State of Illinois
92nd General Assembly
Legislation

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92_HB2838

 
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 1        AN ACT in relation to education.

 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  ensure  assure  that,  through  a  combination  of  State
15    financial  aid  and  required  local resources, the financial
16    support provided  each  pupil  in  Average  Daily  Attendance
17    equals  or  exceeds  a prescribed per pupil Foundation Level.
18    This formula approach imputes a level of per pupil  Available
19    Local Resources and provides for the basis to calculate a per
20    pupil  level  of general State financial aid that, when added
21    to  Available  Local  Resources,  equals   or   exceeds   the
22    Foundation  Level.   The  amount  of  per pupil general State
23    financial aid for school districts,  in  general,  varies  in
24    inverse  relation  to  Available  Local Resources.  Per pupil
25    amounts are based upon each school district's  Average  Daily
26    Attendance as that term 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
 
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 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
 
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 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
 
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 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.
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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 that
 7    school district as  calculated  pursuant  to  subsection  (D)
 8    using  the  Base  Tax  Year are less than the product of 1.75
 9    times 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 last  calculated  Extension  Limitation
21    Equalized  Assessed  Valuation  and  the district's Extension
22    Limitation  Ratio.  If  the  Extension  Limitation  Equalized
23    Assessed Valuation of a school district as  calculated  under
24    this  subsection (G)(3) is less than the district's equalized
25    assessed valuation  as  calculated  pursuant  to  subsections
26    (G)(1)  and  (G)(2),  then  for  purposes  of calculating the
27    district's general State aid for the Budget Year pursuant  to
28    subsection  (E), that Extension Limitation Equalized Assessed
29    Valuation shall  be  utilized  to  calculate  the  district's
30    Available Local Resources under subsection (D).
31        (4)  For  the  purposes  of calculating general State aid
32    for the 1999-2000 school year  only,  if  a  school  district
33    experienced   a   triennial  reassessment  on  the  equalized
34    assessed valuation used  in  calculating  its  general  State
 
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 1    financial  aid  apportionment  for the 1998-1999 school year,
 2    the State Board of Education shall  calculate  the  Extension
 3    Limitation  Equalized Assessed Valuation that would have been
 4    used to calculate the district's 1998-1999 general State aid.
 5    This amount shall equal the product of the equalized assessed
 6    valuation  used  to  calculate  general  State  aid  for  the
 7    1997-1998 school year and the district's Extension Limitation
 8    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
 9    Valuation  of  the  school  district as calculated under this
10    paragraph (4) is less than the district's equalized  assessed
11    valuation  utilized  in  calculating the district's 1998-1999
12    general  State  aid  allocation,   then   for   purposes   of
13    calculating  the  district's  general  State  aid pursuant to
14    paragraph (5) of subsection (E),  that  Extension  Limitation
15    Equalized  Assessed  Valuation shall be utilized to calculate
16    the district's Available Local Resources.
17        (5)  For school districts  having  a  majority  of  their
18    equalized  assessed  valuation  in  any  county  except Cook,
19    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
20    general  State  aid  allocated to the school district for the
21    1999-2000 school year under the provisions of subsection (E),
22    (H), and (J) of this Section  is  less  than  the  amount  of
23    general State aid allocated to the district for the 1998-1999
24    school  year  under these subsections, then the general State
25    aid of the district for the 1999-2000 school year only  shall
26    be  increased  by  the difference between these amounts.  The
27    total payments made under this paragraph (5) shall not exceed
28    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
29    $14,000,000.

30    (H)  Supplemental General State Aid.
31        (1)  In  addition  to  the  general  State  aid  a school
32    district is allotted pursuant to subsection  (E),  qualifying
33    school  districts  shall receive a grant, paid in conjunction
34    with  a  district's  payments  of  general  State  aid,   for
 
                            -15-               LRB9202452NTsb
 1    supplemental  general  State aid based upon the concentration
 2    level of  children  from  low-income  households  within  the
 3    school  district.  Supplemental State aid grants provided for
 4    school districts under this subsection shall be  appropriated
 5    for distribution to school districts as part of the same line
 6    item  in  which  the  general  State  financial aid of school
 7    districts is appropriated under this Section. For purposes of
 8    this subsection, the term  "Low-Income  Concentration  Level"
 9    shall  be  the  low-income eligible pupil count from the most
10    recently available federal  census  divided  by  the  Average
11    Daily  Attendance  of  the  school district. If, however, the
12    percentage decrease from the 2 most recent  federal  censuses
13    in  the  low-income  eligible  pupil  count  of a high school
14    district with fewer than 400 students exceeds by 75% or  more
15    the  percentage change in the total low-income eligible pupil
16    count  of  contiguous  elementary  school  districts,   whose
17    boundaries are coterminous with the high school district, the
18    high  school  district's low-income eligible pupil count from
19    the earlier federal census shall be the number  used  as  the
20    low-income eligible pupil count for the high school district,
21    for purposes of this subsection (H).
22        (2)  Supplemental  general  State  aid  pursuant  to this
23    subsection shall be provided as follows:
24             (a)  For any  school  district  with  a  Low  Income
25        Concentration  Level  of  at least 20% and less than 35%,
26        the grant for any school year shall be $800 multiplied by
27        the low income eligible pupil count.
28             (b)  For any  school  district  with  a  Low  Income
29        Concentration  Level  of  at least 35% and less than 50%,
30        the grant for the 1998-1999 school year shall  be  $1,100
31        multiplied by the low income eligible pupil count.
32             (c)  For  any  school  district  with  a  Low Income
33        Concentration Level of at least 50% and  less  than  60%,
34        the  grant  for  the  1998-99 school year shall be $1,500
 
                            -16-               LRB9202452NTsb
 1        multiplied by the low income eligible pupil count.
 2             (d)  For any  school  district  with  a  Low  Income
 3        Concentration  Level  of  60%  or more, the grant for the
 4        1998-99 school year shall be $1,900 multiplied by the low
 5        income eligible pupil count.
 6             (e)  For the 1999-2000 school year,  the  per  pupil
 7        amount  specified  in  subparagraphs  (b),  (c),  and (d)
 8        immediately above shall be increased to  $1,243,  $1,600,
 9        and $2,000, respectively.
10             (f)  For  the  2000-2001  school year, the per pupil
11        amounts specified in  subparagraphs  (b),  (c),  and  (d)
12        immediately  above  shall  be $1,273, $1,640, and $2,050,
13        respectively.
14        (3)  School districts with an Average Daily Attendance of
15    more than  1,000  and  less  than  50,000  that  qualify  for
16    supplemental  general  State  aid pursuant to this subsection
17    shall submit a plan to the State Board of Education prior  to
18    October  30  of  each year for the use of the funds resulting
19    from this grant of supplemental general  State  aid  for  the
20    improvement  of  instruction  in  which  priority is given to
21    meeting the education needs of disadvantaged children.   Such
22    plan   shall  be  submitted  in  accordance  with  rules  and
23    regulations promulgated by the State Board of Education.
24        (4)  School districts with an Average Daily Attendance of
25    50,000 or more that qualify for  supplemental  general  State
26    aid   pursuant  to  this  subsection  shall  be  required  to
27    distribute from funds available pursuant to this Section,  no
28    less  than  $261,000,000  in  accordance  with  the following
29    requirements:
30             (a)  The required amounts shall  be  distributed  to
31        the  attendance centers within the district in proportion
32        to the number  of  pupils  enrolled  at  each  attendance
33        center  who are eligible to receive free or reduced-price
34        lunches or breakfasts under the federal  Child  Nutrition
 
                            -17-               LRB9202452NTsb
 1        Act  of  1966  and  under  the  National School Lunch Act
 2        during the immediately preceding school year.
 3             (b)  The   distribution   of   these   portions   of
 4        supplemental  and  general  State  aid  among  attendance
 5        centers according to  these  requirements  shall  not  be
 6        compensated  for  or  contravened  by  adjustments of the
 7        total of  other  funds  appropriated  to  any  attendance
 8        centers, and the Board of Education shall utilize funding
 9        from  one  or several sources in order to fully implement
10        this provision annually prior to the opening of school.
11             (c)  Each attendance center shall be provided by the
12        school district a distribution  of  noncategorical  funds
13        and other categorical funds to which an attendance center
14        is entitled under law in order that the general State aid
15        and   supplemental   general   State   aid   provided  by
16        application of this subsection  supplements  rather  than
17        supplants  the noncategorical funds and other categorical
18        funds provided by the school district to  the  attendance
19        centers.
20             (d)  Any  funds made available under this subsection
21        that by reason of the provisions of this  subsection  are
22        not  required  to be allocated and provided to attendance
23        centers may be used and appropriated by the board of  the
24        district for any lawful school purpose.
25             (e)  Funds received by an attendance center pursuant
26        to this subsection shall be used by the attendance center
27        at  the  discretion  of  the  principal  and local school
28        council for programs to improve educational opportunities
29        at qualifying schools through the following programs  and
30        services:  early  childhood education, reduced class size
31        or improved adult to student classroom ratio,  enrichment
32        programs,  remedial  assistance,  attendance improvement,
33        and other  educationally  beneficial  expenditures  which
34        supplement  the  regular and basic programs as determined
 
                            -18-               LRB9202452NTsb
 1        by the State Board of Education.   Funds  provided  shall
 2        not be expended for any political or lobbying purposes as
 3        defined by board rule.
 4             (f)  Each district subject to the provisions of this
 5        subdivision  (H)(4)  shall  submit  an acceptable plan to
 6        meet the educational needs of disadvantaged children,  in
 7        compliance  with  the  requirements of this paragraph, to
 8        the State Board of Education prior to  July  15  of  each
 9        year. This plan shall be consistent with the decisions of
10        local  school  councils concerning the school expenditure
11        plans developed in accordance  with  part  4  of  Section
12        34-2.3.  The State Board shall approve or reject the plan
13        within  60  days  after  its  submission.  If the plan is
14        rejected, the  district  shall  give  written  notice  of
15        intent   to  modify  the  plan  within  15  days  of  the
16        notification of rejection and then submit a modified plan
17        within 30 days after the date of the  written  notice  of
18        intent  to  modify.    Districts may amend approved plans
19        pursuant to rules  promulgated  by  the  State  Board  of
20        Education.
21             Upon  notification  by  the State Board of Education
22        that the district has not submitted a plan prior to  July
23        15  or  a  modified plan within the time period specified
24        herein, the State aid funds  affected  by  that  plan  or
25        modified  plan  shall  be  withheld by the State Board of
26        Education until a plan or modified plan is submitted.
27             If the district fails to  distribute  State  aid  to
28        attendance  centers  in accordance with an approved plan,
29        the plan for the following year shall allocate funds,  in
30        addition   to   the  funds  otherwise  required  by  this
31        subsection,  to  those  attendance  centers  which   were
32        underfunded  during the previous year in amounts equal to
33        such underfunding.
34             For purposes of  determining  compliance  with  this
 
                            -19-               LRB9202452NTsb
 1        subsection  in relation to the requirements of attendance
 2        center funding, each district subject to  the  provisions
 3        of this subsection shall submit as a separate document by
 4        December  1 of each year a report of expenditure data for
 5        the prior year in addition to  any  modification  of  its
 6        current  plan.  If it is determined that there has been a
 7        failure to comply with the expenditure provisions of this
 8        subsection regarding contravention  or  supplanting,  the
 9        State  Superintendent  of Education shall, within 60 days
10        of receipt of the report, notify  the  district  and  any
11        affected local school council.  The district shall within
12        45  days of receipt of that notification inform the State
13        Superintendent of Education of the remedial or corrective
14        action to be taken, whether  by amendment of the  current
15        plan,  if  feasible, or by adjustment in the plan for the
16        following  year.   Failure  to  provide  the  expenditure
17        report or the  notification  of  remedial  or  corrective
18        action  in  a timely manner shall result in a withholding
19        of the affected funds.
20             The State Board of Education shall promulgate  rules
21        and  regulations  to  implement  the  provisions  of this
22        subsection.   No  funds  shall  be  released  under  this
23        subdivision (H)(4) to any district that has not submitted
24        a plan that has been  approved  by  the  State  Board  of
25        Education.

26    (I)  General State Aid for Newly Configured School Districts.
27        (1)  For  a  new  school  district  formed  by  combining
28    property   included  totally  within  2  or  more  previously
29    existing school districts, for its first  year  of  existence
30    the  general  State  aid  and  supplemental general State aid
31    calculated under this Section shall be computed for  the  new
32    district  and for the previously existing districts for which
33    property is totally included within the new district.  If the
34    computation on the basis of the previously existing districts
 
                            -20-               LRB9202452NTsb
 1    is greater, a supplementary payment equal to  the  difference
 2    shall  be  made for the first 4 years of existence of the new
 3    district.
 4        (2)  For a school  district  which  annexes  all  of  the
 5    territory  of  one or more entire other school districts, for
 6    the  first  year  during  which  the  change  of   boundaries
 7    attributable  to  such  annexation  becomes effective for all
 8    purposes as determined under Section 7-9 or 7A-8, the general
 9    State aid and supplemental general State aid calculated under
10    this Section shall be computed for the annexing  district  as
11    constituted  after  the  annexation  and for the annexing and
12    each annexed district as constituted prior to the annexation;
13    and if the computation on  the  basis  of  the  annexing  and
14    annexed  districts  as constituted prior to the annexation is
15    greater, a supplementary  payment  equal  to  the  difference
16    shall  be  made  for  the  first  4 years of existence of the
17    annexing school district as constituted upon such annexation.
18        (3)  For 2 or more school districts which  annex  all  of
19    the  territory  of one or more entire other school districts,
20    and for 2 or more community unit districts which result  upon
21    the  division  (pursuant  to petition under Section 11A-2) of
22    one or more other unit school districts into 2 or more  parts
23    and  which  together include all of the parts into which such
24    other unit school district or districts are so  divided,  for
25    the   first  year  during  which  the  change  of  boundaries
26    attributable to such annexation or division becomes effective
27    for all purposes as determined under Section 7-9  or  11A-10,
28    as  the  case  may be, the general State aid and supplemental
29    general State aid calculated  under  this  Section  shall  be
30    computed   for   each   annexing  or  resulting  district  as
31    constituted after the annexation or  division  and  for  each
32    annexing  and  annexed  district,  or  for each resulting and
33    divided district, as constituted prior to the  annexation  or
34    division;  and  if the aggregate of the general State aid and
 
                            -21-               LRB9202452NTsb
 1    supplemental  general  State  aid  as  so  computed  for  the
 2    annexing or resulting  districts  as  constituted  after  the
 3    annexation  or  division  is  less  than the aggregate of the
 4    general State aid and supplemental general State  aid  as  so
 5    computed  for  the annexing and annexed districts, or for the
 6    resulting and divided districts, as constituted prior to  the
 7    annexation or division, then a supplementary payment equal to
 8    the  difference  shall be made and allocated between or among
 9    the annexing or resulting districts, as constituted upon such
10    annexation or division,  for  the  first  4  years  of  their
11    existence.   The  total difference payment shall be allocated
12    between or among the annexing or resulting districts  in  the
13    same  ratio  as the pupil enrollment from that portion of the
14    annexed or divided district or districts which is annexed  to
15    or included in each such annexing or resulting district bears
16    to  the  total  pupil  enrollment  from the entire annexed or
17    divided district or districts, as such  pupil  enrollment  is
18    determined  for the school year last ending prior to the date
19    when the change of boundaries attributable to the  annexation
20    or  division  becomes effective for all purposes.  The amount
21    of the total difference payment and the amount thereof to  be
22    allocated  to  the  annexing  or resulting districts shall be
23    computed by the State Board of  Education  on  the  basis  of
24    pupil  enrollment  and other data which shall be certified to
25    the State Board of Education, on forms which it shall provide
26    for that purpose, by the regional superintendent  of  schools
27    for each educational service region in which the annexing and
28    annexed  districts,  or  resulting  and divided districts are
29    located.
30        (3.5)  Claims  for  financial   assistance   under   this
31    subsection  (I)  shall  not be recomputed except as expressly
32    provided under this Section.
33        (4)  Any supplementary payment made under this subsection
34    (I) shall be treated as separate from all other payments made
 
                            -22-               LRB9202452NTsb
 1    pursuant to this Section.

 2    (J)  Supplementary Grants in Aid.
 3        (1)  Notwithstanding  any  other   provisions   of   this
 4    Section,  the  amount  of  the aggregate general State aid in
 5    combination with supplemental general State  aid  under  this
 6    Section  for  which each school district is eligible shall be
 7    no less than the amount of the aggregate  general  State  aid
 8    entitlement  that  was received by the district under Section
 9    18-8 (exclusive of amounts received  under  subsections  5(p)
10    and  5(p-5)  of  that  Section)  for the 1997-98 school year,
11    pursuant to the provisions of that Section as it was then  in
12    effect.   If   a  school  district  qualifies  to  receive  a
13    supplementary payment made under  this  subsection  (J),  the
14    amount of the aggregate general State aid in combination with
15    supplemental general State aid under this Section  which that
16    district is eligible to receive for each school year shall be
17    no  less  than  the amount of the aggregate general State aid
18    entitlement that was received by the district  under  Section
19    18-8  (exclusive  of  amounts received under subsections 5(p)
20    and 5(p-5) of that Section) for the  1997-1998  school  year,
21    pursuant  to the provisions of that Section as it was then in
22    effect.
23        (2)  If, as provided in paragraph (1) of this  subsection
24    (J),  a school district is to receive aggregate general State
25    aid in combination with supplemental general State aid  under
26    this  Section  for the 1998-99 school year and any subsequent
27    school year that in any such school year  is  less  than  the
28    amount  of  the  aggregate general State aid entitlement that
29    the district received for the 1997-98 school year, the school
30    district shall also receive, from  a  separate  appropriation
31    made  for  purposes  of  this subsection (J), a supplementary
32    payment that is equal to the amount of the difference in  the
33    aggregate State aid figures as described in paragraph (1).
34        (3)  (Blank).
 
                            -23-               LRB9202452NTsb
 1    (K)  Grants to Laboratory and Alternative Schools.
 2        In  calculating  the  amount  to be paid to the governing
 3    board of a  public  university  that  operates  a  laboratory
 4    school  under  this Section or to any alternative school that
 5    is operated by a  regional  superintendent  of  schools,  the
 6    State Board of Education shall require by rule such reporting
 7    requirements as it deems necessary.
 8        As  used  in  this  Section,  "laboratory school" means a
 9    public school which is  created  and  operated  by  a  public
10    university and approved by the State Board of Education.  The
11    governing  board  of a public university which receives funds
12    from the State  Board  under  this  subsection  (K)  may  not
13    increase  the  number  of students enrolled in its laboratory
14    school from a single district, if that  district  is  already
15    sending  50 or more students, except under a mutual agreement
16    between the school board of a student's district of residence
17    and the university which operates the laboratory  school.   A
18    laboratory  school  may  not  have  more than 1,000 students,
19    excluding students with disabilities in a  special  education
20    program.
21        As  used  in  this  Section, "alternative school" means a
22    public school which is created and  operated  by  a  Regional
23    Superintendent  of Schools and approved by the State Board of
24    Education.  Such alternative schools  may  offer  courses  of
25    instruction  for  which  credit  is  given  in regular school
26    programs, courses to prepare students  for  the  high  school
27    equivalency  testing  program  or vocational and occupational
28    training.   A regional superintendent of schools may contract
29    with a school district or a public community college district
30    to operate an  alternative  school.   An  alternative  school
31    serving  more  than  one  educational  service  region may be
32    established by the regional superintendents of schools of the
33    affected educational service regions.  An alternative  school
34    serving  more  than  one  educational  service  region may be
 
                            -24-               LRB9202452NTsb
 1    operated under such terms as the regional superintendents  of
 2    schools of those educational service regions may agree.
 3        Each  laboratory  and  alternative  school shall file, on
 4    forms provided by the State Superintendent of  Education,  an
 5    annual  State  aid  claim  which  states  the  Average  Daily
 6    Attendance  of  the  school's  students by month.  The best 3
 7    months' Average Daily Attendance shall be computed  for  each
 8    school.  The  general State aid entitlement shall be computed
 9    by multiplying the applicable Average Daily Attendance by the
10    Foundation Level as determined under this Section.

11    (L)  Payments,   Additional   Grants   in   Aid   and   Other
12    Requirements.
13        (1)  For a school district operating under the  financial
14    supervision  of  an  Authority created under Article 34A, the
15    general State aid otherwise payable to  that  district  under
16    this  Section,  but  not  the supplemental general State aid,
17    shall be reduced by an amount equal to  the  budget  for  the
18    operations  of the Authority as certified by the Authority to
19    the State Board of Education, and an  amount  equal  to  such
20    reduction  shall  be  paid  to the Authority created for such
21    district for its operating expenses in the manner provided in
22    Section 18-11.  The remainder of general State school aid for
23    any such district shall be paid in  accordance  with  Article
24    34A  when  that Article provides for a disposition other than
25    that provided by this Article.
26        (2)  (Blank).
27        (3)  Summer school.  Summer school payments shall be made
28    as provided in Section 18-4.3.

29    (M)  Education Funding Advisory Board.
30        The Education Funding Advisory Board, hereinafter in this
31    subsection (M) referred to as the "Board", is hereby created.
32    The Board shall consist of 5 members who are appointed by the
33    Governor, by and with the advice and consent of  the  Senate.
 
                            -25-               LRB9202452NTsb
 1    The   members  appointed  shall  include  representatives  of
 2    education, business, and  the  general  public.  One  of  the
 3    members  so  appointed shall be designated by the Governor at
 4    the time the appointment is made as the  chairperson  of  the
 5    Board.  The initial members of the Board may be appointed any
 6    time after the effective date of this amendatory Act of 1997.
 7    The regular term of each member of the Board shall be  for  4
 8    years  from  the third Monday of January of the year in which
 9    the term of the member's appointment is to  commence,  except
10    that  of  the  5  initial  members  appointed to serve on the
11    Board, the member who is appointed as the  chairperson  shall
12    serve  for  a  term  that commences on the date of his or her
13    appointment and expires on the third Monday of January, 2002,
14    and the remaining 4 members,  by  lots  drawn  at  the  first
15    meeting  of  the  Board  that is held after all 5 members are
16    appointed, shall determine 2 of their  number  to  serve  for
17    terms   that   commence  on  the  date  of  their  respective
18    appointments and expire on the third Monday of January, 2001,
19    and 2 of their number to serve for terms that commence on the
20    date of their respective appointments and expire on the third
21    Monday of January, 2000.  All members appointed to  serve  on
22    the  Board  shall serve until their respective successors are
23    appointed and confirmed.  Vacancies shall be  filled  in  the
24    same  manner  as  original  appointments.   If  a  vacancy in
25    membership occurs at  a  time  when  the  Senate  is  not  in
26    session,  the  Governor  shall  make  a temporary appointment
27    until the next meeting of the Senate, when he  or  she  shall
28    appoint,  by and with the advice and consent of the Senate, a
29    person to fill that membership for the  unexpired  term.   If
30    the  Senate  is  not in session when the initial appointments
31    are made, those appointments shall be made as in the case  of
32    vacancies.
33        The  Education  Funding  Advisory  Board  shall be deemed
34    established,  and  the  initial  members  appointed  by   the
 
                            -26-               LRB9202452NTsb
 1    Governor  to serve as members of the Board shall take office,
 2    on the date that the Governor makes his or her appointment of
 3    the fifth initial member of the Board, whether those  initial
 4    members   are   then  serving  pursuant  to  appointment  and
 5    confirmation or pursuant to temporary appointments  that  are
 6    made by the Governor as in the case of vacancies.
 7        The  State  Board  of  Education shall provide such staff
 8    assistance to the Education  Funding  Advisory  Board  as  is
 9    reasonably  required  for the proper performance by the Board
10    of its responsibilities.
11        For school years after the  2000-2001  school  year,  the
12    Education  Funding  Advisory  Board, in consultation with the
13    State Board  of  Education,  shall  make  recommendations  as
14    provided  in  this subsection (M) to the General Assembly for
15    the foundation level under subdivision (B)(3) of this Section
16    and for the supplemental general State aid grant level  under
17    subsection  (H)  of  this  Section  for  districts  with high
18    concentrations of children  from  poverty.   The  recommended
19    foundation  level  shall be determined based on a methodology
20    which  incorporates  the  basic  education  expenditures   of
21    low-spending  schools  exhibiting  high academic performance.
22    The  Education  Funding  Advisory  Board  shall   make   such
23    recommendations  to  the General Assembly on January 1 of odd
24    numbered years, beginning January 1, 2001.

25    (N)  (Blank).

26    (O)  References.
27        (1)  References in other laws to the various subdivisions
28    of Section 18-8 as that Section existed before its repeal and
29    replacement by this Section 18-8.05 shall be deemed to  refer
30    to  the  corresponding provisions of this Section 18-8.05, to
31    the extent that those references remain applicable.
32        (2)  References in other laws to State  Chapter  1  funds
33    shall  be  deemed  to refer to the supplemental general State
 
                            -27-               LRB9202452NTsb
 1    aid provided under subsection (H) of this Section.
 2    (Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
 3    90-653, eff. 7-29-98;  90-654,  eff.  7-29-98;  90-655,  eff.
 4    7-30-98;  90-802, eff. 12-15-98; 90-815, eff. 2-11-99; 91-24,
 5    eff. 7-1-99; 91-93, eff. 7-9-99; 91-96, eff. 7-9-99;  91-111,
 6    eff.  7-14-99;  91-357,  eff.  7-29-99; 91-533, eff. 8-13-99;
 7    revised 8-27-99.)

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