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92_HB1712enr HB1712 Enrolled LRB9201715NTsb 1 AN ACT concerning school funding. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing 5 Section 18-8.05 as follows: 6 (105 ILCS 5/18-8.05) 7 Sec. 18-8.05. Basis for apportionment of general State 8 financial aid and supplemental general State aid to the 9 common schools for the 1998-1999 and subsequent school years. 10 (A) General Provisions. 11 (1) The provisions of this Section apply to the 12 1998-1999 and subsequent school years. The system of general 13 State financial aid provided for in this Section is designed 14 to assure that, through a combination of State financial aid 15 and required local resources, the financial support provided 16 each pupil in Average Daily Attendance equals or exceeds a 17 prescribed per pupil Foundation Level. This formula approach 18 imputes a level of per pupil Available Local Resources and 19 provides for the basis to calculate a per pupil level of 20 general State financial aid that, when added to Available 21 Local Resources, equals or exceeds the Foundation Level. The 22 amount of per pupil general State financial aid for school 23 districts, in general, varies in inverse relation to 24 Available Local Resources. Per pupil amounts are based upon 25 each school district's Average Daily Attendance as that term 26 is defined in this Section. 27 (2) In addition to general State financial aid, school 28 districts with specified levels or concentrations of pupils 29 from low income households are eligible to receive 30 supplemental general State financial aid grants as provided 31 pursuant to subsection (H). The supplemental State aid grants HB1712 Enrolled -2- LRB9201715NTsb 1 provided for school districts under subsection (H) shall be 2 appropriated for distribution to school districts as part of 3 the same line item in which the general State financial aid 4 of school districts is appropriated under this Section. 5 (3) To receive financial assistance under this Section, 6 school districts are required to file claims with the State 7 Board of Education, subject to the following requirements: 8 (a) Any school district which fails for any given 9 school year to maintain school as required by law, or to 10 maintain a recognized school is not eligible to file for 11 such school year any claim upon the Common School Fund. 12 In case of nonrecognition of one or more attendance 13 centers in a school district otherwise operating 14 recognized schools, the claim of the district shall be 15 reduced in the proportion which the Average Daily 16 Attendance in the attendance center or centers bear to 17 the Average Daily Attendance in the school district. A 18 "recognized school" means any public school which meets 19 the standards as established for recognition by the State 20 Board of Education. A school district or attendance 21 center not having recognition status at the end of a 22 school term is entitled to receive State aid payments due 23 upon a legal claim which was filed while it was 24 recognized. 25 (b) School district claims filed under this Section 26 are subject to Sections 18-9, 18-10, and 18-12, except as 27 otherwise provided in this Section. 28 (c) If a school district operates a full year 29 school under Section 10-19.1, the general State aid to 30 the school district shall be determined by the State 31 Board of Education in accordance with this Section as 32 near as may be applicable. 33 (d) (Blank). 34 (4) Except as provided in subsections (H) and (L), the HB1712 Enrolled -3- LRB9201715NTsb 1 board of any district receiving any of the grants provided 2 for in this Section may apply those funds to any fund so 3 received for which that board is authorized to make 4 expenditures by law. 5 School districts are not required to exert a minimum 6 Operating Tax Rate in order to qualify for assistance under 7 this Section. 8 (5) As used in this Section the following terms, when 9 capitalized, shall have the meaning ascribed herein: 10 (a) "Average Daily Attendance": A count of pupil 11 attendance in school, averaged as provided for in 12 subsection (C) and utilized in deriving per pupil 13 financial support levels. 14 (b) "Available Local Resources": A computation of 15 local financial support, calculated on the basis of 16 Average Daily Attendance and derived as provided pursuant 17 to subsection (D). 18 (c) "Corporate Personal Property Replacement 19 Taxes": Funds paid to local school districts pursuant to 20 "An Act in relation to the abolition of ad valorem 21 personal property tax and the replacement of revenues 22 lost thereby, and amending and repealing certain Acts and 23 parts of Acts in connection therewith", certified August 24 14, 1979, as amended (Public Act 81-1st S.S.-1). 25 (d) "Foundation Level": A prescribed level of per 26 pupil financial support as provided for in subsection 27 (B). 28 (e) "Operating Tax Rate": All school district 29 property taxes extended for all purposes, except Bond and 30 Interest, Summer School, Rent, Capital Improvement, and 31 Vocational Education Building purposes. 32 (B) Foundation Level. 33 (1) The Foundation Level is a figure established by the 34 State representing the minimum level of per pupil financial HB1712 Enrolled -4- LRB9201715NTsb 1 support that should be available to provide for the basic 2 education of each pupil in Average Daily Attendance. As set 3 forth in this Section, each school district is assumed to 4 exert a sufficient local taxing effort such that, in 5 combination with the aggregate of general State financial aid 6 provided the district, an aggregate of State and local 7 resources are available to meet the basic education needs of 8 pupils in the district. 9 (2) For the 1998-1999 school year, the Foundation Level 10 of support is $4,225. For the 1999-2000 school year, the 11 Foundation Level of support is $4,325. For the 2000-2001 12 school year, the Foundation Level of support is $4,425. 13 (3) For the 2001-2002 school year and each school year 14 thereafter, the Foundation Level of support is $4,425 or such 15 greater amount as may be established by law by the General 16 Assembly. 17 (C) Average Daily Attendance. 18 (1) For purposes of calculating general State aid 19 pursuant to subsection (E), an Average Daily Attendance 20 figure shall be utilized. The Average Daily Attendance 21 figure for formula calculation purposes shall be the monthly 22 average of the actual number of pupils in attendance of each 23 school district, as further averaged for the best 3 months of 24 pupil attendance for each school district. In compiling the 25 figures for the number of pupils in attendance, school 26 districts and the State Board of Education shall, for 27 purposes of general State aid funding, conform attendance 28 figures to the requirements of subsection (F). 29 (2) The Average Daily Attendance figures utilized in 30 subsection (E) shall be the requisite attendance data for the 31 school year immediately preceding the school year for which 32 general State aid is being calculated. 33 (D) Available Local Resources. HB1712 Enrolled -5- LRB9201715NTsb 1 (1) For purposes of calculating general State aid 2 pursuant to subsection (E), a representation of Available 3 Local Resources per pupil, as that term is defined and 4 determined in this subsection, shall be utilized. Available 5 Local Resources per pupil shall include a calculated dollar 6 amount representing local school district revenues from local 7 property taxes and from Corporate Personal Property 8 Replacement Taxes, expressed on the basis of pupils in 9 Average Daily Attendance. 10 (2) In determining a school district's revenue from 11 local property taxes, the State Board of Education shall 12 utilize the equalized assessed valuation of all taxable 13 property of each school district as of September 30 of the 14 previous year. The equalized assessed valuation utilized 15 shall be obtained and determined as provided in subsection 16 (G). 17 (3) For school districts maintaining grades kindergarten 18 through 12, local property tax revenues per pupil shall be 19 calculated as the product of the applicable equalized 20 assessed valuation for the district multiplied by 3.00%, and 21 divided by the district's Average Daily Attendance figure. 22 For school districts maintaining grades kindergarten through 23 8, local property tax revenues per pupil shall be calculated 24 as the product of the applicable equalized assessed valuation 25 for the district multiplied by 2.30%, and divided by the 26 district's Average Daily Attendance figure. For school 27 districts maintaining grades 9 through 12, local property tax 28 revenues per pupil shall be the applicable equalized assessed 29 valuation of the district multiplied by 1.05%, and divided by 30 the district's Average Daily Attendance figure. 31 (4) The Corporate Personal Property Replacement Taxes 32 paid to each school district during the calendar year 2 years 33 before the calendar year in which a school year begins, 34 divided by the Average Daily Attendance figure for that HB1712 Enrolled -6- LRB9201715NTsb 1 district, shall be added to the local property tax revenues 2 per pupil as derived by the application of the immediately 3 preceding paragraph (3). The sum of these per pupil figures 4 for each school district shall constitute Available Local 5 Resources as that term is utilized in subsection (E) in the 6 calculation of general State aid. 7 (E) Computation of General State Aid. 8 (1) For each school year, the amount of general State 9 aid allotted to a school district shall be computed by the 10 State Board of Education as provided in this subsection. 11 (2) For any school district for which Available Local 12 Resources per pupil is less than the product of 0.93 times 13 the Foundation Level, general State aid for that district 14 shall be calculated as an amount equal to the Foundation 15 Level minus Available Local Resources, multiplied by the 16 Average Daily Attendance of the school district. 17 (3) For any school district for which Available Local 18 Resources per pupil is equal to or greater than the product 19 of 0.93 times the Foundation Level and less than the product 20 of 1.75 times the Foundation Level, the general State aid per 21 pupil shall be a decimal proportion of the Foundation Level 22 derived using a linear algorithm. Under this linear 23 algorithm, the calculated general State aid per pupil shall 24 decline in direct linear fashion from 0.07 times the 25 Foundation Level for a school district with Available Local 26 Resources equal to the product of 0.93 times the Foundation 27 Level, to 0.05 times the Foundation Level for a school 28 district with Available Local Resources equal to the product 29 of 1.75 times the Foundation Level. The allocation of 30 general State aid for school districts subject to this 31 paragraph 3 shall be the calculated general State aid per 32 pupil figure multiplied by the Average Daily Attendance of 33 the school district. 34 (4) For any school district for which Available Local HB1712 Enrolled -7- LRB9201715NTsb 1 Resources per pupil equals or exceeds the product of 1.75 2 times the Foundation Level, the general State aid for the 3 school district shall be calculated as the product of $218 4 multiplied by the Average Daily Attendance of the school 5 district. 6 (5) The amount of general State aid allocated to a 7 school district for the 1999-2000 school year meeting the 8 requirements set forth in paragraph (4) of subsection (G) 9 shall be increased by an amount equal to the general State 10 aid that would have been received by the district for the 11 1998-1999 school year by utilizing the Extension Limitation 12 Equalized Assessed Valuation as calculated in paragraph (4) 13 of subsection (G) less the general State aid allotted for the 14 1998-1999 school year. This amount shall be deemed a one 15 time increase, and shall not affect any future general State 16 aid allocations. 17 (F) Compilation of Average Daily Attendance. 18 (1) Each school district shall, by July 1 of each year, 19 submit to the State Board of Education, on forms prescribed 20 by the State Board of Education, attendance figures for the 21 school year that began in the preceding calendar year. The 22 attendance information so transmitted shall identify the 23 average daily attendance figures for each month of the school 24 year, except that any days of attendance in August shall be 25 added to the month of September and any days of attendance in 26 June shall be added to the month of May. 27 Except as otherwise provided in this Section, days of 28 attendance by pupils shall be counted only for sessions of 29 not less than 5 clock hours of school work per day under 30 direct supervision of: (i) teachers, or (ii) non-teaching 31 personnel or volunteer personnel when engaging in 32 non-teaching duties and supervising in those instances 33 specified in subsection (a) of Section 10-22.34 and paragraph 34 10 of Section 34-18, with pupils of legal school age and in HB1712 Enrolled -8- LRB9201715NTsb 1 kindergarten and grades 1 through 12. 2 Days of attendance by tuition pupils shall be accredited 3 only to the districts that pay the tuition to a recognized 4 school. 5 (2) Days of attendance by pupils of less than 5 clock 6 hours of school shall be subject to the following provisions 7 in the compilation of Average Daily Attendance. 8 (a) Pupils regularly enrolled in a public school 9 for only a part of the school day may be counted on the 10 basis of 1/6 day for every class hour of instruction of 11 40 minutes or more attended pursuant to such enrollment. 12 (b) Days of attendance may be less than 5 clock 13 hours on the opening and closing of the school term, and 14 upon the first day of pupil attendance, if preceded by a 15 day or days utilized as an institute or teachers' 16 workshop. 17 (c) A session of 4 or more clock hours may be 18 counted as a day of attendance upon certification by the 19 regional superintendent, and approved by the State 20 Superintendent of Education to the extent that the 21 district has been forced to use daily multiple sessions. 22 (d) A session of 3 or more clock hours may be 23 counted as a day of attendance (1) when the remainder of 24 the school day or at least 2 hours in the evening of that 25 day is utilized for an in-service training program for 26 teachers, up to a maximum of 5 days per school year of 27 which a maximum of 4 days of such 5 days may be used for 28 parent-teacher conferences, provided a district conducts 29 an in-service training program for teachers which has 30 been approved by the State Superintendent of Education; 31 or, in lieu of 4 such days, 2 full days may be used, in 32 which event each such day may be counted as a day of 33 attendance; and (2) when days in addition to those 34 provided in item (1) are scheduled by a school pursuant HB1712 Enrolled -9- LRB9201715NTsb 1 to its school improvement plan adopted under Article 34 2 or its revised or amended school improvement plan adopted 3 under Article 2, provided that (i) such sessions of 3 or 4 more clock hours are scheduled to occur at regular 5 intervals, (ii) the remainder of the school days in which 6 such sessions occur are utilized for in-service training 7 programs or other staff development activities for 8 teachers, and (iii) a sufficient number of minutes of 9 school work under the direct supervision of teachers are 10 added to the school days between such regularly scheduled 11 sessions to accumulate not less than the number of 12 minutes by which such sessions of 3 or more clock hours 13 fall short of 5 clock hours. Any full days used for the 14 purposes of this paragraph shall not be considered for 15 computing average daily attendance. Days scheduled for 16 in-service training programs, staff development 17 activities, or parent-teacher conferences may be 18 scheduled separately for different grade levels and 19 different attendance centers of the district. 20 (e) A session of not less than one clock hour of 21 teaching hospitalized or homebound pupils on-site or by 22 telephone to the classroom may be counted as 1/2 day of 23 attendance, however these pupils must receive 4 or more 24 clock hours of instruction to be counted for a full day 25 of attendance. 26 (f) A session of at least 4 clock hours may be 27 counted as a day of attendance for first grade pupils, 28 and pupils in full day kindergartens, and a session of 2 29 or more hours may be counted as 1/2 day of attendance by 30 pupils in kindergartens which provide only 1/2 day of 31 attendance. 32 (g) For children with disabilities who are below 33 the age of 6 years and who cannot attend 2 or more clock 34 hours because of their disability or immaturity, a HB1712 Enrolled -10- LRB9201715NTsb 1 session of not less than one clock hour may be counted as 2 1/2 day of attendance; however for such children whose 3 educational needs so require a session of 4 or more clock 4 hours may be counted as a full day of attendance. 5 (h) A recognized kindergarten which provides for 6 only 1/2 day of attendance by each pupil shall not have 7 more than 1/2 day of attendance counted in any one day. 8 However, kindergartens may count 2 1/2 days of attendance 9 in any 5 consecutive school days. When a pupil attends 10 such a kindergarten for 2 half days on any one school 11 day, the pupil shall have the following day as a day 12 absent from school, unless the school district obtains 13 permission in writing from the State Superintendent of 14 Education. Attendance at kindergartens which provide for 15 a full day of attendance by each pupil shall be counted 16 the same as attendance by first grade pupils. Only the 17 first year of attendance in one kindergarten shall be 18 counted, except in case of children who entered the 19 kindergarten in their fifth year whose educational 20 development requires a second year of kindergarten as 21 determined under the rules and regulations of the State 22 Board of Education. 23 (G) Equalized Assessed Valuation Data. 24 (1) For purposes of the calculation of Available Local 25 Resources required pursuant to subsection (D), the State 26 Board of Education shall secure from the Department of 27 Revenue the value as equalized or assessed by the Department 28 of Revenue of all taxable property of every school district, 29 together with (i) the applicable tax rate used in extending 30 taxes for the funds of the district as of September 30 of the 31 previous year and (ii) the limiting rate for all school 32 districts subject to property tax extension limitations as 33 imposed under the Property Tax Extension Limitation Law. 34 This equalized assessed valuation, as adjusted further by HB1712 Enrolled -11- LRB9201715NTsb 1 the requirements of this subsection, shall be utilized in the 2 calculation of Available Local Resources. 3 (2) The equalized assessed valuation in paragraph (1) 4 shall be adjusted, as applicable, in the following manner: 5 (a) For the purposes of calculating State aid under 6 this Section, with respect to any part of a school 7 district within a redevelopment project area in respect 8 to which a municipality has adopted tax increment 9 allocation financing pursuant to the Tax Increment 10 Allocation Redevelopment Act, Sections 11-74.4-1 through 11 11-74.4-11 of the Illinois Municipal Code or the 12 Industrial Jobs Recovery Law, Sections 11-74.6-1 through 13 11-74.6-50 of the Illinois Municipal Code, no part of the 14 current equalized assessed valuation of real property 15 located in any such project area which is attributable to 16 an increase above the total initial equalized assessed 17 valuation of such property shall be used as part of the 18 equalized assessed valuation of the district, until such 19 time as all redevelopment project costs have been paid, 20 as provided in Section 11-74.4-8 of the Tax Increment 21 Allocation Redevelopment Act or in Section 11-74.6-35 of 22 the Industrial Jobs Recovery Law. For the purpose of the 23 equalized assessed valuation of the district, the total 24 initial equalized assessed valuation or the current 25 equalized assessed valuation, whichever is lower, shall 26 be used until such time as all redevelopment project 27 costs have been paid. 28 (b) The real property equalized assessed valuation 29 for a school district shall be adjusted by subtracting 30 from the real property value as equalized or assessed by 31 the Department of Revenue for the district an amount 32 computed by dividing the amount of any abatement of taxes 33 under Section 18-170 of the Property Tax Code by 3.00% 34 for a district maintaining grades kindergarten through HB1712 Enrolled -12- LRB9201715NTsb 1 12, by 2.30% for a district maintaining grades 2 kindergarten through 8, or by 1.05% for a district 3 maintaining grades 9 through 12 and adjusted by an amount 4 computed by dividing the amount of any abatement of taxes 5 under subsection (a) of Section 18-165 of the Property 6 Tax Code by the same percentage rates for district type 7 as specified in this subparagraph (b). 8 (3) For the 1999-2000 school year and each school year 9 thereafter, if a school district meets all of the criteria of 10 this subsection (G)(3), the school district's Available Local 11 Resources shall be calculated under subsection (D) using the 12 district's Extension Limitation Equalized Assessed Valuation 13 as calculated under this subsection (G)(3). 14 For purposes of this subsection (G)(3) the following 15 terms shall have the following meanings: 16 "Budget Year": The school year for which general 17 State aid is calculated and awarded under subsection (E). 18 "Base Tax Year": The property tax levy year used to 19 calculate the Budget Year allocation of general State 20 aid. 21 "Preceding Tax Year": The property tax levy year 22 immediately preceding the Base Tax Year. 23 "Base Tax Year's Tax Extension": The product of the 24 equalized assessed valuation utilized by the County Clerk 25 in the Base Tax Year multiplied by the limiting rate as 26 calculated by the County Clerk and defined in the 27 Property Tax Extension Limitation Law. 28 "Preceding Tax Year's Tax Extension": The product of 29 the equalized assessed valuation utilized by the County 30 Clerk in the Preceding Tax Year multiplied by the 31 Operating Tax Rate as defined in subsection (A). 32 "Extension Limitation Ratio": A numerical ratio, 33 certified by the County Clerk, in which the numerator is 34 the Base Tax Year's Tax Extension and the denominator is HB1712 Enrolled -13- LRB9201715NTsb 1 the Preceding Tax Year's Tax Extension. 2 "Operating Tax Rate": The operating tax rate as 3 defined in subsection (A). 4 If a school district is subject to property tax extension 5 limitations as imposed under the Property Tax Extension 6 Limitation Law,and if the Available Local Resources of that7school district as calculated pursuant to subsection (D)8using the Base Tax Year are less than the product of 1.759times the Foundation Level for the Budget Year,the State 10 Board of Education shall calculate the Extension Limitation 11 Equalized Assessed Valuation of that district. For the 12 1999-2000 school year, the Extension Limitation Equalized 13 Assessed Valuation of a school district as calculated by the 14 State Board of Education shall be equal to the product of the 15 district's 1996 Equalized Assessed Valuation and the 16 district's Extension Limitation Ratio. For the 2000-2001 17 school year and each school year thereafter, the Extension 18 Limitation Equalized Assessed Valuation of a school district 19 as calculated by the State Board of Education shall be equal 20 to the product of the Equalized Assessed Valuation last used 21 in the calculation of general State aidlast calculated22Extension Limitation Equalized Assessed Valuationand the 23 district's Extension Limitation Ratio. If the Extension 24 Limitation Equalized Assessed Valuation of a school district 25 as calculated under this subsection (G)(3) is less than the 26 district's equalized assessed valuation as calculated 27 pursuant to subsections (G)(1) and (G)(2), then for purposes 28 of calculating the district's general State aid for the 29 Budget Year pursuant to subsection (E), that Extension 30 Limitation Equalized Assessed Valuation shall be utilized to 31 calculate the district's Available Local Resources under 32 subsection (D). 33 (4) For the purposes of calculating general State aid 34 for the 1999-2000 school year only, if a school district HB1712 Enrolled -14- LRB9201715NTsb 1 experienced a triennial reassessment on the equalized 2 assessed valuation used in calculating its general State 3 financial aid apportionment for the 1998-1999 school year, 4 the State Board of Education shall calculate the Extension 5 Limitation Equalized Assessed Valuation that would have been 6 used to calculate the district's 1998-1999 general State aid. 7 This amount shall equal the product of the equalized assessed 8 valuation used to calculate general State aid for the 9 1997-1998 school year and the district's Extension Limitation 10 Ratio. If the Extension Limitation Equalized Assessed 11 Valuation of the school district as calculated under this 12 paragraph (4) is less than the district's equalized assessed 13 valuation utilized in calculating the district's 1998-1999 14 general State aid allocation, then for purposes of 15 calculating the district's general State aid pursuant to 16 paragraph (5) of subsection (E), that Extension Limitation 17 Equalized Assessed Valuation shall be utilized to calculate 18 the district's Available Local Resources. 19 (5) For school districts having a majority of their 20 equalized assessed valuation in any county except Cook, 21 DuPage, Kane, Lake, McHenry, or Will, if the amount of 22 general State aid allocated to the school district for the 23 1999-2000 school year under the provisions of subsection (E), 24 (H), and (J) of this Section is less than the amount of 25 general State aid allocated to the district for the 1998-1999 26 school year under these subsections, then the general State 27 aid of the district for the 1999-2000 school year only shall 28 be increased by the difference between these amounts. The 29 total payments made under this paragraph (5) shall not exceed 30 $14,000,000. Claims shall be prorated if they exceed 31 $14,000,000. 32 (H) Supplemental General State Aid. 33 (1) In addition to the general State aid a school 34 district is allotted pursuant to subsection (E), qualifying HB1712 Enrolled -15- LRB9201715NTsb 1 school districts shall receive a grant, paid in conjunction 2 with a district's payments of general State aid, for 3 supplemental general State aid based upon the concentration 4 level of children from low-income households within the 5 school district. Supplemental State aid grants provided for 6 school districts under this subsection shall be appropriated 7 for distribution to school districts as part of the same line 8 item in which the general State financial aid of school 9 districts is appropriated under this Section. For purposes of 10 this subsection, the term "Low-Income Concentration Level" 11 shall be the low-income eligible pupil count from the most 12 recently available federal census divided by the Average 13 Daily Attendance of the school district. If, however, the 14 percentage decrease from the 2 most recent federal censuses 15 in the low-income eligible pupil count of a high school 16 district with fewer than 400 students exceeds by 75% or more 17 the percentage change in the total low-income eligible pupil 18 count of contiguous elementary school districts, whose 19 boundaries are coterminous with the high school district, the 20 high school district's low-income eligible pupil count from 21 the earlier federal census shall be the number used as the 22 low-income eligible pupil count for the high school district, 23 for purposes of this subsection (H). 24 (2) Supplemental general State aid pursuant to this 25 subsection shall be provided as follows: 26 (a) For any school district with a Low Income 27 Concentration Level of at least 20% and less than 35%, 28 the grant for any school year shall be $800 multiplied by 29 the low income eligible pupil count. 30 (b) For any school district with a Low Income 31 Concentration Level of at least 35% and less than 50%, 32 the grant for the 1998-1999 school year shall be $1,100 33 multiplied by the low income eligible pupil count. 34 (c) For any school district with a Low Income HB1712 Enrolled -16- LRB9201715NTsb 1 Concentration Level of at least 50% and less than 60%, 2 the grant for the 1998-99 school year shall be $1,500 3 multiplied by the low income eligible pupil count. 4 (d) For any school district with a Low Income 5 Concentration Level of 60% or more, the grant for the 6 1998-99 school year shall be $1,900 multiplied by the low 7 income eligible pupil count. 8 (e) For the 1999-2000 school year, the per pupil 9 amount specified in subparagraphs (b), (c), and (d) 10 immediately above shall be increased to $1,243, $1,600, 11 and $2,000, respectively. 12 (f) For the 2000-2001 school year, the per pupil 13 amounts specified in subparagraphs (b), (c), and (d) 14 immediately above shall be $1,273, $1,640, and $2,050, 15 respectively. 16 (3) School districts with an Average Daily Attendance of 17 more than 1,000 and less than 50,000 that qualify for 18 supplemental general State aid pursuant to this subsection 19 shall submit a plan to the State Board of Education prior to 20 October 30 of each year for the use of the funds resulting 21 from this grant of supplemental general State aid for the 22 improvement of instruction in which priority is given to 23 meeting the education needs of disadvantaged children. Such 24 plan shall be submitted in accordance with rules and 25 regulations promulgated by the State Board of Education. 26 (4) School districts with an Average Daily Attendance of 27 50,000 or more that qualify for supplemental general State 28 aid pursuant to this subsection shall be required to 29 distribute from funds available pursuant to this Section, no 30 less than $261,000,000 in accordance with the following 31 requirements: 32 (a) The required amounts shall be distributed to 33 the attendance centers within the district in proportion 34 to the number of pupils enrolled at each attendance HB1712 Enrolled -17- LRB9201715NTsb 1 center who are eligible to receive free or reduced-price 2 lunches or breakfasts under the federal Child Nutrition 3 Act of 1966 and under the National School Lunch Act 4 during the immediately preceding school year. 5 (b) The distribution of these portions of 6 supplemental and general State aid among attendance 7 centers according to these requirements shall not be 8 compensated for or contravened by adjustments of the 9 total of other funds appropriated to any attendance 10 centers, and the Board of Education shall utilize funding 11 from one or several sources in order to fully implement 12 this provision annually prior to the opening of school. 13 (c) Each attendance center shall be provided by the 14 school district a distribution of noncategorical funds 15 and other categorical funds to which an attendance center 16 is entitled under law in order that the general State aid 17 and supplemental general State aid provided by 18 application of this subsection supplements rather than 19 supplants the noncategorical funds and other categorical 20 funds provided by the school district to the attendance 21 centers. 22 (d) Any funds made available under this subsection 23 that by reason of the provisions of this subsection are 24 not required to be allocated and provided to attendance 25 centers may be used and appropriated by the board of the 26 district for any lawful school purpose. 27 (e) Funds received by an attendance center pursuant 28 to this subsection shall be used by the attendance center 29 at the discretion of the principal and local school 30 council for programs to improve educational opportunities 31 at qualifying schools through the following programs and 32 services: early childhood education, reduced class size 33 or improved adult to student classroom ratio, enrichment 34 programs, remedial assistance, attendance improvement, HB1712 Enrolled -18- LRB9201715NTsb 1 and other educationally beneficial expenditures which 2 supplement the regular and basic programs as determined 3 by the State Board of Education. Funds provided shall 4 not be expended for any political or lobbying purposes as 5 defined by board rule. 6 (f) Each district subject to the provisions of this 7 subdivision (H)(4) shall submit an acceptable plan to 8 meet the educational needs of disadvantaged children, in 9 compliance with the requirements of this paragraph, to 10 the State Board of Education prior to July 15 of each 11 year. This plan shall be consistent with the decisions of 12 local school councils concerning the school expenditure 13 plans developed in accordance with part 4 of Section 14 34-2.3. The State Board shall approve or reject the plan 15 within 60 days after its submission. If the plan is 16 rejected, the district shall give written notice of 17 intent to modify the plan within 15 days of the 18 notification of rejection and then submit a modified plan 19 within 30 days after the date of the written notice of 20 intent to modify. Districts may amend approved plans 21 pursuant to rules promulgated by the State Board of 22 Education. 23 Upon notification by the State Board of Education 24 that the district has not submitted a plan prior to July 25 15 or a modified plan within the time period specified 26 herein, the State aid funds affected by that plan or 27 modified plan shall be withheld by the State Board of 28 Education until a plan or modified plan is submitted. 29 If the district fails to distribute State aid to 30 attendance centers in accordance with an approved plan, 31 the plan for the following year shall allocate funds, in 32 addition to the funds otherwise required by this 33 subsection, to those attendance centers which were 34 underfunded during the previous year in amounts equal to HB1712 Enrolled -19- LRB9201715NTsb 1 such underfunding. 2 For purposes of determining compliance with this 3 subsection in relation to the requirements of attendance 4 center funding, each district subject to the provisions 5 of this subsection shall submit as a separate document by 6 December 1 of each year a report of expenditure data for 7 the prior year in addition to any modification of its 8 current plan. If it is determined that there has been a 9 failure to comply with the expenditure provisions of this 10 subsection regarding contravention or supplanting, the 11 State Superintendent of Education shall, within 60 days 12 of receipt of the report, notify the district and any 13 affected local school council. The district shall within 14 45 days of receipt of that notification inform the State 15 Superintendent of Education of the remedial or corrective 16 action to be taken, whether by amendment of the current 17 plan, if feasible, or by adjustment in the plan for the 18 following year. Failure to provide the expenditure 19 report or the notification of remedial or corrective 20 action in a timely manner shall result in a withholding 21 of the affected funds. 22 The State Board of Education shall promulgate rules 23 and regulations to implement the provisions of this 24 subsection. No funds shall be released under this 25 subdivision (H)(4) to any district that has not submitted 26 a plan that has been approved by the State Board of 27 Education. 28 (I) General State Aid for Newly Configured School Districts. 29 (1) For a new school district formed by combining 30 property included totally within 2 or more previously 31 existing school districts, for its first year of existence 32 the general State aid and supplemental general State aid 33 calculated under this Section shall be computed for the new 34 district and for the previously existing districts for which HB1712 Enrolled -20- LRB9201715NTsb 1 property is totally included within the new district. If the 2 computation on the basis of the previously existing districts 3 is greater, a supplementary payment equal to the difference 4 shall be made for the first 4 years of existence of the new 5 district. 6 (2) For a school district which annexes all of the 7 territory of one or more entire other school districts, for 8 the first year during which the change of boundaries 9 attributable to such annexation becomes effective for all 10 purposes as determined under Section 7-9 or 7A-8, the general 11 State aid and supplemental general State aid calculated under 12 this Section shall be computed for the annexing district as 13 constituted after the annexation and for the annexing and 14 each annexed district as constituted prior to the annexation; 15 and if the computation on the basis of the annexing and 16 annexed districts as constituted prior to the annexation is 17 greater, a supplementary payment equal to the difference 18 shall be made for the first 4 years of existence of the 19 annexing school district as constituted upon such annexation. 20 (3) For 2 or more school districts which annex all of 21 the territory of one or more entire other school districts, 22 and for 2 or more community unit districts which result upon 23 the division (pursuant to petition under Section 11A-2) of 24 one or more other unit school districts into 2 or more parts 25 and which together include all of the parts into which such 26 other unit school district or districts are so divided, for 27 the first year during which the change of boundaries 28 attributable to such annexation or division becomes effective 29 for all purposes as determined under Section 7-9 or 11A-10, 30 as the case may be, the general State aid and supplemental 31 general State aid calculated under this Section shall be 32 computed for each annexing or resulting district as 33 constituted after the annexation or division and for each 34 annexing and annexed district, or for each resulting and HB1712 Enrolled -21- LRB9201715NTsb 1 divided district, as constituted prior to the annexation or 2 division; and if the aggregate of the general State aid and 3 supplemental general State aid as so computed for the 4 annexing or resulting districts as constituted after the 5 annexation or division is less than the aggregate of the 6 general State aid and supplemental general State aid as so 7 computed for the annexing and annexed districts, or for the 8 resulting and divided districts, as constituted prior to the 9 annexation or division, then a supplementary payment equal to 10 the difference shall be made and allocated between or among 11 the annexing or resulting districts, as constituted upon such 12 annexation or division, for the first 4 years of their 13 existence. The total difference payment shall be allocated 14 between or among the annexing or resulting districts in the 15 same ratio as the pupil enrollment from that portion of the 16 annexed or divided district or districts which is annexed to 17 or included in each such annexing or resulting district bears 18 to the total pupil enrollment from the entire annexed or 19 divided district or districts, as such pupil enrollment is 20 determined for the school year last ending prior to the date 21 when the change of boundaries attributable to the annexation 22 or division becomes effective for all purposes. The amount 23 of the total difference payment and the amount thereof to be 24 allocated to the annexing or resulting districts shall be 25 computed by the State Board of Education on the basis of 26 pupil enrollment and other data which shall be certified to 27 the State Board of Education, on forms which it shall provide 28 for that purpose, by the regional superintendent of schools 29 for each educational service region in which the annexing and 30 annexed districts, or resulting and divided districts are 31 located. 32 (3.5) Claims for financial assistance under this 33 subsection (I) shall not be recomputed except as expressly 34 provided under this Section. HB1712 Enrolled -22- LRB9201715NTsb 1 (4) Any supplementary payment made under this subsection 2 (I) shall be treated as separate from all other payments made 3 pursuant to this Section. 4 (J) Supplementary Grants in Aid. 5 (1) Notwithstanding any other provisions of this 6 Section, the amount of the aggregate general State aid in 7 combination with supplemental general State aid under this 8 Section for which each school district is eligible shall be 9 no less than the amount of the aggregate general State aid 10 entitlement that was received by the district under Section 11 18-8 (exclusive of amounts received under subsections 5(p) 12 and 5(p-5) of that Section) for the 1997-98 school year, 13 pursuant to the provisions of that Section as it was then in 14 effect. If a school district qualifies to receive a 15 supplementary payment made under this subsection (J), the 16 amount of the aggregate general State aid in combination with 17 supplemental general State aid under this Section which that 18 district is eligible to receive for each school year shall be 19 no less than the amount of the aggregate general State aid 20 entitlement that was received by the district under Section 21 18-8 (exclusive of amounts received under subsections 5(p) 22 and 5(p-5) of that Section) for the 1997-1998 school year, 23 pursuant to the provisions of that Section as it was then in 24 effect. 25 (2) If, as provided in paragraph (1) of this subsection 26 (J), a school district is to receive aggregate general State 27 aid in combination with supplemental general State aid under 28 this Section for the 1998-99 school year and any subsequent 29 school year that in any such school year is less than the 30 amount of the aggregate general State aid entitlement that 31 the district received for the 1997-98 school year, the school 32 district shall also receive, from a separate appropriation 33 made for purposes of this subsection (J), a supplementary 34 payment that is equal to the amount of the difference in the HB1712 Enrolled -23- LRB9201715NTsb 1 aggregate State aid figures as described in paragraph (1). 2 (3) (Blank). 3 (K) Grants to Laboratory and Alternative Schools. 4 In calculating the amount to be paid to the governing 5 board of a public university that operates a laboratory 6 school under this Section or to any alternative school that 7 is operated by a regional superintendent of schools, the 8 State Board of Education shall require by rule such reporting 9 requirements as it deems necessary. 10 As used in this Section, "laboratory school" means a 11 public school which is created and operated by a public 12 university and approved by the State Board of Education. The 13 governing board of a public university which receives funds 14 from the State Board under this subsection (K) may not 15 increase the number of students enrolled in its laboratory 16 school from a single district, if that district is already 17 sending 50 or more students, except under a mutual agreement 18 between the school board of a student's district of residence 19 and the university which operates the laboratory school. A 20 laboratory school may not have more than 1,000 students, 21 excluding students with disabilities in a special education 22 program. 23 As used in this Section, "alternative school" means a 24 public school which is created and operated by a Regional 25 Superintendent of Schools and approved by the State Board of 26 Education. Such alternative schools may offer courses of 27 instruction for which credit is given in regular school 28 programs, courses to prepare students for the high school 29 equivalency testing program or vocational and occupational 30 training. A regional superintendent of schools may contract 31 with a school district or a public community college district 32 to operate an alternative school. An alternative school 33 serving more than one educational service region may be 34 established by the regional superintendents of schools of the HB1712 Enrolled -24- LRB9201715NTsb 1 affected educational service regions. An alternative school 2 serving more than one educational service region may be 3 operated under such terms as the regional superintendents of 4 schools of those educational service regions may agree. 5 Each laboratory and alternative school shall file, on 6 forms provided by the State Superintendent of Education, an 7 annual State aid claim which states the Average Daily 8 Attendance of the school's students by month. The best 3 9 months' Average Daily Attendance shall be computed for each 10 school. The general State aid entitlement shall be computed 11 by multiplying the applicable Average Daily Attendance by the 12 Foundation Level as determined under this Section. 13 (L) Payments, Additional Grants in Aid and Other 14 Requirements. 15 (1) For a school district operating under the financial 16 supervision of an Authority created under Article 34A, the 17 general State aid otherwise payable to that district under 18 this Section, but not the supplemental general State aid, 19 shall be reduced by an amount equal to the budget for the 20 operations of the Authority as certified by the Authority to 21 the State Board of Education, and an amount equal to such 22 reduction shall be paid to the Authority created for such 23 district for its operating expenses in the manner provided in 24 Section 18-11. The remainder of general State school aid for 25 any such district shall be paid in accordance with Article 26 34A when that Article provides for a disposition other than 27 that provided by this Article. 28 (2) (Blank). 29 (3) Summer school. Summer school payments shall be made 30 as provided in Section 18-4.3. 31 (M) Education Funding Advisory Board. 32 The Education Funding Advisory Board, hereinafter in this 33 subsection (M) referred to as the "Board", is hereby created. HB1712 Enrolled -25- LRB9201715NTsb 1 The Board shall consist of 5 members who are appointed by the 2 Governor, by and with the advice and consent of the Senate. 3 The members appointed shall include representatives of 4 education, business, and the general public. One of the 5 members so appointed shall be designated by the Governor at 6 the time the appointment is made as the chairperson of the 7 Board. The initial members of the Board may be appointed any 8 time after the effective date of this amendatory Act of 1997. 9 The regular term of each member of the Board shall be for 4 10 years from the third Monday of January of the year in which 11 the term of the member's appointment is to commence, except 12 that of the 5 initial members appointed to serve on the 13 Board, the member who is appointed as the chairperson shall 14 serve for a term that commences on the date of his or her 15 appointment and expires on the third Monday of January, 2002, 16 and the remaining 4 members, by lots drawn at the first 17 meeting of the Board that is held after all 5 members are 18 appointed, shall determine 2 of their number to serve for 19 terms that commence on the date of their respective 20 appointments and expire on the third Monday of January, 2001, 21 and 2 of their number to serve for terms that commence on the 22 date of their respective appointments and expire on the third 23 Monday of January, 2000. All members appointed to serve on 24 the Board shall serve until their respective successors are 25 appointed and confirmed. Vacancies shall be filled in the 26 same manner as original appointments. If a vacancy in 27 membership occurs at a time when the Senate is not in 28 session, the Governor shall make a temporary appointment 29 until the next meeting of the Senate, when he or she shall 30 appoint, by and with the advice and consent of the Senate, a 31 person to fill that membership for the unexpired term. If 32 the Senate is not in session when the initial appointments 33 are made, those appointments shall be made as in the case of 34 vacancies. HB1712 Enrolled -26- LRB9201715NTsb 1 The Education Funding Advisory Board shall be deemed 2 established, and the initial members appointed by the 3 Governor to serve as members of the Board shall take office, 4 on the date that the Governor makes his or her appointment of 5 the fifth initial member of the Board, whether those initial 6 members are then serving pursuant to appointment and 7 confirmation or pursuant to temporary appointments that are 8 made by the Governor as in the case of vacancies. 9 The State Board of Education shall provide such staff 10 assistance to the Education Funding Advisory Board as is 11 reasonably required for the proper performance by the Board 12 of its responsibilities. 13 For school years after the 2000-2001 school year, the 14 Education Funding Advisory Board, in consultation with the 15 State Board of Education, shall make recommendations as 16 provided in this subsection (M) to the General Assembly for 17 the foundation level under subdivision (B)(3) of this Section 18 and for the supplemental general State aid grant level under 19 subsection (H) of this Section for districts with high 20 concentrations of children from poverty. The recommended 21 foundation level shall be determined based on a methodology 22 which incorporates the basic education expenditures of 23 low-spending schools exhibiting high academic performance. 24 The Education Funding Advisory Board shall make such 25 recommendations to the General Assembly on January 1 of odd 26 numbered years, beginning January 1, 2001. 27 (N) (Blank). 28 (O) References. 29 (1) References in other laws to the various subdivisions 30 of Section 18-8 as that Section existed before its repeal and 31 replacement by this Section 18-8.05 shall be deemed to refer 32 to the corresponding provisions of this Section 18-8.05, to 33 the extent that those references remain applicable. HB1712 Enrolled -27- LRB9201715NTsb 1 (2) References in other laws to State Chapter 1 funds 2 shall be deemed to refer to the supplemental general State 3 aid provided under subsection (H) of this Section. 4 (Source: P.A. 90-548, eff. 7-1-98; incorporates 90-566; 5 90-653, eff. 7-29-98; 90-654, eff. 7-29-98; 90-655, eff. 6 7-30-98; 90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24, 7 eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99; 91-111, 8 eff. 7-14-99; 91-357, eff. 7-29-99; 91-533, eff. 8-13-99; 9 revised 8-27-99.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.