 of this Code.
17If the estimated cost to effectuate emergency repairs is
18greater than the amount specified in Section 10-20.21 of this
19Code, then the school district shall proceed in conformity with
20Section 10-20.21 of this Code and with rules established by the
21State Board of Education to address such situations. The rules
22adopted by the State Board of Education to deal with these
23situations shall stipulate that emergency situations must be
24expedited and given priority consideration. For purposes of
25this paragraph, an emergency is a situation that presents an
26imminent and continuing threat to the health and safety of

 

 

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1students or other occupants of a facility, requires complete or
2partial evacuation of a building or part of a building, or
3consumes one or more of the 5 emergency days built into the
4adopted calendar of the school or schools or would otherwise be
5expected to cause such school or schools to fall short of the
6minimum school calendar requirements.
7    (b) Whenever any such district determines that it is
8necessary for energy conservation purposes that any school
9building or permanent, fixed equipment should be altered or
10reconstructed and that such alterations or reconstruction will
11be made with funds not necessary for the completion of approved
12and recommended projects contained in any safety survey report
13or amendments thereto authorized by Section 2-3.12 of this Act;
14the district may levy a tax or issue bonds as provided in
15subsection (a) of this Section.
16    (c) Whenever any such district determines that it is
17necessary for accessibility purposes and to comply with the
18school building code that any school building or equipment
19should be altered or reconstructed and that such alterations or
20reconstruction will be made with funds not necessary for the
21completion of approved and recommended projects contained in
22any safety survey report or amendments thereto authorized under
23Section 2-3.12 of this Act, the district may levy a tax or
24issue bonds as provided in subsection (a) of this Section.
25    (d) Whenever any such district determines that it is
26necessary for school security purposes and the related

 

 

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1protection and safety of pupils and school personnel that any
2school building or property should be altered or reconstructed
3or that security systems and equipment (including but not
4limited to intercom, early detection and warning, access
5control and television monitoring systems) should be purchased
6and installed, and that such alterations, reconstruction or
7purchase and installation of equipment will be made with funds
8not necessary for the completion of approved and recommended
9projects contained in any safety survey report or amendment
10thereto authorized by Section 2-3.12 of this Act and will deter
11and prevent unauthorized entry or activities upon school
12property by unknown or dangerous persons, assure early
13detection and advance warning of any such actual or attempted
14unauthorized entry or activities and help assure the continued
15safety of pupils and school staff if any such unauthorized
16entry or activity is attempted or occurs; the district may levy
17a tax or issue bonds as provided in subsection (a) of this
18Section.
19    (e) If a school district does not need funds for other fire
20prevention and safety projects, including the completion of
21approved and recommended projects contained in any safety
22survey report or amendments thereto authorized by Section
232-3.12 of this Act, and it is determined after a public hearing
24(which is preceded by at least one published notice (i)
25occurring at least 7 days prior to the hearing in a newspaper
26of general circulation within the school district and (ii)

 

 

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1setting forth the time, date, place, and general subject matter
2of the hearing) that there is a substantial, immediate, and
3otherwise unavoidable threat to the health, safety, or welfare
4of pupils due to disrepair of school sidewalks, playgrounds,
5parking lots, or school bus turnarounds and repairs must be
6made; then the district may levy a tax or issue bonds as
7provided in subsection (a) of this Section.
8    (f) For purposes of this Section a school district may
9replace a school building or build additions to replace
10portions of a building when it is determined that the
11effectuation of the recommendations for the existing building
12will cost more than the replacement costs. Such determination
13shall be based on a comparison of estimated costs made by an
14architect or engineer licensed in the State of Illinois. The
15new building or addition shall be equivalent in area (square
16feet) and comparable in purpose and grades served and may be on
17the same site or another site. Such replacement may only be
18done upon order of the regional superintendent of schools and
19the approval of the State Superintendent of Education.
20    (g) The filing of a certified copy of the resolution
21levying the tax when accompanied by the certificates of the
22regional superintendent of schools and State Superintendent of
23Education shall be the authority of the county clerk to extend
24such tax.
25    (h) The county clerk of the county in which any school
26district levying a tax under the authority of this Section is

 

 

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1located, in reducing raised levies, shall not consider any such
2tax as a part of the general levy for school purposes and shall
3not include the same in the limitation of any other tax rate
4which may be extended.
5    Such tax shall be levied and collected in like manner as
6all other taxes of school districts, subject to the provisions
7contained in this Section.
8    (i) The tax rate limit specified in this Section may be
9increased to .10% upon the approval of a proposition to effect
10such increase by a majority of the electors voting on that
11proposition at a regular scheduled election. Such proposition
12may be initiated by resolution of the school board and shall be
13certified by the secretary to the proper election authorities
14for submission in accordance with the general election law.
15    (j) When taxes are levied by any school district for fire
16prevention, safety, energy conservation, and school security
17purposes as specified in this Section, and the purposes for
18which the taxes have been levied are accomplished and paid in
19full, and there remain funds on hand in the Fire Prevention and
20Safety Fund from the proceeds of the taxes levied, including
21interest earnings thereon, the school board by resolution shall
22use such excess and other board restricted funds, excluding
23bond proceeds and earnings from such proceeds, as follows:
24        (1) for other authorized fire prevention, safety,
25    energy conservation, and school security purposes and for
26    required safety inspections; or

 

 

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1        (2) for transfer to the Operations and Maintenance Fund
2    for the purpose of abating an equal amount of operations
3    and maintenance purposes taxes.
4Notwithstanding subdivision (2) of this subsection (j) and
5subsection (k) of this Section, through June 30, 2019 2016, the
6school board may, by proper resolution following a public
7hearing set by the school board or the president of the school
8board (that is preceded (i) by at least one published notice
9over the name of the clerk or secretary of the board, occurring
10at least 7 days and not more than 30 days prior to the hearing,
11in a newspaper of general circulation within the school
12district and (ii) by posted notice over the name of the clerk
13or secretary of the board, at least 48 hours before the
14hearing, at the principal office of the school board or at the
15building where the hearing is to be held if a principal office
16does not exist, with both notices setting forth the time, date,
17place, and subject matter of the hearing), transfer surplus
18life safety taxes and interest earnings thereon to the
19Operations and Maintenance Fund for building repair work.
20    (k) If any transfer is made to the Operation and
21Maintenance Fund, the secretary of the school board shall
22within 30 days notify the county clerk of the amount of that
23transfer and direct the clerk to abate the taxes to be extended
24for the purposes of operations and maintenance authorized under
25Section 17-2 of this Act by an amount equal to such transfer.
26    (l) If the proceeds from the tax levy authorized by this

 

 

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1Section are insufficient to complete the work approved under
2this Section, the school board is authorized to sell bonds
3without referendum under the provisions of this Section in an
4amount that, when added to the proceeds of the tax levy
5authorized by this Section, will allow completion of the
6approved work.
7    (m) Any bonds issued pursuant to this Section shall bear
8interest at a rate not to exceed the maximum rate authorized by
9law at the time of the making of the contract, shall mature
10within 20 years from date, and shall be signed by the president
11of the school board and the treasurer of the school district.
12    (n) In order to authorize and issue such bonds, the school
13board shall adopt a resolution fixing the amount of bonds, the
14date thereof, the maturities thereof, rates of interest
15thereof, place of payment and denomination, which shall be in
16denominations of not less than $100 and not more than $5,000,
17and provide for the levy and collection of a direct annual tax
18upon all the taxable property in the school district sufficient
19to pay the principal and interest on such bonds to maturity.
20Upon the filing in the office of the county clerk of the county
21in which the school district is located of a certified copy of
22the resolution, it is the duty of the county clerk to extend
23the tax therefor in addition to and in excess of all other
24taxes heretofore or hereafter authorized to be levied by such
25school district.
26    (o) After the time such bonds are issued as provided for by

 

 

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1this Section, if additional alterations or reconstructions are
2required to be made because of surveys conducted by an
3architect or engineer licensed in the State of Illinois, the
4district may levy a tax at a rate not to exceed .05% per year
5upon all the taxable property of the district or issue
6additional bonds, whichever action shall be the most feasible.
7    (p) This Section is cumulative and constitutes complete
8authority for the issuance of bonds as provided in this Section
9notwithstanding any other statute or law to the contrary.
10    (q) With respect to instruments for the payment of money
11issued under this Section either before, on, or after the
12effective date of Public Act 86-004 (June 6, 1989), it is, and
13always has been, the intention of the General Assembly (i) that
14the Omnibus Bond Acts are, and always have been, supplementary
15grants of power to issue instruments in accordance with the
16Omnibus Bond Acts, regardless of any provision of this Act that
17may appear to be or to have been more restrictive than those
18Acts, (ii) that the provisions of this Section are not a
19limitation on the supplementary authority granted by the
20Omnibus Bond Acts, and (iii) that instruments issued under this
21Section within the supplementary authority granted by the
22Omnibus Bond Acts are not invalid because of any provision of
23this Act that may appear to be or to have been more restrictive
24than those Acts.
25    (r) When the purposes for which the bonds are issued have
26been accomplished and paid for in full and there remain funds

 

 

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1on hand from the proceeds of the bond sale and interest
2earnings therefrom, the board shall, by resolution, use such
3excess funds in accordance with the provisions of Section
410-22.14 of this Act.
5    (s) Whenever any tax is levied or bonds issued for fire
6prevention, safety, energy conservation, and school security
7purposes, such proceeds shall be deposited and accounted for
8separately within the Fire Prevention and Safety Fund.
9(Source: P.A. 98-26, eff. 6-21-13; 98-1066, eff. 8-26-14;
1099-143, eff. 7-27-15.)
 
11    (105 ILCS 5/17-2A)  (from Ch. 122, par. 17-2A)
12    Sec. 17-2A. Interfund Transfers.
13    (a) The school board of any district having a population of
14less than 500,000 inhabitants may, by proper resolution
15following a public hearing set by the school board or the
16president of the school board (that is preceded (i) by at least
17one published notice over the name of the clerk or secretary of
18the board, occurring at least 7 days and not more than 30 days
19prior to the hearing, in a newspaper of general circulation
20within the school district and (ii) by posted notice over the
21name of the clerk or secretary of the board, at least 48 hours
22before the hearing, at the principal office of the school board
23or at the building where the hearing is to be held if a
24principal office does not exist, with both notices setting
25forth the time, date, place, and subject matter of the

 

 

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1hearing), transfer money from (1) the Educational Fund to the
2Operations and Maintenance Fund or the Transportation Fund, (2)
3the Operations and Maintenance Fund to the Educational Fund or
4the Transportation Fund, or (3) the Transportation Fund to the
5Educational Fund or the Operations and Maintenance Fund of said
6district, provided that, except during the period from July 1,
72003 through June 30, 2019 2016, such transfer is made solely
8for the purpose of meeting one-time, non-recurring expenses.
9Except during the period from July 1, 2003 through June 30,
102019 2016 and except as otherwise provided in subsection (b) of
11this Section, any other permanent interfund transfers
12authorized by any provision or judicial interpretation of this
13Code for which the transferee fund is not precisely and
14specifically set forth in the provision of this Code
15authorizing such transfer shall be made to the fund of the
16school district most in need of the funds being transferred, as
17determined by resolution of the school board.
18     (b) Notwithstanding subsection (a) of this Section or any
19other provision of this Code to the contrary, the school board
20of any school district (i) that is subject to the Property Tax
21Extension Limitation Law, (ii) that has a population of less
22than 500,000 inhabitants, (iii) that is levying at its maximum
23tax rate, (iv) whose total equalized assessed valuation has
24declined 20% in the prior 2 years, (v) in which 80% or more of
25its students receive free or reduced-price lunch, and (vi) that
26had an equalized assessed valuation of less than $207 million

 

 

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1but more than $203 million in the 2011 levy year may annually,
2until July 1, 2016, transfer money from any fund of the
3district, other than the Illinois Municipal Retirement Fund and
4the Bonds and Interest Fund, to the educational fund, the
5operations and maintenance fund, or the transportation fund of
6the district by proper resolution following a public hearing
7set by the school board or the president of the school board,
8with notice as provided in subsection (a) of this Section, so
9long as the district meets the qualifications set forth in this
10subsection (b) on the effective date of this amendatory Act of
11the 98th General Assembly even if the district does not meet
12those qualifications at the time a given transfer is made.
13(Source: P.A. 98-26, eff. 6-21-13; 98-131, eff. 1-1-14.)
 
14    (105 ILCS 5/17-3.6 new)
15    Sec. 17-3.6. Educational purposes tax rate for school
16districts subject to Property Tax Extension Limitation Law.
17Notwithstanding the provisions, requirements, or limitations
18of this Code or any other law, any tax levied for educational
19purposes by a school district subject to the Property Tax
20Extension Limitation Law for the 2015 levy year or any
21subsequent levy year may be extended at a rate exceeding the
22rate established for educational purposes by referendum or this
23Code, provided that the rate does not cause the school district
24to exceed the limiting rate applicable to the school district
25under the Property Tax Extension Limitation Law for that levy

 

 

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1year.
 
2    (105 ILCS 5/18-4.3)  (from Ch. 122, par. 18-4.3)
3    Sec. 18-4.3. Summer school grants. Through fiscal year
42016, grants Grants shall be determined for pupil attendance in
5summer schools conducted under Sections 10-22.33A and 34-18 and
6approved under Section 2-3.25 in the following manner.
7    The amount of grant for each accredited summer school
8attendance pupil shall be obtained by dividing the total amount
9of apportionments determined under Section 18-8.05 by the
10actual number of pupils in average daily attendance used for
11such apportionments. The number of credited summer school
12attendance pupils shall be determined (a) by counting clock
13hours of class instruction by pupils enrolled in grades 1
14through 12 in approved courses conducted at least 60 clock
15hours in summer sessions; (b) by dividing such total of clock
16hours of class instruction by 4 to produce days of credited
17pupil attendance; (c) by dividing such days of credited pupil
18attendance by the actual number of days in the regular term as
19used in computation in the general apportionment in Section
2018-8.05; and (d) by multiplying by 1.25.
21    The amount of the grant for a summer school program
22approved by the State Superintendent of Education for children
23with disabilities, as defined in Sections 14-1.02 through
2414-1.07, shall be determined in the manner contained above
25except that average daily membership shall be utilized in lieu

 

 

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1of average daily attendance.
2    In the case of an apportionment based on summer school
3attendance or membership pupils, the claim therefor shall be
4presented as a separate claim for the particular school year in
5which such summer school session ends. On or before November 1
6of each year the superintendent of each eligible school
7district shall certify to the State Superintendent of Education
8the claim of the district for the summer session just ended.
9Failure on the part of the school board to so certify shall
10constitute a forfeiture of its right to such payment. The State
11Superintendent of Education shall transmit to the Comptroller
12no later than December 15th of each year vouchers for payment
13of amounts due school districts for summer school. The State
14Superintendent of Education shall direct the Comptroller to
15draw his warrants for payments thereof by the 30th day of
16December. If the money appropriated by the General Assembly for
17such purpose for any year is insufficient, it shall be
18apportioned on the basis of claims approved.
19    However, notwithstanding the foregoing provisions, for
20each fiscal year the money appropriated by the General Assembly
21for the purposes of this Section shall only be used for grants
22for approved summer school programs for those children with
23disabilities served pursuant to Section 14-7.02 or 14-7.02b of
24this Code.
25    No funding shall be provided to school districts under this
26Section after fiscal year 2016.

 

 

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1(Source: P.A. 93-1022, eff. 8-24-04.)
 
2    (105 ILCS 5/18-8.05)
3    Sec. 18-8.05. Basis for apportionment of general State
4financial aid and supplemental general State aid to the common
5schools for the 1998-1999 through the 2015-2016 and subsequent
6school years.
 
7(A) General Provisions.
8    (1) The provisions of this Section relating to the
9calculation and apportionment of general State financial aid
10and supplemental general State aid apply to the 1998-1999
11through the 2015-2016 and subsequent school years. The system
12of general State financial aid provided for in this Section is
13designed to assure that, through a combination of State
14financial aid and required local resources, the financial
15support provided each pupil in Average Daily Attendance equals
16or exceeds a prescribed per pupil Foundation Level. This
17formula approach imputes a level of per pupil Available Local
18Resources and provides for the basis to calculate a per pupil
19level of general State financial aid that, when added to
20Available Local Resources, equals or exceeds the Foundation
21Level. The amount of per pupil general State financial aid for
22school districts, in general, varies in inverse relation to
23Available Local Resources. Per pupil amounts are based upon
24each school district's Average Daily Attendance as that term is

 

 

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1defined in this Section.
2    (2) In addition to general State financial aid, school
3districts with specified levels or concentrations of pupils
4from low income households are eligible to receive supplemental
5general State financial aid grants as provided pursuant to
6subsection (H). The supplemental State aid grants provided for
7school districts under subsection (H) shall be appropriated for
8distribution to school districts as part of the same line item
9in which the general State financial aid of school districts is
10appropriated under this Section.
11    (3) To receive financial assistance under this Section,
12school districts are required to file claims with the State
13Board of Education, subject to the following requirements:
14        (a) Any school district which fails for any given
15    school year to maintain school as required by law, or to
16    maintain a recognized school is not eligible to file for
17    such school year any claim upon the Common School Fund. In
18    case of nonrecognition of one or more attendance centers in
19    a school district otherwise operating recognized schools,
20    the claim of the district shall be reduced in the
21    proportion which the Average Daily Attendance in the
22    attendance center or centers bear to the Average Daily
23    Attendance in the school district. A "recognized school"
24    means any public school which meets the standards as
25    established for recognition by the State Board of
26    Education. A school district or attendance center not

 

 

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1    having recognition status at the end of a school term is
2    entitled to receive State aid payments due upon a legal
3    claim which was filed while it was recognized.
4        (b) School district claims filed under this Section are
5    subject to Sections 18-9 and 18-12, except as otherwise
6    provided in this Section.
7        (c) If a school district operates a full year school
8    under Section 10-19.1, the general State aid to the school
9    district shall be determined by the State Board of
10    Education in accordance with this Section as near as may be
11    applicable.
12        (d) (Blank).
13    (4) Except as provided in subsections (H) and (L), the
14board of any district receiving any of the grants provided for
15in this Section may apply those funds to any fund so received
16for which that board is authorized to make expenditures by law.
17    School districts are not required to exert a minimum
18Operating Tax Rate in order to qualify for assistance under
19this Section.
20    (5) As used in this Section the following terms, when
21capitalized, shall have the meaning ascribed herein:
22        (a) "Average Daily Attendance": A count of pupil
23    attendance in school, averaged as provided for in
24    subsection (C) and utilized in deriving per pupil financial
25    support levels.
26        (b) "Available Local Resources": A computation of

 

 

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

 

 

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1available to meet the basic education needs of pupils in the
2district.
3    (2) For the 1998-1999 school year, the Foundation Level of
4support is $4,225. For the 1999-2000 school year, the
5Foundation Level of support is $4,325. For the 2000-2001 school
6year, the Foundation Level of support is $4,425. For the
72001-2002 school year and 2002-2003 school year, the Foundation
8Level of support is $4,560. For the 2003-2004 school year, the
9Foundation Level of support is $4,810. For the 2004-2005 school
10year, the Foundation Level of support is $4,964. For the
112005-2006 school year, the Foundation Level of support is
12$5,164. For the 2006-2007 school year, the Foundation Level of
13support is $5,334. For the 2007-2008 school year, the
14Foundation Level of support is $5,734. For the 2008-2009 school
15year, the Foundation Level of support is $5,959.
16    (3) For the 2009-2010 school year and each school year
17thereafter, the Foundation Level of support is $6,119 or such
18greater amount as may be established by law by the General
19Assembly.
 
20(C) Average Daily Attendance.
21    (1) For purposes of calculating general State aid pursuant
22to subsection (E), an Average Daily Attendance figure shall be
23utilized. The Average Daily Attendance figure for formula
24calculation purposes shall be the monthly average of the actual
25number of pupils in attendance of each school district, as

 

 

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1further averaged for the best 3 months of pupil attendance for
2each school district. In compiling the figures for the number
3of pupils in attendance, school districts and the State Board
4of Education shall, for purposes of general State aid funding,
5conform attendance figures to the requirements of subsection
6(F).
7    (2) The Average Daily Attendance figures utilized in
8subsection (E) shall be the requisite attendance data for the
9school year immediately preceding the school year for which
10general State aid is being calculated or the average of the
11attendance data for the 3 preceding school years, whichever is
12greater. The Average Daily Attendance figures utilized in
13subsection (H) shall be the requisite attendance data for the
14school year immediately preceding the school year for which
15general State aid is being calculated.
 
16(D) Available Local Resources.
17    (1) For purposes of calculating general State aid pursuant
18to subsection (E), a representation of Available Local
19Resources per pupil, as that term is defined and determined in
20this subsection, shall be utilized. Available Local Resources
21per pupil shall include a calculated dollar amount representing
22local school district revenues from local property taxes and
23from Corporate Personal Property Replacement Taxes, expressed
24on the basis of pupils in Average Daily Attendance. Calculation
25of Available Local Resources shall exclude any tax amnesty

 

 

09900SB0231sam001- 317 -LRB099 03162 NHT 47157 a

1funds received as a result of Public Act 93-26.
2    (2) In determining a school district's revenue from local
3property taxes, the State Board of Education shall utilize the
4equalized assessed valuation of all taxable property of each
5school district as of September 30 of the previous year. The
6equalized assessed valuation utilized shall be obtained and
7determined as provided in subsection (G).
8    (3) For school districts maintaining grades kindergarten
9through 12, local property tax revenues per pupil shall be
10calculated as the product of the applicable equalized assessed
11valuation for the district multiplied by 3.00%, and divided by
12the district's Average Daily Attendance figure. For school
13districts maintaining grades kindergarten through 8, local
14property tax revenues per pupil shall be calculated as the
15product of the applicable equalized assessed valuation for the
16district multiplied by 2.30%, and divided by the district's
17Average Daily Attendance figure. For school districts
18maintaining grades 9 through 12, local property tax revenues
19per pupil shall be the applicable equalized assessed valuation
20of the district multiplied by 1.05%, and divided by the
21district's Average Daily Attendance figure.
22    For partial elementary unit districts created pursuant to
23Article 11E of this Code, local property tax revenues per pupil
24shall be calculated as the product of the equalized assessed
25valuation for property within the partial elementary unit
26district for elementary purposes, as defined in Article 11E of

 

 

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1this Code, multiplied by 2.06% and divided by the district's
2Average Daily Attendance figure, plus the product of the
3equalized assessed valuation for property within the partial
4elementary unit district for high school purposes, as defined
5in Article 11E of this Code, multiplied by 0.94% and divided by
6the district's Average Daily Attendance figure.
7    (4) The Corporate Personal Property Replacement Taxes paid
8to each school district during the calendar year one year
9before the calendar year in which a school year begins, divided
10by the Average Daily Attendance figure for that district, shall
11be added to the local property tax revenues per pupil as
12derived by the application of the immediately preceding
13paragraph (3). The sum of these per pupil figures for each
14school district shall constitute Available Local Resources as
15that term is utilized in subsection (E) in the calculation of
16general State aid.
 
17(E) Computation of General State Aid.
18    (1) For each school year, the amount of general State aid
19allotted to a school district shall be computed by the State
20Board of Education as provided in this subsection.
21    (2) For any school district for which Available Local
22Resources per pupil is less than the product of 0.93 times the
23Foundation Level, general State aid for that district shall be
24calculated as an amount equal to the Foundation Level minus
25Available Local Resources, multiplied by the Average Daily

 

 

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1Attendance of the school district.
2    (3) For any school district for which Available Local
3Resources per pupil is equal to or greater than the product of
40.93 times the Foundation Level and less than the product of
51.75 times the Foundation Level, the general State aid per
6pupil shall be a decimal proportion of the Foundation Level
7derived using a linear algorithm. Under this linear algorithm,
8the calculated general State aid per pupil shall decline in
9direct linear fashion from 0.07 times the Foundation Level for
10a school district with Available Local Resources equal to the
11product of 0.93 times the Foundation Level, to 0.05 times the
12Foundation Level for a school district with Available Local
13Resources equal to the product of 1.75 times the Foundation
14Level. The allocation of general State aid for school districts
15subject to this paragraph 3 shall be the calculated general
16State aid per pupil figure multiplied by the Average Daily
17Attendance of the school district.
18    (4) For any school district for which Available Local
19Resources per pupil equals or exceeds the product of 1.75 times
20the Foundation Level, the general State aid for the school
21district shall be calculated as the product of $218 multiplied
22by the Average Daily Attendance of the school district.
23    (5) The amount of general State aid allocated to a school
24district for the 1999-2000 school year meeting the requirements
25set forth in paragraph (4) of subsection (G) shall be increased
26by an amount equal to the general State aid that would have

 

 

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1been received by the district for the 1998-1999 school year by
2utilizing the Extension Limitation Equalized Assessed
3Valuation as calculated in paragraph (4) of subsection (G) less
4the general State aid allotted for the 1998-1999 school year.
5This amount shall be deemed a one time increase, and shall not
6affect any future general State aid allocations.
 
7(F) Compilation of Average Daily Attendance.
8    (1) Each school district shall, by July 1 of each year,
9submit to the State Board of Education, on forms prescribed by
10the State Board of Education, attendance figures for the school
11year that began in the preceding calendar year. The attendance
12information so transmitted shall identify the average daily
13attendance figures for each month of the school year. Beginning
14with the general State aid claim form for the 2002-2003 school
15year, districts shall calculate Average Daily Attendance as
16provided in subdivisions (a), (b), and (c) of this paragraph
17(1).
18        (a) In districts that do not hold year-round classes,
19    days of attendance in August shall be added to the month of
20    September and any days of attendance in June shall be added
21    to the month of May.
22        (b) In districts in which all buildings hold year-round
23    classes, days of attendance in July and August shall be
24    added to the month of September and any days of attendance
25    in June shall be added to the month of May.

 

 

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1        (c) In districts in which some buildings, but not all,
2    hold year-round classes, for the non-year-round buildings,
3    days of attendance in August shall be added to the month of
4    September and any days of attendance in June shall be added
5    to the month of May. The average daily attendance for the
6    year-round buildings shall be computed as provided in
7    subdivision (b) of this paragraph (1). To calculate the
8    Average Daily Attendance for the district, the average
9    daily attendance for the year-round buildings shall be
10    multiplied by the days in session for the non-year-round
11    buildings for each month and added to the monthly
12    attendance of the non-year-round buildings.
13    Except as otherwise provided in this Section, days of
14attendance by pupils shall be counted only for sessions of not
15less than 5 clock hours of school work per day under direct
16supervision of: (i) teachers, or (ii) non-teaching personnel or
17volunteer personnel when engaging in non-teaching duties and
18supervising in those instances specified in subsection (a) of
19Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
20of legal school age and in kindergarten and grades 1 through
2112. Days of attendance by pupils through verified participation
22in an e-learning program approved by the State Board of
23Education under Section 10-20.56 of the Code shall be
24considered as full days of attendance for purposes of this
25Section.
26    Days of attendance by tuition pupils shall be accredited

 

 

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1only to the districts that pay the tuition to a recognized
2school.
3    (2) Days of attendance by pupils of less than 5 clock hours
4of school shall be subject to the following provisions in the
5compilation of Average Daily Attendance.
6        (a) Pupils regularly enrolled in a public school for
7    only a part of the school day may be counted on the basis
8    of 1/6 day for every class hour of instruction of 40
9    minutes or more attended pursuant to such enrollment,
10    unless a pupil is enrolled in a block-schedule format of 80
11    minutes or more of instruction, in which case the pupil may
12    be counted on the basis of the proportion of minutes of
13    school work completed each day to the minimum number of
14    minutes that school work is required to be held that day.
15        (b) (Blank).
16        (c) A session of 4 or more clock hours may be counted
17    as a day of attendance upon certification by the regional
18    superintendent, and approved by the State Superintendent
19    of Education to the extent that the district has been
20    forced to use daily multiple sessions.
21        (d) A session of 3 or more clock hours may be counted
22    as a day of attendance (1) when the remainder of the school
23    day or at least 2 hours in the evening of that day is
24    utilized for an in-service training program for teachers,
25    up to a maximum of 5 days per school year, provided a
26    district conducts an in-service training program for

 

 

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1    teachers in accordance with Section 10-22.39 of this Code;
2    or, in lieu of 4 such days, 2 full days may be used, in
3    which event each such day may be counted as a day required
4    for a legal school calendar pursuant to Section 10-19 of
5    this Code; (1.5) when, of the 5 days allowed under item
6    (1), a maximum of 4 days are used for parent-teacher
7    conferences, or, in lieu of 4 such days, 2 full days are
8    used, in which case each such day may be counted as a
9    calendar day required under Section 10-19 of this Code,
10    provided that the full-day, parent-teacher conference
11    consists of (i) a minimum of 5 clock hours of
12    parent-teacher conferences, (ii) both a minimum of 2 clock
13    hours of parent-teacher conferences held in the evening
14    following a full day of student attendance, as specified in
15    subsection (F)(1)(c), and a minimum of 3 clock hours of
16    parent-teacher conferences held on the day immediately
17    following evening parent-teacher conferences, or (iii)
18    multiple parent-teacher conferences held in the evenings
19    following full days of student attendance, as specified in
20    subsection (F)(1)(c), in which the time used for the
21    parent-teacher conferences is equivalent to a minimum of 5
22    clock hours; and (2) when days in addition to those
23    provided in items (1) and (1.5) are scheduled by a school
24    pursuant to its school improvement plan adopted under
25    Article 34 or its revised or amended school improvement
26    plan adopted under Article 2, provided that (i) such

 

 

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1    sessions of 3 or more clock hours are scheduled to occur at
2    regular intervals, (ii) the remainder of the school days in
3    which such sessions occur are utilized for in-service
4    training programs or other staff development activities
5    for teachers, and (iii) a sufficient number of minutes of
6    school work under the direct supervision of teachers are
7    added to the school days between such regularly scheduled
8    sessions to accumulate not less than the number of minutes
9    by which such sessions of 3 or more clock hours fall short
10    of 5 clock hours. Any full days used for the purposes of
11    this paragraph shall not be considered for computing
12    average daily attendance. Days scheduled for in-service
13    training programs, staff development activities, or
14    parent-teacher conferences may be scheduled separately for
15    different grade levels and different attendance centers of
16    the district.
17        (e) A session of not less than one clock hour of
18    teaching hospitalized or homebound pupils on-site or by
19    telephone to the classroom may be counted as 1/2 day of
20    attendance, however these pupils must receive 4 or more
21    clock hours of instruction to be counted for a full day of
22    attendance.
23        (f) A session of at least 4 clock hours may be counted
24    as a day of attendance for first grade pupils, and pupils
25    in full day kindergartens, and a session of 2 or more hours
26    may be counted as 1/2 day of attendance by pupils in

 

 

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1    kindergartens which provide only 1/2 day of attendance.
2        (g) For children with disabilities who are below the
3    age of 6 years and who cannot attend 2 or more clock hours
4    because of their disability or immaturity, a session of not
5    less than one clock hour may be counted as 1/2 day of
6    attendance; however for such children whose educational
7    needs so require a session of 4 or more clock hours may be
8    counted as a full day of attendance.
9        (h) A recognized kindergarten which provides for only
10    1/2 day of attendance by each pupil shall not have more
11    than 1/2 day of attendance counted in any one day. However,
12    kindergartens may count 2 1/2 days of attendance in any 5
13    consecutive school days. When a pupil attends such a
14    kindergarten for 2 half days on any one school day, the
15    pupil shall have the following day as a day absent from
16    school, unless the school district obtains permission in
17    writing from the State Superintendent of Education.
18    Attendance at kindergartens which provide for a full day of
19    attendance by each pupil shall be counted the same as
20    attendance by first grade pupils. Only the first year of
21    attendance in one kindergarten shall be counted, except in
22    case of children who entered the kindergarten in their
23    fifth year whose educational development requires a second
24    year of kindergarten as determined under the rules and
25    regulations of the State Board of Education.
26        (i) On the days when the assessment that includes a

 

 

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1    college and career ready determination is administered
2    under subsection (c) of Section 2-3.64a-5 of this Code, the
3    day of attendance for a pupil whose school day must be
4    shortened to accommodate required testing procedures may
5    be less than 5 clock hours and shall be counted towards the
6    176 days of actual pupil attendance required under Section
7    10-19 of this Code, provided that a sufficient number of
8    minutes of school work in excess of 5 clock hours are first
9    completed on other school days to compensate for the loss
10    of school work on the examination days.
11        (j) Pupils enrolled in a remote educational program
12    established under Section 10-29 of this Code may be counted
13    on the basis of one-fifth day of attendance for every clock
14    hour of instruction attended in the remote educational
15    program, provided that, in any month, the school district
16    may not claim for a student enrolled in a remote
17    educational program more days of attendance than the
18    maximum number of days of attendance the district can claim
19    (i) for students enrolled in a building holding year-round
20    classes if the student is classified as participating in
21    the remote educational program on a year-round schedule or
22    (ii) for students enrolled in a building not holding
23    year-round classes if the student is not classified as
24    participating in the remote educational program on a
25    year-round schedule.
 

 

 

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1(G) Equalized Assessed Valuation Data.
2    (1) For purposes of the calculation of Available Local
3Resources required pursuant to subsection (D), the State Board
4of Education shall secure from the Department of Revenue the
5value as equalized or assessed by the Department of Revenue of
6all taxable property of every school district, together with
7(i) the applicable tax rate used in extending taxes for the
8funds of the district as of September 30 of the previous year
9and (ii) the limiting rate for all school districts subject to
10property tax extension limitations as imposed under the
11Property Tax Extension Limitation Law.
12    The Department of Revenue shall add to the equalized
13assessed value of all taxable property of each school district
14situated entirely or partially within a county that is or was
15subject to the provisions of Section 15-176 or 15-177 of the
16Property Tax Code (a) an amount equal to the total amount by
17which the homestead exemption allowed under Section 15-176 or
1815-177 of the Property Tax Code for real property situated in
19that school district exceeds the total amount that would have
20been allowed in that school district if the maximum reduction
21under Section 15-176 was (i) $4,500 in Cook County or $3,500 in
22all other counties in tax year 2003 or (ii) $5,000 in all
23counties in tax year 2004 and thereafter and (b) an amount
24equal to the aggregate amount for the taxable year of all
25additional exemptions under Section 15-175 of the Property Tax
26Code for owners with a household income of $30,000 or less. The

 

 

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1county clerk of any county that is or was subject to the
2provisions of Section 15-176 or 15-177 of the Property Tax Code
3shall annually calculate and certify to the Department of
4Revenue for each school district all homestead exemption
5amounts under Section 15-176 or 15-177 of the Property Tax Code
6and all amounts of additional exemptions under Section 15-175
7of the Property Tax Code for owners with a household income of
8$30,000 or less. It is the intent of this paragraph that if the
9general homestead exemption for a parcel of property is
10determined under Section 15-176 or 15-177 of the Property Tax
11Code rather than Section 15-175, then the calculation of
12Available Local Resources shall not be affected by the
13difference, if any, between the amount of the general homestead
14exemption allowed for that parcel of property under Section
1515-176 or 15-177 of the Property Tax Code and the amount that
16would have been allowed had the general homestead exemption for
17that parcel of property been determined under Section 15-175 of
18the Property Tax Code. It is further the intent of this
19paragraph that if additional exemptions are allowed under
20Section 15-175 of the Property Tax Code for owners with a
21household income of less than $30,000, then the calculation of
22Available Local Resources shall not be affected by the
23difference, if any, because of those additional exemptions.
24    This equalized assessed valuation, as adjusted further by
25the requirements of this subsection, shall be utilized in the
26calculation of Available Local Resources.

 

 

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

 

 

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1    a school district shall be adjusted by subtracting from the
2    real property value as equalized or assessed by the
3    Department of Revenue for the district an amount computed
4    by dividing the amount of any abatement of taxes under
5    Section 18-170 of the Property Tax Code by 3.00% for a
6    district maintaining grades kindergarten through 12, by
7    2.30% for a district maintaining grades kindergarten
8    through 8, or by 1.05% for a district maintaining grades 9
9    through 12 and adjusted by an amount computed by dividing
10    the amount of any abatement of taxes under subsection (a)
11    of Section 18-165 of the Property Tax Code by the same
12    percentage rates for district type as specified in this
13    subparagraph (b).
14    (3) For the 1999-2000 school year and each school year
15thereafter, if a school district meets all of the criteria of
16this subsection (G)(3), the school district's Available Local
17Resources shall be calculated under subsection (D) using the
18district's Extension Limitation Equalized Assessed Valuation
19as calculated under this subsection (G)(3).
20    For purposes of this subsection (G)(3) the following terms
21shall have the following meanings:
22        "Budget Year": The school year for which general State
23    aid is calculated and awarded under subsection (E).
24        "Base Tax Year": The property tax levy year used to
25    calculate the Budget Year allocation of general State aid.
26        "Preceding Tax Year": The property tax levy year

 

 

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

 

 

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1has approved or does approve an increase in its limiting rate,
2for the 2000-2001 school year and each school year thereafter,
3the Extension Limitation Equalized Assessed Valuation of a
4school district as calculated by the State Board of Education
5shall be equal to the product of the Equalized Assessed
6Valuation last used in the calculation of general State aid and
7the district's Extension Limitation Ratio. If the Extension
8Limitation Equalized Assessed Valuation of a school district as
9calculated under this subsection (G)(3) is less than the
10district's equalized assessed valuation as calculated pursuant
11to subsections (G)(1) and (G)(2), then for purposes of
12calculating the district's general State aid for the Budget
13Year pursuant to subsection (E), that Extension Limitation
14Equalized Assessed Valuation shall be utilized to calculate the
15district's Available Local Resources under subsection (D). For
16the 2009-2010 school year and each school year thereafter, if a
17school district has approved or does approve an increase in its
18limiting rate, pursuant to Section 18-190 of the Property Tax
19Code, affecting the Base Tax Year, the Extension Limitation
20Equalized Assessed Valuation of the school district, as
21calculated by the State Board of Education, shall be equal to
22the product of the Equalized Assessed Valuation last used in
23the calculation of general State aid times an amount equal to
24one plus the percentage increase, if any, in the Consumer Price
25Index for all Urban Consumers for all items published by the
26United States Department of Labor for the 12-month calendar

 

 

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1year preceding the Base Tax Year, plus the Equalized Assessed
2Valuation of new property, annexed property, and recovered tax
3increment value and minus the Equalized Assessed Valuation of
4disconnected property. New property and recovered tax
5increment value shall have the meanings set forth in the
6Property Tax Extension Limitation Law.
7    Partial elementary unit districts created in accordance
8with Article 11E of this Code shall not be eligible for the
9adjustment in this subsection (G)(3) until the fifth year
10following the effective date of the reorganization.
11    (3.5) For the 2010-2011 school year and each school year
12thereafter, if a school district's boundaries span multiple
13counties, then the Department of Revenue shall send to the
14State Board of Education, for the purpose of calculating
15general State aid, the limiting rate and individual rates by
16purpose for the county that contains the majority of the school
17district's Equalized Assessed Valuation.
18    (4) For the purposes of calculating general State aid for
19the 1999-2000 school year only, if a school district
20experienced a triennial reassessment on the equalized assessed
21valuation used in calculating its general State financial aid
22apportionment for the 1998-1999 school year, the State Board of
23Education shall calculate the Extension Limitation Equalized
24Assessed Valuation that would have been used to calculate the
25district's 1998-1999 general State aid. This amount shall equal
26the product of the equalized assessed valuation used to

 

 

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1calculate general State aid for the 1997-1998 school year and
2the district's Extension Limitation Ratio. If the Extension
3Limitation Equalized Assessed Valuation of the school district
4as calculated under this paragraph (4) is less than the
5district's equalized assessed valuation utilized in
6calculating the district's 1998-1999 general State aid
7allocation, then for purposes of calculating the district's
8general State aid pursuant to paragraph (5) of subsection (E),
9that Extension Limitation Equalized Assessed Valuation shall
10be utilized to calculate the district's Available Local
11Resources.
12    (5) For school districts having a majority of their
13equalized assessed valuation in any county except Cook, DuPage,
14Kane, Lake, McHenry, or Will, if the amount of general State
15aid allocated to the school district for the 1999-2000 school
16year under the provisions of subsection (E), (H), and (J) of
17this Section is less than the amount of general State aid
18allocated to the district for the 1998-1999 school year under
19these subsections, then the general State aid of the district
20for the 1999-2000 school year only shall be increased by the
21difference between these amounts. The total payments made under
22this paragraph (5) shall not exceed $14,000,000. Claims shall
23be prorated if they exceed $14,000,000.
 
24(H) Supplemental General State Aid.
25    (1) In addition to the general State aid a school district

 

 

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1is allotted pursuant to subsection (E), qualifying school
2districts shall receive a grant, paid in conjunction with a
3district's payments of general State aid, for supplemental
4general State aid based upon the concentration level of
5children from low-income households within the school
6district. Supplemental State aid grants provided for school
7districts under this subsection shall be appropriated for
8distribution to school districts as part of the same line item
9in which the general State financial aid of school districts is
10appropriated under this Section.
11    (1.5) This paragraph (1.5) applies only to those school
12years preceding the 2003-2004 school year. For purposes of this
13subsection (H), the term "Low-Income Concentration Level"
14shall be the low-income eligible pupil count from the most
15recently available federal census divided by the Average Daily
16Attendance of the school district. If, however, (i) the
17percentage decrease from the 2 most recent federal censuses in
18the low-income eligible pupil count of a high school district
19with fewer than 400 students exceeds by 75% or more the
20percentage change in the total low-income eligible pupil count
21of contiguous elementary school districts, whose boundaries
22are coterminous with the high school district, or (ii) a high
23school district within 2 counties and serving 5 elementary
24school districts, whose boundaries are coterminous with the
25high school district, has a percentage decrease from the 2 most
26recent federal censuses in the low-income eligible pupil count

 

 

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1and there is a percentage increase in the total low-income
2eligible pupil count of a majority of the elementary school
3districts in excess of 50% from the 2 most recent federal
4censuses, then the high school district's low-income eligible
5pupil count from the earlier federal census shall be the number
6used as the low-income eligible pupil count for the high school
7district, for purposes of this subsection (H). The changes made
8to this paragraph (1) by Public Act 92-28 shall apply to
9supplemental general State aid grants for school years
10preceding the 2003-2004 school year that are paid in fiscal
11year 1999 or thereafter and to any State aid payments made in
12fiscal year 1994 through fiscal year 1998 pursuant to
13subsection 1(n) of Section 18-8 of this Code (which was
14repealed on July 1, 1998), and any high school district that is
15affected by Public Act 92-28 is entitled to a recomputation of
16its supplemental general State aid grant or State aid paid in
17any of those fiscal years. This recomputation shall not be
18affected by any other funding.
19    (1.10) This paragraph (1.10) applies to the 2003-2004
20school year and each school year thereafter through the
212015-2016 school year. For purposes of this subsection (H), the
22term "Low-Income Concentration Level" shall, for each fiscal
23year, be the low-income eligible pupil count as of July 1 of
24the immediately preceding fiscal year (as determined by the
25Department of Human Services based on the number of pupils who
26are eligible for at least one of the following low income

 

 

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1programs: Medicaid, the Children's Health Insurance Program,
2TANF, or Food Stamps, excluding pupils who are eligible for
3services provided by the Department of Children and Family
4Services, averaged over the 2 immediately preceding fiscal
5years for fiscal year 2004 and over the 3 immediately preceding
6fiscal years for each fiscal year thereafter) divided by the
7Average Daily Attendance of the school district.
8    (2) Supplemental general State aid pursuant to this
9subsection (H) shall be provided as follows for the 1998-1999,
101999-2000, and 2000-2001 school years only:
11        (a) For any school district with a Low Income
12    Concentration Level of at least 20% and less than 35%, the
13    grant for any school year shall be $800 multiplied by the
14    low income eligible pupil count.
15        (b) For any school district with a Low Income
16    Concentration Level of at least 35% and less than 50%, the
17    grant for the 1998-1999 school year shall be $1,100
18    multiplied by the low income eligible pupil count.
19        (c) For any school district with a Low Income
20    Concentration Level of at least 50% and less than 60%, the
21    grant for the 1998-99 school year shall be $1,500
22    multiplied by the low income eligible pupil count.
23        (d) For any school district with a Low Income
24    Concentration Level of 60% or more, the grant for the
25    1998-99 school year shall be $1,900 multiplied by the low
26    income eligible pupil count.

 

 

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1        (e) For the 1999-2000 school year, the per pupil amount
2    specified in subparagraphs (b), (c), and (d) immediately
3    above shall be increased to $1,243, $1,600, and $2,000,
4    respectively.
5        (f) For the 2000-2001 school year, the per pupil
6    amounts specified in subparagraphs (b), (c), and (d)
7    immediately above shall be $1,273, $1,640, and $2,050,
8    respectively.
9    (2.5) Supplemental general State aid pursuant to this
10subsection (H) shall be provided as follows for the 2002-2003
11school year:
12        (a) For any school district with a Low Income
13    Concentration Level of less than 10%, the grant for each
14    school year shall be $355 multiplied by the low income
15    eligible pupil count.
16        (b) For any school district with a Low Income
17    Concentration Level of at least 10% and less than 20%, the
18    grant for each school year shall be $675 multiplied by the
19    low income eligible pupil count.
20        (c) For any school district with a Low Income
21    Concentration Level of at least 20% and less than 35%, the
22    grant for each school year shall be $1,330 multiplied by
23    the low income eligible pupil count.
24        (d) For any school district with a Low Income
25    Concentration Level of at least 35% and less than 50%, the
26    grant for each school year shall be $1,362 multiplied by

 

 

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1    the low income eligible pupil count.
2        (e) For any school district with a Low Income
3    Concentration Level of at least 50% and less than 60%, the
4    grant for each school year shall be $1,680 multiplied by
5    the low income eligible pupil count.
6        (f) For any school district with a Low Income
7    Concentration Level of 60% or more, the grant for each
8    school year shall be $2,080 multiplied by the low income
9    eligible pupil count.
10    (2.10) Except as otherwise provided, supplemental general
11State aid pursuant to this subsection (H) shall be provided as
12follows for the 2003-2004 school year and each school year
13thereafter:
14        (a) For any school district with a Low Income
15    Concentration Level of 15% or less, the grant for each
16    school year shall be $355 multiplied by the low income
17    eligible pupil count.
18        (b) For any school district with a Low Income
19    Concentration Level greater than 15%, the grant for each
20    school year shall be $294.25 added to the product of $2,700
21    and the square of the Low Income Concentration Level, all
22    multiplied by the low income eligible pupil count.
23    For the 2003-2004 school year and each school year
24thereafter through the 2008-2009 school year only, the grant
25shall be no less than the grant for the 2002-2003 school year.
26For the 2009-2010 school year only, the grant shall be no less

 

 

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1than the grant for the 2002-2003 school year multiplied by
20.66. For the 2010-2011 school year only, the grant shall be no
3less than the grant for the 2002-2003 school year multiplied by
40.33. Notwithstanding the provisions of this paragraph to the
5contrary, if for any school year supplemental general State aid
6grants are prorated as provided in paragraph (1) of this
7subsection (H), then the grants under this paragraph shall be
8prorated.
9    For the 2003-2004 school year only, the grant shall be no
10greater than the grant received during the 2002-2003 school
11year added to the product of 0.25 multiplied by the difference
12between the grant amount calculated under subsection (a) or (b)
13of this paragraph (2.10), whichever is applicable, and the
14grant received during the 2002-2003 school year. For the
152004-2005 school year only, the grant shall be no greater than
16the grant received during the 2002-2003 school year added to
17the product of 0.50 multiplied by the difference between the
18grant amount calculated under subsection (a) or (b) of this
19paragraph (2.10), whichever is applicable, and the grant
20received during the 2002-2003 school year. For the 2005-2006
21school year only, the grant shall be no greater than the grant
22received during the 2002-2003 school year added to the product
23of 0.75 multiplied by the difference between the grant amount
24calculated under subsection (a) or (b) of this paragraph
25(2.10), whichever is applicable, and the grant received during
26the 2002-2003 school year.

 

 

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1    (3) School districts with an Average Daily Attendance of
2more than 1,000 and less than 50,000 that qualify for
3supplemental general State aid pursuant to this subsection
4shall submit a plan to the State Board of Education prior to
5October 30 of each year for the use of the funds resulting from
6this grant of supplemental general State aid for the
7improvement of instruction in which priority is given to
8meeting the education needs of disadvantaged children. Such
9plan shall be submitted in accordance with rules and
10regulations promulgated by the State Board of Education.
11    (4) School districts with an Average Daily Attendance of
1250,000 or more that qualify for supplemental general State aid
13pursuant to this subsection shall be required to distribute
14from funds available pursuant to this Section, no less than
15$261,000,000 in accordance with the following requirements:
16        (a) The required amounts shall be distributed to the
17    attendance centers within the district in proportion to the
18    number of pupils enrolled at each attendance center who are
19    eligible to receive free or reduced-price lunches or
20    breakfasts under the federal Child Nutrition Act of 1966
21    and under the National School Lunch Act during the
22    immediately preceding school year.
23        (b) The distribution of these portions of supplemental
24    and general State aid among attendance centers according to
25    these requirements shall not be compensated for or
26    contravened by adjustments of the total of other funds

 

 

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1    appropriated to any attendance centers, and the Board of
2    Education shall utilize funding from one or several sources
3    in order to fully implement this provision annually prior
4    to the opening of school.
5        (c) Each attendance center shall be provided by the
6    school district a distribution of noncategorical funds and
7    other categorical funds to which an attendance center is
8    entitled under law in order that the general State aid and
9    supplemental general State aid provided by application of
10    this subsection supplements rather than supplants the
11    noncategorical funds and other categorical funds provided
12    by the school district to the attendance centers.
13        (d) Any funds made available under this subsection that
14    by reason of the provisions of this subsection are not
15    required to be allocated and provided to attendance centers
16    may be used and appropriated by the board of the district
17    for any lawful school purpose.
18        (e) Funds received by an attendance center pursuant to
19    this subsection shall be used by the attendance center at
20    the discretion of the principal and local school council
21    for programs to improve educational opportunities at
22    qualifying schools through the following programs and
23    services: early childhood education, reduced class size or
24    improved adult to student classroom ratio, enrichment
25    programs, remedial assistance, attendance improvement, and
26    other educationally beneficial expenditures which

 

 

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1    supplement the regular and basic programs as determined by
2    the State Board of Education. Funds provided shall not be
3    expended for any political or lobbying purposes as defined
4    by board rule.
5        (f) Each district subject to the provisions of this
6    subdivision (H)(4) shall submit an acceptable plan to meet
7    the educational needs of disadvantaged children, in
8    compliance with the requirements of this paragraph, to the
9    State Board of Education prior to July 15 of each year.
10    This plan shall be consistent with the decisions of local
11    school councils concerning the school expenditure plans
12    developed in accordance with part 4 of Section 34-2.3. The
13    State Board shall approve or reject the plan within 60 days
14    after its submission. If the plan is rejected, the district
15    shall give written notice of intent to modify the plan
16    within 15 days of the notification of rejection and then
17    submit a modified plan within 30 days after the date of the
18    written notice of intent to modify. Districts may amend
19    approved plans pursuant to rules promulgated by the State
20    Board of Education.
21        Upon notification by the State Board of Education that
22    the district has not submitted a plan prior to July 15 or a
23    modified plan within the time period specified herein, the
24    State aid funds affected by that plan or modified plan
25    shall be withheld by the State Board of Education until a
26    plan or modified plan is submitted.

 

 

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1        If the district fails to distribute State aid to
2    attendance centers in accordance with an approved plan, the
3    plan for the following year shall allocate funds, in
4    addition to the funds otherwise required by this
5    subsection, to those attendance centers which were
6    underfunded during the previous year in amounts equal to
7    such underfunding.
8        For purposes of determining compliance with this
9    subsection in relation to the requirements of attendance
10    center funding, each district subject to the provisions of
11    this subsection shall submit as a separate document by
12    December 1 of each year a report of expenditure data for
13    the prior year in addition to any modification of its
14    current plan. If it is determined that there has been a
15    failure to comply with the expenditure provisions of this
16    subsection regarding contravention or supplanting, the
17    State Superintendent of Education shall, within 60 days of
18    receipt of the report, notify the district and any affected
19    local school council. The district shall within 45 days of
20    receipt of that notification inform the State
21    Superintendent of Education of the remedial or corrective
22    action to be taken, whether by amendment of the current
23    plan, if feasible, or by adjustment in the plan for the
24    following year. Failure to provide the expenditure report
25    or the notification of remedial or corrective action in a
26    timely manner shall result in a withholding of the affected

 

 

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1    funds.
2        The State Board of Education shall promulgate rules and
3    regulations to implement the provisions of this
4    subsection. No funds shall be released under this
5    subdivision (H)(4) to any district that has not submitted a
6    plan that has been approved by the State Board of
7    Education.
 
8(I) (Blank).
 
9(J) (Blank).
 
10(K) Grants to Laboratory and Alternative Schools.
11    In calculating the amount to be paid to the governing board
12of a public university that operates a laboratory school under
13this Section or to any alternative school that is operated by a
14regional superintendent of schools, the State Board of
15Education shall require by rule such reporting requirements as
16it deems necessary.
17    As used in this Section, "laboratory school" means a public
18school which is created and operated by a public university and
19approved by the State Board of Education. The governing board
20of a public university which receives funds from the State
21Board under this subsection (K) or subsection (i) of Section
2218-8.15 of this Code may not increase the number of students
23enrolled in its laboratory school from a single district, if

 

 

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1that district is already sending 50 or more students, except
2under a mutual agreement between the school board of a
3student's district of residence and the university which
4operates the laboratory school. A laboratory school may not
5have more than 1,000 students, excluding students with
6disabilities in a special education program.
7    As used in this Section, "alternative school" means a
8public school which is created and operated by a Regional
9Superintendent of Schools and approved by the State Board of
10Education. Such alternative schools may offer courses of
11instruction for which credit is given in regular school
12programs, courses to prepare students for the high school
13equivalency testing program or vocational and occupational
14training. A regional superintendent of schools may contract
15with a school district or a public community college district
16to operate an alternative school. An alternative school serving
17more than one educational service region may be established by
18the regional superintendents of schools of the affected
19educational service regions. An alternative school serving
20more than one educational service region may be operated under
21such terms as the regional superintendents of schools of those
22educational service regions may agree.
23    Each laboratory and alternative school shall file, on forms
24provided by the State Superintendent of Education, an annual
25State aid claim which states the Average Daily Attendance of
26the school's students by month. The best 3 months' Average

 

 

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1Daily Attendance shall be computed for each school. The general
2State aid entitlement shall be computed by multiplying the
3applicable Average Daily Attendance by the Foundation Level as
4determined under this Section.
 
5(L) Payments, Additional Grants in Aid and Other Requirements.
6    (1) For a school district operating under the financial
7supervision of an Authority created under Article 34A, the
8general State aid otherwise payable to that district under this
9Section, but not the supplemental general State aid, shall be
10reduced by an amount equal to the budget for the operations of
11the Authority as certified by the Authority to the State Board
12of Education, and an amount equal to such reduction shall be
13paid to the Authority created for such district for its
14operating expenses in the manner provided in Section 18-11. The
15remainder of general State school aid for any such district
16shall be paid in accordance with Article 34A when that Article
17provides for a disposition other than that provided by this
18Article.
19    (2) (Blank).
20    (3) Summer school. Summer school payments shall be made as
21provided in Section 18-4.3.
 
22(M) Education Funding Advisory Board.
23    The Education Funding Advisory Board, hereinafter in this
24subsection (M) referred to as the "Board", is hereby created.

 

 

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1The Board shall consist of 5 members who are appointed by the
2Governor, by and with the advice and consent of the Senate. The
3members appointed shall include representatives of education,
4business, and the general public. One of the members so
5appointed shall be designated by the Governor at the time the
6appointment is made as the chairperson of the Board. The
7initial members of the Board may be appointed any time after
8the effective date of this amendatory Act of 1997. The regular
9term of each member of the Board shall be for 4 years from the
10third Monday of January of the year in which the term of the
11member's appointment is to commence, except that of the 5
12initial members appointed to serve on the Board, the member who
13is appointed as the chairperson shall serve for a term that
14commences on the date of his or her appointment and expires on
15the third Monday of January, 2002, and the remaining 4 members,
16by lots drawn at the first meeting of the Board that is held
17after all 5 members are appointed, shall determine 2 of their
18number to serve for terms that commence on the date of their
19respective appointments and expire on the third Monday of
20January, 2001, and 2 of their number to serve for terms that
21commence on the date of their respective appointments and
22expire on the third Monday of January, 2000. All members
23appointed to serve on the Board shall serve until their
24respective successors are appointed and confirmed. Vacancies
25shall be filled in the same manner as original appointments. If
26a vacancy in membership occurs at a time when the Senate is not

 

 

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1in session, the Governor shall make a temporary appointment
2until the next meeting of the Senate, when he or she shall
3appoint, by and with the advice and consent of the Senate, a
4person to fill that membership for the unexpired term. If the
5Senate is not in session when the initial appointments are
6made, those appointments shall be made as in the case of
7vacancies.
8    The Education Funding Advisory Board shall be deemed
9established, and the initial members appointed by the Governor
10to serve as members of the Board shall take office, on the date
11that the Governor makes his or her appointment of the fifth
12initial member of the Board, whether those initial members are
13then serving pursuant to appointment and confirmation or
14pursuant to temporary appointments that are made by the
15Governor as in the case of vacancies.
16    The State Board of Education shall provide such staff
17assistance to the Education Funding Advisory Board as is
18reasonably required for the proper performance by the Board of
19its responsibilities.
20    For school years after the 2000-2001 school year through
21the 2015-2016 school year, the Education Funding Advisory
22Board, in consultation with the State Board of Education, shall
23make recommendations as provided in this subsection (M) to the
24General Assembly for the foundation level under subdivision
25(B)(3) of this Section and for the supplemental general State
26aid grant level under subsection (H) of this Section for

 

 

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1districts with high concentrations of children from poverty.
2The recommended foundation level shall be determined based on a
3methodology which incorporates the basic education
4expenditures of low-spending schools exhibiting high academic
5performance. The Education Funding Advisory Board shall make
6such recommendations to the General Assembly on January 1 of
7odd numbered years, beginning January 1, 2001. After the
82015-2016 school year, the Education Funding Advisory Board
9shall make recommendations pursuant to subsection (k) of
10Section 18-8.15 of this Code.
 
11(N) (Blank).
 
12(O) References.
13    (1) References in other laws to the various subdivisions of
14Section 18-8 as that Section existed before its repeal and
15replacement by this Section 18-8.05 shall be deemed to refer to
16the corresponding provisions of this Section 18-8.05, to the
17extent that those references remain applicable.
18    (2) References in other laws to State Chapter 1 funds shall
19be deemed to refer to the supplemental general State aid
20provided under subsection (H) of this Section.
 
21(P) Public Act 93-838 and Public Act 93-808 make inconsistent
22changes to this Section. Under Section 6 of the Statute on
23Statutes there is an irreconcilable conflict between Public Act

 

 

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193-808 and Public Act 93-838. Public Act 93-838, being the last
2acted upon, is controlling. The text of Public Act 93-838 is
3the law regardless of the text of Public Act 93-808.
 
4(Q) State Fiscal Year 2015 Payments.
5    For payments made for State fiscal year 2015, the State
6Board of Education shall, for each school district, calculate
7that district's pro-rata share of a minimum sum of $13,600,000
8or additional amounts as needed from the total net General
9State Aid funding as calculated under this Section that shall
10be deemed attributable to the provision of special educational
11facilities and services, as defined in Section 14-1.08 of this
12Code, in a manner that ensures compliance with maintenance of
13State financial support requirements under the federal
14Individuals with Disabilities Education Act. Each school
15district must use such funds only for the provision of special
16educational facilities and services, as defined in Section
1714-1.08 of this Code, and must comply with any expenditure
18verification procedures adopted by the State Board of
19Education.
20(Source: P.A. 98-972, eff. 8-15-14; 99-2, eff. 3-26-15; 99-194,
21eff. 7-30-15.)
 
22    (105 ILCS 5/18-8.10)
23    Sec. 18-8.10. Fast growth grants.
24    (a) If there has been an increase in a school district's

 

 

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1student population over the most recent 2 school years of (i)
2over 1.5% in a district with over 10,000 pupils in average
3daily attendance (as defined in Section 18-8.05 or 18-8.15 of
4this Code) or (ii) over 7.5% in any other district, then the
5district is eligible for a grant under this Section, subject to
6appropriation.
7    (b) The State Board of Education shall determine a per
8pupil grant amount for each school district. The total grant
9amount for a district for any given school year shall equal the
10per pupil grant amount multiplied by the difference between the
11number of pupils in average daily attendance for the 2 most
12recent school years.
13    (c) Funds for grants under this Section must be
14appropriated to the State Board of Education in a separate line
15item for this purpose. If the amount appropriated in any fiscal
16year is insufficient to pay all grants for a school year, then
17the amount appropriated shall be prorated among eligible
18districts. As soon as possible after funds have been
19appropriated to the State Board of Education, the State Board
20of Education shall distribute the grants to eligible districts.
21    (d) If a school district intentionally reports incorrect
22average daily attendance numbers to receive a grant under this
23Section, then the district shall be denied State aid in the
24same manner as State aid is denied for intentional incorrect
25reporting of average daily attendance numbers under Section
2618-8.05 or 18-8.15 of this Code.

 

 

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1(Source: P.A. 93-1042, eff. 10-8-04.)
 
2    (105 ILCS 5/18-8.15 new)
3    Sec. 18-8.15. Basis for apportionment of primary State
4financial aid to the common schools for the 2016-2017 and
5subsequent school years.
6    (a) General provisions.
7    (1) The provisions of this Section apply to the 2016-2017
8and subsequent school years. The system of primary State
9financial aid provided for in this Section is designed to
10ensure that, through a combination of State financial aid and
11required local resources, the financial support provided each
12pupil in attendance equals or exceeds a prescribed per pupil
13Foundation Level, with adjustments to the Foundation Level
14based on each school district's pupil characteristics. This
15formula approach imputes a level of per pupil Available Local
16Resources and provides for the basis to calculate a per pupil
17level of primary State financial aid that, when added to
18Available Local Resources, equals or exceeds the school
19district's adjusted Foundation Level. The amount of per pupil
20primary State financial aid for school districts, in general,
21varies in inverse relation to Available Local Resources.
22    (2) To address decreases in State funding resulting from
23this amendatory Act of the 99th General Assembly, the amount of
24primary State aid provided to a school district shall be
25subject to increase through supplemental grants as provided in

 

 

09900SB0231sam001- 354 -LRB099 03162 NHT 47157 a

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

 

 

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1    otherwise provided in this Section.
2        (C) If a school district operates a full-year school
3    under Section 10-19.1 of this Code, the primary State aid
4    to the school district shall be determined by the State
5    Board of Education in accordance with this Section as near
6    as may be applicable.
7    (4) Subject to the requirements of subsection (j) of this
8Section, the school board of any district receiving any of the
9grants provided for in this Section may apply those funds to
10any fund so received for which that school board is authorized
11to make expenditures by law.
12    (5) As used in this Section, the following terms, when
13capitalized, shall have the meanings ascribed in this paragraph
14(5):
15    "Additional Weight" means a number added to 1.0 to
16calculate the District Weighted Average in accordance with
17subsection (b) of this Section. Each Additional Weight is
18calculated using the Weighting Factors and Weighting
19Percentages in paragraph (5) of subsection (b) of this Section.
20    "Adequacy Grant Loss" means the product of (i) the absolute
21value of the lesser loss of a school district's Base Year Loss
22or Current Year Loss and (ii) the school district's Prior Year
23ADA.
24    "Adequacy Target" means, for a particular school district,
25the product of $8,672 and the school district's District
26Weighted Average.

 

 

09900SB0231sam001- 356 -LRB099 03162 NHT 47157 a

1    "Adequacy Target Percent" means, for a particular school
2district, the percentage figure resulting from dividing the
3school district's operating expense per pupil by its Adequacy
4Target.
5    "Adjusted Flat Grant Level" means, for each school district
6not subject to property tax extension limitations as imposed
7under the Property Tax Extension Limitation Law, the Flat Grant
8Level multiplied by the percentage, if any, of which the school
9district's combined tax rate for educational and operations and
10maintenance purposes is of the maximum combined tax rates for
11educational and operations and maintenance purposes specified
12for that type of school district under Section 17-2 of this
13Code. For a school district subject to property tax extension
14limitations as imposed under the Property Tax Extension
15Limitation Law or a school district whose combined tax rate for
16educational and operations and maintenance purposes is at least
17the maximum combined tax rates for educational and operations
18and maintenance purposes specified for that type of school
19district under Section 17-2 of this Code, the Adjusted Flat
20Grant Level is equal to the Flat Grant Level.
21    "Advanced Standing Pupil" means a pupil in grades 9 through
2212 who has completed (i) one or more Advanced Placement courses
23and received a score of 3 or higher on an Advanced Placement
24examination or (ii) a course providing dual credit through an
25Illinois public community college or university in which the
26student was awarded at least 3 credit hours of postsecondary

 

 

09900SB0231sam001- 357 -LRB099 03162 NHT 47157 a

1education credit.
2    "Alternative School" means a public school that is created
3and operated by a regional superintendent of schools and
4approved by the State Board of Education.
5    "Available Local Resources Per Pupil" means a computation
6of local financial support, calculated on the basis of Average
7Daily Attendance and derived as provided pursuant to subsection
8(d) of this Section.
9    "Average Daily Attendance" or "ADA" means the count of
10pupils in attendance derived as provided pursuant to subsection
11(c) of this Section.
12    "Base Tax Year" means the property tax levy year used to
13calculate the Budget Year allocation of primary State aid.
14    "Base Tax Year's Extension" means the product of the
15equalized assessed valuation utilized by the county clerk in
16the Base Tax Year multiplied by the limiting rate as calculated
17by the county clerk and defined in the Property Tax Extension
18Limitation Law.
19    "Base Year Loss" means the amount, if any, by which a
20school district's per-pupil primary State aid allotment in the
212016-2017 school year is less than its Per-pupil Hold Harmless
22State Funding, after accounting for any supplemental grants to
23the school district pursuant to paragraphs (2) and (3) of
24subsection (h) of this Section.
25    "Budget Year" means the school year for which primary State
26aid is calculated and awarded under subsection (e) of this

 

 

09900SB0231sam001- 358 -LRB099 03162 NHT 47157 a

1Section.
2    "Career Pathway Completer" means a pupil who has graduated
3from high school and completed a Career Pathway Program in
4accordance with requirements established by the State Board of
5Education.
6    "Career Pathway Participant" means a pupil in grades 10
7through 12 participating in a Career Pathway Program in
8accordance with requirements established by the State Board of
9Education.
10    "Career Pathway Program" means a series of connected
11education and training strategies and support services meeting
12the requirements of this definition and other requirements
13established by the State Board of Education that enable
14individuals to secure credentials and degrees with labor market
15value, prepare for employment within an occupational area, and
16advance to higher levels of future education and employment in
17that area. Career pathway programs must incorporate (i)
18rigorous academics that prepare students for success in
19community colleges and universities, as well as in
20apprenticeship and other postsecondary training programs; (ii)
21career-based learning through at least 2 years of sequenced
22coursework or equivalent competencies emphasizing practical
23application within a particular sector and occupational area;
24(iii) professional learning, via job shadowing,
25apprenticeships, internships, or other professional
26skill-building opportunities; (iv) support services that

 

 

09900SB0231sam001- 359 -LRB099 03162 NHT 47157 a

1include academic and career counseling and planning; and (v)
2opportunities for attainment of stackable credentials and
3degrees with labor market value.
4    "Corporate Personal Property Replacement Taxes" means
5funds paid to school districts pursuant to "An Act in relation
6to the abolition of ad valorem personal property tax and the
7replacement of revenues lost thereby, and amending and
8repealing certain Acts and parts of Acts in connection
9therewith", certified August 14, 1979, as amended (Public Act
1081-1st S.S.-1).
11    "Current Year Loss" means the amount, if any, by which a
12school district's per-pupil primary State aid allotment in any
13school year after the 2017-2018 school year is less than its
14Per-pupil Hold Harmless State Funding, after accounting for any
15supplemental grants to the school district pursuant to
16paragraphs (2) and (3) of subsection (h) of this Section.
17    "DHS Low-income Eligible Count" means the low-income
18eligible pupil count as determined by the Department of Human
19Services (based on the number of pupils who are eligible for at
20least one of the following low-income programs: Medicaid, the
21Children's Health Insurance Program, TANF, or the Supplemental
22Nutrition Assistance Program, excluding pupils who are
23eligible for services provided by the Department of Children
24and Family Services) averaged over the 3 immediately preceding
25fiscal years, based on the count as of July 1 of each fiscal
26year.

 

 

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1    "District Weighted Average" means a figure used to derive a
2school district's Per-pupil Aid level, calculated pursuant to
3subsection (b) of this Section.
4    "English Learner Pupil" means an English learner, as
5defined in Section 14C-2 of this Code, participating in a
6program of transitional bilingual education or a transitional
7program of instruction meeting the requirements of Article 14C
8of this Code.
9    "Extension Limitation Equalized Assessed Valuation" means
10a figure calculated by the State Board of Education pursuant to
11paragraph (2) of subsection (h) of this Section for school
12districts subject to property tax extension limitations as
13imposed under the Property Tax Extension Limitation Law.
14    "Extension Limitation Ratio" means a numerical ratio in
15which the numerator is the Base Tax Year's Tax Extension and
16the denominator is the Preceding Tax Year's Tax Extension.
17    "Flat Grant Level" means a dollar amount equal to 3.0% of a
18school district's Weighted Foundation Level.
19    "Foundation Level" means a prescribed level of per pupil
20financial support, as provided for in subsection (b) of this
21Section.
22    "Gifted Pupil" means a pupil in kindergarten through grade
238 receiving services through a program for gifted and talented
24children that has been approved by a school board and that is
25described on a school district's Internet website.
26    "Hold Harmless State Funding" means the amount of State

 

 

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1funds allotted to a school district during the 2015-2016 school
2year pursuant to the following Sections of this Code, as
3calculated by the State Board of Education: Sections 18-8.05;
414-7.02b; 14-7.03, but only with respect to reimbursement for
5children from foster family homes; 14-13.01, except for
6reimbursement of the cost of transportation pursuant to that
7Section; 14C-12; and 18-4.3. For a school district organized
8under Article 34 of this Code, "Hold Harmless State Funding"
9also includes the funds allotted to the school district
10pursuant to Section 1D-1 of this Code attributable to funding
11programs authorized by the Sections of this Code listed in this
12definition.
13    "Laboratory School" means a public school that is created
14and operated by a public university and approved by the State
15Board of Education.
16    "Low-income Pupil" means a pupil from a household with a
17household income level at or below 185% of the poverty
18guidelines updated periodically in the Federal Register by the
19U.S. Department of Health and Human Services under the
20authority of 42 U.S.C. 9902(2).
21    "Operating Tax Rate" means all school district property
22taxes extended for all purposes, except bond and interest,
23summer school, rent, capital improvement, and vocational
24education building purposes.
25    "Per-pupil Aid" means a school district's Weighted
26Foundation Level less its Available Local Resources Per Pupil.

 

 

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1    "Per-pupil Hold Harmless State Funding" means a school
2district's Hold Harmless State Funding, divided by the school
3district's Average Daily Attendance figure as calculated
4pursuant to subsection (F) of Section 18-8.05 of this Code
5during the 2015-2016 school year.
6    "Preceding Tax Year" means the property tax levy year
7immediately preceding the Base Tax Year.
8    "Preceding Tax Year's Tax Extension" means the product of
9the equalized assessed valuation utilized by the county clerk
10in the Preceding Tax Year multiplied by the Operating Tax Rate.
11    "Prior Year ADA" means the number of pupils within the
12count of pupils in attendance used for Average Daily Attendance
13calculations for the school year immediately preceding the
14school year for which primary State aid is calculated and
15awarded under subsection (e) of this Section.
16    "PTELL EAV floor school district" means either (i) a school
17district with an Adequacy Target Percent of 100% or higher (as
18calculated pursuant to paragraph (4) of subsection (h) of this
19Section, notwithstanding any limitations in that paragraph on
20the school years in which adequacy grants are administered) or
21(ii) a school district with an Adequacy Target Percent of less
22than 100% if the school district has an Operating Tax Rate that
23is 95% or lower than the applicable statewide weighted-average
24Operating Tax Rate for that type of school district (as
25calculated pursuant to paragraph (4) of subsection (h) of this
26Section, notwithstanding any limitations in that paragraph on

 

 

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1the school years in which adequacy grants are administered).
2    "PTELL PSA Adjustment" means the amount of primary State
3aid a school district would receive under subsection (e) of
4this Section if the Extension Limitation Equalized Assessed
5Valuation was used for calculating the school district's
6primary State aid for the Budget Year instead of the district's
7equalized assessed valuation as calculated pursuant to
8paragraphs (1) and (2) of subsection (g) of this Section.
9    "Special Education Summer School Pupil" means a child with
10disabilities participating in a summer school program meeting
11the fiscal year 2016 eligibility requirements for a summer
12school grant under Section 18-4.3 of this Code.
13    "Statewide weighted-average" means an average calculation
14for all school districts in this State in which a weighting is
15assigned to each school district's quantity in the average
16calculation based on its Prior Year ADA.
17    "Total Primary State Aid" means the amount of primary State
18aid allotted to a school district pursuant to subsection (e) of
19this Section and any supplemental grants allotted pursuant to
20paragraphs (2), (3), and (4) of subsection (h) of this Section.
21    "Weighted Foundation Level" means the Foundation Level
22multiplied by the District Weighted Average.
23    "Weighted Foundation Level Budget" means, for a particular
24school district, the Weighted Foundation Level multiplied by
25the ADA.
26    "Weighting Factor" means, for each Additional Weight

 

 

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1classification in paragraph (5) of subsection (b) of this
2Section, the amount multiplied by the Weighting Percentage to
3calculate the Additional Weight figure.
4    "Weighting Percentage" means, for each Additional Weight
5classification in paragraph (5) of subsection (b) of this
6Section, the amount multiplied by the Weighting Factor to
7calculate the Additional Weight figure.
8    (b) Foundation Level; weighting for district pupil
9characteristics.
10    (1) The Foundation Level is a figure established by this
11State representing the minimum level of per pupil financial
12support that should be available to provide for the basic
13education of each pupil in Average Daily Attendance in a public
14school in this State. Then, for each school district, the
15Foundation Level is weighted in accordance with the Additional
16Weights set forth in paragraph (5) of this subsection (b) to
17account for the pupil characteristics within that school
18district, and, if applicable, a Regionalization Factor
19determined pursuant to paragraph (6) of this subsection (b) is
20applied to account for regional variation in wages. As set
21forth in this Section, each school district is assumed to exert
22a sufficient local taxing effort such that, in combination with
23the aggregate of primary State financial aid provided the
24district, an aggregate of State and local resources are
25available to meet the basic education needs of pupils in the
26district.

 

 

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1    (2) Subject to paragraph (3) of this subsection (b), for
2the 2016-2017 school year and each school year thereafter, the
3Foundation Level of support is $6,119 or such greater amount as
4may be established by law by the General Assembly.
5    (3) If the appropriation in any fiscal year for primary
6State aid and the supplemental grants provided for in
7paragraphs (2) through (4) of subsection (h) of this Section is
8insufficient to pay the amounts required under the calculations
9set forth in this Section, then the State Board of Education
10shall adjust the Foundation Level to an amount so that the
11appropriation is sufficient to pay all primary State aid and
12the supplemental grants provided for in paragraphs (2) through
13(4) of subsection (h) of this Section.
14    (4) For each school district, the Foundation Level shall be
15adjusted by multiplying the Foundation Level by a District
16Weighted Average figure, resulting in the school district's
17Weighted Foundation Level. The District Weighted Average
18figure for a particular school district shall be a number equal
19to 1.0 plus each of the Additional Weights described in
20paragraph (5) of this subsection (b) applicable to that
21district. In addition, if applicable for a particular school
22district pursuant to paragraph (6) of this subsection (b), the
231.0 figure and each Additional Weight shall be multiplied by a
24Regionalization Factor to determine its District Weighted
25Average calculation. For each Additional Weight, the figure
26included in the District Weighted Average prior to the

 

 

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1application of any Regionalization Factor is the product of the
2Weighting Factor multiplied by the Weighting Percentage, as
3both are specified in paragraph (5) of this subsection (b). For
4each school district, the State Board of Education shall
5publicly report the district's District Weighted Average,
6Weighted Foundation Level, Additional Weights, Regionalization
7Factor multiplier, amount of the Weighted Foundation Level
8Budget attributable to each Additional Weight on an aggregate
9and per-student basis, and amount of primary State aid received
10attributable to each Additional Weight on an aggregate and
11per-student basis.
12    (5) Additional Weights:
13        (A) English Learner Pupils:
14            (i) Weighting Factor of 0.20; and
15            (ii) Weighting Percentage equal to the Prior Year
16        ADA of English Learner Pupils, divided by the Prior
17        Year ADA for all pupils.
18        (B) Low-Income Pupils: The higher of the weights
19    determined through the following 2 methods:
20            (i) Regular low-income method:
21                (I) Weighting Factor of 0.25; and
22                (II) Weighting Percentage equal to the DHS
23            Low-income Eligible Count divided by the Prior
24            Year ADA for all pupils.
25            (ii) Low-income concentration method:
26                (I) Weighting Factor of 0.80 multiplied by the

 

 

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1            Weighting Percentage as calculated in accordance
2            with the regular low-income method, provided that
3            the Weighting Factor pursuant to this method shall
4            not exceed 0.75; and
5                (II) Weighting Percentage equal to the
6            Weighting Percentage as calculated in accordance
7            with the regular low-income method.
8        (C) Children with disabilities:
9            (i) Weighting Factor of 1.0; and
10            (ii) Weighting Percentage equal to the higher of
11        the percentages in the following items as applicable to
12        each school district:
13                (I) a Weighting Percentage established by the
14            State Board of Education prior to the start of each
15            State fiscal year representative of the statewide
16            average percentage of students with disabilities
17            based on the most recent data collected by the
18            State Board of Education; and
19                (II) Weighting Percentage under this item (II)
20            for any school district that demonstrates, in
21            accordance with requirements established by the
22            State Board of Education, that the percentage of
23            its students with disabilities exceeds the
24            representative statewide average percentage
25            established pursuant to item (I) of this clause
26            (ii). For any such school district, the Weighting

 

 

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1            Percentage shall equal the lesser of (i) the Prior
2            Year ADA of the district's students with
3            disabilities (as verified by the State Board of
4            Education) divided by the Prior Year ADA for all
5            pupils and (ii) the representative statewide
6            average percentage established pursuant to item
7            (I) of this clause (ii) plus 5 percentage points.
8        (D) Special Education Summer School Pupils:
9            (i) Weighting Factor of 0.03; and
10            (ii) Weighting Percentage equal to the Prior Year
11        ADA of Special Education Summer School Pupils, divided
12        by the Prior Year ADA for all pupils.
13        (E) Gifted Pupils:
14            (i) Weighting Factor of 0.01; and
15            (ii) Weighting Percentage equal to the Prior Year
16        ADA of Gifted Pupils, divided by the Prior Year ADA for
17        all pupils, provided that the Prior Year ADA of Gifted
18        Pupils used for such calculation shall not exceed 5% of
19        the Prior Year ADA for pupils in kindergarten through
20        grade 8.
21        (F) Pupils in Kindergarten Providing a Full Day of
22    Attendance Through Grade 3:
23            (i) Weighting Factor of 0.05; and
24            (ii) Weighting Percentage equal to the Prior Year
25        ADA of pupils in kindergarten providing a full day of
26        attendance through grade 3, divided by the Prior Year

 

 

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1        ADA for all pupils.
2        (G) Pupils in Grade 9:
3            (i) Weighting Factor of 0.15; and
4            (ii) Weighting Percentage equal to the Prior Year
5        ADA of pupils in grade 9, divided by the Prior Year ADA
6        for all pupils.
7        (H) In the 2018-2019 school year and subsequent school
8    years, Advanced Standing Pupils, Career Pathway
9    Participants, and Career Pathway Completers:
10            (i) For Advanced Standing Pupils:
11                (I) Weighting Factor of 0.02; and
12                (II) Weighting Percentage equal to the Prior
13            Year ADA of Advanced Standing Pupils, divided by
14            the Prior Year ADA for all pupils.
15            (ii) For Career Pathway Participants:
16                (I) Weighting Factor of 0.02; and
17                (II) Weighting Percentage equal to the Prior
18            Year ADA of Career Pathway Participants, divided
19            by the Prior Year ADA for all pupils.
20            (iii) For Career Pathway Completers:
21                (I) Weighting Factor of 0.02; and
22                (II) Weighting Percentage equal to the Prior
23            Year ADA of Career Pathway Completers, divided by
24            the Prior Year ADA for all pupils.
25    (6) For each school district with a Regionalization Index
26Value higher than the State weighted-average Regionalization

 

 

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1Index Value, the base value of 1.0 and each Additional Weight
2included in the calculation of its District Weighted Average
3shall be multiplied by a Regionalization Factor calculated in
4accordance with this paragraph (6). The Regionalization Factor
5shall equal the school district's Regionalization Index Value
6divided by the statewide weighted-average Regionalization
7Index Value for the most recent year that the data is compiled.
8For purposes of this paragraph (6), "Regionalization Index
9Value" means the Comparable Wage Index developed for the
10National Center for Education Statistics and published for each
11school district. This Index measures systematic, regional
12variations in the salaries of college graduates who are not
13educators. The State Board of Education may contract for the
14calculation of the Comparable Wage Index using the same
15methodology if the Comparable Wage Index developed for the
16National Center for Education Statistics becomes unavailable.
17For any school district that does not have a Comparable Wage
18Index, the State Board of Education shall estimate a
19Regionalization Index Value using reasonably available
20information.
21    (c) Average Daily Attendance.
22    (1) For purposes of calculating primary State aid pursuant
23to subsection (e) of this Section, an Average Daily Attendance
24figure shall be utilized. The Average Daily Attendance figure
25for formula calculation purposes shall be the monthly average
26of the total number of pupils in attendance for each school

 

 

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1district, as further averaged for the best 3 months of pupil
2attendance for each school district. In compiling the figures
3for the number of pupils in attendance, school districts and
4the State Board of Education shall, for purposes of primary
5State aid funding, conform attendance figures to the
6requirements of subsection (f) of this Section.
7    (2) The Average Daily Attendance figures utilized in
8subsections (d) and (e) of this Section shall be the requisite
9attendance data for the school year immediately preceding the
10school year for which primary State aid is being calculated or
11the average of the attendance data for the 3 preceding school
12years, whichever is greater. The Average Daily Attendance
13figures utilized for subsection (b) of this Section shall be
14the requisite attendance data for the school year immediately
15preceding the school year for which primary State aid is being
16calculated.
17    (d) Available Local Resources Per Pupil.
18    (1) For purposes of calculating primary State aid pursuant
19to subsection (e) of this Section, a representation of
20Available Local Resources Per Pupil, as that term is defined
21and determined in this subsection (d), shall be utilized.
22Available Local Resources Per Pupil shall include a calculated
23dollar amount representing school district revenues from local
24property taxes and from Corporate Personal Property
25Replacement Taxes, expressed on the basis of pupils in Average
26Daily Attendance. For a school district organized under Article

 

 

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134 of this Code, calculation of available local resources for
2this subsection (d) and paragraph (2) of subsection (h) of this
3Section shall exclude up to, but no more than, $250,000,000 of
4any amounts actually paid by the board of education into a
5Public School Teachers' Pension and Retirement Fund created
6pursuant to Article 17 of the Illinois Pension Code for its
7certified employer contribution during the fiscal year
8immediately preceding the fiscal year for which primary State
9aid is being calculated.
10    (2) In determining a school district's revenue from local
11property taxes, the State Board of Education shall utilize the
12equalized assessed valuation of all taxable property of each
13school district as of September 30 of the previous year. The
14equalized assessed valuation utilized shall be obtained and
15determined as provided in subsection (g) of this Section.
16    (3) For school districts maintaining grades kindergarten
17through 12, local property tax revenues per pupil shall be
18calculated as the product of the applicable equalized assessed
19valuation for the district multiplied by 3.00%, and divided by
20the district's Average Daily Attendance figure. For school
21districts maintaining grades kindergarten through 8, local
22property tax revenues per pupil shall be calculated as the
23product of the applicable equalized assessed valuation for the
24district multiplied by 2.30%, and divided by the district's
25Average Daily Attendance figure. For school districts
26maintaining grades 9 through 12, local property tax revenues

 

 

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1per pupil shall be the applicable equalized assessed valuation
2of the district multiplied by 1.05%, and divided by the
3district's Average Daily Attendance figure.
4    For partial elementary unit districts created pursuant to
5Article 11E of this Code, local property tax revenues per pupil
6shall be calculated as the product of the equalized assessed
7valuation for property within the partial elementary unit
8district for elementary purposes, as defined in Article 11E of
9this Code, multiplied by 2.06% and divided by the district's
10Average Daily Attendance figure, plus the product of the
11equalized assessed valuation for property within the partial
12elementary unit district for high school purposes, as defined
13in Article 11E of this Code, multiplied by 0.94% and divided by
14the district's Average Daily Attendance figure.
15    (4) The Corporate Personal Property Replacement Taxes paid
16to each school district during the calendar year one year
17before the calendar year in which a school year begins, divided
18by the Average Daily Attendance figure for that district, shall
19be added to the local property tax revenues per pupil as
20derived by the application of paragraph (3) of this subsection
21(d). The sum of these per pupil figures for each school
22district shall constitute Available Local Resources Per Pupil
23as that term is utilized in subsection (e) of this Section in
24the calculation of primary State aid.
25    (e) Computation of primary State aid.
26    (1) For each school year, the amount of primary State aid

 

 

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1allotted to a school district shall be computed by the State
2Board of Education as provided in this subsection (e).
3    (2) Subject to paragraph (4) of this subsection (e), for
4any school district for which the Per-pupil Aid is more than
5the Flat Grant Level, primary State aid for that district shall
6be in an amount equal to its Per-pupil Aid multiplied by its
7Average Daily Attendance figure.
8    (3) Subject to paragraph (4) of this subsection (e), for
9any school district for which the Per-pupil Aid is equal to or
10less than the Flat Grant Level, primary State aid for that
11district shall be in an amount equal to the Adjusted Flat Grant
12Level multiplied by the district's Average Daily Attendance
13figure.
14    (4) From financial assistance provided to school districts
15under this Section, the State Board of Education shall withhold
16the following amounts for the following purposes:
17        (A) For each school district with an Additional Weight
18    for Pupils of Limited English-speaking Ability, the State
19    Board of Education shall withhold an amount not exceeding
20    one and one-half percent of the district's Weighted
21    Foundation Level Budget attributable to Pupils of Limited
22    English-speaking Ability for (i) State Board of Education
23    staff for administration and (ii) contractual services by a
24    not-for-profit entity for technical assistance,
25    professional development, and other support to school
26    districts and educators for services for these pupils. To

 

 

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1    be eligible to receive the contract under clause (ii) of
2    this subdivision (A), the not-for-profit entity must have
3    experience providing such services in a school district
4    having a population exceeding 500,000; one or more school
5    districts in any of the counties of Lake, McHenry, DuPage,
6    Kane, and Will; and one or more school districts elsewhere
7    in this State.
8        (B) The State Board of Education shall withhold an
9    amount not exceeding one-half percent of each school
10    district's Weighted Foundation Level Budget attributable
11    to children with disabilities and Special Education Summer
12    School Pupils for State Board of Education staff and
13    contractual services for administration, professional
14    development, and support to school districts for services
15    for children with disabilities. The State Board of
16    Education shall use a portion of the withheld amounts for
17    developing or supporting electronic individualized
18    educational programs.
19    (f) Compilation of Average Daily Attendance.
20    (1) Each school district shall, on or before July 1 of each
21year, submit to the State Board of Education, in a manner
22prescribed by the State Board of Education, attendance figures
23for the school year that began in the preceding calendar year.
24The attendance information so transmitted shall identify the
25Average Daily Attendance figures for each month of the school
26year. School districts shall calculate Average Daily

 

 

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1Attendance as provided in subdivisions (A), (B), and (C) of
2this paragraph (1).
3        (A) In districts that do not hold year-round classes,
4    days of attendance in August shall be added to the month of
5    September and any days of attendance in June shall be added
6    to the month of May.
7        (B) In districts in which all buildings hold year-round
8    classes, days of attendance in July and August shall be
9    added to the month of September and any days of attendance
10    in June shall be added to the month of May.
11        (C) In districts in which some buildings, but not all,
12    hold year-round classes, for the non-year-round buildings,
13    days of attendance in August shall be added to the month of
14    September and any days of attendance in June shall be added
15    to the month of May. The Average Daily Attendance for the
16    year-round buildings shall be computed as provided in
17    subdivision (B) of this paragraph (1). To calculate the
18    Average Daily Attendance for the district, the Average
19    Daily Attendance for the year-round buildings shall be
20    multiplied by the days in session for the non-year-round
21    buildings for each month and added to the monthly
22    attendance of the non-year-round buildings.
23    (2) For the 2016-2017 school year, days of attendance by
24pupils shall be counted in accordance with paragraphs (1) and
25(2) of subsection (F) of Section 18-8.05 of this Code. For the
262017-2018 and subsequent school years, days of attendance by

 

 

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1pupils shall be counted in accordance with administrative rules
2adopted by the State Board of Education that address, without
3limitation, days of partial attendance, days utilized for
4in-service training and parent-teacher conferences,
5partial-day kindergarten, hospitalized or homebound students,
6days when assessments are administered, remote educational
7programs, virtual learning, work-based learning, dual credit
8programs, and competency-based education. Such rules shall be
9adopted by the State Board of Education by no later than April
101, 2017.
11    (g) Equalized assessed valuation data.
12    (1) For purposes of the calculation of Available Local
13Resources Per Pupil required pursuant to subsection (d) of this
14Section, the State Board of Education shall secure from the
15Department of Revenue the value as equalized or assessed by the
16Department of Revenue of all taxable property of every school
17district, together with (i) the applicable tax rate used in
18extending taxes for the funds of the district as of September
1930 of the previous year and (ii) the limiting rate for all
20school districts subject to property tax extension limitations
21as imposed under the Property Tax Extension Limitation Law.
22    The Department of Revenue shall add to the equalized
23assessed value of all taxable property of each school district
24situated entirely or partially within a county that is or was
25subject to the provisions of Section 15-176 or 15-177 of the
26Property Tax Code (A) an amount equal to the total amount by

 

 

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1which the homestead exemption allowed under Section 15-176 or
215-177 of the Property Tax Code for real property situated in
3that school district exceeds the total amount that would have
4been allowed in that school district if the maximum reduction
5under Section 15-176 was $5,000 and (B) an amount equal to the
6aggregate amount for the taxable year of all additional
7exemptions under Section 15-175 of the Property Tax Code for
8owners with a household income of $30,000 or less. The county
9clerk of any county that is or was subject to the provisions of
10Section 15-176 or 15-177 of the Property Tax Code shall
11annually calculate and certify to the Department of Revenue for
12each school district all homestead exemption amounts under
13Section 15-176 or 15-177 of the Property Tax Code and all
14amounts of additional exemptions under Section 15-175 of the
15Property Tax Code for owners with a household income of $30,000
16or less. It is the intent of this paragraph that if the general
17homestead exemption for a parcel of property is determined
18under Section 15-176 or 15-177 of the Property Tax Code rather
19than Section 15-175, then the calculation of Available Local
20Resources Per Pupil shall not be affected by the difference, if
21any, between the amount of the general homestead exemption
22allowed for that parcel of property under Section 15-176 or
2315-177 of the Property Tax Code and the amount that would have
24been allowed had the general homestead exemption for that
25parcel of property been determined under Section 15-175 of the
26Property Tax Code. It is further the intent of this paragraph

 

 

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1that if additional exemptions are allowed under Section 15-175
2of the Property Tax Code for owners with a household income of
3less than $30,000, then the calculation of Available Local
4Resources Per Pupil shall not be affected by the difference, if
5any, because of those additional exemptions.
6    This equalized assessed valuation, as adjusted further by
7the requirements of this subsection (g), shall be utilized in
8the calculation of Available Local Resources Per Pupil.
9    (2) The equalized assessed valuation in paragraph (1) of
10this subsection (g) shall be adjusted, as applicable, in the
11following manner:
12        (A) For the purposes of calculating primary State aid
13    under this Section, with respect to any part of a school
14    district within a redevelopment project area in respect to
15    which a municipality has adopted tax increment allocation
16    financing pursuant to the Tax Increment Allocation
17    Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
18    of the Illinois Municipal Code, or the Industrial Jobs
19    Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
20    Illinois Municipal Code, no part of the current equalized
21    assessed valuation of real property located in any such
22    project area that is attributable to an increase above the
23    total initial equalized assessed valuation of such
24    property shall be used as part of the equalized assessed
25    valuation of the district, until such time as all
26    redevelopment project costs have been paid, as provided in

 

 

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1    Section 11-74.4-8 of the Tax Increment Allocation
2    Redevelopment Act or in Section 11-74.6-35 of the
3    Industrial Jobs Recovery Law. For the purpose of the
4    equalized assessed valuation of the district, the total
5    initial equalized assessed valuation or the current
6    equalized assessed valuation, whichever is lower, shall be
7    used until such time as all redevelopment project costs
8    have been paid.
9        (B) The real property equalized assessed valuation for
10    a school district shall be adjusted by subtracting from the
11    real property value as equalized or assessed by the
12    Department of Revenue for the district an amount computed
13    by dividing the amount of any abatement of taxes under
14    Section 18-170 of the Property Tax Code by 3.00% for a
15    district maintaining grades kindergarten through 12, by
16    2.30% for a district maintaining grades kindergarten
17    through 8, or by 1.05% for a district maintaining grades 9
18    through 12 and adjusted by an amount computed by dividing
19    the amount of any abatement of taxes under subsection (a)
20    of Section 18-165 of the Property Tax Code by the same
21    percentage rates for district type as specified in this
22    subdivision (B).
23    (3) If a school district's boundaries span multiple
24counties, then the Department of Revenue shall send to the
25State Board of Education, for the purpose of calculating
26primary State aid, the limiting rate and individual rates by

 

 

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1purpose for the county that contains the majority of the school
2district's Equalized Assessed Valuation.
3    (h) Supplemental grants.
4    (1) The Total Primary State Aid a school district is
5allotted pursuant to this Section shall be subject to
6adjustment as provided in this subsection (h). Any supplemental
7grants allotted to school districts pursuant to this subsection
8(h) shall be paid in conjunction with the school district's
9payments of primary State aid. When calculating the
10supplemental grants for a particular school district under this
11Section, the State Board of Education shall first calculate the
12supplemental grant, if any, under paragraph (2) of this
13subsection (h) for school districts subject to property tax
14extension limitations. The State Board of Education shall next
15calculate the supplemental grant under paragraph (3) of this
16subsection (h) if the school district has a per-pupil loss
17exceeding $1,000. The State Board of Education shall then
18calculate the amount of the adequacy grant, if any, to the
19school district under paragraph (4) of this subsection (h).
20Finally, the State Board of Education shall calculate the
21supplemental grants specified in paragraph (5) of this
22subsection (h).
23    (2) If a school district is subject to property tax
24extension limitations as imposed under the Property Tax
25Extension Limitation Law, a school district shall receive a
26supplemental grant pursuant to this paragraph (2) to account

 

 

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1for the difference between its Extension Limitation Equalized
2Assessed Valuation and the school district's equalized
3assessed valuation as calculated under paragraphs (1) and (2)
4of subsection (g) of this Section. The State Board of Education
5shall calculate the Extension Limitation Equalized Assessed
6Valuation of each district subject to property tax extension
7limitations as imposed under the Property Tax Extension
8Limitation Law. Except as otherwise provided in this paragraph
9(2) for a school district that has approved or does approve an
10increase in its limiting rate, the "Extension Limitation
11Equalized Assessed Valuation" of a school district as
12calculated by the State Board of Education shall be equal to
13the product of the equalized assessed valuation last used in
14the calculation of general State aid under Section 18-8.05 of
15this Code or primary State aid under this Section and the
16district's Extension Limitation Ratio. If a school district has
17approved or does approve an increase in its limiting rate,
18pursuant to Section 18-190 of the Property Tax Code, affecting
19the Base Tax Year, the Extension Limitation Equalized Assessed
20Valuation of the school district, as calculated by the State
21Board of Education, shall be equal to the product of the
22equalized assessed valuation last used in the calculation of
23general State aid pursuant to Section 18-8.05 of this Code or
24primary State aid pursuant to this Section times an amount
25equal to one plus the percentage increase, if any, in the
26Consumer Price Index for all Urban Consumers for all items

 

 

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1published by the United States Department of Labor for the
212-month calendar year preceding the Base Tax Year, plus the
3equalized assessed valuation of new property, annexed
4property, and recovered tax increment value and minus the
5equalized assessed valuation of disconnected property. New
6property and recovered tax increment value shall have the
7meanings set forth in the Property Tax Extension Limitation
8Law. Notwithstanding anything to the contrary contained in this
9paragraph (2), a PTELL EAV floor school district's Extension
10Limitation Equalized Assessed Valuation shall not be less than
1185% of the district's equalized assessed valuation as
12calculated pursuant to paragraphs (1) and (2) of subsection (g)
13of this Section.
14    If the Extension Limitation Equalized Assessed Valuation
15of a school district as calculated under this paragraph (2) is
16less than the district's equalized assessed valuation as
17calculated pursuant to paragraphs (1) and (2) of subsection (g)
18of this Section, then the school district shall receive a
19supplemental grant equal to its PTELL PSA Adjustment as
20calculated by the State Board of Education.
21    (3) Notwithstanding anything to the contrary contained in
22this Section, if, for any school year through and including the
232023-2024 school year, a school district's per-pupil primary
24State aid allotment is less than its Per-pupil Hold Harmless
25State Funding by an amount exceeding $1,000, then the amount of
26primary State aid allotted to the school district shall be

 

 

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1increased by a supplemental grant pursuant to this paragraph
2(3). The primary State aid supplemental grant shall equal an
3amount sufficient to raise the school district's per-pupil
4primary State aid allotment to an amount that is $1,000 less
5than the school district's Per-pupil Hold Harmless State
6Funding. For purposes of this paragraph (3), a school
7district's per-pupil primary State aid allotment shall be
8calculated by the State Board of Education as the sum of the
9primary State aid allotted to the school district pursuant to
10subsection (e) of this Section and any supplemental grants
11pursuant to this paragraph (3) and paragraph (2) of this
12subsection (h), divided by the school district's Average Daily
13Attendance figure.
14    (4) Through and including the 2023-2024 school year, the
15State Board of Education shall administer the distribution of
16adequacy grants in accordance with this paragraph (4). Each
17school district with an Adequacy Target percent of less than
18110% shall receive a supplemental adequacy grant calculated in
19accordance with subdivision (A) of this paragraph (4), subject
20to appropriations for such grants and the tax rate eligibility
21requirements and grant adjustment provisions of subdivision
22(B) of this paragraph (4). For purposes of calculating a school
23district's Adequacy Target percent, a school district's
24operating expense per pupil shall be the most recent figure
25calculated by the State Board of Education as of the start of
26the fiscal year for which the calculations in this paragraph

 

 

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1(4) apply.
2        (A) Subject to subdivision (B) of this paragraph (4):
3            (i) a school district with an Adequacy Target
4        percent of not more than 100% shall receive a
5        supplemental adequacy grant equal to its Adequacy
6        Grant Loss;
7            (ii) a school district with an Adequacy Target
8        percent of more than 100% but less than 110% shall
9        receive a supplemental adequacy grant equal to the
10        product of its Adequacy Grant Loss and a percent figure
11        calculated as follows: 110% less the school district's
12        Adequacy Target percent, with the resulting percent
13        figure multiplied by 10; and
14            (iii) a school district with an Adequacy Target
15        percent of 110% or higher shall not receive a
16        supplemental adequacy grant pursuant to this paragraph
17        (4).
18        (B) The State Board of Education shall calculate a
19    statewide weighted-average Operating Tax Rate for each of
20    the following school district types: school districts
21    maintaining grades kindergarten through 12, school
22    districts maintaining grades kindergarten through 8, and
23    school districts maintaining grades 9 through 12. If a
24    school district's Operating Tax Rate is at least 95% of the
25    applicable statewide weighted-average Operating Tax Rate,
26    the school district shall receive the full amount of the

 

 

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1    supplemental adequacy grant determined pursuant to
2    subdivision (A) of this paragraph (4). If a school
3    district's Operating Tax Rate is 85% or lower of the
4    applicable statewide weighted-average Operating Tax Rate,
5    the school district shall not receive any supplemental
6    adequacy grant under this paragraph (4). If a school
7    district's Operating Tax Rate is more than 85% but less
8    than 95% of the applicable statewide weighted-average
9    Operating Tax Rate, the school district shall receive a
10    supplemental adequacy grant equal to the product of (i) the
11    amount of the total supplemental adequacy grant determined
12    pursuant to subdivision (A) of this paragraph (4) and (ii)
13    the percentage of which the school district's Operating Tax
14    Rate is of the applicable statewide weighted-average
15    Operating Tax Rate less 85%, with the resulting percent
16    figure multiplied by 10.
17    (5) Notwithstanding anything to the contrary contained in
18this Section, the Total Primary State Aid allotted to a school
19district for the 2016-2017 through the 2019-2020 school years
20shall be subject to increase through supplemental grants as
21follows:
22        If, for the 2016-2017 school year, the Total Primary
23    State Aid is less than Hold Harmless State Funding, then
24    the amount of primary State aid allotted to the school
25    district shall be increased by a supplemental grant in the
26    amount of 100% of the difference between Hold Harmless

 

 

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1    State Funding and Total Primary State Aid.
2        If, for the 2017-2018 school year, the Total Primary
3    State Aid remains less than Hold Harmless State Funding,
4    then the amount of primary State aid allotted to the school
5    district shall be increased by a supplemental grant in the
6    amount of 75% of the difference between Hold Harmless State
7    Funding and Total Primary State Aid.
8        If, for the 2018-2019 school year, the Total Primary
9    State Aid remains less than Hold Harmless State Funding,
10    then the amount of primary State aid allotted to the school
11    district shall be increased by a supplemental grant in the
12    amount of 50% of the difference between Hold Harmless State
13    Funding and Total Primary State Aid.
14        If, for the 2019-2020 school year, the Total Primary
15    State Aid remains less than Hold Harmless State Funding,
16    then the amount of primary State aid allotted to the school
17    district shall be increased by a supplemental grant in the
18    amount of 25% of the difference between Hold Harmless State
19    Funding and Total Primary State Aid.
20    (i) Grants to Laboratory and Alternative Schools. In
21calculating the amount to be paid to the governing board of a
22public university that operates a Laboratory School or to any
23Alternative School that is operated by a regional
24superintendent of schools, the State Board of Education shall
25require, by rule, such reporting requirements as it deems
26necessary. Each Laboratory and Alternative School shall file,

 

 

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1on forms provided by the State Superintendent of Education, an
2annual State aid claim that states the Average Daily Attendance
3of the school's students by month. The best 3 months' Average
4Daily Attendance shall be computed for each school. The primary
5State aid entitlement shall be computed by multiplying the
6applicable Average Daily Attendance by 105% of the Foundation
7Level.
8    (j) District improvement plans, attendance center
9distributions, and special education maintenance of State
10financial support.
11    (1) Each school district making insufficient annual
12progress, as determined by the State Board of Education, in the
13educational performance of Low-income Pupils, English Learner
14Pupils, or children with disabilities shall demonstrate, in
15accordance with requirements adopted by the State Board of
16Education, how local and State funds will be used for
17strategies that give priority to meeting the educational needs
18of each such category of pupils for which the school district
19is making insufficient annual progress. For each such category
20of pupils, budget information submitted in accordance with
21State Board of Education requirements must demonstrate that the
22combined amount of local funds and primary State aid funds
23budgeted for strategies that give priority to that category of
24pupils is proportionate or higher, on either an aggregate or
25per-pupil basis, to the proportion of the Weighted Foundation
26Level Budget attributable to that category of pupils. The State

 

 

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1Board of Education may adopt exceptions to the requirement for
2proportionate or higher budgeting to address small pupil
3subgroup populations, changes in pupil enrollment, or
4extraordinary expenditures required for any school year. The
5State Board of Education may also adopt exceptions to the
6requirement for proportionate or higher budgeting for any
7school district to implement district-wide or school-wide
8strategies if the school district or school has a high
9percentage of pupils in any particular category relative to
10statewide averages and the district can demonstrate in its plan
11that a district-wide or school-wide strategy is more likely to
12achieve the district's educational objectives for a category of
13pupils than a targeted strategy. If a school district fails to
14adhere to proportionate or higher budgeting in accordance with
15this paragraph (1), the school district must take corrective
16action in accordance with requirements adopted by the State
17Board of Education. If corrective action is not taken, the
18State Board of Education shall deduct, from primary State aid
19payments otherwise due the district, an amount equal to the
20amount by which the district failed to adhere to the
21proportionate or higher requirement.
22    (2) School districts with an Average Daily Attendance of
2350,000 or more shall be required to distribute, from funds
24available pursuant to this Section, no less than $261,000,000
25in accordance with the following requirements:
26        (A) The required amounts shall be distributed to the

 

 

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1    attendance centers within the district in proportion to the
2    number of Low-income Pupils enrolled at each attendance
3    center during the current school year.
4        (B) The distribution of these portions of primary State
5    aid among attendance centers according to these
6    requirements shall not be compensated for or contravened by
7    adjustments of the total of other funds appropriated to any
8    attendance centers, and the board of education shall
9    utilize funding from one or several sources in order to
10    fully implement this paragraph (2) annually prior to the
11    opening of school.
12        (C) Each attendance center shall be provided, by the
13    school district, with a distribution of other funds to
14    which the attendance center is entitled under law in order
15    that the primary State aid provided by application of this
16    paragraph (2) supplements rather than supplants the other
17    funds provided by the school district to the attendance
18    centers.
19        (D) Funds received by an attendance center pursuant to
20    this paragraph (2) shall be used by the attendance center
21    at the discretion of the principal and local school council
22    for programs to improve educational opportunities at
23    qualifying schools through the following programs and
24    services: early childhood education, reduced class size or
25    improved adult to student classroom ratios, enrichment
26    programs, remedial assistance, attendance improvement, and

 

 

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1    other educationally beneficial expenditures that
2    supplement the regular and basic programs as determined by
3    the State Board of Education. Funds provided shall not be
4    expended for any political or lobbying purposes as defined
5    by rule of the State Board.
6        (E) Each district subject to the provisions of this
7    paragraph (2) shall submit an acceptable plan to meet the
8    educational needs of disadvantaged children, in compliance
9    with the requirements of this subdivision (E), to the State
10    Board of Education prior to July 15 of each year. This plan
11    shall be consistent with the decisions of local school
12    councils concerning the school expenditure plans developed
13    in accordance with subdivision 4 of Section 34-2.3 of this
14    Code. The State Board shall approve or reject the plan
15    within 60 days after its submission. If the plan is
16    rejected, the district shall give written notice of an
17    intent to modify the plan within 15 days after the
18    notification of rejection and then submit a modified plan
19    within 30 days after the date of the written notice of an
20    intent to modify. Districts may amend approved plans
21    pursuant to rules adopted by the State Board of Education.
22        Upon notification by the State Board of Education that
23    the district has not submitted a plan prior to July 15 or a
24    modified plan within the time period specified in this
25    subdivision (E), the State aid funds affected by that plan
26    or modified plan shall be withheld by the State Board of

 

 

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1    Education until a plan or modified plan is submitted.
2        If the district fails to distribute State aid to
3    attendance centers in accordance with an approved plan, the
4    plan for the following year shall allocate funds, in
5    addition to the funds otherwise required by this paragraph
6    (2), to those attendance centers that were underfunded
7    during the previous year in amounts equal to such
8    underfunding.
9    For purposes of determining compliance with this paragraph
10(2) in relation to the requirements of attendance center
11funding, each district subject to the provisions of this
12paragraph (2) shall submit as a separate document, on or before
13December 1 of each year, a report of expenditure data for the
14prior year in addition to any modification of its current plan.
15If it is determined that there has been a failure to comply
16with the expenditure provisions of this paragraph (2) regarding
17contravention or supplanting, the State Superintendent of
18Education shall, within 60 days after receipt of the report,
19notify the district and any affected local school council. The
20district shall, within 45 days after receipt of that
21notification, inform the State Superintendent of Education of
22the remedial or corrective action to be taken, whether by
23amendment of the current plan, if feasible, or by adjustment in
24the plan for the following year. Failure to provide the
25expenditure report or the notification of remedial or
26corrective action in a timely manner shall result in a

 

 

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1withholding of the affected funds.
2    The State Board of Education shall adopt rules to implement
3the provisions of this paragraph (2). No funds shall be
4released under this paragraph (2) to any district that has not
5submitted a plan that has been approved by the State Board of
6Education.
7    (3) Each fiscal year, the State Board of Education shall
8calculate for each school district an amount of its Total
9Primary State Aid funding that shall be deemed attributable to
10the provision of special educational facilities and services,
11as defined in Section 14-1.08 of this Code, in a manner that
12ensures compliance with maintenance of State financial support
13requirements under the federal Individuals with Disabilities
14Education Act. A school district must use such funds only for
15the provision of special educational facilities and services,
16as defined in Section 14-1.08 of this Code, and must comply
17with any expenditure verification procedures adopted by the
18State Board of Education.
19    (k) Education Funding Advisory Board. For the 2018-2019 and
20subsequent school years, the Education Funding Advisory Board
21established pursuant to subsection (M) of Section 18-8.05 of
22this Code, in consultation with the State Board of Education,
23shall make recommendations as provided in this subsection (k)
24to the General Assembly for the Foundation Level under
25paragraph (2) of subsection (b) of this Section. The
26recommended foundation level shall be determined based on

 

 

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1consideration of 2 separate methodologies:
2        (1) a methodology that incorporates the basic
3    education expenditures of low-spending schools exhibiting
4    high academic performance; and
5        (2) an evidence-based methodology that identifies an
6    educational program that includes research-based
7    educational strategies and uses the cost of that program to
8    determine the cost of education.
9    The Education Funding Advisory Board shall make its
10recommendations to the General Assembly on or before January 31
11of even-numbered years, beginning on or before January 31,
122018.
13    (l) Primary State Aid Review Committee. The State
14Superintendent of Education shall appoint a committee of no
15more than 20 members, consisting of school administrators,
16school business officials, school financing experts, parents,
17teachers, and concerned citizens to review the administration
18of primary State aid in this State and the impact on school
19district finances of this amendatory Act of the 99th General
20Assembly. The State Superintendent of Education shall ensure
21that the membership of the Committee includes representatives
22from school districts reflecting the geographic and
23socio-economic diversity of this State. The Committee shall
24make periodic recommendations to the State Superintendent of
25Education and the General Assembly concerning the
26administration of primary State aid, any administrative rules

 

 

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1needed for the implementation of this Section, and suggestions
2for amending this Section or other Sections of this Code to
3achieve a school funding system that provides adequate,
4equitable, transparent, and accountable distribution of funds
5to school districts that will prepare students for success
6after high school. By no later than January 31, 2018 and
7January 31 of each odd-numbered year thereafter, the Committee
8shall submit a report with recommendations to the State
9Superintendent and General Assembly. The report submitted by no
10later than January 31, 2018 must address all of the following:
11        (1) Methods for considering the adequacy of funding
12    available to school districts that are relatively
13    underperforming within this State's accountability system.
14        (2) Whether to include funding for State career and
15    technical education and transportation within the primary
16    State aid formula.
17        (3) Whether to account for municipal impact fees,
18    distributions from a special tax allocation fund
19    established in relation to tax increment allocation
20    financing, available fund balances maintained by a
21    financial institution, and other similar funds received or
22    maintained by school districts in the calculation of
23    Available Local Resources Per Pupil.
24        (4) Methods for reducing State liability for PTELL PSA
25    Adjustments.
26        (5) Methods for accounting for disability types within

 

 

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1    the calculation of the Weighting Factor for students with
2    disabilities, rather than using the same Weighting Factor
3    for all students with disabilities.
4        (6) Methods for accounting for grade levels within the
5    calculation of District Weighted Average.
6        (7) Whether to adjust the method of calculating Average
7    Daily Attendance for Primary State Aid formula calculation
8    purposes, including whether to utilize an average of more
9    than 3 months of pupil attendance.
10        (8) Recommendations for revisions to the Primary State
11    Aid formula as the result of the adequacy study detailed in
12    subsection (m) of this Section.
13The report submitted by no later than January 31, 2019 must
14address the validity and reliability of data sources available
15to determine low-income status, including an analysis of the
16validity of both the DHS Low-income Eligible Count and the
17count of Low-income Pupils.
18    (m) Adequacy study. Subject to the availability of funding
19through appropriations made specifically for this purpose, by
20no later than 10 months after the first meeting of the Primary
21State Aid Review Committee established pursuant to subsection
22(l) of this Section, the State Board of Education shall
23contract with a public or private entity to conduct a study of
24the adequacy of education funding in this State, in
25consultation with Primary State Aid Review Committee, which
26study must be completed by no later than 10 months from the

 

 

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1contract's effective date. At a minimum, the adequacy study
2shall:
3        (1) determine the adequate per pupil cost to deliver an
4    educational program to each child in each school district
5    in this State based on the fundamental goal of this State
6    to develop all children to the limits of their capacities
7    by providing for an efficient system of high quality public
8    educational institutions and services that this State has
9    the primary responsibility for financing;
10        (2) consider identifiable and prototypical educational
11    expenses based on the school district type and student
12    population size, including, but not limited to, full-time
13    equivalent staffing for services to meet all student needs,
14    with delineation among regular education, special
15    education, English learners, low-income students, and
16    gifted students, including Career Pathway Participants and
17    Advanced Standing Pupils;
18        (3) identify a base funding level for students without
19    special needs necessary to meet adequate growth;
20        (4) include per pupil weights for students with special
21    needs to be applied to the base funding level;
22        (5) include an analysis of the effect of concentrations
23    of poverty on adequacy targets;
24        (6) include an analysis of the assumed school district
25    tax rates that should be included within the funding
26    formula;

 

 

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1        (7) in collaboration with the Illinois Early Learning
2    Council, include an analysis of what level of Preschool for
3    All Children funding would be necessary to serve all
4    children ages 0-5 years in the highest-priority service
5    tier (as specified in paragraph (4.5) of subsection (a) of
6    Section 2-3.71 of this Code) and an analysis of the
7    potential cost savings that that level of Preschool for All
8    Children investment would have on the kindergarten through
9    grade 12 system;
10        (8) include a scalable approach to required
11    appropriations that would result in full funding of an
12    equitable and adequate educational opportunity for all
13    children by the 2020-2021 school year;
14        (9) recommend the adequate per pupil amount of local
15    revenue that must be minimally committed by each school
16    district to the system of high quality educational
17    institutions and services within their communities and
18    identify the specific amount that would be required for
19    this State to contribute to each district to ensure an
20    equitable and adequate educational opportunity for all
21    students; and
22        (10) make further recommendations on the apportionment
23    of revenue sources so that adequacy can be achieved as
24    quickly as reasonably possible within this State.
25    (n) References. On and after July 1, 2016, references in
26other laws to general State aid funds or calculations under

 

 

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1Section 18-8.05 of this Code shall be deemed to be references
2to primary State aid funds or calculations under this Section.
 
3    (105 ILCS 5/18-9)  (from Ch. 122, par. 18-9)
4    Sec. 18-9. Requirement for special equalization and
5supplementary State aid. If property comprising an aggregate
6assessed valuation equal to 6% or more of the total assessed
7valuation of all taxable property in a school district is owned
8by a person or corporation that is the subject of bankruptcy
9proceedings or that has been adjudged bankrupt and, as a result
10thereof, has not paid taxes on the property, then the district
11may amend its general State aid or primary State aid claim (i)
12back to the inception of the bankruptcy, not to exceed 6 years,
13in which time those taxes were not paid and (ii) for each
14succeeding year that those taxes remain unpaid, by adding to
15the claim an amount determined by multiplying the assessed
16valuation of the property on which taxes have not been paid due
17to the bankruptcy by the lesser of the total tax rate for the
18district for the tax year for which the taxes are unpaid or the
19applicable rate used in calculating the district's general
20State aid under paragraph (3) of subsection (D) of Section
2118-8.05 of this Code or primary State aid under paragraph (3)
22of subsection (d) of Section 18-8.15 of this Code, as
23applicable. If at any time a district that receives additional
24State aid under this Section receives tax revenue from the
25property for the years that taxes were not paid, the district's

 

 

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

 

 

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1districts with an official school calendar end date before June
215 or within 2 weeks following the official school calendar end
3date for districts with a school year end date of June 15 or
4later. The regional superintendent shall certify and file with
5the State Superintendent of Education district State aid claims
6by July 1 for districts with an official school calendar end
7date before June 15 or no later than July 15 for districts with
8an official school calendar end date of June 15 or later.
9Failure to so file by these deadlines constitutes a forfeiture
10of the right to receive payment by the State until such claim
11is filed and vouchered for payment. The regional superintendent
12of schools shall certify the county report of claims by July
1315; and the State Superintendent of Education shall voucher for
14payment those claims to the State Comptroller as provided in
15Section 18-11.
16    Except as otherwise provided in this Section, if any school
17district fails to provide the minimum school term specified in
18Section 10-19, the State aid claim for that year shall be
19reduced by the State Superintendent of Education in an amount
20equivalent to 1/176 or .56818% for each day less than the
21number of days required by this Code.
22    If the State Superintendent of Education determines that
23the failure to provide the minimum school term was occasioned
24by an act or acts of God, or was occasioned by conditions
25beyond the control of the school district which posed a
26hazardous threat to the health and safety of pupils, the State

 

 

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1aid claim need not be reduced.
2    If a school district is precluded from providing the
3minimum hours of instruction required for a full day of
4attendance due to an adverse weather condition or a condition
5beyond the control of the school district that poses a
6hazardous threat to the health and safety of students, then the
7partial day of attendance may be counted if (i) the school
8district has provided at least one hour of instruction prior to
9the closure of the school district, (ii) a school building has
10provided at least one hour of instruction prior to the closure
11of the school building, or (iii) the normal start time of the
12school district is delayed.
13    If, prior to providing any instruction, a school district
14must close one or more but not all school buildings after
15consultation with a local emergency response agency or due to a
16condition beyond the control of the school district, then the
17school district may claim attendance for up to 2 school days
18based on the average attendance of the 3 school days
19immediately preceding the closure of the affected school
20building or, if approved by the State Board of Education,
21utilize the provisions of an e-learning program for the
22affected school building as prescribed in Section 10-20.56 of
23this Code. The partial or no day of attendance described in
24this Section and the reasons therefore shall be certified
25within a month of the closing or delayed start by the school
26district superintendent to the regional superintendent of

 

 

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1schools for forwarding to the State Superintendent of Education
2for approval.
3    Other than the utilization of any e-learning days as
4prescribed in Section 10-20.56 of this Code, no exception to
5the requirement of providing a minimum school term may be
6approved by the State Superintendent of Education pursuant to
7this Section unless a school district has first used all
8emergency days provided for in its regular calendar.
9    If the State Superintendent of Education declares that an
10energy shortage exists during any part of the school year for
11the State or a designated portion of the State, a district may
12operate the school attendance centers within the district 4
13days of the week during the time of the shortage by extending
14each existing school day by one clock hour of school work, and
15the State aid claim shall not be reduced, nor shall the
16employees of that district suffer any reduction in salary or
17benefits as a result thereof. A district may operate all
18attendance centers on this revised schedule, or may apply the
19schedule to selected attendance centers, taking into
20consideration such factors as pupil transportation schedules
21and patterns and sources of energy for individual attendance
22centers.
23    Electronically submitted State aid claims shall be
24submitted by duly authorized district or regional individuals
25over a secure network that is password protected. The
26electronic submission of a State aid claim must be accompanied

 

 

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1with an affirmation that all of the provisions of Sections
218-8.05 through 18-9, 10-22.5, and 24-4 of this Code are met in
3all respects.
4(Source: P.A. 99-194, eff. 7-30-15.)
 
5    (105 ILCS 5/26-16)
6    Sec. 26-16. Graduation incentives program.
7    (a) The General Assembly finds that it is critical to
8provide options for children to succeed in school. The purpose
9of this Section is to provide incentives for and encourage all
10Illinois students who have experienced or are experiencing
11difficulty in the traditional education system to enroll in
12alternative programs.
13    (b) Any student who is below the age of 20 years is
14eligible to enroll in a graduation incentives program if he or
15she:
16        (1) is considered a dropout pursuant to Section 26-2a
17    of this Code;
18        (2) has been suspended or expelled pursuant to Section
19    10-22.6 or 34-19 of this Code;
20        (3) is pregnant or is a parent;
21        (4) has been assessed as chemically dependent; or
22        (5) is enrolled in a bilingual education or LEP
23    program.
24    (c) The following programs qualify as graduation
25incentives programs for students meeting the criteria

 

 

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

 

 

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1    amounts, and limits on reimbursement.
2        (5) Adult education courses that offer preparation for
3    high school equivalency testing.
4    (d) Graduation incentives programs established by school
5districts are entitled to claim general State aid and primary
6State aid, subject to Sections 13B-50, 13B-50.5, and 13B-50.10
7of this Code. Graduation incentives programs operated by
8regional offices of education are entitled to receive general
9State aid and primary State aid at the foundation level of
10support per pupil enrolled. A school district must ensure that
11its graduation incentives program receives supplemental
12general State aid, transportation reimbursements, and special
13education resources, if appropriate, for students enrolled in
14the program.
15(Source: P.A. 98-718, eff. 1-1-15.)
 
16    (105 ILCS 5/27-8.1)  (from Ch. 122, par. 27-8.1)
17    Sec. 27-8.1. Health examinations and immunizations.
18    (1) In compliance with rules and regulations which the
19Department of Public Health shall promulgate, and except as
20hereinafter provided, all children in Illinois shall have a
21health examination as follows: within one year prior to
22entering kindergarten or the first grade of any public,
23private, or parochial elementary school; upon entering the
24sixth and ninth grades of any public, private, or parochial
25school; prior to entrance into any public, private, or

 

 

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

 

 

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

 

 

09900SB0231sam001- 409 -LRB099 03162 NHT 47157 a

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

 

 

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

 

 

09900SB0231sam001- 411 -LRB099 03162 NHT 47157 a

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

 

 

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1having conducted the examination, and such additional
2information as required, including for a health examination
3data relating to obesity (including at a minimum, date of
4birth, gender, height, weight, blood pressure, and date of
5exam), on uniform forms which the Department of Public Health
6and the State Board of Education shall prescribe for statewide
7use. The examiner shall summarize on the report form any
8condition that he or she suspects indicates a need for special
9services, including for a health examination factors relating
10to obesity. The individuals confirming the administration of
11required immunizations shall record as indicated on the form
12that the immunizations were administered.
13    (5) If a child does not submit proof of having had either
14the health examination or the immunization as required, then
15the child shall be examined or receive the immunization, as the
16case may be, and present proof by October 15 of the current
17school year, or by an earlier date of the current school year
18established by a school district. To establish a date before
19October 15 of the current school year for the health
20examination or immunization as required, a school district must
21give notice of the requirements of this Section 60 days prior
22to the earlier established date. If for medical reasons one or
23more of the required immunizations must be given after October
2415 of the current school year, or after an earlier established
25date of the current school year, then the child shall present,
26by October 15, or by the earlier established date, a schedule

 

 

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1for the administration of the immunizations and a statement of
2the medical reasons causing the delay, both the schedule and
3the statement being issued by the physician, advanced practice
4nurse, physician assistant, registered nurse, or local health
5department that will be responsible for administration of the
6remaining required immunizations. If a child does not comply by
7October 15, or by the earlier established date of the current
8school year, with the requirements of this subsection, then the
9local school authority shall exclude that child from school
10until such time as the child presents proof of having had the
11health examination as required and presents proof of having
12received those required immunizations which are medically
13possible to receive immediately. During a child's exclusion
14from school for noncompliance with this subsection, the child's
15parents or legal guardian shall be considered in violation of
16Section 26-1 and subject to any penalty imposed by Section
1726-10. This subsection (5) does not apply to dental
18examinations and eye examinations. If the student is an
19out-of-state transfer student and does not have the proof
20required under this subsection (5) before October 15 of the
21current year or whatever date is set by the school district,
22then he or she may only attend classes (i) if he or she has
23proof that an appointment for the required vaccinations has
24been scheduled with a party authorized to submit proof of the
25required vaccinations. If the proof of vaccination required
26under this subsection (5) is not submitted within 30 days after

 

 

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

 

 

09900SB0231sam001- 415 -LRB099 03162 NHT 47157 a

1examination, indicating, of those who have not received the
2required dental examination, the number of children who are
3exempt from the dental examination on religious grounds as
4provided in subsection (8) of this Section and the number of
5children who have received a waiver under subsection (1.5) of
6this Section.
7    Every school shall report to the State Board of Education
8by June 30, in the manner that the State Board requires, the
9number of children who have received the required eye
10examination, indicating, of those who have not received the
11required eye examination, the number of children who are exempt
12from the eye examination as provided in subsection (8) of this
13Section, the number of children who have received a waiver
14under subsection (1.10) of this Section, and the total number
15of children in noncompliance with the eye examination
16requirement.
17    The reported information under this subsection (6) shall be
18provided to the Department of Public Health by the State Board
19of Education.
20    (7) Upon determining that the number of pupils who are
21required to be in compliance with subsection (5) of this
22Section is below 90% of the number of pupils enrolled in the
23school district, 10% of each State aid payment made pursuant to
24Section 18-8.05 or 18-8.15 to the school district for such year
25may be withheld by the State Board of Education until the
26number of students in compliance with subsection (5) is the

 

 

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1applicable specified percentage or higher.
2    (8) Children of parents or legal guardians who object to
3health, dental, or eye examinations or any part thereof, to
4immunizations, or to vision and hearing screening tests on
5religious grounds shall not be required to undergo the
6examinations, tests, or immunizations to which they so object
7if such parents or legal guardians present to the appropriate
8local school authority a signed Certificate of Religious
9Exemption detailing the grounds for objection and the specific
10immunizations, tests, or examinations to which they object. The
11grounds for objection must set forth the specific religious
12belief that conflicts with the examination, test,
13immunization, or other medical intervention. The signed
14certificate shall also reflect the parent's or legal guardian's
15understanding of the school's exclusion policies in the case of
16a vaccine-preventable disease outbreak or exposure. The
17certificate must also be signed by the authorized examining
18health care provider responsible for the performance of the
19child's health examination confirming that the provider
20provided education to the parent or legal guardian on the
21benefits of immunization and the health risks to the student
22and to the community of the communicable diseases for which
23immunization is required in this State. However, the health
24care provider's signature on the certificate reflects only that
25education was provided and does not allow a health care
26provider grounds to determine a religious exemption. Those

 

 

09900SB0231sam001- 417 -LRB099 03162 NHT 47157 a

1receiving immunizations required under this Code shall be
2provided with the relevant vaccine information statements that
3are required to be disseminated by the federal National
4Childhood Vaccine Injury Act of 1986, which may contain
5information on circumstances when a vaccine should not be
6administered, prior to administering a vaccine. A healthcare
7provider may consider including without limitation the
8nationally accepted recommendations from federal agencies such
9as the Advisory Committee on Immunization Practices, the
10information outlined in the relevant vaccine information
11statement, and vaccine package inserts, along with the
12healthcare provider's clinical judgment, to determine whether
13any child may be more susceptible to experiencing an adverse
14vaccine reaction than the general population, and, if so, the
15healthcare provider may exempt the child from an immunization
16or adopt an individualized immunization schedule. The
17Certificate of Religious Exemption shall be created by the
18Department of Public Health and shall be made available and
19used by parents and legal guardians by the beginning of the
202015-2016 school year. Parents or legal guardians must submit
21the Certificate of Religious Exemption to their local school
22authority prior to entering kindergarten, sixth grade, and
23ninth grade for each child for which they are requesting an
24exemption. The religious objection stated need not be directed
25by the tenets of an established religious organization.
26However, general philosophical or moral reluctance to allow

 

 

09900SB0231sam001- 418 -LRB099 03162 NHT 47157 a

1physical examinations, eye examinations, immunizations, vision
2and hearing screenings, or dental examinations does not provide
3a sufficient basis for an exception to statutory requirements.
4The local school authority is responsible for determining if
5the content of the Certificate of Religious Exemption
6constitutes a valid religious objection. The local school
7authority shall inform the parent or legal guardian of
8exclusion procedures, in accordance with the Department's
9rules under Part 690 of Title 77 of the Illinois Administrative
10Code, at the time the objection is presented.
11    If the physical condition of the child is such that any one
12or more of the immunizing agents should not be administered,
13the examining physician, advanced practice nurse, or physician
14assistant responsible for the performance of the health
15examination shall endorse that fact upon the health examination
16form.
17    Exempting a child from the health, dental, or eye
18examination does not exempt the child from participation in the
19program of physical education training provided in Sections
2027-5 through 27-7 of this Code.
21    (9) For the purposes of this Section, "nursery schools"
22means those nursery schools operated by elementary school
23systems or secondary level school units or institutions of
24higher learning.
25(Source: P.A. 98-673, eff. 6-30-14; 99-173, eff. 7-29-15;
2699-249, eff. 8-3-15; revised 10-21-15.)
 

 

 

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

 

 

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

 

 

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

 

 

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1to be paid by the State Board to the charter school enrolling
2such students. The Commission shall require the charter school
3to maintain accurate records of daily attendance that shall be
4deemed sufficient to file claims under Section 18-8.05 or
518-8.15 notwithstanding any other requirements of that Section
6regarding hours of instruction and teacher certification. The
7State Board shall withhold from funds otherwise due the
8district the funds authorized by this Article to be paid to the
9charter school and shall pay such amounts to the charter
10school.
11    (g) For charter schools authorized by the Commission, the
12Commission shall quarterly certify to the State Board the
13student enrollment for each of its charter schools.
14    (h) For charter schools authorized by the Commission, the
15State Board shall pay directly to a charter school any federal
16or State aid attributable to a student with a disability
17attending the school.
18(Source: P.A. 97-152, eff. 7-20-11; 98-739, eff. 7-16-14.)
 
19    (105 ILCS 5/27A-11)
20    Sec. 27A-11. Local financing.
21    (a) For purposes of the School Code, pupils enrolled in a
22charter school shall be included in the pupil enrollment of the
23school district within which the pupil resides. Each charter
24school (i) shall determine the school district in which each
25pupil who is enrolled in the charter school resides, (ii) shall

 

 

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1report the aggregate number of pupils resident of a school
2district who are enrolled in the charter school to the school
3district in which those pupils reside, and (iii) shall maintain
4accurate records of daily attendance that shall be deemed
5sufficient to file claims under Section 18-8 or 18-8.15
6notwithstanding any other requirements of that Section
7regarding hours of instruction and teacher certification.
8    (b) Except for a charter school established by referendum
9under Section 27A-6.5, as part of a charter school contract,
10the charter school and the local school board shall agree on
11funding and any services to be provided by the school district
12to the charter school. Agreed funding that a charter school is
13to receive from the local school board for a school year shall
14be paid in equal quarterly installments with the payment of the
15installment for the first quarter being made not later than
16July 1, unless the charter establishes a different payment
17schedule. However, if a charter school dismisses a pupil from
18the charter school after receiving a quarterly payment, the
19charter school shall return to the school district, on a
20quarterly basis, the prorated portion of public funding
21provided for the education of that pupil for the time the
22student is not enrolled at the charter school. Likewise, if a
23pupil transfers to a charter school between quarterly payments,
24the school district shall provide, on a quarterly basis, a
25prorated portion of the public funding to the charter school to
26provide for the education of that pupil.

 

 

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1    All services centrally or otherwise provided by the school
2district including, but not limited to, rent, food services,
3custodial services, maintenance, curriculum, media services,
4libraries, transportation, and warehousing shall be subject to
5negotiation between a charter school and the local school board
6and paid for out of the revenues negotiated pursuant to this
7subsection (b); provided that the local school board shall not
8attempt, by negotiation or otherwise, to obligate a charter
9school to provide pupil transportation for pupils for whom a
10district is not required to provide transportation under the
11criteria set forth in subsection (a)(13) of Section 27A-7.
12    In no event shall the funding be less than 75% or more than
13125% of the school district's per capita student tuition
14multiplied by the number of students residing in the district
15who are enrolled in the charter school.
16    It is the intent of the General Assembly that funding and
17service agreements under this subsection (b) shall be neither a
18financial incentive nor a financial disincentive to the
19establishment of a charter school.
20    The charter school may set and collect reasonable fees.
21Fees collected from students enrolled at a charter school shall
22be retained by the charter school.
23    (c) Notwithstanding subsection (b) of this Section, the
24proportionate share of State and federal resources generated by
25students with disabilities or staff serving them shall be
26directed to charter schools enrolling those students by their

 

 

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1school districts or administrative units. The proportionate
2share of moneys generated under other federal or State
3categorical aid programs shall be directed to charter schools
4serving students eligible for that aid.
5    (d) The governing body of a charter school is authorized to
6accept gifts, donations, or grants of any kind made to the
7charter school and to expend or use gifts, donations, or grants
8in accordance with the conditions prescribed by the donor;
9however, a gift, donation, or grant may not be accepted by the
10governing body if it is subject to any condition contrary to
11applicable law or contrary to the terms of the contract between
12the charter school and the local school board. Charter schools
13shall be encouraged to solicit and utilize community volunteer
14speakers and other instructional resources when providing
15instruction on the Holocaust and other historical events.
16    (e) (Blank).
17    (f) The Commission shall provide technical assistance to
18persons and groups preparing or revising charter applications.
19    (g) At the non-renewal or revocation of its charter, each
20charter school shall refund to the local board of education all
21unspent funds.
22    (h) A charter school is authorized to incur temporary,
23short term debt to pay operating expenses in anticipation of
24receipt of funds from the local school board.
25(Source: P.A. 98-640, eff. 6-9-14; 98-739, eff. 7-16-14; 99-78,
26eff. 7-20-15.)
 

 

 

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1    (105 ILCS 5/29-5)  (from Ch. 122, par. 29-5)
2    Sec. 29-5. Reimbursement by State for transportation. Any
3school district, maintaining a school, transporting resident
4pupils to another school district's vocational program,
5offered through a joint agreement approved by the State Board
6of Education, as provided in Section 10-22.22 or transporting
7its resident pupils to a school which meets the standards for
8recognition as established by the State Board of Education
9which provides transportation meeting the standards of safety,
10comfort, convenience, efficiency and operation prescribed by
11the State Board of Education for resident pupils in
12kindergarten or any of grades 1 through 12 who: (a) reside at
13least 1 1/2 miles as measured by the customary route of travel,
14from the school attended; or (b) reside in areas where
15conditions are such that walking constitutes a hazard to the
16safety of the child when determined under Section 29-3; and (c)
17are transported to the school attended from pick-up points at
18the beginning of the school day and back again at the close of
19the school day or transported to and from their assigned
20attendance centers during the school day, shall be reimbursed
21by the State as hereinafter provided in this Section.
22    The State will pay the cost of transporting eligible pupils
23less the assessed valuation in a dual school district
24maintaining secondary grades 9 to 12 inclusive times a
25qualifying rate of .05%; in elementary school districts

 

 

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1maintaining grades K to 8 times a qualifying rate of .06%; and
2in unit districts maintaining grades K to 12, including
3optional elementary unit districts and combined high school -
4unit districts, times a qualifying rate of .07%; provided that
5for optional elementary unit districts and combined high school -
6 unit districts, assessed valuation for high school purposes,
7as defined in Article 11E of this Code, must be used. To be
8eligible to receive reimbursement in excess of 4/5 of the cost
9to transport eligible pupils, a school district shall have a
10Transportation Fund tax rate of at least .12%. If a school
11district does not have a .12% Transportation Fund tax rate, the
12amount of its claim in excess of 4/5 of the cost of
13transporting pupils shall be reduced by the sum arrived at by
14subtracting the Transportation Fund tax rate from .12% and
15multiplying that amount by the districts equalized or assessed
16valuation, provided, that in no case shall said reduction
17result in reimbursement of less than 4/5 of the cost to
18transport eligible pupils.
19    The minimum amount to be received by a district is $16
20times the number of eligible pupils transported.
21    When calculating the reimbursement for transportation
22costs, the State Board of Education may not deduct the number
23of pupils enrolled in early education programs from the number
24of pupils eligible for reimbursement if the pupils enrolled in
25the early education programs are transported at the same time
26as other eligible pupils.

 

 

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1    Any such district transporting resident pupils during the
2school day to an area vocational school or another school
3district's vocational program more than 1 1/2 miles from the
4school attended, as provided in Sections 10-22.20a and
510-22.22, shall be reimbursed by the State for 4/5 of the cost
6of transporting eligible pupils.
7    School day means that period of time which the pupil is
8required to be in attendance for instructional purposes.
9    If a pupil is at a location within the school district
10other than his residence for child care purposes at the time
11for transportation to school, that location may be considered
12for purposes of determining the 1 1/2 miles from the school
13attended.
14    Claims for reimbursement that include children who attend
15any school other than a public school shall show the number of
16such children transported.
17    Claims for reimbursement under this Section shall not be
18paid for the transportation of pupils for whom transportation
19costs are claimed for payment under other Sections of this Act.
20    The allowable direct cost of transporting pupils for
21regular, vocational, and special education pupil
22transportation shall be limited to the sum of the cost of
23physical examinations required for employment as a school bus
24driver; the salaries of full or part-time drivers and school
25bus maintenance personnel; employee benefits excluding
26Illinois municipal retirement payments, social security

 

 

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1payments, unemployment insurance payments and workers'
2compensation insurance premiums; expenditures to independent
3carriers who operate school buses; payments to other school
4districts for pupil transportation services; pre-approved
5contractual expenditures for computerized bus scheduling; the
6cost of gasoline, oil, tires, and other supplies necessary for
7the operation of school buses; the cost of converting buses'
8gasoline engines to more fuel efficient engines or to engines
9which use alternative energy sources; the cost of travel to
10meetings and workshops conducted by the regional
11superintendent or the State Superintendent of Education
12pursuant to the standards established by the Secretary of State
13under Section 6-106 of the Illinois Vehicle Code to improve the
14driving skills of school bus drivers; the cost of maintenance
15of school buses including parts and materials used;
16expenditures for leasing transportation vehicles, except
17interest and service charges; the cost of insurance and
18licenses for transportation vehicles; expenditures for the
19rental of transportation equipment; plus a depreciation
20allowance of 20% for 5 years for school buses and vehicles
21approved for transporting pupils to and from school and a
22depreciation allowance of 10% for 10 years for other
23transportation equipment so used. Each school year, if a school
24district has made expenditures to the Regional Transportation
25Authority or any of its service boards, a mass transit
26district, or an urban transportation district under an

 

 

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1intergovernmental agreement with the district to provide for
2the transportation of pupils and if the public transit carrier
3received direct payment for services or passes from a school
4district within its service area during the 2000-2001 school
5year, then the allowable direct cost of transporting pupils for
6regular, vocational, and special education pupil
7transportation shall also include the expenditures that the
8district has made to the public transit carrier. In addition to
9the above allowable costs school districts shall also claim all
10transportation supervisory salary costs, including Illinois
11municipal retirement payments, and all transportation related
12building and building maintenance costs without limitation.
13    Special education allowable costs shall also include
14expenditures for the salaries of attendants or aides for that
15portion of the time they assist special education pupils while
16in transit and expenditures for parents and public carriers for
17transporting special education pupils when pre-approved by the
18State Superintendent of Education.
19    Indirect costs shall be included in the reimbursement claim
20for districts which own and operate their own school buses.
21Such indirect costs shall include administrative costs, or any
22costs attributable to transporting pupils from their
23attendance centers to another school building for
24instructional purposes. No school district which owns and
25operates its own school buses may claim reimbursement for
26indirect costs which exceed 5% of the total allowable direct

 

 

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

 

 

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

 

 

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1receive in that fiscal year for that program. Any
2classification by a district must be made by a resolution of
3its board of education. The resolution must identify the amount
4of any payments or general State aid to be classified under
5this paragraph and must specify the funding program to which
6the funds are to be treated as received in connection
7therewith. This resolution is controlling as to the
8classification of funds referenced therein. A certified copy of
9the resolution must be sent to the State Superintendent of
10Education. The resolution shall still take effect even though a
11copy of the resolution has not been sent to the State
12Superintendent of Education in a timely manner. No
13classification under this paragraph by a district shall affect
14the total amount or timing of money the district is entitled to
15receive under this Code. No classification under this paragraph
16by a district shall in any way relieve the district from or
17affect any requirements that otherwise would apply with respect
18to that funding program, including any accounting of funds by
19source, reporting expenditures by original source and purpose,
20reporting requirements, or requirements of providing services.
21    Any school district with a population of not more than
22500,000 must deposit all funds received under this Article into
23the transportation fund and use those funds for the provision
24of transportation services.
25    Notwithstanding anything to the contrary contained in this
26Section, the State Board of Education shall award to a school

 

 

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1district having a population exceeding 500,000 inhabitants
23.9% of the funds appropriated by the General Assembly for any
3fiscal year for purposes of payments to school districts under
4this Section.
5(Source: P.A. 95-903, eff. 8-25-08; 96-1264, eff. 1-1-11.)
 
6    (105 ILCS 5/34-2.3)  (from Ch. 122, par. 34-2.3)
7    Sec. 34-2.3. Local school councils - Powers and duties.
8Each local school council shall have and exercise, consistent
9with the provisions of this Article and the powers and duties
10of the board of education, the following powers and duties:
11    1. (A) To annually evaluate the performance of the
12principal of the attendance center using a Board approved
13principal evaluation form, which shall include the evaluation
14of (i) student academic improvement, as defined by the school
15improvement plan, (ii) student absenteeism rates at the school,
16(iii) instructional leadership, (iv) the effective
17implementation of programs, policies, or strategies to improve
18student academic achievement, (v) school management, and (vi)
19any other factors deemed relevant by the local school council,
20including, without limitation, the principal's communication
21skills and ability to create and maintain a student-centered
22learning environment, to develop opportunities for
23professional development, and to encourage parental
24involvement and community partnerships to achieve school
25improvement;

 

 

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1    (B) to determine in the manner provided by subsection (c)
2of Section 34-2.2 and subdivision 1.5 of this Section whether
3the performance contract of the principal shall be renewed; and
4    (C) to directly select, in the manner provided by
5subsection (c) of Section 34-2.2, a new principal (including a
6new principal to fill a vacancy) -- without submitting any list
7of candidates for that position to the general superintendent
8as provided in paragraph 2 of this Section -- to serve under a
94 year performance contract; provided that (i) the
10determination of whether the principal's performance contract
11is to be renewed, based upon the evaluation required by
12subdivision 1.5 of this Section, shall be made no later than
13150 days prior to the expiration of the current
14performance-based contract of the principal, (ii) in cases
15where such performance contract is not renewed -- a direct
16selection of a new principal -- to serve under a 4 year
17performance contract shall be made by the local school council
18no later than 45 days prior to the expiration of the current
19performance contract of the principal, and (iii) a selection by
20the local school council of a new principal to fill a vacancy
21under a 4 year performance contract shall be made within 90
22days after the date such vacancy occurs. A Council shall be
23required, if requested by the principal, to provide in writing
24the reasons for the council's not renewing the principal's
25contract.
26    1.5. The local school council's determination of whether to

 

 

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1renew the principal's contract shall be based on an evaluation
2to assess the educational and administrative progress made at
3the school during the principal's current performance-based
4contract. The local school council shall base its evaluation on
5(i) student academic improvement, as defined by the school
6improvement plan, (ii) student absenteeism rates at the school,
7(iii) instructional leadership, (iv) the effective
8implementation of programs, policies, or strategies to improve
9student academic achievement, (v) school management, and (vi)
10any other factors deemed relevant by the local school council,
11including, without limitation, the principal's communication
12skills and ability to create and maintain a student-centered
13learning environment, to develop opportunities for
14professional development, and to encourage parental
15involvement and community partnerships to achieve school
16improvement. If a local school council fails to renew the
17performance contract of a principal rated by the general
18superintendent, or his or her designee, in the previous years'
19evaluations as meeting or exceeding expectations, the
20principal, within 15 days after the local school council's
21decision not to renew the contract, may request a review of the
22local school council's principal non-retention decision by a
23hearing officer appointed by the American Arbitration
24Association. A local school council member or members or the
25general superintendent may support the principal's request for
26review. During the period of the hearing officer's review of

 

 

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1the local school council's decision on whether or not to retain
2the principal, the local school council shall maintain all
3authority to search for and contract with a person to serve as
4interim or acting principal, or as the principal of the
5attendance center under a 4-year performance contract,
6provided that any performance contract entered into by the
7local school council shall be voidable or modified in
8accordance with the decision of the hearing officer. The
9principal may request review only once while at that attendance
10center. If a local school council renews the contract of a
11principal who failed to obtain a rating of "meets" or "exceeds
12expectations" in the general superintendent's evaluation for
13the previous year, the general superintendent, within 15 days
14after the local school council's decision to renew the
15contract, may request a review of the local school council's
16principal retention decision by a hearing officer appointed by
17the American Arbitration Association. The general
18superintendent may request a review only once for that
19principal at that attendance center. All requests to review the
20retention or non-retention of a principal shall be submitted to
21the general superintendent, who shall, in turn, forward such
22requests, within 14 days of receipt, to the American
23Arbitration Association. The general superintendent shall send
24a contemporaneous copy of the request that was forwarded to the
25American Arbitration Association to the principal and to each
26local school council member and shall inform the local school

 

 

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1council of its rights and responsibilities under the
2arbitration process, including the local school council's
3right to representation and the manner and process by which the
4Board shall pay the costs of the council's representation. If
5the local school council retains the principal and the general
6superintendent requests a review of the retention decision, the
7local school council and the general superintendent shall be
8considered parties to the arbitration, a hearing officer shall
9be chosen between those 2 parties pursuant to procedures
10promulgated by the State Board of Education, and the principal
11may retain counsel and participate in the arbitration. If the
12local school council does not retain the principal and the
13principal requests a review of the retention decision, the
14local school council and the principal shall be considered
15parties to the arbitration and a hearing officer shall be
16chosen between those 2 parties pursuant to procedures
17promulgated by the State Board of Education. The hearing shall
18begin (i) within 45 days after the initial request for review
19is submitted by the principal to the general superintendent or
20(ii) if the initial request for review is made by the general
21superintendent, within 45 days after that request is mailed to
22the American Arbitration Association. The hearing officer
23shall render a decision within 45 days after the hearing begins
24and within 90 days after the initial request for review. The
25Board shall contract with the American Arbitration Association
26for all of the hearing officer's reasonable and necessary

 

 

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1costs. In addition, the Board shall pay any reasonable costs
2incurred by a local school council for representation before a
3hearing officer.
4    1.10. The hearing officer shall conduct a hearing, which
5shall include (i) a review of the principal's performance,
6evaluations, and other evidence of the principal's service at
7the school, (ii) reasons provided by the local school council
8for its decision, and (iii) documentation evidencing views of
9interested persons, including, without limitation, students,
10parents, local school council members, school faculty and
11staff, the principal, the general superintendent or his or her
12designee, and members of the community. The burden of proof in
13establishing that the local school council's decision was
14arbitrary and capricious shall be on the party requesting the
15arbitration, and this party shall sustain the burden by a
16preponderance of the evidence. The hearing officer shall set
17the local school council decision aside if that decision, in
18light of the record developed at the hearing, is arbitrary and
19capricious. The decision of the hearing officer may not be
20appealed to the Board or the State Board of Education. If the
21hearing officer decides that the principal shall be retained,
22the retention period shall not exceed 2 years.
23    2. In the event (i) the local school council does not renew
24the performance contract of the principal, or the principal
25fails to receive a satisfactory rating as provided in
26subsection (h) of Section 34-8.3, or the principal is removed

 

 

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1for cause during the term of his or her performance contract in
2the manner provided by Section 34-85, or a vacancy in the
3position of principal otherwise occurs prior to the expiration
4of the term of a principal's performance contract, and (ii) the
5local school council fails to directly select a new principal
6to serve under a 4 year performance contract, the local school
7council in such event shall submit to the general
8superintendent a list of 3 candidates -- listed in the local
9school council's order of preference -- for the position of
10principal, one of which shall be selected by the general
11superintendent to serve as principal of the attendance center.
12If the general superintendent fails or refuses to select one of
13the candidates on the list to serve as principal within 30 days
14after being furnished with the candidate list, the general
15superintendent shall select and place a principal on an interim
16basis (i) for a period not to exceed one year or (ii) until the
17local school council selects a new principal with 7 affirmative
18votes as provided in subsection (c) of Section 34-2.2,
19whichever occurs first. If the local school council fails or
20refuses to select and appoint a new principal, as specified by
21subsection (c) of Section 34-2.2, the general superintendent
22may select and appoint a new principal on an interim basis for
23an additional year or until a new contract principal is
24selected by the local school council. There shall be no
25discrimination on the basis of race, sex, creed, color or
26disability unrelated to ability to perform in connection with

 

 

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1the submission of candidates for, and the selection of a
2candidate to serve as principal of an attendance center. No
3person shall be directly selected, listed as a candidate for,
4or selected to serve as principal of an attendance center (i)
5if such person has been removed for cause from employment by
6the Board or (ii) if such person does not hold a valid
7administrative certificate issued or exchanged under Article
821 and endorsed as required by that Article for the position of
9principal. A principal whose performance contract is not
10renewed as provided under subsection (c) of Section 34-2.2 may
11nevertheless, if otherwise qualified and certified as herein
12provided and if he or she has received a satisfactory rating as
13provided in subsection (h) of Section 34-8.3, be included by a
14local school council as one of the 3 candidates listed in order
15of preference on any candidate list from which one person is to
16be selected to serve as principal of the attendance center
17under a new performance contract. The initial candidate list
18required to be submitted by a local school council to the
19general superintendent in cases where the local school council
20does not renew the performance contract of its principal and
21does not directly select a new principal to serve under a 4
22year performance contract shall be submitted not later than 30
23days prior to the expiration of the current performance
24contract. In cases where the local school council fails or
25refuses to submit the candidate list to the general
26superintendent no later than 30 days prior to the expiration of

 

 

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1the incumbent principal's contract, the general superintendent
2may appoint a principal on an interim basis for a period not to
3exceed one year, during which time the local school council
4shall be able to select a new principal with 7 affirmative
5votes as provided in subsection (c) of Section 34-2.2. In cases
6where a principal is removed for cause or a vacancy otherwise
7occurs in the position of principal and the vacancy is not
8filled by direct selection by the local school council, the
9candidate list shall be submitted by the local school council
10to the general superintendent within 90 days after the date
11such removal or vacancy occurs. In cases where the local school
12council fails or refuses to submit the candidate list to the
13general superintendent within 90 days after the date of the
14vacancy, the general superintendent may appoint a principal on
15an interim basis for a period of one year, during which time
16the local school council shall be able to select a new
17principal with 7 affirmative votes as provided in subsection
18(c) of Section 34-2.2.
19    2.5. Whenever a vacancy in the office of a principal occurs
20for any reason, the vacancy shall be filled in the manner
21provided by this Section by the selection of a new principal to
22serve under a 4 year performance contract.
23    3. To establish additional criteria to be included as part
24of the performance contract of its principal, provided that
25such additional criteria shall not discriminate on the basis of
26race, sex, creed, color or disability unrelated to ability to

 

 

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1perform, and shall not be inconsistent with the uniform 4 year
2performance contract for principals developed by the board as
3provided in Section 34-8.1 of the School Code or with other
4provisions of this Article governing the authority and
5responsibility of principals.
6    4. To approve the expenditure plan prepared by the
7principal with respect to all funds allocated and distributed
8to the attendance center by the Board. The expenditure plan
9shall be administered by the principal. Notwithstanding any
10other provision of this Act or any other law, any expenditure
11plan approved and administered under this Section 34-2.3 shall
12be consistent with and subject to the terms of any contract for
13services with a third party entered into by the Chicago School
14Reform Board of Trustees or the board under this Act.
15    Via a supermajority vote of 7 members of the local school
16council or 8 members of a high school local school council, the
17Council may transfer allocations pursuant to Section 34-2.3
18within funds; provided that such a transfer is consistent with
19applicable law and collective bargaining agreements.
20    Beginning in fiscal year 1991 and in each fiscal year
21thereafter, the Board may reserve up to 1% of its total fiscal
22year budget for distribution on a prioritized basis to schools
23throughout the school system in order to assure adequate
24programs to meet the needs of special student populations as
25determined by the Board. This distribution shall take into
26account the needs catalogued in the Systemwide Plan and the

 

 

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1various local school improvement plans of the local school
2councils. Information about these centrally funded programs
3shall be distributed to the local school councils so that their
4subsequent planning and programming will account for these
5provisions.
6    Beginning in fiscal year 1991 and in each fiscal year
7thereafter, from other amounts available in the applicable
8fiscal year budget, the board shall allocate a lump sum amount
9to each local school based upon such formula as the board shall
10determine taking into account the special needs of the student
11body. The local school principal shall develop an expenditure
12plan in consultation with the local school council, the
13professional personnel leadership committee and with all other
14school personnel, which reflects the priorities and activities
15as described in the school's local school improvement plan and
16is consistent with applicable law and collective bargaining
17agreements and with board policies and standards; however, the
18local school council shall have the right to request waivers of
19board policy from the board of education and waivers of
20employee collective bargaining agreements pursuant to Section
2134-8.1a.
22    The expenditure plan developed by the principal with
23respect to amounts available from the fund for prioritized
24special needs programs and the allocated lump sum amount must
25be approved by the local school council.
26    The lump sum allocation shall take into account the

 

 

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1following principles:
2        a. Teachers: Each school shall be allocated funds equal
3    to the amount appropriated in the previous school year for
4    compensation for teachers (regular grades kindergarten
5    through 12th grade) plus whatever increases in
6    compensation have been negotiated contractually or through
7    longevity as provided in the negotiated agreement.
8    Adjustments shall be made due to layoff or reduction in
9    force, lack of funds or work, change in subject
10    requirements, enrollment changes, or contracts with third
11    parties for the performance of services or to rectify any
12    inconsistencies with system-wide allocation formulas or
13    for other legitimate reasons.
14        b. Other personnel: Funds for other teacher
15    certificated and uncertificated personnel paid through
16    non-categorical funds shall be provided according to
17    system-wide formulas based on student enrollment and the
18    special needs of the school as determined by the Board.
19        c. Non-compensation items: Appropriations for all
20    non-compensation items shall be based on system-wide
21    formulas based on student enrollment and on the special
22    needs of the school or factors related to the physical
23    plant, including but not limited to textbooks, electronic
24    textbooks and the technological equipment necessary to
25    gain access to and use electronic textbooks, supplies,
26    electricity, equipment, and routine maintenance.

 

 

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1        d. Funds for categorical programs: Schools shall
2    receive personnel and funds based on, and shall use such
3    personnel and funds in accordance with State and Federal
4    requirements applicable to each categorical program
5    provided to meet the special needs of the student body
6    (including but not limited to, Federal Chapter I,
7    Bilingual, and Special Education).
8        d.1. Funds for State Title I: Each school shall receive
9    funds based on State and Board requirements applicable to
10    each State Title I pupil provided to meet the special needs
11    of the student body. Each school shall receive the
12    proportion of funds as provided in Section 18-8 or 18-8.15
13    to which they are entitled. These funds shall be spent only
14    with the budgetary approval of the Local School Council as
15    provided in Section 34-2.3.
16        e. The Local School Council shall have the right to
17    request the principal to close positions and open new ones
18    consistent with the provisions of the local school
19    improvement plan provided that these decisions are
20    consistent with applicable law and collective bargaining
21    agreements. If a position is closed, pursuant to this
22    paragraph, the local school shall have for its use the
23    system-wide average compensation for the closed position.
24        f. Operating within existing laws and collective
25    bargaining agreements, the local school council shall have
26    the right to direct the principal to shift expenditures

 

 

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1    within funds.
2        g. (Blank).
3    Any funds unexpended at the end of the fiscal year shall be
4available to the board of education for use as part of its
5budget for the following fiscal year.
6    5. To make recommendations to the principal concerning
7textbook selection and concerning curriculum developed
8pursuant to the school improvement plan which is consistent
9with systemwide curriculum objectives in accordance with
10Sections 34-8 and 34-18 of the School Code and in conformity
11with the collective bargaining agreement.
12    6. To advise the principal concerning the attendance and
13disciplinary policies for the attendance center, subject to the
14provisions of this Article and Article 26, and consistent with
15the uniform system of discipline established by the board
16pursuant to Section 34-19.
17    7. To approve a school improvement plan developed as
18provided in Section 34-2.4. The process and schedule for plan
19development shall be publicized to the entire school community,
20and the community shall be afforded the opportunity to make
21recommendations concerning the plan. At least twice a year the
22principal and local school council shall report publicly on
23progress and problems with respect to plan implementation.
24    8. To evaluate the allocation of teaching resources and
25other certificated and uncertificated staff to the attendance
26center to determine whether such allocation is consistent with

 

 

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1and in furtherance of instructional objectives and school
2programs reflective of the school improvement plan adopted for
3the attendance center; and to make recommendations to the
4board, the general superintendent and the principal concerning
5any reallocation of teaching resources or other staff whenever
6the council determines that any such reallocation is
7appropriate because the qualifications of any existing staff at
8the attendance center do not adequately match or support
9instructional objectives or school programs which reflect the
10school improvement plan.
11    9. To make recommendations to the principal and the general
12superintendent concerning their respective appointments, after
13August 31, 1989, and in the manner provided by Section 34-8 and
14Section 34-8.1, of persons to fill any vacant, additional or
15newly created positions for teachers at the attendance center
16or at attendance centers which include the attendance center
17served by the local school council.
18    10. To request of the Board the manner in which training
19and assistance shall be provided to the local school council.
20Pursuant to Board guidelines a local school council is
21authorized to direct the Board of Education to contract with
22personnel or not-for-profit organizations not associated with
23the school district to train or assist council members. If
24training or assistance is provided by contract with personnel
25or organizations not associated with the school district, the
26period of training or assistance shall not exceed 30 hours

 

 

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1during a given school year; person shall not be employed on a
2continuous basis longer than said period and shall not have
3been employed by the Chicago Board of Education within the
4preceding six months. Council members shall receive training in
5at least the following areas:
6        1. school budgets;
7        2. educational theory pertinent to the attendance
8    center's particular needs, including the development of
9    the school improvement plan and the principal's
10    performance contract; and
11        3. personnel selection.
12Council members shall, to the greatest extent possible,
13complete such training within 90 days of election.
14    11. In accordance with systemwide guidelines contained in
15the System-Wide Educational Reform Goals and Objectives Plan,
16criteria for evaluation of performance shall be established for
17local school councils and local school council members. If a
18local school council persists in noncompliance with systemwide
19requirements, the Board may impose sanctions and take necessary
20corrective action, consistent with Section 34-8.3.
21    12. Each local school council shall comply with the Open
22Meetings Act and the Freedom of Information Act. Each local
23school council shall issue and transmit to its school community
24a detailed annual report accounting for its activities
25programmatically and financially. Each local school council
26shall convene at least 2 well-publicized meetings annually with

 

 

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1its entire school community. These meetings shall include
2presentation of the proposed local school improvement plan, of
3the proposed school expenditure plan, and the annual report,
4and shall provide an opportunity for public comment.
5    13. Each local school council is encouraged to involve
6additional non-voting members of the school community in
7facilitating the council's exercise of its responsibilities.
8    14. The local school council may adopt a school uniform or
9dress code policy that governs the attendance center and that
10is necessary to maintain the orderly process of a school
11function or prevent endangerment of student health or safety,
12consistent with the policies and rules of the Board of
13Education. A school uniform or dress code policy adopted by a
14local school council: (i) shall not be applied in such manner
15as to discipline or deny attendance to a transfer student or
16any other student for noncompliance with that policy during
17such period of time as is reasonably necessary to enable the
18student to acquire a school uniform or otherwise comply with
19the dress code policy that is in effect at the attendance
20center into which the student's enrollment is transferred; and
21(ii) shall include criteria and procedures under which the
22local school council will accommodate the needs of or otherwise
23provide appropriate resources to assist a student from an
24indigent family in complying with an applicable school uniform
25or dress code policy. A student whose parents or legal
26guardians object on religious grounds to the student's

 

 

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1compliance with an applicable school uniform or dress code
2policy shall not be required to comply with that policy if the
3student's parents or legal guardians present to the local
4school council a signed statement of objection detailing the
5grounds for the objection.
6    15. All decisions made and actions taken by the local
7school council in the exercise of its powers and duties shall
8comply with State and federal laws, all applicable collective
9bargaining agreements, court orders and rules properly
10promulgated by the Board.
11    15a. To grant, in accordance with board rules and policies,
12the use of assembly halls and classrooms when not otherwise
13needed, including lighting, heat, and attendants, for public
14lectures, concerts, and other educational and social
15activities.
16    15b. To approve, in accordance with board rules and
17policies, receipts and expenditures for all internal accounts
18of the attendance center, and to approve all fund-raising
19activities by nonschool organizations that use the school
20building.
21    16. (Blank).
22    17. Names and addresses of local school council members
23shall be a matter of public record.
24(Source: P.A. 96-1403, eff. 7-29-10.)
 
25    (105 ILCS 5/34-8.4)

 

 

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1    Sec. 34-8.4. Intervention. The Chicago Schools Academic
2Accountability Council may recommend to the Chicago School
3Reform Board of Trustees that any school placed on remediation
4or probation under Section 34-8.3 or schools that for the 3
5consecutive school years of 1992-1993, 1993-1994, and
61994-1995 have met the State Board of Education's category of
7"does not meet expectations" be made subject to intervention
8under this Section 34-8.4. In addition to any powers created
9under this Section, the Trustees shall have all powers created
10under Section 34-8.3 with respect to schools subjected to
11intervention.
12    Prior to subjecting a school to intervention, the Trustees
13shall conduct a public hearing and make findings of facts
14concerning the recommendation of the Chicago Schools Academic
15Accountability Council and the factors causing the failure of
16the school to adequately perform. The Trustees shall afford an
17opportunity at the hearing for interested persons to comment
18about the intervention recommendation. After the hearing has
19been held and completion of findings of fact, the Trustees
20shall make a determination whether to subject the school to
21intervention.
22    If the Trustees determine that a school shall be subject to
23intervention under this Section, the Trustees shall develop an
24intervention implementation plan and shall cause a performance
25evaluation to be made of each employee at the school. Upon
26consideration of such evaluations, and consistent with the

 

 

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1intervention implementation plan, the Trustees may reassign,
2layoff, or dismiss any employees at the attendance center,
3notwithstanding the provisions of Sections 24A-5 and 34-85.
4    The chief educational officer shall appoint a principal for
5the school and shall set the terms and conditions of the
6principal's contract, which in no case may be longer than 2
7years. The principal shall select all teachers and
8non-certified personnel for the school as may be necessary. Any
9provision of Section 34-8.1 that conflicts with this Section
10shall not apply to a school subjected to intervention under
11this Section.
12    If pursuant to this Section, the general superintendent,
13with the approval of the board, orders new local school council
14elections, the general superintendent shall carry out the
15responsibilities of the local school council for a school
16subject to intervention until the new local school council
17members are elected and trained.
18    Each school year, 5% of the supplemental general State aid
19or supplemental grant funds distributed to a school subject to
20intervention during that school year under subsection
215(i)(1)(a) of part A of Section 18-8, or subsection (H) of
22Section 18-8.05, or paragraph (2) of subsection (j) of Section
2318-8.15 shall be used for employee performance incentives. The
24Trustees shall prepare a report evaluating the results of any
25interventions undertaken pursuant to this Section and shall
26make recommendations concerning implementation of special

 

 

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1programs for dealing with underperforming schools on an ongoing
2basis. This report shall be submitted to the State
3Superintendent of Education and Mayor of the City of Chicago by
4January 1, 1999.
5(Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97;
690-548, eff. 1-1-98.)
 
7    (105 ILCS 5/34-18)  (from Ch. 122, par. 34-18)
8    Sec. 34-18. Powers of the board. The board shall exercise
9general supervision and jurisdiction over the public education
10and the public school system of the city, and, except as
11otherwise provided by this Article, shall have power:
12        1. To make suitable provision for the establishment and
13    maintenance throughout the year or for such portion thereof
14    as it may direct, not less than 9 months, of schools of all
15    grades and kinds, including normal schools, high schools,
16    night schools, schools for defectives and delinquents,
17    parental and truant schools, schools for the blind, the
18    deaf and persons with physical disabilities, schools or
19    classes in manual training, constructural and vocational
20    teaching, domestic arts and physical culture, vocation and
21    extension schools and lecture courses, and all other
22    educational courses and facilities, including
23    establishing, equipping, maintaining and operating
24    playgrounds and recreational programs, when such programs
25    are conducted in, adjacent to, or connected with any public

 

 

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1    school under the general supervision and jurisdiction of
2    the board; provided that the calendar for the school term
3    and any changes must be submitted to and approved by the
4    State Board of Education before the calendar or changes may
5    take effect, and provided that in allocating funds from
6    year to year for the operation of all attendance centers
7    within the district, the board shall ensure that
8    supplemental general State aid or supplemental grant funds
9    are allocated and applied in accordance with Section 18-8,
10    or 18-8.05, or 18-8.15. To admit to such schools without
11    charge foreign exchange students who are participants in an
12    organized exchange student program which is authorized by
13    the board. The board shall permit all students to enroll in
14    apprenticeship programs in trade schools operated by the
15    board, whether those programs are union-sponsored or not.
16    No student shall be refused admission into or be excluded
17    from any course of instruction offered in the common
18    schools by reason of that student's sex. No student shall
19    be denied equal access to physical education and
20    interscholastic athletic programs supported from school
21    district funds or denied participation in comparable
22    physical education and athletic programs solely by reason
23    of the student's sex. Equal access to programs supported
24    from school district funds and comparable programs will be
25    defined in rules promulgated by the State Board of
26    Education in consultation with the Illinois High School

 

 

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1    Association. Notwithstanding any other provision of this
2    Article, neither the board of education nor any local
3    school council or other school official shall recommend
4    that children with disabilities be placed into regular
5    education classrooms unless those children with
6    disabilities are provided with supplementary services to
7    assist them so that they benefit from the regular classroom
8    instruction and are included on the teacher's regular
9    education class register;
10        2. To furnish lunches to pupils, to make a reasonable
11    charge therefor, and to use school funds for the payment of
12    such expenses as the board may determine are necessary in
13    conducting the school lunch program;
14        3. To co-operate with the circuit court;
15        4. To make arrangements with the public or quasi-public
16    libraries and museums for the use of their facilities by
17    teachers and pupils of the public schools;
18        5. To employ dentists and prescribe their duties for
19    the purpose of treating the pupils in the schools, but
20    accepting such treatment shall be optional with parents or
21    guardians;
22        6. To grant the use of assembly halls and classrooms
23    when not otherwise needed, including light, heat, and
24    attendants, for free public lectures, concerts, and other
25    educational and social interests, free of charge, under
26    such provisions and control as the principal of the

 

 

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1    affected attendance center may prescribe;
2        7. To apportion the pupils to the several schools;
3    provided that no pupil shall be excluded from or segregated
4    in any such school on account of his color, race, sex, or
5    nationality. The board shall take into consideration the
6    prevention of segregation and the elimination of
7    separation of children in public schools because of color,
8    race, sex, or nationality. Except that children may be
9    committed to or attend parental and social adjustment
10    schools established and maintained either for boys or girls
11    only. All records pertaining to the creation, alteration or
12    revision of attendance areas shall be open to the public.
13    Nothing herein shall limit the board's authority to
14    establish multi-area attendance centers or other student
15    assignment systems for desegregation purposes or
16    otherwise, and to apportion the pupils to the several
17    schools. Furthermore, beginning in school year 1994-95,
18    pursuant to a board plan adopted by October 1, 1993, the
19    board shall offer, commencing on a phased-in basis, the
20    opportunity for families within the school district to
21    apply for enrollment of their children in any attendance
22    center within the school district which does not have
23    selective admission requirements approved by the board.
24    The appropriate geographical area in which such open
25    enrollment may be exercised shall be determined by the
26    board of education. Such children may be admitted to any

 

 

09900SB0231sam001- 458 -LRB099 03162 NHT 47157 a

1    such attendance center on a space available basis after all
2    children residing within such attendance center's area
3    have been accommodated. If the number of applicants from
4    outside the attendance area exceed the space available,
5    then successful applicants shall be selected by lottery.
6    The board of education's open enrollment plan must include
7    provisions that allow low income students to have access to
8    transportation needed to exercise school choice. Open
9    enrollment shall be in compliance with the provisions of
10    the Consent Decree and Desegregation Plan cited in Section
11    34-1.01;
12        8. To approve programs and policies for providing
13    transportation services to students. Nothing herein shall
14    be construed to permit or empower the State Board of
15    Education to order, mandate, or require busing or other
16    transportation of pupils for the purpose of achieving
17    racial balance in any school;
18        9. Subject to the limitations in this Article, to
19    establish and approve system-wide curriculum objectives
20    and standards, including graduation standards, which
21    reflect the multi-cultural diversity in the city and are
22    consistent with State law, provided that for all purposes
23    of this Article courses or proficiency in American Sign
24    Language shall be deemed to constitute courses or
25    proficiency in a foreign language; and to employ principals
26    and teachers, appointed as provided in this Article, and

 

 

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1    fix their compensation. The board shall prepare such
2    reports related to minimal competency testing as may be
3    requested by the State Board of Education, and in addition
4    shall monitor and approve special education and bilingual
5    education programs and policies within the district to
6    assure that appropriate services are provided in
7    accordance with applicable State and federal laws to
8    children requiring services and education in those areas;
9        10. To employ non-teaching personnel or utilize
10    volunteer personnel for: (i) non-teaching duties not
11    requiring instructional judgment or evaluation of pupils,
12    including library duties; and (ii) supervising study
13    halls, long distance teaching reception areas used
14    incident to instructional programs transmitted by
15    electronic media such as computers, video, and audio,
16    detention and discipline areas, and school-sponsored
17    extracurricular activities. The board may further utilize
18    volunteer non-certificated personnel or employ
19    non-certificated personnel to assist in the instruction of
20    pupils under the immediate supervision of a teacher holding
21    a valid certificate, directly engaged in teaching subject
22    matter or conducting activities; provided that the teacher
23    shall be continuously aware of the non-certificated
24    persons' activities and shall be able to control or modify
25    them. The general superintendent shall determine
26    qualifications of such personnel and shall prescribe rules

 

 

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1    for determining the duties and activities to be assigned to
2    such personnel;
3        10.5. To utilize volunteer personnel from a regional
4    School Crisis Assistance Team (S.C.A.T.), created as part
5    of the Safe to Learn Program established pursuant to
6    Section 25 of the Illinois Violence Prevention Act of 1995,
7    to provide assistance to schools in times of violence or
8    other traumatic incidents within a school community by
9    providing crisis intervention services to lessen the
10    effects of emotional trauma on individuals and the
11    community; the School Crisis Assistance Team Steering
12    Committee shall determine the qualifications for
13    volunteers;
14        11. To provide television studio facilities in not to
15    exceed one school building and to provide programs for
16    educational purposes, provided, however, that the board
17    shall not construct, acquire, operate, or maintain a
18    television transmitter; to grant the use of its studio
19    facilities to a licensed television station located in the
20    school district; and to maintain and operate not to exceed
21    one school radio transmitting station and provide programs
22    for educational purposes;
23        12. To offer, if deemed appropriate, outdoor education
24    courses, including field trips within the State of
25    Illinois, or adjacent states, and to use school educational
26    funds for the expense of the said outdoor educational

 

 

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1    programs, whether within the school district or not;
2        13. During that period of the calendar year not
3    embraced within the regular school term, to provide and
4    conduct courses in subject matters normally embraced in the
5    program of the schools during the regular school term and
6    to give regular school credit for satisfactory completion
7    by the student of such courses as may be approved for
8    credit by the State Board of Education;
9        14. To insure against any loss or liability of the
10    board, the former School Board Nominating Commission,
11    Local School Councils, the Chicago Schools Academic
12    Accountability Council, or the former Subdistrict Councils
13    or of any member, officer, agent or employee thereof,
14    resulting from alleged violations of civil rights arising
15    from incidents occurring on or after September 5, 1967 or
16    from the wrongful or negligent act or omission of any such
17    person whether occurring within or without the school
18    premises, provided the officer, agent or employee was, at
19    the time of the alleged violation of civil rights or
20    wrongful act or omission, acting within the scope of his
21    employment or under direction of the board, the former
22    School Board Nominating Commission, the Chicago Schools
23    Academic Accountability Council, Local School Councils, or
24    the former Subdistrict Councils; and to provide for or
25    participate in insurance plans for its officers and
26    employees, including but not limited to retirement

 

 

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1    annuities, medical, surgical and hospitalization benefits
2    in such types and amounts as may be determined by the
3    board; provided, however, that the board shall contract for
4    such insurance only with an insurance company authorized to
5    do business in this State. Such insurance may include
6    provision for employees who rely on treatment by prayer or
7    spiritual means alone for healing, in accordance with the
8    tenets and practice of a recognized religious
9    denomination;
10        15. To contract with the corporate authorities of any
11    municipality or the county board of any county, as the case
12    may be, to provide for the regulation of traffic in parking
13    areas of property used for school purposes, in such manner
14    as is provided by Section 11-209 of The Illinois Vehicle
15    Code, approved September 29, 1969, as amended;
16        16. (a) To provide, on an equal basis, access to a high
17    school campus and student directory information to the
18    official recruiting representatives of the armed forces of
19    Illinois and the United States for the purposes of
20    informing students of the educational and career
21    opportunities available in the military if the board has
22    provided such access to persons or groups whose purpose is
23    to acquaint students with educational or occupational
24    opportunities available to them. The board is not required
25    to give greater notice regarding the right of access to
26    recruiting representatives than is given to other persons

 

 

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1    and groups. In this paragraph 16, "directory information"
2    means a high school student's name, address, and telephone
3    number.
4        (b) If a student or his or her parent or guardian
5    submits a signed, written request to the high school before
6    the end of the student's sophomore year (or if the student
7    is a transfer student, by another time set by the high
8    school) that indicates that the student or his or her
9    parent or guardian does not want the student's directory
10    information to be provided to official recruiting
11    representatives under subsection (a) of this Section, the
12    high school may not provide access to the student's
13    directory information to these recruiting representatives.
14    The high school shall notify its students and their parents
15    or guardians of the provisions of this subsection (b).
16        (c) A high school may require official recruiting
17    representatives of the armed forces of Illinois and the
18    United States to pay a fee for copying and mailing a
19    student's directory information in an amount that is not
20    more than the actual costs incurred by the high school.
21        (d) Information received by an official recruiting
22    representative under this Section may be used only to
23    provide information to students concerning educational and
24    career opportunities available in the military and may not
25    be released to a person who is not involved in recruiting
26    students for the armed forces of Illinois or the United

 

 

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1    States;
2        17. (a) To sell or market any computer program
3    developed by an employee of the school district, provided
4    that such employee developed the computer program as a
5    direct result of his or her duties with the school district
6    or through the utilization of the school district resources
7    or facilities. The employee who developed the computer
8    program shall be entitled to share in the proceeds of such
9    sale or marketing of the computer program. The distribution
10    of such proceeds between the employee and the school
11    district shall be as agreed upon by the employee and the
12    school district, except that neither the employee nor the
13    school district may receive more than 90% of such proceeds.
14    The negotiation for an employee who is represented by an
15    exclusive bargaining representative may be conducted by
16    such bargaining representative at the employee's request.
17        (b) For the purpose of this paragraph 17:
18            (1) "Computer" means an internally programmed,
19        general purpose digital device capable of
20        automatically accepting data, processing data and
21        supplying the results of the operation.
22            (2) "Computer program" means a series of coded
23        instructions or statements in a form acceptable to a
24        computer, which causes the computer to process data in
25        order to achieve a certain result.
26            (3) "Proceeds" means profits derived from

 

 

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1        marketing or sale of a product after deducting the
2        expenses of developing and marketing such product;
3        18. To delegate to the general superintendent of
4    schools, by resolution, the authority to approve contracts
5    and expenditures in amounts of $10,000 or less;
6        19. Upon the written request of an employee, to
7    withhold from the compensation of that employee any dues,
8    payments or contributions payable by such employee to any
9    labor organization as defined in the Illinois Educational
10    Labor Relations Act. Under such arrangement, an amount
11    shall be withheld from each regular payroll period which is
12    equal to the pro rata share of the annual dues plus any
13    payments or contributions, and the board shall transmit
14    such withholdings to the specified labor organization
15    within 10 working days from the time of the withholding;
16        19a. Upon receipt of notice from the comptroller of a
17    municipality with a population of 500,000 or more, a county
18    with a population of 3,000,000 or more, the Cook County
19    Forest Preserve District, the Chicago Park District, the
20    Metropolitan Water Reclamation District, the Chicago
21    Transit Authority, or a housing authority of a municipality
22    with a population of 500,000 or more that a debt is due and
23    owing the municipality, the county, the Cook County Forest
24    Preserve District, the Chicago Park District, the
25    Metropolitan Water Reclamation District, the Chicago
26    Transit Authority, or the housing authority by an employee

 

 

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1    of the Chicago Board of Education, to withhold, from the
2    compensation of that employee, the amount of the debt that
3    is due and owing and pay the amount withheld to the
4    municipality, the county, the Cook County Forest Preserve
5    District, the Chicago Park District, the Metropolitan
6    Water Reclamation District, the Chicago Transit Authority,
7    or the housing authority; provided, however, that the
8    amount deducted from any one salary or wage payment shall
9    not exceed 25% of the net amount of the payment. Before the
10    Board deducts any amount from any salary or wage of an
11    employee under this paragraph, the municipality, the
12    county, the Cook County Forest Preserve District, the
13    Chicago Park District, the Metropolitan Water Reclamation
14    District, the Chicago Transit Authority, or the housing
15    authority shall certify that (i) the employee has been
16    afforded an opportunity for a hearing to dispute the debt
17    that is due and owing the municipality, the county, the
18    Cook County Forest Preserve District, the Chicago Park
19    District, the Metropolitan Water Reclamation District, the
20    Chicago Transit Authority, or the housing authority and
21    (ii) the employee has received notice of a wage deduction
22    order and has been afforded an opportunity for a hearing to
23    object to the order. For purposes of this paragraph, "net
24    amount" means that part of the salary or wage payment
25    remaining after the deduction of any amounts required by
26    law to be deducted and "debt due and owing" means (i) a

 

 

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1    specified sum of money owed to the municipality, the
2    county, the Cook County Forest Preserve District, the
3    Chicago Park District, the Metropolitan Water Reclamation
4    District, the Chicago Transit Authority, or the housing
5    authority for services, work, or goods, after the period
6    granted for payment has expired, or (ii) a specified sum of
7    money owed to the municipality, the county, the Cook County
8    Forest Preserve District, the Chicago Park District, the
9    Metropolitan Water Reclamation District, the Chicago
10    Transit Authority, or the housing authority pursuant to a
11    court order or order of an administrative hearing officer
12    after the exhaustion of, or the failure to exhaust,
13    judicial review;
14        20. The board is encouraged to employ a sufficient
15    number of certified school counselors to maintain a
16    student/counselor ratio of 250 to 1 by July 1, 1990. Each
17    counselor shall spend at least 75% of his work time in
18    direct contact with students and shall maintain a record of
19    such time;
20        21. To make available to students vocational and career
21    counseling and to establish 5 special career counseling
22    days for students and parents. On these days
23    representatives of local businesses and industries shall
24    be invited to the school campus and shall inform students
25    of career opportunities available to them in the various
26    businesses and industries. Special consideration shall be

 

 

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1    given to counseling minority students as to career
2    opportunities available to them in various fields. For the
3    purposes of this paragraph, minority student means a person
4    who is any of the following:
5        (a) American Indian or Alaska Native (a person having
6    origins in any of the original peoples of North and South
7    America, including Central America, and who maintains
8    tribal affiliation or community attachment).
9        (b) Asian (a person having origins in any of the
10    original peoples of the Far East, Southeast Asia, or the
11    Indian subcontinent, including, but not limited to,
12    Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
13    the Philippine Islands, Thailand, and Vietnam).
14        (c) Black or African American (a person having origins
15    in any of the black racial groups of Africa). Terms such as
16    "Haitian" or "Negro" can be used in addition to "Black or
17    African American".
18        (d) Hispanic or Latino (a person of Cuban, Mexican,
19    Puerto Rican, South or Central American, or other Spanish
20    culture or origin, regardless of race).
21        (e) Native Hawaiian or Other Pacific Islander (a person
22    having origins in any of the original peoples of Hawaii,
23    Guam, Samoa, or other Pacific Islands).
24        Counseling days shall not be in lieu of regular school
25    days;
26        22. To report to the State Board of Education the

 

 

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1    annual student dropout rate and number of students who
2    graduate from, transfer from or otherwise leave bilingual
3    programs;
4        23. Except as otherwise provided in the Abused and
5    Neglected Child Reporting Act or other applicable State or
6    federal law, to permit school officials to withhold, from
7    any person, information on the whereabouts of any child
8    removed from school premises when the child has been taken
9    into protective custody as a victim of suspected child
10    abuse. School officials shall direct such person to the
11    Department of Children and Family Services, or to the local
12    law enforcement agency if appropriate;
13        24. To develop a policy, based on the current state of
14    existing school facilities, projected enrollment and
15    efficient utilization of available resources, for capital
16    improvement of schools and school buildings within the
17    district, addressing in that policy both the relative
18    priority for major repairs, renovations and additions to
19    school facilities, and the advisability or necessity of
20    building new school facilities or closing existing schools
21    to meet current or projected demographic patterns within
22    the district;
23        25. To make available to the students in every high
24    school attendance center the ability to take all courses
25    necessary to comply with the Board of Higher Education's
26    college entrance criteria effective in 1993;

 

 

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1        26. To encourage mid-career changes into the teaching
2    profession, whereby qualified professionals become
3    certified teachers, by allowing credit for professional
4    employment in related fields when determining point of
5    entry on teacher pay scale;
6        27. To provide or contract out training programs for
7    administrative personnel and principals with revised or
8    expanded duties pursuant to this Act in order to assure
9    they have the knowledge and skills to perform their duties;
10        28. To establish a fund for the prioritized special
11    needs programs, and to allocate such funds and other lump
12    sum amounts to each attendance center in a manner
13    consistent with the provisions of part 4 of Section 34-2.3.
14    Nothing in this paragraph shall be construed to require any
15    additional appropriations of State funds for this purpose;
16        29. (Blank);
17        30. Notwithstanding any other provision of this Act or
18    any other law to the contrary, to contract with third
19    parties for services otherwise performed by employees,
20    including those in a bargaining unit, and to layoff those
21    employees upon 14 days written notice to the affected
22    employees. Those contracts may be for a period not to
23    exceed 5 years and may be awarded on a system-wide basis.
24    The board may not operate more than 30 contract schools,
25    provided that the board may operate an additional 5
26    contract turnaround schools pursuant to item (5.5) of

 

 

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1    subsection (d) of Section 34-8.3 of this Code;
2        31. To promulgate rules establishing procedures
3    governing the layoff or reduction in force of employees and
4    the recall of such employees, including, but not limited
5    to, criteria for such layoffs, reductions in force or
6    recall rights of such employees and the weight to be given
7    to any particular criterion. Such criteria shall take into
8    account factors including, but not be limited to,
9    qualifications, certifications, experience, performance
10    ratings or evaluations, and any other factors relating to
11    an employee's job performance;
12        32. To develop a policy to prevent nepotism in the
13    hiring of personnel or the selection of contractors;
14        33. To enter into a partnership agreement, as required
15    by Section 34-3.5 of this Code, and, notwithstanding any
16    other provision of law to the contrary, to promulgate
17    policies, enter into contracts, and take any other action
18    necessary to accomplish the objectives and implement the
19    requirements of that agreement; and
20        34. To establish a Labor Management Council to the
21    board comprised of representatives of the board, the chief
22    executive officer, and those labor organizations that are
23    the exclusive representatives of employees of the board and
24    to promulgate policies and procedures for the operation of
25    the Council.
26    The specifications of the powers herein granted are not to

 

 

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1be construed as exclusive but the board shall also exercise all
2other powers that they may be requisite or proper for the
3maintenance and the development of a public school system, not
4inconsistent with the other provisions of this Article or
5provisions of this Code which apply to all school districts.
6    In addition to the powers herein granted and authorized to
7be exercised by the board, it shall be the duty of the board to
8review or to direct independent reviews of special education
9expenditures and services. The board shall file a report of
10such review with the General Assembly on or before May 1, 1990.
11(Source: P.A. 99-143, eff. 7-27-15.)
 
12    (105 ILCS 5/34-18.30)
13    Sec. 34-18.30. Dependents of military personnel; no
14tuition charge. If, at the time of enrollment, a dependent of
15United States military personnel is housed in temporary housing
16located outside of the school district, but will be living
17within the district within 60 days after the time of initial
18enrollment, the dependent must be allowed to enroll, subject to
19the requirements of this Section, and must not be charged
20tuition. Any United States military personnel attempting to
21enroll a dependent under this Section shall provide proof that
22the dependent will be living within the district within 60 days
23after the time of initial enrollment. Proof of residency may
24include, but is not limited to, postmarked mail addressed to
25the military personnel and sent to an address located within

 

 

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1the district, a lease agreement for occupancy of a residence
2located within the district, or proof of ownership of a
3residence located within the district. Non-resident dependents
4of United States military personnel attending school on a
5tuition-free basis may be counted for the purposes of
6determining the apportionment of State aid provided under
7Section 18-8.05 or 18-8.15 of this Code.
8(Source: P.A. 95-331, eff. 8-21-07.)
 
9    (105 ILCS 5/34-43.1)  (from Ch. 122, par. 34-43.1)
10    Sec. 34-43.1. (A) Limitation of noninstructional costs. It
11is the purpose of this Section to establish for the Board of
12Education and the general superintendent of schools
13requirements and standards which maximize the proportion of
14school district resources in direct support of educational,
15program, and building maintenance and safety services for the
16pupils of the district, and which correspondingly minimize the
17amount and proportion of such resources associated with
18centralized administration, administrative support services,
19and other noninstructional services.
20    For the 1989-90 school year and for all subsequent school
21years, the Board of Education shall undertake budgetary and
22expenditure control actions which limit the administrative
23expenditures of the Board of Education to levels, as provided
24for in this Section, which represent an average of the
25administrative expenses of all school districts in this State

 

 

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1not subject to Article 34.
2    (B) Certification of expenses by the State Superintendent
3of Education. The State Superintendent of Education shall
4annually certify, on or before May 1, to the Board of Education
5and the School Finance Authority, for the applicable school
6year, the following information:
7        (1) the annual expenditures of all school districts of
8    the State not subject to Article 34 properly attributable
9    to expenditure functions defined by the rules and
10    regulations of the State Board of Education as: 2210
11    (Improvement of Instructional Services); 2300 (Support
12    Services - General Administration) excluding, however,
13    2320 (Executive Administrative Services); 2490 (Other
14    Support Services - School Administration); 2500 (Support
15    Services - Business); 2600 (Support Services - Central);
16        (2) the total annual expenditures of all school
17    districts not subject to Article 34 attributable to the
18    Education Fund, the Operations, Building and Maintenance
19    Fund, the Transportation Fund and the Illinois Municipal
20    Retirement Fund of the several districts, as defined by the
21    rules and regulations of the State Board of Education; and
22        (3) a ratio, to be called the statewide average of
23    administrative expenditures, derived by dividing the
24    expenditures certified pursuant to paragraph (B)(1) by the
25    expenditures certified pursuant to paragraph (B)(2).
26    For purposes of the annual certification of expenditures

 

 

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1and ratios required by this Section, the "applicable year" of
2certification shall initially be the 1986-87 school year and,
3in sequent years, each succeeding school year.
4    The State Superintendent of Education shall consult with
5the Board of Education to ascertain whether particular
6expenditure items allocable to the administrative functions
7enumerated in paragraph (B)(1) are appropriately or
8necessarily higher in the applicable school district than in
9the rest of the State due to noncomparable factors. The State
10Superintendent shall also review the relevant cost proportions
11in other large urban school districts. The State Superintendent
12shall also review the expenditure categories in paragraph
13(B)(1) to ascertain whether they contain school-level
14expenses. If he or she finds that adjustments to the formula
15are appropriate or necessary to establish a more fair and
16comparable standard for administrative cost for the Board of
17Education or to exclude school-level expenses, the State
18Superintendent shall recommend to the School Finance Authority
19rules and regulations adjusting particular subcategories in
20this subsection (B) or adjusting certain costs in determining
21the budget and expenditure items properly attributable to the
22functions or otherwise adjust the formula.
23    (C) Administrative expenditure limitations. The annual
24budget of the Board of Education, as adopted and implemented,
25and the related annual expenditures for the school year, shall
26reflect a limitation on administrative outlays as required by

 

 

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1the following provisions, taking into account any adjustments
2established by the State Superintendent of Education: (1) the
3budget and expenditures of the Board of Education for the
41989-90 school year shall reflect a ratio of administrative
5expenditures to total expenditures equal to or less than the
6statewide average of administrative expenditures for the
71986-87 school year as certified by the State Superintendent of
8Education pursuant to paragraph (B)(3); (2) for the 1990-91
9school year and for all subsequent school years, the budget and
10expenditures of the Board of Education shall reflect a ratio of
11administrative expenditures to total expenditures equal to or
12less than the statewide average of administrative expenditures
13certified by the State Superintendent of Education for the
14applicable year pursuant to paragraph (B)(3); (3) if for any
15school year the budget of the Board of Education reflects a
16ratio of administrative expenditures to total expenditures
17which exceeds the applicable statewide average, the Board of
18Education shall reduce expenditure items allocable to the
19administrative functions enumerated in paragraph (B)(1) such
20that the Board of Education's ratio of administrative
21expenditures to total expenditures is equal to or less than the
22applicable statewide average ratio.
23    For purposes of this Section, the ratio of administrative
24expenditures to the total expenditures of the Board of
25Education, as applied to the budget of the Board of Education,
26shall mean: the budgeted expenditure items of the Board of

 

 

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1Education properly attributable to the expenditure functions
2identified in paragraph (B)(1) divided by the total budgeted
3expenditures of the Board of Education properly attributable to
4the Board of Education funds corresponding to those funds
5identified in paragraph (B)(2), exclusive of any monies
6budgeted for payment to the Public School Teachers' Pension and
7Retirement System, attributable to payments due from the
8General Funds of the State of Illinois.
9     The annual expenditure of the Board of Education for 2320
10(Executive Administrative Services) for the 1989-90 school
11year shall be no greater than the 2320 expenditure for the
121988-89 school year. The annual expenditure of the Board of
13Education for 2320 for the 1990-91 school year and each
14subsequent school year shall be no greater than the 2320
15expenditure for the immediately preceding school year or the
161988-89 school year, whichever is less. This annual expenditure
17limitation may be adjusted in each year in an amount not to
18exceed any change effective during the applicable school year
19in salary to be paid under the collective bargaining agreement
20with instructional personnel to which the Board is a party and
21in benefit costs either required by law or such collective
22bargaining agreement.
23    (D) Cost control measures. In undertaking actions to
24control or reduce expenditure items necessitated by the
25administrative expenditure limitations of this Section, the
26Board of Education shall give priority consideration to

 

 

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1reductions or cost controls with the least effect upon direct
2services to students or instructional services for pupils, and
3upon the safety and well-being of pupils, and, as applicable,
4with the particular costs or functions to which the Board of
5Education is higher than the statewide average.
6    For purposes of assuring that the cost control priorities
7of this subsection (D) are met, the State Superintendent of
8Education shall, with the assistance of the Board of Education,
9review the cost allocation practices of the Board of Education,
10and the State Superintendent of Education shall thereafter
11recommend to the School Finance Authority rules and regulations
12which define administrative areas which most impact upon the
13direct and instructional needs of students and upon the safety
14and well-being of the pupils of the district. No position
15closed shall be reopened using State or federal categorical
16funds.
17    (E) Report of Audited Information. For the 1988-89 school
18year and for all subsequent school years, the Board of
19Education shall file with the State Board of Education the
20Annual Financial Report and its audit, as required by the rules
21of the State Board of Education. Such reports shall be filed no
22later than February 15 following the end of the school year of
23the Board of Education, beginning with the report to be filed
24no later than February 15, 1990 for the 1988-89 school year.
25    As part of the required Annual Financial Report, the Board
26of Education shall provide a detailed accounting of the central

 

 

09900SB0231sam001- 479 -LRB099 03162 NHT 47157 a

1level, district, bureau and department costs and personnel
2included within expenditure functions included in paragraph
3(B)(1). The nature and detail of the reporting required for
4these functions shall be prescribed by the State Board of
5Education in rules and regulations. A copy of this detailed
6accounting shall also be provided annually to the School
7Finance Authority and the public. This report shall contain a
8reconciliation to the board of education's adopted budget for
9that fiscal year, specifically delineating administrative
10functions.
11    If the information required under this Section is not
12provided by the Board of Education in a timely manner, or is
13initially or subsequently determined by the State
14Superintendent of Education to be incomplete or inaccurate, the
15State Superintendent shall, in writing, notify the Board of
16Education of reporting deficiencies. The Board of Education
17shall, within 60 days of such notice, address the reporting
18deficiencies identified. If the State Superintendent of
19Education does not receive satisfactory response to these
20reporting deficiencies within 60 days, the next payment of
21general State aid or primary State aid due the Board of
22Education under Section 18-8 or Section 18-8.15, as applicable,
23and all subsequent payments, shall be withheld by the State
24Superintendent of Education until the enumerated deficiencies
25have been addressed.
26    Utilizing the Annual Financial Report, the State

 

 

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1Superintendent of Education shall certify on or before May 1 to
2the School Finance Authority the Board of Education's ratio of
3administrative expenditures to total expenditures for the
41988-89 school year and for each succeeding school year. Such
5certification shall indicate the extent to which the
6administrative expenditure ratio of the Board of Education
7conformed to the limitations required in subsection (C) of this
8Section, taking into account any adjustments of the limitations
9which may have been recommended by the State Superintendent of
10Education to the School Finance Authority. In deriving the
11administrative expenditure ratio of the Chicago Board of
12Education, the State Superintendent of Education shall utilize
13the definition of this ratio prescribed in subsection (C) of
14this Section, except that the actual expenditures of the Board
15of Education shall be substituted for budgeted expenditure
16items.
17    (F) Approval and adjustments to administrative expenditure
18limitations. The School Finance Authority organized under
19Article 34A shall monitor the Board of Education's adherence to
20the requirements of this Section. As part of its responsibility
21the School Finance Authority shall determine whether the Board
22of Education's budget for the next school year, and the
23expenditures for a prior school year, comply with the
24limitation of administrative expenditures required by this
25Section. The Board of Education and the State Board of
26Education shall provide such information as is required by the

 

 

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1School Finance Authority in order for the Authority to
2determine compliance with the provisions of this Section. If
3the Authority determines that the budget proposed by the Board
4of Education does not meet the cost control requirements of
5this Section, the Board of Education shall undertake budgetary
6reductions, consistent with the requirements of this Section,
7to bring the proposed budget into compliance with such cost
8control limitations.
9    If, in formulating cost control and cost reduction
10alternatives, the Board of Education believes that meeting the
11cost control requirements of this Section related to the budget
12for the ensuing year would impair the education, safety, or
13well-being of the pupils of the school district, the Board of
14Education may request that the School Finance Authority make
15adjustments to the limitations required by this Section. The
16Board of Education shall specify the amount, nature, and
17reasons for the relief required and shall also identify cost
18reductions which can be made in expenditure functions not
19enumerated in paragraph (B)(1), which would serve the purposes
20of this Section.
21    The School Finance Authority shall consult with the State
22Superintendent of Education concerning the reasonableness from
23an educational administration perspective of the adjustments
24sought by the Board of Education. The School Finance Authority
25shall provide an opportunity for the public to comment upon the
26reasonableness of the Board's request. If, after such

 

 

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1consultation, the School Finance Authority determines that all
2or a portion of the adjustments sought by the Board of
3Education are reasonably appropriate or necessary, the
4Authority may grant such relief from the provisions of this
5Section which the Authority deems appropriate. Adjustments so
6granted apply only to the specific school year for which the
7request was made.
8    In the event that the School Finance Authority determines
9that the Board of Education has failed to achieve the required
10administrative expenditure limitations for a prior school
11year, or if the Authority determines that the Board of
12Education has not met the requirements of subsection (F), the
13Authority shall make recommendations to the Board of Education
14concerning appropriate corrective actions. If the Board of
15Education fails to provide adequate assurance to the Authority
16that appropriate corrective actions have been or will be taken,
17the Authority may, within 60 days thereafter, require the board
18to adjust its current budget to correct for the prior year's
19shortage or may recommend to the members of the General
20Assembly and the Governor such sanctions or remedial actions as
21will serve to deter any further such failures on the part of
22the Board of Education.
23    To assist the Authority in its monitoring
24responsibilities, the Board of Education shall provide such
25reports and information as are from time to time required by
26the Authority.

 

 

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1    (G) Independent reviews of administrative expenditures.
2The School Finance Authority may direct independent reviews of
3the administrative and administrative support expenditures and
4services and other non-instructional expenditure functions of
5the Board of Education. The Board of Education shall afford
6full cooperation to the School Finance Authority in such review
7activity. The purpose of such reviews shall be to verify
8specific targets for improved operating efficiencies of the
9Board of Education, to identify other areas of potential
10efficiencies, and to assure full and proper compliance by the
11Board of Education with all requirements of this Section.
12    In the conduct of reviews under this subsection, the
13Authority may request the assistance and consultation of the
14State Superintendent of Education with regard to questions of
15efficiency and effectiveness in educational administration.
16    (H) Reports to Governor and General Assembly. On or before
17May 1, 1991 and no less frequently than yearly thereafter, the
18School Finance Authority shall provide to the Governor, the
19State Board of Education, and the members of the General
20Assembly an annual report, as outlined in Section 34A-606,
21which includes the following information: (1) documenting the
22compliance or non-compliance of the Board of Education with the
23requirements of this Section; (2) summarizing the costs,
24findings, and recommendations of any reviews directed by the
25School Finance Authority, and the response to such
26recommendations made by the Board of Education; and (3)

 

 

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1recommending sanctions or legislation necessary to fulfill the
2intent of this Section.
3(Source: P.A. 86-124; 86-1477.)
 
4    (105 ILCS 5/34-53)  (from Ch. 122, par. 34-53)
5    Sec. 34-53. Tax levies; Purpose; Rates. For the purpose of
6establishing and supporting free schools for not fewer than 9
7months in each year and defraying their expenses the board may
8levy annually, upon all taxable property of such district for
9educational purposes a tax for the fiscal years 1996 and each
10succeeding fiscal year at a rate of not to exceed the sum of
11(i) 2.81% 3.07% (or such other rate as may be set by law
12independent of the rate difference described in (ii) below) and
13(ii) the difference between .50% and the rate per cent of taxes
14extended for a School Finance Authority organized under Article
1534A of the School Code, for the calendar year in which the
16applicable fiscal year of the board begins as determined by the
17county clerk and certified to the board pursuant to Section
1818-110 of the Property Tax Code, of the value as equalized or
19assessed by the Department of Revenue for the year in which
20such levy is made.
21    For fiscal year 2017 and each succeeding fiscal year, for
22the purpose of making an employer contribution to the Public
23School Teachers' Pension and Retirement Fund of Chicago, the
24board shall levy annually, upon all taxable property located
25within the district, a tax at the rate of 0.26%. The proceeds

 

 

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1from this additional tax shall be paid directly to the Pension
2Fund. The changes made to this Section by this amendatory Act
3of the 99th General Assembly: (1) do not authorize an increase
4in the district's maximum aggregate extension or limiting rate
5under the Property Tax Extension Limitation Law; and (2)
6constitute a continuation of the existing total maximum rate
7under this Section and are not a new rate for the purposes of
8the Property Tax Extension Limitation Law.
9     Nothing in this amendatory Act of 1995 shall in any way
10impair or restrict the levy or extension of taxes pursuant to
11any tax levies for any purposes of the board lawfully made
12prior to the adoption of this amendatory Act of 1995.
13    Notwithstanding any other provision of this Code and in
14addition to any other methods provided for increasing the tax
15rate the board may, by proper resolution, cause a proposition
16to increase the annual tax rate for educational purposes to be
17submitted to the voters of such district at any general or
18special election. The maximum rate for educational purposes
19shall not exceed 4.00%. The election called for such purpose
20shall be governed by Article 9 of this Act. If at such election
21a majority of the votes cast on the proposition is in favor
22thereof, the Board of Education may thereafter until such
23authority is revoked in a like manner, levy annually the tax so
24authorized.
25    For purposes of this Article, educational purposes for
26fiscal years beginning in 1995 and each subsequent year shall

 

 

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1also include, but not be limited to, in addition to those
2purposes authorized before this amendatory Act of 1995,
3constructing, acquiring, leasing (other than from the Public
4Building Commission of Chicago), operating, maintaining,
5improving, repairing, and renovating land, buildings,
6furnishings, and equipment for school houses and buildings, and
7related incidental expenses, and provision of special
8education, furnishing free textbooks and instructional aids
9and school supplies, establishing, equipping, maintaining, and
10operating supervised playgrounds under the control of the
11board, school extracurricular activities, and stadia, social
12center, and summer swimming pool programs open to the public in
13connection with any public school; making an employer
14contribution to the Public School Teachers' Pension and
15Retirement Fund as required by Section 17-129 of the Illinois
16Pension Code; and providing an agricultural science school,
17including site development and improvements, maintenance
18repairs, and supplies. Educational purposes also includes
19student transportation expenses.
20    All collections of all taxes levied for fiscal years ending
21before 1996 under this Section or under Sections 34-53.2,
2234-53.3, 34-58, 34-60, or 34-62 of this Article as in effect
23prior to this amendatory Act of 1995 may be used for any
24educational purposes as defined by this amendatory Act of 1995
25and need not be used for the particular purposes for which they
26were levied. The levy and extension of taxes pursuant to this

 

 

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1Section as amended by this amendatory Act of 1995 shall not
2constitute a new or increased tax rate within the meaning of
3the Property Tax Extension Limitation Law or the One-year
4Property Tax Extension Limitation Law.
5    The rate at which taxes may be levied for the fiscal year
6beginning September 1, 1996, for educational purposes shall be
7the full rate authorized by this Section for such taxes for
8fiscal years ending after 1995.
9(Source: P.A. 88-511; 88-670, eff. 12-2-94; 89-15, eff.
105-30-95.)
 
11    Section 950. The Educational Opportunity for Military
12Children Act is amended by changing Section 25 as follows:
 
13    (105 ILCS 70/25)
14    Sec. 25. Tuition for children of active duty military
15personnel who are transfer students. If a student who is a
16child of active duty military personnel is (i) placed with a
17non-custodial parent and (ii) as a result of placement, must
18attend a non-resident school district, then the student must
19not be charged the tuition of the school that the student
20attends as a result of placement with the non-custodial parent
21and the student must be counted in the calculation of average
22daily attendance under Section 18-8.05 or 18-8.15 of the School
23Code.
24(Source: P.A. 98-673, eff. 6-30-14.)
 

 

 

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1    Section 955. The Illinois Public Aid Code is amended by
2changing Section 5-16.4 as follows:
 
3    (305 ILCS 5/5-16.4)
4    Sec. 5-16.4. Medical Assistance Provider Payment Fund.
5    (a) There is created in the State treasury the Medical
6Assistance Provider Payment Fund. Interest earned by the Fund
7shall be credited to the Fund.
8    (b) The Fund is created for the purpose of disbursing
9moneys as follows:
10        (1) For medical services provided to recipients of aid
11    under Articles V, VI, and XII.
12        (2) For payment of administrative expenses incurred by
13    the Illinois Department or its agent in performing the
14    activities authorized by this Section.
15        (3) For making transfers to the General Obligation Bond
16    Retirement and Interest Fund, as those transfers are
17    authorized in the proceedings authorizing debt under the
18    Medicaid Liability Liquidity Borrowing Act, but transfers
19    made under this paragraph (3) may not exceed the principal
20    amount of debt issued under that Act.
21    Disbursements from the Fund, other than transfers to the
22General Obligation Bond Retirement and Interest Fund (which
23shall be made in accordance with the provisions of the Medicaid
24Liability Liquidity Borrowing Act), shall be by warrants drawn

 

 

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1by the State Comptroller upon receipt of vouchers duly executed
2and certified by the Illinois Department.
3    (c) The Fund shall consist of the following:
4        (1) All federal matching funds received by the Illinois
5    Department as a result of expenditures made by the Illinois
6    Department that are attributable to moneys deposited into
7    the Fund.
8        (2) Proceeds from any short-term borrowing directed to
9    the Fund by the Governor pursuant to the Medicaid Liability
10    Liquidity Borrowing Act.
11        (3) Amounts transferred into the Fund under subsection
12    (d) of this Section.
13        (4) All other moneys received for the Fund from any
14    other source, including interest earned on those moneys.
15    (d) Beginning July 1, 1995, on the 13th and 26th days of
16each month the State Comptroller and Treasurer shall transfer
17from the General Revenue Fund to the Medical Assistance
18Provider Payment Fund an amount equal to 1/48th of the annual
19Medical Assistance appropriation to the Department of
20Healthcare and Family Services (formerly Illinois Department
21of Public Aid) from the Medical Assistance Provider Payment
22Fund, plus cumulative deficiencies from those prior transfers.
23In addition to those transfers, the State Comptroller and
24Treasurer may transfer from the General Revenue Fund to the
25Medical Assistance Provider Payment Fund as much as is
26necessary to pay claims pursuant to the new twice-monthly

 

 

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1payment schedule established in Section 5-16.5 and to avoid
2interest liabilities under the State Prompt Payment Act. No
3transfers made pursuant to this subsection shall interfere with
4the timely payment of the general State aid or primary State
5aid payment made pursuant to Section 18-11 of the School Code.
6(Source: P.A. 95-331, eff. 8-21-07.)
 
7    Section 995. Savings clause. Any repeal or amendment made
8by this Act shall not affect or impair any of the following:
9suits pending or rights existing at the time this Act takes
10effect; any grant or conveyance made or right acquired or cause
11of action now existing under any Section, Article, or Act
12repealed or amended by this Act; the validity of any bonds or
13other obligations issued or sold and constituting valid
14obligations of the issuing authority at the time this Act takes
15effect; the validity of any contract; the validity of any tax
16levied under any law in effect prior to the effective date of
17this Act; or any offense committed, act done, penalty,
18punishment, or forfeiture incurred or any claim, right, power,
19or remedy accrued under any law in effect prior to the
20effective date of this Act.
 
21    Section 999. Effective date. This Act takes effect upon
22becoming law.".