State of Illinois
90th General Assembly
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90_SB1681

      35 ILCS 200/18-200
      105 ILCS 5/18-8.05
          Amends  the  Property  Tax  Code  and  the  School  Code.
      Provides that a school district's eligibility for  a  General
      State  Aid Adjustment Grant shall not be impaired as a result
      of its Operating Tax Rate falling below prescribed  tax  rate
      requirements of the State aid formula due to the operation of
      the  Property  Tax  Limitation  Law.  Provides that those tax
      rate requirements are met if  the  district's  Operating  Tax
      Rate, absent any reduction made by the county clerk under the
      Property Tax Extension Limitation Law, would have been at the
      eligibility  level  established  in  the  State  aid formula.
      Effective July 1, 1998.
                                                     LRB9011301THpk
                                               LRB9011301THpk
 1        AN ACT relating to State aid for school districts.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  5.  The Property Tax Code is amended by changing
 5    Section 18-200 as follows:
 6        (35 ILCS 200/18-200)
 7        Sec.  18-200.   School   Code.    A   school   district's
 8    eligibility  for  a  General State Aid Adjustment Grant under
 9    subsection (N) of Section 18-8.05  State  aid  shall  not  be
10    reduced  under the computation under subsections 5(a) through
11    5(h) of Part A of Section 18-8 of the School Code  shall  not
12    be  impaired  or  otherwise  adversely  affected  due  to the
13    Operating Tax Rate of the district falling from at  or  above
14    the   tax  rate  requirements  minimum  requirement  of  that
15    subsection (N) Section of the  School  Code  to  below  those
16    requirements  because  of  the  minimum  requirement  of that
17    Section of the School  Code  due  to  the  operation  of  the
18    Property Tax Extension Limitation this Law.
19    (Source: P.A. 87-17; 88-455.)
20        Section  10.   The  School  Code  is  amended by changing
21    Section 18-8.05 as follows:
22        (105 ILCS 5/18-8.05)
23        (This Section may contain text from a Public Act  with  a
24    delayed effective date.)
25        Sec.  18-8.05.  Basis  for apportionment of general State
26    financial aid and  supplemental  general  State  aid  to  the
27    common schools for the 1998-1999 and subsequent school years.
28    (A)  General Provisions.
29        (1)  The   provisions   of  this  Section  apply  to  the
                            -2-                LRB9011301THpk
 1    1998-1999 and subsequent school years.  The system of general
 2    State financial aid provided for in this Section is  designed
 3    to  assure that, through a combination of State financial aid
 4    and required local resources, the financial support  provided
 5    each  pupil  in  Average Daily Attendance equals or exceeds a
 6    prescribed per pupil Foundation Level.  This formula approach
 7    imputes a level of per pupil Available  Local  Resources  and
 8    provides  for  the  basis  to  calculate a per pupil level of
 9    general State financial aid that,  when  added  to  Available
10    Local Resources, equals or exceeds the Foundation Level.  The
11    amount  of  per  pupil general State financial aid for school
12    districts,  in  general,  varies  in  inverse   relation   to
13    Available  Local Resources.  Per pupil amounts are based upon
14    each school district's Average Daily Attendance as that  term
15    is defined in this Section.
16        (2)  In  addition  to general State financial aid, school
17    districts with specified levels or concentrations  of  pupils
18    from   low   income   households   are  eligible  to  receive
19    supplemental general State financial aid grants  as  provided
20    pursuant to subsection (H). The supplemental State aid grants
21    provided  for  school districts under subsection (H) shall be
22    appropriated for distribution to school districts as part  of
23    the  same  line item in which the general State financial aid
24    of school districts is appropriated under this Section.
25        (3)  To receive financial assistance under this  Section,
26    school  districts  are required to file claims with the State
27    Board of Education, subject to the following requirements:
28             (a)  Any school district which fails for  any  given
29        school  year to maintain school as required by law, or to
30        maintain a recognized school is not eligible to file  for
31        such  school  year any claim upon the Common School Fund.
32        In case of  nonrecognition  of  one  or  more  attendance
33        centers   in   a   school  district  otherwise  operating
34        recognized schools, the claim of the  district  shall  be
                            -3-                LRB9011301THpk
 1        reduced   in  the  proportion  which  the  Average  Daily
 2        Attendance in the attendance center or  centers  bear  to
 3        the  Average  Daily Attendance in the school district.  A
 4        "recognized school" means any public school  which  meets
 5        the standards as established for recognition by the State
 6        Board  of  Education.   A  school  district or attendance
 7        center not having recognition status  at  the  end  of  a
 8        school term is entitled to receive State aid payments due
 9        upon   a  legal  claim  which  was  filed  while  it  was
10        recognized.
11             (b)  School district claims filed under this Section
12        are subject to Sections 18-9, 18-10, and 18-12, except as
13        otherwise provided in this Section.
14             (c)  If a  school  district  operates  a  full  year
15        school  under  Section  10-19.1, the general State aid to
16        the school district shall  be  determined  by  the  State
17        Board  of  Education  in  accordance with this Section as
18        near as may be applicable.
19             (d)  Claims  for  financial  assistance  under  this
20        Section shall  not  be  recomputed  except  as  expressly
21        provided under this Section.
22        (4)  Except  as  provided in subsections (H) and (L), the
23    board of any district receiving any of  the  grants  provided
24    for  in  this  Section  may  apply those funds to any fund so
25    received  for  which  that  board  is  authorized   to   make
26    expenditures by law.
27        School  districts  are  not  required  to exert a minimum
28    Operating Tax Rate in order to qualify for  assistance  under
29    this Section.
30        (5)  As  used  in  this Section the following terms, when
31    capitalized, shall have the meaning ascribed herein:
32             (a)  "Average Daily Attendance":  A count  of  pupil
33        attendance   in  school,  averaged  as  provided  for  in
34        subsection  (C)  and  utilized  in  deriving  per   pupil
                            -4-                LRB9011301THpk
 1        financial support levels.
 2             (b)  "Available  Local Resources":  A computation of
 3        local financial support, calculated on the basis  Average
 4        Daily  Attendance  and  derived  as  provided pursuant to
 5        subsection (D).
 6             (c)  "Corporate   Personal   Property    Replacement
 7        Taxes":  Funds paid to local school districts pursuant to
 8        "An  Act  in  relation  to  the  abolition  of ad valorem
 9        personal property tax and  the  replacement  of  revenues
10        lost thereby, and amending and repealing certain Acts and
11        parts  of Acts in connection therewith", certified August
12        14, 1979, as amended (Public Act 81-1st S.S.-1).
13             (d)  "Foundation Level":  A prescribed level of  per
14        pupil  financial  support  as  provided for in subsection
15        (B).
16             (e)  "Operating  Tax  Rate":   All  school  district
17        property  taxes  extended  for   all   purposes,   except
18        community college educational purposes for the payment of
19        tuition under Section 6-1 of the Public Community College
20        Act,  Bond  and  Interest,  Summer  School, Rent, Capital
21        Improvement, and Vocational Education Building purposes.
22    (B)  Foundation Level.
23        (1)  The Foundation Level is a figure established by  the
24    State  representing  the minimum level of per pupil financial
25    support that should be available to  provide  for  the  basic
26    education  of each pupil in Average Daily Attendance.  As set
27    forth in this Section, each school  district  is  assumed  to
28    exert   a  sufficient  local  taxing  effort  such  that,  in
29    combination with the aggregate of general State financial aid
30    provided the  district,  an  aggregate  of  State  and  local
31    resources  are available to meet the basic education needs of
32    pupils in the district.
33        (2)  For the 1998-1999 school year, the Foundation  Level
34    of  support  is  $4,225.   For the 1999-2000 school year, the
                            -5-                LRB9011301THpk
 1    Foundation Level of support is  $4,325.   For  the  2000-2001
 2    school year, the Foundation Level of support is $4,425.
 3        (3)  For  the  2001-2002 school year and each school year
 4    thereafter, the Foundation Level of support is $4,425 or such
 5    greater amount as may be established by law  by  the  General
 6    Assembly.
 7    (C)  Average Daily Attendance.
 8        (1)  For   purposes  of  calculating  general  State  aid
 9    pursuant to  subsection  (E),  an  Average  Daily  Attendance
10    figure  shall  be  utilized.   The  Average  Daily Attendance
11    figure for formula calculation purposes shall be the  monthly
12    average  of the actual number of pupils in attendance of each
13    school district, as further averaged for the best 3 months of
14    pupil attendance for each school district.  In compiling  the
15    figures  for  the  number  of  pupils  in  attendance, school
16    districts  and  the  State  Board  of  Education  shall,  for
17    purposes of general State  aid  funding,  conform  attendance
18    figures to the requirements of subsection (F).
19        (2)  The  Average  Daily  Attendance  figures utilized in
20    subsection (E) shall be the requisite attendance data for the
21    school year immediately preceding the school year  for  which
22    general State aid is being calculated.
23    (D)  Available Local Resources.
24        (1)  For   purposes  of  calculating  general  State  aid
25    pursuant to subsection (E),  a  representation  of  Available
26    Local  Resources  per  pupil,  as  that  term  is defined and
27    determined in this subsection, shall be utilized.   Available
28    Local  Resources  per pupil shall include a calculated dollar
29    amount representing local school district revenues from local
30    property  taxes  and   from   Corporate   Personal   Property
31    Replacement  Taxes,  expressed  on  the  basis  of  pupils in
32    Average Daily Attendance.
33        (2)  In determining  a  school  district's  revenue  from
                            -6-                LRB9011301THpk
 1    local  property  taxes,  the  State  Board of Education shall
 2    utilize the  equalized  assessed  valuation  of  all  taxable
 3    property  of  each  school district as of September 30 of the
 4    previous year.  The  equalized  assessed  valuation  utilized
 5    shall  be  obtained  and determined as provided in subsection
 6    (G).
 7        (3)  For school districts maintaining grades kindergarten
 8    through 12, local property tax revenues per  pupil  shall  be
 9    calculated   as  the  product  of  the  applicable  equalized
10    assessed valuation for the district multiplied by 3.00%,  and
11    divided  by  the  district's Average Daily Attendance figure.
12    For school districts maintaining grades kindergarten  through
13    8,  local property tax revenues per pupil shall be calculated
14    as the product of the applicable equalized assessed valuation
15    for the district multiplied by  2.30%,  and  divided  by  the
16    district's  Average  Daily  Attendance  figure.   For  school
17    districts maintaining grades 9 through 12, local property tax
18    revenues per pupil shall be the applicable equalized assessed
19    valuation of the district multiplied by 1.20%, and divided by
20    the district's Average Daily Attendance figure.
21        (4)  The  Corporate  Personal  Property Replacement Taxes
22    paid to each school district during the calendar year 2 years
23    before the calendar year  in  which  a  school  year  begins,
24    divided  by  the  Average  Daily  Attendance  figure for that
25    district, shall be added to the local property  tax  revenues
26    per  pupil  as  derived by the application of the immediately
27    preceding paragraph (3).  The sum of these per pupil  figures
28    for  each  school  district  shall constitute Available Local
29    Resources as that term is utilized in subsection (E)  in  the
30    calculation of general State aid.
31    (E)  Computation of General State Aid.
32        (1)  For  each  school  year, the amount of general State
33    aid allotted to a school district shall be  computed  by  the
34    State Board of Education as provided in this subsection.
                            -7-                LRB9011301THpk
 1        (2)  For  any  school  district for which Available Local
 2    Resources per pupil is less than the product  of  0.93  times
 3    the  Foundation  Level,  general  State aid for that district
 4    shall be calculated as an  amount  equal  to  the  Foundation
 5    Level  minus  Available  Local  Resources,  multiplied by the
 6    Average Daily Attendance of the school district.
 7        (3)  For any school district for  which  Available  Local
 8    Resources  per  pupil is equal to or greater than the product
 9    of 0.93 times the Foundation Level and less than the  product
10    of 1.75 times the Foundation Level, the general State aid per
11    pupil  shall  be a decimal proportion of the Foundation Level
12    derived  using  a  linear  algorithm.   Under   this   linear
13    algorithm,  the  calculated general State aid per pupil shall
14    decline  in  direct  linear  fashion  from  0.07  times   the
15    Foundation  Level  for a school district with Available Local
16    Resources equal to the product of 0.93 times  the  Foundation
17    Level,  to  0.05  times  the  Foundation  Level  for a school
18    district with Available Local Resources equal to the  product
19    of  1.75  times  the  Foundation  Level.   The  allocation of
20    general State  aid  for  school  districts  subject  to  this
21    paragraph  3  shall  be  the calculated general State aid per
22    pupil figure multiplied by the Average  Daily  Attendance  of
23    the school district.
24        (4)  For  any  school  district for which Available Local
25    Resources per pupil equals or exceeds  the  product  of  1.75
26    times  the  Foundation  Level,  the general State aid for the
27    school district shall be calculated as the  product  of  $218
28    multiplied  by  the  Average  Daily  Attendance of the school
29    district.
30    (F)  Compilation of Average Daily Attendance.
31        (1)  Each school district shall, by July 1 of each  year,
32    submit  to  the State Board of Education, on forms prescribed
33    by the State Board of Education, attendance figures  for  the
34    school  year  that began in the preceding calendar year.  The
                            -8-                LRB9011301THpk
 1    attendance information  so  transmitted  shall  identify  the
 2    average daily attendance figures for each month of the school
 3    year,  except  that any days of attendance in August shall be
 4    added to the month of September and any days of attendance in
 5    June shall be added to the month of May.
 6        Except as otherwise provided in  this  Section,  days  of
 7    attendance  by  pupils  shall be counted only for sessions of
 8    not less than 5 clock hours of  school  work  per  day  under
 9    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
10    personnel   or   volunteer   personnel   when   engaging   in
11    non-teaching  duties  and  supervising  in  those   instances
12    specified in subsection (a) of Section 10-22.34 and paragraph
13    10  of  Section 34-18, with pupils of legal school age and in
14    kindergarten and grades 1 through 12.
15        Days of attendance by tuition pupils shall be  accredited
16    only  to  the  districts that pay the tuition to a recognized
17    school.
18        (2)  Days of attendance by pupils of less  than  5  clock
19    hours  of school shall be subject to the following provisions
20    in the compilation of Average Daily Attendance.
21             (a)  Pupils regularly enrolled in  a  public  school
22        for  only  a part of the school day may be counted on the
23        basis of 1/6 day for every class hour of  instruction  of
24        40 minutes or more attended pursuant to such enrollment.
25             (b)  Days  of  attendance  may  be less than 5 clock
26        hours on the opening and closing of the school term,  and
27        upon  the first day of pupil attendance, if preceded by a
28        day  or  days  utilized  as  an  institute  or  teachers'
29        workshop.
30             (c)  A session of 4  or  more  clock  hours  may  be
31        counted  as a day of attendance upon certification by the
32        regional  superintendent,  and  approved  by  the   State
33        Superintendent  of  Education  to  the  extent  that  the
34        district has been forced to use daily multiple sessions.
                            -9-                LRB9011301THpk
 1             (d)  A  session  of  3  or  more  clock hours may be
 2        counted as a day of attendance (1) when the remainder  of
 3        the school day or at least 2 hours in the evening of that
 4        day  is  utilized  for an in-service training program for
 5        teachers, up to a maximum of 5 days per  school  year  of
 6        which  a maximum of 4 days of such 5 days may be used for
 7        parent-teacher conferences, provided a district  conducts
 8        an  in-service  training  program  for teachers which has
 9        been approved by the State Superintendent  of  Education;
10        or,  in  lieu of 4 such days, 2 full days may be used, in
11        which event each such day may be  counted  as  a  day  of
12        attendance;  and  (2)  when  days  in  addition  to those
13        provided in item (1) are scheduled by a  school  pursuant
14        to  its  school improvement plan adopted under Article 34
15        or its revised or amended school improvement plan adopted
16        under Article 2, provided that (i) such sessions of 3  or
17        more  clock  hours  are  scheduled  to  occur  at regular
18        intervals, (ii) the remainder of the school days in which
19        such sessions occur are utilized for in-service  training
20        programs   or  other  staff  development  activities  for
21        teachers, and (iii) a sufficient  number  of  minutes  of
22        school  work under the direct supervision of teachers are
23        added to the school days between such regularly scheduled
24        sessions to  accumulate  not  less  than  the  number  of
25        minutes  by  which such sessions of 3 or more clock hours
26        fall short of 5 clock hours. Any full days used  for  the
27        purposes  of  this  paragraph shall not be considered for
28        computing average daily attendance.  Days  scheduled  for
29        in-service    training    programs,   staff   development
30        activities,  or   parent-teacher   conferences   may   be
31        scheduled  separately  for  different  grade  levels  and
32        different attendance centers of the district.
33             (e)  A  session  of  not  less  than  one clock hour
34        teaching of hospitalized or homebound pupils  on-site  or
                            -10-               LRB9011301THpk
 1        by  telephone  to the classroom may be counted as 1/2 day
 2        of attendance, however these pupils  must  receive  4  or
 3        more  clock hours of instruction to be counted for a full
 4        day of attendance.
 5             (f)  A session of at least  4  clock  hours  may  be
 6        counted  as  a  day of attendance for first grade pupils,
 7        and pupils in full day kindergartens, and a session of  2
 8        or  more hours may be counted as 1/2 day of attendance by
 9        pupils in kindergartens which provide  only  1/2  day  of
10        attendance.
11             (g)  For  children  with  disabilities who are below
12        the age of 6 years and who cannot attend 2 or more  clock
13        hours  because  of  their  disability  or  immaturity,  a
14        session of not less than one clock hour may be counted as
15        1/2  day  of  attendance; however for such children whose
16        educational needs so require a session of 4 or more clock
17        hours may be counted as a full day of attendance.
18             (h)  A recognized kindergarten  which  provides  for
19        only  1/2  day of attendance by each pupil shall not have
20        more than 1/2 day of attendance counted  in  any  1  day.
21        However, kindergartens may count 2 1/2 days of attendance
22        in  any  5 consecutive school days.  When a pupil attends
23        such a kindergarten for 2 half days  on  any  one  school
24        day,  the  pupil  shall  have  the following day as a day
25        absent from school, unless the  school  district  obtains
26        permission  in  writing  from the State Superintendent of
27        Education.  Attendance at kindergartens which provide for
28        a full day of attendance by each pupil shall  be  counted
29        the  same  as attendance by first grade pupils.  Only the
30        first year of attendance in  one  kindergarten  shall  be
31        counted,  except  in  case  of  children  who entered the
32        kindergarten  in  their  fifth  year  whose   educational
33        development  requires  a  second  year of kindergarten as
34        determined under the rules and regulations of  the  State
                            -11-               LRB9011301THpk
 1        Board of Education.
 2    (G)  Equalized Assessed Valuation Data.
 3        (1)  For  purposes  of the calculation of Available Local
 4    Resources required pursuant  to  subsection  (D),  the  State
 5    Board  of  Education  shall  secure  from  the  Department of
 6    Revenue the value as equalized or assessed by the  Department
 7    of  Revenue  of all taxable property of every school district
 8    together with the applicable tax rate used in extending taxes
 9    for the funds of the district  as  of  September  30  of  the
10    previous year.
11        This equalized assessed valuation, as adjusted further by
12    the requirements of this subsection, shall be utilized in the
13    calculation of Available Local Resources.
14        (2)  The  equalized  assessed  valuation in paragraph (1)
15    shall be adjusted, as applicable, in the following manner:
16             (a)  For the purposes of calculating State aid under
17        this Section, with  respect  to  any  part  of  a  school
18        district  within  a redevelopment project area in respect
19        to  which  a  municipality  has  adopted  tax   increment
20        allocation   financing  pursuant  to  the  Tax  Increment
21        Allocation Redevelopment Act, Sections 11-74.4-1  through
22        11-74.4-11   of   the  Illinois  Municipal  Code  or  the
23        Industrial Jobs Recovery Law, Sections 11-74.6-1  through
24        11-74.6-50 of the Illinois Municipal Code, no part of the
25        current  equalized  assessed  valuation  of real property
26        located in any such project area which is attributable to
27        an increase above the total  initial  equalized  assessed
28        valuation  of  such property shall be used as part of the
29        equalized assessed valuation of the district, until  such
30        time  as  all redevelopment project costs have been paid,
31        as provided in Section 11-74.4-8  of  the  Tax  Increment
32        Allocation  Redevelopment Act or in Section 11-74.6-35 of
33        the Industrial Jobs Recovery Law.  For the purpose of the
34        equalized assessed valuation of the district,  the  total
                            -12-               LRB9011301THpk
 1        initial  equalized  assessed  valuation  or  the  current
 2        equalized  assessed  valuation, whichever is lower, shall
 3        be used until such  time  as  all  redevelopment  project
 4        costs have been paid.
 5             (b)  The  real property equalized assessed valuation
 6        for a school district shall be  adjusted  by  subtracting
 7        from  the real property value as equalized or assessed by
 8        the Department of Revenue  for  the  district  an  amount
 9        computed by dividing the amount of any abatement of taxes
10        under  Section  18-170  of the Property Tax Code by 3.00%
11        for a district maintaining grades kindergarten through 12
12        or  by  2.30%   for   a   district   maintaining   grades
13        kindergarten  through  8,  or  by  1.20%  for  a district
14        maintaining grades 9 through 12 and adjusted by an amount
15        computed by dividing the amount of any abatement of taxes
16        under subsection (a) of Section 18-165  of  the  Property
17        Tax  Code  by the same percentage rates for district type
18        as specified in this subparagraph (c).
19    (H)  Supplemental General State Aid.
20        (1)  In addition  to  the  general  State  aid  a  school
21    district  is  allotted pursuant to subsection (E), qualifying
22    school districts shall receive a grant, paid  in  conjunction
23    with   a  district's  payments  of  general  State  aid,  for
24    supplemental general State aid based upon  the  concentration
25    level  of  children  from  low-income  households  within the
26    school district. Supplemental State aid grants  provided  for
27    school  districts under this subsection shall be appropriated
28    for distribution to school districts as part of the same line
29    item in which the  general  State  financial  aid  of  school
30    districts is appropriated under this Section. For purposes of
31    this  subsection,  the  term "Low-Income Concentration Level"
32    shall be the low-income eligible pupil count  from  the  most
33    recently  available  federal  census  divided  by the Average
34    Daily Attendance of the school district.
                            -13-               LRB9011301THpk
 1        (2)  Supplemental general  State  aid  pursuant  to  this
 2    subsection shall be provided as follows:
 3             (a)  For  any  school  district  with  a  Low Income
 4        Concentration Level of at least 20% and  less  than  35%,
 5        the grant for any school year shall be $800 multiplied by
 6        the low income eligible pupil count.
 7             (b)  For  any  school  district  with  a  Low Income
 8        Concentration Level of at least 35% and  less  than  50%,
 9        the  grant  for the 1998-1999 school year shall be $1,100
10        multiplied by the low income eligible pupil count.
11             (c)  For any  school  district  with  a  Low  Income
12        Concentration  Level  of  at least 50% and less than 60%,
13        the grant for the 1998-99 school  year  shall  be  $1,500
14        multiplied by the low income eligible pupil count.
15             (d)  For  any  school  district  with  a  Low Income
16        Concentration Level of 60% or more,  the  grant  for  the
17        1998-99 school year shall be $1,900 multiplied by the low
18        income eligible pupil count.
19             (e)  For  the  1999-2000  school year, the per pupil
20        amount specified in  subparagraphs  (b),  (c),  and  (d),
21        immediately  above  shall be increased by $100 to $1,200,
22        $1,600, and $2,000, respectively.
23             (f)  For the 2000-2001 school year,  the  per  pupil
24        amounts  specified  in  subparagraphs  (b),  (c)  and (d)
25        immediately above shall be increased to  $1,230,  $1,640,
26        and $2,050, respectively.
27        (3)  School districts with an Average Daily Attendance of
28    more  than  1,000  and  less  than  50,000  that  qualify for
29    supplemental general State aid pursuant  to  this  subsection
30    shall  submit a plan to the State Board of Education prior to
31    October 30 of each year for the use of  the  funds  resulting
32    from  this  grant  of  supplemental general State aid for the
33    improvement of instruction in  which  priority  is  given  to
34    meeting  the education needs of disadvantaged children.  Such
                            -14-               LRB9011301THpk
 1    plan  shall  be  submitted  in  accordance  with  rules   and
 2    regulations promulgated by the State Board of Education.
 3        (4)  School districts with an Average Daily Attendance of
 4    50,000  or  more  that qualify for supplemental general State
 5    aid  pursuant  to  this  subsection  shall  be  required   to
 6    distribute  from funds available pursuant to this Section, no
 7    less than  $261,000,000  in  accordance  with  the  following
 8    requirements:
 9             (a)  The  required  amounts  shall be distributed to
10        the attendance centers within the district in  proportion
11        to  the  number  of  pupils  enrolled  at each attendance
12        center who are eligible to receive free or  reduced-price
13        lunches  or  breakfasts under the federal Child Nutrition
14        Act of 1966 and  under  the  National  School  Lunch  Act
15        during the immediately preceding school year.
16             (b)  The   distribution   of   these   portions   of
17        supplemental  and  general  State  aid  among  attendance
18        centers  according  to  these  requirements  shall not be
19        compensated for or  contravened  by  adjustments  of  the
20        total  of  other  funds  appropriated  to  any attendance
21        centers, and the Board of Education shall utilize funding
22        from one or several sources in order to  fully  implement
23        this provision annually prior to the opening of school.
24             (c)  Each attendance center shall be provided by the
25        school  district  a  distribution of noncategorical funds
26        and other categorical funds to which an attendance center
27        is entitled under law in order that the general State aid
28        and  supplemental   general   State   aid   provided   by
29        application  of  this  subsection supplements rather than
30        supplants the noncategorical funds and other  categorical
31        funds  provided  by the school district to the attendance
32        centers.
33             (d)  Any funds made available under this  subsection
34        that  by  reason of the provisions of this subsection are
                            -15-               LRB9011301THpk
 1        not required to be allocated and provided  to  attendance
 2        centers  may be used and appropriated by the board of the
 3        district for any lawful school purpose.
 4             (e)  Funds received by an attendance center pursuant
 5        to this subsection shall be used by the attendance center
 6        at the discretion  of  the  principal  and  local  school
 7        council for programs to improve educational opportunities
 8        at  qualifying schools through the following programs and
 9        services: early childhood education, reduced  class  size
10        or  improved adult to student classroom ratio, enrichment
11        programs, remedial assistance, attendance improvement and
12        other   educationally   beneficial   expenditures   which
13        supplement the regular and basic programs  as  determined
14        by  the  State  Board of Education.  Funds provided shall
15        not be expended for any political or lobbying purposes as
16        defined by board rule.
17             (f)  Each district subject to the provisions of this
18        subdivision (H)(4) shall submit  an  acceptable  plan  to
19        meet  the educational needs of disadvantaged children, in
20        compliance with the requirements of  this  paragraph,  to
21        the  State  Board  of  Education prior to July 15 of each
22        year. This plan shall be consistent with the decisions of
23        local school councils concerning the  school  expenditure
24        plans  developed  in  accordance  with  part 4 of Section
25        34-2.3.  The State Board shall approve or reject the plan
26        within 60 days after its  submission.   If  the  plan  is
27        rejected,  the  district  shall  give  written  notice of
28        intent  to  modify  the  plan  within  15  days  of   the
29        notification of rejection and then submit a modified plan
30        within  30  days  after the date of the written notice of
31        intent to modify.  Districts  may  amend  approved  plans
32        pursuant  to  rules  promulgated  by  the  State Board of
33        Education.
34             Upon notification by the State  Board  of  Education
                            -16-               LRB9011301THpk
 1        that  the district has not submitted a plan prior to July
 2        15 or a modified plan within the  time  period  specified
 3        herein,  the  State  aid  funds  affected by that plan or
 4        modified plan shall be withheld by  the  State  Board  of
 5        Education until a plan or modified plan is submitted.
 6             If  the  district  fails  to distribute State aid to
 7        attendance centers in accordance with an  approved  plan,
 8        the  plan for the following year shall allocate funds, in
 9        addition  to  the  funds  otherwise  required   by   this
10        subsection,   to  those  attendance  centers  which  were
11        underfunded during the previous year in amounts equal  to
12        such underfunding.
13             For  purposes  of  determining  compliance with this
14        subsection in relation to the requirements of  attendance
15        center  funding,  each district subject to the provisions
16        of this subsection shall submit as a separate document by
17        December 1 of each year a report of expenditure data  for
18        the  prior  year  in  addition to any modification of its
19        current plan.  If it is determined that there has been  a
20        failure to comply with the expenditure provisions of this
21        subsection  regarding  contravention  or supplanting, the
22        State Superintendent of Education shall, within  60  days
23        of  receipt  of  the  report, notify the district and any
24        affected local school council.  The district shall within
25        45 days of receipt of that notification inform the  State
26        Superintendent of Education of the remedial or corrective
27        action  to be taken, whether  by amendment of the current
28        plan, if feasible, or by adjustment in the plan  for  the
29        following  year.   Failure  to  provide  the  expenditure
30        report  or  the  notification  of  remedial or corrective
31        action in a timely manner shall result in  a  withholding
32        of the affected funds.
33             The  State Board of Education shall promulgate rules
34        and regulations  to  implement  the  provisions  of  this
                            -17-               LRB9011301THpk
 1        subsection.   No  funds  shall  be  released  under  this
 2        subdivision (H)(4) to any district that has not submitted
 3        a  plan  that  has  been  approved  by the State Board of
 4        Education.
 5    (I)  General State Aid for Newly Configured School Districts.
 6        (1)  For  a  new  school  district  formed  by  combining
 7    property  included  totally  within  2  or  more   previously
 8    existing  school  districts,  for its first year of existence
 9    the general State aid  and  supplemental  general  State  aid
10    calculated  under  this Section shall be computed for the new
11    district and for the previously existing districts for  which
12    property is totally included within the new district.  If the
13    computation on the basis of the previously existing districts
14    is  greater,  a supplementary payment equal to the difference
15    shall be made for the first 4 years of existence of  the  new
16    district.
17        (2)  For  a  school  district  which  annexes  all of the
18    territory of one or more entire other school  districts,  for
19    the   first  year  during  which  the  change  of  boundaries
20    attributable to such annexation  becomes  effective  for  all
21    purposes as determined under Section 7-9 or 7A-8, the general
22    State aid and supplemental general State aid calculated under
23    this  Section  shall be computed for the annexing district as
24    constituted after the annexation and  for  the  annexing  and
25    each annexed district as constituted prior to the annexation;
26    and  if  the  computation  on  the  basis of the annexing and
27    annexed districts as constituted prior to the  annexation  is
28    greater,  a  supplementary  payment  equal  to the difference
29    shall be made for the first  4  years  of  existence  of  the
30    annexing school district as constituted upon such annexation.
31        (3)  For  2  or  more school districts which annex all of
32    the territory of one or more entire other  school  districts,
33    and  for 2 or more community unit districts which result upon
34    the division (pursuant to petition under  Section  11A-2)  of
                            -18-               LRB9011301THpk
 1    one  or more other unit school districts into 2 or more parts
 2    and which together include all of the parts into  which  such
 3    other  unit  school district or districts are so divided, for
 4    the  first  year  during  which  the  change  of   boundaries
 5    attributable to such annexation or division becomes effective
 6    for  all  purposes as determined under Section 7-9 or 11A-10,
 7    as the case may be, the general State  aid  and  supplemental
 8    general  State  aid  calculated  under  this Section shall be
 9    computed  for  each  annexing  or   resulting   district   as
10    constituted  after  the  annexation  or division and for each
11    annexing and annexed district,  or  for  each  resulting  and
12    divided  district,  as constituted prior to the annexation or
13    division; and if the aggregate of the general State  aid  and
14    supplemental  general  State  aid  as  so  computed  for  the
15    annexing  or  resulting  districts  as  constituted after the
16    annexation or division is less  than  the  aggregate  of  the
17    general  State  aid  and supplemental general State aid as so
18    computed for the annexing and annexed districts, or  for  the
19    resulting  and divided districts, as constituted prior to the
20    annexation or division, then a supplementary payment equal to
21    the difference shall be made and allocated between  or  among
22    the annexing or resulting districts, as constituted upon such
23    annexation  or  division,  for  the  first  4  years of their
24    existence.  The total difference payment shall  be  allocated
25    between  or  among the annexing or resulting districts in the
26    same ratio as the pupil enrollment from that portion  of  the
27    annexed  or divided district or districts which is annexed to
28    or included in each such annexing or resulting district bears
29    to the total pupil enrollment  from  the  entire  annexed  or
30    divided  district  or  districts, as such pupil enrollment is
31    determined for the school year last ending prior to the  date
32    when  the change of boundaries attributable to the annexation
33    or division becomes effective for all purposes.   The  amount
34    of  the total difference payment and the amount thereof to be
                            -19-               LRB9011301THpk
 1    allocated to the annexing or  resulting  districts  shall  be
 2    computed  by  the  State  Board  of Education on the basis of
 3    pupil enrollment and other data which shall be  certified  to
 4    the State Board of Education, on forms which it shall provide
 5    for  that  purpose, by the regional superintendent of schools
 6    for each educational service region in which the annexing and
 7    annexed districts, or resulting  and  divided  districts  are
 8    located.
 9        (4)  Any supplementary payment made under this subsection
10    (I) shall be treated as separate from all other payments made
11    pursuant to this Section.
12    (J)  Supplementary Grants in Aid.
13        (1)  Notwithstanding   any   other   provisions  of  this
14    Section, the amount of the aggregate  general  State  aid  in
15    combination  with  supplemental  general State aid under this
16    Section for which each school district is  eligible  for  the
17    1998-1999 school year shall be no less than the amount of the
18    aggregate  general State aid entitlement that was received by
19    the  district  under  Section  18-8  (exclusive  of   amounts
20    received  under  subsections 5(p) and 5(p-5) of that Section)
21    for the 1997-98 school year, pursuant to  the  provisions  of
22    that  Section  as it was then in effect. If a school district
23    qualifies to receive a supplementary payment made under  this
24    subsection  (J)  for the 1998-1999 school year, the amount of
25    the  aggregate  general  State  aid   in   combination   with
26    supplemental general State aid under this Section  which that
27    district   is  eligible  to  receive  for  each  school  year
28    subsequent to the 1998-1999 school year shall be no less than
29    the amount of the aggregate  general  State  aid  entitlement
30    that   was  received  by  the  district  under  Section  18-8
31    (exclusive of amounts received  under  subsections  5(p)  and
32    5(p-5)  of  that  Section)  for  the  1997-1998  school year,
33    pursuant to the provisions of that Section as it was then  in
34    effect.
                            -20-               LRB9011301THpk
 1        (2)  If,  as provided in paragraph (1) of this subsection
 2    (J), a school district is to receive aggregate general  State
 3    aid  in combination with supplemental general State aid under
 4    this Section for the 1998-99 school year, or for the  1998-99
 5    school  year and any subsequent school year, that in any such
 6    school year is less than the amount of the aggregate  general
 7    State  aid  entitlement  that  the  district received for the
 8    1997-98 school year, the school district shall also  receive,
 9    from  a  separate  appropriation  made  for  purposes of this
10    subsection (J), a supplementary payment that is equal to  the
11    amount  of  the difference in the aggregate State aid figures
12    as described in paragraph (1).
13        (3)  If  the  amount   appropriated   for   supplementary
14    payments  to  school  districts  under this subsection (J) is
15    insufficient for that  purpose,  the  supplementary  payments
16    that  districts are to receive under this subsection shall be
17    prorated  according  to   the   aggregate   amount   of   the
18    appropriation made for purposes of this subsection.
19    (K)  Grants to Laboratory and Alternative Schools.
20        In  calculating  the  amount  to be paid to the governing
21    board of a  public  university  that  operates  a  laboratory
22    school  under  this Section or to any alternative school that
23    is operated by a regional superintendent, the State Board  of
24    Education  shall  require by rule such reporting requirements
25    as it deems necessary.
26        As used in this  Section,  "laboratory  school"  means  a
27    public  school  which  is  created  and  operated by a public
28    university and approved by the State Board of Education.  The
29    governing board of a public university which  receives  funds
30    from  the  State  Board  under  this  subsection  (K) may not
31    increase the number of students enrolled  in  its  laboratory
32    school  from  a  single district, if that district is already
33    sending 50 or more students, except under a mutual  agreement
34    between the school board of a student's district of residence
                            -21-               LRB9011301THpk
 1    and  the  university which operates the laboratory school.  A
 2    laboratory school may not  have  more  than  1,000  students,
 3    excluding  students  with disabilities in a special education
 4    program.
 5        As used in this Section,  "alternative  school"  means  a
 6    public  school  which  is  created and operated by a Regional
 7    Superintendent of Schools and approved by the State Board  of
 8    Education.  Such  alternative  schools  may  offer courses of
 9    instruction for which  credit  is  given  in  regular  school
10    programs,  courses  to  prepare  students for the high school
11    equivalency testing program or  vocational  and  occupational
12    training.
13        Each  laboratory  and  alternative  school shall file, on
14    forms provided by the State Superintendent of  Education,  an
15    annual  State  aid  claim  which  states  the  Average  Daily
16    Attendance  of  the  school's  students by month.  The best 3
17    months' Average Daily Attendance shall be computed  for  each
18    school.  The  general State aid entitlement shall be computed
19    by multiplying the applicable Average Daily Attendance by the
20    Foundation Level as determined under this Section.
21    (L)  Payments,   Additional   Grants   in   Aid   and   Other
22    Requirements.
23        (1)  For a school district operating under the  financial
24    supervision  of  an  Authority created under Article 34A, the
25    general State aid otherwise payable to  that  district  under
26    this  Section,  but  not  the supplemental general State aid,
27    shall be reduced by an amount equal to  the  budget  for  the
28    operations  of the Authority as certified by the Authority to
29    the State Board of Education, and an  amount  equal  to  such
30    reduction  shall  be  paid  to the Authority created for such
31    district for its operating expenses in the manner provided in
32    Section 18-11.  The remainder of general State school aid for
33    any such district shall be paid in  accordance  with  Article
34    34A  when  that Article provides for a disposition other than
                            -22-               LRB9011301THpk
 1    that provided by this Article.
 2        (2)  Impaction.  Impaction  payments  shall  be  made  as
 3    provided for in Section 18-4.2.
 4        (3)  Summer school.  Summer school payments shall be made
 5    as provided in Section 18-4.3.
 6    (M)  Education Funding Advisory Board.
 7        The Education Funding Advisory Board, hereinafter in this
 8    subsection (M) referred to as the "Board", is hereby created.
 9    The Board shall consist of 5 members who are appointed by the
10    Governor,  by  and with the advice and consent of the Senate.
11    The  members  appointed  shall  include  representatives   of
12    education,  business,  and  the  general  public.  One of the
13    members so appointed shall be designated by the  Governor  at
14    the  time  the  appointment is made as the chairperson of the
15    Board. The initial members of the Board may be appointed  any
16    time after the effective date of this amendatory Act of 1997.
17    The  regular  term of each member of the Board shall be for 4
18    years from the third Monday of January of the year  in  which
19    the  term  of the member's appointment is to commence, except
20    that of the 5 initial  members  appointed  to  serve  on  the
21    Board,  the  member who is appointed as the chairperson shall
22    serve for a term that commences on the date  of  his  or  her
23    appointment and expires on the third Monday of January, 2002,
24    and  the  remaining  4  members,  by  lots drawn at the first
25    meeting of the Board that is held after  all  5  members  are
26    appointed,  shall  determine  2  of their number to serve for
27    terms  that  commence  on  the  date  of   their   respective
28    appointments and expire on the third Monday of January, 2001,
29    and 2 of their number to serve for terms that commence on the
30    date of their respective appointments and expire on the third
31    Monday  of  January, 2000.  All members appointed to serve on
32    the Board shall serve until their respective  successors  are
33    appointed  and  confirmed.   Vacancies shall be filled in the
34    same manner  as  original  appointments.   If  a  vacancy  in
                            -23-               LRB9011301THpk
 1    membership  occurs  at  a  time  when  the  Senate  is not in
 2    session, the Governor  shall  make  a  temporary  appointment
 3    until  the  next  meeting of the Senate, when he or she shall
 4    appoint, by and with the advice and consent of the Senate,  a
 5    person  to  fill  that membership for the unexpired term.  If
 6    the Senate is not in session when  the  initial  appointments
 7    are  made, those appointments shall be made as in the case of
 8    vacancies.
 9        The Education Funding  Advisory  Board  shall  be  deemed
10    established,   and  the  initial  members  appointed  by  the
11    Governor to serve as members of the Board shall take  office,
12    on the date that the Governor makes his or her appointment of
13    the  fifth initial member of the Board, whether those initial
14    members  are  then  serving  pursuant  to   appointment   and
15    confirmation  or  pursuant to temporary appointments that are
16    made by the Governor as in the case of vacancies.
17        The State Board of Education  shall  provide  such  staff
18    assistance  to  the  Education  Funding  Advisory Board as is
19    reasonably required for the proper performance by  the  Board
20    of its responsibilities.
21        For  school  years  after  the 2000-2001 school year, the
22    Education Funding Advisory Board, in  consultation  with  the
23    State  Board  of  Education,  shall  make  recommendations as
24    provided in this subsection (M) to the General  Assembly  for
25    the foundation level under subdivision (B)(3) of this Section
26    and  for the supplemental general State aid grant level under
27    subsection (H)  of  this  Section  for  districts  with  high
28    concentrations  of  children  from  poverty.  The recommended
29    foundation level shall be determined based on  a  methodology
30    which   incorporates  the  basic  education  expenditures  of
31    low-spending schools exhibiting  high  academic  performance.
32    The   Education   Funding  Advisory  Board  shall  make  such
33    recommendations to the General Assembly on January 1  of  odd
34    numbered years, beginning January 1, 2001.
                            -24-               LRB9011301THpk
 1    (N)  General State Aid Adjustment Grant.
 2        (1)  Any   school   district   subject  to  property  tax
 3    extension limitations as imposed under the provisions of  the
 4    Property  Tax  Extension  Limitation Law shall be entitled to
 5    receive, subject to the qualifications  and  requirements  of
 6    this  subsection,  a  general  State  aid  adjustment  grant.
 7    Eligibility  for  this grant shall be determined on an annual
 8    basis and claims for grant payments shall be paid subject  to
 9    appropriations   made   specific  to  this  subsection.   For
10    purposes of this subsection the following  terms  shall  have
11    the following meanings:
12        "Budget  Year":   The school year for which general State
13    aid is calculated and awarded under subsection (E).
14        "Current Year":  The school  year  immediately  preceding
15    the Budget Year.
16        "Base  Tax  Year":   The  property  tax levy year used to
17    calculate the Budget Year allocation of general State aid.
18        "Preceding  Tax  Year":   The  property  tax  levy   year
19    immediately preceding the Base Tax Year.
20        "Extension   Limitation   Ratio":   A   numerical  ratio,
21    certified by a school district's County Clerk, in  which  the
22    numerator  is  the  Base  Tax  Year's  tax  extension  amount
23    resulting  from the Operating Tax Rate and the denominator is
24    the Preceding Tax Year's tax extension amount resulting  from
25    the Operating Tax Rate.
26        "Operating  Tax  Rate": The operating tax rate as defined
27    in subsection (A).
28        (2)  To qualify for a general State aid adjustment grant,
29    a school district must meet all of the following  eligibility
30    criteria for each Budget Year for which a grant is claimed:
31             (a)  The  Operating  Tax Rate of the school district
32        in the Preceding Tax Year was or, absent any reduction in
33        that Operating Tax Rate made by Clerk of the County as  a
34        result  of the requirements of the Property Tax Extension
                            -25-               LRB9011301THpk
 1        Limitation Law, would have been at  least  3.00%  in  the
 2        case of a school district maintaining grades kindergarten
 3        through  12,  at  least  2.30%  in  the  case of a school
 4        district maintaining grades kindergarten through 8, or at
 5        least 1.41% in the case of a school district  maintaining
 6        grades 9 through 12.
 7             (b)  The  Operating  Tax Rate of the school district
 8        for the Base Tax Year was reduced by  the  Clerk  of  the
 9        County  as  a  result of the requirements of the Property
10        Tax Extension Limitation Law.
11             (c)  The Available Local Resources per pupil of  the
12        school  district as calculated pursuant to subsection (D)
13        using the Base Tax Year are less than the product of 1.75
14        times the Foundation Level for the Budget Year.
15             (d)  The school district  has  filed  a  proper  and
16        timely  claim for a general State aid adjustment grant as
17        required under this subsection.
18        (3)  A claim for grant assistance under  this  subsection
19    shall be filed with the State Board of Education on or before
20    January  1  of  the  Current  Year for a grant for the Budget
21    Year.  The claim shall be made on  forms  prescribed  by  the
22    State Board of Education and must be accompanied by a written
23    statement from the Clerk of the County, certifying:
24             (a)  That  the school district has its extension for
25        the Base Tax Year reduced as a result of the Property Tax
26        Extension Limitation Law.
27             (b)  That the  Operating  Tax  Rate  of  the  school
28        district  for the Preceding Tax Year or its Operating Tax
29        Rate for the Preceding Tax Year before it was reduced  by
30        the  Clerk  of the County as a result of the requirements
31        of the Property Tax Extension Limitation Law  met the tax
32        rate requirements of subdivision (N)(2) of this Section.
33             (c)  The Extension Limitation Ratio as that term  is
34        defined in this subsection.
                            -26-               LRB9011301THpk
 1        (4)  On  or  before August 1 of the Budget Year the State
 2    Board of Education shall calculate, for all school  districts
 3    meeting the other requirements of this subsection, the amount
 4    of  the  general State aid adjustment grant, if any, that the
 5    school districts are eligible to receive in the Budget  Year.
 6    The amount of the general State aid adjustment grant shall be
 7    calculated as follows:
 8             (a)  Determine  the  school district's general State
 9        aid grant for the Budget Year as provided  in  accordance
10        with the provisions of subsection (E).
11             (b)  Determine  the school district's adjusted level
12        of general State aid by utilizing in the  calculation  of
13        Available Local Resources an equalized assessed valuation
14        that is the equalized assessed valuation of the Preceding
15        Tax Year multiplied by the Extension Limitation Ratio.
16             (c)  Subtract  the  sum  derived in subparagraph (a)
17        from the sum derived in subparagraph (b).  If the  result
18        is  a  positive  number, that amount shall be the general
19        State aid adjustment grant that the district is  eligible
20        to receive.
21        (5)  The  State  Board  of Education shall in the Current
22    Year, based upon claims filed in the Current Year,  recommend
23    to  the  General  Assembly  an  appropriation  amount for the
24    general State aid adjustment grants to be made in the  Budget
25    Year.
26        (6)  Claims for general State aid adjustment grants shall
27    be  paid  in  a lump sum on or before January 1 of the Budget
28    Year only from appropriations made by  the  General  Assembly
29    expressly  for  claims under this subsection.  No such claims
30    may be paid from amounts appropriated for any  other  purpose
31    provided  for  under  this  Section.   In  the event that the
32    appropriation   for   claims   under   this   subsection   is
33    insufficient to meet all Budget Year  claims  for  a  general
34    State aid adjustment grant, the appropriation available shall
                            -27-               LRB9011301THpk
 1    be  proportionately  prorated by the State Board of Education
 2    amongst all districts filing for and entitled to payments.
 3        (7)  The State Board of Education  shall  promulgate  the
 4    required  claim  forms  and  rules necessary to implement the
 5    provisions of this subsection.
 6    (O)  References.
 7        (1)  References in other laws to the various subdivisions
 8    of Section 18-8 as that Section existed before its repeal and
 9    replacement by this Section 18-8.05 shall be deemed to  refer
10    to  the  corresponding provisions of this Section 18-8.05, to
11    the extent that those references remain applicable.
12        (2)  References in other laws to State  Chapter  1  funds
13    shall  be  deemed  to refer to the supplemental general State
14    aid provided under subsection (H) of this Section.
15    (Source: P.A. 90-548, eff. 7-1-98.)
16        Section 99.  Effective date.  This Act takes effect  July
17    1, 1998.

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