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90_HB1696sam001
LRB9004653KDksam
1 AMENDMENT TO HOUSE BILL 1696
2 AMENDMENT NO. . Amend House Bill 1696 by replacing
3 everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the
5 Local Option Property Tax Reduction Act.
6 Section 5. Definitions. In this Act:
7 "Taxable income" means that portion of the net income of
8 the taxpayer which is allocable and apportionable to the
9 school district under the provisions of this Act and the
10 regulations promulgated thereunder.
11 "Net income" means the net income of the taxpayer as
12 defined and as determined and computed for the taxable year
13 under the provisions of the Illinois Income Tax Act.
14 "Taxable year" means the calendar year, or the fiscal
15 year ending in such calendar year, upon the basis of which
16 taxable income is computed under this Act, and also includes
17 a fractional part of a year for which income is earned.
18 "Resident" means (i) an individual that is in the school
19 district for other than a temporary transitory purpose during
20 the taxable year, or who is domiciled in that school district
21 but is absent therefrom for a temporary or transitory purpose
22 during the taxable year and (ii) a corporation if it does
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1 business within the school district, but only to the extent
2 of the income that it earns from business conducted within
3 that school district.
4 Section 10. Referendum; imposition of tax; limitations.
5 The school board of each school district, including special
6 charter districts as defined in Section 1-3 of the School
7 Code and school districts organized under Article 34 of that
8 Code, may by proper resolution or shall upon petition of 5%
9 of the number of voters who voted in the school district in
10 the last gubernatorial election cause to be submitted to the
11 voters of the school district at a general or primary
12 election in accordance with the general election law a
13 proposition to authorize an annual local income tax for
14 schools at a rate not to exceed 2%, measured as a percentage
15 of the taxable income of individuals and corporations and
16 imposed only in increments of 0.25%, to be imposed on every
17 individual and corporation on the privilege of earning or
18 receiving income in or as a resident of the school district.
19 The resolution or petition to submit the proposition to the
20 voters of the district shall be in accordance with the
21 general election law. The proposition as submitted at the
22 referendum shall specify the annual rate at which the tax is
23 proposed to be imposed on individuals, the annual rate at
24 which the tax is proposed to be imposed on corporations, and
25 that the taxes collected shall be used to abate the extension
26 in that year of any real property taxes levied by the
27 district for lawful school purposes. The rate of tax imposed
28 under this Act on corporations shall not exceed the rate
29 imposed on individuals by more than a ratio of 8 to 5.
30 Section 15. Apportionment of income. The method of
31 allocating and apportioning income earned in the school
32 district by individuals or corporations that earn only a
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1 portion of their income in that district shall be established
2 by rules adopted by the Department of Revenue for that
3 purpose. The method so established shall be determined, as
4 near as may be, in accordance with the provisions of Article
5 III of the Illinois Income Tax Act governing the manner in
6 which income and items of deduction are allocated and
7 apportioned to this State with respect to part-year residents
8 and other persons.
9 Section 20. Additional referenda. The school board of a
10 school district may by resolution, or shall upon the petition
11 of 5% of the number of voters who voted in the school
12 district in the last gubernatorial election, cause to be
13 submitted to the voters of that district at a primary or
14 general election in accordance with the general election law
15 any of the following:
16 (i) A proposition to decrease (but only in
17 increments of 0.25%) or to increase (but only in
18 increments of 0.25%) the annual rate for the local income
19 tax for schools imposed under Section 10.
20 (ii) In case authority to impose the local income
21 tax for schools has been rejected or repealed by the
22 voters at a prior referendum, a proposition to authorize
23 or again authorize the local income tax for schools to be
24 so imposed.
25 (iii) In case a proposition to authorize the
26 imposition of or to decrease the rate of the local income
27 tax for schools has been approved by the voters at a
28 prior referendum, a proposition to repeal that local
29 income tax for schools.
30 Any resolution or petition under this Section to submit
31 to the voters of the school district a proposition to
32 increase or decrease the annual rate for the local income tax
33 for schools shall specify the annual rate at which the tax is
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1 proposed to be imposed.
2 Referenda under this Section shall be governed by the
3 general election law. If a majority of the votes cast is in
4 favor of the proposition to decrease or increase the rate of
5 or to authorize imposition of the local income tax for
6 schools, the school board shall thereafter, until the
7 authority is revoked in like manner, impose the annual tax as
8 authorized. If a majority of the votes cast is in favor of
9 the proposition to repeal the local income tax for schools,
10 that tax shall not thereafter be imposed unless again
11 authorized as provided in this Section.
12 Section 25. Collection.
13 (a) Any tax authorized under this Act shall be imposed,
14 increased, decreased, or repealed effective at the beginning
15 of the second calendar quarter beginning after certification
16 by the proper election officials of the results of the
17 referendum that authorizes imposing, increasing, decreasing,
18 or repealing the tax. The tax so imposed shall be collected
19 by the Department of Revenue. The certification by the
20 proper election officials of the results of the referendum
21 authorizing the tax and the certification by the school board
22 to the Department of Revenue of the rate of the tax to be
23 imposed under this Act shall constitute the authority of the
24 Department of Revenue to collect the tax. Whenever a
25 proposition to authorize imposition of the local income tax
26 for schools is approved by the voters of any school district
27 as provided in this Act, the county clerk of each county in
28 which that school district is located shall promptly certify
29 the territorial boundaries of the district to the Department
30 of Revenue. Thereafter, the Department shall (i) promptly
31 notify all individual and corporate residents of the district
32 who have previously filed a return with respect to the taxes
33 imposed by the Illinois Income Tax Act that the local income
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1 tax for schools has been imposed within the district and the
2 manner in which the tax is to be collected by and paid to the
3 Department of Revenue and (ii) publish notice in a newspaper
4 published in the school district, or if there is no such
5 newspaper then in a newspaper published in the county and
6 having circulation in the school district, that the local
7 income tax for schools has been imposed within the district
8 and the manner in which the tax is to be collected by and
9 paid to the Department of Revenue. Any tax imposed under
10 this Act shall be collected by and paid to the Department of
11 Revenue at the same time and in the same manner, with the
12 same withholding and estimated payment requirements and
13 subject to the same assessment and refund procedures,
14 penalties, and interest, as the tax imposed by the Illinois
15 Income Tax Act. Except as provided in subsection (b) of this
16 Section, the Department of Revenue shall forthwith pay over
17 to the State Treasurer, ex officio, as trustee, all moneys
18 received by it under this Section to be deposited into a
19 special account that the State Treasurer and State
20 Comptroller shall establish and maintain for that school
21 district in the Local Option Property Tax Reduction Fund, a
22 special fund that is hereby created in the State treasury, to
23 be held and disbursed by the Treasurer as provided in this
24 Section and Section 30. All interest earned from the
25 investment of any moneys from time to time held in the Local
26 Option Property Tax Reduction Fund and any special accounts
27 established therein shall be retained by the Treasurer to be
28 applied toward the costs incurred by the Department of
29 Revenue in administering and enforcing this Act.
30 (b) The Local Option Property Tax Reduction Refund Fund
31 is hereby created in the State Treasury. The Department of
32 Revenue shall deposit a percentage of the amounts collected
33 from the tax imposed under this Act by any school district
34 into a special account that the State Treasurer and State
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1 Comptroller shall establish and maintain within the Local
2 Option Property Tax Reduction Refund Fund for the purpose of
3 paying refunds resulting from overpayment of tax liability
4 under this Act with respect to that school district. The
5 Department of Revenue shall determine the percentage of the
6 amounts collected from the tax imposed under this Act by any
7 school district that is to be deposited into the special
8 account maintained in the Local Option Property Tax Reduction
9 Refund Fund to pay refunds resulting from overpayment of tax
10 liability under this Act with respect to that school district
11 and shall certify that percentage to the Comptroller, all in
12 accordance with rules adopted by the Department of Revenue
13 for purposes of this Section. Money in the special account
14 maintained in the Local Option Property Tax Reduction Refund
15 Fund with respect to any school district shall be expended
16 exclusively for the purpose of paying refunds resulting from
17 overpayment of tax liability under this Act with respect to
18 that school district. The Director of Revenue shall order
19 payment of refunds resulting from overpayment of tax
20 liability under this Act from the special account maintained
21 with respect to a school district in the Local Option
22 Property Tax Reduction Refund Fund only to the extent that
23 amounts collected pursuant to this Act for that school
24 district have been deposited to and retained in that special
25 account. This Section shall constitute an irrevocable and
26 continuing appropriation from the Local Option Property Tax
27 Reduction Refund Fund and the special accounts established
28 and maintained therein for the purpose of paying refunds upon
29 the order of the Director of Revenue in accordance with the
30 provisions of this Section.
31 (c) The Department of Revenue shall promulgate such
32 rules and regulations as may be necessary to implement the
33 provisions of this Act.
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1 Section 30. Certification, disbursement, and use of
2 funds.
3 (a) On or before June 15 of each calendar year, or the
4 first following business day if June 15 falls on a Saturday,
5 Sunday, or holiday, the Department of Revenue shall certify
6 to the State Comptroller the disbursement of stated sums of
7 money to each school district in which any tax authorized by
8 this Act has been imposed, levied, and collected during the
9 preceding calendar year. On each certification date, the
10 amount to be certified for disbursement from the separate
11 account maintained for a school district in the Local Option
12 Property Tax Reduction Fund shall be the amount deposited
13 into that special account from the tax collected under this
14 Act for that school district for the preceding calendar year,
15 reduced by an amount equal to 2% of the amount so deposited
16 into that special account to be retained by the Treasurer to
17 be applied toward the costs incurred by the Department of
18 Revenue in administering and enforcing this Act.
19 (b) At the time of each disbursement to a school
20 district, the Department of Revenue shall prepare and certify
21 to the Comptroller the amount retained by the State Treasurer
22 as provided in this Section and the interest earned from the
23 investment of moneys from time to time held in the Local
24 Option Property Tax Reduction Fund and any special accounts
25 established therein as provided in subsection (a) of Section
26 25 to be applied toward the costs incurred by the Department
27 in administering and enforcing this Act, the amount so
28 retained and the interest so earned to be paid into the
29 General Revenue Fund of the State Treasury.
30 (c) Within 10 days after receipt by the Comptroller from
31 the Department of Revenue of the certification of
32 disbursements to the school districts and General Revenue
33 Fund as provided in this Section, the Comptroller shall cause
34 the warrants to be drawn for the respective amounts in
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1 accordance with the directions contained in the
2 certification.
3 (d) If for any reason the General Assembly fails to make
4 an appropriation sufficient to pay each school district the
5 full amount required to be disbursed and paid to it by this
6 Section and any other provision of this Act, then this
7 Section shall constitute an irrevocable and continuing
8 appropriation of all amounts necessary for that purpose and
9 the irrevocable and continuing authority for and direction to
10 the Comptroller and Treasurer of the State to make the
11 necessary transfers out of and disbursements from the
12 revenues and funds of the State for that purpose.
13 (e) The school board of each school district that
14 receives a disbursement provided for in this Act shall apply
15 the moneys so disbursed to any funds from which the school
16 board of the school district is authorized to make
17 expenditures by law, provided that (i) the percentage of the
18 amount so disbursed to the school district in any calendar
19 year that is attributable to the required minimum abatement
20 in the extension in that calendar year of the real property
21 taxes levied by the district for educational purposes shall
22 be applied by the school board to its educational fund and
23 used for educational purposes of the district, and (ii) if
24 any percentage of the amount so disbursed to the school
25 district in any calendar year is attributable to any required
26 additional abatement in the extension in that calendar year
27 of any real property taxes levied by the district for
28 educational or any other lawful school purpose, that
29 percentage of the amount so disbursed shall be applied by the
30 district to the fund created for that purpose.
31 Section 35. Property tax abatement.
32 (a) The extension of real property taxes for a school
33 district within which the local income tax for schools
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1 authorized by this Act already has been imposed, levied, and
2 collected shall be abated by the county clerk in which the
3 school district is located in the manner provided by this
4 Section, provided that (i) if any such school district is
5 located in more than one county the amount of real property
6 taxes of the district to be so abated shall be apportioned by
7 the county clerks of those counties based upon the ratio of
8 the aggregate assessed value of the taxable property of the
9 district in each such county and (ii) prior to any abatement
10 under this Section the county clerk shall determine whether
11 the amount of each tax levied by the district for a lawful
12 school purpose and certified for extension is based on a rate
13 at which the district making the certification is authorized
14 by statute or referendum to levy that tax, shall disregard
15 any excess, and shall extend the levy of that tax in
16 accordance with the provisions of Section 18-45 of the
17 Property Tax Code, subject to abatement as provided in this
18 Section.
19 (b) Not later than September 1 of the first calendar
20 year in which the tax authorized by this Act is imposed,
21 levied, and collected within a school district, the
22 Department of Revenue shall certify to the county clerk of
23 each county in which any part of the school district is
24 located the estimated amount of the tax that would have been
25 collected under this Act during the immediately preceding
26 calendar year in that part of the district located in the
27 county had this Act been in effect and had that tax been
28 imposed, levied, and collected within that district during
29 that immediately preceding calendar year at the same annual
30 rate and for the same period of time as that tax is imposed,
31 levied, and collected in the district during the calendar
32 year in which the certification is made.
33 (c) During the calendar year immediately succeeding the
34 calendar year in which the certification under subsection (b)
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1 is required to be made, in extending the real property taxes
2 last levied by a school district for educational purposes,
3 the county clerk shall abate that extension of the district's
4 levy for educational purposes by an amount equal to 100% of
5 the estimated amount that was certified to the county clerk
6 by the Department of Revenue under the provisions of
7 subsection (b) during the calendar year immediately preceding
8 the calendar year in which the extension is made. In each
9 subsequent calendar year, in extending the real property
10 taxes levied by the school district for educational purposes
11 during the immediately preceding calendar year, the county
12 clerk shall abate each such extension of the district's levy
13 for educational purposes by an amount equal to 100% of the
14 amount disbursed to the school district under Section 30
15 during June of the calendar year immediately preceding the
16 calendar year in which the extension and abatement are made.
17 Section 40. Property tax rates. The provisions of this
18 Act for abatement in the extension of the amount of real
19 property taxes levied by school districts do not constitute
20 and shall not be construed to be a limitation on or a
21 reduction in the rate at which any school district now is or
22 hereafter may be authorized by statute or referendum to levy
23 taxes for any lawful school purpose. Notwithstanding any
24 abatement required by Section 35 to be made in any year in
25 any taxes levied by any school district for educational or
26 any other lawful school purpose, for purposes of computing
27 the operating tax rate of the school district under Section
28 18-8, that abatement shall be disregarded and the rate per
29 cent applicable to the extension of the district's tax for
30 its educational, operations and maintenance, and other school
31 funds, as a component of its operating tax rate under Section
32 18-8, shall be computed on the basis of the amount actually
33 certified by the district to be levied for those purposes,
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1 unreduced by any abatement required by Section 35.
2 Section 45. Penalties. Any person who is subject to
3 this Act and who (i) willfully fails to file a return, (ii)
4 willfully violates any rule or regulation of the Department
5 of Revenue for the administration or enforcement of this Act,
6 or (iii) willfully attempts in any other manner to evade or
7 defeat any tax imposed by this Act or the payment thereof is,
8 in addition to other penalties, guilty of a Class B
9 misdemeanor. A prosecution for any violation of this Act may
10 be commenced within 3 years of the commission of that act.
11 Section 70. The State Finance Act is amended by adding
12 Sections 5.449 and 5.550 as follows:
13 (30 ILCS 105/5.449 new)
14 Sec. 5.449. The Local Option Property Tax Reduction
15 Fund.
16 (30 ILCS 105/5.550 new)
17 Sec. 5.550. The Local Option Property Tax Reduction
18 Refund Fund.
19 Section 75. The Property Tax Code is amended by changing
20 Sections 18-45 and 18-185 as follows:
21 (35 ILCS 200/18-45)
22 Sec. 18-45. Computation of rates. Except as provided
23 below, each county clerk shall estimate and determine the
24 rate per cent upon the equalized assessed valuation for the
25 levy year of the property in the county's taxing districts
26 and special service areas, as established under Article VII
27 of the Illinois Constitution, so that the rate will produce,
28 within the proper divisions of that county, not less than the
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1 net amount that will be required by the county board or
2 certified to the county clerk according to law. Prior to
3 extension, the county clerk shall determine the maximum
4 amount of tax authorized to be levied by any statute. If the
5 amount of any tax certified to the county clerk for extension
6 exceeds the maximum, the clerk shall extend only the maximum
7 allowable levy.
8 The county clerk shall exclude from the total equalized
9 assessed valuation, whenever estimating and determining it
10 under this Section and Sections 18-50 through 18-105, the
11 equalized assessed valuation in the percentage which has been
12 agreed to by each taxing district, of any property or portion
13 thereof within an Enterprise Zone upon which an abatement of
14 taxes was made under Section 18-170. However, if a
15 municipality has adopted tax increment financing under
16 Division 74.4 of Article 11 of the Illinois Municipal Code,
17 the county clerk shall estimate and determine rates in
18 accordance with Sections 11-74.4-7 through 11-74.4-9 of that
19 Act. The equalized assessed value of all property for the
20 computation of the amount to be extended within a county with
21 3,000,000 or more inhabitants shall be the equalized assessed
22 value of such property for the year immediately preceding the
23 levy year as established by the assessment and equalization
24 process for the year immediately prior to the levy year.
25 The provisions of this Section and the authority and
26 responsibility of the county clerks hereunder are subject to
27 the provisions of Section 35 of the Local Option Property Tax
28 Reduction Act relative to abatement in the extension of taxes
29 levied by school districts, including special charter
30 districts, in which the tax authorized by that Act is
31 imposed, levied and collected.
32 (Source: P.A. 86-233; 86-953; 86-957; 86-1475; 87-17; 87-477;
33 87-895; 88-455.)
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1 (35 ILCS 200/18-185)
2 Sec. 18-185. Short title; definitions. This Section and
3 Sections 18-190 through 18-245 may be cited as the Property
4 Tax Extension Limitation Law. As used in Sections 18-190
5 through 18-245:
6 "Consumer Price Index" means the Consumer Price Index for
7 All Urban Consumers for all items published by the United
8 States Department of Labor.
9 "Extension limitation" means (a) the lesser of 5% or the
10 percentage increase in the Consumer Price Index during the
11 12-month calendar year preceding the levy year or (b) the
12 rate of increase approved by voters under Section 18-205.
13 "Affected county" means a county of 3,000,000 or more
14 inhabitants or a county contiguous to a county of 3,000,000
15 or more inhabitants.
16 "Taxing district" has the same meaning provided in
17 Section 1-150, except as otherwise provided in this Section.
18 For the 1991 through 1994 levy years only, "taxing district"
19 includes only each non-home rule taxing district having the
20 majority of its 1990 equalized assessed value within any
21 county or counties contiguous to a county with 3,000,000 or
22 more inhabitants. Beginning with the 1995 levy year, "taxing
23 district" includes only each non-home rule taxing district
24 subject to this Law before the 1995 levy year and each
25 non-home rule taxing district not subject to this Law before
26 the 1995 levy year having the majority of its 1994 equalized
27 assessed value in an affected county or counties. Beginning
28 with the levy year in which this Law becomes applicable to a
29 taxing district as provided in Section 18-213, "taxing
30 district" also includes those taxing districts made subject
31 to this Law as provided in Section 18-213.
32 "Aggregate extension" for taxing districts to which this
33 Law applied before the 1995 levy year means the annual
34 corporate extension for the taxing district and those special
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1 purpose extensions that are made annually for the taxing
2 district, excluding special purpose extensions: (a) made for
3 the taxing district to pay interest or principal on general
4 obligation bonds that were approved by referendum; (b) made
5 for any taxing district to pay interest or principal on
6 general obligation bonds issued before October 1, 1991; (c)
7 made for any taxing district to pay interest or principal on
8 bonds issued to refund or continue to refund those bonds
9 issued before October 1, 1991; (d) made for any taxing
10 district to pay interest or principal on bonds issued to
11 refund or continue to refund bonds issued after October 1,
12 1991 that were approved by referendum; (e) made for any
13 taxing district to pay interest or principal on revenue bonds
14 issued before October 1, 1991 for payment of which a property
15 tax levy or the full faith and credit of the unit of local
16 government is pledged; however, a tax for the payment of
17 interest or principal on those bonds shall be made only after
18 the governing body of the unit of local government finds that
19 all other sources for payment are insufficient to make those
20 payments; (f) made for payments under a building commission
21 lease when the lease payments are for the retirement of bonds
22 issued by the commission before October 1, 1991, to pay for
23 the building project; (g) made for payments due under
24 installment contracts entered into before October 1, 1991;
25 (h) made for payments of principal and interest on bonds
26 issued under the Metropolitan Water Reclamation District Act
27 to finance construction projects initiated before October 1,
28 1991; (i) made for payments of principal and interest on
29 limited bonds, as defined in Section 3 of the Local
30 Government Debt Reform Act, in an amount not to exceed the
31 debt service extension base less the amount in items (b),
32 (c), (e), and (h) of this definition for non-referendum
33 obligations, except obligations initially issued pursuant to
34 referendum; and (j) made for payments of principal and
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1 interest on bonds issued under Section 15 of the Local
2 Government Debt Reform Act.
3 "Aggregate extension" for the taxing districts to which
4 this Law did not apply before the 1995 levy year (except
5 taxing districts subject to this Law in accordance with
6 Section 18-213) means the annual corporate extension for the
7 taxing district and those special purpose extensions that are
8 made annually for the taxing district, excluding special
9 purpose extensions: (a) made for the taxing district to pay
10 interest or principal on general obligation bonds that were
11 approved by referendum; (b) made for any taxing district to
12 pay interest or principal on general obligation bonds issued
13 before March 1, 1995; (c) made for any taxing district to pay
14 interest or principal on bonds issued to refund or continue
15 to refund those bonds issued before March 1, 1995; (d) made
16 for any taxing district to pay interest or principal on bonds
17 issued to refund or continue to refund bonds issued after
18 March 1, 1995 that were approved by referendum; (e) made for
19 any taxing district to pay interest or principal on revenue
20 bonds issued before March 1, 1995 for payment of which a
21 property tax levy or the full faith and credit of the unit of
22 local government is pledged; however, a tax for the payment
23 of interest or principal on those bonds shall be made only
24 after the governing body of the unit of local government
25 finds that all other sources for payment are insufficient to
26 make those payments; (f) made for payments under a building
27 commission lease when the lease payments are for the
28 retirement of bonds issued by the commission before March 1,
29 1995 to pay for the building project; (g) made for payments
30 due under installment contracts entered into before March 1,
31 1995; (h) made for payments of principal and interest on
32 bonds issued under the Metropolitan Water Reclamation
33 District Act to finance construction projects initiated
34 before October 1, 1991; (i) made for payments of principal
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1 and interest on limited bonds, as defined in Section 3 of the
2 Local Government Debt Reform Act, in an amount not to exceed
3 the debt service extension base less the amount in items (b),
4 (c), (e), and (h) of this definition for non-referendum
5 obligations, except obligations initially issued pursuant to
6 referendum; (j) made for payments of principal and interest
7 on bonds issued under Section 15 of the Local Government Debt
8 Reform Act; (k) made for payments of principal and interest
9 on bonds authorized by Public Act 88-503 and issued under
10 Section 20a of the Chicago Park District Act for aquarium or
11 museum projects; and (l) made for payments of principal and
12 interest on bonds authorized by Public Act 87-1191 and issued
13 under Section 42 of the Cook County Forest Preserve District
14 Act for zoological park projects.
15 "Aggregate extension" for all taxing districts to which
16 this Law applies in accordance with Section 18-213, except
17 for those taxing districts subject to paragraph (2) of
18 subsection (e) of Section 18-213, means the annual corporate
19 extension for the taxing district and those special purpose
20 extensions that are made annually for the taxing district,
21 excluding special purpose extensions: (a) made for the taxing
22 district to pay interest or principal on general obligation
23 bonds that were approved by referendum; (b) made for any
24 taxing district to pay interest or principal on general
25 obligation bonds issued before the date on which the
26 referendum making this Law applicable to the taxing district
27 is held; (c) made for any taxing district to pay interest or
28 principal on bonds issued to refund or continue to refund
29 those bonds issued before the date on which the referendum
30 making this Law applicable to the taxing district is held;
31 (d) made for any taxing district to pay interest or principal
32 on bonds issued to refund or continue to refund bonds issued
33 after the date on which the referendum making this Law
34 applicable to the taxing district is held if the bonds were
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1 approved by referendum after the date on which the referendum
2 making this Law applicable to the taxing district is held;
3 (e) made for any taxing district to pay interest or principal
4 on revenue bonds issued before the date on which the
5 referendum making this Law applicable to the taxing district
6 is held for payment of which a property tax levy or the full
7 faith and credit of the unit of local government is pledged;
8 however, a tax for the payment of interest or principal on
9 those bonds shall be made only after the governing body of
10 the unit of local government finds that all other sources for
11 payment are insufficient to make those payments; (f) made for
12 payments under a building commission lease when the lease
13 payments are for the retirement of bonds issued by the
14 commission before the date on which the referendum making
15 this Law applicable to the taxing district is held to pay for
16 the building project; (g) made for payments due under
17 installment contracts entered into before the date on which
18 the referendum making this Law applicable to the taxing
19 district is held; (h) made for payments of principal and
20 interest on limited bonds, as defined in Section 3 of the
21 Local Government Debt Reform Act, in an amount not to exceed
22 the debt service extension base less the amount in items (b),
23 (c), and (e) of this definition for non-referendum
24 obligations, except obligations initially issued pursuant to
25 referendum; (i) made for payments of principal and interest
26 on bonds issued under Section 15 of the Local Government Debt
27 Reform Act; and (j) made for a qualified airport authority to
28 pay interest or principal on general obligation bonds issued
29 for the purpose of paying obligations due under, or financing
30 airport facilities required to be acquired, constructed,
31 installed or equipped pursuant to, contracts entered into
32 before March 1, 1996 (but not including any amendments to
33 such a contract taking effect on or after that date).
34 "Aggregate extension" for all taxing districts to which
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1 this Law applies in accordance with paragraph (2) of
2 subsection (e) of Section 18-213 means the annual corporate
3 extension for the taxing district and those special purpose
4 extensions that are made annually for the taxing district,
5 excluding special purpose extensions: (a) made for the taxing
6 district to pay interest or principal on general obligation
7 bonds that were approved by referendum; (b) made for any
8 taxing district to pay interest or principal on general
9 obligation bonds issued before the effective date of this
10 amendatory Act of 1997; (c) made for any taxing district to
11 pay interest or principal on bonds issued to refund or
12 continue to refund those bonds issued before the effective
13 date of this amendatory Act of 1997; (d) made for any taxing
14 district to pay interest or principal on bonds issued to
15 refund or continue to refund bonds issued after the effective
16 date of this amendatory Act of 1997 if the bonds were
17 approved by referendum after the effective date of this
18 amendatory Act of 1997; (e) made for any taxing district to
19 pay interest or principal on revenue bonds issued before the
20 effective date of this amendatory Act of 1997 for payment of
21 which a property tax levy or the full faith and credit of the
22 unit of local government is pledged; however, a tax for the
23 payment of interest or principal on those bonds shall be made
24 only after the governing body of the unit of local government
25 finds that all other sources for payment are insufficient to
26 make those payments; (f) made for payments under a building
27 commission lease when the lease payments are for the
28 retirement of bonds issued by the commission before the
29 effective date of this amendatory Act of 1997 to pay for the
30 building project; (g) made for payments due under installment
31 contracts entered into before the effective date of this
32 amendatory Act of 1997; (h) made for payments of principal
33 and interest on limited bonds, as defined in Section 3 of the
34 Local Government Debt Reform Act, in an amount not to exceed
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1 the debt service extension base less the amount in items (b),
2 (c), and (e) of this definition for non-referendum
3 obligations, except obligations initially issued pursuant to
4 referendum; (i) made for payments of principal and interest
5 on bonds issued under Section 15 of the Local Government Debt
6 Reform Act; and (j) made for a qualified airport authority to
7 pay interest or principal on general obligation bonds issued
8 for the purpose of paying obligations due under, or financing
9 airport facilities required to be acquired, constructed,
10 installed or equipped pursuant to, contracts entered into
11 before March 1, 1996 (but not including any amendments to
12 such a contract taking effect on or after that date).
13 "Debt service extension base" means an amount equal to
14 that portion of the extension for a taxing district for the
15 1994 levy year, or for those taxing districts subject to this
16 Law in accordance with Section 18-213, except for those
17 subject to paragraph (2) of subsection (e) of Section 18-213,
18 for the levy year in which the referendum making this Law
19 applicable to the taxing district is held, or for those
20 taxing districts subject to this Law in accordance with
21 paragraph (2) of subsection (e) of Section 18-213 for the
22 1996 levy year, constituting an extension for payment of
23 principal and interest on bonds issued by the taxing district
24 without referendum, but not including (i) bonds authorized by
25 Public Act 88-503 and issued under Section 20a of the Chicago
26 Park District Act for aquarium and museum projects; (ii)
27 bonds issued under Section 15 of the Local Government Debt
28 Reform Act; or (iii) refunding obligations issued to refund
29 or to continue to refund obligations initially issued
30 pursuant to referendum. The debt service extension base may
31 be established or increased as provided under Section 18-212.
32 "Special purpose extensions" include, but are not limited
33 to, extensions for levies made on an annual basis for
34 unemployment and workers' compensation, self-insurance,
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1 contributions to pension plans, and extensions made pursuant
2 to Section 6-601 of the Illinois Highway Code for a road
3 district's permanent road fund whether levied annually or
4 not. The extension for a special service area is not
5 included in the aggregate extension.
6 "Aggregate extension base" means the taxing district's
7 last preceding aggregate extension as adjusted under Sections
8 18-215 through 18-230. The "aggregate extension base" shall
9 not be reduced by the amount of any abatement pursuant to the
10 Local Option Property Tax Reduction Act.
11 "Levy year" has the same meaning as "year" under Section
12 1-155.
13 "New property" means (i) the assessed value, after final
14 board of review or board of appeals action, of new
15 improvements or additions to existing improvements on any
16 parcel of real property that increase the assessed value of
17 that real property during the levy year multiplied by the
18 equalization factor issued by the Department under Section
19 17-30 and (ii) the assessed value, after final board of
20 review or board of appeals action, of real property not
21 exempt from real estate taxation, which real property was
22 exempt from real estate taxation for any portion of the
23 immediately preceding levy year, multiplied by the
24 equalization factor issued by the Department under Section
25 17-30.
26 "Qualified airport authority" means an airport authority
27 organized under the Airport Authorities Act and located in a
28 county bordering on the State of Wisconsin and having a
29 population in excess of 200,000 and not greater than 500,000.
30 "Recovered tax increment value" means the amount of the
31 current year's equalized assessed value, in the first year
32 after a municipality terminates the designation of an area as
33 a redevelopment project area previously established under the
34 Tax Increment Allocation Development Act in the Illinois
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1 Municipal Code, previously established under the Industrial
2 Jobs Recovery Law in the Illinois Municipal Code, or
3 previously established under the Economic Development Area
4 Tax Increment Allocation Act, of each taxable lot, block,
5 tract, or parcel of real property in the redevelopment
6 project area over and above the initial equalized assessed
7 value of each property in the redevelopment project area.
8 Except as otherwise provided in this Section, "limiting
9 rate" means a fraction the numerator of which is the last
10 preceding aggregate extension base times an amount equal to
11 one plus the extension limitation defined in this Section and
12 the denominator of which is the current year's equalized
13 assessed value of all real property in the territory under
14 the jurisdiction of the taxing district during the prior levy
15 year. For those taxing districts that reduced their
16 aggregate extension for the last preceding levy year, the
17 highest aggregate extension in any of the last 3 preceding
18 levy years shall be used for the purpose of computing the
19 limiting rate. The denominator shall not include new
20 property. The denominator shall not include the recovered
21 tax increment value.
22 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
23 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
24 eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
25 Section 80. The School Code is amended by changing
26 Section 18-8 as follows:
27 (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
28 Sec. 18-8. Basis for apportionment to districts,
29 laboratory schools and alternative schools.
30 A. The amounts to be apportioned shall be determined for
31 each educational service region by school districts, as
32 follows:
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1 1. General Provisions.
2 (a) In the computation of the amounts to be apportioned,
3 the average daily attendance of all pupils in grades 9
4 through 12 shall be multiplied by 1.25. The average daily
5 attendance of all pupils in grades 7 and 8 shall be
6 multiplied by 1.05.
7 (b) The actual number of pupils in average daily
8 attendance shall be computed in a one-teacher school district
9 by dividing the total aggregate days of pupil attendance by
10 the actual number of days school is in session but not more
11 than 30 such pupils shall be accredited for such type of
12 district; and in districts of 2 or more teachers, or in
13 districts where records of attendance are kept by session
14 teachers, by taking the sum of the respective averages of the
15 units composing the group.
16 (c) Pupils in average daily attendance shall be computed
17 upon the average of the best 3 months of pupils attendance of
18 the current school year except as district claims may be
19 later amended as provided hereinafter in this Section.
20 However, for any school district maintaining grades
21 kindergarten through 12, the "average daily attendance" shall
22 be computed on the average of the best 3 months of pupils
23 attendance of the current year in grades kindergarten through
24 8, added together with the average of the best 3 months of
25 pupils attendance of the current year in grades 9 through 12,
26 except as district claims may be later amended as provided in
27 this Section. Days of attendance shall be kept by regular
28 calendar months, except any days of attendance in August
29 shall be added to the month of September and any days of
30 attendance in June shall be added to the month of May.
31 Except as otherwise provided in this Section, days of
32 attendance by pupils shall be counted only for sessions of
33 not less than 5 clock hours of school work per day under
34 direct supervision of: (i) teachers, or (ii) non-teaching
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1 personnel or volunteer personnel when engaging in
2 non-teaching duties and supervising in those instances
3 specified in subsection (a) of Section 10-22.34 and paragraph
4 10 of Section 34-18, with pupils of legal school age and in
5 kindergarten and grades 1 through 12.
6 (d) Pupils regularly enrolled in a public school for
7 only a part of the school day may be counted on the basis of
8 1/6 day for every class hour of instruction of 40 minutes or
9 more attended pursuant to such enrollment.
10 (e) Days of attendance may be less than 5 clock hours on
11 the opening and closing of the school term, and upon the
12 first day of pupil attendance, if preceded by a day or days
13 utilized as an institute or teachers' workshop.
14 (f) A session of 4 or more clock hours may be counted as
15 a day of attendance upon certification by the regional
16 superintendent, and approved by the State Superintendent of
17 Education to the extent that the district has been forced to
18 use daily multiple sessions.
19 (g) A session of 3 or more clock hours may be counted as
20 a day of attendance (1) when the remainder of the school day
21 or at least 2 hours in the evening of that day is utilized
22 for an in-service training program for teachers, up to a
23 maximum of 5 days per school year of which a maximum of 4
24 days of such 5 days may be used for parent-teacher
25 conferences, provided a district conducts an in-service
26 training program for teachers which has been approved by the
27 State Superintendent of Education; or, in lieu of 4 such
28 days, 2 full days may be used, in which event each such day
29 may be counted as a day of attendance; and (2) when days in
30 addition to those provided in item (1) are scheduled by a
31 school pursuant to its school improvement plan adopted under
32 Article 34 or its revised or amended school improvement plan
33 adopted under Article 2, provided that (i) such sessions of 3
34 or more clock hours are scheduled to occur at regular
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1 intervals, (ii) the remainder of the school days in which
2 such sessions occur are utilized for in-service training
3 programs or other staff development activities for teachers,
4 and (iii) a sufficient number of minutes of school work under
5 the direct supervision of teachers are added to the school
6 days between such regularly scheduled sessions to accumulate
7 not less than the number of minutes by which such sessions of
8 3 or more clock hours fall short of 5 clock hours. Any full
9 days used for the purposes of this paragraph shall not be
10 considered for computing average daily attendance. Days
11 scheduled for in-service training programs, staff development
12 activities, or parent-teacher conferences may be scheduled
13 separately for different grade levels and different
14 attendance centers of the district.
15 (h) A session of not less than one clock hour teaching
16 of hospitalized or homebound pupils on-site or by telephone
17 to the classroom may be counted as 1/2 day of attendance,
18 however these pupils must receive 4 or more clock hours of
19 instruction to be counted for a full day of attendance.
20 (i) A session of at least 4 clock hours may be counted
21 as a day of attendance for first grade pupils, and pupils in
22 full day kindergartens, and a session of 2 or more hours may
23 be counted as 1/2 day of attendance by pupils in
24 kindergartens which provide only 1/2 day of attendance.
25 (j) For children with disabilities who are below the age
26 of 6 years and who cannot attend two or more clock hours
27 because of their disability or immaturity, a session of not
28 less than one clock hour may be counted as 1/2 day of
29 attendance; however for such children whose educational needs
30 so require a session of 4 or more clock hours may be counted
31 as a full day of attendance.
32 (k) A recognized kindergarten which provides for only
33 1/2 day of attendance by each pupil shall not have more than
34 1/2 day of attendance counted in any 1 day. However,
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1 kindergartens may count 2 1/2 days of attendance in any 5
2 consecutive school days. Where a pupil attends such a
3 kindergarten for 2 half days on any one school day, such
4 pupil shall have the following day as a day absent from
5 school, unless the school district obtains permission in
6 writing from the State Superintendent of Education.
7 Attendance at kindergartens which provide for a full day of
8 attendance by each pupil shall be counted the same as
9 attendance by first grade pupils. Only the first year of
10 attendance in one kindergarten shall be counted except in
11 case of children who entered the kindergarten in their fifth
12 year whose educational development requires a second year of
13 kindergarten as determined under the rules and regulations of
14 the State Board of Education.
15 (l) Days of attendance by tuition pupils shall be
16 accredited only to the districts that pay the tuition to a
17 recognized school.
18 (m) The greater of the immediately preceding year's
19 weighted average daily attendance or the average of the
20 weighted average daily attendance of the immediately
21 preceding year and the previous 2 years shall be used.
22 For any school year beginning July 1, 1986 or thereafter,
23 if the weighted average daily attendance in either grades
24 kindergarten through 8 or grades 9 through 12 of a district
25 as computed for the first calendar month of the current
26 school year exceeds by more than 5%, but not less than 25
27 pupils, the district's weighted average daily attendance for
28 the first calendar month of the immediately preceding year
29 in, respectively, grades kindergarten through 8 or grades 9
30 through 12, a supplementary payment shall be made to the
31 district equal to the difference in the amount of aid the
32 district would be paid under this Section using the weighted
33 average daily attendance in the district as computed for the
34 first calendar month of the current school year and the
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1 amount of aid the district would be paid using the weighted
2 average daily attendance in the district for the first
3 calendar month of the immediately preceding year. Such
4 supplementary State aid payment shall be paid to the district
5 as provided in Section 18-8.4 and shall be treated as
6 separate from all other payments made pursuant to this
7 Section 18-8.
8 (n) The number of low income eligible pupils in a
9 district shall result in an increase in the weighted average
10 daily attendance calculated as follows: The number of low
11 income pupils shall increase the weighted ADA by .53 for each
12 student adjusted by dividing the percent of low income
13 eligible pupils in the district by the ratio of eligible low
14 income pupils in the State to the best 3 months' weighted
15 average daily attendance in the State. In no case may the
16 adjustment under this paragraph result in a greater weighting
17 than .625 for each eligible low income student. The number
18 of low income eligible pupils in a district shall be the
19 low-income eligible count from the most recently available
20 federal census and the weighted average daily attendance
21 shall be calculated in accordance with the other provisions
22 of this paragraph.
23 (o) Any school district which fails for any given school
24 year to maintain school as required by law, or to maintain a
25 recognized school is not eligible to file for such school
26 year any claim upon the common school fund. In case of
27 nonrecognition of one or more attendance centers in a school
28 district otherwise operating recognized schools, the claim of
29 the district shall be reduced in the proportion which the
30 average daily attendance in the attendance center or centers
31 bear to the average daily attendance in the school district.
32 A "recognized school" means any public school which meets the
33 standards as established for recognition by the State Board
34 of 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 claim
3 which was filed while it was recognized.
4 (p) School district claims filed under this Section are
5 subject to Sections 18-9, 18-10 and 18-12, except as herein
6 otherwise provided.
7 (q) The State Board of Education shall secure from the
8 Department of Revenue the value as equalized or assessed by
9 the Department of Revenue of all taxable property of every
10 school district together with the applicable tax rate used in
11 extending taxes for the funds of the district as of September
12 30 of the previous year. The Department of Revenue shall add
13 to the equalized assessed value of all taxable property of
14 each school district situated entirely or partially within a
15 county with 2,000,000 or more inhabitants an amount equal to
16 the total amount by which the homestead exemptions allowed
17 under Sections 15-170 and 15-175 of the Property Tax Code for
18 real property situated in that school district exceeds the
19 total amount that would have been allowed in that school
20 district as homestead exemptions under those Sections if the
21 maximum reduction under Section 15-170 of the Property Tax
22 Code was $2,000 and the maximum reduction under Section
23 15-175 of the Property Tax Code was $3,500. The county clerk
24 of any county with 2,000,000 or more inhabitants shall
25 annually calculate and certify to the Department for each
26 school district all homestead exemption amounts required by
27 this amendatory Act of 1992. In a new district which has not
28 had any tax rates yet determined for extension of taxes, a
29 leveled uniform rate shall be computed from the latest amount
30 of the fund taxes extended on the several areas within such
31 new district.
32 (r) If a school district operates a full year school
33 under Section 10-19.1, the general state aid to the school
34 district shall be determined by the State Board of Education
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1 in accordance with this Section as near as may be applicable.
2 2. New or recomputed claim. The general State aid
3 entitlement for a newly created school district or a district
4 which has annexed an entire school district shall be computed
5 using attendance, compensatory pupil counts, equalized
6 assessed valuation, and tax rate data which would have been
7 used had the district been in existence for 3 years. General
8 State aid entitlements shall not be recomputed except as
9 permitted herein.
10 3. Impaction. Impaction payments shall be made as
11 provided for in Section 18-4.2.
12 4. Summer school. Summer school payments shall be made
13 as provided in Section 18-4.3.
14 5. Computation of State aid. The State grant shall be
15 determined as follows:
16 (a) The State shall guarantee the amount of money that a
17 district's operating tax rate as limited in other Sections of
18 this Act would produce if every district maintaining grades
19 kindergarten through 12 had an equalized assessed valuation
20 equal to $74,791 per weighted ADA pupil; every district
21 maintaining grades kindergarten through 8 had an equalized
22 assessed valuation of $108,644 per weighted ADA pupil; and
23 every district maintaining grades 9 through 12 had an
24 equalized assessed valuation of $187,657 per weighted ADA
25 pupil. The State Board of Education shall adjust the
26 equalized assessed valuation amounts stated in this
27 paragraph, if necessary, to conform to the amount of the
28 appropriation approved for any fiscal year.
29 (b) The operating tax rate to be used shall consist of
30 all district taxes extended for all purposes except community
31 college educational purposes for the payment of tuition under
32 Section 6-1 of the Public Community College Act, Bond and
33 Interest, Summer School, Rent, Capital Improvement and
34 Vocational Education Building. In calculating the operating
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1 tax rate of any school district for purposes of this Section,
2 any abatement required by Section 35 of the Local Option
3 Property Tax Reduction Act in the extension of any tax levied
4 by the school district shall be disregarded and the rate per
5 cent applicable to the extension of the district's tax for
6 its educational, operations and maintenance, and other school
7 funds, as a component of its operating tax rate, shall be
8 computed on the basis of the amount actually certified by the
9 district to be levied for those purposes, unreduced by any
10 abatement required under Section 35 of the Local Option
11 Property Tax Reduction Act. Any district may elect to exclude
12 Transportation from the calculation of its operating tax
13 rate. Districts may include taxes extended for the payment of
14 principal and interest on bonds issued under the provisions
15 of Sections 17-2.11a and 20-2 at a rate of .05% per year for
16 each purpose or the actual rate extended, whichever is less.
17 (c) For calculation of aid under this Act a district
18 shall use the combined authorized tax rates of all funds not
19 exempt in (b) above, not to exceed 2.76% of the value of all
20 its taxable property as equalized or assessed by the
21 Department of Revenue for districts maintaining grades
22 kindergarten through 12; 1.90% of the value of all its
23 taxable property as equalized or assessed by the Department
24 of Revenue for districts maintaining grades kindergarten
25 through 8 only; 1.10% of the value of all its taxable
26 property as equalized or assessed by the Department of
27 Revenue for districts maintaining grades 9 through 12 only.
28 A district may, however, as provided in Article 17, increase
29 its operating tax rate above the maximum rate provided in
30 this subsection without affecting the amount of State aid to
31 which it is entitled under this Act.
32 (d) (1) For districts maintaining grades kindergarten
33 through 12 with an operating tax rate as described in
34 subsections 5(b) and (c) of less than 2.18%, and districts
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1 maintaining grades kindergarten through 8 with an operating
2 tax rate of less than 1.28%, State aid shall be computed by
3 multiplying the difference between the guaranteed equalized
4 assessed valuation per weighted ADA pupil in subsection 5(a)
5 and the equalized assessed valuation per weighted ADA pupil
6 in the district by the operating tax rate, multiplied by the
7 weighted average daily attendance of the district; provided,
8 however, that for the 1989-1990 school year only, a school
9 district maintaining grades kindergarten through 8 whose
10 operating tax rate with reference to which its general State
11 aid for the 1989-1990 school year is determined is less than
12 1.28% and more than 1.090%, and which had an operating tax
13 rate of 1.28% or more for the previous year, shall have its
14 general State aid computed according to the provisions of
15 subsection 5(d)(2).
16 (2) For districts maintaining grades kindergarten
17 through 12 with an operating tax rate as described in
18 subsection 5(b) and (c) of 2.18% and above, the State aid
19 shall be computed as provided in subsection (d) (1) but as
20 though the district had an operating tax rate of 2.76%; in
21 K-8 districts with an operating tax rate of 1.28% and above,
22 the State aid shall be computed as provided in subsection (d)
23 (1) but as though the district had an operating tax rate of
24 1.90%; and in 9-12 districts, the State aid shall be computed
25 by multiplying the difference between the guaranteed
26 equalized assessed valuation per weighted average daily
27 attendance pupil in subsection 5(a) and the equalized
28 assessed valuation per weighted average daily attendance
29 pupil in the district by the operating tax rate, not to
30 exceed 1.10%, multiplied by the weighted average daily
31 attendance of the district. State aid computed under the
32 provisions of this subsection (d) (2) shall be treated as
33 separate from all other payments made pursuant to this
34 Section. The State Comptroller and State Treasurer shall
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1 transfer from the General Revenue Fund to the Common School
2 Fund the amounts necessary to permit these claims to be paid
3 in equal installments along with other State aid payments
4 remaining to be made for the 1983-1984 school year under this
5 Section.
6 (3) For any school district whose 1995 equalized
7 assessed valuation is at least 6% less than its 1994
8 equalized assessed valuation as the result of a reduction in
9 the equalized assessed valuation of the taxable property
10 within such district of any one taxpayer whose taxable
11 property within the district has a 1994 equalized assessed
12 valuation constituting at least 20% of the 1994 equalized
13 assessed valuation of all taxable property within the
14 district, the 1996-97 State aid of such district shall be
15 computed using its 1995 equalized assessed valuation.
16 (4) For any school district whose 1988 equalized
17 assessed valuation is 55% or less of its 1981 equalized
18 assessed valuation, the 1990-91 State aid of such district
19 shall be computed by multiplying the 1988 equalized assessed
20 valuation by a factor of .8. Any such school district which
21 is reorganized effective for the 1991-92 school year shall
22 use the formula provided in this subparagraph for purposes of
23 the calculation made pursuant to subsection (m) of this
24 Section.
25 (e) The amount of State aid shall be computed under the
26 provisions of subsections 5(a) through 5(d) provided the
27 equalized assessed valuation per weighted ADA pupil is less
28 than .87 of the amounts in subsection 5(a). If the equalized
29 assessed valuation per weighted ADA pupil is equal to or
30 greater than .87 of the amounts in subsection 5(a), the State
31 aid shall be computed under the provisions of subsection
32 5(f).
33 (f) If the equalized assessed valuation per weighted ADA
34 pupil is equal to or greater than .87 of the amounts in
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1 subsection 5(a), the State aid per weighted ADA pupil shall
2 be computed by multiplying the product of .13 times the
3 maximum per pupil amount computed under the provisions of
4 subsections 5(a) through 5(d) by an amount equal to the
5 quotient of .87 times the equalized assessed valuation per
6 weighted ADA pupil in subsection 5(a) for that type of
7 district divided by the district equalized valuation per
8 weighted ADA pupil except in no case shall the district
9 receive State aid per weighted ADA pupil of less than .07
10 times the maximum per pupil amount computed under the
11 provisions of subsections 5(a) through 5(d).
12 (g) In addition to the above grants, summer school
13 grants shall be made based upon the calculation as provided
14 in subsection 4 of this Section.
15 (h) The board of any district receiving any of the
16 grants provided for in this Section may apply those funds to
17 any fund so received for which that board is authorized to
18 make expenditures by law.
19 (i) (1) (a) In school districts with an average daily
20 attendance of 50,000 or more, the amount which is provided
21 under subsection 1(n) of this Section by the application of a
22 base Chapter 1 weighting factor of .375 shall be distributed
23 to the attendance centers within the district in proportion
24 to the number of pupils enrolled at each attendance center
25 who are eligible to receive free or reduced-price lunches or
26 breakfasts under the federal Child Nutrition Act of 1966 and
27 under the National School Lunch Act during the immediately
28 preceding school year. The amount of State aid provided
29 under subsection 1(n) of this Section by the application of
30 the Chapter 1 weighting factor in excess of .375 shall be
31 distributed to the attendance centers within the district in
32 proportion to the total enrollment at each attendance center.
33 Beginning with school year 1989-90, and each school year
34 thereafter, all funds provided under subsection 1 (n) of this
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1 Section by the application of the Chapter 1 weighting factor
2 which are in excess of the level of non-targeted Chapter 1
3 funds in school year 1988-89 shall be distributed to
4 attendance centers, and only to attendance centers, within
5 the district in proportion to the number of pupils enrolled
6 at each attendance center who are eligible to receive free or
7 reduced price lunches or breakfasts under the Federal Child
8 Nutrition Act and under the National School Lunch Act during
9 the immediately preceding school year. Beginning in school
10 year 1989-90, 25% of the previously non-targeted Chapter 1
11 funds as established for school year 1988-89 shall also be
12 distributed to the attendance centers, and only to attendance
13 centers, in the district in proportion to the number of
14 pupils enrolled at each attendance center who are eligible to
15 receive free or reduced price lunches or breakfasts under the
16 Federal Child Nutrition Act and under the National School
17 Lunch Act during the immediately preceding school year; in
18 school year 1990-91, 50% of the previously non-targeted
19 Chapter 1 funds as established for school year 1988-89 shall
20 be distributed to attendance centers, and only to attendance
21 centers, in the district in proportion to the number of
22 pupils enrolled at each attendance center who are eligible to
23 receive such free or reduced price lunches or breakfasts
24 during the immediately preceding school year; in school year
25 1991-92, 75% of the previously non-targeted Chapter 1 funds
26 as established for school year 1988-89 shall be distributed
27 to attendance centers, and only to attendance centers, in the
28 district in proportion to the number of pupils enrolled at
29 each attendance center who are eligible to receive such free
30 or reduced price lunches or breakfasts during the immediately
31 preceding school year; in school year 1992-93 and thereafter,
32 all funds provided under subsection 1 (n) of this Section by
33 the application of the Chapter 1 weighting factor shall be
34 distributed to attendance centers, and only to attendance
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1 centers, in the district in proportion to the number of
2 pupils enrolled at each attendance center who are eligible to
3 receive free or reduced price lunches or breakfasts under the
4 Federal Child Nutrition Act and under the National School
5 Lunch Act during the immediately preceding school year;
6 provided, however, that the distribution formula in effect
7 beginning with school year 1989-90 shall not be applicable to
8 such portion of State aid provided under subsection 1 (n) of
9 this Section by the application of the Chapter 1 weighting
10 formula as is set aside and appropriated by the school
11 district for the purpose of providing desegregation programs
12 and related transportation to students (which portion shall
13 not exceed 5% of the total amount of State aid which is
14 provided under subsection 1 (n) of this Section by
15 application of the Chapter 1 weighting formula), and the
16 relevant percentages shall be applied to the remaining
17 portion of such State aid. The distribution of these
18 portions of general State aid among attendance centers
19 according to these requirements shall not be compensated for
20 or contravened by adjustments of the total of other funds
21 appropriated to any attendance centers. (b) The Board of
22 Education shall utilize funding from one or several sources
23 in order to fully implement this provision annually prior to
24 the opening of school. The Board of Education shall apply
25 savings from reduced administrative costs required under
26 Section 34-43.1 and growth in non-Chapter 1 State and local
27 funds to assure that all attendance centers receive funding
28 to replace losses due to redistribution of Chapter 1 funding.
29 The distribution formula and funding to replace losses due to
30 the distribution formula shall occur, in full, using any and
31 all sources available, including, if necessary, revenue from
32 administrative reductions beyond those required in Section
33 34-43.1, in order to provide the necessary funds. (c) Each
34 attendance center shall be provided by the school district a
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1 distribution of noncategorical funds and other categorical
2 funds to which an attendance center is entitled under law in
3 order that the State aid provided by application of the
4 Chapter 1 weighting factor and required to be distributed
5 among attendance centers according to the requirements of
6 this paragraph supplements rather than supplants the
7 noncategorical funds and other categorical funds provided by
8 the school district to the attendance centers.
9 Notwithstanding the foregoing provisions of this subsection
10 5(i)(1) or any other law to the contrary, beginning with the
11 1995-1996 school year and for each school year thereafter,
12 the board of a school district to which the provisions of
13 this subsection apply shall be required to allocate or
14 provide to attendance centers of the district in any such
15 school year, from the State aid provided for the district
16 under this Section by application of the Chapter 1 weighting
17 factor, an aggregate amount of not less than $261,000,000 of
18 State Chapter 1 funds. Any State Chapter 1 funds that by
19 reason of the provisions of this paragraph are not required
20 to be allocated and provided to attendance centers may be
21 used and appropriated by the board of the district for any
22 lawful school purpose. Chapter 1 funds received by an
23 attendance center (except those funds set aside for
24 desegregation programs and related transportation to
25 students) shall be used on the schedule cited in this Section
26 at the attendance center at the discretion of the principal
27 and local school council for programs to improve educational
28 opportunities at qualifying schools through the following
29 programs and services: early childhood education, reduced
30 class size or improved adult to student classroom ratio,
31 enrichment programs, remedial assistance, attendance
32 improvement and other educationally beneficial expenditures
33 which supplement the regular and basic programs as determined
34 by the State Board of Education. Chapter 1 funds shall not
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1 be expended for any political or lobbying purposes as defined
2 by board rule. (d) Each district subject to the provisions of
3 this paragraph shall submit an acceptable plan to meet the
4 educational needs of disadvantaged children, in compliance
5 with the requirements of this paragraph, to the State Board
6 of Education prior to July 15 of each year. This plan shall
7 be consistent with the decisions of local school councils
8 concerning the school expenditure plans developed in
9 accordance with part 4 of Section 34-2.3. The State Board
10 shall approve or reject the plan within 60 days after its
11 submission. If the plan is rejected the district shall give
12 written notice of intent to modify the plan within 15 days of
13 the notification of rejection and then submit a modified plan
14 within 30 days after the date of the written notice of intent
15 to modify. Districts may amend approved plans pursuant to
16 rules promulgated by the State Board of Education.
17 Upon notification by the State Board of Education that
18 the district has not submitted a plan prior to July 15 or a
19 modified plan within the time period specified herein, the
20 State aid funds affected by said plan or modified plan shall
21 be withheld by the State Board of Education until a plan or
22 modified plan is submitted.
23 If the district fails to distribute State aid to
24 attendance centers in accordance with an approved plan, the
25 plan for the following year shall allocate funds, in addition
26 to the funds otherwise required by this subparagraph, to
27 those attendance centers which were underfunded during the
28 previous year in amounts equal to such underfunding.
29 For purposes of determining compliance with this
30 subsection in relation to Chapter 1 expenditures, each
31 district subject to the provisions of this subsection shall
32 submit as a separate document by December 1 of each year a
33 report of Chapter 1 expenditure data for the prior year in
34 addition to any modification of its current plan. If it is
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1 determined that there has been a failure to comply with the
2 expenditure provisions of this subsection regarding
3 contravention or supplanting, the State Superintendent of
4 Education shall, within 60 days of receipt of the report,
5 notify the district and any affected local school council.
6 The district shall within 45 days of receipt of that
7 notification inform the State Superintendent of Education of
8 the remedial or corrective action to be taken, whether by
9 amendment of the current plan, if feasible, or by adjustment
10 in the plan for the following year. Failure to provide the
11 expenditure report or the notification of remedial or
12 corrective action in a timely manner shall result in a
13 withholding of the affected funds.
14 The State Board of Education shall promulgate rules and
15 regulations to implement the provisions of this subsection
16 5(i)(1). No funds shall be released under subsection 1(n) of
17 this Section or under this subsection 5(i)(1) to any district
18 which has not submitted a plan which has been approved by the
19 State Board of Education.
20 (2) School districts with an average daily attendance of
21 more than 1,000 and less than 50,000 and having a low income
22 pupil weighting factor in excess of .53 shall submit a plan
23 to the State Board of Education prior to October 30 of each
24 year for the use of the funds resulting from the application
25 of subsection 1(n) of this Section for the improvement of
26 instruction in which priority is given to meeting the
27 education needs of disadvantaged children. Such plan shall
28 be submitted in accordance with rules and regulations
29 promulgated by the State Board of Education.
30 (j) For the purposes of calculating State aid under this
31 Section, with respect to any part of a school district within
32 a redevelopment project area in respect to which a
33 municipality has adopted tax increment allocation financing
34 pursuant to the Tax Increment Allocation Redevelopment Act,
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1 Sections 11-74.4-1 through 11-74.4-11 of the Illinois
2 Municipal Code or the Industrial Jobs Recovery Law, Sections
3 11-74.6-1 through 11-74.6-50 of the Illinois Municipal Code,
4 no part of the current equalized assessed valuation of real
5 property located in any such project area which is
6 attributable to an increase above the total initial equalized
7 assessed valuation of such property shall be used in
8 computing the equalized assessed valuation per weighted ADA
9 pupil in the district, until such time as all redevelopment
10 project costs have been paid, as provided in Section
11 11-74.4-8 of the Tax Increment Allocation Redevelopment Act
12 or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
13 For the purpose of computing the equalized assessed valuation
14 per weighted ADA pupil in the district the total initial
15 equalized assessed valuation or the current equalized
16 assessed valuation, whichever is lower, shall be used until
17 such time as all redevelopment project costs have been paid.
18 (k) For a school district operating under the financial
19 supervision of an Authority created under Article 34A, the
20 State aid otherwise payable to that district under this
21 Section, other than State aid attributable to Chapter 1
22 students, shall be reduced by an amount equal to the budget
23 for the operations of the Authority as certified by the
24 Authority to the State Board of Education, and an amount
25 equal to such reduction shall be paid to the Authority
26 created for such district for its operating expenses in the
27 manner provided in Section 18-11. The remainder of State
28 school aid for any such district shall be paid in accordance
29 with Article 34A when that Article provides for a disposition
30 other than that provided by this Article.
31 (l) For purposes of calculating State aid under this
32 Section, the equalized assessed valuation for a school
33 district used to compute State aid shall be determined by
34 adding to the real property equalized assessed valuation for
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1 the district an amount computed by dividing the amount of
2 money received by the district under the provisions of "An
3 Act in relation to the abolition of ad valorem personal
4 property tax and the replacement of revenues lost thereby",
5 certified August 14, 1979, by the total tax rate for the
6 district. For purposes of this subsection 1976 tax rates
7 shall be used for school districts in the county of Cook and
8 1977 tax rates shall be used for school districts in all
9 other counties.
10 (m) (1) For a new school district formed by combining
11 property included totally within 2 or more previously
12 existing school districts, for its first year of existence or
13 if the new district was formed after October 31, 1982 and
14 prior to September 23, 1985, for the year immediately
15 following September 23, 1985, the State aid calculated under
16 this Section shall be computed for the new district and for
17 the previously existing districts for which property is
18 totally included within the new district. If the computation
19 on the basis of the previously existing districts is greater,
20 a supplementary payment equal to the difference shall be made
21 for the first 3 years of existence of the new district or if
22 the new district was formed after October 31, 1982 and prior
23 to September 23, 1985, for the 3 years immediately following
24 September 23, 1985.
25 (2) For a school district which annexes all of the
26 territory of one or more entire other school districts, for
27 the first year during which the change of boundaries
28 attributable to such annexation becomes effective for all
29 purposes as determined under Section 7-9 or 7A-8, the State
30 aid calculated under this Section shall be computed for the
31 annexing district as constituted after the annexation and for
32 the annexing and each annexed district as constituted prior
33 to the annexation; and if the computation on the basis of the
34 annexing and annexed districts as constituted prior to the
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1 annexation is greater, a supplementary payment equal to the
2 difference shall be made for the first 3 years of existence
3 of the annexing school district as constituted upon such
4 annexation.
5 (3) For 2 or more school districts which annex all of
6 the territory of one or more entire other school districts,
7 and for 2 or more community unit districts which result upon
8 the division (pursuant to petition under Section 11A-2) of
9 one or more other unit school districts into 2 or more parts
10 and which together include all of the parts into which such
11 other unit school district or districts are so divided, for
12 the first year during which the change of boundaries
13 attributable to such annexation or division becomes effective
14 for all purposes as determined under Section 7-9 or 11A-10,
15 as the case may be, the State aid calculated under this
16 Section shall be computed for each annexing or resulting
17 district as constituted after the annexation or division and
18 for each annexing and annexed district, or for each resulting
19 and divided district, as constituted prior to the annexation
20 or division; and if the aggregate of the State aid as so
21 computed for the annexing or resulting districts as
22 constituted after the annexation or division is less than the
23 aggregate of the State aid as so computed for the annexing
24 and annexed districts, or for the resulting and divided
25 districts, as constituted prior to the annexation or
26 division, then a supplementary payment equal to the
27 difference shall be made and allocated between or among the
28 annexing or resulting districts, as constituted upon such
29 annexation or division, for the first 3 years of their
30 existence. The total difference payment shall be allocated
31 between or among the annexing or resulting districts in the
32 same ratio as the pupil enrollment from that portion of the
33 annexed or divided district or districts which is annexed to
34 or included in each such annexing or resulting district bears
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1 to the total pupil enrollment from the entire annexed or
2 divided district or districts, as such pupil enrollment is
3 determined for the school year last ending prior to the date
4 when the change of boundaries attributable to the annexation
5 or division becomes effective for all purposes. The amount
6 of the total difference payment and the amount thereof to be
7 allocated to the annexing or resulting districts shall be
8 computed by the State Board of Education on the basis of
9 pupil enrollment and other data which shall be certified to
10 the State Board of Education, on forms which it shall provide
11 for that purpose, by the regional superintendent of schools
12 for each educational service region in which the annexing and
13 annexed districts, or resulting and divided districts are
14 located.
15 (4) If a unit school district annexes all the territory
16 of another unit school district effective for all purposes
17 pursuant to Section 7-9 on July 1, 1988, and if part of the
18 annexed territory is detached within 90 days after July 1,
19 1988, then the detachment shall be disregarded in computing
20 the supplementary State aid payments under this paragraph (m)
21 for the entire 3 year period and the supplementary State aid
22 payments shall not be diminished because of the detachment.
23 (5) Any supplementary State aid payment made under this
24 paragraph (m) shall be treated as separate from all other
25 payments made pursuant to this Section.
26 (n) For the purposes of calculating State aid under this
27 Section, the real property equalized assessed valuation for a
28 school district used to compute State aid shall be determined
29 by subtracting from the real property value as equalized or
30 assessed by the Department of Revenue for the district an
31 amount computed by dividing the amount of any abatement of
32 taxes under Section 18-170 of the Property Tax Code by the
33 maximum operating tax rates specified in subsection 5(c) of
34 this Section and an amount computed by dividing the amount of
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1 any abatement of taxes under subsection (a) of Section 18-165
2 of the Property Tax Code by the maximum operating tax rates
3 specified in subsection 5(c) of this Section.
4 (o) Notwithstanding any other provisions of this
5 Section, for the 1996-1997 school year the amount of the
6 aggregate general State aid entitlement that is received
7 under this Section by each school district for that school
8 year shall be not less than the amount of the aggregate
9 general State aid entitlement that was received by the
10 district under this Section for the 1995-1996 school year. If
11 a school district is to receive an aggregate general State
12 aid entitlement under this Section for the 1996-1997 school
13 year that is less than the amount of the aggregate general
14 State aid entitlement that the district received under this
15 Section for the 1995-1996 school year, the school district
16 shall also receive, from a separate appropriation made for
17 purposes of this paragraph (o), a supplementary payment that
18 is equal to the amount by which the general State aid
19 entitlement received by the district under this Section for
20 the 1995-1996 school year exceeds the general State aid
21 entitlement that the district is to receive under this
22 Section for the 1996-1997 school year. If the amount
23 appropriated for supplementary payments to school districts
24 under this paragraph (o) is insufficient for that purpose,
25 the supplementary payments that districts are to receive
26 under this paragraph shall be prorated according to the
27 aggregate amount of the appropriation made for purposes of
28 this paragraph.
29 (p) Notwithstanding any provision of the Local Option
30 Property Tax Reduction Act, the adoption or failure to adopt
31 a local income tax for schools and any disbursements of funds
32 or property tax abatements resulting from the adoption and
33 imposition of a local income tax for schools by one or more
34 school districts under the Local Option Property Tax
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1 Reduction Act shall not affect the computation or
2 distribution of State aid for any school district. All
3 computations of State aid and all other distributions of
4 State funds to school districts shall proceed without regard
5 to changes in school funding provided in the Local Option
6 Property Tax Reduction Act.
7 B. In calculating the amount to be paid to the governing
8 board of a public university that operates a laboratory
9 school under this Section or to any alternative school that
10 is operated by a regional superintendent, the State Board of
11 Education shall require by rule such reporting requirements
12 as it deems necessary.
13 As used in this Section, "laboratory school" means a
14 public school which is created and operated by a public
15 university and approved by the State Board of Education. The
16 governing board of a public university which receives funds
17 from the State Board under this subsection B may not increase
18 the number of students enrolled in its laboratory school from
19 a single district, if that district is already sending 50 or
20 more students, except under a mutual agreement between the
21 school board of a student's district of residence and the
22 university which operates the laboratory school. A
23 laboratory school may not have more than 1,000 students,
24 excluding students with disabilities in a special education
25 program.
26 As used in this Section, "alternative school" means a
27 public school which is created and operated by a Regional
28 Superintendent of Schools and approved by the State Board of
29 Education. Such alternative schools may offer courses of
30 instruction for which credit is given in regular school
31 programs, courses to prepare students for the high school
32 equivalency testing program or vocational and occupational
33 training.
34 Each laboratory and alternative school shall file, on
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1 forms provided by the State Superintendent of Education, an
2 annual State aid claim which states the average daily
3 attendance of the school's students by month. The best 3
4 months' average daily attendance shall be computed for each
5 school. The weighted average daily attendance shall be
6 computed and the weighted average daily attendance for the
7 school's most recent 3 year average shall be compared to the
8 most recent weighted average daily attendance, and the
9 greater of the 2 shall be used for the calculation under this
10 subsection B. The general State aid entitlement shall be
11 computed by multiplying the school's student count by the
12 foundation level as determined under this Section.
13 (Source: P.A. 88-9; 88-45; 88-89; 88-386; 88-511; 88-537;
14 88-555; 88-641; 88-670, eff. 12-2-94; 89-15, eff. 5-30-95;
15 89-235, eff. 8-4-95; 89-397, eff. 8-20-95; 89-610, eff.
16 8-6-96; 89-618, eff. 8-9-96; 89-626, eff. 8-9-96; 89-679,
17 eff. 8-16-96; revised 9-10-96.)
18 Section 99. Effective date. This Act takes effect upon
19 becoming a law.".