Bill Text: IL SB0016 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the School Code. Makes a technical change in a Section concerning the School Code's construction.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB0016 Detail]

Download: Illinois-2013-SB0016-Engrossed.html

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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. This Act may be referred to as the School
Funding Reform Act of 2014.
Section 905. The Economic Development Area Tax Increment
Allocation Act is amended by changing Section 7 as follows:
(20 ILCS 620/7) (from Ch. 67 1/2, par. 1007)
Sec. 7. Creation of special tax allocation fund. If a
municipality has adopted tax increment allocation financing
for an economic development project area by ordinance, the
county clerk has thereafter certified the "total initial
equalized assessed value" of the taxable real property within
such economic development project area in the manner provided
in Section 6 of this Act, and the Department has approved and
certified the economic development project area, each year
after the date of the certification by the county clerk of the
"total initial equalized assessed value" until economic
development project costs and all municipal obligations
financing economic development project costs have been paid,
the ad valorem taxes, if any, arising from the levies upon the
taxable real property in the economic development project area

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by taxing districts and tax rates determined in the manner
provided in subsection (b) of Section 6 of this Act shall be
divided as follows:
(1) That portion of the taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such taxable lot,
block, tract, or parcel of real property existing at the time
tax increment allocation financing was adopted, shall be
allocated to and when collected shall be paid by the county
collector to the respective affected taxing districts in the
manner required by law in the absence of the adoption of tax
increment allocation financing.
(2) That portion, if any, of those taxes which is
attributable to the increase in the current equalized assessed
valuation of each taxable lot, block, tract, or parcel of real
property in the economic development project area, over and
above the initial equalized assessed value of each property
existing at the time tax increment allocation financing was
adopted, shall be allocated to and when collected shall be paid
to the municipal treasurer, who shall deposit those taxes into
a special fund called the special tax allocation fund of the
municipality for the purpose of paying economic development
project costs and obligations incurred in the payment thereof.
The municipality, by an ordinance adopting tax increment
allocation financing, may pledge the funds in and to be

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deposited in the special tax allocation fund for the payment of
obligations issued under this Act and for the payment of
economic development project costs. No part of the current
equalized assessed valuation of each property in the economic
development project area attributable to any increase above the
total initial equalized assessed value, of such properties
shall be used in calculating the general State school aid
formula, provided for in Section 18-8 of the School Code, or
the primary State aid formula, provided for in Section 18-8.15
of the School Code, until such time as all economic development
projects costs have been paid as provided for in this Section.
When the economic development project costs, including
without limitation all municipal obligations financing
economic development project costs incurred under this Act,
have been paid, all surplus funds then remaining in the special
tax allocation fund shall be distributed by being paid by the
municipal treasurer to the county collector, who shall
immediately thereafter pay those funds to the taxing districts
having taxable property in the economic development project
area in the same manner and proportion as the most recent
distribution by the county collector to those taxing districts
of real property taxes from real property in the economic
development project area.
Upon the payment of all economic development project costs,
retirement of obligations and the distribution of any excess
monies pursuant to this Section the municipality shall adopt an

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ordinance dissolving the special tax allocation fund for the
economic development project area, terminating the economic
development project area, and terminating the use of tax
increment allocation financing for the economic development
project area. Thereafter the rates of the taxing districts
shall be extended and taxes levied, collected and distributed
in the manner applicable in the absence of the adoption of tax
increment allocation financing.
Nothing in this Section shall be construed as relieving
property in economic development project areas from being
assessed as provided in the Property Tax Code, or as relieving
owners of that property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)
Section 910. The State Finance Act is amended by changing
Section 13.2 as follows:
(30 ILCS 105/13.2) (from Ch. 127, par. 149.2)
Sec. 13.2. Transfers among line item appropriations.
(a) Transfers among line item appropriations from the same
treasury fund for the objects specified in this Section may be
made in the manner provided in this Section when the balance
remaining in one or more such line item appropriations is
insufficient for the purpose for which the appropriation was

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made.
(a-1) No transfers may be made from one agency to another
agency, nor may transfers be made from one institution of
higher education to another institution of higher education
except as provided by subsection (a-4).
(a-2) Except as otherwise provided in this Section,
transfers may be made only among the objects of expenditure
enumerated in this Section, except that no funds may be
transferred from any appropriation for personal services, from
any appropriation for State contributions to the State
Employees' Retirement System, from any separate appropriation
for employee retirement contributions paid by the employer, nor
from any appropriation for State contribution for employee
group insurance. During State fiscal year 2005, an agency may
transfer amounts among its appropriations within the same
treasury fund for personal services, employee retirement
contributions paid by employer, and State Contributions to
retirement systems; notwithstanding and in addition to the
transfers authorized in subsection (c) of this Section, the
fiscal year 2005 transfers authorized in this sentence may be
made in an amount not to exceed 2% of the aggregate amount
appropriated to an agency within the same treasury fund. During
State fiscal year 2007, the Departments of Children and Family
Services, Corrections, Human Services, and Juvenile Justice
may transfer amounts among their respective appropriations
within the same treasury fund for personal services, employee

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retirement contributions paid by employer, and State
contributions to retirement systems. During State fiscal year
2010, the Department of Transportation may transfer amounts
among their respective appropriations within the same treasury
fund for personal services, employee retirement contributions
paid by employer, and State contributions to retirement
systems. During State fiscal years 2010 and 2014 only, an
agency may transfer amounts among its respective
appropriations within the same treasury fund for personal
services, employee retirement contributions paid by employer,
and State contributions to retirement systems.
Notwithstanding, and in addition to, the transfers authorized
in subsection (c) of this Section, these transfers may be made
in an amount not to exceed 2% of the aggregate amount
appropriated to an agency within the same treasury fund.
(a-3) Further, if an agency receives a separate
appropriation for employee retirement contributions paid by
the employer, any transfer by that agency into an appropriation
for personal services must be accompanied by a corresponding
transfer into the appropriation for employee retirement
contributions paid by the employer, in an amount sufficient to
meet the employer share of the employee contributions required
to be remitted to the retirement system.
(a-4) Long-Term Care Rebalancing. The Governor may
designate amounts set aside for institutional services
appropriated from the General Revenue Fund or any other State

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fund that receives monies for long-term care services to be
transferred to all State agencies responsible for the
administration of community-based long-term care programs,
including, but not limited to, community-based long-term care
programs administered by the Department of Healthcare and
Family Services, the Department of Human Services, and the
Department on Aging, provided that the Director of Healthcare
and Family Services first certifies that the amounts being
transferred are necessary for the purpose of assisting persons
in or at risk of being in institutional care to transition to
community-based settings, including the financial data needed
to prove the need for the transfer of funds. The total amounts
transferred shall not exceed 4% in total of the amounts
appropriated from the General Revenue Fund or any other State
fund that receives monies for long-term care services for each
fiscal year. A notice of the fund transfer must be made to the
General Assembly and posted at a minimum on the Department of
Healthcare and Family Services website, the Governor's Office
of Management and Budget website, and any other website the
Governor sees fit. These postings shall serve as notice to the
General Assembly of the amounts to be transferred. Notice shall
be given at least 30 days prior to transfer.
(b) In addition to the general transfer authority provided
under subsection (c), the following agencies have the specific
transfer authority granted in this subsection:
The Department of Healthcare and Family Services is

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authorized to make transfers representing savings attributable
to not increasing grants due to the births of additional
children from line items for payments of cash grants to line
items for payments for employment and social services for the
purposes outlined in subsection (f) of Section 4-2 of the
Illinois Public Aid Code.
The Department of Children and Family Services is
authorized to make transfers not exceeding 2% of the aggregate
amount appropriated to it within the same treasury fund for the
following line items among these same line items: Foster Home
and Specialized Foster Care and Prevention, Institutions and
Group Homes and Prevention, and Purchase of Adoption and
Guardianship Services.
The Department on Aging is authorized to make transfers not
exceeding 2% of the aggregate amount appropriated to it within
the same treasury fund for the following Community Care Program
line items among these same line items: purchase of services
covered by the Community Care Program and Comprehensive Case
Coordination.
The State Treasurer is authorized to make transfers among
line item appropriations from the Capital Litigation Trust
Fund, with respect to costs incurred in fiscal years 2002 and
2003 only, when the balance remaining in one or more such line
item appropriations is insufficient for the purpose for which
the appropriation was made, provided that no such transfer may
be made unless the amount transferred is no longer required for

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the purpose for which that appropriation was made.
The State Board of Education is authorized to make
transfers from line item appropriations within the same
treasury fund for General State Aid, and General State Aid -
Hold Harmless, Primary State Aid, and Hold Harmless State
Funding, provided that no such transfer may be made unless the
amount transferred is no longer required for the purpose for
which that appropriation was made, to the line item
appropriation for Transitional Assistance when the balance
remaining in such line item appropriation is insufficient for
the purpose for which the appropriation was made.
The State Board of Education is authorized to make
transfers between the following line item appropriations
within the same treasury fund: Disabled Student
Services/Materials (Section 14-13.01 of the School Code),
Disabled Student Transportation Reimbursement (Section
14-13.01 of the School Code), Disabled Student Tuition -
Private Tuition (Section 14-7.02 of the School Code),
Extraordinary Special Education (Section 14-7.02b of the
School Code), Reimbursement for Free Lunch/Breakfast Program,
Summer School Payments (Section 18-4.3 of the School Code), and
Transportation - Regular/Vocational Reimbursement (Section
29-5 of the School Code). Such transfers shall be made only
when the balance remaining in one or more such line item
appropriations is insufficient for the purpose for which the
appropriation was made and provided that no such transfer may

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be made unless the amount transferred is no longer required for
the purpose for which that appropriation was made.
The Department of Healthcare and Family Services is
authorized to make transfers not exceeding 4% of the aggregate
amount appropriated to it, within the same treasury fund, among
the various line items appropriated for Medical Assistance.
(c) The sum of such transfers for an agency in a fiscal
year shall not exceed 2% of the aggregate amount appropriated
to it within the same treasury fund for the following objects:
Personal Services; Extra Help; Student and Inmate
Compensation; State Contributions to Retirement Systems; State
Contributions to Social Security; State Contribution for
Employee Group Insurance; Contractual Services; Travel;
Commodities; Printing; Equipment; Electronic Data Processing;
Operation of Automotive Equipment; Telecommunications
Services; Travel and Allowance for Committed, Paroled and
Discharged Prisoners; Library Books; Federal Matching Grants
for Student Loans; Refunds; Workers' Compensation,
Occupational Disease, and Tort Claims; and, in appropriations
to institutions of higher education, Awards and Grants.
Notwithstanding the above, any amounts appropriated for
payment of workers' compensation claims to an agency to which
the authority to evaluate, administer and pay such claims has
been delegated by the Department of Central Management Services
may be transferred to any other expenditure object where such
amounts exceed the amount necessary for the payment of such

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claims.
(c-1) Special provisions for State fiscal year 2003.
Notwithstanding any other provision of this Section to the
contrary, for State fiscal year 2003 only, transfers among line
item appropriations to an agency from the same treasury fund
may be made provided that the sum of such transfers for an
agency in State fiscal year 2003 shall not exceed 3% of the
aggregate amount appropriated to that State agency for State
fiscal year 2003 for the following objects: personal services,
except that no transfer may be approved which reduces the
aggregate appropriations for personal services within an
agency; extra help; student and inmate compensation; State
contributions to retirement systems; State contributions to
social security; State contributions for employee group
insurance; contractual services; travel; commodities;
printing; equipment; electronic data processing; operation of
automotive equipment; telecommunications services; travel and
allowance for committed, paroled, and discharged prisoners;
library books; federal matching grants for student loans;
refunds; workers' compensation, occupational disease, and tort
claims; and, in appropriations to institutions of higher
education, awards and grants.
(c-2) Special provisions for State fiscal year 2005.
Notwithstanding subsections (a), (a-2), and (c), for State
fiscal year 2005 only, transfers may be made among any line
item appropriations from the same or any other treasury fund

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for any objects or purposes, without limitation, when the
balance remaining in one or more such line item appropriations
is insufficient for the purpose for which the appropriation was
made, provided that the sum of those transfers by a State
agency shall not exceed 4% of the aggregate amount appropriated
to that State agency for fiscal year 2005.
(d) Transfers among appropriations made to agencies of the
Legislative and Judicial departments and to the
constitutionally elected officers in the Executive branch
require the approval of the officer authorized in Section 10 of
this Act to approve and certify vouchers. Transfers among
appropriations made to the University of Illinois, Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, Western Illinois University, the Illinois
Mathematics and Science Academy and the Board of Higher
Education require the approval of the Board of Higher Education
and the Governor. Transfers among appropriations to all other
agencies require the approval of the Governor.
The officer responsible for approval shall certify that the
transfer is necessary to carry out the programs and purposes
for which the appropriations were made by the General Assembly
and shall transmit to the State Comptroller a certified copy of
the approval which shall set forth the specific amounts
transferred so that the Comptroller may change his records

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accordingly. The Comptroller shall furnish the Governor with
information copies of all transfers approved for agencies of
the Legislative and Judicial departments and transfers
approved by the constitutionally elected officials of the
Executive branch other than the Governor, showing the amounts
transferred and indicating the dates such changes were entered
on the Comptroller's records.
(e) The State Board of Education, in consultation with the
State Comptroller, may transfer line item appropriations for
General State Aid or Primary State Aid between the Common
School Fund and the Education Assistance Fund. With the advice
and consent of the Governor's Office of Management and Budget,
the State Board of Education, in consultation with the State
Comptroller, may transfer line item appropriations between the
General Revenue Fund and the Education Assistance Fund for the
following programs:
(1) Disabled Student Personnel Reimbursement (Section
14-13.01 of the School Code);
(2) Disabled Student Transportation Reimbursement
(subsection (b) of Section 14-13.01 of the School Code);
(3) Disabled Student Tuition - Private Tuition
(Section 14-7.02 of the School Code);
(4) Extraordinary Special Education (Section 14-7.02b
of the School Code);
(5) Reimbursement for Free Lunch/Breakfast Programs;
(6) Summer School Payments (Section 18-4.3 of the

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School Code);
(7) Transportation - Regular/Vocational Reimbursement
(Section 29-5 of the School Code);
(8) Regular Education Reimbursement (Section 18-3 of
the School Code); and
(9) Special Education Reimbursement (Section 14-7.03
of the School Code).
(Source: P.A. 97-689, eff. 7-1-12; 98-24, eff. 6-19-13.)
Section 915. The Property Tax Code is amended by changing
Sections 18-200 and 18-249 as follows:
(35 ILCS 200/18-200)
Sec. 18-200. School Code. A school district's State aid
shall not be reduced under the computation under subsections
5(a) through 5(h) of Part A of Section 18-8 of the School Code
or under subsection (e) of Section 18-8.15 of the School Code
due to the operating tax rate falling from above the minimum
requirement of that Section of the School Code to below the
minimum requirement of that Section of the School Code due to
the operation of this Law.
(Source: P.A. 87-17; 88-455.)
(35 ILCS 200/18-249)
Sec. 18-249. Miscellaneous provisions.
(a) Certification of new property. For the 1994 levy year,

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the chief county assessment officer shall certify to the county
clerk, after all changes by the board of review or board of
appeals, as the case may be, the assessed value of new property
by taxing district for the 1994 levy year under rules
promulgated by the Department.
(b) School Code. A school district's State aid shall not be
reduced under the computation under subsections 5(a) through
5(h) of Part A of Section 18-8 of the School Code or under
subsection (e) of Section 18-8.15 of the School Code due to the
operating tax rate falling from above the minimum requirement
of that Section of the School Code to below the minimum
requirement of that Section of the School Code due to the
operation of this Law.
(c) Rules. The Department shall make and promulgate
reasonable rules relating to the administration of the purposes
and provisions of Sections 18-246 through 18-249 as may be
necessary or appropriate.
(Source: P.A. 89-1, eff. 2-12-95.)
Section 920. The Innovation Development and Economy Act is
amended by changing Section 33 as follows:
(50 ILCS 470/33)
Sec. 33. STAR Bonds School Improvement and Operations Trust
Fund.
(a) The STAR Bonds School Improvement and Operations Trust

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Fund is created as a trust fund in the State treasury. Deposits
into the Trust Fund shall be made as provided under this
Section. Moneys in the Trust Fund shall be used by the
Department of Revenue only for the purpose of making payments
to school districts in educational service regions that include
or are adjacent to the STAR bond district. Moneys in the Trust
Fund are not subject to appropriation and shall be used solely
as provided in this Section. All deposits into the Trust Fund
shall be held in the Trust Fund by the State Treasurer as ex
officio custodian separate and apart from all public moneys or
funds of this State and shall be administered by the Department
exclusively for the purposes set forth in this Section. All
moneys in the Trust Fund shall be invested and reinvested by
the State Treasurer. All interest accruing from these
investments shall be deposited in the Trust Fund.
(b) Upon approval of a STAR bond district, the political
subdivision shall immediately transmit to the county clerk of
the county in which the district is located a certified copy of
the ordinance creating the district, a legal description of the
district, a map of the district, identification of the year
that the county clerk shall use for determining the total
initial equalized assessed value of the district consistent
with subsection (c), and a list of the parcel or tax
identification number of each parcel of property included in
the district.
(c) Upon approval of a STAR bond district, the county clerk

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immediately thereafter shall determine (i) the most recently
ascertained equalized assessed value of each lot, block, tract,
or parcel of real property within the STAR bond district, from
which shall be deducted the homestead exemptions under Article
15 of the Property Tax Code, which value shall be the initial
equalized assessed value of each such piece of property, and
(ii) the total equalized assessed value of all taxable real
property within the district by adding together the most
recently ascertained equalized assessed value of each taxable
lot, block, tract, or parcel of real property within the
district, from which shall be deducted the homestead exemptions
under Article 15 of the Property Tax Code, and shall certify
that amount as the total initial equalized assessed value of
the taxable real property within the STAR bond district.
(d) In reference to any STAR bond district created within
any political subdivision, and in respect to which the county
clerk has certified the total initial equalized assessed value
of the property in the area, the political subdivision may
thereafter request the clerk in writing to adjust the initial
equalized value of all taxable real property within the STAR
bond district by deducting therefrom the exemptions under
Article 15 of the Property Tax Code applicable to each lot,
block, tract, or parcel of real property within the STAR bond
district. The county clerk shall immediately, after the written
request to adjust the total initial equalized value is
received, determine the total homestead exemptions in the STAR

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bond district as provided under Article 15 of the Property Tax
Code by adding together the homestead exemptions provided by
said Article on each lot, block, tract, or parcel of real
property within the STAR bond district and then shall deduct
the total of said exemptions from the total initial equalized
assessed value. The county clerk shall then promptly certify
that amount as the total initial equalized assessed value as
adjusted of the taxable real property within the STAR bond
district.
(e) The county clerk or other person authorized by law
shall compute the tax rates for each taxing district with all
or a portion of its equalized assessed value located in the
STAR bond district. The rate per cent of tax determined shall
be extended to the current equalized assessed value of all
property in the district in the same manner as the rate per
cent of tax is extended to all other taxable property in the
taxing district.
(f) Beginning with the assessment year in which the first
destination user in the first STAR bond project in a STAR bond
district makes its first retail sales and for each assessment
year thereafter until final maturity of the last STAR bonds
issued in the district, the county clerk or other person
authorized by law shall determine the increase in equalized
assessed value of all real property within the STAR bond
district by subtracting the initial equalized assessed value of
all property in the district certified under subsection (c)

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from the current equalized assessed value of all property in
the district. Each year, the property taxes arising from the
increase in equalized assessed value in the STAR bond district
shall be determined for each taxing district and shall be
certified to the county collector.
(g) Beginning with the year in which taxes are collected
based on the assessment year in which the first destination
user in the first STAR bond project in a STAR bond district
makes its first retail sales and for each year thereafter until
final maturity of the last STAR bonds issued in the district,
the county collector shall, within 30 days after receipt of
property taxes, transmit to the Department to be deposited into
the STAR Bonds School Improvement and Operations Trust Fund 15%
of property taxes attributable to the increase in equalized
assessed value within the STAR bond district from each taxing
district as certified in subsection (f).
(h) The Department shall pay to the regional superintendent
of schools whose educational service region includes Franklin
and Williamson Counties, for each year for which money is
remitted to the Department and paid into the STAR Bonds School
Improvement and Operations Trust Fund, the money in the Fund as
provided in this Section. The amount paid to each school
district shall be allocated proportionately, based on each
qualifying school district's fall enrollment for the
then-current school year, such that the school district with
the largest fall enrollment receives the largest proportionate

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share of money paid out of the Fund or by any other method or
formula that the regional superintendent of schools deems fit,
equitable, and in the public interest. The regional
superintendent may allocate moneys to school districts that are
outside of his or her educational service region or to other
regional superintendents.
The Department shall determine the distributions under
this Section using its best judgment and information. The
Department shall be held harmless for the distributions made
under this Section and all distributions shall be final.
(i) In any year that an assessment appeal is filed, the
extension of taxes on any assessment so appealed shall not be
delayed. In the case of an assessment that is altered, any
taxes extended upon the unauthorized assessment or part thereof
shall be abated, or, if already paid, shall be refunded with
interest as provided in Section 23-20 of the Property Tax Code.
In the case of an assessment appeal, the county collector shall
notify the Department that an assessment appeal has been filed
and the amount of the tax that would have been deposited in the
STAR Bonds School Improvement and Operations Trust Fund. The
county collector shall hold that amount in a separate fund
until the appeal process is final. After the appeal process is
finalized, the county collector shall transmit to the
Department the amount of tax that remains, if any, after all
required refunds are made. The Department shall pay any amount
deposited into the Trust Fund under this Section in the same

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proportion as determined for payments for that taxable year
under subsection (h).
(j) In any year that ad valorem taxes are allocated to the
STAR Bonds School Improvement and Operations Trust Fund, that
allocation shall not reduce or otherwise impact the school aid
provided to any school district under the general State school
aid formula provided for in Section 18-8.05 of the School Code
or the primary State aid formula provided for in Section
18-8.15 of the School Code.
(Source: P.A. 96-939, eff. 6-24-10.)
Section 925. The County Economic Development Project Area
Property Tax Allocation Act is amended by changing Section 7 as
follows:
(55 ILCS 85/7) (from Ch. 34, par. 7007)
Sec. 7. Creation of special tax allocation fund. If a
county has adopted property tax allocation financing by
ordinance for an economic development project area, the
Department has approved and certified the economic development
project area, and the county clerk has thereafter certified the
"total initial equalized value" of the taxable real property
within such economic development project area in the manner
provided in subsection (b) of Section 6 of this Act, each year
after the date of the certification by the county clerk of the
"initial equalized assessed value" until economic development

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project costs and all county obligations financing economic
development project costs have been paid, the ad valorem taxes,
if any, arising from the levies upon the taxable real property
in the economic development project area by taxing districts
and tax rates determined in the manner provided in subsection
(b) of Section 6 of this Act shall be divided as follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract or parcel of real property which is
attributable to the lower of the current equalized assessed
value or the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property
existing at the time property tax allocation financing was
adopted shall be allocated and when collected shall be paid
by the county collector to the respective affected taxing
districts in the manner required by the law in the absence
of the adoption of property tax allocation financing.
(2) That portion, if any, of those taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the economic development project
are, over and above the initial equalized assessed value of
each property existing at the time property tax allocation
financing was adopted shall be allocated to and when
collected shall be paid to the county treasurer, who shall
deposit those taxes into a special fund called the special
tax allocation fund of the county for the purpose of paying

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economic development project costs and obligations
incurred in the payment thereof.
The county, by an ordinance adopting property tax
allocation financing, may pledge the funds in and to be
deposited in the special tax allocation fund for the payment of
obligations issued under this Act and for the payment of
economic development project costs. No part of the current
equalized assessed valuation of each property in the economic
development project area attributable to any increase above the
total initial equalized assessed value of such properties shall
be used in calculating the general State school aid formula,
provided for in Section 18-8 of the School Code, or the primary
State aid formula, provided for in Section 18-8.15 of the
School Code, until such time as all economic development
projects costs have been paid as provided for in this Section.
Whenever a county issues bonds for the purpose of financing
economic development project costs, the county may provide by
ordinance for the appointment of a trustee, which may be any
trust company within the State, and for the establishment of
the funds or accounts to be maintained by such trustee as the
county shall deem necessary to provide for the security and
payment of the bonds. If the county provides for the
appointment of a trustee, the trustee shall be considered the
assignee of any payments assigned by the county pursuant to the
ordinance and this Section. Any amounts paid to the trustee as
assignee shall be deposited in the funds or accounts

SB0016 Engrossed - 24 - LRB098 04277 NHT 34304 b
established pursuant to the trust agreement, and shall be held
by the trustee in trust for the benefit of the holders of the
bonds, and the holders shall have a lien on and a security
interest in those bonds or accounts so long as the bonds remain
outstanding and unpaid. Upon retirement of the bonds, the
trustee shall pay over any excess amounts held to the county
for deposit in the special tax allocation fund.
When the economic development project costs, including
without limitation all county obligations financing economic
development project costs incurred under this Act, have been
paid, all surplus funds then remaining in the special tax
allocation funds shall be distributed by being paid by the
county treasurer to the county collector, who shall immediately
thereafter pay those funds to the taxing districts having
taxable property in the economic development project area in
the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real
property taxes from real property in the economic development
project area.
Upon the payment of all economic development project costs,
retirement of obligations and the distribution of any excess
monies pursuant to this Section and not later than 23 years
from the date of adoption of the ordinance adopting property
tax allocation financing, the county shall adopt an ordinance
dissolving the special tax allocation fund for the economic
development project area and terminating the designation of the

SB0016 Engrossed - 25 - LRB098 04277 NHT 34304 b
economic development project area as an economic development
project area. Thereafter the rates of the taxing districts
shall be extended and taxes levied, collected and distributed
in the manner applicable in the absence of the adoption of
property tax allocation financing.
Nothing in this Section shall be construed as relieving
property in economic development project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of that property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution of 1970.
(Source: P.A. 98-463, eff. 8-16-13.)
Section 930. The County Economic Development Project Area
Tax Increment Allocation Act of 1991 is amended by changing
Section 50 as follows:
(55 ILCS 90/50) (from Ch. 34, par. 8050)
Sec. 50. Special tax allocation fund.
(a) If a county clerk has certified the "total initial
equalized assessed value" of the taxable real property within
an economic development project area in the manner provided in
Section 45, each year after the date of the certification by
the county clerk of the "total initial equalized assessed
value", until economic development project costs and all county
obligations financing economic development project costs have

SB0016 Engrossed - 26 - LRB098 04277 NHT 34304 b
been paid, the ad valorem taxes, if any, arising from the
levies upon the taxable real property in the economic
development project area by taxing districts and tax rates
determined in the manner provided in subsection (b) of Section
45 shall be divided as follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract, or parcel of real property that is
attributable to the lower of the current equalized assessed
value or the initial equalized assessed value of each
taxable lot, block, tract, or parcel of real property
existing at the time tax increment financing was adopted
shall be allocated to (and when collected shall be paid by
the county collector to) the respective affected taxing
districts in the manner required by law in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of the taxes that is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the economic development project
area, over and above the initial equalized assessed value
of each property existing at the time tax increment
financing was adopted, shall be allocated to (and when
collected shall be paid to) the county treasurer, who shall
deposit the taxes into a special fund (called the special
tax allocation fund of the county) for the purpose of
paying economic development project costs and obligations

SB0016 Engrossed - 27 - LRB098 04277 NHT 34304 b
incurred in the payment of those costs.
(b) The county, by an ordinance adopting tax increment
allocation financing, may pledge the monies in and to be
deposited into the special tax allocation fund for the payment
of obligations issued under this Act and for the payment of
economic development project costs. No part of the current
equalized assessed valuation of each property in the economic
development project area attributable to any increase above the
total initial equalized assessed value of those properties
shall be used in calculating the general State school aid
formula under Section 18-8 of the School Code or the primary
State aid formula under Section 18-8.15 of the School Code
until all economic development projects costs have been paid as
provided for in this Section.
(c) When the economic development projects costs,
including without limitation all county obligations financing
economic development project costs incurred under this Act,
have been paid, all surplus monies then remaining in the
special tax allocation fund shall be distributed by being paid
by the county treasurer to the county collector, who shall
immediately pay the monies to the taxing districts having
taxable property in the economic development project area in
the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real
property taxes from real property in the economic development
project area.

SB0016 Engrossed - 28 - LRB098 04277 NHT 34304 b
(d) Upon the payment of all economic development project
costs, retirement of obligations, and distribution of any
excess monies under this Section, the county shall adopt an
ordinance dissolving the special tax allocation fund for the
economic development project area and terminating the
designation of the economic development project area as an
economic development project area. Thereafter, the rates of the
taxing districts shall be extended and taxes shall be levied,
collected, and distributed in the manner applicable in the
absence of the adoption of tax increment allocation financing.
(e) Nothing in this Section shall be construed as relieving
property in the economic development project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of that property from paying a uniform rate of taxes as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)
Section 935. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
follows:
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different

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meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each of
which is (i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary
structural components of buildings or improvements in
such a combination that a documented building
condition analysis determines that major repair is
required or the defects are so serious and so extensive
that the buildings must be removed.

SB0016 Engrossed - 30 - LRB098 04277 NHT 34304 b
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects in
the secondary building components such as doors,
windows, porches, gutters and downspouts, and fascia.
With respect to surface improvements, that the
condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire, and
other governmental codes applicable to property, but
not including housing and property maintenance codes.
(E) Illegal use of individual structures. The use
of structures in violation of applicable federal,
State, or local laws, exclusive of those applicable to
the presence of structures below minimum code
standards.
(F) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that

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represent an adverse influence on the area because of
the frequency, extent, or duration of the vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room
area to window area ratios. Inadequate sanitary
facilities refers to the absence or inadequacy of
garbage storage and enclosure, bathroom facilities,
hot water and kitchens, and structural inadequacies
preventing ingress and egress to and from all rooms and
units within a building.
(H) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii)
lacking within the redevelopment project area.
(I) Excessive land coverage and overcrowding of

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structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive land
coverage are: (i) the presence of buildings either
improperly situated on parcels or located on parcels of
inadequate size and shape in relation to present-day
standards of development for health and safety and (ii)
the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage,
these parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread
of fire due to the close proximity of buildings, lack
of adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking, or
inadequate provision for loading and service.
(J) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses
considered to be noxious, offensive, or unsuitable for
the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States

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Environmental Protection Agency remediation costs for,
or a study conducted by an independent consultant
recognized as having expertise in environmental
remediation has determined a need for, the clean-up of
hazardous waste, hazardous substances, or underground
storage tanks required by State or federal law,
provided that the remediation costs constitute a
material impediment to the development or
redevelopment of the redevelopment project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to the
adoption by the municipality of a comprehensive or
other community plan or that the plan was not followed
at the time of the area's development. This factor must
be documented by evidence of adverse or incompatible
land-use relationships, inadequate street layout,
improper subdivision, parcels of inadequate shape and
size to meet contemporary development standards, or
other evidence demonstrating an absence of effective
community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is

SB0016 Engrossed - 34 - LRB098 04277 NHT 34304 b
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(2) If vacant, the sound growth of the redevelopment
project area is impaired by a combination of 2 or more of
the following factors, each of which is (i) present, with
that presence documented, to a meaningful extent so that a
municipality may reasonably find that the factor is clearly
present within the intent of the Act and (ii) reasonably
distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) Obsolete platting of vacant land that results
in parcels of limited or narrow size or configurations
of parcels of irregular size or shape that would be
difficult to develop on a planned basis and in a manner
compatible with contemporary standards and
requirements, or platting that failed to create
rights-of-ways for streets or alleys or that created
inadequate right-of-way widths for streets, alleys, or
other public rights-of-way or that omitted easements

SB0016 Engrossed - 35 - LRB098 04277 NHT 34304 b
for public utilities.
(B) Diversity of ownership of parcels of vacant
land sufficient in number to retard or impede the
ability to assemble the land for development.
(C) Tax and special assessment delinquencies exist
or the property has been the subject of tax sales under
the Property Tax Code within the last 5 years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to
the development or redevelopment of the redevelopment
project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the

SB0016 Engrossed - 36 - LRB098 04277 NHT 34304 b
balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(3) If vacant, the sound growth of the redevelopment
project area is impaired by one of the following factors
that (i) is present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) is reasonably distributed throughout
the vacant part of the redevelopment project area to which
it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused rail yards, rail
tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is subject
to (i) chronic flooding that adversely impacts on real
property in the area as certified by a registered
professional engineer or appropriate regulatory agency
or (ii) surface water that discharges from all or a
part of the area and contributes to flooding within the

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same watershed, but only if the redevelopment project
provides for facilities or improvements to contribute
to the alleviation of all or part of the flooding.
(D) The area consists of an unused or illegal
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge sites.
(E) Prior to November 1, 1999, the area is not less
than 50 nor more than 100 acres and 75% of which is
vacant (notwithstanding that the area has been used for
commercial agricultural purposes within 5 years prior
to the designation of the redevelopment project area),
and the area meets at least one of the factors itemized
in paragraph (1) of this subsection, the area has been
designated as a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that designated
purpose.
(F) The area qualified as a blighted improved area
immediately prior to becoming vacant, unless there has
been substantial private investment in the immediately
surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth

SB0016 Engrossed - 38 - LRB098 04277 NHT 34304 b
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
(1) Dilapidation. An advanced state of disrepair or
neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects are
so serious and so extensive that the buildings must be
removed.
(2) Obsolescence. The condition or process of falling
into disuse. Structures have become ill-suited for the
original use.
(3) Deterioration. With respect to buildings, defects
including, but not limited to, major defects in the
secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect
to surface improvements, that the condition of roadways,
alleys, curbs, gutters, sidewalks, off-street parking, and
surface storage areas evidence deterioration, including,

SB0016 Engrossed - 39 - LRB098 04277 NHT 34304 b
but not limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds protruding
through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards of
zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use of
structures in violation of applicable federal, State, or
local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent an
adverse influence on the area because of the frequency,
extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for light
or air circulation in spaces or rooms without windows, or
that require the removal of dust, odor, gas, smoke, or
other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of
skylights or windows for interior spaces or rooms and
improper window sizes and amounts by room area to window
area ratios. Inadequate sanitary facilities refers to the
absence or inadequacy of garbage storage and enclosure,

SB0016 Engrossed - 40 - LRB098 04277 NHT 34304 b
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage, sanitary
sewers, water lines, and gas, telephone, and electrical
services that are shown to be inadequate. Inadequate
utilities are those that are: (i) of insufficient capacity
to serve the uses in the redevelopment project area, (ii)
deteriorated, antiquated, obsolete, or in disrepair, or
(iii) lacking within the redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and accessory
facilities onto a site. Examples of problem conditions
warranting the designation of an area as one exhibiting
excessive land coverage are: the presence of buildings
either improperly situated on parcels or located on parcels
of inadequate size and shape in relation to present-day
standards of development for health and safety and the
presence of multiple buildings on a single parcel. For
there to be a finding of excessive land coverage, these
parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of
fire due to the close proximity of buildings, lack of

SB0016 Engrossed - 41 - LRB098 04277 NHT 34304 b
adequate or proper access to a public right-of-way, lack of
reasonably required off-street parking, or inadequate
provision for loading and service.
(10) Deleterious land use or layout. The existence of
incompatible land-use relationships, buildings occupied by
inappropriate mixed-uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding
area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,

SB0016 Engrossed - 42 - LRB098 04277 NHT 34304 b
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the proposed
redevelopment project area has declined for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the balance
of the municipality for 3 of the last 5 calendar years for
which information is available or is increasing at an
annual rate that is less than the Consumer Price Index for
All Urban Consumers published by the United States
Department of Labor or successor agency for 3 of the last 5
calendar years for which information is available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located

SB0016 Engrossed - 43 - LRB098 04277 NHT 34304 b
within the territorial limits of a municipality that is a labor
surplus municipality or within 1 1/2 miles of the territorial
limits of a municipality that is a labor surplus municipality
if the area is annexed to the municipality; which area is zoned
as industrial no later than at the time the municipality by
ordinance designates the redevelopment project area, and which
area includes both vacant land suitable for use as an
industrial park and a blighted area or conservation area
contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the unemployment
rate in the principal county in which the municipality is
located.
(f) "Municipality" shall mean a city, village,
incorporated town, or a township that is located in the
unincorporated portion of a county with 3 million or more
inhabitants, if the county adopted an ordinance that approved

SB0016 Engrossed - 44 - LRB098 04277 NHT 34304 b
the township's redevelopment plan.
(g) "Initial Sales Tax Amounts" means the amount of taxes
paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
(h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax Act
by retailers and servicemen, on transactions at places of

SB0016 Engrossed - 45 - LRB098 04277 NHT 34304 b
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax amounts

SB0016 Engrossed - 46 - LRB098 04277 NHT 34304 b
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For the State Fiscal Year 1991,
this calculation shall be made by utilizing the period from
October 1, 1988, to June 30, 1989, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts, as the
case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax Boundary;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of State Sales Tax Increment annually generated within
a State Sales Tax Boundary; and (c) 40% of all amounts in

SB0016 Engrossed - 47 - LRB098 04277 NHT 34304 b
excess of $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary. If, however, a
municipality established a tax increment financing district in
a county with a population in excess of 3,000,000 before
January 1, 1986, and the municipality entered into a contract
or issued bonds after January 1, 1986, but before December 31,
1986, to finance redevelopment project costs within a State
Sales Tax Boundary, then the Net State Sales Tax Increment
means, for the fiscal years beginning July 1, 1990, and July 1,
1991, 100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those municipalities
100% of their Net State Sales Tax Increment before any
distribution to any other municipality and regardless of
whether or not those other municipalities will receive 100% of
their Net State Sales Tax Increment. For Fiscal Year 1999, and
every year thereafter until the year 2007, for any municipality
that has not entered into a contract or has not issued bonds
prior to June 1, 1988 to finance redevelopment project costs
within a State Sales Tax Boundary, the Net State Sales Tax
Increment shall be calculated as follows: By multiplying the
Net State Sales Tax Increment by 90% in the State Fiscal Year
1999; 80% in the State Fiscal Year 2000; 70% in the State
Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

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in the State Fiscal Year 2005; 20% in the State Fiscal Year
2006; and 10% in the State Fiscal Year 2007. No payment shall
be made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated. If,
however, a municipality that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991 retires the
bonds prior to June 30, 2007 or a municipality that entered
into contracts in connection with a redevelopment project in a
redevelopment project area before June 1, 1988 completes the
contracts prior to June 30, 2007, then so long as the
redevelopment project is not completed or is not terminated,
the Net State Sales Tax Increment shall be calculated,
beginning on the date on which the bonds are retired or the
contracts are completed, as follows: By multiplying the Net
State Sales Tax Increment by 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
2004; 30% in the State Fiscal Year 2005; 20% in the State
Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No

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payment shall be made for State Fiscal Year 2008 and
thereafter. Refunding of any bonds issued prior to July 29,
1991, shall not alter the Net State Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants, other
than residential customers, of properties within the
redevelopment project area during the base year, which shall be
the calendar year immediately prior to the year of the adoption
of the ordinance authorizing tax increment allocation
financing.
(k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State Fiscal
Year 1999, and every year thereafter until the year 2007, for
any municipality that has not entered into a contract or has
not issued bonds prior to June 1, 1988 to finance redevelopment

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project costs within a redevelopment project area, the Net
State Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in the
State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
in the State Fiscal Year 2001; 60% in the State Fiscal Year
2002; 50% in the State Fiscal Year 2003; 40% in the State
Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
No payment shall be made for the State Fiscal Year 2008 and
thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988 until
3 years after the effective date of this Amendatory Act of 1988
shall receive the Net State Utility Tax Increment, subject to
appropriation, for 15 State Fiscal Years after the issuance of
such bonds. For the 16th through the 20th State Fiscal Years
after issuance of the bonds, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in year 16; 80% in year
17; 70% in year 18; 60% in year 19; and 50% in year 20.
Refunding of any bonds issued prior to June 1, 1988, shall not
alter the revised Net State Utility Tax Increment payments set
forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to

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refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified the
redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of the
taxing districts which extend into the redevelopment project
area. On and after November 1, 1999 (the effective date of
Public Act 91-478), no redevelopment plan may be approved or
amended that includes the development of vacant land (i) with a
golf course and related clubhouse and other facilities or (ii)
designated by federal, State, county, or municipal government

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as public land for outdoor recreational activities or for
nature preserves and used for that purpose within 5 years prior
to the adoption of the redevelopment plan. For the purpose of
this subsection, "recreational activities" is limited to mean
camping and hunting. Each redevelopment plan shall set forth in
writing the program to be undertaken to accomplish the
objectives and shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment project
area on the whole has not been subject to growth and
development through investment by private enterprise;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan and
any program to address such financial impact or increased
demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of the
redevelopment project area;
(G) an estimate as to the equalized assessed valuation
after redevelopment and the general land uses to apply in
the redevelopment project area;
(H) a commitment to fair employment practices and an

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affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description of
any proposed developer, user and tenant of any property, a
description of the type, structure and general character of
the facilities to be developed, a description of the type,
class and number of new employees to be employed in the
operation of the facilities to be developed; and
(J) if property is to be annexed to the municipality,
the plan shall include the terms of the annexation
agreement.
The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan.
(2) The municipality finds that the redevelopment plan
and project conform to the comprehensive plan for the

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development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the estimated
dates of completion of the redevelopment project and
retirement of obligations issued to finance redevelopment
project costs. Those dates may not be later than the dates
set forth under Section 11-74.4-3.5.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or notice
and without complying with the procedures provided in this
Act pertaining to an amendment to or the initial approval
of a redevelopment plan and project and designation of a
redevelopment project area.
(3.5) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce

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unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues, and
(b) that such incremental revenues will be exclusively
utilized for the development of the redevelopment project
area.
(5) If the redevelopment plan will not result in
displacement of residents from 10 or more inhabited
residential units, and the municipality certifies in the
plan that such displacement will not result from the plan,
a housing impact study need not be performed. If, however,
the redevelopment plan would result in the displacement of
residents from 10 or more inhabited residential units, or
if the redevelopment project area contains 75 or more
inhabited residential units and no certification is made,
then the municipality shall prepare, as part of the
separate feasibility report required by subsection (a) of
Section 11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single family

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or multi-family units, (ii) the number and type of rooms
within the units, if that information is available, (iii)
whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the racial
and ethnic composition of the residents in the inhabited
residential units. The data requirement as to the racial
and ethnic composition of the residents in the inhabited
residential units shall be deemed to be fully satisfied by
data from the most recent federal census.
Part II of the housing impact study shall identify the
inhabited residential units in the proposed redevelopment
project area that are to be or may be removed. If inhabited
residential units are to be removed, then the housing
impact study shall identify (i) the number and location of
those units that will or may be removed, (ii) the
municipality's plans for relocation assistance for those
residents in the proposed redevelopment project area whose
residences are to be removed, (iii) the availability of
replacement housing for those residents whose residences
are to be removed, and shall identify the type, location,
and cost of the housing, and (iv) the type and extent of
relocation assistance to be provided.
(6) On and after November 1, 1999, the housing impact
study required by paragraph (5) shall be incorporated in

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the redevelopment plan for the redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households of
low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations under
that Act, including the eligibility criteria. Affordable
housing may be either existing or newly constructed
housing. For purposes of this paragraph (7), "low-income
households", "very low-income households", and "affordable
housing" have the meanings set forth in the Illinois
Affordable Housing Act. The municipality shall make a good
faith effort to ensure that this affordable housing is
located in or near the redevelopment project area within
the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential

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units than specified in its original redevelopment plan,
that change shall be made in accordance with the procedures
in subsection (c) of Section 11-74.4-5.
(9) For redevelopment project areas designated prior
to November 1, 1999, the redevelopment plan may be amended
without further joint review board meeting or hearing,
provided that the municipality shall give notice of any
such changes by mail to each affected taxing district and
registrant on the interested party registry, to authorize
the municipality to expend tax increment revenues for
redevelopment project costs defined by paragraphs (5) and
(7.5), subparagraphs (E) and (F) of paragraph (11), and
paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
long as the changes do not increase the total estimated
redevelopment project costs set out in the redevelopment
plan by more than 5% after adjustment for inflation from
the date the plan was adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan may
be approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose

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within 5 years prior to the adoption of the redevelopment plan.
For the purpose of this subsection, "recreational activities"
is limited to mean camping and hunting.
(p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
(p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Regional Transportation Authority Suburban Transit Access
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
(q) "Redevelopment project costs", except for
redevelopment project areas created pursuant to subsection
(p-1), means and includes the sum total of all reasonable or
necessary costs incurred or estimated to be incurred, and any
such costs incidental to a redevelopment plan and a

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redevelopment project. Such costs include, without limitation,
the following:
(1) Costs of studies, surveys, development of plans,
and specifications, implementation and administration of
the redevelopment plan including but not limited to staff
and professional service costs for architectural,
engineering, legal, financial, planning or other services,
provided however that no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after November 1, 1999 (the
effective date of Public Act 91-478), no contracts for
professional services, excluding architectural and
engineering services, may be entered into if the terms of
the contract extend beyond a period of 3 years. In
addition, "redevelopment project costs" shall not include
lobbying expenses. After consultation with the
municipality, each tax increment consultant or advisor to a
municipality that plans to designate or has designated a
redevelopment project area shall inform the municipality
in writing of any contracts that the consultant or advisor
has entered into with entities or individuals that have
received, or are receiving, payments financed by tax
increment revenues produced by the redevelopment project
area with respect to which the consultant or advisor has
performed, or will be performing, service for the
municipality. This requirement shall be satisfied by the

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consultant or advisor before the commencement of services
for the municipality and thereafter whenever any other
contracts with those individuals or entities are executed
by the consultant or advisor;
(1.5) After July 1, 1999, annual administrative costs
shall not include general overhead or administrative costs
of the municipality that would still have been incurred by
the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment
plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not limited
to acquisition of land and other property, real or
personal, or rights or interests therein, demolition of
buildings, site preparation, site improvements that serve
as an engineered barrier addressing ground level or below
ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or repair
or remodeling of existing public or private buildings,
fixtures, and leasehold improvements; and the cost of
replacing an existing public building if pursuant to the
implementation of a redevelopment project the existing

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public building is to be demolished to use the site for
private investment or devoted to a different use requiring
private investment; including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification;
(4) Costs of the construction of public works or
improvements, including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q)
of Section 11-74.4-3 unless either (i) the construction of
the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was
adopted by the municipality prior to November 1, 1999 or
(ii) the municipality makes a reasonable determination in
the redevelopment plan, supported by information that
provides the basis for that determination, that the new
municipal building is required to meet an increase in the

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need for public safety purposes anticipated to result from
the implementation of the redevelopment plan;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the redevelopment
project area;
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance
of obligations and which may include payment of interest on
any obligations issued hereunder including interest
accruing during the estimated period of construction of any
redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) To the extent the municipality by written agreement
accepts and approves the same, all or a portion of a taxing
district's capital costs resulting from the redevelopment
project necessarily incurred or to be incurred within a
taxing district in furtherance of the objectives of the
redevelopment plan and project.
(7.5) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after November 1, 1999, an elementary, secondary, or
unit school district's increased costs attributable to
assisted housing units located within the redevelopment

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project area for which the developer or redeveloper
receives financial assistance through an agreement with
the municipality or because the municipality incurs the
cost of necessary infrastructure improvements within the
boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by this Act, and
which costs shall be paid by the municipality from the
Special Tax Allocation Fund when the tax increment revenue
is received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any school
district in a municipality with a population in excess
of 1,000,000, by multiplying the district's increase
in attendance resulting from the net increase in new
students enrolled in that school district who reside in
housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of that
housing as authorized by this Act since the designation
of the redevelopment project area by the most recently
available per capita tuition cost as defined in Section
10-20.12a of the School Code less any increase in
general State aid as defined in Section 18-8.05 of the

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School Code or primary State aid as defined in Section
18-8.15 of the School Code attributable to these added
new students subject to the following annual
limitations:
(i) for unit school districts with a district
average 1995-96 Per Capita Tuition Charge of less
than $5,900, no more than 25% of the total amount
of property tax increment revenue produced by
those housing units that have received tax
increment finance assistance under this Act;
(ii) for elementary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 17% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act; and
(iii) for secondary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 8% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to or
more than $5,900, excluding any school district with a

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population in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act
since the designation of the redevelopment project
area by the most recently available per capita tuition
cost as defined in Section 10-20.12a of the School Code
less any increase in general state aid as defined in
Section 18-8.05 of the School Code or primary State aid
as defined in Section 18-8.15 of the School Code
attributable to these added new students subject to the
following annual limitations:
(i) for unit school districts, no more than 40%
of the total amount of property tax increment
revenue produced by those housing units that have
received tax increment finance assistance under
this Act;
(ii) for elementary school districts, no more
than 27% of the total amount of property tax
increment revenue produced by those housing units

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that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no more
than 13% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality with
a population in excess of 1,000,000, the following
restrictions shall apply to the reimbursement of
increased costs under this paragraph (7.5):
(i) no increased costs shall be reimbursed
unless the school district certifies that each of
the schools affected by the assisted housing
project is at or over its student capacity;
(ii) the amount reimbursable shall be reduced
by the value of any land donated to the school
district by the municipality or developer, and by
the value of any physical improvements made to the
schools by the municipality or developer; and
(iii) the amount reimbursed may not affect
amounts otherwise obligated by the terms of any
bonds, notes, or other funding instruments, or the
terms of any redevelopment agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before

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September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the school
district. If the school district fails to provide the
information during this period in any year, it shall
forfeit any claim to reimbursement for that year.
School districts may adopt a resolution waiving the
right to all or a portion of the reimbursement
otherwise required by this paragraph (7.5). By
acceptance of this reimbursement the school district
waives the right to directly or indirectly set aside,
modify, or contest in any manner the establishment of
the redevelopment project area or projects;
(7.7) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after January 1, 2005 (the effective date of Public
Act 93-961), a public library district's increased costs
attributable to assisted housing units located within the
redevelopment project area for which the developer or
redeveloper receives financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure
improvements within the boundaries of the assisted housing
sites necessary for the completion of that housing as

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authorized by this Act shall be paid to the library
district by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is received
as a result of the assisted housing units. This paragraph
(7.7) applies only if (i) the library district is located
in a county that is subject to the Property Tax Extension
Limitation Law or (ii) the library district is not located
in a county that is subject to the Property Tax Extension
Limitation Law but the district is prohibited by any other
law from increasing its tax levy rate without a prior voter
referendum.
The amount paid to a library district under this
paragraph (7.7) shall be calculated by multiplying (i) the
net increase in the number of persons eligible to obtain a
library card in that district who reside in housing units
within the redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the cost of
necessary infrastructure improvements within the
boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act since
the designation of the redevelopment project area by (ii)
the per-patron cost of providing library services so long
as it does not exceed $120. The per-patron cost shall be
the Total Operating Expenditures Per Capita for the library
in the previous fiscal year. The municipality may deduct

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from the amount that it must pay to a library district
under this paragraph any amount that it has voluntarily
paid to the library district from the tax increment
revenue. The amount paid to a library district under this
paragraph (7.7) shall be no more than 2% of the amount
produced by the assisted housing units and deposited into
the Special Tax Allocation Fund.
A library district is not eligible for any payment
under this paragraph (7.7) unless the library district has
experienced an increase in the number of patrons from the
municipality that created the tax-increment-financing
district since the designation of the redevelopment
project area.
Any library district seeking payment under this
paragraph (7.7) shall, after July 1 and before September 30
of each year, provide the municipality with convincing
evidence to support its claim for reimbursement before the
municipality shall be required to approve or make the
payment to the library district. If the library district
fails to provide the information during this period in any
year, it shall forfeit any claim to reimbursement for that
year. Library districts may adopt a resolution waiving the
right to all or a portion of the reimbursement otherwise
required by this paragraph (7.7). By acceptance of such
reimbursement, the library district shall forfeit any
right to directly or indirectly set aside, modify, or

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contest in any manner whatsoever the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a municipality
determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law or in order to satisfy subparagraph (7) of
subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or taxing
districts other than the municipality, are set forth in a
written agreement by or among the municipality and the
taxing district or taxing districts, which agreement
describes the program to be undertaken, including but not
limited to the number of employees to be trained, a
description of the training and services to be provided,
the number and type of positions available or to be
available, itemized costs of the program and sources of

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funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community
college districts of costs pursuant to Sections 3-37, 3-38,
3-40 and 3-40.1 of the Public Community College Act and by
school districts of costs pursuant to Sections 10-22.20a
and 10-23.3a of The School Code;
(11) Interest cost incurred by a redeveloper related to
the construction, renovation or rehabilitation of a
redevelopment project provided that:
(A) such costs are to be paid directly from the
special tax allocation fund established pursuant to
this Act;
(B) such payments in any one year may not exceed
30% of the annual interest costs incurred by the
redeveloper with regard to the redevelopment project
during that year;
(C) if there are not sufficient funds available in
the special tax allocation fund to make the payment
pursuant to this paragraph (11) then the amounts so due
shall accrue and be payable when sufficient funds are
available in the special tax allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project
costs excluding any property assembly costs and any

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relocation costs incurred by a municipality pursuant
to this Act; and
(E) the cost limits set forth in subparagraphs (B)
and (D) of paragraph (11) shall be modified for the
financing of rehabilitated or new housing units for
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act. The percentage of 75% shall be substituted
for 30% in subparagraphs (B) and (D) of paragraph (11).
(F) Instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding any
other provisions of this Act to the contrary, the
municipality may pay from tax increment revenues up to
50% of the cost of construction of new housing units to
be occupied by low-income households and very
low-income households as defined in Section 3 of the
Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under this
Act or other constitutional or statutory authority or
from other sources of municipal revenue that may be
reimbursed from tax increment revenues or the proceeds
of bonds issued to finance the construction of that
housing.
The eligible costs provided under this

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subparagraph (F) of paragraph (11) shall be an eligible
cost for the construction, renovation, and
rehabilitation of all low and very low-income housing
units, as defined in Section 3 of the Illinois
Affordable Housing Act, within the redevelopment
project area. If the low and very low-income units are
part of a residential redevelopment project that
includes units not affordable to low and very
low-income households, only the low and very
low-income units shall be eligible for benefits under
subparagraph (F) of paragraph (11). The standards for
maintaining the occupancy by low-income households and
very low-income households, as defined in Section 3 of
the Illinois Affordable Housing Act, of those units
constructed with eligible costs made available under
the provisions of this subparagraph (F) of paragraph
(11) shall be established by guidelines adopted by the
municipality. The responsibility for annually
documenting the initial occupancy of the units by
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act, shall be that of the then current owner of
the property. For ownership units, the guidelines will
provide, at a minimum, for a reasonable recapture of
funds, or other appropriate methods designed to
preserve the original affordability of the ownership

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units. For rental units, the guidelines will provide,
at a minimum, for the affordability of rent to low and
very low-income households. As units become available,
they shall be rented to income-eligible tenants. The
municipality may modify these guidelines from time to
time; the guidelines, however, shall be in effect for
as long as tax increment revenue is being used to pay
for costs associated with the units or for the
retirement of bonds issued to finance the units or for
the life of the redevelopment project area, whichever
is later.
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or a
portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area. For
the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income, adjusted
for family size, as the annual income and municipal,
county, or regional median income are determined from time
to time by the United States Department of Housing and

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Urban Development.
(12) Unless explicitly stated herein the cost of
construction of new privately-owned buildings shall not be
an eligible redevelopment project cost.
(13) After November 1, 1999 (the effective date of
Public Act 91-478), none of the redevelopment project costs
enumerated in this subsection shall be eligible
redevelopment project costs if those costs would provide
direct financial support to a retail entity initiating
operations in the redevelopment project area while
terminating operations at another Illinois location within
10 miles of the redevelopment project area but outside the
boundaries of the redevelopment project area municipality.
For purposes of this paragraph, termination means a closing
of a retail operation that is directly related to the
opening of the same operation or like retail entity owned
or operated by more than 50% of the original ownership in a
redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail
entity, as documented by the retail entity, subject to a
reasonable finding by the municipality that the current
location contained inadequate space, had become
economically obsolete, or was no longer a viable location
for the retailer or serviceman.
(14) No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or

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substantially modify a historic resource, after August 26,
2008 (the effective date of Public Act 95-934), unless no
prudent and feasible alternative exists. "Historic
resource" for the purpose of this item (14) means (i) a
place or structure that is included or eligible for
inclusion on the National Register of Historic Places or
(ii) a contributing structure in a district on the National
Register of Historic Places. This item (14) does not apply
to a place or structure for which demolition, removal, or
modification is subject to review by the preservation
agency of a Certified Local Government designated as such
by the National Park Service of the United States
Department of the Interior.
If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or Special
Service Area Tax Law may be used within the redevelopment
project area for the purposes permitted by that Act or Law as
well as the purposes permitted by this Act.
(q-1) For redevelopment project areas created pursuant to
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Regional Transportation Authority Suburban Transit
Access Route (STAR Line) station.
(r) "State Sales Tax Boundary" means the redevelopment

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project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue shall
certify pursuant to subsection (9) of Section 11-74.4-8a the
appropriate boundaries eligible for the determination of State
Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by retailers
and servicemen, other than retailers and servicemen subject to
the Public Utilities Act, on transactions at places of business
located within a State Sales Tax Boundary pursuant to the
Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
Tax Act, and the Service Occupation Tax Act, except such
portion of such increase that is paid into the State and Local
Sales Tax Reform Fund, the Local Government Distributive Fund,
the Local Government Tax Fund and the County and Mass Transit
District Fund, for as long as State participation exists, over
and above the Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts for such
taxes as certified by the Department of Revenue and paid under
those Acts by retailers and servicemen on transactions at
places of business located within the State Sales Tax Boundary
during the base year which shall be the calendar year
immediately prior to the year in which the municipality adopted
tax increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax Act

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and Service Use Tax Act and the Service Occupation Tax Act,
which sum shall be appropriated to the Department of Revenue to
cover its costs of administering and enforcing this Section.
For purposes of computing the aggregate amount of such taxes
for base years occurring prior to 1985, the Department of
Revenue shall compute the Initial Sales Tax Amount for such
taxes and deduct therefrom an amount equal to 4% of the
aggregate amount of taxes per year for each year the base year
is prior to 1985, but not to exceed a total deduction of 12%.
The amount so determined shall be known as the "Adjusted
Initial Sales Tax Amount". For purposes of determining the
State Sales Tax Increment the Department of Revenue shall for
each period subtract from the tax amounts received from
retailers and servicemen on transactions located in the State
Sales Tax Boundary, the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
the Service Use Tax Act and the Service Occupation Tax Act. For
the State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts received
from retailers and servicemen, which shall have deducted
therefrom nine-twelfths of the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised

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Initial Sales Tax Amounts as appropriate. For the State Fiscal
Year 1991, this calculation shall be made by utilizing the
period from October 1, 1988, until June 30, 1989, to determine
the tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts. Municipalities intending to receive
a distribution of State Sales Tax Increment must report a list
of retailers to the Department of Revenue by October 31, 1988
and by July 31, of each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by the
municipal corporate authorities to be necessary and directly
result from the redevelopment project.

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(v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the municipality
taken in that connection with respect to any previously
approved or designated redevelopment project area or amended
redevelopment project area are hereby validated and hereby
declared to be legally sufficient for all purposes of this Act.
For purposes of this Section and only for land subject to the
subdivision requirements of the Plat Act, land is subdivided
when the original plat of the proposed Redevelopment Project
Area or relevant portion thereof has been properly certified,
acknowledged, approved, and recorded or filed in accordance
with the Plat Act and a preliminary plat, if any, for any
subsequent phases of the proposed Redevelopment Project Area or
relevant portion thereof has been properly approved and filed
in accordance with the applicable ordinance of the
municipality.

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(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.
(y) "Green Globes certified" means any certification level
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
96-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
1-1-12.)
(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
Sec. 11-74.4-8. Tax increment allocation financing. A
municipality may not adopt tax increment financing in a
redevelopment project area after the effective date of this
amendatory Act of 1997 that will encompass an area that is
currently included in an enterprise zone created under the
Illinois Enterprise Zone Act unless that municipality,

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pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
amends the enterprise zone designating ordinance to limit the
eligibility for tax abatements as provided in Section 5.4.1 of
the Illinois Enterprise Zone Act. A municipality, at the time a
redevelopment project area is designated, may adopt tax
increment allocation financing by passing an ordinance
providing that the ad valorem taxes, if any, arising from the
levies upon taxable real property in such redevelopment project
area by taxing districts and tax rates determined in the manner
provided in paragraph (c) of Section 11-74.4-9 each year after
the effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Division have been paid shall
be divided as follows:
(a) That portion of taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such taxable lot,
block, tract or parcel of real property in the redevelopment
project area shall be allocated to and when collected shall be
paid by the county collector to the respective affected taxing
districts in the manner required by law in the absence of the
adoption of tax increment allocation financing.
(b) Except from a tax levied by a township to retire bonds
issued to satisfy court-ordered damages, that portion, if any,
of such taxes which is attributable to the increase in the

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current equalized assessed valuation of each taxable lot,
block, tract or parcel of real property in the redevelopment
project area over and above the initial equalized assessed
value of each property in the project area shall be allocated
to and when collected shall be paid to the municipal treasurer
who shall deposit said taxes into a special fund called the
special tax allocation fund of the municipality for the purpose
of paying redevelopment project costs and obligations incurred
in the payment thereof. In any county with a population of
3,000,000 or more that has adopted a procedure for collecting
taxes that provides for one or more of the installments of the
taxes to be billed and collected on an estimated basis, the
municipal treasurer shall be paid for deposit in the special
tax allocation fund of the municipality, from the taxes
collected from estimated bills issued for property in the
redevelopment project area, the difference between the amount
actually collected from each taxable lot, block, tract, or
parcel of real property within the redevelopment project area
and an amount determined by multiplying the rate at which taxes
were last extended against the taxable lot, block, track, or
parcel of real property in the manner provided in subsection
(c) of Section 11-74.4-9 by the initial equalized assessed
value of the property divided by the number of installments in
which real estate taxes are billed and collected within the
county; provided that the payments on or before December 31,
1999 to a municipal treasurer shall be made only if each of the

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following conditions are met:
(1) The total equalized assessed value of the
redevelopment project area as last determined was not less
than 175% of the total initial equalized assessed value.
(2) Not more than 50% of the total equalized assessed
value of the redevelopment project area as last determined
is attributable to a piece of property assigned a single
real estate index number.
(3) The municipal clerk has certified to the county
clerk that the municipality has issued its obligations to
which there has been pledged the incremental property taxes
of the redevelopment project area or taxes levied and
collected on any or all property in the municipality or the
full faith and credit of the municipality to pay or secure
payment for all or a portion of the redevelopment project
costs. The certification shall be filed annually no later
than September 1 for the estimated taxes to be distributed
in the following year; however, for the year 1992 the
certification shall be made at any time on or before March
31, 1992.
(4) The municipality has not requested that the total
initial equalized assessed value of real property be
adjusted as provided in subsection (b) of Section
11-74.4-9.
The conditions of paragraphs (1) through (4) do not apply
after December 31, 1999 to payments to a municipal treasurer

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made by a county with 3,000,000 or more inhabitants that has
adopted an estimated billing procedure for collecting taxes. If
a county that has adopted the estimated billing procedure makes
an erroneous overpayment of tax revenue to the municipal
treasurer, then the county may seek a refund of that
overpayment. The county shall send the municipal treasurer a
notice of liability for the overpayment on or before the
mailing date of the next real estate tax bill within the
county. The refund shall be limited to the amount of the
overpayment.
It is the intent of this Division that after the effective
date of this amendatory Act of 1988 a municipality's own ad
valorem tax arising from levies on taxable real property be
included in the determination of incremental revenue in the
manner provided in paragraph (c) of Section 11-74.4-9. If the
municipality does not extend such a tax, it shall annually
deposit in the municipality's Special Tax Increment Fund an
amount equal to 10% of the total contributions to the fund from
all other taxing districts in that year. The annual 10% deposit
required by this paragraph shall be limited to the actual
amount of municipally produced incremental tax revenues
available to the municipality from taxpayers located in the
redevelopment project area in that year if: (a) the plan for
the area restricts the use of the property primarily to
industrial purposes, (b) the municipality establishing the
redevelopment project area is a home-rule community with a 1990

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population of between 25,000 and 50,000, (c) the municipality
is wholly located within a county with a 1990 population of
over 750,000 and (d) the redevelopment project area was
established by the municipality prior to June 1, 1990. This
payment shall be in lieu of a contribution of ad valorem taxes
on real property. If no such payment is made, any redevelopment
project area of the municipality shall be dissolved.
If a municipality has adopted tax increment allocation
financing by ordinance and the County Clerk thereafter
certifies the "total initial equalized assessed value as
adjusted" of the taxable real property within such
redevelopment project area in the manner provided in paragraph
(b) of Section 11-74.4-9, each year after the date of the
certification of the total initial equalized assessed value as
adjusted until redevelopment project costs and all municipal
obligations financing redevelopment project costs have been
paid the ad valorem taxes, if any, arising from the levies upon
the taxable real property in such redevelopment project area by
taxing districts and tax rates determined in the manner
provided in paragraph (c) of Section 11-74.4-9 shall be divided
as follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract or parcel of real property which is
attributable to the lower of the current equalized assessed
value or "current equalized assessed value as adjusted" or
the initial equalized assessed value of each such taxable

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lot, block, tract, or parcel of real property existing at
the time tax increment financing was adopted, minus the
total current homestead exemptions under Article 15 of the
Property Tax Code in the redevelopment project area shall
be allocated to and when collected shall be paid by the
county collector to the respective affected taxing
districts in the manner required by law in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the redevelopment project area,
over and above the initial equalized assessed value of each
property existing at the time tax increment financing was
adopted, minus the total current homestead exemptions
pertaining to each piece of property provided by Article 15
of the Property Tax Code in the redevelopment project area,
shall be allocated to and when collected shall be paid to
the municipal Treasurer, who shall deposit said taxes into
a special fund called the special tax allocation fund of
the municipality for the purpose of paying redevelopment
project costs and obligations incurred in the payment
thereof.
The municipality may pledge in the ordinance the funds in
and to be deposited in the special tax allocation fund for the
payment of such costs and obligations. No part of the current

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equalized assessed valuation of each property in the
redevelopment project area attributable to any increase above
the total initial equalized assessed value, or the total
initial equalized assessed value as adjusted, of such
properties shall be used in calculating the general State
school aid formula, provided for in Section 18-8 of the School
Code, or the primary State aid formula, provided for in Section
18-8.15 of the School Code, until such time as all
redevelopment project costs have been paid as provided for in
this Section.
Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, such municipality may
provide by ordinance for the appointment of a trustee, which
may be any trust company within the State, and for the
establishment of such funds or accounts to be maintained by
such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If such
municipality provides for the appointment of a trustee, such
trustee shall be considered the assignee of any payments
assigned by the municipality pursuant to such ordinance and
this Section. Any amounts paid to such trustee as assignee
shall be deposited in the funds or accounts established
pursuant to such trust agreement, and shall be held by such
trustee in trust for the benefit of the holders of the bonds,
and such holders shall have a lien on and a security interest
in such funds or accounts so long as the bonds remain

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outstanding and unpaid. Upon retirement of the bonds, the
trustee shall pay over any excess amounts held to the
municipality for deposit in the special tax allocation fund.
When such redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Division, have been paid, all
surplus funds then remaining in the special tax allocation fund
shall be distributed by being paid by the municipal treasurer
to the Department of Revenue, the municipality and the county
collector; first to the Department of Revenue and the
municipality in direct proportion to the tax incremental
revenue received from the State and the municipality, but not
to exceed the total incremental revenue received from the State
or the municipality less any annual surplus distribution of
incremental revenue previously made; with any remaining funds
to be paid to the County Collector who shall immediately
thereafter pay said funds to the taxing districts in the
redevelopment project area in the same manner and proportion as
the most recent distribution by the county collector to the
affected districts of real property taxes from real property in
the redevelopment project area.
Upon the payment of all redevelopment project costs, the
retirement of obligations, the distribution of any excess
monies pursuant to this Section, and final closing of the books
and records of the redevelopment project area, the municipality
shall adopt an ordinance dissolving the special tax allocation

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fund for the redevelopment project area and terminating the
designation of the redevelopment project area as a
redevelopment project area. Title to real or personal property
and public improvements acquired by or for the municipality as
a result of the redevelopment project and plan shall vest in
the municipality when acquired and shall continue to be held by
the municipality after the redevelopment project area has been
terminated. Municipalities shall notify affected taxing
districts prior to November 1 if the redevelopment project area
is to be terminated by December 31 of that same year. If a
municipality extends estimated dates of completion of a
redevelopment project and retirement of obligations to finance
a redevelopment project, as allowed by this amendatory Act of
1993, that extension shall not extend the property tax
increment allocation financing authorized by this Section.
Thereafter the rates of the taxing districts shall be extended
and taxes levied, collected and distributed in the manner
applicable in the absence of the adoption of tax increment
allocation financing.
Nothing in this Section shall be construed as relieving
property in such redevelopment project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of such property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)

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(65 ILCS 5/11-74.6-35)
Sec. 11-74.6-35. Ordinance for tax increment allocation
financing.
(a) A municipality, at the time a redevelopment project
area is designated, may adopt tax increment allocation
financing by passing an ordinance providing that the ad valorem
taxes, if any, arising from the levies upon taxable real
property within the redevelopment project area by taxing
districts and tax rates determined in the manner provided in
subsection (b) of Section 11-74.6-40 each year after the
effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Act have been paid shall be
divided as follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract or parcel of real property that is
attributable to the lower of the current equalized assessed
value or the initial equalized assessed value or the
updated initial equalized assessed value of each taxable
lot, block, tract or parcel of real property in the
redevelopment project area shall be allocated to and when
collected shall be paid by the county collector to the
respective affected taxing districts in the manner
required by law without regard to the adoption of tax
increment allocation financing.

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(2) That portion, if any, of those taxes that is
attributable to the increase in the current equalized
assessed value of each taxable lot, block, tract or parcel
of real property in the redevelopment project area, over
and above the initial equalized assessed value or the
updated initial equalized assessed value of each property
in the project area, shall be allocated to and when
collected shall be paid by the county collector to the
municipal treasurer who shall deposit that portion of those
taxes into a special fund called the special tax allocation
fund of the municipality for the purpose of paying
redevelopment project costs and obligations incurred in
the payment of those costs and obligations. In any county
with a population of 3,000,000 or more that has adopted a
procedure for collecting taxes that provides for one or
more of the installments of the taxes to be billed and
collected on an estimated basis, the municipal treasurer
shall be paid for deposit in the special tax allocation
fund of the municipality, from the taxes collected from
estimated bills issued for property in the redevelopment
project area, the difference between the amount actually
collected from each taxable lot, block, tract, or parcel of
real property within the redevelopment project area and an
amount determined by multiplying the rate at which taxes
were last extended against the taxable lot, block, track,
or parcel of real property in the manner provided in

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subsection (b) of Section 11-74.6-40 by the initial
equalized assessed value or the updated initial equalized
assessed value of the property divided by the number of
installments in which real estate taxes are billed and
collected within the county, provided that the payments on
or before December 31, 1999 to a municipal treasurer shall
be made only if each of the following conditions are met:
(A) The total equalized assessed value of the
redevelopment project area as last determined was not
less than 175% of the total initial equalized assessed
value.
(B) Not more than 50% of the total equalized
assessed value of the redevelopment project area as
last determined is attributable to a piece of property
assigned a single real estate index number.
(C) The municipal clerk has certified to the county
clerk that the municipality has issued its obligations
to which there has been pledged the incremental
property taxes of the redevelopment project area or
taxes levied and collected on any or all property in
the municipality or the full faith and credit of the
municipality to pay or secure payment for all or a
portion of the redevelopment project costs. The
certification shall be filed annually no later than
September 1 for the estimated taxes to be distributed
in the following year.

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The conditions of paragraphs (A) through (C) do not apply
after December 31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has
adopted an estimated billing procedure for collecting taxes. If
a county that has adopted the estimated billing procedure makes
an erroneous overpayment of tax revenue to the municipal
treasurer, then the county may seek a refund of that
overpayment. The county shall send the municipal treasurer a
notice of liability for the overpayment on or before the
mailing date of the next real estate tax bill within the
county. The refund shall be limited to the amount of the
overpayment.
(b) It is the intent of this Act that a municipality's own
ad valorem tax arising from levies on taxable real property be
included in the determination of incremental revenue in the
manner provided in paragraph (b) of Section 11-74.6-40.
(c) If a municipality has adopted tax increment allocation
financing for a redevelopment project area by ordinance and the
county clerk thereafter certifies the total initial equalized
assessed value or the total updated initial equalized assessed
value of the taxable real property within such redevelopment
project area in the manner provided in paragraph (a) or (b) of
Section 11-74.6-40, each year after the date of the
certification of the total initial equalized assessed value or
the total updated initial equalized assessed value until
redevelopment project costs and all municipal obligations

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financing redevelopment project costs have been paid, the ad
valorem taxes, if any, arising from the levies upon the taxable
real property in the redevelopment project area by taxing
districts and tax rates determined in the manner provided in
paragraph (b) of Section 11-74.6-40 shall be divided as
follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract or parcel of real property that is
attributable to the lower of the current equalized assessed
value or the initial equalized assessed value, or the
updated initial equalized assessed value of each parcel if
the updated initial equalized assessed value of that parcel
has been certified in accordance with Section 11-74.6-40,
whichever has been most recently certified, of each taxable
lot, block, tract, or parcel of real property existing at
the time tax increment allocation financing was adopted in
the redevelopment project area, shall be allocated to and
when collected shall be paid by the county collector to the
respective affected taxing districts in the manner
required by law without regard to the adoption of tax
increment allocation financing.
(2) That portion, if any, of those taxes that is
attributable to the increase in the current equalized
assessed value of each taxable lot, block, tract, or parcel
of real property in the redevelopment project area, over
and above the initial equalized assessed value of each

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property existing at the time tax increment allocation
financing was adopted in the redevelopment project area, or
the updated initial equalized assessed value of each parcel
if the updated initial equalized assessed value of that
parcel has been certified in accordance with Section
11-74.6-40, shall be allocated to and when collected shall
be paid to the municipal treasurer, who shall deposit those
taxes into a special fund called the special tax allocation
fund of the municipality for the purpose of paying
redevelopment project costs and obligations incurred in
the payment thereof.
(d) The municipality may pledge in the ordinance the funds
in and to be deposited in the special tax allocation fund for
the payment of redevelopment project costs and obligations. No
part of the current equalized assessed value of each property
in the redevelopment project area attributable to any increase
above the total initial equalized assessed value or the total
initial updated equalized assessed value of the property, shall
be used in calculating the general General State aid formula
School Aid Formula, provided for in Section 18-8 of the School
Code, or the primary State aid formula, provided for in Section
18-8.15 of the School Code, until all redevelopment project
costs have been paid as provided for in this Section.
Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, that municipality may
provide by ordinance for the appointment of a trustee, which

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may be any trust company within the State, and for the
establishment of any funds or accounts to be maintained by that
trustee, as the municipality deems necessary to provide for the
security and payment of the bonds. If the municipality provides
for the appointment of a trustee, the trustee shall be
considered the assignee of any payments assigned by the
municipality under that ordinance and this Section. Any amounts
paid to the trustee as assignee shall be deposited into the
funds or accounts established under the trust agreement, and
shall be held by the trustee in trust for the benefit of the
holders of the bonds. The holders of those bonds shall have a
lien on and a security interest in those funds or accounts
while the bonds remain outstanding and unpaid. Upon retirement
of the bonds, the trustee shall pay over any excess amounts
held to the municipality for deposit in the special tax
allocation fund.
When the redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Law, have been paid, all
surplus funds then remaining in the special tax allocation fund
shall be distributed by being paid by the municipal treasurer
to the municipality and the county collector; first to the
municipality in direct proportion to the tax incremental
revenue received from the municipality, but not to exceed the
total incremental revenue received from the municipality,
minus any annual surplus distribution of incremental revenue

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previously made. Any remaining funds shall be paid to the
county collector who shall immediately distribute that payment
to the taxing districts in the redevelopment project area in
the same manner and proportion as the most recent distribution
by the county collector to the affected districts of real
property taxes from real property situated in the redevelopment
project area.
Upon the payment of all redevelopment project costs,
retirement of obligations and the distribution of any excess
moneys under this Section, the municipality shall adopt an
ordinance dissolving the special tax allocation fund for the
redevelopment project area and terminating the designation of
the redevelopment project area as a redevelopment project area.
Thereafter the tax levies of taxing districts shall be
extended, collected and distributed in the same manner
applicable before the adoption of tax increment allocation
financing. Municipality shall notify affected taxing districts
prior to November if the redevelopment project area is to be
terminated by December 31 of that same year.
Nothing in this Section shall be construed as relieving
property in a redevelopment project area from being assessed as
provided in the Property Tax Code or as relieving owners of
that property from paying a uniform rate of taxes, as required
by Section 4 of Article IX of the Illinois Constitution.
(Source: P.A. 91-474, eff. 11-1-99.)

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Section 940. The Economic Development Project Area Tax
Increment Allocation Act of 1995 is amended by changing Section
50 as follows:
(65 ILCS 110/50)
Sec. 50. Special tax allocation fund.
(a) If a county clerk has certified the "total initial
equalized assessed value" of the taxable real property within
an economic development project area in the manner provided in
Section 45, each year after the date of the certification by
the county clerk of the "total initial equalized assessed
value", until economic development project costs and all
municipal obligations financing economic development project
costs have been paid, the ad valorem taxes, if any, arising
from the levies upon the taxable real property in the economic
development project area by taxing districts and tax rates
determined in the manner provided in subsection (b) of Section
45 shall be divided as follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract, or parcel of real property that is
attributable to the lower of the current equalized assessed
value or the initial equalized assessed value of each
taxable lot, block, tract, or parcel of real property
existing at the time tax increment financing was adopted
shall be allocated to (and when collected shall be paid by
the county collector to) the respective affected taxing

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districts in the manner required by law in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of the taxes that is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the economic development project
area, over and above the initial equalized assessed value
of each property existing at the time tax increment
financing was adopted, shall be allocated to (and when
collected shall be paid to) the municipal treasurer, who
shall deposit the taxes into a special fund (called the
special tax allocation fund of the municipality) for the
purpose of paying economic development project costs and
obligations incurred in the payment of those costs.
(b) The municipality, by an ordinance adopting tax
increment allocation financing, may pledge the monies in and to
be deposited into the special tax allocation fund for the
payment of obligations issued under this Act and for the
payment of economic development project costs. No part of the
current equalized assessed valuation of each property in the
economic development project area attributable to any increase
above the total initial equalized assessed value of those
properties shall be used in calculating the general State
school aid formula under Section 18-8 of the School Code or the
primary State aid formula under Section 18-8.15 of the School
Code, until all economic development projects costs have been

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paid as provided for in this Section.
(c) When the economic development projects costs,
including without limitation all municipal obligations
financing economic development project costs incurred under
this Act, have been paid, all surplus monies then remaining in
the special tax allocation fund shall be distributed by being
paid by the municipal treasurer to the county collector, who
shall immediately pay the monies to the taxing districts having
taxable property in the economic development project area in
the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real
property taxes from real property in the economic development
project area.
(d) Upon the payment of all economic development project
costs, retirement of obligations, and distribution of any
excess monies under this Section and not later than 23 years
from the date of the adoption of the ordinance establishing the
economic development project area, the municipality shall
adopt an ordinance dissolving the special tax allocation fund
for the economic development project area and terminating the
designation of the economic development project area as an
economic development project area. Thereafter, the rates of the
taxing districts shall be extended and taxes shall be levied,
collected, and distributed in the manner applicable in the
absence of the adoption of tax increment allocation financing.
(e) Nothing in this Section shall be construed as relieving

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property in the economic development project areas from being
assessed as provided in the Property Tax Code or as relieving
owners or lessees of that property from paying a uniform rate
of taxes as required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)
Section 945. The School Code is amended by changing
Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
1F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
2-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a,
10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
13B-50.10, 13B-50.15, 14-7.02b, 14-7.03, 14-13.01, 14C-12,
17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
18-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5,
34-2.3, 34-8.4, 34-18, 34-18.30, and 34-43.1 and by adding
Section 18-8.15 as follows:
(105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
Sec. 1A-8. Powers of the Board in Assisting Districts
Deemed in Financial Difficulties. To promote the financial
integrity of school districts, the State Board of Education
shall be provided the necessary powers to promote sound
financial management and continue operation of the public
schools.
(a) The State Superintendent of Education may require a

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school district, including any district subject to Article 34A
of this Code, to share financial information relevant to a
proper investigation of the district's financial condition and
the delivery of appropriate State financial, technical, and
consulting services to the district if the district (i) has
been designated, through the State Board of Education's School
District Financial Profile System, as on financial warning or
financial watch status, (ii) has failed to file an annual
financial report, annual budget, deficit reduction plan, or
other financial information as required by law, (iii) has been
identified, through the district's annual audit or other
financial and management information, as in serious financial
difficulty in the current or next school year, or (iv) is
determined to be likely to fail to fully meet any regularly
scheduled, payroll-period obligations when due or any debt
service payments when due or both. In addition to financial,
technical, and consulting services provided by the State Board
of Education, at the request of a school district, the State
Superintendent may provide for an independent financial
consultant to assist the district review its financial
condition and options.
(b) The State Board of Education, after proper
investigation of a district's financial condition, may certify
that a district, including any district subject to Article 34A,
is in financial difficulty when any of the following conditions
occur:

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(1) The district has issued school or teacher orders
for wages as permitted in Sections 8-16, 32-7.2 and 34-76
of this Code.
(2) The district has issued tax anticipation warrants
or tax anticipation notes in anticipation of a second
year's taxes when warrants or notes in anticipation of
current year taxes are still outstanding, as authorized by
Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
issued short-term debt against 2 future revenue sources,
such as, but not limited to, tax anticipation warrants and
general State aid or primary State aid Aid certificates or
tax anticipation warrants and revenue anticipation notes.
(3) The district has for 2 consecutive years shown an
excess of expenditures and other financing uses over
revenues and other financing sources and beginning fund
balances on its annual financial report for the aggregate
totals of the Educational, Operations and Maintenance,
Transportation, and Working Cash Funds.
(4) The district refuses to provide financial
information or cooperate with the State Superintendent in
an investigation of the district's financial condition.
(5) The district is likely to fail to fully meet any
regularly scheduled, payroll-period obligations when due
or any debt service payments when due or both.
No school district shall be certified by the State Board of
Education to be in financial difficulty solely by reason of any

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of the above circumstances arising as a result of (i) the
failure of the county to make any distribution of property tax
money due the district at the time such distribution is due or
(ii) the failure of this State to make timely payments of
general State aid, primary State aid, or any of the mandated
categoricals; or if the district clearly demonstrates to the
satisfaction of the State Board of Education at the time of its
determination that such condition no longer exists. If the
State Board of Education certifies that a district in a city
with 500,000 inhabitants or more is in financial difficulty,
the State Board shall so notify the Governor and the Mayor of
the city in which the district is located. The State Board of
Education may require school districts certified in financial
difficulty, except those districts subject to Article 34A, to
develop, adopt and submit a financial plan within 45 days after
certification of financial difficulty. The financial plan
shall be developed according to guidelines presented to the
district by the State Board of Education within 14 days of
certification. Such guidelines shall address the specific
nature of each district's financial difficulties. Any proposed
budget of the district shall be consistent with the financial
plan submitted to and approved by the State Board of Education.
A district certified to be in financial difficulty, other
than a district subject to Article 34A, shall report to the
State Board of Education at such times and in such manner as
the State Board may direct, concerning the district's

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compliance with each financial plan. The State Board may review
the district's operations, obtain budgetary data and financial
statements, require the district to produce reports, and have
access to any other information in the possession of the
district that it deems relevant. The State Board may issue
recommendations or directives within its powers to the district
to assist in compliance with the financial plan. The district
shall produce such budgetary data, financial statements,
reports and other information and comply with such directives.
If the State Board of Education determines that a district has
failed to comply with its financial plan, the State Board of
Education may rescind approval of the plan and appoint a
Financial Oversight Panel for the district as provided in
Section 1B-4. This action shall be taken only after the
district has been given notice and an opportunity to appear
before the State Board of Education to discuss its failure to
comply with its financial plan.
No bonds, notes, teachers orders, tax anticipation
warrants or other evidences of indebtedness shall be issued or
sold by a school district or be legally binding upon or
enforceable against a local board of education of a district
certified to be in financial difficulty unless and until the
financial plan required under this Section has been approved by
the State Board of Education.
Any financial profile compiled and distributed by the State
Board of Education in Fiscal Year 2009 or any fiscal year

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thereafter shall incorporate such adjustments as may be needed
in the profile scores to reflect the financial effects of the
inability or refusal of the State of Illinois to make timely
disbursements of any general State aid, primary State aid, or
mandated categorical aid payments due school districts or to
fully reimburse school districts for mandated categorical
programs pursuant to reimbursement formulas provided in this
School Code.
(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
97-429, eff. 8-16-11.)
(105 ILCS 5/1B-5) (from Ch. 122, par. 1B-5)
Sec. 1B-5. When a petition for emergency financial
assistance for a school district is allowed by the State Board
under Section 1B-4, the State Superintendent shall within 10
days thereafter appoint 3 members to serve at the State
Superintendent's pleasure on a Financial Oversight Panel for
the district. The State Superintendent shall designate one of
the members of the Panel to serve as its Chairman. In the event
of vacancy or resignation the State Superintendent shall
appoint a successor within 10 days of receiving notice thereof.
Members of the Panel shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. A member of the Panel may not be a board
member or employee of the district for which the Panel is

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constituted, nor may a member have a direct financial interest
in that district.
Panel members shall serve without compensation, but may be
reimbursed for travel and other necessary expenses incurred in
the performance of their official duties by the State Board.
The amount reimbursed Panel members for their expenses shall be
charged to the school district as part of any emergency
financial assistance and incorporated as a part of the terms
and conditions for repayment of such assistance or shall be
deducted from the district's general State aid or primary State
aid as provided in Section 1B-8.
The first meeting of the Panel shall be held at the call of
the Chairman. The Panel may elect such other officers as it
deems appropriate. The Panel shall prescribe the times and
places for its meetings and the manner in which regular and
special meetings may be called, and shall comply with the Open
Meetings Act.
Two members of the Panel shall constitute a quorum, and the
affirmative vote of 2 members shall be necessary for any
decision or action to be taken by the Panel.
The Panel and the State Superintendent shall cooperate with
each other in the exercise of their respective powers. The
Panel shall report not later than September 1 annually to the
State Board and the State Superintendent with respect to its
activities and the condition of the school district for the
previous fiscal year.

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Any Financial Oversight Panel established under this
Article shall remain in existence for not less than 3 years nor
more than 10 years from the date the State Board grants the
petition under Section 1B-4. If after 3 years the school
district has repaid all of its obligations resulting from
emergency State financial assistance provided under this
Article and has improved its financial situation, the board of
education may, not more frequently than once in any 12 month
period, petition the State Board to dissolve the Financial
Oversight Panel, terminate the oversight responsibility, and
remove the district's certification under Section 1A-8 as a
district in financial difficulty. In acting on such a petition
the State Board shall give additional weight to the
recommendations of the State Superintendent and the Financial
Oversight Panel.
(Source: P.A. 88-618, eff. 9-9-94.)
(105 ILCS 5/1B-6) (from Ch. 122, par. 1B-6)
Sec. 1B-6. General powers. The purpose of the Financial
Oversight Panel shall be to exercise financial control over the
board of education, and, when approved by the State Board and
the State Superintendent of Education, to furnish financial
assistance so that the board can provide public education
within the board's jurisdiction while permitting the board to
meet its obligations to its creditors and the holders of its
notes and bonds. Except as expressly limited by this Article,

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the Panel shall have all powers necessary to meet its
responsibilities and to carry out its purposes and the purposes
of this Article, including, but not limited to, the following
powers:
(a) to sue and be sued;
(b) to provide for its organization and internal
management;
(c) to appoint a Financial Administrator to serve as the
chief executive officer of the Panel. The Financial
Administrator may be an individual, partnership, corporation,
including an accounting firm, or other entity determined by the
Panel to be qualified to serve; and to appoint other officers,
agents, and employees of the Panel, define their duties and
qualifications and fix their compensation and employee
benefits;
(d) to approve the local board of education appointments to
the positions of treasurer in a Class I county school unit and
in each school district which forms a part of a Class II county
school unit but which no longer is subject to the jurisdiction
and authority of a township treasurer or trustees of schools of
a township because the district has withdrawn from the
jurisdiction and authority of the township treasurer and the
trustees of schools of the township or because those offices
have been abolished as provided in subsection (b) or (c) of
Section 5-1, and chief school business official, if such
official is not the superintendent of the district. Either the

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board or the Panel may remove such treasurer or chief school
business official;
(e) to approve any and all bonds, notes, teachers orders,
tax anticipation warrants, and other evidences of indebtedness
prior to issuance or sale by the school district; and
notwithstanding any other provision of The School Code, as now
or hereafter amended, no bonds, notes, teachers orders, tax
anticipation warrants or other evidences of indebtedness shall
be issued or sold by the school district or be legally binding
upon or enforceable against the local board of education unless
and until the approval of the Panel has been received;
(f) to approve all property tax levies of the school
district and require adjustments thereto as the Panel deems
necessary or advisable;
(g) to require and approve a school district financial
plan;
(h) to approve and require revisions of the school district
budget;
(i) to approve all contracts and other obligations as the
Panel deems necessary and appropriate;
(j) to authorize emergency State financial assistance,
including requirements regarding the terms and conditions of
repayment of such assistance, and to require the board of
education to levy a separate local property tax, subject to the
limitations of Section 1B-8, sufficient to repay such
assistance consistent with the terms and conditions of

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repayment and the district's approved financial plan and
budget;
(k) to request the regional superintendent to make
appointments to fill all vacancies on the local school board as
provided in Section 10-10;
(l) to recommend dissolution or reorganization of the
school district to the General Assembly if in the Panel's
judgment the circumstances so require;
(m) to direct a phased reduction in the oversight
responsibilities of the Financial Administrator and of the
Panel as the circumstances permit;
(n) to determine the amount of emergency State financial
assistance to be made available to the school district, and to
establish an operating budget for the Panel to be supported by
funds available from such assistance, with the assistance and
the budget required to be approved by the State Superintendent;
(o) to procure insurance against any loss in such amounts
and from such insurers as it deems necessary;
(p) to engage the services of consultants for rendering
professional and technical assistance and advice on matters
within the Panel's power;
(q) to contract for and to accept any gifts, grants or
loans of funds or property or financial or other aid in any
form from the federal government, State government, unit of
local government, school district or any agency or
instrumentality thereof, or from any other private or public

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source, and to comply with the terms and conditions thereof;
(r) to pay the expenses of its operations based on the
Panel's budget as approved by the State Superintendent from
emergency financial assistance funds available to the district
or from deductions from the district's general State aid or
primary State aid;
(s) to do any and all things necessary or convenient to
carry out its purposes and exercise the powers given to the
Panel by this Article; and
(t) to recommend the creation of a school finance authority
pursuant to Article 1F of this Code.
(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
(105 ILCS 5/1B-7) (from Ch. 122, par. 1B-7)
Sec. 1B-7. Financial Administrator; Powers and Duties. The
Financial Administrator appointed by the Financial Oversight
Panel shall serve as the Panel's chief executive officer. The
Financial Administrator shall exercise the powers and duties
required by the Panel, including but not limited to the
following:
(a) to provide guidance and recommendations to the local
board and officials of the school district in developing the
district's financial plan and budget prior to board action;
(b) to direct the local board to reorganize its financial
accounts, budgetary systems, and internal accounting and
financial controls, in whatever manner the Panel deems

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appropriate to achieve greater financial responsibility and to
reduce financial inefficiency, and to provide technical
assistance to aid the district in accomplishing the
reorganization;
(c) to make recommendations to the Financial Oversight
Panel concerning the school district's financial plan and
budget, and all other matters within the scope of the Panel's
authority;
(d) to prepare and recommend to the Panel a proposal for
emergency State financial assistance for the district,
including recommended terms and conditions of repayment, and an
operations budget for the Panel to be funded from the emergency
assistance or from deductions from the district's general State
aid or primary State aid;
(e) to require the local board to prepare and submit
preliminary staffing and budgetary analyses annually prior to
February 1 in such manner and form as the Financial
Administrator shall prescribe; and
(f) subject to the direction of the Panel, to do all other
things necessary or convenient to carry out its purposes and
exercise the powers given to the Panel under this Article.
(Source: P.A. 88-618, eff. 9-9-94.)
(105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
Sec. 1B-8. There is created in the State Treasury a special
fund to be known as the School District Emergency Financial

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Assistance Fund (the "Fund"). The School District Emergency
Financial Assistance Fund shall consist of appropriations,
loan repayments, grants from the federal government, and
donations from any public or private source. Moneys in the Fund
may be appropriated only to the Illinois Finance Authority and
the State Board for those purposes authorized under this
Article and Articles 1F and 1H of this Code. The appropriation
may be allocated and expended by the State Board for
contractual services to provide technical assistance or
consultation to school districts to assess their financial
condition and to Financial Oversight Panels that petition for
emergency financial assistance grants. The Illinois Finance
Authority may provide loans to school districts which are the
subject of an approved petition for emergency financial
assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
Neither the State Board of Education nor the Illinois Finance
Authority may collect any fees for providing these services.
From the amount allocated to each such school district
under this Article the State Board shall identify a sum
sufficient to cover all approved costs of the Financial
Oversight Panel established for the respective school
district. If the State Board and State Superintendent of
Education have not approved emergency financial assistance in
conjunction with the appointment of a Financial Oversight
Panel, the Panel's approved costs shall be paid from deductions
from the district's general State aid or primary State aid.

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The Financial Oversight Panel may prepare and file with the
State Superintendent a proposal for emergency financial
assistance for the school district and for its operations
budget. No expenditures from the Fund shall be authorized by
the State Superintendent until he or she has approved the
request of the Panel, either as submitted or in such lesser
amount determined by the State Superintendent.
The maximum amount of an emergency financial assistance
loan which may be allocated to any school district under this
Article, including moneys necessary for the operations of the
Panel, shall not exceed $4,000 times the number of pupils
enrolled in the school district during the school year ending
June 30 prior to the date of approval by the State Board of the
petition for emergency financial assistance, as certified to
the local board and the Panel by the State Superintendent. An
emergency financial assistance grant shall not exceed $1,000
times the number of such pupils. A district may receive both a
loan and a grant.
The payment of an emergency State financial assistance
grant or loan shall be subject to appropriation by the General
Assembly. Payment of the emergency State financial assistance
loan is subject to the applicable provisions of the Illinois
Finance Authority Act. Emergency State financial assistance
allocated and paid to a school district under this Article may
be applied to any fund or funds from which the local board of
education of that district is authorized to make expenditures

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by law.
Any emergency financial assistance grant proposed by the
Financial Oversight Panel and approved by the State
Superintendent may be paid in its entirety during the initial
year of the Panel's existence or spread in equal or declining
amounts over a period of years not to exceed the period of the
Panel's existence. An emergency financial assistance loan
proposed by the Financial Oversight Panel and approved by the
Illinois Finance Authority may be paid in its entirety during
the initial year of the Panel's existence or spread in equal or
declining amounts over a period of years not to exceed the
period of the Panel's existence. All loans made by the Illinois
Finance Authority for a school district shall be required to be
repaid, with simple interest over the term of the loan at a
rate equal to 50% of the one-year Constant Maturity Treasury
(CMT) yield as last published by the Board of Governors of the
Federal Reserve System before the date on which the district's
loan is approved by the Illinois Finance Authority, not later
than the date the Financial Oversight Panel ceases to exist.
The Panel shall establish and the Illinois Finance Authority
shall approve the terms and conditions, including the schedule,
of repayments. The schedule shall provide for repayments
commencing July 1 of each year or upon each fiscal year's
receipt of moneys from a tax levy for emergency financial
assistance. Repayment shall be incorporated into the annual
budget of the school district and may be made from any fund or

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funds of the district in which there are moneys available. An
emergency financial assistance loan to the Panel or district
shall not be considered part of the calculation of a district's
debt for purposes of the limitation specified in Section 19-1
of this Code. Default on repayment is subject to the Illinois
Grant Funds Recovery Act. When moneys are repaid as provided
herein they shall not be made available to the local board for
further use as emergency financial assistance under this
Article at any time thereafter. All repayments required to be
made by a school district shall be received by the State Board
and deposited in the School District Emergency Financial
Assistance Fund.
In establishing the terms and conditions for the repayment
obligation of the school district the Panel shall annually
determine whether a separate local property tax levy is
required. The board of any school district with a tax rate for
educational purposes for the prior year of less than 120% of
the maximum rate for educational purposes authorized by Section
17-2 shall provide for a separate tax levy for emergency
financial assistance repayment purposes. Such tax levy shall
not be subject to referendum approval. The amount of the levy
shall be equal to the amount necessary to meet the annual
repayment obligations of the district as established by the
Panel, or 20% of the amount levied for educational purposes for
the prior year, whichever is less. However, no district shall
be required to levy the tax if the district's operating tax

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rate as determined under Section 18-8, or 18-8.05, or 18-8.15
exceeds 200% of the district's tax rate for educational
purposes for the prior year.
(Source: P.A. 97-429, eff. 8-16-11.)
(105 ILCS 5/1C-1)
Sec. 1C-1. Purpose. The purpose of this Article is to
permit greater flexibility and efficiency in the distribution
and use of certain State funds available to local education
agencies for the improvement of the quality of educational
services pursuant to locally established priorities.
Through fiscal year 2014, this This Article does not apply
to school districts having a population in excess of 500,000
inhabitants.
(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
89-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
(105 ILCS 5/1C-2)
Sec. 1C-2. Block grants.
(a) For fiscal year 1999, and each fiscal year thereafter,
the State Board of Education shall award to school districts
block grants as described in subsection (c). The State Board of
Education may adopt rules and regulations necessary to
implement this Section. In accordance with Section 2-3.32, all
state block grants are subject to an audit. Therefore, block
grant receipts and block grant expenditures shall be recorded

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to the appropriate fund code.
(b) (Blank).
(c) An Early Childhood Education Block Grant shall be
created by combining the following programs: Preschool
Education, Parental Training and Prevention Initiative. These
funds shall be distributed to school districts and other
entities on a competitive basis, except that the State Board of
Education shall award to a school district having a population
exceeding 500,000 inhabitants 37% of the funds in each fiscal
year. Not less than 11% of this grant shall be used to fund
programs for children ages 0-3, which percentage shall increase
to at least 20% by Fiscal Year 2015. However, if, in a given
fiscal year, the amount appropriated for the Early Childhood
Education Block Grant is insufficient to increase the
percentage of the grant to fund programs for children ages 0-3
without reducing the amount of the grant for existing providers
of preschool education programs, then the percentage of the
grant to fund programs for children ages 0-3 may be held steady
instead of increased.
(Source: P.A. 95-793, eff. 1-1-09; 96-423, eff. 8-13-09.)
(105 ILCS 5/1D-1)
Sec. 1D-1. Block grant funding.
(a) For fiscal year 1996 through fiscal year 2014 and each
fiscal year thereafter, the State Board of Education shall
award to a school district having a population exceeding

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500,000 inhabitants a general education block grant and an
educational services block grant, determined as provided in
this Section, in lieu of distributing to the district separate
State funding for the programs described in subsections (b) and
(c). The provisions of this Section, however, do not apply to
any federal funds that the district is entitled to receive. In
accordance with Section 2-3.32, all block grants are subject to
an audit. Therefore, block grant receipts and block grant
expenditures shall be recorded to the appropriate fund code for
the designated block grant.
(b) The general education block grant shall include the
following programs: REI Initiative, Summer Bridges, Preschool
At Risk, K-6 Comprehensive Arts, School Improvement Support,
Urban Education, Scientific Literacy, Substance Abuse
Prevention, Second Language Planning, Staff Development,
Outcomes and Assessment, K-6 Reading Improvement, 7-12
Continued Reading Improvement, Truants' Optional Education,
Hispanic Programs, Agriculture Education, Parental Education,
Prevention Initiative, Report Cards, and Criminal Background
Investigations. Notwithstanding any other provision of law,
all amounts paid under the general education block grant from
State appropriations to a school district in a city having a
population exceeding 500,000 inhabitants shall be appropriated
and expended by the board of that district for any of the
programs included in the block grant or any of the board's
lawful purposes.

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(c) The educational services block grant shall include the
following programs: Regular and Vocational Transportation,
State Lunch and Free Breakfast Program, Special Education
(Personnel, Transportation, Orphanage, Private Tuition),
funding for children requiring special education services,
Summer School, Educational Service Centers, and
Administrator's Academy. This subsection (c) does not relieve
the district of its obligation to provide the services required
under a program that is included within the educational
services block grant. It is the intention of the General
Assembly in enacting the provisions of this subsection (c) to
relieve the district of the administrative burdens that impede
efficiency and accompany single-program funding. The General
Assembly encourages the board to pursue mandate waivers
pursuant to Section 2-3.25g.
The funding program included in the educational services
block grant for funding for children requiring special
education services in each fiscal year shall be treated in that
fiscal year as a payment to the school district in respect of
services provided or costs incurred in the prior fiscal year,
calculated in each case as provided in this Section. Nothing in
this Section shall change the nature of payments for any
program that, apart from this Section, would be or, prior to
adoption or amendment of this Section, was on the basis of a
payment in a fiscal year in respect of services provided or
costs incurred in the prior fiscal year, calculated in each

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case as provided in this Section.
(d) For fiscal year 1996 through fiscal year 2014 and each
fiscal year thereafter, the amount of the district's block
grants shall be determined as follows: (i) with respect to each
program that is included within each block grant, the district
shall receive an amount equal to the same percentage of the
current fiscal year appropriation made for that program as the
percentage of the appropriation received by the district from
the 1995 fiscal year appropriation made for that program, and
(ii) the total amount that is due the district under the block
grant shall be the aggregate of the amounts that the district
is entitled to receive for the fiscal year with respect to each
program that is included within the block grant that the State
Board of Education shall award the district under this Section
for that fiscal year. In the case of the Summer Bridges
program, the amount of the district's block grant shall be
equal to 44% of the amount of the current fiscal year
appropriation made for that program.
(e) The district is not required to file any application or
other claim in order to receive the block grants to which it is
entitled under this Section. The State Board of Education shall
make payments to the district of amounts due under the
district's block grants on a schedule determined by the State
Board of Education.
(f) A school district to which this Section applies shall
report to the State Board of Education on its use of the block

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grants in such form and detail as the State Board of Education
may specify. In addition, the report must include the following
description for the district, which must also be reported to
the General Assembly: block grant allocation and expenditures
by program; population and service levels by program; and
administrative expenditures by program. The State Board of
Education shall ensure that the reporting requirements for the
district are the same as for all other school districts in this
State.
(g) Through fiscal year 2014, this This paragraph provides
for the treatment of block grants under Article 1C for purposes
of calculating the amount of block grants for a district under
this Section. Those block grants under Article 1C are, for this
purpose, treated as included in the amount of appropriation for
the various programs set forth in paragraph (b) above. The
appropriation in each current fiscal year for each block grant
under Article 1C shall be treated for these purposes as
appropriations for the individual program included in that
block grant. The proportion of each block grant so allocated to
each such program included in it shall be the proportion which
the appropriation for that program was of all appropriations
for such purposes now in that block grant, in fiscal 1995.
Payments to the school district under this Section with
respect to each program for which payments to school districts
generally, as of the date of this amendatory Act of the 92nd
General Assembly, are on a reimbursement basis shall continue

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to be made to the district on a reimbursement basis, pursuant
to the provisions of this Code governing those programs.
(h) Notwithstanding any other provision of law, any school
district receiving a block grant under this Section may
classify all or a portion of the funds that it receives in a
particular fiscal year from any block grant authorized under
this Code or from general State aid pursuant to Section 18-8.05
of this Code (other than supplemental general State aid) as
funds received in connection with any funding program for which
it is entitled to receive funds from the State in that fiscal
year (including, without limitation, any funding program
referred to in subsection (c) of this Section), regardless of
the source or timing of the receipt. The district may not
classify more funds as funds received in connection with the
funding program than the district is entitled to receive in
that fiscal year for that program. Any classification by a
district must be made by a resolution of its board of
education. The resolution must identify the amount of any block
grant or general State aid to be classified under this
subsection (h) and must specify the funding program to which
the funds are to be treated as received in connection
therewith. This resolution is controlling as to the
classification of funds referenced therein. A certified copy of
the resolution must be sent to the State Superintendent of
Education. The resolution shall still take effect even though a
copy of the resolution has not been sent to the State

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Superintendent of Education in a timely manner. No
classification under this subsection (h) by a district shall
affect the total amount or timing of money the district is
entitled to receive under this Code. No classification under
this subsection (h) by a district shall in any way relieve the
district from or affect any requirements that otherwise would
apply with respect to the block grant as provided in this
Section, including any accounting of funds by source, reporting
expenditures by original source and purpose, reporting
requirements, or requirements of provision of services.
(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
97-813, eff. 7-13-12.)
(105 ILCS 5/1E-20)
(This Section scheduled to be repealed in accordance with
105 ILCS 5/1E-165)
Sec. 1E-20. Members of Authority; meetings.
(a) When a petition for a School Finance Authority is
allowed by the State Board under Section 1E-15 of this Code,
the State Superintendent shall within 10 days thereafter
appoint 5 members to serve on a School Finance Authority for
the district. Of the initial members, 2 shall be appointed to
serve a term of 2 years and 3 shall be appointed to serve a term
of 3 years. Thereafter, each member shall serve for a term of 3
years and until his or her successor has been appointed. The
State Superintendent shall designate one of the members of the

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Authority to serve as its Chairperson. In the event of vacancy
or resignation, the State Superintendent shall, within 10 days
after receiving notice, appoint a successor to serve out that
member's term. The State Superintendent may remove a member for
incompetence, malfeasance, neglect of duty, or other just
cause.
Members of the Authority shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Authority shall be
residents of the school district that the Authority serves. A
member of the Authority may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
Authority members shall serve without compensation, but
may be reimbursed by the State Board for travel and other
necessary expenses incurred in the performance of their
official duties. Unless paid from bonds issued under Section
1E-65 of this Code, the amount reimbursed members for their
expenses shall be charged to the school district as part of any
emergency financial assistance and incorporated as a part of
the terms and conditions for repayment of the assistance or
shall be deducted from the district's general State aid or
primary State aid as provided in Section 1B-8 of this Code.
The Authority may elect such officers as it deems
appropriate.

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(b) The first meeting of the Authority shall be held at the
call of the Chairperson. The Authority shall prescribe the
times and places for its meetings and the manner in which
regular and special meetings may be called and shall comply
with the Open Meetings Act.
Three members of the Authority shall constitute a quorum.
When a vote is taken upon any measure before the Authority, a
quorum being present, a majority of the votes of the members
voting on the measure shall determine the outcome.
(Source: P.A. 92-547, eff. 6-13-02.)
(105 ILCS 5/1F-20)
(This Section scheduled to be repealed in accordance with 105
ILCS 5/1F-165)
Sec. 1F-20. Members of Authority; meetings.
(a) Upon establishment of a School Finance Authority under
Section 1F-15 of this Code, the State Superintendent shall
within 15 days thereafter appoint 5 members to serve on a
School Finance Authority for the district. Of the initial
members, 2 shall be appointed to serve a term of 2 years and 3
shall be appointed to serve a term of 3 years. Thereafter, each
member shall serve for a term of 3 years and until his or her
successor has been appointed. The State Superintendent shall
designate one of the members of the Authority to serve as its
Chairperson. In the event of vacancy or resignation, the State
Superintendent shall, within 10 days after receiving notice,

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appoint a successor to serve out that member's term. The State
Superintendent may remove a member for incompetence,
malfeasance, neglect of duty, or other just cause.
Members of the Authority shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Authority shall be
residents of the school district that the Authority serves. A
member of the Authority may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
Authority members shall be paid a stipend approved by the
State Superintendent of not more than $100 per meeting and may
be reimbursed by the State Board for travel and other necessary
expenses incurred in the performance of their official duties.
Unless paid from bonds issued under Section 1F-65 of this Code,
the amount reimbursed members for their expenses shall be
charged to the school district as part of any emergency
financial assistance and incorporated as a part of the terms
and conditions for repayment of the assistance or shall be
deducted from the district's general State aid or primary State
aid as provided in Section 1B-8 of this Code.
The Authority may elect such officers as it deems
appropriate.
(b) The first meeting of the Authority shall be held at the
call of the Chairperson. The Authority shall prescribe the

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times and places for its meetings and the manner in which
regular and special meetings may be called and shall comply
with the Open Meetings Act.
Three members of the Authority shall constitute a quorum.
When a vote is taken upon any measure before the Authority, a
quorum being present, a majority of the votes of the members
voting on the measure shall determine the outcome.
(Source: P.A. 94-234, eff. 7-1-06.)
(105 ILCS 5/1F-62)
(This Section scheduled to be repealed in accordance with 105
ILCS 5/1F-165)
Sec. 1F-62. School District Emergency Financial Assistance
Fund; grants and loans.
(a) Moneys in the School District Emergency Financial
Assistance Fund established under Section 1B-8 of this Code may
be allocated and expended by the State Board as grants to
provide technical and consulting services to school districts
to assess their financial condition and by the Illinois Finance
Authority for emergency financial assistance loans to a School
Finance Authority that petitions for emergency financial
assistance. An emergency financial assistance loan to a School
Finance Authority or borrowing from sources other than the
State shall not be considered as part of the calculation of a
district's debt for purposes of the limitation specified in
Section 19-1 of this Code. From the amount allocated to each

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School Finance Authority, the State Board shall identify a sum
sufficient to cover all approved costs of the School Finance
Authority. If the State Board and State Superintendent have not
approved emergency financial assistance in conjunction with
the appointment of a School Finance Authority, the Authority's
approved costs shall be paid from deductions from the
district's general State aid or primary State aid.
The School Finance Authority may prepare and file with the
State Superintendent a proposal for emergency financial
assistance for the school district and for its operations
budget. No expenditures shall be authorized by the State
Superintendent until he or she has approved the proposal of the
School Finance Authority, either as submitted or in such lesser
amount determined by the State Superintendent.
(b) The amount of an emergency financial assistance loan
that may be allocated to a School Finance Authority under this
Article, including moneys necessary for the operations of the
School Finance Authority, and borrowing from sources other than
the State shall not exceed, in the aggregate, $4,000 times the
number of pupils enrolled in the district during the school
year ending June 30 prior to the date of approval by the State
Board of the petition for emergency financial assistance, as
certified to the school board and the School Finance Authority
by the State Superintendent. However, this limitation does not
apply to borrowing by the district secured by amounts levied by
the district prior to establishment of the School Finance

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Authority. An emergency financial assistance grant shall not
exceed $1,000 times the number of such pupils. A district may
receive both a loan and a grant.
(c) The payment of a State emergency financial assistance
grant or loan shall be subject to appropriation by the General
Assembly. State emergency financial assistance allocated and
paid to a School Finance Authority under this Article may be
applied to any fund or funds from which the School Finance
Authority is authorized to make expenditures by law.
(d) Any State emergency financial assistance proposed by
the School Finance Authority and approved by the State
Superintendent may be paid in its entirety during the initial
year of the School Finance Authority's existence or spread in
equal or declining amounts over a period of years not to exceed
the period of the School Finance Authority's existence. The
State Superintendent shall not approve any loan to the School
Finance Authority unless the School Finance Authority has been
unable to borrow sufficient funds to operate the district.
All loan payments made from the School District Emergency
Financial Assistance Fund to a School Finance Authority shall
be required to be repaid not later than the date the School
Finance Authority ceases to exist, with simple interest over
the term of the loan at a rate equal to 50% of the one-year
Constant Maturity Treasury (CMT) yield as last published by the
Board of Governors of the Federal Reserve System before the
date on which the School Finance Authority's loan is approved

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by the State Board.
The School Finance Authority shall establish and the
Illinois Finance Authority shall approve the terms and
conditions of the loan, including the schedule of repayments.
The schedule shall provide for repayments commencing July 1 of
each year or upon each fiscal year's receipt of moneys from a
tax levy for emergency financial assistance. Repayment shall be
incorporated into the annual budget of the district and may be
made from any fund or funds of the district in which there are
moneys available. Default on repayment is subject to the
Illinois Grant Funds Recovery Act. When moneys are repaid as
provided in this Section, they shall not be made available to
the School Finance Authority for further use as emergency
financial assistance under this Article at any time thereafter.
All repayments required to be made by a School Finance
Authority shall be received by the State Board and deposited in
the School District Emergency Financial Assistance Fund.
In establishing the terms and conditions for the repayment
obligation of the School Finance Authority, the School Finance
Authority shall annually determine whether a separate local
property tax levy is required to meet that obligation. The
School Finance Authority shall provide for a separate tax levy
for emergency financial assistance repayment purposes. This
tax levy shall not be subject to referendum approval. The
amount of the levy shall not exceed the amount necessary to
meet the annual emergency financial repayment obligations of

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the district, including principal and interest, as established
by the School Finance Authority.
(Source: P.A. 94-234, eff. 7-1-06.)
(105 ILCS 5/1H-20)
Sec. 1H-20. Members of Panel; meetings.
(a) Upon establishment of a Financial Oversight Panel under
Section 1H-15 of this Code, the State Superintendent shall
within 15 working days thereafter appoint 5 members to serve on
a Financial Oversight Panel for the district. Members appointed
to the Panel shall serve at the pleasure of the State
Superintendent. The State Superintendent shall designate one
of the members of the Panel to serve as its Chairperson. In the
event of vacancy or resignation, the State Superintendent
shall, within 10 days after receiving notice, appoint a
successor to serve out that member's term.
(b) Members of the Panel shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Panel shall be
residents of the school district that the Panel serves. A
member of the Panel may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
(c) Panel members may be reimbursed by the State Board for
travel and other necessary expenses incurred in the performance

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of their official duties. The amount reimbursed members for
their expenses shall be charged to the school district as part
of any emergency financial assistance and incorporated as a
part of the terms and conditions for repayment of the
assistance or shall be deducted from the district's general
State aid or primary State aid as provided in Section 1H-65 of
this Code.
(d) With the exception of the chairperson, who shall be
designated as provided in subsection (a) of this Section, the
Panel may elect such officers as it deems appropriate.
(e) The first meeting of the Panel shall be held at the
call of the Chairperson. The Panel shall prescribe the times
and places for its meetings and the manner in which regular and
special meetings may be called and shall comply with the Open
Meetings Act. The Panel shall also comply with the Freedom of
Information Act.
(f) Three members of the Panel shall constitute a quorum. A
majority of members present is required to pass a measure.
(Source: P.A. 97-429, eff. 8-16-11.)
(105 ILCS 5/1H-70)
Sec. 1H-70. Tax anticipation warrants, tax anticipation
notes, revenue anticipation certificates or notes, general
State aid or primary State aid anticipation certificates, and
lines of credit. With the approval of the State Superintendent
and provided that the district is unable to secure short-term

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financing after 3 attempts, a Panel shall have the same power
as a district to do the following:
(1) issue tax anticipation warrants under the
provisions of Section 17-16 of this Code against taxes
levied by either the school board or the Panel pursuant to
Section 1H-25 of this Code;
(2) issue tax anticipation notes under the provisions
of the Tax Anticipation Note Act against taxes levied by
either the school board or the Panel pursuant to Section
1H-25 of this Code;
(3) issue revenue anticipation certificates or notes
under the provisions of the Revenue Anticipation Act;
(4) issue general State aid or primary State aid
anticipation certificates under the provisions of Section
18-18 of this Code; and
(5) establish and utilize lines of credit under the
provisions of Section 17-17 of this Code.
Tax anticipation warrants, tax anticipation notes, revenue
anticipation certificates or notes, general State aid or
primary State aid anticipation certificates, and lines of
credit are considered borrowing from sources other than the
State and are subject to Section 1H-65 of this Code.
(Source: P.A. 97-429, eff. 8-16-11.)
(105 ILCS 5/2-3.28) (from Ch. 122, par. 2-3.28)
Sec. 2-3.28. Rules and regulations of budget and accounting

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systems. To prescribe rules and regulations defining what shall
constitute a budget and accounting system required under this
Act. The rules and regulations shall prescribe the minimum
extent of verification, the type of audit, the extent of the
audit report and shall require compliance with statutory
requirements and standards and such requirements as the State
Board of Education deems necessary for an adequate budget and
accounting system. For the 2015-2016 school year and
thereafter, the rules and regulations shall prescribe a system
for accounting for revenues and expenditures at the individual
school level that includes without limitation the following:
(1) accounting for expenditures for school
administration, regular instruction, special education
instruction, instructional support services, and pupil
support services;
(2) salary expenditures reflecting actual staff
salaries at each school;
(3) accounting for operations, including
non-instructional pupil services, facilities, and business
services; and
(4) such other requirements as the State Board of
Education deems necessary to provide for a uniform and
transparent system of accounting at the school level.
(Source: P.A. 81-1508.)
(105 ILCS 5/2-3.33) (from Ch. 122, par. 2-3.33)

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Sec. 2-3.33. Recomputation of claims. To recompute within
3 years from the final date for filing of a claim any claim for
reimbursement to any school district if the claim has been
found to be incorrect and to adjust subsequent claims
accordingly, and to recompute and adjust any such claims within
6 years from the final date for filing when there has been an
adverse court or administrative agency decision on the merits
affecting the tax revenues of the school district. However, no
such adjustment shall be made regarding equalized assessed
valuation unless the district's equalized assessed valuation
is changed by greater than $250,000 or 2%. Any adjustments for
claims recomputed for the 2013-2014 school year and prior
school years shall be applied to the apportionment of primary
State financial aid in Section 18-8.15 of this Code beginning
in the 2014-2015 school year and thereafter.
Except in the case of an adverse court or administrative
agency decision, no recomputation of a State aid claim shall be
made pursuant to this Section as a result of a reduction in the
assessed valuation of a school district from the assessed
valuation of the district reported to the State Board of
Education by the Department of Revenue under Section 18-8.05 or
18-8.15 of this Code unless the requirements of Section 16-15
of the Property Tax Code and Section 2-3.84 of this Code are
complied with in all respects.
This paragraph applies to all requests for recomputation of
a general State aid or primary State aid claim received after

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June 30, 2003. In recomputing a general State aid or primary
State aid claim that was originally calculated using an
extension limitation equalized assessed valuation under
paragraph (3) of subsection (G) of Section 18-8.05 of this Code
or paragraph (3) of subsection (h) of Section 18-8.15 of this
Code, a qualifying reduction in equalized assessed valuation
shall be deducted from the extension limitation equalized
assessed valuation that was used in calculating the original
claim.
From the total amount of general State aid or primary State
aid to be provided to districts, adjustments as a result of
recomputation under this Section together with adjustments
under Section 2-3.84 must not exceed $25 million, in the
aggregate for all districts under both Sections combined, of
the general State aid or primary State aid appropriation in any
fiscal year; if necessary, amounts shall be prorated among
districts. If it is necessary to prorate claims under this
paragraph, then that portion of each prorated claim that is
approved but not paid in the current fiscal year may be
resubmitted as a valid claim in the following fiscal year.
(Source: P.A. 93-845, eff. 7-30-04.)
(105 ILCS 5/2-3.51.5)
Sec. 2-3.51.5. School Safety and Educational Improvement
Block Grant Program. To improve the level of education and
safety of students from kindergarten through grade 12 in school

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districts and State-recognized, non-public schools. The State
Board of Education is authorized to fund a School Safety and
Educational Improvement Block Grant Program.
(1) For school districts, the program shall provide funding
for school safety, textbooks and software, electronic
textbooks and the technological equipment necessary to gain
access to and use electronic textbooks, teacher training and
curriculum development, school improvements, remediation
programs under subsection (a) of Section 2-3.64, school report
cards under Section 10-17a, and criminal history records checks
under Sections 10-21.9 and 34-18.5. For State-recognized,
non-public schools, the program shall provide funding for
secular textbooks and software, criminal history records
checks, and health and safety mandates to the extent that the
funds are expended for purely secular purposes. A school
district or laboratory school as defined in Section 18-8, or
18-8.05, or 18-8.15 is not required to file an application in
order to receive the categorical funding to which it is
entitled under this Section. Funds for the School Safety and
Educational Improvement Block Grant Program shall be
distributed to school districts and laboratory schools based on
the prior year's best 3 months average daily attendance. Funds
for the School Safety and Educational Improvement Block Grant
Program shall be distributed to State-recognized, non-public
schools based on the average daily attendance figure for the
previous school year provided to the State Board of Education.

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The State Board of Education shall develop an application that
requires State-recognized, non-public schools to submit
average daily attendance figures. A State-recognized,
non-public school must submit the application and average daily
attendance figure prior to receiving funds under this Section.
The State Board of Education shall promulgate rules and
regulations necessary for the implementation of this program.
(2) Distribution of moneys to school districts and
State-recognized, non-public schools shall be made in 2
semi-annual installments, one payment on or before October 30,
and one payment prior to April 30, of each fiscal year.
(3) Grants under the School Safety and Educational
Improvement Block Grant Program shall be awarded provided there
is an appropriation for the program, and funding levels for
each district shall be prorated according to the amount of the
appropriation.
(4) The provisions of this Section are in the public
interest, are for the public benefit, and serve secular public
purposes.
(Source: P.A. 95-707, eff. 1-11-08; 96-1403, eff. 7-29-10.)
(105 ILCS 5/2-3.66) (from Ch. 122, par. 2-3.66)
Sec. 2-3.66. Truants' alternative and optional education
programs. To establish projects to offer modified
instructional programs or other services designed to prevent
students from dropping out of school, including programs

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pursuant to Section 2-3.41, and to serve as a part time or full
time option in lieu of regular school attendance and to award
grants to local school districts, educational service regions
or community college districts from appropriated funds to
assist districts in establishing such projects. The education
agency may operate its own program or enter into a contract
with another not-for-profit entity to implement the program.
The projects shall allow dropouts, up to and including age 21,
potential dropouts, including truants, uninvolved, unmotivated
and disaffected students, as defined by State Board of
Education rules and regulations, to enroll, as an alternative
to regular school attendance, in an optional education program
which may be established by school board policy and is in
conformance with rules adopted by the State Board of Education.
Truants' Alternative and Optional Education programs funded
pursuant to this Section shall be planned by a student, the
student's parents or legal guardians, unless the student is 18
years or older, and school officials and shall culminate in an
individualized optional education plan. Such plan shall focus
on academic or vocational skills, or both, and may include, but
not be limited to, evening school, summer school, community
college courses, adult education, preparation courses for the
high school level test of General Educational Development,
vocational training, work experience, programs to enhance self
concept and parenting courses. School districts which are
awarded grants pursuant to this Section shall be authorized to

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provide day care services to children of students who are
eligible and desire to enroll in programs established and
funded under this Section, but only if and to the extent that
such day care is necessary to enable those eligible students to
attend and participate in the programs and courses which are
conducted pursuant to this Section. School districts and
regional offices of education may claim general State aid under
Section 18-8.05 or primary State aid under Section 18-8.15 for
students enrolled in truants' alternative and optional
education programs, provided that such students are receiving
services that are supplemental to a program leading to a high
school diploma and are otherwise eligible to be claimed for
general State aid under Section 18-8.05 or primary State aid
under Section 18-8.15, as applicable.
(Source: P.A. 96-734, eff. 8-25-09.)
(105 ILCS 5/2-3.66b)
Sec. 2-3.66b. IHOPE Program.
(a) There is established the Illinois Hope and Opportunity
Pathways through Education (IHOPE) Program. The State Board of
Education shall implement and administer the IHOPE Program. The
goal of the IHOPE Program is to develop a comprehensive system
in this State to re-enroll significant numbers of high school
dropouts in programs that will enable them to earn their high
school diploma.
(b) The IHOPE Program shall award grants, subject to

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appropriation for this purpose, to educational service regions
and a school district organized under Article 34 of this Code
from appropriated funds to assist in establishing
instructional programs and other services designed to
re-enroll high school dropouts. From any funds appropriated for
the IHOPE Program, the State Board of Education may use up to
5% for administrative costs, including the performance of a
program evaluation and the hiring of staff to implement and
administer the program.
The IHOPE Program shall provide incentive grant funds for
regional offices of education and a school district organized
under Article 34 of this Code to develop partnerships with
school districts, public community colleges, and community
groups to build comprehensive plans to re-enroll high school
dropouts in their regions or districts.
Programs funded through the IHOPE Program shall allow high
school dropouts, up to and including age 21 notwithstanding
Section 26-2 of this Code, to re-enroll in an educational
program in conformance with rules adopted by the State Board of
Education. Programs may include without limitation
comprehensive year-round programming, evening school, summer
school, community college courses, adult education, vocational
training, work experience, programs to enhance self-concept,
and parenting courses. Any student in the IHOPE Program who
wishes to earn a high school diploma must meet the
prerequisites to receiving a high school diploma specified in

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Section 27-22 of this Code and any other graduation
requirements of the student's district of residence. Any
student who successfully completes the requirements for his or
her graduation shall receive a diploma identifying the student
as graduating from his or her district of residence.
(c) In order to be eligible for funding under the IHOPE
Program, an interested regional office of education or a school
district organized under Article 34 of this Code shall develop
an IHOPE Plan to be approved by the State Board of Education.
The State Board of Education shall develop rules for the IHOPE
Program that shall set forth the requirements for the
development of the IHOPE Plan. Each Plan shall involve school
districts, public community colleges, and key community
programs that work with high school dropouts located in an
educational service region or the City of Chicago before the
Plan is sent to the State Board for approval. No funds may be
distributed to a regional office of education or a school
district organized under Article 34 of this Code until the
State Board has approved the Plan.
(d) A regional office of education or a school district
organized under Article 34 of this Code may operate its own
program funded by the IHOPE Program or enter into a contract
with other not-for-profit entities, including school
districts, public community colleges, and not-for-profit
community-based organizations, to operate a program.
A regional office of education or a school district

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organized under Article 34 of this Code that receives an IHOPE
grant from the State Board of Education may provide funds under
a sub-grant, as specified in the IHOPE Plan, to other
not-for-profit entities to provide services according to the
IHOPE Plan that was developed. These other entities may include
school districts, public community colleges, or not-for-profit
community-based organizations or a cooperative partnership
among these entities.
(e) In order to distribute funding based upon the need to
ensure delivery of programs that will have the greatest impact,
IHOPE Program funding must be distributed based upon the
proportion of dropouts in the educational service region or
school district, in the case of a school district organized
under Article 34 of this Code, to the total number of dropouts
in this State. This formula shall employ the dropout data
provided by school districts to the State Board of Education.
A regional office of education or a school district
organized under Article 34 of this Code may claim State aid
under Section 18-8.05 or 18-8.15 of this Code for students
enrolled in a program funded by the IHOPE Program, provided
that the State Board of Education has approved the IHOPE Plan
and that these students are receiving services that are meeting
the requirements of Section 27-22 of this Code for receipt of a
high school diploma and are otherwise eligible to be claimed
for general State aid under Section 18-8.05 of this Code or
primary State aid under Section 18-8.15 of this Code, including

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provisions related to the minimum number of days of pupil
attendance pursuant to Section 10-19 of this Code and the
minimum number of daily hours of school work and any exceptions
thereto as defined by the State Board of Education in rules.
(f) IHOPE categories of programming may include the
following:
(1) Full-time programs that are comprehensive,
year-round programs.
(2) Part-time programs combining work and study
scheduled at various times that are flexible to the needs
of students.
(3) Online programs and courses in which students take
courses and complete on-site, supervised tests that
measure the student's mastery of a specific course needed
for graduation. Students may take courses online and earn
credit or students may prepare to take supervised tests for
specific courses for credit leading to receipt of a high
school diploma.
(4) Dual enrollment in which students attend high
school classes in combination with community college
classes or students attend community college classes while
simultaneously earning high school credit and eventually a
high school diploma.
(g) In order to have successful comprehensive programs
re-enrolling and graduating low-skilled high school dropouts,
programs funded through the IHOPE Program shall include all of

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the following components:
(1) Small programs (70 to 100 students) at a separate
school site with a distinct identity. Programs may be
larger with specific need and justification, keeping in
mind that it is crucial to keep programs small to be
effective.
(2) Specific performance-based goals and outcomes and
measures of enrollment, attendance, skills, credits,
graduation, and the transition to college, training, and
employment.
(3) Strong, experienced leadership and teaching staff
who are provided with ongoing professional development.
(4) Voluntary enrollment.
(5) High standards for student learning, integrating
work experience, and education, including during the
school year and after school, and summer school programs
that link internships, work, and learning.
(6) Comprehensive programs providing extensive support
services.
(7) Small teams of students supported by full-time paid
mentors who work to retain and help those students
graduate.
(8) A comprehensive technology learning center with
Internet access and broad-based curriculum focusing on
academic and career subject areas.
(9) Learning opportunities that incorporate action

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into study.
(h) Programs funded through the IHOPE Program must report
data to the State Board of Education as requested. This
information shall include, but is not limited to, student
enrollment figures, attendance information, course completion
data, graduation information, and post-graduation information,
as available.
(i) Rules must be developed by the State Board of Education
to set forth the fund distribution process to regional offices
of education and a school district organized under Article 34
of this Code, the planning and the conditions upon which an
IHOPE Plan would be approved by State Board, and other rules to
develop the IHOPE Program.
(Source: P.A. 96-106, eff. 7-30-09.)
(105 ILCS 5/2-3.84) (from Ch. 122, par. 2-3.84)
Sec. 2-3.84. In calculating the amount of State aid to be
apportioned to the various school districts in this State, the
State Board of Education shall incorporate and deduct the total
aggregate adjustments to assessments made by the State Property
Tax Appeal Board or Cook County Board of Appeals, as reported
pursuant to Section 16-15 of the Property Tax Code or Section
129.1 of the Revenue Act of 1939 by the Department of Revenue,
from the equalized assessed valuation that is otherwise to be
utilized in the initial calculation.
From the total amount of general State aid or primary State

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aid to be provided to districts, adjustments under this Section
together with adjustments as a result of recomputation under
Section 2-3.33 must not exceed $25 million, in the aggregate
for all districts under both Sections combined, of the general
State aid or primary State aid appropriation in any fiscal
year; if necessary, amounts shall be prorated among districts.
If it is necessary to prorate claims under this paragraph, then
that portion of each prorated claim that is approved but not
paid in the current fiscal year may be resubmitted as a valid
claim in the following fiscal year.
(Source: P.A. 93-845, eff. 7-30-04.)
(105 ILCS 5/2-3.109a)
Sec. 2-3.109a. Laboratory schools grant eligibility. A
laboratory school as defined in Section 18-8 or 18-8.15 may
apply for and be eligible to receive, subject to the same
restrictions applicable to school districts, any grant
administered by the State Board of Education that is available
for school districts.
(Source: P.A. 90-566, eff. 1-2-98.)
(105 ILCS 5/3-14.21) (from Ch. 122, par. 3-14.21)
Sec. 3-14.21. Inspection of schools.
(a) The regional superintendent shall inspect and survey
all public schools under his or her supervision and notify the
board of education, or the trustees of schools in a district

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with trustees, in writing before July 30, whether or not the
several schools in their district have been kept as required by
law, using forms provided by the State Board of Education which
are based on the Health/Life Safety Code for Public Schools
adopted under Section 2-3.12. The regional superintendent
shall report his or her findings to the State Board of
Education on forms provided by the State Board of Education.
(b) If the regional superintendent determines that a school
board has failed in a timely manner to correct urgent items
identified in a previous life-safety report completed under
Section 2-3.12 or as otherwise previously ordered by the
regional superintendent, the regional superintendent shall
order the school board to adopt and submit to the regional
superintendent a plan for the immediate correction of the
building violations. This plan shall be adopted following a
public hearing that is conducted by the school board on the
violations and the plan and that is preceded by at least 7
days' prior notice of the hearing published in a newspaper of
general circulation within the school district. If the regional
superintendent determines in the next annual inspection that
the plan has not been completed and that the violations have
not been corrected, the regional superintendent shall submit a
report to the State Board of Education with a recommendation
that the State Board withhold from payments of general State
aid or primary State aid due to the district an amount
necessary to correct the outstanding violations. The State

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Board, upon notice to the school board and to the regional
superintendent, shall consider the report at a meeting of the
State Board, and may order that a sufficient amount of general
State aid or primary State aid be withheld from payments due to
the district to correct the violations. This amount shall be
paid to the regional superintendent who shall contract on
behalf of the school board for the correction of the
outstanding violations.
(c) The Office of the State Fire Marshal or a qualified
fire official, as defined in Section 2-3.12 of this Code, to
whom the State Fire Marshal has delegated his or her authority
shall conduct an annual fire safety inspection of each school
building in this State. The State Fire Marshal or the fire
official shall coordinate its inspections with the regional
superintendent. The inspection shall be based on the fire
safety code authorized in Section 2-3.12 of this Code. Any
violations shall be reported in writing to the regional
superintendent and shall reference the specific code sections
where a discrepancy has been identified within 15 days after
the inspection has been conducted. The regional superintendent
shall address those violations that are not corrected in a
timely manner pursuant to subsection (b) of this Section. The
inspection must be at no cost to the school district.
(d) If a municipality or, in the case of an unincorporated
area, a county or, if applicable, a fire protection district
wishes to perform new construction inspections under the

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jurisdiction of a regional superintendent, then the entity must
register this wish with the regional superintendent. These
inspections must be based on the building code authorized in
Section 2-3.12 of this Code. The inspections must be at no cost
to the school district.
(Source: P.A. 96-734, eff. 8-25-09.)
(105 ILCS 5/7-14A) (from Ch. 122, par. 7-14A)
Sec. 7-14A. Annexation Compensation. There shall be no
accounting made after a mere change in boundaries when no new
district is created, except that those districts whose
enrollment increases by 90% or more as a result of annexing
territory detached from another district pursuant to this
Article are eligible for supplementary State aid payments in
accordance with Section 11E-135 of this Code. Eligible annexing
districts shall apply to the State Board of Education for
supplementary State aid payments by submitting enrollment
figures for the year immediately preceding and the year
immediately following the effective date of the boundary change
for both the district gaining territory and the district losing
territory. Copies of any intergovernmental agreements between
the district gaining territory and the district losing
territory detailing any transfer of fund balances and staff
must also be submitted. In all instances of changes in
boundaries, the district losing territory shall not count the
average daily attendance of pupils living in the territory

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during the year preceding the effective date of the boundary
change in its claim for reimbursement under Section 18-8 or
18-8.15 for the school year following the effective date of the
change in boundaries and the district receiving the territory
shall count the average daily attendance of pupils living in
the territory during the year preceding the effective date of
the boundary change in its claim for reimbursement under
Section 18-8 or 18-8.15 for the school year following the
effective date of the change in boundaries. The changes to this
Section made by this amendatory Act of the 95th General
Assembly are intended to be retroactive and applicable to any
annexation taking effect on or after July 1, 2004.
(Source: P.A. 95-707, eff. 1-11-08.)
(105 ILCS 5/10-19) (from Ch. 122, par. 10-19)
Sec. 10-19. Length of school term - experimental programs.
Each school board shall annually prepare a calendar for the
school term, specifying the opening and closing dates and
providing a minimum term of at least 185 days to insure 176
days of actual pupil attendance, computable under Section
18-8.05 or 18-8.15, except that for the 1980-1981 school year
only 175 days of actual pupil attendance shall be required
because of the closing of schools pursuant to Section 24-2 on
January 29, 1981 upon the appointment by the President of that
day as a day of thanksgiving for the freedom of the Americans
who had been held hostage in Iran. Any days allowed by law for

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teachers' institutes institute but not used as such or used as
parental institutes as provided in Section 10-22.18d shall
increase the minimum term by the school days not so used.
Except as provided in Section 10-19.1, the board may not extend
the school term beyond such closing date unless that extension
of term is necessary to provide the minimum number of
computable days. In case of such necessary extension school
employees shall be paid for such additional time on the basis
of their regular contracts. A school board may specify a
closing date earlier than that set on the annual calendar when
the schools of the district have provided the minimum number of
computable days under this Section. Nothing in this Section
prevents the board from employing superintendents of schools,
principals and other nonteaching personnel for a period of 12
months, or in the case of superintendents for a period in
accordance with Section 10-23.8, or prevents the board from
employing other personnel before or after the regular school
term with payment of salary proportionate to that received for
comparable work during the school term.
A school board may make such changes in its calendar for
the school term as may be required by any changes in the legal
school holidays prescribed in Section 24-2. A school board may
make changes in its calendar for the school term as may be
necessary to reflect the utilization of teachers' institute
days as parental institute days as provided in Section
10-22.18d.

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The calendar for the school term and any changes must be
submitted to and approved by the regional superintendent of
schools before the calendar or changes may take effect.
With the prior approval of the State Board of Education and
subject to review by the State Board of Education every 3
years, any school board may, by resolution of its board and in
agreement with affected exclusive collective bargaining
agents, establish experimental educational programs, including
but not limited to programs for self-directed learning or
outside of formal class periods, which programs when so
approved shall be considered to comply with the requirements of
this Section as respects numbers of days of actual pupil
attendance and with the other requirements of this Act as
respects courses of instruction.
(Source: P.A. 93-1036, eff. 9-14-04; revised 11-12-13.)
(105 ILCS 5/10-22.5a) (from Ch. 122, par. 10-22.5a)
Sec. 10-22.5a. Attendance by dependents of United States
military personnel, foreign exchange students, and certain
nonresident pupils.
(a) To enter into written agreements with cultural exchange
organizations, or with nationally recognized eleemosynary
institutions that promote excellence in the arts, mathematics,
or science. The written agreements may provide for tuition free
attendance at the local district school by foreign exchange
students, or by nonresident pupils of eleemosynary

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institutions. The local board of education, as part of the
agreement, may require that the cultural exchange program or
the eleemosynary institutions provide services to the district
in exchange for the waiver of nonresident tuition.
To enter into written agreements with adjacent school
districts to provide for tuition free attendance by a student
of the adjacent district when requested for the student's
health and safety by the student or parent and both districts
determine that the student's health or safety will be served by
such attendance. Districts shall not be required to enter into
such agreements nor be required to alter existing
transportation services due to the attendance of such
non-resident pupils.
(a-5) If, at the time of enrollment, a dependent of United
States military personnel is housed in temporary housing
located outside of a school district, but will be living within
the district within 60 days after the time of initial
enrollment, the dependent must be allowed to enroll, subject to
the requirements of this subsection (a-5), and must not be
charged tuition. Any United States military personnel
attempting to enroll a dependent under this subsection (a-5)
shall provide proof that the dependent will be living within
the district within 60 days after the time of initial
enrollment. Proof of residency may include, but is not limited
to, postmarked mail addressed to the military personnel and
sent to an address located within the district, a lease

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agreement for occupancy of a residence located within the
district, or proof of ownership of a residence located within
the district.
(b) Nonresident pupils and foreign exchange students
attending school on a tuition free basis under such agreements
and nonresident dependents of United States military personnel
attending school on a tuition free basis may be counted for the
purposes of determining the apportionment of State aid provided
under Section 18-8.05 or 18-8.15 of this Code, provided that
any cultural exchange organization or eleemosynary
institutions wishing to participate in an agreement authorized
under this Section must be approved in writing by the State
Board of Education. The State Board of Education may establish
reasonable rules to determine the eligibility of cultural
exchange organizations or eleemosynary institutions wishing to
participate in agreements authorized under this Section. No
organization or institution participating in agreements
authorized under this Section may exclude any individual for
participation in its program on account of the person's race,
color, sex, religion or nationality.
(Source: P.A. 93-740, eff. 7-15-04.)
(105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
Sec. 10-22.20. Classes for adults and youths whose
schooling has been interrupted; conditions for State
reimbursement; use of child care facilities.

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(a) To establish special classes for the instruction (1) of
persons of age 21 years or over, and (2) of persons less than
age 21 and not otherwise in attendance in public school, for
the purpose of providing adults in the community, and youths
whose schooling has been interrupted, with such additional
basic education, vocational skill training, and other
instruction as may be necessary to increase their
qualifications for employment or other means of self-support
and their ability to meet their responsibilities as citizens
including courses of instruction regularly accepted for
graduation from elementary or high schools and for
Americanization and General Educational Development Review
classes.
The board shall pay the necessary expenses of such classes
out of school funds of the district, including costs of student
transportation and such facilities or provision for child-care
as may be necessary in the judgment of the board to permit
maximum utilization of the courses by students with children,
and other special needs of the students directly related to
such instruction. The expenses thus incurred shall be subject
to State reimbursement, as provided in this Section. The board
may make a tuition charge for persons taking instruction who
are not subject to State reimbursement, such tuition charge not
to exceed the per capita cost of such classes.
The cost of such instruction, including the additional
expenses herein authorized, incurred for recipients of

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financial aid under the Illinois Public Aid Code, or for
persons for whom education and training aid has been authorized
under Section 9-8 of that Code, shall be assumed in its
entirety from funds appropriated by the State to the Illinois
Community College Board.
(b) The Illinois Community College Board shall establish
the standards for the courses of instruction reimbursed under
this Section. The Illinois Community College Board shall
supervise the administration of the programs. The Illinois
Community College Board shall determine the cost of instruction
in accordance with standards established by the Illinois
Community College Board, including therein other incidental
costs as herein authorized, which shall serve as the basis of
State reimbursement in accordance with the provisions of this
Section. In the approval of programs and the determination of
the cost of instruction, the Illinois Community College Board
shall provide for the maximum utilization of federal funds for
such programs. The Illinois Community College Board shall also
provide for:
(1) the development of an index of need for program
planning and for area funding allocations, as defined by
the Illinois Community College Board;
(2) the method for calculating hours of instruction, as
defined by the Illinois Community College Board, claimable
for reimbursement and a method to phase in the calculation
and for adjusting the calculations in cases where the

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services of a program are interrupted due to circumstances
beyond the control of the program provider;
(3) a plan for the reallocation of funds to increase
the amount allocated for grants based upon program
performance as set forth in subsection (d) below; and
(4) the development of standards for determining
grants based upon performance as set forth in subsection
(d) below and a plan for the phased-in implementation of
those standards.
For instruction provided by school districts and community
college districts beginning July 1, 1996 and thereafter,
reimbursement provided by the Illinois Community College Board
for classes authorized by this Section shall be provided from
funds appropriated for the reimbursement criteria set forth in
subsection (c) below.
(c) Upon the annual approval of the Illinois Community
College Board, reimbursement shall be first provided for
transportation, child care services, and other special needs of
the students directly related to instruction and then from the
funds remaining an amount equal to the product of the total
credit hours or units of instruction approved by the Illinois
Community College Board, multiplied by the following:
(1) For adult basic education, the maximum
reimbursement per credit hour or per unit of instruction
shall be equal to (i) through fiscal year 2014, the general
state aid per pupil foundation level established in

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subsection (B) of Section 18-8.05, divided by 60, or (ii)
in fiscal year 2015 and thereafter, the foundation level
established pursuant to subsection (b) of Section 18-8.15
of this Code, divided by 60;
(2) The maximum reimbursement per credit hour or per
unit of instruction in subparagraph (1) above shall be
weighted for students enrolled in classes defined as
vocational skills and approved by the Illinois Community
College Board by 1.25;
(3) The maximum reimbursement per credit hour or per
unit of instruction in subparagraph (1) above shall be
multiplied by .90 for students enrolled in classes defined
as adult secondary education programs and approved by the
Illinois Community College Board;
(4) (Blank); and
(5) Funding for program years after 1999-2000 shall be
determined by the Illinois Community College Board.
(d) Upon its annual approval, the Illinois Community
College Board shall provide grants to eligible programs for
supplemental activities to improve or expand services under the
Adult Education Act. Eligible programs shall be determined
based upon performance outcomes of students in the programs as
set by the Illinois Community College Board.
(e) Reimbursement under this Section shall not exceed the
actual costs of the approved program.
If the amount appropriated to the Illinois Community

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College Board for reimbursement under this Section is less than
the amount required under this Act, the apportionment shall be
proportionately reduced.
School districts and community college districts may
assess students up to $3.00 per credit hour, for classes other
than Adult Basic Education level programs, if needed to meet
program costs.
(f) An education plan shall be established for each adult
or youth whose schooling has been interrupted and who is
participating in the instructional programs provided under
this Section.
Each school board and community college shall keep an
accurate and detailed account of the students assigned to and
receiving instruction under this Section who are subject to
State reimbursement and shall submit reports of services
provided commencing with fiscal year 1997 as required by the
Illinois Community College Board.
For classes authorized under this Section, a credit hour or
unit of instruction is equal to 15 hours of direct instruction
for students enrolled in approved adult education programs at
midterm and making satisfactory progress, in accordance with
standards established by the Illinois Community College Board.
(g) Upon proof submitted to the Illinois Department of
Human Services of the payment of all claims submitted under
this Section, that Department shall apply for federal funds
made available therefor and any federal funds so received shall

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be paid into the General Revenue Fund in the State Treasury.
School districts or community colleges providing classes
under this Section shall submit applications to the Illinois
Community College Board for preapproval in accordance with the
standards established by the Illinois Community College Board.
Payments shall be made by the Illinois Community College Board
based upon approved programs. Interim expenditure reports may
be required by the Illinois Community College Board. Final
claims for the school year shall be submitted to the regional
superintendents for transmittal to the Illinois Community
College Board. Final adjusted payments shall be made by
September 30.
If a school district or community college district fails to
provide, or is providing unsatisfactory or insufficient
classes under this Section, the Illinois Community College
Board may enter into agreements with public or private
educational or other agencies other than the public schools for
the establishment of such classes.
(h) If a school district or community college district
establishes child-care facilities for the children of
participants in classes established under this Section, it may
extend the use of these facilities to students who have
obtained employment and to other persons in the community whose
children require care and supervision while the parent or other
person in charge of the children is employed or otherwise
absent from the home during all or part of the day. It may make

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the facilities available before and after as well as during
regular school hours to school age and preschool age children
who may benefit thereby, including children who require care
and supervision pending the return of their parent or other
person in charge of their care from employment or other
activity requiring absence from the home.
The Illinois Community College Board shall pay to the board
the cost of care in the facilities for any child who is a
recipient of financial aid under the Illinois Public Aid Code.
The board may charge for care of children for whom it
cannot make claim under the provisions of this Section. The
charge shall not exceed per capita cost, and to the extent
feasible, shall be fixed at a level which will permit
utilization by employed parents of low or moderate income. It
may also permit any other State or local governmental agency or
private agency providing care for children to purchase care.
After July 1, 1970 when the provisions of Section 10-20.20
become operative in the district, children in a child-care
facility shall be transferred to the kindergarten established
under that Section for such portion of the day as may be
required for the kindergarten program, and only the prorated
costs of care and training provided in the Center for the
remaining period shall be charged to the Illinois Department of
Human Services or other persons or agencies paying for such
care.
(i) The provisions of this Section shall also apply to

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school districts having a population exceeding 500,000.
(j) In addition to claiming reimbursement under this
Section, a school district may claim general State aid under
Section 18-8.05 or primary State aid under Section 18-8.15 for
any student under age 21 who is enrolled in courses accepted
for graduation from elementary or high school and who otherwise
meets the requirements of Section 18-8.05 or 18-8.15, as
applicable.
(Source: P.A. 95-331, eff. 8-21-07.)
(105 ILCS 5/10-29)
Sec. 10-29. Remote educational programs.
(a) For purposes of this Section, "remote educational
program" means an educational program delivered to students in
the home or other location outside of a school building that
meets all of the following criteria:
(1) A student may participate in the program only after
the school district, pursuant to adopted school board
policy, and a person authorized to enroll the student under
Section 10-20.12b of this Code determine that a remote
educational program will best serve the student's
individual learning needs. The adopted school board policy
shall include, but not be limited to, all of the following:
(A) Criteria for determining that a remote
educational program will best serve a student's
individual learning needs. The criteria must include

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consideration of, at a minimum, a student's prior
attendance, disciplinary record, and academic history.
(B) Any limitations on the number of students or
grade levels that may participate in a remote
educational program.
(C) A description of the process that the school
district will use to approve participation in the
remote educational program. The process must include
without limitation a requirement that, for any student
who qualifies to receive services pursuant to the
federal Individuals with Disabilities Education
Improvement Act of 2004, the student's participation
in a remote educational program receive prior approval
from the student's individualized education program
team.
(D) A description of the process the school
district will use to develop and approve a written
remote educational plan that meets the requirements of
subdivision (5) of this subsection (a).
(E) A description of the system the school district
will establish to calculate the number of clock hours a
student is participating in instruction in accordance
with the remote educational program.
(F) A description of the process for renewing a
remote educational program at the expiration of its
term.

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(G) Such other terms and provisions as the school
district deems necessary to provide for the
establishment and delivery of a remote educational
program.
(2) The school district has determined that the remote
educational program's curriculum is aligned to State
learning standards and that the program offers instruction
and educational experiences consistent with those given to
students at the same grade level in the district.
(3) The remote educational program is delivered by
instructors that meet the following qualifications:
(A) they are certificated under Article 21 of this
Code;
(B) they meet applicable highly qualified criteria
under the federal No Child Left Behind Act of 2001; and
(C) they have responsibility for all of the
following elements of the program: planning
instruction, diagnosing learning needs, prescribing
content delivery through class activities, assessing
learning, reporting outcomes to administrators and
parents and guardians, and evaluating the effects of
instruction.
(4) During the period of time from and including the
opening date to the closing date of the regular school term
of the school district established pursuant to Section
10-19 of this Code, participation in a remote educational

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program may be claimed for general State aid purposes under
Section 18-8.05 of this Code or primary State aid purposes
under Section 18-8.15 of this Code on any calendar day,
notwithstanding whether the day is a day of pupil
attendance or institute day on the school district's
calendar or any other provision of law restricting
instruction on that day. If the district holds year-round
classes in some buildings, the district shall classify each
student's participation in a remote educational program as
either on a year-round or a non-year-round schedule for
purposes of claiming general State aid or primary State
aid. Outside of the regular school term of the district,
the remote educational program may be offered as part of
any summer school program authorized by this Code.
(5) Each student participating in a remote educational
program must have a written remote educational plan that
has been approved by the school district and a person
authorized to enroll the student under Section 10-20.12b of
this Code. The school district and a person authorized to
enroll the student under Section 10-20.12b of this Code
must approve any amendment to a remote educational plan.
The remote educational plan must include, but is not
limited to, all of the following:
(A) Specific achievement goals for the student
aligned to State learning standards.
(B) A description of all assessments that will be

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used to measure student progress, which description
shall indicate the assessments that will be
administered at an attendance center within the school
district.
(C) A description of the progress reports that will
be provided to the school district and the person or
persons authorized to enroll the student under Section
10-20.12b of this Code.
(D) Expectations, processes, and schedules for
interaction between a teacher and student.
(E) A description of the specific responsibilities
of the student's family and the school district with
respect to equipment, materials, phone and Internet
service, and any other requirements applicable to the
home or other location outside of a school building
necessary for the delivery of the remote educational
program.
(F) If applicable, a description of how the remote
educational program will be delivered in a manner
consistent with the student's individualized education
program required by Section 614(d) of the federal
Individuals with Disabilities Education Improvement
Act of 2004 or plan to ensure compliance with Section
504 of the federal Rehabilitation Act of 1973.
(G) A description of the procedures and
opportunities for participation in academic and

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extra-curricular activities and programs within the
school district.
(H) The identification of a parent, guardian, or
other responsible adult who will provide direct
supervision of the program. The plan must include an
acknowledgment by the parent, guardian, or other
responsible adult that he or she may engage only in
non-teaching duties not requiring instructional
judgment or the evaluation of a student. The plan shall
designate the parent, guardian, or other responsible
adult as non-teaching personnel or volunteer personnel
under subsection (a) of Section 10-22.34 of this Code.
(I) The identification of a school district
administrator who will oversee the remote educational
program on behalf of the school district and who may be
contacted by the student's parents with respect to any
issues or concerns with the program.
(J) The term of the student's participation in the
remote educational program, which may not extend for
longer than 12 months, unless the term is renewed by
the district in accordance with subdivision (7) of this
subsection (a).
(K) A description of the specific location or
locations in which the program will be delivered. If
the remote educational program is to be delivered to a
student in any location other than the student's home,

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the plan must include a written determination by the
school district that the location will provide a
learning environment appropriate for the delivery of
the program. The location or locations in which the
program will be delivered shall be deemed a long
distance teaching reception area under subsection (a)
of Section 10-22.34 of this Code.
(L) Certification by the school district that the
plan meets all other requirements of this Section.
(6) Students participating in a remote educational
program must be enrolled in a school district attendance
center pursuant to the school district's enrollment policy
or policies. A student participating in a remote
educational program must be tested as part of all
assessments administered by the school district pursuant
to Section 2-3.64 of this Code at the attendance center in
which the student is enrolled and in accordance with the
attendance center's assessment policies and schedule. The
student must be included within all adequate yearly
progress and other accountability determinations for the
school district and attendance center under State and
federal law.
(7) The term of a student's participation in a remote
educational program may not extend for longer than 12
months, unless the term is renewed by the school district.
The district may only renew a student's participation in a

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remote educational program following an evaluation of the
student's progress in the program, a determination that the
student's continuation in the program will best serve the
student's individual learning needs, and an amendment to
the student's written remote educational plan addressing
any changes for the upcoming term of the program.
(b) A school district may, by resolution of its school
board, establish a remote educational program.
(c) Clock hours of instruction by students in a remote
educational program meeting the requirements of this Section
may be claimed by the school district and shall be counted as
school work for general State aid purposes in accordance with
and subject to the limitations of Section 18-8.05 of this Code
or primary State aid purposes in accordance with and subject to
the limitations of Section 18-8.15 of this Code.
(d) The impact of remote educational programs on wages,
hours, and terms and conditions of employment of educational
employees within the school district shall be subject to local
collective bargaining agreements.
(e) The use of a home or other location outside of a school
building for a remote educational program shall not cause the
home or other location to be deemed a public school facility.
(f) A remote educational program may be used, but is not
required, for instruction delivered to a student in the home or
other location outside of a school building that is not claimed
for general State aid purposes under Section 18-8.05 of this

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Code or primary State aid purposes under Section 18-8.15 of
this Code.
(g) School districts that, pursuant to this Section, adopt
a policy for a remote educational program must submit to the
State Board of Education a copy of the policy and any
amendments thereto, as well as data on student participation in
a format specified by the State Board of Education. The State
Board of Education may perform or contract with an outside
entity to perform an evaluation of remote educational programs
in this State.
(h) The State Board of Education may adopt any rules
necessary to ensure compliance by remote educational programs
with the requirements of this Section and other applicable
legal requirements.
(Source: P.A. 96-684, eff. 8-25-09; 97-339, eff. 8-12-11.)
(105 ILCS 5/11E-135)
Sec. 11E-135. Incentives. For districts reorganizing under
this Article and for a district or districts that annex all of
the territory of one or more entire other school districts in
accordance with Article 7 of this Code, the following payments
shall be made from appropriations made for these purposes:
(a)(1) For a combined school district, as defined in
Section 11E-20 of this Code, or for a unit district, as defined
in Section 11E-25 of this Code, for its first year of
existence, the general State aid and supplemental general State

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aid calculated under Section 18-8.05 of this Code or the
primary State aid and supplemental grants calculated under
Section 18-8.15 of this Code, as applicable, shall be computed
for the new district and for the previously existing districts
for which property is totally included within the new district.
If the computation on the basis of the previously existing
districts is greater, a supplementary payment equal to the
difference shall be made for the first 4 years of existence of
the new district.
(2) For a school district that annexes all of the territory
of one or more entire other school districts as defined in
Article 7 of this Code, for the first year during which the
change of boundaries attributable to the annexation becomes
effective for all purposes, as determined under Section 7-9 of
this Code, the general State aid and supplemental general State
aid calculated under Section 18-8.05 of this Code or the
primary State aid and supplemental grants calculated under
Section 18-8.15 of this Code, as applicable, shall be computed
for the annexing district as constituted after the annexation
and for the annexing and each annexed district as constituted
prior to the annexation; and if the computation on the basis of
the annexing and annexed districts as constituted prior to the
annexation is greater, then a supplementary payment equal to
the difference shall be made for the first 4 years of existence
of the annexing school district as constituted upon the
annexation.

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(3) For 2 or more school districts that annex all of the
territory of one or more entire other school districts, as
defined in Article 7 of this Code, for the first year during
which the change of boundaries attributable to the annexation
becomes effective for all purposes, as determined under Section
7-9 of this Code, the general State aid and supplemental
general State aid calculated under Section 18-8.05 of this Code
or the primary State aid and supplemental grants calculated
under Section 18-8.15 of this Code, as applicable, shall be
computed for each annexing district as constituted after the
annexation and for each annexing and annexed district as
constituted prior to the annexation; and if the aggregate of
the general State aid and supplemental general State aid or
primary State aid and supplemental grants, as applicable, as so
computed for the annexing districts as constituted after the
annexation is less than the aggregate of the general State aid
and supplemental general State aid or primary State aid and
supplemental grants, as applicable, as so computed for the
annexing and annexed districts, as constituted prior to the
annexation, then a supplementary payment equal to the
difference shall be made and allocated between or among the
annexing districts, as constituted upon the annexation, for the
first 4 years of their existence. The total difference payment
shall be allocated between or among the annexing districts in
the same ratio as the pupil enrollment from that portion of the
annexed district or districts that is annexed to each annexing

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district bears to the total pupil enrollment from the entire
annexed district or districts, as such pupil enrollment is
determined for the school year last ending prior to the date
when the change of boundaries attributable to the annexation
becomes effective for all purposes. The amount of the total
difference payment and the amount thereof to be allocated to
the annexing districts shall be computed by the State Board of
Education on the basis of pupil enrollment and other data that
shall be certified to the State Board of Education, on forms
that it shall provide for that purpose, by the regional
superintendent of schools for each educational service region
in which the annexing and annexed districts are located.
(4) For a school district conversion, as defined in Section
11E-15 of this Code, or a multi-unit conversion, as defined in
subsection (b) of Section 11E-30 of this Code, if in their
first year of existence the newly created elementary districts
and the newly created high school district, from a school
district conversion, or the newly created elementary district
or districts and newly created combined high school - unit
district, from a multi-unit conversion, qualify for less
general State aid under Section 18-8.05 of this Code or primary
State aid under Section 18-8.15 of this Code than would have
been payable under Section 18-8.05 or 18-8.15, as applicable,
for that same year to the previously existing districts, then a
supplementary payment equal to that difference shall be made
for the first 4 years of existence of the newly created

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districts. The aggregate amount of each supplementary payment
shall be allocated among the newly created districts in the
proportion that the deemed pupil enrollment in each district
during its first year of existence bears to the actual
aggregate pupil enrollment in all of the districts during their
first year of existence. For purposes of each allocation:
(A) the deemed pupil enrollment of the newly created
high school district from a school district conversion
shall be an amount equal to its actual pupil enrollment for
its first year of existence multiplied by 1.25;
(B) the deemed pupil enrollment of each newly created
elementary district from a school district conversion
shall be an amount equal to its actual pupil enrollment for
its first year of existence reduced by an amount equal to
the product obtained when the amount by which the newly
created high school district's deemed pupil enrollment
exceeds its actual pupil enrollment for its first year of
existence is multiplied by a fraction, the numerator of
which is the actual pupil enrollment of the newly created
elementary district for its first year of existence and the
denominator of which is the actual aggregate pupil
enrollment of all of the newly created elementary districts
for their first year of existence;
(C) the deemed high school pupil enrollment of the
newly created combined high school - unit district from a
multi-unit conversion shall be an amount equal to its

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actual grades 9 through 12 pupil enrollment for its first
year of existence multiplied by 1.25; and
(D) the deemed elementary pupil enrollment of each
newly created district from a multi-unit conversion shall
be an amount equal to each district's actual grade K
through 8 pupil enrollment for its first year of existence,
reduced by an amount equal to the product obtained when the
amount by which the newly created combined high school -
unit district's deemed high school pupil enrollment
exceeds its actual grade 9 through 12 pupil enrollment for
its first year of existence is multiplied by a fraction,
the numerator of which is the actual grade K through 8
pupil enrollment of each newly created district for its
first year of existence and the denominator of which is the
actual aggregate grade K through 8 pupil enrollment of all
such newly created districts for their first year of
existence.
The aggregate amount of each supplementary payment under
this subdivision (4) and the amount thereof to be allocated to
the newly created districts shall be computed by the State
Board of Education on the basis of pupil enrollment and other
data, which shall be certified to the State Board of Education,
on forms that it shall provide for that purpose, by the
regional superintendent of schools for each educational
service region in which the newly created districts are
located.

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(5) For a partial elementary unit district, as defined in
subsection (a) or (c) of Section 11E-30 of this Code, if, in
the first year of existence, the newly created partial
elementary unit district qualifies for less general State aid
and supplemental general State aid under Section 18-8.05 of
this Code or less primary State aid and supplemental grants
under Section 18-8.15 of this Code, as applicable, than would
have been payable under those Sections that Section for that
same year to the previously existing districts that formed the
partial elementary unit district, then a supplementary payment
equal to that difference shall be made to the partial
elementary unit district for the first 4 years of existence of
that newly created district.
(6) For an elementary opt-in, as described in subsection
(d) of Section 11E-30 of this Code, the general State aid or
primary State aid difference shall be computed in accordance
with paragraph (5) of this subsection (a) as if the elementary
opt-in was included in an optional elementary unit district at
the optional elementary unit district's original effective
date. If the calculation in this paragraph (6) is less than
that calculated in paragraph (5) of this subsection (a) at the
optional elementary unit district's original effective date,
then no adjustments may be made. If the calculation in this
paragraph (6) is more than that calculated in paragraph (5) of
this subsection (a) at the optional elementary unit district's
original effective date, then the excess must be paid as

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follows:
(A) If the effective date for the elementary opt-in is
one year after the effective date for the optional
elementary unit district, 100% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the
elementary opt-in.
(B) If the effective date for the elementary opt-in is
2 years after the effective date for the optional
elementary unit district, 75% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the
elementary opt-in.
(C) If the effective date for the elementary opt-in is
3 years after the effective date for the optional
elementary unit district, 50% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the
elementary opt-in.
(D) If the effective date for the elementary opt-in is
4 years after the effective date for the optional
elementary unit district, 25% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the
elementary opt-in.
(E) If the effective date for the elementary opt-in is

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5 years after the effective date for the optional
elementary unit district, the optional elementary unit
district is not eligible for any additional incentives due
to the elementary opt-in.
(6.5) For a school district that annexes territory detached
from another school district whereby the enrollment of the
annexing district increases by 90% or more as a result of the
annexation, for the first year during which the change of
boundaries attributable to the annexation becomes effective
for all purposes as determined under Section 7-9 of this Code,
the general State aid and supplemental general State aid or
primary State aid and supplemental grants, as applicable,
calculated under this Section shall be computed for the
district gaining territory and the district losing territory as
constituted after the annexation and for the same districts as
constituted prior to the annexation; and if the aggregate of
the general State aid and supplemental general State aid or
primary State aid and supplemental grants, as applicable, as so
computed for the district gaining territory and the district
losing territory as constituted after the annexation is less
than the aggregate of the general State aid and supplemental
general State aid or primary State aid and supplemental grants,
as applicable, as so computed for the district gaining
territory and the district losing territory as constituted
prior to the annexation, then a supplementary payment shall be
made to the annexing district for the first 4 years of

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existence after the annexation, equal to the difference
multiplied by the ratio of student enrollment in the territory
detached to the total student enrollment in the district losing
territory for the year prior to the effective date of the
annexation. The amount of the total difference and the
proportion paid to the annexing district shall be computed by
the State Board of Education on the basis of pupil enrollment
and other data that must be submitted to the State Board of
Education in accordance with Section 7-14A of this Code. The
changes to this Section made by Public Act 95-707 are intended
to be retroactive and applicable to any annexation taking
effect on or after July 1, 2004. For annexations that are
eligible for payments under this paragraph (6.5) and that are
effective on or after July 1, 2004, but before January 11, 2008
(the effective date of Public Act 95-707), the first required
yearly payment under this paragraph (6.5) shall be paid in the
fiscal year of January 11, 2008 (the effective date of Public
Act 95-707). Subsequent required yearly payments shall be paid
in subsequent fiscal years until the payment obligation under
this paragraph (6.5) is complete.
(7) Claims for financial assistance under this subsection
(a) may not be recomputed except as expressly provided under
Section 18-8.05 or 18-8.15 of this Code.
(8) Any supplementary payment made under this subsection
(a) must be treated as separate from all other payments made
pursuant to Section 18-8.05 or 18-8.15 of this Code.

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(b)(1) After the formation of a combined school district,
as defined in Section 11E-20 of this Code, or a unit district,
as defined in Section 11E-25 of this Code, a computation shall
be made to determine the difference between the salaries
effective in each of the previously existing districts on June
30, prior to the creation of the new district. For the first 4
years after the formation of the new district, a supplementary
State aid reimbursement shall be paid to the new district equal
to the difference between the sum of the salaries earned by
each of the certificated members of the new district, while
employed in one of the previously existing districts during the
year immediately preceding the formation of the new district,
and the sum of the salaries those certificated members would
have been paid during the year immediately prior to the
formation of the new district if placed on the salary schedule
of the previously existing district with the highest salary
schedule.
(2) After the territory of one or more school districts is
annexed by one or more other school districts as defined in
Article 7 of this Code, a computation shall be made to
determine the difference between the salaries effective in each
annexed district and in the annexing district or districts as
they were each constituted on June 30 preceding the date when
the change of boundaries attributable to the annexation became
effective for all purposes, as determined under Section 7-9 of
this Code. For the first 4 years after the annexation, a

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supplementary State aid reimbursement shall be paid to each
annexing district as constituted after the annexation equal to
the difference between the sum of the salaries earned by each
of the certificated members of the annexing district as
constituted after the annexation, while employed in an annexed
or annexing district during the year immediately preceding the
annexation, and the sum of the salaries those certificated
members would have been paid during the immediately preceding
year if placed on the salary schedule of whichever of the
annexing or annexed districts had the highest salary schedule
during the immediately preceding year.
(3) For each new high school district formed under a school
district conversion, as defined in Section 11E-15 of this Code,
the State shall make a supplementary payment for 4 years equal
to the difference between the sum of the salaries earned by
each certified member of the new high school district, while
employed in one of the previously existing districts, and the
sum of the salaries those certified members would have been
paid if placed on the salary schedule of the previously
existing district with the highest salary schedule.
(4) For each newly created partial elementary unit
district, the State shall make a supplementary payment for 4
years equal to the difference between the sum of the salaries
earned by each certified member of the newly created partial
elementary unit district, while employed in one of the
previously existing districts that formed the partial

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elementary unit district, and the sum of the salaries those
certified members would have been paid if placed on the salary
schedule of the previously existing district with the highest
salary schedule. The salary schedules used in the calculation
shall be those in effect in the previously existing districts
for the school year prior to the creation of the new partial
elementary unit district.
(5) For an elementary district opt-in, as described in
subsection (d) of Section 11E-30 of this Code, the salary
difference incentive shall be computed in accordance with
paragraph (4) of this subsection (b) as if the opted-in
elementary district was included in the optional elementary
unit district at the optional elementary unit district's
original effective date. If the calculation in this paragraph
(5) is less than that calculated in paragraph (4) of this
subsection (b) at the optional elementary unit district's
original effective date, then no adjustments may be made. If
the calculation in this paragraph (5) is more than that
calculated in paragraph (4) of this subsection (b) at the
optional elementary unit district's original effective date,
then the excess must be paid as follows:
(A) If the effective date for the elementary opt-in is
one year after the effective date for the optional
elementary unit district, 100% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the

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elementary opt-in.
(B) If the effective date for the elementary opt-in is
2 years after the effective date for the optional
elementary unit district, 75% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the
elementary opt-in.
(C) If the effective date for the elementary opt-in is
3 years after the effective date for the optional
elementary unit district, 50% of the calculated excess
shall be paid to the optional elementary unit district in
each of the first 4 years after the effective date of the
elementary opt-in.
(D) If the effective date for the elementary opt-in is
4 years after the effective date for the partial elementary
unit district, 25% of the calculated excess shall be paid
to the optional elementary unit district in each of the
first 4 years after the effective date of the elementary
opt-in.
(E) If the effective date for the elementary opt-in is
5 years after the effective date for the optional
elementary unit district, the optional elementary unit
district is not eligible for any additional incentives due
to the elementary opt-in.
(5.5) After the formation of a cooperative high school by 2
or more school districts under Section 10-22.22c of this Code,

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a computation shall be made to determine the difference between
the salaries effective in each of the previously existing high
schools on June 30 prior to the formation of the cooperative
high school. For the first 4 years after the formation of the
cooperative high school, a supplementary State aid
reimbursement shall be paid to the cooperative high school
equal to the difference between the sum of the salaries earned
by each of the certificated members of the cooperative high
school while employed in one of the previously existing high
schools during the year immediately preceding the formation of
the cooperative high school and the sum of the salaries those
certificated members would have been paid during the year
immediately prior to the formation of the cooperative high
school if placed on the salary schedule of the previously
existing high school with the highest salary schedule.
(5.10) After the annexation of territory detached from
another school district whereby the enrollment of the annexing
district increases by 90% or more as a result of the
annexation, a computation shall be made to determine the
difference between the salaries effective in the district
gaining territory and the district losing territory as they
each were constituted on June 30 preceding the date when the
change of boundaries attributable to the annexation became
effective for all purposes as determined under Section 7-9 of
this Code. For the first 4 years after the annexation, a
supplementary State aid reimbursement shall be paid to the

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annexing district equal to the difference between the sum of
the salaries earned by each of the certificated members of the
annexing district as constituted after the annexation while
employed in the district gaining territory or the district
losing territory during the year immediately preceding the
annexation and the sum of the salaries those certificated
members would have been paid during such immediately preceding
year if placed on the salary schedule of whichever of the
district gaining territory or district losing territory had the
highest salary schedule during the immediately preceding year.
To be eligible for supplementary State aid reimbursement under
this Section, the intergovernmental agreement to be submitted
pursuant to Section 7-14A of this Code must show that staff
members were transferred from the control of the district
losing territory to the control of the district gaining
territory in the annexation. The changes to this Section made
by Public Act 95-707 are intended to be retroactive and
applicable to any annexation taking effect on or after July 1,
2004. For annexations that are eligible for payments under this
paragraph (5.10) and that are effective on or after July 1,
2004, but before January 11, 2008 (the effective date of Public
Act 95-707), the first required yearly payment under this
paragraph (5.10) shall be paid in the fiscal year of January
11, 2008 (the effective date of Public Act 95-707). Subsequent
required yearly payments shall be paid in subsequent fiscal
years until the payment obligation under this paragraph (5.10)

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is complete.
(5.15) After the deactivation of a school facility in
accordance with Section 10-22.22b of this Code, a computation
shall be made to determine the difference between the salaries
effective in the sending school district and each receiving
school district on June 30 prior to the deactivation of the
school facility. For the lesser of the first 4 years after the
deactivation of the school facility or the length of the
deactivation agreement, including any renewals of the original
deactivation agreement, a supplementary State aid
reimbursement shall be paid to each receiving district equal to
the difference between the sum of the salaries earned by each
of the certificated members transferred to that receiving
district as a result of the deactivation while employed in the
sending district during the year immediately preceding the
deactivation and the sum of the salaries those certificated
members would have been paid during the year immediately
preceding the deactivation if placed on the salary schedule of
the sending or receiving district with the highest salary
schedule.
(6) The supplementary State aid reimbursement under this
subsection (b) shall be treated as separate from all other
payments made pursuant to Section 18-8.05 of this Code. In the
case of the formation of a new district or cooperative high
school or a deactivation, reimbursement shall begin during the
first year of operation of the new district or cooperative high

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school or the first year of the deactivation, and in the case
of an annexation of the territory of one or more school
districts by one or more other school districts or the
annexation of territory detached from a school district whereby
the enrollment of the annexing district increases by 90% or
more as a result of the annexation, reimbursement shall begin
during the first year when the change in boundaries
attributable to the annexation becomes effective for all
purposes as determined pursuant to Section 7-9 of this Code,
except that for an annexation of territory detached from a
school district that is effective on or after July 1, 2004, but
before January 11, 2008 (the effective date of Public Act
95-707), whereby the enrollment of the annexing district
increases by 90% or more as a result of the annexation,
reimbursement shall begin during the fiscal year of January 11,
2008 (the effective date of Public Act 95-707). Each year that
the new, annexing, or receiving district or cooperative high
school, as the case may be, is entitled to receive
reimbursement, the number of eligible certified members who are
employed on October 1 in the district or cooperative high
school shall be certified to the State Board of Education on
prescribed forms by October 15 and payment shall be made on or
before November 15 of that year.
(c)(1) For the first year after the formation of a combined
school district, as defined in Section 11E-20 of this Code or a
unit district, as defined in Section 11E-25 of this Code, a

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computation shall be made totaling each previously existing
district's audited fund balances in the educational fund,
working cash fund, operations and maintenance fund, and
transportation fund for the year ending June 30 prior to the
referendum for the creation of the new district. The new
district shall be paid supplementary State aid equal to the sum
of the differences between the deficit of the previously
existing district with the smallest deficit and the deficits of
each of the other previously existing districts.
(2) For the first year after the annexation of all of the
territory of one or more entire school districts by another
school district, as defined in Article 7 of this Code,
computations shall be made, for the year ending June 30 prior
to the date that the change of boundaries attributable to the
annexation is allowed by the affirmative decision issued by the
regional board of school trustees under Section 7-6 of this
Code, notwithstanding any effort to seek administrative review
of the decision, totaling the annexing district's and totaling
each annexed district's audited fund balances in their
respective educational, working cash, operations and
maintenance, and transportation funds. The annexing district
as constituted after the annexation shall be paid supplementary
State aid equal to the sum of the differences between the
deficit of whichever of the annexing or annexed districts as
constituted prior to the annexation had the smallest deficit
and the deficits of each of the other districts as constituted

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prior to the annexation.
(3) For the first year after the annexation of all of the
territory of one or more entire school districts by 2 or more
other school districts, as defined by Article 7 of this Code,
computations shall be made, for the year ending June 30 prior
to the date that the change of boundaries attributable to the
annexation is allowed by the affirmative decision of the
regional board of school trustees under Section 7-6 of this
Code, notwithstanding any action for administrative review of
the decision, totaling each annexing and annexed district's
audited fund balances in their respective educational, working
cash, operations and maintenance, and transportation funds.
The annexing districts as constituted after the annexation
shall be paid supplementary State aid, allocated as provided in
this paragraph (3), in an aggregate amount equal to the sum of
the differences between the deficit of whichever of the
annexing or annexed districts as constituted prior to the
annexation had the smallest deficit and the deficits of each of
the other districts as constituted prior to the annexation. The
aggregate amount of the supplementary State aid payable under
this paragraph (3) shall be allocated between or among the
annexing districts as follows:
(A) the regional superintendent of schools for each
educational service region in which an annexed district is
located prior to the annexation shall certify to the State
Board of Education, on forms that it shall provide for that

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purpose, the value of all taxable property in each annexed
district, as last equalized or assessed by the Department
of Revenue prior to the annexation, and the equalized
assessed value of each part of the annexed district that
was annexed to or included as a part of an annexing
district;
(B) using equalized assessed values as certified by the
regional superintendent of schools under clause (A) of this
paragraph (3), the combined audited fund balance deficit of
each annexed district as determined under this Section
shall be apportioned between or among the annexing
districts in the same ratio as the equalized assessed value
of that part of the annexed district that was annexed to or
included as a part of an annexing district bears to the
total equalized assessed value of the annexed district; and
(C) the aggregate supplementary State aid payment
under this paragraph (3) shall be allocated between or
among, and shall be paid to, the annexing districts in the
same ratio as the sum of the combined audited fund balance
deficit of each annexing district as constituted prior to
the annexation, plus all combined audited fund balance
deficit amounts apportioned to that annexing district
under clause (B) of this subsection, bears to the aggregate
of the combined audited fund balance deficits of all of the
annexing and annexed districts as constituted prior to the
annexation.

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(4) For the new elementary districts and new high school
district formed through a school district conversion, as
defined in Section 11E-15 of this Code or the new elementary
district or districts and new combined high school - unit
district formed through a multi-unit conversion, as defined in
subsection (b) of Section 11E-30 of this Code, a computation
shall be made totaling each previously existing district's
audited fund balances in the educational fund, working cash
fund, operations and maintenance fund, and transportation fund
for the year ending June 30 prior to the referendum
establishing the new districts. In the first year of the new
districts, the State shall make a one-time supplementary
payment equal to the sum of the differences between the deficit
of the previously existing district with the smallest deficit
and the deficits of each of the other previously existing
districts. A district with a combined balance among the 4 funds
that is positive shall be considered to have a deficit of zero.
The supplementary payment shall be allocated among the newly
formed high school and elementary districts in the manner
provided by the petition for the formation of the districts, in
the form in which the petition is approved by the regional
superintendent of schools or State Superintendent of Education
under Section 11E-50 of this Code.
(5) For each newly created partial elementary unit
district, as defined in subsection (a) or (c) of Section 11E-30
of this Code, a computation shall be made totaling the audited

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fund balances of each previously existing district that formed
the new partial elementary unit district in the educational
fund, working cash fund, operations and maintenance fund, and
transportation fund for the year ending June 30 prior to the
referendum for the formation of the partial elementary unit
district. In the first year of the new partial elementary unit
district, the State shall make a one-time supplementary payment
to the new district equal to the sum of the differences between
the deficit of the previously existing district with the
smallest deficit and the deficits of each of the other
previously existing districts. A district with a combined
balance among the 4 funds that is positive shall be considered
to have a deficit of zero.
(6) For an elementary opt-in as defined in subsection (d)
of Section 11E-30 of this Code, the deficit fund balance
incentive shall be computed in accordance with paragraph (5) of
this subsection (c) as if the opted-in elementary was included
in the optional elementary unit district at the optional
elementary unit district's original effective date. If the
calculation in this paragraph (6) is less than that calculated
in paragraph (5) of this subsection (c) at the optional
elementary unit district's original effective date, then no
adjustments may be made. If the calculation in this paragraph
(6) is more than that calculated in paragraph (5) of this
subsection (c) at the optional elementary unit district's
original effective date, then the excess must be paid as

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follows:
(A) If the effective date for the elementary opt-in is
one year after the effective date for the optional
elementary unit district, 100% of the calculated excess
shall be paid to the optional elementary unit district in
the first year after the effective date of the elementary
opt-in.
(B) If the effective date for the elementary opt-in is
2 years after the effective date for the optional
elementary unit district, 75% of the calculated excess
shall be paid to the optional elementary unit district in
the first year after the effective date of the elementary
opt-in.
(C) If the effective date for the elementary opt-in is
3 years after the effective date for the optional
elementary unit district, 50% of the calculated excess
shall be paid to the optional elementary unit district in
the first year after the effective date of the elementary
opt-in.
(D) If the effective date for the elementary opt-in is
4 years after the effective date for the optional
elementary unit district, 25% of the calculated excess
shall be paid to the optional elementary unit district in
the first year after the effective date of the elementary
opt-in.
(E) If the effective date for the elementary opt-in is

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5 years after the effective date for the optional
elementary unit district, the optional elementary unit
district is not eligible for any additional incentives due
to the elementary opt-in.
(6.5) For the first year after the annexation of territory
detached from another school district whereby the enrollment of
the annexing district increases by 90% or more as a result of
the annexation, a computation shall be made totaling the
audited fund balances of the district gaining territory and the
audited fund balances of the district losing territory in the
educational fund, working cash fund, operations and
maintenance fund, and transportation fund for the year ending
June 30 prior to the date that the change of boundaries
attributable to the annexation is allowed by the affirmative
decision of the regional board of school trustees under Section
7-6 of this Code, notwithstanding any action for administrative
review of the decision. The annexing district as constituted
after the annexation shall be paid supplementary State aid
equal to the difference between the deficit of whichever
district included in this calculation as constituted prior to
the annexation had the smallest deficit and the deficit of each
other district included in this calculation as constituted
prior to the annexation, multiplied by the ratio of equalized
assessed value of the territory detached to the total equalized
assessed value of the district losing territory. The regional
superintendent of schools for the educational service region in

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which a district losing territory is located prior to the
annexation shall certify to the State Board of Education the
value of all taxable property in the district losing territory
and the value of all taxable property in the territory being
detached, as last equalized or assessed by the Department of
Revenue prior to the annexation. To be eligible for
supplementary State aid reimbursement under this Section, the
intergovernmental agreement to be submitted pursuant to
Section 7-14A of this Code must show that fund balances were
transferred from the district losing territory to the district
gaining territory in the annexation. The changes to this
Section made by Public Act 95-707 are intended to be
retroactive and applicable to any annexation taking effect on
or after July 1, 2004. For annexations that are eligible for
payments under this paragraph (6.5) and that are effective on
or after July 1, 2004, but before January 11, 2008 (the
effective date of Public Act 95-707), the required payment
under this paragraph (6.5) shall be paid in the fiscal year of
January 11, 2008 (the effective date of Public Act 95-707).
(7) For purposes of any calculation required under
paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
subsection (c), a district with a combined fund balance that is
positive shall be considered to have a deficit of zero. For
purposes of determining each district's audited fund balances
in its educational fund, working cash fund, operations and
maintenance fund, and transportation fund for the specified

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year ending June 30, as provided in paragraphs (1), (2), (3),
(4), (5), (6), and (6.5) of this subsection (c), the balance of
each fund shall be deemed decreased by an amount equal to the
amount of the annual property tax theretofore levied in the
fund by the district for collection and payment to the district
during the calendar year in which the June 30 fell, but only to
the extent that the tax so levied in the fund actually was
received by the district on or before or comprised a part of
the fund on such June 30. For purposes of determining each
district's audited fund balances, a calculation shall be made
for each fund to determine the average for the 3 years prior to
the specified year ending June 30, as provided in paragraphs
(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
of the district's expenditures in the categories "purchased
services", "supplies and materials", and "capital outlay", as
those categories are defined in rules of the State Board of
Education. If this 3-year average is less than the district's
expenditures in these categories for the specified year ending
June 30, as provided in paragraphs (1), (2), (3), (4), (5),
(6), and (6.5) of this subsection (c), then the 3-year average
shall be used in calculating the amounts payable under this
Section in place of the amounts shown in these categories for
the specified year ending June 30, as provided in paragraphs
(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
Any deficit because of State aid not yet received may not be
considered in determining the June 30 deficits. The same basis

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of accounting shall be used by all previously existing
districts and by all annexing or annexed districts, as
constituted prior to the annexation, in making any computation
required under paragraphs (1), (2), (3), (4), (5), (6), and
(6.5) of this subsection (c).
(8) The supplementary State aid payments under this
subsection (c) shall be treated as separate from all other
payments made pursuant to Section 18-8.05 of this Code.
(d)(1) Following the formation of a combined school
district, as defined in Section 11E-20 of this Code, a new unit
district, as defined in Section 11E-25 of this Code, a new
elementary district or districts and a new high school district
formed through a school district conversion, as defined in
Section 11E-15 of this Code, a new partial elementary unit
district, as defined in Section 11E-30 of this Code, or a new
elementary district or districts formed through a multi-unit
conversion, as defined in subsection (b) of Section 11E-30 of
this Code, or the annexation of all of the territory of one or
more entire school districts by one or more other school
districts, as defined in Article 7 of this Code, a
supplementary State aid reimbursement shall be paid for the
number of school years determined under the following table to
each new or annexing district equal to the sum of $4,000 for
each certified employee who is employed by the district on a
full-time basis for the regular term of the school year:

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Reorganized District's Rank Reorganized District's Rank
by type of district (unit, in Average Daily Attendance
high school, elementary) By Quintile
in Equalized Assessed Value
Per Pupil by Quintile
3rd, 4th,
1st 2nd or 5th
Quintile Quintile Quintile
1st Quintile 1 year 1 year 1 year
2nd Quintile 1 year 2 years 2 years
3rd Quintile 2 years 3 years 3 years
4th Quintile 2 years 3 years 3 years
5th Quintile 2 years 3 years 3 years
The State Board of Education shall make a one-time calculation
of a reorganized district's quintile ranks. The average daily
attendance used in this calculation shall be the best 3 months'
average daily attendance for the district's first year. The
equalized assessed value per pupil shall be the district's real
property equalized assessed value used in calculating the
district's first-year general State aid claim, under Section
18-8.05 of this Code, or first-year primary State aid claim,
under Section 18-8.15 of this Code, as applicable, divided by
the best 3 months' average daily attendance.
No annexing or resulting school district shall be entitled
to supplementary State aid under this subsection (d) unless the

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district acquires at least 30% of the average daily attendance
of the district from which the territory is being detached or
divided.
If a district results from multiple reorganizations that
would otherwise qualify the district for multiple payments
under this subsection (d) in any year, then the district shall
receive a single payment only for that year based solely on the
most recent reorganization.
(2) For an elementary opt-in, as defined in subsection (d)
of Section 11E-30 of this Code, the full-time certified staff
incentive shall be computed in accordance with paragraph (1) of
this subsection (d), equal to the sum of $4,000 for each
certified employee of the elementary district that opts-in who
is employed by the optional elementary unit district on a
full-time basis for the regular term of the school year. The
calculation from this paragraph (2) must be paid as follows:
(A) If the effective date for the elementary opt-in is
one year after the effective date for the optional
elementary unit district, 100% of the amount calculated in
this paragraph (2) shall be paid to the optional elementary
unit district for the number of years calculated in
paragraph (1) of this subsection (d) at the optional
elementary unit district's original effective date,
starting in the second year after the effective date of the
elementary opt-in.
(B) If the effective date for the elementary opt-in is

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2 years after the effective date for the optional
elementary unit district, 75% of the amount calculated in
this paragraph (2) shall be paid to the optional elementary
unit district for the number of years calculated in
paragraph (1) of this subsection (d) at the optional
elementary unit district's original effective date,
starting in the second year after the effective date of the
elementary opt-in.
(C) If the effective date for the elementary opt-in is
3 years after the effective date for the optional
elementary unit district, 50% of the amount calculated in
this paragraph (2) shall be paid to the optional elementary
unit district for the number of years calculated in
paragraph (1) of this subsection (d) at the optional
elementary unit district's original effective date,
starting in the second year after the effective date of the
elementary opt-in.
(D) If the effective date for the elementary opt-in is
4 years after the effective date for the optional
elementary unit district, 25% of the amount calculated in
this paragraph (2) shall be paid to the optional elementary
unit district for the number of years calculated in
paragraph (1) of this subsection (d) at the optional
elementary unit district's original effective date,
starting in the second year after the effective date of the
elementary opt-in.

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(E) If the effective date for the elementary opt-in is
5 years after the effective date for the optional
elementary unit district, the optional elementary unit
district is not eligible for any additional incentives due
to the elementary opt-in.
(2.5) Following the formation of a cooperative high school
by 2 or more school districts under Section 10-22.22c of this
Code, a supplementary State aid reimbursement shall be paid for
3 school years to the cooperative high school equal to the sum
of $4,000 for each certified employee who is employed by the
cooperative high school on a full-time basis for the regular
term of any such school year. If a cooperative high school
results from multiple agreements that would otherwise qualify
the cooperative high school for multiple payments under this
Section in any year, the cooperative high school shall receive
a single payment for that year based solely on the most recent
agreement.
(2.10) Following the annexation of territory detached from
another school district whereby the enrollment of the annexing
district increases 90% or more as a result of the annexation, a
supplementary State aid reimbursement shall be paid to the
annexing district equal to the sum of $4,000 for each certified
employee who is employed by the annexing district on a
full-time basis and shall be calculated in accordance with
subsection (a) of this Section. To be eligible for
supplementary State aid reimbursement under this Section, the

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intergovernmental agreement to be submitted pursuant to
Section 7-14A of this Code must show that certified staff
members were transferred from the control of the district
losing territory to the control of the district gaining
territory in the annexation. The changes to this Section made
by Public Act 95-707 are intended to be retroactive and
applicable to any annexation taking effect on or after July 1,
2004. For annexations that are eligible for payments under this
paragraph (2.10) and that are effective on or after July 1,
2004, but before January 11, 2008 (the effective date of Public
Act 95-707), the first required yearly payment under this
paragraph (2.10) shall be paid in the second fiscal year after
January 11, 2008 (the effective date of Public Act 95-707). Any
subsequent required yearly payments shall be paid in subsequent
fiscal years until the payment obligation under this paragraph
(2.10) is complete.
(2.15) Following the deactivation of a school facility in
accordance with Section 10-22.22b of this Code, a supplementary
State aid reimbursement shall be paid for the lesser of 3
school years or the length of the deactivation agreement,
including any renewals of the original deactivation agreement,
to each receiving school district equal to the sum of $4,000
for each certified employee who is employed by that receiving
district on a full-time basis for the regular term of any such
school year who was originally transferred to the control of
that receiving district as a result of the deactivation.

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Receiving districts are eligible for payments under this
paragraph (2.15) based on the certified employees transferred
to that receiving district as a result of the deactivation and
are not required to receive at least 30% of the deactivating
district's average daily attendance as required under
paragraph (1) of this subsection (d) to be eligible for
payments.
(3) The supplementary State aid reimbursement payable
under this subsection (d) shall be separate from and in
addition to all other payments made to the district pursuant to
any other Section of this Article.
(4) During May of each school year for which a
supplementary State aid reimbursement is to be paid to a new,
annexing, or receiving school district or cooperative high
school pursuant to this subsection (d), the school board or
governing board shall certify to the State Board of Education,
on forms furnished to the school board or governing board by
the State Board of Education for purposes of this subsection
(d), the number of certified employees for which the district
or cooperative high school is entitled to reimbursement under
this Section, together with the names, certificate numbers, and
positions held by the certified employees.
(5) Upon certification by the State Board of Education to
the State Comptroller of the amount of the supplementary State
aid reimbursement to which a school district or cooperative
high school is entitled under this subsection (d), the State

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Comptroller shall draw his or her warrant upon the State
Treasurer for the payment thereof to the school district or
cooperative high school and shall promptly transmit the payment
to the school district or cooperative high school through the
appropriate school treasurer.
(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
95-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
(105 ILCS 5/13A-8)
Sec. 13A-8. Funding.
(a) The State of Illinois shall provide funding for the
alternative school programs within each educational service
region and within the Chicago public school system by line item
appropriation made to the State Board of Education for that
purpose. This money, when appropriated, shall be provided to
the regional superintendent and to the Chicago Board of
Education, who shall establish a budget, including salaries,
for their alternative school programs. Each program shall
receive funding in the amount of $30,000 plus an amount based
on the ratio of the region's or Chicago's best 3 months'
average daily attendance in grades pre-kindergarten through 12
to the statewide totals of these amounts. For purposes of this
calculation, the best 3 months' average daily attendance for
each region or Chicago shall be calculated by adding to the
best 3 months' average daily attendance the number of
low-income students identified in the most recently available

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federal census multiplied by one-half times the percentage of
the region's or Chicago's low-income students to the State's
total low-income students. The State Board of Education shall
retain up to 1.1% of the appropriation to be used to provide
technical assistance, professional development, and
evaluations for the programs.
(a-5) Notwithstanding any other provisions of this
Section, for the 1998-1999 fiscal year, the total amount
distributed under subsection (a) for an alternative school
program shall be not less than the total amount that was
distributed under that subsection for that alternative school
program for the 1997-1998 fiscal year. If an alternative school
program is to receive a total distribution under subsection (a)
for the 1998-1999 fiscal year that is less than the total
distribution that the program received under that subsection
for the 1997-1998 fiscal year, that alternative school program
shall also receive, from a separate appropriation made for
purposes of this subsection (a-5), a supplementary payment
equal to the amount by which its total distribution under
subsection (a) for the 1997-1998 fiscal year exceeds the amount
of the total distribution that the alternative school program
receives under that subsection for the 1998-1999 fiscal year.
If the amount appropriated for supplementary payments to
alternative school programs under this subsection (a-5) is
insufficient for that purpose, those supplementary payments
shall be prorated among the alternative school programs

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entitled to receive those supplementary payments according to
the aggregate amount of the appropriation made for purposes of
this subsection (a-5).
(b) An alternative school program shall be entitled to
receive general State aid as calculated in subsection (K) of
Section 18-8.05 or primary State aid as calculated in
subsection (i) of Section 18-8.15 upon filing a claim as
provided therein. Any time that a student who is enrolled in an
alternative school program spends in work-based learning,
community service, or a similar alternative educational
setting shall be included in determining the student's minimum
number of clock hours of daily school work that constitute a
day of attendance for purposes of calculating general State aid
or primary State aid.
(c) An alternative school program may receive additional
funding from its school districts in such amount as may be
agreed upon by the parties and necessary to support the
program. In addition, an alternative school program is
authorized to accept and expend gifts, legacies, and grants,
including but not limited to federal grants, from any source
for purposes directly related to the conduct and operation of
the program.
(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
89-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
90-802, eff. 12-15-98.)

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(105 ILCS 5/13B-20.20)
Sec. 13B-20.20. Enrollment in other programs. General
Educational Development preparation programs are not eligible
for funding under this Article. A student may enroll in a
program approved under Section 18-8.05 or 18-8.15 of this Code,
as appropriate, or attend both the alternative learning
opportunities program and the regular school program to enhance
student performance and facilitate on-time graduation.
(Source: P.A. 92-42, eff. 1-1-02.)
(105 ILCS 5/13B-45)
Sec. 13B-45. Days and hours of attendance. An alternative
learning opportunities program shall provide students with at
least the minimum number of days of pupil attendance required
under Section 10-19 of this Code and the minimum number of
daily hours of school work required under Section 18-8.05 or
18-8.15 of this Code, provided that the State Board may approve
exceptions to these requirements if the program meets all of
the following conditions:
(1) The district plan submitted under Section
13B-25.15 of this Code establishes that a program providing
the required minimum number of days of attendance or daily
hours of school work would not serve the needs of the
program's students.
(2) Each day of attendance shall provide no fewer than
3 clock hours of school work, as defined under paragraph

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(1) of subsection (F) of Section 18-8.05 or subsection (f)
of Section 18-8.15 of this Code.
(3) Each day of attendance that provides fewer than 5
clock hours of school work shall also provide supplementary
services, including without limitation work-based
learning, student assistance programs, counseling, case
management, health and fitness programs, or life-skills or
conflict resolution training, in order to provide a total
daily program to the student of 5 clock hours. A program
may claim general State aid or primary State aid for up to
2 hours of the time each day that a student is receiving
supplementary services.
(4) Each program shall provide no fewer than 174 days
of actual pupil attendance during the school term; however,
approved evening programs that meet the requirements of
Section 13B-45 of this Code may offer less than 174 days of
actual pupil attendance during the school term.
(Source: P.A. 92-42, eff. 1-1-02.)
(105 ILCS 5/13B-50)
Sec. 13B-50. Eligibility to receive general State aid or
primary State aid. In order to receive general State aid or
primary State aid, alternative learning opportunities programs
must meet the requirements for claiming general State aid as
specified in Section 18-8.05 of this Code or primary State aid
as specified in Section 18-8.15 of this Code, as applicable,

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with the exception of the length of the instructional day,
which may be less than 5 hours of school work if the program
meets the criteria set forth under Sections 13B-50.5 and
13B-50.10 of this Code and if the program is approved by the
State Board.
(Source: P.A. 92-42, eff. 1-1-02.)
(105 ILCS 5/13B-50.10)
Sec. 13B-50.10. Additional criteria for general State aid
or primary State aid. In order to claim general State aid or
primary State aid, an alternative learning opportunities
program must meet the following criteria:
(1) Teacher professional development plans should include
education in the instruction of at-risk students.
(2) Facilities must meet the health, life, and safety
requirements in this Code.
(3) The program must comply with all other State and
federal laws applicable to education providers.
(Source: P.A. 92-42, eff. 1-1-02.)
(105 ILCS 5/13B-50.15)
Sec. 13B-50.15. Level of funding. Approved alternative
learning opportunities programs are entitled to claim general
State aid or primary State aid, subject to Sections 13B-50,
13B-50.5, and 13B-50.10 of this Code. Approved programs
operated by regional offices of education are entitled to

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receive general State aid or primary State aid at the
foundation level of support. A school district or consortium
must ensure that an approved program receives supplemental
general State aid, transportation reimbursements, and special
education resources, if appropriate, for students enrolled in
the program.
(Source: P.A. 92-42, eff. 1-1-02.)
(105 ILCS 5/14-7.02b)
Sec. 14-7.02b. Funding for children requiring special
education services. Payments to school districts for children
requiring special education services documented in their
individualized education program regardless of the program
from which these services are received, excluding children
claimed under Sections 14-7.02 and 14-7.03 of this Code, shall
be made in accordance with this Section. Funds received under
this Section may be used only for the provision of special
educational facilities and services as defined in Section
14-1.08 of this Code.
The appropriation for fiscal year 2005 through fiscal year
2014 and thereafter shall be based upon the IDEA child count of
all students in the State, excluding students claimed under
Sections 14-7.02 and 14-7.03 of this Code, on December 1 of the
fiscal year 2 years preceding, multiplied by 17.5% of the
general State aid foundation level of support established for
that fiscal year under Section 18-8.05 of this Code.

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Beginning with fiscal year 2005 and through fiscal year
2007, individual school districts shall not receive payments
under this Section totaling less than they received under the
funding authorized under Section 14-7.02a of this Code during
fiscal year 2004, pursuant to the provisions of Section
14-7.02a as they were in effect before the effective date of
this amendatory Act of the 93rd General Assembly. This base
level funding shall be computed first.
Beginning with fiscal year 2008 through fiscal year 2014
and each fiscal year thereafter, individual school districts
must not receive payments under this Section totaling less than
they received in fiscal year 2007. This funding shall be
computed last and shall be a separate calculation from any
other calculation set forth in this Section. This amount is
exempt from the requirements of Section 1D-1 of this Code.
Through fiscal year 2014, an An amount equal to 85% of the
funds remaining in the appropriation shall be allocated to
school districts based upon the district's average daily
attendance reported for purposes of Section 18-8.05 of this
Code for the preceding school year. Fifteen percent of the
funds remaining in the appropriation shall be allocated to
school districts based upon the district's low income eligible
pupil count used in the calculation of general State aid under
Section 18-8.05 of this Code for the same fiscal year. One
hundred percent of the funds computed and allocated to
districts under this Section shall be distributed and paid to

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school districts.
Through fiscal year 2014, for For individual students with
disabilities whose program costs exceed 4 times the district's
per capita tuition rate as calculated under Section 10-20.12a
of this Code, the costs in excess of 4 times the district's per
capita tuition rate shall be paid by the State Board of
Education from unexpended IDEA discretionary funds originally
designated for room and board reimbursement pursuant to Section
14-8.01 of this Code. The amount of tuition for these children
shall be determined by the actual cost of maintaining classes
for these children, using the per capita cost formula set forth
in Section 14-7.01 of this Code, with the program and cost
being pre-approved by the State Superintendent of Education.
Reimbursement for individual students with disabilities whose
program costs exceed 4 times the district's per capita tuition
rate shall be claimed beginning with costs encumbered for the
2004-2005 school year through the 2013-2014 school year and
thereafter.
Through fiscal year 2014, the The State Board of Education
shall prepare vouchers equal to one-fourth the amount allocated
to districts, for transmittal to the State Comptroller on the
30th day of September, December, and March, respectively, and
the final voucher, no later than June 20. Through fiscal year
2014, the The Comptroller shall make payments pursuant to this
Section to school districts as soon as possible after receipt
of vouchers. If the money appropriated from the General

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Assembly for such purposes for any year is insufficient, it
shall be apportioned on the basis of the payments due to school
districts.
Nothing in this Section shall be construed to decrease or
increase the percentage of all special education funds that are
allocated annually under Article 1D of this Code or to alter
the requirement that a school district provide special
education services.
Nothing in this amendatory Act of the 93rd General Assembly
shall eliminate any reimbursement obligation owed as of the
effective date of this amendatory Act of the 93rd General
Assembly to a school district with in excess of 500,000
inhabitants.
No funding shall be provided to school districts under this
Section after fiscal year 2014.
(Source: P.A. 93-1022, eff. 8-24-08. 95-705, eff. 1-8-08.)
(105 ILCS 5/14-7.03) (from Ch. 122, par. 14-7.03)
Sec. 14-7.03. Special Education Classes for Children from
Orphanages, Foster Family Homes, Children's Homes, or in State
Housing Units. If a school district maintains special education
classes on the site of orphanages and children's homes, or if
children from the orphanages, children's homes, foster family
homes, other State agencies, or State residential units for
children attend classes for children with disabilities in which
the school district is a participating member of a joint

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agreement, or if the children from the orphanages, children's
homes, foster family homes, other State agencies, or State
residential units attend classes for the children with
disabilities maintained by the school district, then
reimbursement shall be paid to eligible districts in accordance
with the provisions of this Section by the Comptroller as
directed by the State Superintendent of Education.
The amount of tuition for such children shall be determined
by the actual cost of maintaining such classes, using the per
capita cost formula set forth in Section 14-7.01, such program
and cost to be pre-approved by the State Superintendent of
Education.
On forms prepared by the State Superintendent of Education,
the district shall certify to the regional superintendent the
following:
(1) The name of the home or State residential unit with
the name of the owner or proprietor and address of those
maintaining it;
(2) That no service charges or other payments
authorized by law were collected in lieu of taxes therefrom
or on account thereof during either of the calendar years
included in the school year for which claim is being made;
(3) The number of children qualifying under this Act in
special education classes for instruction on the site of
the orphanages and children's homes;
(4) The number of children attending special education

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classes for children with disabilities in which the
district is a participating member of a special education
joint agreement;
(5) The number of children attending special education
classes for children with disabilities maintained by the
district;
(6) The computed amount of tuition payment claimed as
due, as approved by the State Superintendent of Education,
for maintaining these classes.
If a school district makes a claim for reimbursement under
Section 18-3 or 18-4 of this Code, Act it shall not include in
any claim filed under this Section a claim for such children.
Payments authorized by law, including State or federal grants
for education of children included in this Section, shall be
deducted in determining the tuition amount.
Nothing in this Act shall be construed so as to prohibit
reimbursement for the tuition of children placed in for profit
facilities. Private facilities shall provide adequate space at
the facility for special education classes provided by a school
district or joint agreement for children with disabilities who
are residents of the facility at no cost to the school district
or joint agreement upon request of the school district or joint
agreement. If such a private facility provides space at no cost
to the district or joint agreement for special education
classes provided to children with disabilities who are
residents of the facility, the district or joint agreement

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shall not include any costs for the use of those facilities in
its claim for reimbursement.
Reimbursement for tuition may include the cost of providing
summer school programs for children with severe and profound
disabilities served under this Section. Claims for that
reimbursement shall be filed by November 1 and shall be paid on
or before December 15 from appropriations made for the purposes
of this Section.
The State Board of Education shall establish such rules and
regulations as may be necessary to implement the provisions of
this Section.
Claims filed on behalf of programs operated under this
Section housed in a jail, detention center, or county-owned
shelter care facility shall be on an individual student basis
only for eligible students with disabilities. These claims
shall be in accordance with applicable rules.
Each district claiming reimbursement for a program
operated as a group program shall have an approved budget on
file with the State Board of Education prior to the initiation
of the program's operation. On September 30, December 31, and
March 31, the State Board of Education shall voucher payments
to group programs based upon the approved budget during the
year of operation. Final claims for group payments shall be
filed on or before July 15. Final claims for group programs
received at the State Board of Education on or before June 15
shall be vouchered by June 30. Final claims received at the

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State Board of Education between June 16 and July 15 shall be
vouchered by August 30. Claims for group programs received
after July 15 shall not be honored.
Each district claiming reimbursement for individual
students shall have the eligibility of those students verified
by the State Board of Education. On September 30, December 31,
and March 31, the State Board of Education shall voucher
payments for individual students based upon an estimated cost
calculated from the prior year's claim. Final claims for
individual students for the regular school term must be
received at the State Board of Education by July 15. Claims for
individual students received after July 15 shall not be
honored. Final claims for individual students shall be
vouchered by August 30.
Reimbursement shall be made based upon approved group
programs or individual students. The State Superintendent of
Education shall direct the Comptroller to pay a specified
amount to the district by the 30th day of September, December,
March, June, or August, respectively. However, notwithstanding
any other provisions of this Section or the School Code,
beginning with fiscal year 1994 and each fiscal year
thereafter, if the amount appropriated for any fiscal year is
less than the amount required for purposes of this Section, the
amount required to eliminate any insufficient reimbursement
for each district claim under this Section shall be reimbursed
on August 30 of the next fiscal year. Payments required to

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eliminate any insufficiency for prior fiscal year claims shall
be made before any claims are paid for the current fiscal year.
The claim of a school district otherwise eligible to be
reimbursed in accordance with Section 14-12.01 for the 1976-77
school year but for this amendatory Act of 1977 shall not be
paid unless the district ceases to maintain such classes for
one entire school year.
If a school district's current reimbursement payment for
the 1977-78 school year only is less than the prior year's
reimbursement payment owed, the district shall be paid the
amount of the difference between the payments in addition to
the current reimbursement payment, and the amount so paid shall
be subtracted from the amount of prior year's reimbursement
payment owed to the district.
Regional superintendents may operate special education
classes for children from orphanages, foster family homes,
children's homes, or State housing units located within the
educational services region upon consent of the school board
otherwise so obligated. In electing to assume the powers and
duties of a school district in providing and maintaining such a
special education program, the regional superintendent may
enter into joint agreements with other districts and may
contract with public or private schools or the orphanage,
foster family home, children's home, or State housing unit for
provision of the special education program. The regional
superintendent exercising the powers granted under this

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Section shall claim the reimbursement authorized by this
Section directly from the State Board of Education.
Any child who is not a resident of Illinois who is placed
in a child welfare institution, private facility, foster family
home, State operated program, orphanage, or children's home
shall have the payment for his educational tuition and any
related services assured by the placing agent.
For each disabled student who is placed in a residential
facility by an Illinois public agency or by any court in this
State, the costs for educating the student are eligible for
reimbursement under this Section.
The district of residence of the disabled student as
defined in Section 14-1.11a is responsible for the actual costs
of the student's special education program and is eligible for
reimbursement under this Section when placement is made by a
State agency or the courts.
When a dispute arises over the determination of the
district of residence under this Section, the district or
districts may appeal the decision in writing to the State
Superintendent of Education, who, upon review of materials
submitted and any other items or information he or she may
request for submission, shall issue a written decision on the
matter. The decision of the State Superintendent of Education
shall be final.
In the event a district does not make a tuition payment to
another district that is providing the special education

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program and services, the State Board of Education shall
immediately withhold 125% of the then remaining annual tuition
cost from the State aid or categorical aid payment due to the
school district that is determined to be the resident school
district. All funds withheld by the State Board of Education
shall immediately be forwarded to the school district where the
student is being served.
When a child eligible for services under this Section
14-7.03 must be placed in a nonpublic facility, that facility
shall meet the programmatic requirements of Section 14-7.02 and
its regulations, and the educational services shall be funded
only in accordance with this Section 14-7.03.
(Source: P.A. 95-313, eff. 8-20-07; 95-844, eff. 8-15-08.)
(105 ILCS 5/14-13.01) (from Ch. 122, par. 14-13.01)
Sec. 14-13.01. Reimbursement payable by State; amounts for
personnel and transportation.
(a) Through fiscal year 2014, for For staff working on
behalf of children who have not been identified as eligible for
special education and for eligible children with physical
disabilities, including all eligible children whose placement
has been determined under Section 14-8.02 in hospital or home
instruction, 1/2 of the teacher's salary but not more than
$1,000 annually per child or $9,000 per teacher, whichever is
less.
(a-5) A child qualifies for home or hospital instruction if

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it is anticipated that, due to a medical condition, the child
will be unable to attend school, and instead must be instructed
at home or in the hospital, for a period of 2 or more
consecutive weeks or on an ongoing intermittent basis. For
purposes of this Section, "ongoing intermittent basis" means
that the child's medical condition is of such a nature or
severity that it is anticipated that the child will be absent
from school due to the medical condition for periods of at
least 2 days at a time multiple times during the school year
totaling at least 10 days or more of absences. There shall be
no requirement that a child be absent from school a minimum
number of days before the child qualifies for home or hospital
instruction. In order to establish eligibility for home or
hospital services, a student's parent or guardian must submit
to the child's school district of residence a written statement
from a physician licensed to practice medicine in all of its
branches stating the existence of such medical condition, the
impact on the child's ability to participate in education, and
the anticipated duration or nature of the child's absence from
school. Home or hospital instruction may commence upon receipt
of a written physician's statement in accordance with this
Section, but instruction shall commence not later than 5 school
days after the school district receives the physician's
statement. Special education and related services required by
the child's IEP or services and accommodations required by the
child's federal Section 504 plan must be implemented as part of

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the child's home or hospital instruction, unless the IEP team
or federal Section 504 plan team determines that modifications
are necessary during the home or hospital instruction due to
the child's condition.
(a-10) Through fiscal year 2014, eligible Eligible
children to be included in any reimbursement under this
paragraph must regularly receive a minimum of one hour of
instruction each school day, or in lieu thereof of a minimum of
5 hours of instruction in each school week in order to qualify
for full reimbursement under this Section. If the attending
physician for such a child has certified that the child should
not receive as many as 5 hours of instruction in a school week,
however, reimbursement under this paragraph on account of that
child shall be computed proportionate to the actual hours of
instruction per week for that child divided by 5.
(a-15) The State Board of Education shall establish rules
governing the required qualifications of staff providing home
or hospital instruction.
(b) For children described in Section 14-1.02, 80% of the
cost of transportation approved as a related service in the
Individualized Education Program for each student in order to
take advantage of special educational facilities.
Transportation costs shall be determined in the same fashion as
provided in Section 29-5 of this Code, notwithstanding any
limitation in Section 29-5 of this Code on the fiscal years for
which reimbursement may be claimed, provided that,

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notwithstanding anything to the contrary contained in this
subsection (b) or Section 29-5 of this Code, the State Board of
Education shall award to a school district having a population
exceeding 500,000 inhabitants 30.7% of the funds appropriated
by the General Assembly for any fiscal year for purposes of
payment of transportation cost claims under this subsection
(b). For purposes of this subsection (b), the dates for
processing claims specified in Section 29-5 shall apply.
(c) Through fiscal year 2014, for For each qualified
worker, the annual sum of $9,000.
(d) Through fiscal year 2014, for For one full time
qualified director of the special education program of each
school district which maintains a fully approved program of
special education the annual sum of $9,000. Districts
participating in a joint agreement special education program
shall not receive such reimbursement if reimbursement is made
for a director of the joint agreement program.
(e) (Blank).
(f) (Blank).
(g) Through fiscal year 2014, for For readers, working with
blind or partially seeing children 1/2 of their salary but not
more than $400 annually per child. Readers may be employed to
assist such children and shall not be required to be certified
but prior to employment shall meet standards set up by the
State Board of Education.
(h) Through fiscal year 2014, for For non-certified

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employees, as defined by rules promulgated by the State Board
of Education, who deliver services to students with IEPs, 1/2
of the salary paid or $3,500 per employee, whichever is less.
(i) The State Board of Education shall set standards and
prescribe rules for determining the allocation of
reimbursement under this section on less than a full time basis
and for less than a school year.
When any school district eligible for reimbursement under
this Section operates a school or program approved by the State
Superintendent of Education for a number of days in excess of
the adopted school calendar but not to exceed 235 school days,
such reimbursement shall be increased by 1/180 of the amount or
rate paid hereunder for each day such school is operated in
excess of 180 days per calendar year.
Notwithstanding any other provision of law, any school
district receiving a payment under this Section or under
Section 14-7.02c 14-7.02, 14-7.02b, or 29-5 of this Code may
classify all or a portion of the funds that it receives in a
particular fiscal year or from primary general State aid
pursuant to Section 18-8.15 18-8.05 of this Code as funds
received in connection with any funding program for which it is
entitled to receive funds from the State in that fiscal year
(including, without limitation, any funding program referenced
in this Section), regardless of the source or timing of the
receipt. The district may not classify more funds as funds
received in connection with the funding program than the

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district is entitled to receive in that fiscal year for that
program. Any classification by a district must be made by a
resolution of its board of education. The resolution must
identify the amount of any payments or primary general State
aid to be classified under this paragraph and must specify the
funding program to which the funds are to be treated as
received in connection therewith. This resolution is
controlling as to the classification of funds referenced
therein. A certified copy of the resolution must be sent to the
State Superintendent of Education. The resolution shall still
take effect even though a copy of the resolution has not been
sent to the State Superintendent of Education in a timely
manner. No classification under this paragraph by a district
shall affect the total amount or timing of money the district
is entitled to receive under this Code. No classification under
this paragraph by a district shall in any way relieve the
district from or affect any requirements that otherwise would
apply with respect to that funding program, including any
accounting of funds by source, reporting expenditures by
original source and purpose, reporting requirements, or
requirements of providing services.
(Source: P.A. 96-257, eff. 8-11-09; 97-123, eff. 7-14-11.)
(105 ILCS 5/14C-12) (from Ch. 122, par. 14C-12)
Sec. 14C-12. Account of expenditures; Cost report;
Reimbursement. Each school district shall keep an accurate,

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detailed and separate account of all monies paid out by it for
the programs in transitional bilingual education required or
permitted by this Article, including transportation costs, and
shall annually report thereon for the school year ending June
30 indicating the average per pupil expenditure. Through fiscal
year 2014, each Each school district shall be reimbursed for
the amount by which such costs exceed the average per pupil
expenditure by such school district for the education of
children of comparable age who are not in any special education
program. Through fiscal year 2014, at At least 60% of
transitional bilingual education funding received from the
State must be used for the instructional costs of transitional
bilingual education.
Through fiscal year 2014, applications Applications for
preapproval for reimbursement for costs of transitional
bilingual education programs must be submitted to the State
Superintendent of Education at least 60 days before a
transitional bilingual education program is started, unless a
justifiable exception is granted by the State Superintendent of
Education. Applications shall set forth a plan for transitional
bilingual education established and maintained in accordance
with this Article.
Through fiscal year 2014, reimbursement Reimbursement
claims for transitional bilingual education programs shall be
made as follows:
Each school district shall claim reimbursement on a current

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basis for the first 3 quarters of the fiscal year and file a
final adjusted claim for the school year ended June 30
preceding computed in accordance with rules prescribed by the
State Superintendent's Office. The State Superintendent of
Education before approving any such claims shall determine
their accuracy and whether they are based upon services and
facilities provided under approved programs. Upon approval he
shall transmit to the Comptroller the vouchers showing the
amounts due for school district reimbursement claims. Upon
receipt of the final adjusted claims the State Superintendent
of Education shall make a final determination of the accuracy
of such claims. If the money appropriated by the General
Assembly for such purpose for any year is insufficient, it
shall be apportioned on the basis of the claims approved.
Failure on the part of the school district to prepare and
certify the final adjusted claims due under this Section may
constitute a forfeiture by the school district of its right to
be reimbursed by the State under this Section.
(Source: P.A. 96-1170, eff. 1-1-11.)
(105 ILCS 5/17-1) (from Ch. 122, par. 17-1)
Sec. 17-1. Annual Budget. The board of education of each
school district under 500,000 inhabitants shall, within or
before the first quarter of each fiscal year, adopt and file
with the State Board of Education an annual balanced budget
which it deems necessary to defray all necessary expenses and

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liabilities of the district, and in such annual budget shall
specify the objects and purposes of each item and amount needed
for each object or purpose.
The budget shall be entered upon a School District Budget
form prepared and provided by the State Board of Education and
therein shall contain a statement of the cash on hand at the
beginning of the fiscal year, an estimate of the cash expected
to be received during such fiscal year from all sources, an
estimate of the expenditures contemplated for such fiscal year,
and a statement of the estimated cash expected to be on hand at
the end of such year. The estimate of taxes to be received may
be based upon the amount of actual cash receipts that may
reasonably be expected by the district during such fiscal year,
estimated from the experience of the district in prior years
and with due regard for other circumstances that may
substantially affect such receipts. Nothing in this Section
shall be construed as requiring any district to change or
preventing any district from changing from a cash basis of
financing to a surplus or deficit basis of financing; or as
requiring any district to change or preventing any district
from changing its system of accounting. For the 2015-2016
school year and thereafter, the budget shall conform to the
school level accounting requirements adopted by the State Board
of Education pursuant to Section 2-3.28 of this Code.
To the extent that a school district's budget is not
balanced, the district shall also adopt and file with the State

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Board of Education a deficit reduction plan to balance the
district's budget within 3 years. The deficit reduction plan
must be filed at the same time as the budget, but the State
Superintendent of Education may extend this deadline if the
situation warrants.
If, as the result of an audit performed in compliance with
Section 3-7 of this Code, the resulting Annual Financial Report
required to be submitted pursuant to Section 3-15.1 of this
Code reflects a deficit as defined for purposes of the
preceding paragraph, then the district shall, within 30 days
after acceptance of such audit report, submit a deficit
reduction plan.
The board of education of each district shall fix a fiscal
year therefor. If the beginning of the fiscal year of a
district is subsequent to the time that the tax levy due to be
made in such fiscal year shall be made, then such annual budget
shall be adopted prior to the time such tax levy shall be made.
The failure by a board of education of any district to adopt an
annual budget, or to comply in any respect with the provisions
of this Section, shall not affect the validity of any tax levy
of the district otherwise in conformity with the law. With
respect to taxes levied either before, on, or after the
effective date of this amendatory Act of the 91st General
Assembly, (i) a tax levy is made for the fiscal year in which
the levy is due to be made regardless of which fiscal year the
proceeds of the levy are expended or are intended to be

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expended, and (ii) except as otherwise provided by law, a board
of education's adoption of an annual budget in conformity with
this Section is not a prerequisite to the adoption of a valid
tax levy and is not a limit on the amount of the levy.
Such budget shall be prepared in tentative form by some
person or persons designated by the board, and in such
tentative form shall be made conveniently available to public
inspection for at least 30 days prior to final action thereon.
At least 1 public hearing shall be held as to such budget prior
to final action thereon. Notice of availability for public
inspection and of such public hearing shall be given by
publication in a newspaper published in such district, at least
30 days prior to the time of such hearing. If there is no
newspaper published in such district, notice of such public
hearing shall be given by posting notices thereof in 5 of the
most public places in such district. It shall be the duty of
the secretary of such board to make such tentative budget
available to public inspection, and to arrange for such public
hearing. The board may from time to time make transfers between
the various items in any fund not exceeding in the aggregate
10% of the total of such fund as set forth in the budget. The
board may from time to time amend such budget by the same
procedure as is herein provided for its original adoption.
Beginning July 1, 1976, the board of education, or regional
superintendent, or governing board responsible for the
administration of a joint agreement shall, by September 1 of

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each fiscal year thereafter, adopt an annual budget for the
joint agreement in the same manner and subject to the same
requirements as are provided in this Section.
The State Board of Education shall exercise powers and
duties relating to budgets as provided in Section 2-3.27 of
this Code and shall require school districts to submit their
annual budgets, deficit reduction plans, and other financial
information, including revenue and expenditure reports and
borrowing and interfund transfer plans, in such form and within
the timelines designated by the State Board of Education.
By fiscal year 1982 all school districts shall use the
Program Budget Accounting System.
In the case of a school district receiving emergency State
financial assistance under Article 1B, the school board shall
also be subject to the requirements established under Article
1B with respect to the annual budget.
(Source: P.A. 97-429, eff. 8-16-11.)
(105 ILCS 5/17-1.2)
Sec. 17-1.2. Post annual budget on web site. If a school
district has an Internet web site, the school district shall
post its current annual budget, itemized by receipts and
expenditures, on the district's Internet web site. For the
2015-2016 school year and thereafter, the budget shall include
school level information conforming to the rules adopted by the
State Board of Education pursuant to Section 2-3.28 of this

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Code. The school district shall notify the parents or guardians
of its students that the budget has been posted on the
district's web site and what the web site's address is.
(Source: P.A. 92-438, eff. 1-1-02.)
(105 ILCS 5/17-1.5)
Sec. 17-1.5. Limitation of administrative costs.
(a) It is the purpose of this Section to establish
limitations on the growth of administrative expenditures in
order to maximize the proportion of school district resources
available for the instructional program, building maintenance,
and safety services for the students of each district.
(b) Definitions. For the purposes of this Section:
"Administrative expenditures" mean the annual expenditures
of school districts properly attributable to expenditure
functions defined by the rules of the State Board of Education
as: 2320 (Executive Administration Services); 2330 (Special
Area Administration Services); 2490 (Other Support Services -
School Administration); 2510 (Direction of Business Support
Services); 2570 (Internal Services); and 2610 (Direction of
Central Support Services); provided, however, that
"administrative expenditures" shall not include early
retirement or other pension system obligations required by
State law.
"School district" means all school districts having a
population of less than 500,000.

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(c) For the 1998-99 school year and each school year
thereafter, each school district shall undertake budgetary and
expenditure control actions so that the increase in
administrative expenditures for that school year over the prior
school year does not exceed 5%. School districts with
administrative expenditures per pupil in the 25th percentile
and below for all districts of the same type, as defined by the
State Board of Education, may waive the limitation imposed
under this Section for any year following a public hearing and
with the affirmative vote of at least two-thirds of the members
of the school board of the district. Any district waiving the
limitation shall notify the State Board within 45 days of such
action.
(d) School districts shall file with the State Board of
Education by November 15, 1998 and by each November 15th
thereafter a one-page report that lists (i) the actual
administrative expenditures for the prior year from the
district's audited Annual Financial Report, and (ii) the
projected administrative expenditures for the current year
from the budget adopted by the school board pursuant to Section
17-1 of this Code.
If a school district that is ineligible to waive the
limitation imposed by subsection (c) of this Section by board
action exceeds the limitation solely because of circumstances
beyond the control of the district and the district has
exhausted all available and reasonable remedies to comply with

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the limitation, the district may request a waiver pursuant to
Section 2-3.25g. The waiver application shall specify the
amount, nature, and reason for the relief requested, as well as
all remedies the district has exhausted to comply with the
limitation. Any emergency relief so requested shall apply only
to the specific school year for which the request is made. The
State Board of Education shall analyze all such waivers
submitted and shall recommend that the General Assembly
disapprove any such waiver requested that is not due solely to
circumstances beyond the control of the district and for which
the district has not exhausted all available and reasonable
remedies to comply with the limitation. The State
Superintendent shall have no authority to impose any sanctions
pursuant to this Section for any expenditures for which a
waiver has been requested until such waiver has been reviewed
by the General Assembly.
If the report and information required under this
subsection (d) are not provided by the school district in a
timely manner, or are subsequently determined by the State
Superintendent of Education to be incomplete or inaccurate, the
State Superintendent shall notify the district in writing of
reporting deficiencies. The school district shall, within 60
days of the notice, address the reporting deficiencies
identified.
(e) If the State Superintendent determines that a school
district has failed to comply with the administrative

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expenditure limitation imposed in subsection (c) of this
Section, the State Superintendent shall notify the district of
the violation and direct the district to undertake corrective
action to bring the district's budget into compliance with the
administrative expenditure limitation. The district shall,
within 60 days of the notice, provide adequate assurance to the
State Superintendent that appropriate corrective actions have
been or will be taken. If the district fails to provide
adequate assurance or fails to undertake the necessary
corrective actions, the State Superintendent may impose
progressive sanctions against the district that may culminate
in withholding all subsequent payments of general State aid due
the district under Section 18-8.05 of this Code or primary
State aid due the district under Section 18-8.15 of this Code
until the assurance is provided or the corrective actions
taken.
(f) The State Superintendent shall publish a list each year
of the school districts that violate the limitation imposed by
subsection (c) of this Section and a list of the districts that
waive the limitation by board action as provided in subsection
(c) of this Section.
(Source: P.A. 90-548, eff. 1-1-98; 90-653, eff. 7-29-98.)
(105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)
Sec. 17-2.11. School board power to levy a tax or to borrow
money and issue bonds for fire prevention, safety, energy

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conservation, disabled accessibility, school security, and
specified repair purposes.
(a) Whenever, as a result of any lawful order of any
agency, other than a school board, having authority to enforce
any school building code applicable to any facility that houses
students, or any law or regulation for the protection and
safety of the environment, pursuant to the Environmental
Protection Act, any school district having a population of less
than 500,000 inhabitants is required to alter or reconstruct
any school building or permanent, fixed equipment; the district
may, by proper resolution, levy a tax for the purpose of making
such alteration or reconstruction, based on a survey report by
an architect or engineer licensed in this State, upon all of
the taxable property of the district at the value as assessed
by the Department of Revenue and at a rate not to exceed 0.05%
per year for a period sufficient to finance such alteration or
reconstruction, upon the following conditions:
(1) When there are not sufficient funds available in
the operations and maintenance fund of the school district,
the school facility occupation tax fund of the district, or
the fire prevention and safety fund of the district, as
determined by the district on the basis of rules adopted by
the State Board of Education, to make such alteration or
reconstruction or to purchase and install such permanent,
fixed equipment so ordered or determined as necessary.
Appropriate school district records must be made available

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to the State Superintendent of Education, upon request, to
confirm this insufficiency.
(2) When a certified estimate of an architect or
engineer licensed in this State stating the estimated
amount necessary to make the alteration or reconstruction
or to purchase and install the equipment so ordered has
been secured by the school district, and the estimate has
been approved by the regional superintendent of schools
having jurisdiction over the district and the State
Superintendent of Education. Approval must not be granted
for any work that has already started without the prior
express authorization of the State Superintendent of
Education. If the estimate is not approved or is denied
approval by the regional superintendent of schools within 3
months after the date on which it is submitted to him or
her, the school board of the district may submit the
estimate directly to the State Superintendent of Education
for approval or denial.
In the case of an emergency situation, where the estimated
cost to effectuate emergency repairs is less than the amount
specified in Section 10-20.21 of this Code, the school district
may proceed with such repairs prior to approval by the State
Superintendent of Education, but shall comply with the
provisions of subdivision (2) of this subsection (a) as soon
thereafter as may be as well as Section 10-20.21 of this Code.
If the estimated cost to effectuate emergency repairs is

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greater than the amount specified in Section 10-20.21 of this
Code, then the school district shall proceed in conformity with
Section 10-20.21 of this Code and with rules established by the
State Board of Education to address such situations. The rules
adopted by the State Board of Education to deal with these
situations shall stipulate that emergency situations must be
expedited and given priority consideration. For purposes of
this paragraph, an emergency is a situation that presents an
imminent and continuing threat to the health and safety of
students or other occupants of a facility, requires complete or
partial evacuation of a building or part of a building, or
consumes one or more of the 5 emergency days built into the
adopted calendar of the school or schools or would otherwise be
expected to cause such school or schools to fall short of the
minimum school calendar requirements.
(b) Whenever any such district determines that it is
necessary for energy conservation purposes that any school
building or permanent, fixed equipment should be altered or
reconstructed and that such alterations or reconstruction will
be made with funds not necessary for the completion of approved
and recommended projects contained in any safety survey report
or amendments thereto authorized by Section 2-3.12 of this Act;
the district may levy a tax or issue bonds as provided in
subsection (a) of this Section.
(c) Whenever any such district determines that it is
necessary for disabled accessibility purposes and to comply

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with the school building code that any school building or
equipment should be altered or reconstructed and that such
alterations or reconstruction will be made with funds not
necessary for the completion of approved and recommended
projects contained in any safety survey report or amendments
thereto authorized under Section 2-3.12 of this Act, the
district may levy a tax or issue bonds as provided in
subsection (a) of this Section.
(d) Whenever any such district determines that it is
necessary for school security purposes and the related
protection and safety of pupils and school personnel that any
school building or property should be altered or reconstructed
or that security systems and equipment (including but not
limited to intercom, early detection and warning, access
control and television monitoring systems) should be purchased
and installed, and that such alterations, reconstruction or
purchase and installation of equipment will be made with funds
not necessary for the completion of approved and recommended
projects contained in any safety survey report or amendment
thereto authorized by Section 2-3.12 of this Act and will deter
and prevent unauthorized entry or activities upon school
property by unknown or dangerous persons, assure early
detection and advance warning of any such actual or attempted
unauthorized entry or activities and help assure the continued
safety of pupils and school staff if any such unauthorized
entry or activity is attempted or occurs; the district may levy

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a tax or issue bonds as provided in subsection (a) of this
Section.
(e) If a school district does not need funds for other fire
prevention and safety projects, including the completion of
approved and recommended projects contained in any safety
survey report or amendments thereto authorized by Section
2-3.12 of this Act, and it is determined after a public hearing
(which is preceded by at least one published notice (i)
occurring at least 7 days prior to the hearing in a newspaper
of general circulation within the school district and (ii)
setting forth the time, date, place, and general subject matter
of the hearing) that there is a substantial, immediate, and
otherwise unavoidable threat to the health, safety, or welfare
of pupils due to disrepair of school sidewalks, playgrounds,
parking lots, or school bus turnarounds and repairs must be
made; then the district may levy a tax or issue bonds as
provided in subsection (a) of this Section.
(f) For purposes of this Section a school district may
replace a school building or build additions to replace
portions of a building when it is determined that the
effectuation of the recommendations for the existing building
will cost more than the replacement costs. Such determination
shall be based on a comparison of estimated costs made by an
architect or engineer licensed in the State of Illinois. The
new building or addition shall be equivalent in area (square
feet) and comparable in purpose and grades served and may be on

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the same site or another site. Such replacement may only be
done upon order of the regional superintendent of schools and
the approval of the State Superintendent of Education.
(g) The filing of a certified copy of the resolution
levying the tax when accompanied by the certificates of the
regional superintendent of schools and State Superintendent of
Education shall be the authority of the county clerk to extend
such tax.
(h) The county clerk of the county in which any school
district levying a tax under the authority of this Section is
located, in reducing raised levies, shall not consider any such
tax as a part of the general levy for school purposes and shall
not include the same in the limitation of any other tax rate
which may be extended.
Such tax shall be levied and collected in like manner as
all other taxes of school districts, subject to the provisions
contained in this Section.
(i) The tax rate limit specified in this Section may be
increased to .10% upon the approval of a proposition to effect
such increase by a majority of the electors voting on that
proposition at a regular scheduled election. Such proposition
may be initiated by resolution of the school board and shall be
certified by the secretary to the proper election authorities
for submission in accordance with the general election law.
(j) When taxes are levied by any school district for fire
prevention, safety, energy conservation, and school security

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purposes as specified in this Section, and the purposes for
which the taxes have been levied are accomplished and paid in
full, and there remain funds on hand in the Fire Prevention and
Safety Fund from the proceeds of the taxes levied, including
interest earnings thereon, the school board by resolution shall
use such excess and other board restricted funds, excluding
bond proceeds and earnings from such proceeds, as follows:
(1) for other authorized fire prevention, safety,
energy conservation, and school security purposes; or
(2) for transfer to the Operations and Maintenance Fund
for the purpose of abating an equal amount of operations
and maintenance purposes taxes.
Notwithstanding subdivision (2) of this subsection (j) and
subsection (k) of this Section, through June 30, 2017 2016, the
school board may, by proper resolution following a public
hearing set by the school board or the president of the school
board (that is preceded (i) by at least one published notice
over the name of the clerk or secretary of the board, occurring
at least 7 days and not more than 30 days prior to the hearing,
in a newspaper of general circulation within the school
district and (ii) by posted notice over the name of the clerk
or secretary of the board, at least 48 hours before the
hearing, at the principal office of the school board or at the
building where the hearing is to be held if a principal office
does not exist, with both notices setting forth the time, date,
place, and subject matter of the hearing), transfer surplus

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life safety taxes and interest earnings thereon to the
Operations and Maintenance Fund for building repair work.
(k) If any transfer is made to the Operation and
Maintenance Fund, the secretary of the school board shall
within 30 days notify the county clerk of the amount of that
transfer and direct the clerk to abate the taxes to be extended
for the purposes of operations and maintenance authorized under
Section 17-2 of this Act by an amount equal to such transfer.
(l) If the proceeds from the tax levy authorized by this
Section are insufficient to complete the work approved under
this Section, the school board is authorized to sell bonds
without referendum under the provisions of this Section in an
amount that, when added to the proceeds of the tax levy
authorized by this Section, will allow completion of the
approved work.
(m) Any bonds issued pursuant to this Section shall bear
interest at a rate not to exceed the maximum rate authorized by
law at the time of the making of the contract, shall mature
within 20 years from date, and shall be signed by the president
of the school board and the treasurer of the school district.
(n) In order to authorize and issue such bonds, the school
board shall adopt a resolution fixing the amount of bonds, the
date thereof, the maturities thereof, rates of interest
thereof, place of payment and denomination, which shall be in
denominations of not less than $100 and not more than $5,000,
and provide for the levy and collection of a direct annual tax

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upon all the taxable property in the school district sufficient
to pay the principal and interest on such bonds to maturity.
Upon the filing in the office of the county clerk of the county
in which the school district is located of a certified copy of
the resolution, it is the duty of the county clerk to extend
the tax therefor in addition to and in excess of all other
taxes heretofore or hereafter authorized to be levied by such
school district.
(o) After the time such bonds are issued as provided for by
this Section, if additional alterations or reconstructions are
required to be made because of surveys conducted by an
architect or engineer licensed in the State of Illinois, the
district may levy a tax at a rate not to exceed .05% per year
upon all the taxable property of the district or issue
additional bonds, whichever action shall be the most feasible.
(p) This Section is cumulative and constitutes complete
authority for the issuance of bonds as provided in this Section
notwithstanding any other statute or law to the contrary.
(q) With respect to instruments for the payment of money
issued under this Section either before, on, or after the
effective date of Public Act 86-004 (June 6, 1989), it is, and
always has been, the intention of the General Assembly (i) that
the Omnibus Bond Acts are, and always have been, supplementary
grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that
may appear to be or to have been more restrictive than those

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Acts, (ii) that the provisions of this Section are not a
limitation on the supplementary authority granted by the
Omnibus Bond Acts, and (iii) that instruments issued under this
Section within the supplementary authority granted by the
Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive
than those Acts.
(r) When the purposes for which the bonds are issued have
been accomplished and paid for in full and there remain funds
on hand from the proceeds of the bond sale and interest
earnings therefrom, the board shall, by resolution, use such
excess funds in accordance with the provisions of Section
10-22.14 of this Act.
(s) Whenever any tax is levied or bonds issued for fire
prevention, safety, energy conservation, and school security
purposes, such proceeds shall be deposited and accounted for
separately within the Fire Prevention and Safety Fund.
(Source: P.A. 98-26, eff. 6-21-13.)
(105 ILCS 5/17-2A) (from Ch. 122, par. 17-2A)
Sec. 17-2A. Interfund Transfers.
(a) The school board of any district having a population of
less than 500,000 inhabitants may, by proper resolution
following a public hearing set by the school board or the
president of the school board (that is preceded (i) by at least
one published notice over the name of the clerk or secretary of

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the board, occurring at least 7 days and not more than 30 days
prior to the hearing, in a newspaper of general circulation
within the school district and (ii) by posted notice over the
name of the clerk or secretary of the board, at least 48 hours
before the hearing, at the principal office of the school board
or at the building where the hearing is to be held if a
principal office does not exist, with both notices setting
forth the time, date, place, and subject matter of the
hearing), transfer money from (1) the Educational Fund to the
Operations and Maintenance Fund or the Transportation Fund, (2)
the Operations and Maintenance Fund to the Educational Fund or
the Transportation Fund, or (3) the Transportation Fund to the
Educational Fund or the Operations and Maintenance Fund of said
district, provided that, except during the period from July 1,
2003 through June 30, 2017 2016, such transfer is made solely
for the purpose of meeting one-time, non-recurring expenses.
Except during the period from July 1, 2003 through June 30,
2017 2016 and except as otherwise provided in subsection (b) of
this Section, any other permanent interfund transfers
authorized by any provision or judicial interpretation of this
Code for which the transferee fund is not precisely and
specifically set forth in the provision of this Code
authorizing such transfer shall be made to the fund of the
school district most in need of the funds being transferred, as
determined by resolution of the school board.
(b) Notwithstanding subsection (a) of this Section or any

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other provision of this Code to the contrary, the school board
of any school district (i) that is subject to the Property Tax
Extension Limitation Law, (ii) that has a population of less
than 500,000 inhabitants, (iii) that is levying at its maximum
tax rate, (iv) whose total equalized assessed valuation has
declined 20% in the prior 2 years, (v) in which 80% or more of
its students receive free or reduced-price lunch, and (vi) that
had an equalized assessed valuation of less than $207 million
but more than $203 million in the 2011 levy year may annually,
until July 1, 2016, transfer money from any fund of the
district, other than the Illinois Municipal Retirement Fund and
the Bonds and Interest Fund, to the educational fund, the
operations and maintenance fund, or the transportation fund of
the district by proper resolution following a public hearing
set by the school board or the president of the school board,
with notice as provided in subsection (a) of this Section, so
long as the district meets the qualifications set forth in this
subsection (b) on the effective date of this amendatory Act of
the 98th General Assembly even if the district does not meet
those qualifications at the time a given transfer is made.
(Source: P.A. 98-26, eff. 6-21-13; 98-131, eff. 1-1-14.)
(105 ILCS 5/18-4.3) (from Ch. 122, par. 18-4.3)
Sec. 18-4.3. Summer school grants. Through fiscal year
2014, grants Grants shall be determined for pupil attendance in
summer schools conducted under Sections 10-22.33A and 34-18 and

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approved under Section 2-3.25 in the following manner.
The amount of grant for each accredited summer school
attendance pupil shall be obtained by dividing the total amount
of apportionments determined under Section 18-8.05 by the
actual number of pupils in average daily attendance used for
such apportionments. The number of credited summer school
attendance pupils shall be determined (a) by counting clock
hours of class instruction by pupils enrolled in grades 1
through 12 in approved courses conducted at least 60 clock
hours in summer sessions; (b) by dividing such total of clock
hours of class instruction by 4 to produce days of credited
pupil attendance; (c) by dividing such days of credited pupil
attendance by the actual number of days in the regular term as
used in computation in the general apportionment in Section
18-8.05; and (d) by multiplying by 1.25.
The amount of the grant for a summer school program
approved by the State Superintendent of Education for children
with disabilities, as defined in Sections 14-1.02 through
14-1.07, shall be determined in the manner contained above
except that average daily membership shall be utilized in lieu
of average daily attendance.
In the case of an apportionment based on summer school
attendance or membership pupils, the claim therefor shall be
presented as a separate claim for the particular school year in
which such summer school session ends. On or before November 1
of each year the superintendent of each eligible school

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district shall certify to the State Superintendent of Education
the claim of the district for the summer session just ended.
Failure on the part of the school board to so certify shall
constitute a forfeiture of its right to such payment. The State
Superintendent of Education shall transmit to the Comptroller
no later than December 15th of each year vouchers for payment
of amounts due school districts for summer school. The State
Superintendent of Education shall direct the Comptroller to
draw his warrants for payments thereof by the 30th day of
December. If the money appropriated by the General Assembly for
such purpose for any year is insufficient, it shall be
apportioned on the basis of claims approved.
However, notwithstanding the foregoing provisions, for
each fiscal year the money appropriated by the General Assembly
for the purposes of this Section shall only be used for grants
for approved summer school programs for those children with
disabilities served pursuant to Section 14-7.02 or 14-7.02b of
this Code.
No funding shall be provided to school districts under this
Section after fiscal year 2014.
(Source: P.A. 93-1022, eff. 8-24-04.)
(105 ILCS 5/18-8.05)
Sec. 18-8.05. Basis for apportionment of general State
financial aid and supplemental general State aid to the common
schools for the 1998-1999 through the 2013-2014 and subsequent

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school years.
(A) General Provisions.
(1) The provisions of this Section relating to the
calculation and apportionment of general State financial aid
and supplemental general State aid apply to the 1998-1999
through the 2013-2014 and subsequent school years. The system
of general State financial aid provided for in this Section is
designed to assure that, through a combination of State
financial aid and required local resources, the financial
support provided each pupil in Average Daily Attendance equals
or exceeds a prescribed per pupil Foundation Level. This
formula approach imputes a level of per pupil Available Local
Resources and provides for the basis to calculate a per pupil
level of general State financial aid that, when added to
Available Local Resources, equals or exceeds the Foundation
Level. The amount of per pupil general State financial aid for
school districts, in general, varies in inverse relation to
Available Local Resources. Per pupil amounts are based upon
each school district's Average Daily Attendance as that term is
defined in this Section.
(2) In addition to general State financial aid, school
districts with specified levels or concentrations of pupils
from low income households are eligible to receive supplemental
general State financial aid grants as provided pursuant to
subsection (H). The supplemental State aid grants provided for

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school districts under subsection (H) shall be appropriated for
distribution to school districts as part of the same line item
in which the general State financial aid of school districts is
appropriated under this Section.
(3) To receive financial assistance under this Section,
school districts are required to file claims with the State
Board of Education, subject to the following requirements:
(a) Any school district which fails for any given
school year to maintain school as required by law, or to
maintain a recognized school is not eligible to file for
such school year any claim upon the Common School Fund. In
case of nonrecognition of one or more attendance centers in
a school district otherwise operating recognized schools,
the claim of the district shall be reduced in the
proportion which the Average Daily Attendance in the
attendance center or centers bear to the Average Daily
Attendance in the school district. A "recognized school"
means any public school which meets the standards as
established for recognition by the State Board of
Education. A school district or attendance center not
having recognition status at the end of a school term is
entitled to receive State aid payments due upon a legal
claim which was filed while it was recognized.
(b) School district claims filed under this Section are
subject to Sections 18-9 and 18-12, except as otherwise
provided in this Section.

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(c) If a school district operates a full year school
under Section 10-19.1, the general State aid to the school
district shall be determined by the State Board of
Education in accordance with this Section as near as may be
applicable.
(d) (Blank).
(4) Except as provided in subsections (H) and (L), the
board of any district receiving any of the grants provided for
in this Section may apply those funds to any fund so received
for which that board is authorized to make expenditures by law.
School districts are not required to exert a minimum
Operating Tax Rate in order to qualify for assistance under
this Section.
(5) As used in this Section the following terms, when
capitalized, shall have the meaning ascribed herein:
(a) "Average Daily Attendance": A count of pupil
attendance in school, averaged as provided for in
subsection (C) and utilized in deriving per pupil financial
support levels.
(b) "Available Local Resources": A computation of
local financial support, calculated on the basis of Average
Daily Attendance and derived as provided pursuant to
subsection (D).
(c) "Corporate Personal Property Replacement Taxes":
Funds paid to local school districts pursuant to "An Act in
relation to the abolition of ad valorem personal property

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tax and the replacement of revenues lost thereby, and
amending and repealing certain Acts and parts of Acts in
connection therewith", certified August 14, 1979, as
amended (Public Act 81-1st S.S.-1).
(d) "Foundation Level": A prescribed level of per pupil
financial support as provided for in subsection (B).
(e) "Operating Tax Rate": All school district property
taxes extended for all purposes, except Bond and Interest,
Summer School, Rent, Capital Improvement, and Vocational
Education Building purposes.
(B) Foundation Level.
(1) The Foundation Level is a figure established by the
State representing the minimum level of per pupil financial
support that should be available to provide for the basic
education of each pupil in Average Daily Attendance. As set
forth in this Section, each school district is assumed to exert
a sufficient local taxing effort such that, in combination with
the aggregate of general State financial aid provided the
district, an aggregate of State and local resources are
available to meet the basic education needs of pupils in the
district.
(2) For the 1998-1999 school year, the Foundation Level of
support is $4,225. For the 1999-2000 school year, the
Foundation Level of support is $4,325. For the 2000-2001 school
year, the Foundation Level of support is $4,425. For the

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2001-2002 school year and 2002-2003 school year, the Foundation
Level of support is $4,560. For the 2003-2004 school year, the
Foundation Level of support is $4,810. For the 2004-2005 school
year, the Foundation Level of support is $4,964. For the
2005-2006 school year, the Foundation Level of support is
$5,164. For the 2006-2007 school year, the Foundation Level of
support is $5,334. For the 2007-2008 school year, the
Foundation Level of support is $5,734. For the 2008-2009 school
year, the Foundation Level of support is $5,959.
(3) For the 2009-2010 school year and each school year
thereafter, the Foundation Level of support is $6,119 or such
greater amount as may be established by law by the General
Assembly.
(C) Average Daily Attendance.
(1) For purposes of calculating general State aid pursuant
to subsection (E), an Average Daily Attendance figure shall be
utilized. The Average Daily Attendance figure for formula
calculation purposes shall be the monthly average of the actual
number of pupils in attendance of each school district, as
further averaged for the best 3 months of pupil attendance for
each school district. In compiling the figures for the number
of pupils in attendance, school districts and the State Board
of Education shall, for purposes of general State aid funding,
conform attendance figures to the requirements of subsection
(F).

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(2) The Average Daily Attendance figures utilized in
subsection (E) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated or the average of the
attendance data for the 3 preceding school years, whichever is
greater. The Average Daily Attendance figures utilized in
subsection (H) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated.
(D) Available Local Resources.
(1) For purposes of calculating general State aid pursuant
to subsection (E), a representation of Available Local
Resources per pupil, as that term is defined and determined in
this subsection, shall be utilized. Available Local Resources
per pupil shall include a calculated dollar amount representing
local school district revenues from local property taxes and
from Corporate Personal Property Replacement Taxes, expressed
on the basis of pupils in Average Daily Attendance. Calculation
of Available Local Resources shall exclude any tax amnesty
funds received as a result of Public Act 93-26.
(2) In determining a school district's revenue from local
property taxes, the State Board of Education shall utilize the
equalized assessed valuation of all taxable property of each
school district as of September 30 of the previous year. The
equalized assessed valuation utilized shall be obtained and

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determined as provided in subsection (G).
(3) For school districts maintaining grades kindergarten
through 12, local property tax revenues per pupil shall be
calculated as the product of the applicable equalized assessed
valuation for the district multiplied by 3.00%, and divided by
the district's Average Daily Attendance figure. For school
districts maintaining grades kindergarten through 8, local
property tax revenues per pupil shall be calculated as the
product of the applicable equalized assessed valuation for the
district multiplied by 2.30%, and divided by the district's
Average Daily Attendance figure. For school districts
maintaining grades 9 through 12, local property tax revenues
per pupil shall be the applicable equalized assessed valuation
of the district multiplied by 1.05%, and divided by the
district's Average Daily Attendance figure.
For partial elementary unit districts created pursuant to
Article 11E of this Code, local property tax revenues per pupil
shall be calculated as the product of the equalized assessed
valuation for property within the partial elementary unit
district for elementary purposes, as defined in Article 11E of
this Code, multiplied by 2.06% and divided by the district's
Average Daily Attendance figure, plus the product of the
equalized assessed valuation for property within the partial
elementary unit district for high school purposes, as defined
in Article 11E of this Code, multiplied by 0.94% and divided by
the district's Average Daily Attendance figure.

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(4) The Corporate Personal Property Replacement Taxes paid
to each school district during the calendar year one year
before the calendar year in which a school year begins, divided
by the Average Daily Attendance figure for that district, shall
be added to the local property tax revenues per pupil as
derived by the application of the immediately preceding
paragraph (3). The sum of these per pupil figures for each
school district shall constitute Available Local Resources as
that term is utilized in subsection (E) in the calculation of
general State aid.
(E) Computation of General State Aid.
(1) For each school year, the amount of general State aid
allotted to a school district shall be computed by the State
Board of Education as provided in this subsection.
(2) For any school district for which Available Local
Resources per pupil is less than the product of 0.93 times the
Foundation Level, general State aid for that district shall be
calculated as an amount equal to the Foundation Level minus
Available Local Resources, multiplied by the Average Daily
Attendance of the school district.
(3) For any school district for which Available Local
Resources per pupil is equal to or greater than the product of
0.93 times the Foundation Level and less than the product of
1.75 times the Foundation Level, the general State aid per
pupil shall be a decimal proportion of the Foundation Level

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derived using a linear algorithm. Under this linear algorithm,
the calculated general State aid per pupil shall decline in
direct linear fashion from 0.07 times the Foundation Level for
a school district with Available Local Resources equal to the
product of 0.93 times the Foundation Level, to 0.05 times the
Foundation Level for a school district with Available Local
Resources equal to the product of 1.75 times the Foundation
Level. The allocation of general State aid for school districts
subject to this paragraph 3 shall be the calculated general
State aid per pupil figure multiplied by the Average Daily
Attendance of the school district.
(4) For any school district for which Available Local
Resources per pupil equals or exceeds the product of 1.75 times
the Foundation Level, the general State aid for the school
district shall be calculated as the product of $218 multiplied
by the Average Daily Attendance of the school district.
(5) The amount of general State aid allocated to a school
district for the 1999-2000 school year meeting the requirements
set forth in paragraph (4) of subsection (G) shall be increased
by an amount equal to the general State aid that would have
been received by the district for the 1998-1999 school year by
utilizing the Extension Limitation Equalized Assessed
Valuation as calculated in paragraph (4) of subsection (G) less
the general State aid allotted for the 1998-1999 school year.
This amount shall be deemed a one time increase, and shall not
affect any future general State aid allocations.

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(F) Compilation of Average Daily Attendance.
(1) Each school district shall, by July 1 of each year,
submit to the State Board of Education, on forms prescribed by
the State Board of Education, attendance figures for the school
year that began in the preceding calendar year. The attendance
information so transmitted shall identify the average daily
attendance figures for each month of the school year. Beginning
with the general State aid claim form for the 2002-2003 school
year, districts shall calculate Average Daily Attendance as
provided in subdivisions (a), (b), and (c) of this paragraph
(1).
(a) In districts that do not hold year-round classes,
days of attendance in August shall be added to the month of
September and any days of attendance in June shall be added
to the month of May.
(b) In districts in which all buildings hold year-round
classes, days of attendance in July and August shall be
added to the month of September and any days of attendance
in June shall be added to the month of May.
(c) In districts in which some buildings, but not all,
hold year-round classes, for the non-year-round buildings,
days of attendance in August shall be added to the month of
September and any days of attendance in June shall be added
to the month of May. The average daily attendance for the
year-round buildings shall be computed as provided in

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subdivision (b) of this paragraph (1). To calculate the
Average Daily Attendance for the district, the average
daily attendance for the year-round buildings shall be
multiplied by the days in session for the non-year-round
buildings for each month and added to the monthly
attendance of the non-year-round buildings.
Except as otherwise provided in this Section, days of
attendance by pupils shall be counted only for sessions of not
less than 5 clock hours of school work per day under direct
supervision of: (i) teachers, or (ii) non-teaching personnel or
volunteer personnel when engaging in non-teaching duties and
supervising in those instances specified in subsection (a) of
Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
of legal school age and in kindergarten and grades 1 through
12.
Days of attendance by tuition pupils shall be accredited
only to the districts that pay the tuition to a recognized
school.
(2) Days of attendance by pupils of less than 5 clock hours
of school shall be subject to the following provisions in the
compilation of Average Daily Attendance.
(a) Pupils regularly enrolled in a public school for
only a part of the school day may be counted on the basis
of 1/6 day for every class hour of instruction of 40
minutes or more attended pursuant to such enrollment,
unless a pupil is enrolled in a block-schedule format of 80

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minutes or more of instruction, in which case the pupil may
be counted on the basis of the proportion of minutes of
school work completed each day to the minimum number of
minutes that school work is required to be held that day.
(b) (Blank).
(c) A session of 4 or more clock hours may be counted
as a day of attendance upon certification by the regional
superintendent, and approved by the State Superintendent
of Education to the extent that the district has been
forced to use daily multiple sessions.
(d) A session of 3 or more clock hours may be counted
as a day of attendance (1) when the remainder of the school
day or at least 2 hours in the evening of that day is
utilized for an in-service training program for teachers,
up to a maximum of 5 days per school year, provided a
district conducts an in-service training program for
teachers in accordance with Section 10-22.39 of this Code;
or, in lieu of 4 such days, 2 full days may be used, in
which event each such day may be counted as a day required
for a legal school calendar pursuant to Section 10-19 of
this Code; (1.5) when, of the 5 days allowed under item
(1), a maximum of 4 days are used for parent-teacher
conferences, or, in lieu of 4 such days, 2 full days are
used, in which case each such day may be counted as a
calendar day required under Section 10-19 of this Code,
provided that the full-day, parent-teacher conference

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consists of (i) a minimum of 5 clock hours of
parent-teacher conferences, (ii) both a minimum of 2 clock
hours of parent-teacher conferences held in the evening
following a full day of student attendance, as specified in
subsection (F)(1)(c), and a minimum of 3 clock hours of
parent-teacher conferences held on the day immediately
following evening parent-teacher conferences, or (iii)
multiple parent-teacher conferences held in the evenings
following full days of student attendance, as specified in
subsection (F)(1)(c), in which the time used for the
parent-teacher conferences is equivalent to a minimum of 5
clock hours; and (2) when days in addition to those
provided in items (1) and (1.5) are scheduled by a school
pursuant to its school improvement plan adopted under
Article 34 or its revised or amended school improvement
plan adopted under Article 2, provided that (i) such
sessions of 3 or more clock hours are scheduled to occur at
regular intervals, (ii) the remainder of the school days in
which such sessions occur are utilized for in-service
training programs or other staff development activities
for teachers, and (iii) a sufficient number of minutes of
school work under the direct supervision of teachers are
added to the school days between such regularly scheduled
sessions to accumulate not less than the number of minutes
by which such sessions of 3 or more clock hours fall short
of 5 clock hours. Any full days used for the purposes of

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this paragraph shall not be considered for computing
average daily attendance. Days scheduled for in-service
training programs, staff development activities, or
parent-teacher conferences may be scheduled separately for
different grade levels and different attendance centers of
the district.
(e) A session of not less than one clock hour of
teaching hospitalized or homebound pupils on-site or by
telephone to the classroom may be counted as 1/2 day of
attendance, however these pupils must receive 4 or more
clock hours of instruction to be counted for a full day of
attendance.
(f) A session of at least 4 clock hours may be counted
as a day of attendance for first grade pupils, and pupils
in full day kindergartens, and a session of 2 or more hours
may be counted as 1/2 day of attendance by pupils in
kindergartens which provide only 1/2 day of attendance.
(g) For children with disabilities who are below the
age of 6 years and who cannot attend 2 or more clock hours
because of their disability or immaturity, a session of not
less than one clock hour may be counted as 1/2 day of
attendance; however for such children whose educational
needs so require a session of 4 or more clock hours may be
counted as a full day of attendance.
(h) A recognized kindergarten which provides for only
1/2 day of attendance by each pupil shall not have more

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than 1/2 day of attendance counted in any one day. However,
kindergartens may count 2 1/2 days of attendance in any 5
consecutive school days. When a pupil attends such a
kindergarten for 2 half days on any one school day, the
pupil shall have the following day as a day absent from
school, unless the school district obtains permission in
writing from the State Superintendent of Education.
Attendance at kindergartens which provide for a full day of
attendance by each pupil shall be counted the same as
attendance by first grade pupils. Only the first year of
attendance in one kindergarten shall be counted, except in
case of children who entered the kindergarten in their
fifth year whose educational development requires a second
year of kindergarten as determined under the rules and
regulations of the State Board of Education.
(i) On the days when the Prairie State Achievement
Examination is administered under subsection (c) of
Section 2-3.64 of this Code, the day of attendance for a
pupil whose school day must be shortened to accommodate
required testing procedures may be less than 5 clock hours
and shall be counted towards the 176 days of actual pupil
attendance required under Section 10-19 of this Code,
provided that a sufficient number of minutes of school work
in excess of 5 clock hours are first completed on other
school days to compensate for the loss of school work on
the examination days.

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(j) Pupils enrolled in a remote educational program
established under Section 10-29 of this Code may be counted
on the basis of one-fifth day of attendance for every clock
hour of instruction attended in the remote educational
program, provided that, in any month, the school district
may not claim for a student enrolled in a remote
educational program more days of attendance than the
maximum number of days of attendance the district can claim
(i) for students enrolled in a building holding year-round
classes if the student is classified as participating in
the remote educational program on a year-round schedule or
(ii) for students enrolled in a building not holding
year-round classes if the student is not classified as
participating in the remote educational program on a
year-round schedule.
(G) Equalized Assessed Valuation Data.
(1) For purposes of the calculation of Available Local
Resources required pursuant to subsection (D), the State Board
of Education shall secure from the Department of Revenue the
value as equalized or assessed by the Department of Revenue of
all taxable property of every school district, together with
(i) the applicable tax rate used in extending taxes for the
funds of the district as of September 30 of the previous year
and (ii) the limiting rate for all school districts subject to
property tax extension limitations as imposed under the

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Property Tax Extension Limitation Law.
The Department of Revenue shall add to the equalized
assessed value of all taxable property of each school district
situated entirely or partially within a county that is or was
subject to the provisions of Section 15-176 or 15-177 of the
Property Tax Code (a) an amount equal to the total amount by
which the homestead exemption allowed under Section 15-176 or
15-177 of the Property Tax Code for real property situated in
that school district exceeds the total amount that would have
been allowed in that school district if the maximum reduction
under Section 15-176 was (i) $4,500 in Cook County or $3,500 in
all other counties in tax year 2003 or (ii) $5,000 in all
counties in tax year 2004 and thereafter and (b) an amount
equal to the aggregate amount for the taxable year of all
additional exemptions under Section 15-175 of the Property Tax
Code for owners with a household income of $30,000 or less. The
county clerk of any county that is or was subject to the
provisions of Section 15-176 or 15-177 of the Property Tax Code
shall annually calculate and certify to the Department of
Revenue for each school district all homestead exemption
amounts under Section 15-176 or 15-177 of the Property Tax Code
and all amounts of additional exemptions under Section 15-175
of the Property Tax Code for owners with a household income of
$30,000 or less. It is the intent of this paragraph that if the
general homestead exemption for a parcel of property is
determined under Section 15-176 or 15-177 of the Property Tax

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Code rather than Section 15-175, then the calculation of
Available Local Resources shall not be affected by the
difference, if any, between the amount of the general homestead
exemption allowed for that parcel of property under Section
15-176 or 15-177 of the Property Tax Code and the amount that
would have been allowed had the general homestead exemption for
that parcel of property been determined under Section 15-175 of
the Property Tax Code. It is further the intent of this
paragraph that if additional exemptions are allowed under
Section 15-175 of the Property Tax Code for owners with a
household income of less than $30,000, then the calculation of
Available Local Resources shall not be affected by the
difference, if any, because of those additional exemptions.
This equalized assessed valuation, as adjusted further by
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
(2) The equalized assessed valuation in paragraph (1) shall
be adjusted, as applicable, in the following manner:
(a) For the purposes of calculating State aid under
this Section, with respect to any part of a school district
within a redevelopment project area in respect to which a
municipality has adopted tax increment allocation
financing pursuant to the Tax Increment Allocation
Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
of the Illinois Municipal Code or the Industrial Jobs
Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the

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Illinois Municipal Code, no part of the current equalized
assessed valuation of real property located in any such
project area which is attributable to an increase above the
total initial equalized assessed valuation of such
property shall be used as part of the equalized assessed
valuation of the district, until such time as all
redevelopment project costs have been paid, as provided in
Section 11-74.4-8 of the Tax Increment Allocation
Redevelopment Act or in Section 11-74.6-35 of the
Industrial Jobs Recovery Law. For the purpose of the
equalized assessed valuation of the district, the total
initial equalized assessed valuation or the current
equalized assessed valuation, whichever is lower, shall be
used until such time as all redevelopment project costs
have been paid.
(b) The real property equalized assessed valuation for
a school district shall be adjusted by subtracting from the
real property value as equalized or assessed by the
Department of Revenue for the district an amount computed
by dividing the amount of any abatement of taxes under
Section 18-170 of the Property Tax Code by 3.00% for a
district maintaining grades kindergarten through 12, by
2.30% for a district maintaining grades kindergarten
through 8, or by 1.05% for a district maintaining grades 9
through 12 and adjusted by an amount computed by dividing
the amount of any abatement of taxes under subsection (a)

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of Section 18-165 of the Property Tax Code by the same
percentage rates for district type as specified in this
subparagraph (b).
(3) For the 1999-2000 school year and each school year
thereafter, if a school district meets all of the criteria of
this subsection (G)(3), the school district's Available Local
Resources shall be calculated under subsection (D) using the
district's Extension Limitation Equalized Assessed Valuation
as calculated under this subsection (G)(3).
For purposes of this subsection (G)(3) the following terms
shall have the following meanings:
"Budget Year": The school year for which general State
aid is calculated and awarded under subsection (E).
"Base Tax Year": The property tax levy year used to
calculate the Budget Year allocation of general State aid.
"Preceding Tax Year": The property tax levy year
immediately preceding the Base Tax Year.
"Base Tax Year's Tax Extension": The product of the
equalized assessed valuation utilized by the County Clerk
in the Base Tax Year multiplied by the limiting rate as
calculated by the County Clerk and defined in the Property
Tax Extension Limitation Law.
"Preceding Tax Year's Tax Extension": The product of
the equalized assessed valuation utilized by the County
Clerk in the Preceding Tax Year multiplied by the Operating
Tax Rate as defined in subsection (A).

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"Extension Limitation Ratio": A numerical ratio,
certified by the County Clerk, in which the numerator is
the Base Tax Year's Tax Extension and the denominator is
the Preceding Tax Year's Tax Extension.
"Operating Tax Rate": The operating tax rate as defined
in subsection (A).
If a school district is subject to property tax extension
limitations as imposed under the Property Tax Extension
Limitation Law, the State Board of Education shall calculate
the Extension Limitation Equalized Assessed Valuation of that
district. For the 1999-2000 school year, the Extension
Limitation Equalized Assessed Valuation of a school district as
calculated by the State Board of Education shall be equal to
the product of the district's 1996 Equalized Assessed Valuation
and the district's Extension Limitation Ratio. Except as
otherwise provided in this paragraph for a school district that
has approved or does approve an increase in its limiting rate,
for the 2000-2001 school year and each school year thereafter,
the Extension Limitation Equalized Assessed Valuation of a
school district as calculated by the State Board of Education
shall be equal to the product of the Equalized Assessed
Valuation last used in the calculation of general State aid and
the district's Extension Limitation Ratio. If the Extension
Limitation Equalized Assessed Valuation of a school district as
calculated under this subsection (G)(3) is less than the
district's equalized assessed valuation as calculated pursuant

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to subsections (G)(1) and (G)(2), then for purposes of
calculating the district's general State aid for the Budget
Year pursuant to subsection (E), that Extension Limitation
Equalized Assessed Valuation shall be utilized to calculate the
district's Available Local Resources under subsection (D). For
the 2009-2010 school year and each school year thereafter, if a
school district has approved or does approve an increase in its
limiting rate, pursuant to Section 18-190 of the Property Tax
Code, affecting the Base Tax Year, the Extension Limitation
Equalized Assessed Valuation of the school district, as
calculated by the State Board of Education, shall be equal to
the product of the Equalized Assessed Valuation last used in
the calculation of general State aid times an amount equal to
one plus the percentage increase, if any, in the Consumer Price
Index for all Urban Consumers for all items published by the
United States Department of Labor for the 12-month calendar
year preceding the Base Tax Year, plus the Equalized Assessed
Valuation of new property, annexed property, and recovered tax
increment value and minus the Equalized Assessed Valuation of
disconnected property. New property and recovered tax
increment value shall have the meanings set forth in the
Property Tax Extension Limitation Law.
Partial elementary unit districts created in accordance
with Article 11E of this Code shall not be eligible for the
adjustment in this subsection (G)(3) until the fifth year
following the effective date of the reorganization.

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(3.5) For the 2010-2011 school year and each school year
thereafter, if a school district's boundaries span multiple
counties, then the Department of Revenue shall send to the
State Board of Education, for the purpose of calculating
general State aid, the limiting rate and individual rates by
purpose for the county that contains the majority of the school
district's Equalized Assessed Valuation.
(4) For the purposes of calculating general State aid for
the 1999-2000 school year only, if a school district
experienced a triennial reassessment on the equalized assessed
valuation used in calculating its general State financial aid
apportionment for the 1998-1999 school year, the State Board of
Education shall calculate the Extension Limitation Equalized
Assessed Valuation that would have been used to calculate the
district's 1998-1999 general State aid. This amount shall equal
the product of the equalized assessed valuation used to
calculate general State aid for the 1997-1998 school year and
the district's Extension Limitation Ratio. If the Extension
Limitation Equalized Assessed Valuation of the school district
as calculated under this paragraph (4) is less than the
district's equalized assessed valuation utilized in
calculating the district's 1998-1999 general State aid
allocation, then for purposes of calculating the district's
general State aid pursuant to paragraph (5) of subsection (E),
that Extension Limitation Equalized Assessed Valuation shall
be utilized to calculate the district's Available Local

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Resources.
(5) For school districts having a majority of their
equalized assessed valuation in any county except Cook, DuPage,
Kane, Lake, McHenry, or Will, if the amount of general State
aid allocated to the school district for the 1999-2000 school
year under the provisions of subsection (E), (H), and (J) of
this Section is less than the amount of general State aid
allocated to the district for the 1998-1999 school year under
these subsections, then the general State aid of the district
for the 1999-2000 school year only shall be increased by the
difference between these amounts. The total payments made under
this paragraph (5) shall not exceed $14,000,000. Claims shall
be prorated if they exceed $14,000,000.
(H) Supplemental General State Aid.
(1) In addition to the general State aid a school district
is allotted pursuant to subsection (E), qualifying school
districts shall receive a grant, paid in conjunction with a
district's payments of general State aid, for supplemental
general State aid based upon the concentration level of
children from low-income households within the school
district. Supplemental State aid grants provided for school
districts under this subsection shall be appropriated for
distribution to school districts as part of the same line item
in which the general State financial aid of school districts is
appropriated under this Section.

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(1.5) This paragraph (1.5) applies only to those school
years preceding the 2003-2004 school year. For purposes of this
subsection (H), the term "Low-Income Concentration Level"
shall be the low-income eligible pupil count from the most
recently available federal census divided by the Average Daily
Attendance of the school district. If, however, (i) the
percentage decrease from the 2 most recent federal censuses in
the low-income eligible pupil count of a high school district
with fewer than 400 students exceeds by 75% or more the
percentage change in the total low-income eligible pupil count
of contiguous elementary school districts, whose boundaries
are coterminous with the high school district, or (ii) a high
school district within 2 counties and serving 5 elementary
school districts, whose boundaries are coterminous with the
high school district, has a percentage decrease from the 2 most
recent federal censuses in the low-income eligible pupil count
and there is a percentage increase in the total low-income
eligible pupil count of a majority of the elementary school
districts in excess of 50% from the 2 most recent federal
censuses, then the high school district's low-income eligible
pupil count from the earlier federal census shall be the number
used as the low-income eligible pupil count for the high school
district, for purposes of this subsection (H). The changes made
to this paragraph (1) by Public Act 92-28 shall apply to
supplemental general State aid grants for school years
preceding the 2003-2004 school year that are paid in fiscal

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year 1999 or thereafter and to any State aid payments made in
fiscal year 1994 through fiscal year 1998 pursuant to
subsection 1(n) of Section 18-8 of this Code (which was
repealed on July 1, 1998), and any high school district that is
affected by Public Act 92-28 is entitled to a recomputation of
its supplemental general State aid grant or State aid paid in
any of those fiscal years. This recomputation shall not be
affected by any other funding.
(1.10) This paragraph (1.10) applies to the 2003-2004
school year and each school year thereafter through the
2013-2014 school year. For purposes of this subsection (H), the
term "Low-Income Concentration Level" shall, for each fiscal
year, be the low-income eligible pupil count as of July 1 of
the immediately preceding fiscal year (as determined by the
Department of Human Services based on the number of pupils who
are eligible for at least one of the following low income
programs: Medicaid, the Children's Health Insurance Program,
TANF, or Food Stamps, excluding pupils who are eligible for
services provided by the Department of Children and Family
Services, averaged over the 2 immediately preceding fiscal
years for fiscal year 2004 and over the 3 immediately preceding
fiscal years for each fiscal year thereafter) divided by the
Average Daily Attendance of the school district.
(2) Supplemental general State aid pursuant to this
subsection (H) shall be provided as follows for the 1998-1999,
1999-2000, and 2000-2001 school years only:

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(a) For any school district with a Low Income
Concentration Level of at least 20% and less than 35%, the
grant for any school year shall be $800 multiplied by the
low income eligible pupil count.
(b) For any school district with a Low Income
Concentration Level of at least 35% and less than 50%, the
grant for the 1998-1999 school year shall be $1,100
multiplied by the low income eligible pupil count.
(c) For any school district with a Low Income
Concentration Level of at least 50% and less than 60%, the
grant for the 1998-99 school year shall be $1,500
multiplied by the low income eligible pupil count.
(d) For any school district with a Low Income
Concentration Level of 60% or more, the grant for the
1998-99 school year shall be $1,900 multiplied by the low
income eligible pupil count.
(e) For the 1999-2000 school year, the per pupil amount
specified in subparagraphs (b), (c), and (d) immediately
above shall be increased to $1,243, $1,600, and $2,000,
respectively.
(f) For the 2000-2001 school year, the per pupil
amounts specified in subparagraphs (b), (c), and (d)
immediately above shall be $1,273, $1,640, and $2,050,
respectively.
(2.5) Supplemental general State aid pursuant to this
subsection (H) shall be provided as follows for the 2002-2003

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school year:
(a) For any school district with a Low Income
Concentration Level of less than 10%, the grant for each
school year shall be $355 multiplied by the low income
eligible pupil count.
(b) For any school district with a Low Income
Concentration Level of at least 10% and less than 20%, the
grant for each school year shall be $675 multiplied by the
low income eligible pupil count.
(c) For any school district with a Low Income
Concentration Level of at least 20% and less than 35%, the
grant for each school year shall be $1,330 multiplied by
the low income eligible pupil count.
(d) For any school district with a Low Income
Concentration Level of at least 35% and less than 50%, the
grant for each school year shall be $1,362 multiplied by
the low income eligible pupil count.
(e) For any school district with a Low Income
Concentration Level of at least 50% and less than 60%, the
grant for each school year shall be $1,680 multiplied by
the low income eligible pupil count.
(f) For any school district with a Low Income
Concentration Level of 60% or more, the grant for each
school year shall be $2,080 multiplied by the low income
eligible pupil count.
(2.10) Except as otherwise provided, supplemental general

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State aid pursuant to this subsection (H) shall be provided as
follows for the 2003-2004 school year and each school year
thereafter:
(a) For any school district with a Low Income
Concentration Level of 15% or less, the grant for each
school year shall be $355 multiplied by the low income
eligible pupil count.
(b) For any school district with a Low Income
Concentration Level greater than 15%, the grant for each
school year shall be $294.25 added to the product of $2,700
and the square of the Low Income Concentration Level, all
multiplied by the low income eligible pupil count.
For the 2003-2004 school year and each school year
thereafter through the 2008-2009 school year only, the grant
shall be no less than the grant for the 2002-2003 school year.
For the 2009-2010 school year only, the grant shall be no less
than the grant for the 2002-2003 school year multiplied by
0.66. For the 2010-2011 school year only, the grant shall be no
less than the grant for the 2002-2003 school year multiplied by
0.33. Notwithstanding the provisions of this paragraph to the
contrary, if for any school year supplemental general State aid
grants are prorated as provided in paragraph (1) of this
subsection (H), then the grants under this paragraph shall be
prorated.
For the 2003-2004 school year only, the grant shall be no
greater than the grant received during the 2002-2003 school

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year added to the product of 0.25 multiplied by the difference
between the grant amount calculated under subsection (a) or (b)
of this paragraph (2.10), whichever is applicable, and the
grant received during the 2002-2003 school year. For the
2004-2005 school year only, the grant shall be no greater than
the grant received during the 2002-2003 school year added to
the product of 0.50 multiplied by the difference between the
grant amount calculated under subsection (a) or (b) of this
paragraph (2.10), whichever is applicable, and the grant
received during the 2002-2003 school year. For the 2005-2006
school year only, the grant shall be no greater than the grant
received during the 2002-2003 school year added to the product
of 0.75 multiplied by the difference between the grant amount
calculated under subsection (a) or (b) of this paragraph
(2.10), whichever is applicable, and the grant received during
the 2002-2003 school year.
(3) School districts with an Average Daily Attendance of
more than 1,000 and less than 50,000 that qualify for
supplemental general State aid pursuant to this subsection
shall submit a plan to the State Board of Education prior to
October 30 of each year for the use of the funds resulting from
this grant of supplemental general State aid for the
improvement of instruction in which priority is given to
meeting the education needs of disadvantaged children. Such
plan shall be submitted in accordance with rules and
regulations promulgated by the State Board of Education.

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(4) School districts with an Average Daily Attendance of
50,000 or more that qualify for supplemental general State aid
pursuant to this subsection shall be required to distribute
from funds available pursuant to this Section, no less than
$261,000,000 in accordance with the following requirements:
(a) The required amounts shall be distributed to the
attendance centers within the district in proportion to the
number of pupils enrolled at each attendance center who are
eligible to receive free or reduced-price lunches or
breakfasts under the federal Child Nutrition Act of 1966
and under the National School Lunch Act during the
immediately preceding school year.
(b) The distribution of these portions of supplemental
and general State aid among attendance centers according to
these requirements shall not be compensated for or
contravened by adjustments of the total of other funds
appropriated to any attendance centers, and the Board of
Education shall utilize funding from one or several sources
in order to fully implement this provision annually prior
to the opening of school.
(c) Each attendance center shall be provided by the
school district a distribution of noncategorical funds and
other categorical funds to which an attendance center is
entitled under law in order that the general State aid and
supplemental general State aid provided by application of
this subsection supplements rather than supplants the

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noncategorical funds and other categorical funds provided
by the school district to the attendance centers.
(d) Any funds made available under this subsection that
by reason of the provisions of this subsection are not
required to be allocated and provided to attendance centers
may be used and appropriated by the board of the district
for any lawful school purpose.
(e) Funds received by an attendance center pursuant to
this subsection shall be used by the attendance center at
the discretion of the principal and local school council
for programs to improve educational opportunities at
qualifying schools through the following programs and
services: early childhood education, reduced class size or
improved adult to student classroom ratio, enrichment
programs, remedial assistance, attendance improvement, and
other educationally beneficial expenditures which
supplement the regular and basic programs as determined by
the State Board of Education. Funds provided shall not be
expended for any political or lobbying purposes as defined
by board rule.
(f) Each district subject to the provisions of this
subdivision (H)(4) shall submit an acceptable plan to meet
the educational needs of disadvantaged children, in
compliance with the requirements of this paragraph, to the
State Board of Education prior to July 15 of each year.
This plan shall be consistent with the decisions of local

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school councils concerning the school expenditure plans
developed in accordance with part 4 of Section 34-2.3. The
State Board shall approve or reject the plan within 60 days
after its submission. If the plan is rejected, the district
shall give written notice of intent to modify the plan
within 15 days of the notification of rejection and then
submit a modified plan within 30 days after the date of the
written notice of intent to modify. Districts may amend
approved plans pursuant to rules promulgated by the State
Board of Education.
Upon notification by the State Board of Education that
the district has not submitted a plan prior to July 15 or a
modified plan within the time period specified herein, the
State aid funds affected by that plan or modified plan
shall be withheld by the State Board of Education until a
plan or modified plan is submitted.
If the district fails to distribute State aid to
attendance centers in accordance with an approved plan, the
plan for the following year shall allocate funds, in
addition to the funds otherwise required by this
subsection, to those attendance centers which were
underfunded during the previous year in amounts equal to
such underfunding.
For purposes of determining compliance with this
subsection in relation to the requirements of attendance
center funding, each district subject to the provisions of

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this subsection shall submit as a separate document by
December 1 of each year a report of expenditure data for
the prior year in addition to any modification of its
current plan. If it is determined that there has been a
failure to comply with the expenditure provisions of this
subsection regarding contravention or supplanting, the
State Superintendent of Education shall, within 60 days of
receipt of the report, notify the district and any affected
local school council. The district shall within 45 days of
receipt of that notification inform the State
Superintendent of Education of the remedial or corrective
action to be taken, whether by amendment of the current
plan, if feasible, or by adjustment in the plan for the
following year. Failure to provide the expenditure report
or the notification of remedial or corrective action in a
timely manner shall result in a withholding of the affected
funds.
The State Board of Education shall promulgate rules and
regulations to implement the provisions of this
subsection. No funds shall be released under this
subdivision (H)(4) to any district that has not submitted a
plan that has been approved by the State Board of
Education.
(I) (Blank).

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(J) (Blank).
(K) Grants to Laboratory and Alternative Schools.
In calculating the amount to be paid to the governing board
of a public university that operates a laboratory school under
this Section or to any alternative school that is operated by a
regional superintendent of schools, the State Board of
Education shall require by rule such reporting requirements as
it deems necessary.
As used in this Section, "laboratory school" means a public
school which is created and operated by a public university and
approved by the State Board of Education. The governing board
of a public university which receives funds from the State
Board under this subsection (K) or subsection (i) of Section
18-8.15 of this Code may not increase the number of students
enrolled in its laboratory school from a single district, if
that district is already sending 50 or more students, except
under a mutual agreement between the school board of a
student's district of residence and the university which
operates the laboratory school. A laboratory school may not
have more than 1,000 students, excluding students with
disabilities in a special education program.
As used in this Section, "alternative school" means a
public school which is created and operated by a Regional
Superintendent of Schools and approved by the State Board of
Education. Such alternative schools may offer courses of

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instruction for which credit is given in regular school
programs, courses to prepare students for the high school
equivalency testing program or vocational and occupational
training. A regional superintendent of schools may contract
with a school district or a public community college district
to operate an alternative school. An alternative school serving
more than one educational service region may be established by
the regional superintendents of schools of the affected
educational service regions. An alternative school serving
more than one educational service region may be operated under
such terms as the regional superintendents of schools of those
educational service regions may agree.
Each laboratory and alternative school shall file, on forms
provided by the State Superintendent of Education, an annual
State aid claim which states the Average Daily Attendance of
the school's students by month. The best 3 months' Average
Daily Attendance shall be computed for each school. The general
State aid entitlement shall be computed by multiplying the
applicable Average Daily Attendance by the Foundation Level as
determined under this Section.
(L) Payments, Additional Grants in Aid and Other Requirements.
(1) For a school district operating under the financial
supervision of an Authority created under Article 34A, the
general State aid otherwise payable to that district under this
Section, but not the supplemental general State aid, shall be

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reduced by an amount equal to the budget for the operations of
the Authority as certified by the Authority to the State Board
of Education, and an amount equal to such reduction shall be
paid to the Authority created for such district for its
operating expenses in the manner provided in Section 18-11. The
remainder of general State school aid for any such district
shall be paid in accordance with Article 34A when that Article
provides for a disposition other than that provided by this
Article.
(2) (Blank).
(3) Summer school. Summer school payments shall be made as
provided in Section 18-4.3.
(M) Education Funding Advisory Board.
The Education Funding Advisory Board, hereinafter in this
subsection (M) referred to as the "Board", is hereby created.
The Board shall consist of 5 members who are appointed by the
Governor, by and with the advice and consent of the Senate. The
members appointed shall include representatives of education,
business, and the general public. One of the members so
appointed shall be designated by the Governor at the time the
appointment is made as the chairperson of the Board. The
initial members of the Board may be appointed any time after
the effective date of this amendatory Act of 1997. The regular
term of each member of the Board shall be for 4 years from the
third Monday of January of the year in which the term of the

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member's appointment is to commence, except that of the 5
initial members appointed to serve on the Board, the member who
is appointed as the chairperson shall serve for a term that
commences on the date of his or her appointment and expires on
the third Monday of January, 2002, and the remaining 4 members,
by lots drawn at the first meeting of the Board that is held
after all 5 members are appointed, shall determine 2 of their
number to serve for terms that commence on the date of their
respective appointments and expire on the third Monday of
January, 2001, and 2 of their number to serve for terms that
commence on the date of their respective appointments and
expire on the third Monday of January, 2000. All members
appointed to serve on the Board shall serve until their
respective successors are appointed and confirmed. Vacancies
shall be filled in the same manner as original appointments. If
a vacancy in membership occurs at a time when the Senate is not
in session, the Governor shall make a temporary appointment
until the next meeting of the Senate, when he or she shall
appoint, by and with the advice and consent of the Senate, a
person to fill that membership for the unexpired term. If the
Senate is not in session when the initial appointments are
made, those appointments shall be made as in the case of
vacancies.
The Education Funding Advisory Board shall be deemed
established, and the initial members appointed by the Governor
to serve as members of the Board shall take office, on the date

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that the Governor makes his or her appointment of the fifth
initial member of the Board, whether those initial members are
then serving pursuant to appointment and confirmation or
pursuant to temporary appointments that are made by the
Governor as in the case of vacancies.
The State Board of Education shall provide such staff
assistance to the Education Funding Advisory Board as is
reasonably required for the proper performance by the Board of
its responsibilities.
For school years after the 2000-2001 school year through
the 2013-2014 school year, the Education Funding Advisory
Board, in consultation with the State Board of Education, shall
make recommendations as provided in this subsection (M) to the
General Assembly for the foundation level under subdivision
(B)(3) of this Section and for the supplemental general State
aid grant level under subsection (H) of this Section for
districts with high concentrations of children from poverty.
The recommended foundation level shall be determined based on a
methodology which incorporates the basic education
expenditures of low-spending schools exhibiting high academic
performance. The Education Funding Advisory Board shall make
such recommendations to the General Assembly on January 1 of
odd numbered years, beginning January 1, 2001. After the
2013-2014 school year, the Education Funding Advisory Board
shall make recommendations pursuant to subsection (k) of
Section 18-8.15 of this Code.

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(N) (Blank).
(O) References.
(1) References in other laws to the various subdivisions of
Section 18-8 as that Section existed before its repeal and
replacement by this Section 18-8.05 shall be deemed to refer to
the corresponding provisions of this Section 18-8.05, to the
extent that those references remain applicable.
(2) References in other laws to State Chapter 1 funds shall
be deemed to refer to the supplemental general State aid
provided under subsection (H) of this Section.
(P) Public Act 93-838 and Public Act 93-808 make inconsistent
changes to this Section. Under Section 6 of the Statute on
Statutes there is an irreconcilable conflict between Public Act
93-808 and Public Act 93-838. Public Act 93-838, being the last
acted upon, is controlling. The text of Public Act 93-838 is
the law regardless of the text of Public Act 93-808.
(Source: P.A. 96-45, eff. 7-15-09; 96-152, eff. 8-7-09; 96-300,
eff. 8-11-09; 96-328, eff. 8-11-09; 96-640, eff. 8-24-09;
96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1480, eff.
11-18-10; 97-339, eff. 8-12-11; 97-351, eff. 8-12-11; 97-742,
eff. 6-30-13; 97-813, eff. 7-13-12.)
(105 ILCS 5/18-8.10)

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Sec. 18-8.10. Fast growth grants.
(a) If there has been an increase in a school district's
student population over the most recent 2 school years of (i)
over 1.5% in a district with over 10,000 pupils in average
daily attendance (as defined in Section 18-8.05 or 18-8.15 of
this Code) or (ii) over 7.5% in any other district, then the
district is eligible for a grant under this Section, subject to
appropriation.
(b) The State Board of Education shall determine a per
pupil grant amount for each school district. The total grant
amount for a district for any given school year shall equal the
per pupil grant amount multiplied by the difference between the
number of pupils in average daily attendance for the 2 most
recent school years.
(c) Funds for grants under this Section must be
appropriated to the State Board of Education in a separate line
item for this purpose. If the amount appropriated in any fiscal
year is insufficient to pay all grants for a school year, then
the amount appropriated shall be prorated among eligible
districts. As soon as possible after funds have been
appropriated to the State Board of Education, the State Board
of Education shall distribute the grants to eligible districts.
(d) If a school district intentionally reports incorrect
average daily attendance numbers to receive a grant under this
Section, then the district shall be denied State aid in the
same manner as State aid is denied for intentional incorrect

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reporting of average daily attendance numbers under Section
18-8.05 or 18-8.15 of this Code.
(Source: P.A. 93-1042, eff. 10-8-04.)
(105 ILCS 5/18-8.15 new)
Sec. 18-8.15. Basis for apportionment of primary State
financial aid to the common schools for the 2014-2015 and
subsequent school years.
(a) General provisions.
(1) The provisions of this Section apply to the 2014-2015
and subsequent school years. The system of primary State
financial aid provided for in this Section is designed to
ensure that, through a combination of State financial aid and
required local resources, the financial support provided each
pupil in attendance equals or exceeds a prescribed per pupil
Foundation Level, with adjustments to the Foundation Level
based on each school district's pupil characteristics. This
formula approach imputes a level of per pupil Available Local
Resources and provides for the basis to calculate a per pupil
level of primary State financial aid that, when added to
Available Local Resources, equals or exceeds the Foundation
Level. The amount of per pupil primary State financial aid for
school districts, in general, varies in inverse relation to
Available Local Resources.
(2) To address increases and decreases in State funding
resulting from this amendatory Act of the 98th General

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Assembly, the amount of primary State aid provided to a school
district shall be subject to adjustment as provided in
subsection (h) of this Section. Any supplemental grants
provided for school districts under subsection (h) of this
Section shall be appropriated for distribution to school
districts as part of the same line item in which the primary
State financial aid of school districts is appropriated under
this Section.
(3) To receive financial assistance under this Section,
school districts are required to file claims with the State
Board of Education, subject to the following requirements:
(A) Any school district that fails, for any given
school year, to maintain school as required by law or to
maintain a recognized school is not eligible to receive
financial assistance under this Section. In case of
non-recognition of one or more attendance centers in a
school district otherwise operating recognized schools,
the claim of the district shall be reduced in the
proportion that the enrollment in the attendance center or
centers bears to the enrollment in the school district. A
"recognized school" means any public school that meets the
standards established for recognition by the State Board of
Education. A school district or attendance center not
having recognition status at the end of a school term is
entitled to receive State aid payments due upon a legal
claim that was filed while it was recognized.

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(B) School district claims filed under this Section are
subject to Sections 18-9 and 18-12 of this Code, except as
otherwise provided in this Section.
(C) If a school district operates a full-year school
under Section 10-19.1 of this Code, the primary State aid
to the school district shall be determined by the State
Board of Education in accordance with this Section as near
as may be applicable.
(4) Subject to the requirements of subsection (j) of this
Section, the school board of any district receiving any of the
grants provided for in this Section may apply those funds to
any fund so received for which that school board is authorized
to make expenditures by law.
(5) As used in this Section, the following terms, when
capitalized, shall have the meanings ascribed in this paragraph
(5):
"Additional Weight" means a number added to 1.0 to
calculate the District Weighted Average in accordance with
subsection (b) of this Section. Each Additional Weight is
calculated using the Weighting Factors and Weighting
Percentages in paragraph (5) of subsection (b) of this Section.
"Adjusted Flat Grant Level" means, for each school district
not subject to property tax extension limitations as imposed
under the Property Tax Extension Limitation Law, the Flat Grant
Level multiplied by the percentage, if any, of which the school
district's combined tax rate for educational and operations and

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maintenance purposes is of the maximum combined tax rates for
educational and operations and maintenance purposes specified
for that type of school district under Section 17-2 of this
Code. For a school district subject to property tax extension
limitations as imposed under the Property Tax Extension
Limitation Law or a school district whose combined tax rate for
educational and operations and maintenance purposes is at least
the maximum combined tax rates for educational and operations
and maintenance purposes specified for that type of school
district under Section 17-2 of this Code, the Adjusted Flat
Grant Level is equal to the Flat Grant Level.
"Advanced Standing Pupil" means a pupil in grades 9 through
12, other than a pupil counted as a Career Pathway Completer,
that has completed (i) one or more Advanced Placement courses
and received a score of 3 or higher on an Advanced Placement
examination or (ii) a course providing dual credit through an
Illinois public community college or university in which the
student was awarded at least 3 credit hours of postsecondary
education credit.
"Alternative School" means a public school that is created
and operated by a regional superintendent of schools and
approved by the State Board of Education.
"Available Local Resources Per Pupil" means a computation
of local financial support, calculated on the basis of Average
Daily Attendance and derived as provided pursuant to subsection
(d) of this Section.

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"Average Daily Attendance" or "ADA" means the count of
pupils in attendance derived as provided pursuant to subsection
(c) of this Section.
"Base Tax Year" means the property tax levy year used to
calculate the Budget Year allocation of primary State aid.
"Base Tax Year's Extension" means the product of the
equalized assessed valuation utilized by the county clerk in
the Base Tax Year multiplied by the limiting rate as calculated
by the county clerk and defined in the Property Tax Extension
Limitation Law.
"Budget Year" means the school year for which primary State
aid is calculated and awarded under subsection (e) of this
Section.
"Career Pathway Completer" means a pupil that has graduated
from high school and completed a series of connected education
and training strategies and support services meeting the
requirements of this definition and other requirements
established by the State Board of Education that enable
individuals to secure industry-relevant credentials and
degrees and obtain employment within an occupational area and
to advance to higher levels of future education and employment
in that area. Career pathway programs must incorporate (i)
rigorous academics that prepare students for success in
community colleges and universities, as well as in
apprenticeship and other postsecondary programs; (ii)
career-based learning through a cluster of 3 or more courses

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emphasizing the practical application of academic learning and
preparing students for employment in high skill occupational
areas; (iii) professional learning, via job shadowing,
apprenticeships, internships, or other professional
skill-building opportunities; (iv) support services that
include academic and career counseling; and (v) opportunities
for attainment of stackable, industry-relevant credentials and
degrees.
"Corporate Personal Property Replacement Taxes" means
funds paid to school districts pursuant to "An Act in relation
to the abolition of ad valorem personal property tax and the
replacement of revenues lost thereby, and amending and
repealing certain Acts and parts of Acts in connection
therewith", certified August 14, 1979, as amended (Public Act
81-1st S.S.-1).
"District Weighted Average" means a figure used to derive a
school district's Per-pupil Aid level, calculated pursuant to
subsection (b) of this Section.
"Extension Limitation Equalized Assessed Valuation" means
a figure calculated by the State Board of Education pursuant to
paragraph (3) of subsection (h) of this Section for school
districts subject to property tax extension limitations as
imposed under the Property Tax Extension Limitation Law.
"Extension Limitation Ratio" means a numerical ratio in
which the numerator is the Base Tax Year's Extension and the
denominator is the Preceding Tax Year's Tax Extension.

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"Flat Grant Level" means a dollar amount equal to 3.5% of
the Foundation Level.
"Foundation Level" means a prescribed level of per pupil
financial support, as provided for in subsection (b) of this
Section.
"Gifted Pupil" means a pupil in kindergarten through grade
8 receiving services through a program for gifted and talented
children that has been approved by a school board and that is
described on a school district's Internet website.
"Hold Harmless State Funding" means the amount of State
funds allotted to a school district during the 2013-2014 school
year pursuant to the following Sections of this Code, as
calculated by the State Board of Education: Sections 18-8.05;
14-7.02b; 14-7.03, but only with respect to reimbursement for
children from foster family homes; 14-13.01, except for
reimbursement of the cost of transportation pursuant to that
Section; 14C-12; 18-4.3; and 29-5. For a school district
organized under Article 34 of this Code, "Hold Harmless State
Funding" also includes the funds allotted to the school
district pursuant to Section 1D-1 of this Code attributable to
funding programs authorized by the Sections of this Code listed
in this definition.
"Laboratory School" means a public school that is created
and operated by a public university and approved by the State
Board of Education.
"Low-income Pupil" means a pupil from a household with a

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household income level at or below 185% of the poverty
guidelines updated periodically in the Federal Register by the
U.S. Department of Health and Human Services under the
authority of 42 U.S.C. 9902(2).
"Normal Pension Costs" means the present value of pension
plan benefits and expenses allocated to a valuation year by an
actuarial cost method for the Public School Teachers' Pension
and Retirement Fund of Chicago.
"Operating Tax Rate" means all school district property
taxes extended for all purposes, except bond and interest,
summer school, rent, capital improvement, and vocational
education building purposes.
"Per-pupil Aid" means a school district's Weighted
Foundation Level less its Available Local Resources Per Pupil.
"Per-pupil Hold Harmless State Funding" means a school
district's Hold Harmless State Funding, divided by the school
district's Average Daily Attendance figure as calculated
pursuant to subsection (F) of Section 18-8.05 of this Code
during the 2013-2014 school year.
"Preceding Tax Year" means the property tax levy year
immediately preceding the Base Tax Year.
"Preceding Tax Year's Tax Extension" means the product of
the equalized assessed valuation utilized by the county clerk
in the Preceding Tax Year multiplied by the Operating Tax Rate.
"Prior Year ADA" means the number of pupils within the
count of pupils in attendance used for Average Daily Attendance

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calculations for the school year immediately preceding the
school year for which primary State aid is calculated and
awarded under subsection (e) of this Section.
"PTELL PSA Adjustment" means the amount of primary State
aid a school district would receive under subsection (e) of
this Section if the Extension Limitation Equalized Assessed
Valuation was used for calculating the school district's
primary State aid for the Budget Year instead of the district's
equalized assessed valuation as calculated pursuant to
paragraphs (1) and (2) of subsection (g) of this Section.
"Pupil of Limited English-speaking Ability" means a child
of limited English-speaking ability, as defined in Section
14C-2 of this Code, participating in a program of transitional
bilingual education or a transitional program of instruction
meeting the requirements of Article 14C of this Code.
"Regular Transportation Eligible Pupil" means a pupil,
other than a Vocational Transportation Pupil, meeting the
fiscal year 2014 eligibility requirements for reimbursement of
transportation costs under Section 29-5 of this Code.
"Special Education Summer School Pupil" means a child with
disabilities participating in a summer school program meeting
the fiscal year 2014 eligibility requirements for a summer
school grant under Section 18-4.3 of this Code.
"Total Primary State Aid" means the amount of primary State
aid allotted to a school district pursuant to subsection (e) of
this Section and any supplemental grants allotted pursuant to

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paragraphs (2) and (3) of subsection (h) of this Section.
"Vocational Transportation Pupil" means a pupil
transported to an area vocational school or another school
district's vocational program meeting the fiscal year 2014
eligibility requirements for reimbursement of transportation
costs under Section 29-5 of this Code.
"Weighted Foundation Level" means the Foundation Level
multiplied by the District Weighted Average.
"Weighted Foundation Level Budget" means, for a particular
school district, the Weighted Foundation Level multiplied by
the ADA.
"Weighting Factor" means, for each Additional Weight
classification in paragraph (5) of subsection (b) of this
Section, the amount multiplied by the Weighting Percentage to
calculate the Additional Weight figure.
"Weighting Percentage" means, for each Additional Weight
classification in paragraph (5) of subsection (b) of this
Section, the amount multiplied by the Weighting Factor to
calculate the Additional Weight figure.
(b) Foundation Level; weighting for district pupil
characteristics.
(1) The Foundation Level is a figure established by this
State representing the minimum level of per pupil financial
support that should be available to provide for the basic
education of each pupil in Average Daily Attendance in a public
school in this State. Then, for each school district, the

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Foundation Level is weighted in accordance with the Additional
Weights set forth in paragraph (5) of this subsection (b) to
account for the pupil characteristics within that school
district. As set forth in this Section, each school district is
assumed to exert a sufficient local taxing effort such that, in
combination with the aggregate of primary State financial aid
provided the district, an aggregate of State and local
resources are available to meet the basic education needs of
pupils in the district.
(2) Subject to paragraph (3) of this subsection (b), for
the 2014-2015 school year and each school year thereafter, the
Foundation Level of support is $6,119 or such greater amount as
may be established by law by the General Assembly.
(3) If the appropriation in any fiscal year for primary
State aid, including supplemental grants pursuant to
subsection (h) of this Section, is insufficient to pay the
amounts required under the calculations set forth in this
Section, then the State Board of Education shall adjust the
Foundation Level to an amount so that the appropriation is
sufficient to pay all primary State aid and supplemental grants
required by this Section.
(4) For each school district, the Foundation Level shall be
adjusted by multiplying the Foundation Level by a District
Weighted Average figure, resulting in the school district's
Weighted Foundation Level. The District Weighted Average
figure for a particular school district shall be a number equal

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to 1.0 plus each of the Additional Weights described in
paragraph (5) of this subsection (b) applicable to that
district. For each Additional Weight, the figure included in
the District Weighted Average is the product of the Weighting
Factor multiplied by the Weighting Percentage, as both are
specified in paragraph (5) of this subsection (b). For each
school district, the State Board of Education shall publicly
report the district's District Weighted Average, Weighted
Foundation Level, Additional Weights, amount of the Weighted
Foundation Level Budget attributable to each Additional
Weight, and amount of primary State aid received attributable
to each Additional Weight.
(5) Additional Weights:
(A) Pupils of Limited English-speaking Ability:
(i) Weighting Factor of 0.20; and
(ii) Weighting Percentage equal to the Prior Year
ADA of Pupils of Limited English-speaking Ability,
divided by the Prior Year ADA for all pupils.
(B) Low-Income Pupils: The higher of the weights
determined through the following 2 methods, provided that
the Additional Weight shall not exceed 0.75:
(i) Regular low-income method:
(I) Weighting Factor of 0.25; and
(II) Weighting Percentage equal to the Prior
Year ADA of Low-income Pupils, divided by the Prior
Year ADA for all pupils.

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(ii) Low-income concentration method:
(I) Weighting Factor of 0.90 multiplied by the
Weighting Percentage for Low-income Pupils as
calculated in accordance with the regular
low-income method; and
(II) Weighting Percentage equal to the
Weighting Percentage for Low-income Pupils as
calculated in accordance with the regular
low-income method.
(C) Children with disabilities:
(i) Weighting Factor of 1.0; and
(ii) Weighting Percentage of 13.8% in the
2014-2015 and 2015-2016 school years and, in
subsequent school years, a Weighting Percentage
periodically established by the State Board of
Education, but not less frequently than once every 5
years, representative of the statewide average
population of students with disabilities in public
education.
(D) Special Education Summer School Pupils:
(i) Weighting Factor of 0.03; and
(ii) Weighting Percentage equal to the Prior Year
ADA of Special Education Summer School Pupils, divided
by the Prior Year ADA for all pupils.
(E) Gifted Pupils:
(i) Weighting Factor of 0.01; and

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(ii) Weighting Percentage equal to the Prior Year
ADA of Gifted Pupils, divided by the Prior Year ADA for
all pupils, provided that the Prior Year ADA of Gifted
Pupils used for such calculation shall not exceed 5% of
the Prior Year ADA for pupils in kindergarten through
grade 8.
(F) Regular Transportation Eligible Pupils:
(i) Weighting Factor of 0.06 for school districts
in the most dense quintile of school districts in this
State; for purposes of this subdivision (F), density
shall be calculated by the State Board of Education
based on the Prior Year ADA for all pupils in the
school district per square mile, with separate
quintile calculations for different school district
organizational types;
(ii) Weighting Factor 0.07 for school districts in
the next to most dense quintile of school districts in
this State;
(iii) Weighting Factor of 0.08 for school
districts in the median density quintile of school
districts in this State;
(iv) Weighting Factor of 0.09 for school districts
in the next to least dense quintile of school districts
in this State;
(v) Weighting Factor of 0.10 for school districts
in the least dense quintile of school districts in this

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State; and
(vi) Weighting Percentage equal to the Prior Year
ADA of Regular Transportation Eligible Pupils, divided
by the Prior Year ADA for all pupils.
(G) Extraordinary Transportation Eligible Pupils.
Notwithstanding the Weighting Factors in subdivision (F)
of this paragraph (5), the State Board of Education shall
establish by administrative rule, for the 2015-2016 school
year and subsequent school years, a Weighting Factor or
Factors, not to exceed 0.12, for school districts with high
transportation costs resulting from school district
reorganizations or consolidations or students who live a
significant distance from their assigned attendance
center. The State Board of Education shall also establish
the Weighting Percentage by administrative rule to account
for the percentage of students receiving such
transportation services.
(H) Vocational Transportation Pupils:
(i) Weighting Factor of 0.12; and
(ii) Weighting Percentage equal to the Prior Year
ADA of Vocational Transportation Pupils, divided by
the Prior Year ADA for all pupils.
(I) In the 2016-2017 school year and subsequent school
years, Advanced Standing Pupils and Career Pathway
Completers:
(i) For Advanced Standing Pupils:

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(I) Weighting Factor of 0.02; and
(II) Weighting Percentage equal to the Prior
Year ADA of Advanced Standing Pupils, divided by
the Prior Year ADA for all pupils.
(ii) For Career Pathway Completers:
(I) Weighting Factor of 0.03; and
(II) Weighting Percentage equal to the Prior
Year ADA of Career Pathway Completers, divided by
the Prior Year ADA for all pupils.
(c) Average Daily Attendance.
(1) For purposes of calculating primary State aid pursuant
to subsection (e) of this Section, an Average Daily Attendance
figure shall be utilized. The Average Daily Attendance figure
for formula calculation purposes shall be the monthly average
of the total number of pupils in attendance for each school
district, as further averaged for the best 3 months of pupil
attendance for each school district. In compiling the figures
for the number of pupils in attendance, school districts and
the State Board of Education shall, for purposes of primary
State aid funding, conform attendance figures to the
requirements of subsection (f) of this Section.
(2) The Average Daily Attendance figures utilized in
subsection (e) of this Section shall be the requisite
attendance data for the school year immediately preceding the
school year for which primary State aid is being calculated or
the average of the attendance data for the 3 preceding school

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years, whichever is greater. The Average Daily Attendance
figures utilized for subsection (b) of this Section shall be
the requisite attendance data for the school year immediately
preceding the school year for which primary State aid is being
calculated.
(d) Available Local Resources Per Pupil.
(1) For purposes of calculating primary State aid pursuant
to subsection (e) of this Section, a representation of
Available Local Resources Per Pupil, as that term is defined
and determined in this subsection (d), shall be utilized.
Available Local Resources Per Pupil shall include a calculated
dollar amount representing school district revenues from local
property taxes and from Corporate Personal Property
Replacement Taxes, expressed on the basis of pupils in Average
Daily Attendance. For a school district organized under Article
34 of this Code, calculation of Available Local Resources shall
exclude any amounts actually paid by the board of education
into a Public School Teachers' Pension and Retirement Fund
created pursuant to Article 17 of the Illinois Pension Code for
Normal Pension Costs during the fiscal year immediately
preceding the fiscal year for which primary State aid is being
calculated.
(2) In determining a school district's revenue from local
property taxes, the State Board of Education shall utilize the
equalized assessed valuation of all taxable property of each
school district as of September 30 of the previous year. The

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equalized assessed valuation utilized shall be obtained and
determined as provided in subsection (g) of this Section.
(3) For school districts maintaining grades kindergarten
through 12, local property tax revenues per pupil shall be
calculated as the product of the applicable equalized assessed
valuation for the district multiplied by 3.07%, and divided by
the district's Average Daily Attendance figure. For school
districts maintaining grades kindergarten through 8, local
property tax revenues per pupil shall be calculated as the
product of the applicable equalized assessed valuation for the
district multiplied by 2.36%, and divided by the district's
Average Daily Attendance figure. For school districts
maintaining grades 9 through 12, local property tax revenues
per pupil shall be the applicable equalized assessed valuation
of the district multiplied by 1.10%, and divided by the
district's Average Daily Attendance figure.
For partial elementary unit districts created pursuant to
Article 11E of this Code, local property tax revenues per pupil
shall be calculated as the product of the equalized assessed
valuation for property within the partial elementary unit
district for elementary purposes, as defined in Article 11E of
this Code, multiplied by 2.10% and divided by the district's
Average Daily Attendance figure, plus the product of the
equalized assessed valuation for property within the partial
elementary unit district for high school purposes, as defined
in Article 11E of this Code, multiplied by 0.97% and divided by

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the district's Average Daily Attendance figure.
(4) The Corporate Personal Property Replacement Taxes paid
to each school district during the calendar year one year
before the calendar year in which a school year begins, divided
by the Average Daily Attendance figure for that district, shall
be added to the local property tax revenues per pupil as
derived by the application of paragraph (3) of this subsection
(d). The sum of these per pupil figures for each school
district shall constitute Available Local Resources Per Pupil
as that term is utilized in subsection (e) of this Section in
the calculation of primary State aid.
(e) Computation of primary State aid.
(1) For each school year, the amount of primary State aid
allotted to a school district shall be computed by the State
Board of Education as provided in this subsection (e).
(2) Subject to paragraph (4) of this subsection (e), for
any school district for which the Per-pupil Aid is more than
the Flat Grant Level, primary State aid for that district shall
be in an amount equal to its Per-pupil Aid multiplied by its
Average Daily Attendance figure.
(3) Subject to paragraph (4) of this subsection (e), for
any school district for which the Per-pupil Aid is equal to or
less than the Flat Grant Level, primary State aid for that
district shall be in an amount equal to the Adjusted Flat Grant
Level multiplied by the district's Average Daily Attendance
figure.

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(4) From financial assistance provided to school districts
under this Section, the State Board of Education shall withhold
the following amounts for the following purposes:
(A) For each school district with an Additional Weight
for Pupils of Limited English-speaking Ability, the State
Board of Education shall withhold an amount not exceeding
one and one-half percent of the district's Weighted
Foundation Level Budget attributable to Pupils of Limited
English-speaking Ability for (i) State Board of Education
staff for administration and (ii) contractual services by a
not-for-profit entity for technical assistance,
professional development, and other support to school
districts and educators for services for these pupils. To
be eligible to receive the contract under clause (ii) of
this subdivision (A), the not-for-profit entity must have
experience providing such services in a school district
having a population exceeding 500,000; one or more school
districts in any of the counties of Lake, McHenry, DuPage,
Kane, and Will; and one or more school districts elsewhere
in this State.
(B) The State Board of Education shall withhold an
amount not exceeding one-half percent of each school
district's Weighted Foundation Level Budget attributable
to children with disabilities and Special Education Summer
School Pupils for State Board of Education staff and
contractual services for administration, professional

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development, and support to school districts for services
for children with disabilities. The State Board of
Education shall use a portion of the withheld amounts for
developing or supporting electronic individualized
educational programs.
(f) Compilation of Average Daily Attendance.
(1) Each school district shall, on or before July 1 of each
year, submit to the State Board of Education, in a manner
prescribed by the State Board of Education, attendance figures
for the school year that began in the preceding calendar year.
The attendance information so transmitted shall identify the
Average Daily Attendance figures for each month of the school
year. School districts shall calculate Average Daily
Attendance as provided in subdivisions (A), (B), and (C) of
this paragraph (1).
(A) In districts that do not hold year-round classes,
days of attendance in August shall be added to the month of
September and any days of attendance in June shall be added
to the month of May.
(B) In districts in which all buildings hold year-round
classes, days of attendance in July and August shall be
added to the month of September and any days of attendance
in June shall be added to the month of May.
(C) In districts in which some buildings, but not all,
hold year-round classes, for the non-year-round buildings,
days of attendance in August shall be added to the month of

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September and any days of attendance in June shall be added
to the month of May. The Average Daily Attendance for the
year-round buildings shall be computed as provided in
subdivision (B) of this paragraph (1). To calculate the
Average Daily Attendance for the district, the Average
Daily Attendance for the year-round buildings shall be
multiplied by the days in session for the non-year-round
buildings for each month and added to the monthly
attendance of the non-year-round buildings.
(2) For the 2014-2015 school year, days of attendance by
pupils shall be counted in accordance with paragraphs (1) and
(2) of subsection (F) of Section 18-8.05 of this Code. For the
2015-2016 and subsequent school years, days of attendance by
pupils shall be counted in accordance with administrative rules
adopted by the State Board of Education that address, without
limitation, days of partial attendance, days utilized for
in-service training and parent-teacher conferences,
partial-day kindergarten, hospitalized or homebound students,
days when assessments are administered, remote educational
programs, virtual learning, work-based learning, dual credit
programs, and competency-based education. Such rules shall be
adopted by the State Board of Education by no later than April
1, 2015.
(g) Equalized assessed valuation data.
(1) For purposes of the calculation of Available Local
Resources Per Pupil required pursuant to subsection (d) of this

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Section, the State Board of Education shall secure from the
Department of Revenue the value as equalized or assessed by the
Department of Revenue of all taxable property of every school
district, together with (i) the applicable tax rate used in
extending taxes for the funds of the district as of September
30 of the previous year and (ii) the limiting rate for all
school districts subject to property tax extension limitations
as imposed under the Property Tax Extension Limitation Law.
The Department of Revenue shall add to the equalized
assessed value of all taxable property of each school district
situated entirely or partially within a county that is or was
subject to the provisions of Section 15-176 or 15-177 of the
Property Tax Code (A) an amount equal to the total amount by
which the homestead exemption allowed under Section 15-176 or
15-177 of the Property Tax Code for real property situated in
that school district exceeds the total amount that would have
been allowed in that school district if the maximum reduction
under Section 15-176 was $5,000 and (B) an amount equal to the
aggregate amount for the taxable year of all additional
exemptions under Section 15-175 of the Property Tax Code for
owners with a household income of $30,000 or less. The county
clerk of any county that is or was subject to the provisions of
Section 15-176 or 15-177 of the Property Tax Code shall
annually calculate and certify to the Department of Revenue for
each school district all homestead exemption amounts under
Section 15-176 or 15-177 of the Property Tax Code and all

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amounts of additional exemptions under Section 15-175 of the
Property Tax Code for owners with a household income of $30,000
or less. It is the intent of this paragraph that if the general
homestead exemption for a parcel of property is determined
under Section 15-176 or 15-177 of the Property Tax Code rather
than Section 15-175, then the calculation of Available Local
Resources Per Pupil shall not be affected by the difference, if
any, between the amount of the general homestead exemption
allowed for that parcel of property under Section 15-176 or
15-177 of the Property Tax Code and the amount that would have
been allowed had the general homestead exemption for that
parcel of property been determined under Section 15-175 of the
Property Tax Code. It is further the intent of this paragraph
that if additional exemptions are allowed under Section 15-175
of the Property Tax Code for owners with a household income of
less than $30,000, then the calculation of Available Local
Resources Per Pupil shall not be affected by the difference, if
any, because of those additional exemptions.
This equalized assessed valuation, as adjusted further by
the requirements of this subsection (g), shall be utilized in
the calculation of Available Local Resources Per Pupil.
(2) The equalized assessed valuation in paragraph (1) of
this subsection (g) shall be adjusted, as applicable, in the
following manner:
(A) For the purposes of calculating primary State aid
under this Section, with respect to any part of a school

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district within a redevelopment project area in respect to
which a municipality has adopted tax increment allocation
financing pursuant to the Tax Increment Allocation
Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
of the Illinois Municipal Code, or the Industrial Jobs
Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
Illinois Municipal Code, no part of the current equalized
assessed valuation of real property located in any such
project area that is attributable to an increase above the
total initial equalized assessed valuation of such
property shall be used as part of the equalized assessed
valuation of the district, until such time as all
redevelopment project costs have been paid, as provided in
Section 11-74.4-8 of the Tax Increment Allocation
Redevelopment Act or in Section 11-74.6-35 of the
Industrial Jobs Recovery Law. For the purpose of the
equalized assessed valuation of the district, the total
initial equalized assessed valuation or the current
equalized assessed valuation, whichever is lower, shall be
used until such time as all redevelopment project costs
have been paid.
(B) The real property equalized assessed valuation for
a school district shall be adjusted by subtracting from the
real property value as equalized or assessed by the
Department of Revenue for the district an amount computed
by dividing the amount of any abatement of taxes under

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Section 18-170 of the Property Tax Code by 3.07% for a
district maintaining grades kindergarten through 12, by
2.36% for a district maintaining grades kindergarten
through 8, or by 1.10% for a district maintaining grades 9
through 12 and adjusted by an amount computed by dividing
the amount of any abatement of taxes under subsection (a)
of Section 18-165 of the Property Tax Code by the same
percentage rates for district type as specified in this
subdivision (B).
(3) If a school district's boundaries span multiple
counties, then the Department of Revenue shall send to the
State Board of Education, for the purpose of calculating
primary State aid, the limiting rate and individual rates by
purpose for the county that contains the majority of the school
district's Equalized Assessed Valuation.
(h) Hold harmless and PTELL adjustments.
(1) The Total Primary State Aid a school district is
allotted pursuant to this Section shall be subject to
adjustment as provided in this subsection (h). Any supplemental
grants allotted to school districts pursuant to this subsection
(h) shall be paid in conjunction with the school district's
payments of primary State aid. Any decreases to primary State
aid pursuant to paragraph (4) of this subsection (h) shall be
applied by the State Board of Education so as to reduce amounts
otherwise payable pursuant to this Section.
(2) Notwithstanding anything to the contrary contained in

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this Section, if, for any school year, a school district's
per-pupil primary State aid allotment is less than its
Per-pupil Hold Harmless State Funding by an amount exceeding
$1,000, then the amount of primary State aid allotted to the
school district shall be increased by a supplemental grant
pursuant to this paragraph (2). The primary State aid
supplemental grant shall equal an amount sufficient to raise
the school district's per-pupil primary State aid allotment to
an amount that is $1,000 less than the school district's
Per-pupil Hold Harmless State Funding. For purposes of this
paragraph (2), a school district's per-pupil primary State aid
allotment shall be calculated by the State Board of Education
as the sum of the primary State aid allotted to the school
district pursuant to subsection (e) of this Section and any
supplemental grants pursuant to this paragraph (2) and
paragraph (3) of this subsection (h), divided by the school
district's Average Daily Attendance figure.
(3) If a school district is subject to property tax
extension limitations as imposed under the Property Tax
Extension Limitation Law, a school district shall receive a
supplemental grant pursuant to this paragraph (3) to account
for the difference between its Extension Limitation Equalized
Assessed Valuation and the school district's equalized
assessed valuation as calculated under paragraphs (1) and (2)
of subsection (g) of this Section. The State Board of Education
shall calculate the Extension Limitation Equalized Assessed

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Valuation of each district subject to property tax extension
limitations as imposed under the Property Tax Extension
Limitation Law. Except as otherwise provided in this paragraph
(3) for a school district that has approved or does approve an
increase in its limiting rate, the "Extension Limitation
Equalized Assessed Valuation" of a school district as
calculated by the State Board of Education shall be equal to
the product of the equalized assessed valuation last used in
the calculation of general State aid under Section 18-8.05 of
this Code or primary State aid under this Section and the
district's Extension Limitation Ratio. If a school district has
approved or does approve an increase in its limiting rate,
pursuant to Section 18-190 of the Property Tax Code, affecting
the Base Tax Year, the Extension Limitation Equalized Assessed
Valuation of the school district, as calculated by the State
Board of Education, shall be equal to the product of the
equalized assessed valuation last used in the calculation of
general State aid pursuant to Section 18-8.05 of this Code or
primary State aid pursuant to this Section times an amount
equal to one plus the percentage increase, if any, in the
Consumer Price Index for all Urban Consumers for all items
published by the United States Department of Labor for the
12-month calendar year preceding the Base Tax Year, plus the
equalized assessed valuation of new property, annexed
property, and recovered tax increment value and minus the
equalized assessed valuation of disconnected property. New

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property and recovered tax increment value shall have the
meanings set forth in the Property Tax Extension Limitation
Law. Notwithstanding anything to the contrary contained in this
paragraph (3), a school district's Extension Limitation
Equalized Assessed Valuation shall not be less than 80% of the
district's equalized assessed valuation as calculated pursuant
to paragraphs (1) and (2) of subsection (g) of this Section.
If the Extension Limitation Equalized Assessed Valuation
of a school district as calculated under this paragraph (3) is
less than the district's equalized assessed valuation as
calculated pursuant to paragraphs (1) and (2) of subsection (g)
of this Section, then the school district shall receive a
supplemental grant equal to its PTELL PSA Adjustment as
calculated by the State Board of Education.
(4) Notwithstanding anything to the contrary contained in
this Section, the Total Primary State Aid allotted to a school
district for the 2014-2015 through the 2016-2017 school years
shall be adjusted as follows:
(A) If, for the 2014-2015 school year, the Total
Primary State Aid is less than Hold Harmless State Funding,
then the amount of primary State aid allotted to the school
district shall be increased by a supplemental grant in the
amount of 75% of the difference between Hold Harmless State
Funding and Total Primary State Aid. If, for the 2015-2016
school year, the Total Primary State Aid remains less than
Hold Harmless State Funding, then the amount of primary

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State aid allotted to the school district shall be
increased by a supplemental grant in the amount of 50% of
the difference between Hold Harmless State Funding and
Total Primary State Aid. If, for the 2016-2017 school year,
the Total Primary State Aid remains less than Hold Harmless
State Funding, then the amount of primary State aid
allotted to the school district shall be increased by a
supplemental grant in the amount of 25% of the difference
between Hold Harmless State Funding and Total Primary State
Aid.
(B) If, for the 2014-2015 school year, the Total
Primary State Aid is more than Hold Harmless State Funding,
then the amount of primary State aid allotted to the school
district shall be decreased by 75% of the difference
between Hold Harmless State Funding and Total Primary State
Aid. If, for the 2015-2016 school year, the Total Primary
State Aid is more than Hold Harmless State Funding, then
the amount of primary State aid allotted to the school
district shall be decreased by 50% of the difference
between Hold Harmless State Funding and Total Primary State
Aid. If, for the 2016-2017 school year, the Total Primary
State Aid is more than Hold Harmless State Funding, then
the amount of primary State aid allotted to the school
district shall be decreased by 25% of the difference
between Hold Harmless State Funding and Total Primary State
Aid.

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(i) Grants to Laboratory and Alternative Schools. In
calculating the amount to be paid to the governing board of a
public university that operates a Laboratory School or to any
Alternative School that is operated by a regional
superintendent of schools, the State Board of Education shall
require, by rule, such reporting requirements as it deems
necessary. Each Laboratory and Alternative School shall file,
on forms provided by the State Superintendent of Education, an
annual State aid claim that states the Average Daily Attendance
of the school's students by month. The best 3 months' Average
Daily Attendance shall be computed for each school. The primary
State aid entitlement shall be computed by multiplying the
applicable Average Daily Attendance by 105% of the Foundation
Level.
(j) District improvement plans, attendance center
distributions, and special education maintenance of State
financial support.
(1) Each school district required to submit a district
improvement plan under Section 2-3.25d of this Code shall
demonstrate, in accordance with requirements adopted by the
State Board of Education, how local and State funds will be
used for strategies that give priority to meeting the
educational needs of Low-income Pupils, Pupils of Limited
English-speaking Ability, and children with disabilities. For
each such category of pupils, budget information submitted with
the plan must demonstrate that the combined amount of local

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funds and primary State aid funds budgeted for strategies that
give priority to that category of pupils is proportionate or
higher, on either an aggregate or per-pupil basis, to the
proportion of the Weighted Foundation Level Budget
attributable to that category of pupils. The State Board of
Education may adopt exceptions to the requirement for
proportionate or higher budgeting to address small pupil
subgroup populations, changes in pupil enrollment, or
extraordinary expenditures required for any school year. The
State Board of Education may also adopt exceptions to the
requirement for proportionate or higher budgeting for any
school district to implement district-wide or school-wide
strategies if the school district or school has a high
percentage of pupils in any particular category relative to
statewide averages and the district can demonstrate in its plan
that a district-wide or school-wide strategy is more likely to
achieve the district's educational objectives for a category of
pupils than a targeted strategy. If a school district fails to
adhere to proportionate or higher budgeting in accordance with
this paragraph (1), the school district must take corrective
action in accordance with requirements adopted by the State
Board of Education. If corrective action is not taken, the
State Board of Education shall deduct, from primary State aid
payments otherwise due the district, an amount equal to the
amount by which the district failed to adhere to the
proportionate or higher requirement.

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(2) School districts with an Average Daily Attendance of
50,000 or more shall be required to distribute, from funds
available pursuant to this Section, no less than $261,000,000
in accordance with the following requirements:
(A) The required amounts shall be distributed to the
attendance centers within the district in proportion to the
number of Low-income Pupils enrolled at each attendance
center during the current school year.
(B) The distribution of these portions of primary State
aid among attendance centers according to these
requirements shall not be compensated for or contravened by
adjustments of the total of other funds appropriated to any
attendance centers, and the board of education shall
utilize funding from one or several sources in order to
fully implement this paragraph (2) annually prior to the
opening of school.
(C) Each attendance center shall be provided, by the
school district, with a distribution of other funds to
which the attendance center is entitled under law in order
that the primary State aid provided by application of this
paragraph (2) supplements rather than supplants the other
funds provided by the school district to the attendance
centers.
(D) Funds received by an attendance center pursuant to
this paragraph (2) shall be used by the attendance center
at the discretion of the principal and local school council

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for programs to improve educational opportunities at
qualifying schools through the following programs and
services: early childhood education, reduced class size or
improved adult to student classroom ratios, enrichment
programs, remedial assistance, attendance improvement, and
other educationally beneficial expenditures that
supplement the regular and basic programs as determined by
the State Board of Education. Funds provided shall not be
expended for any political or lobbying purposes as defined
by rule of the State Board.
(E) Each district subject to the provisions of this
paragraph (2) shall submit an acceptable plan to meet the
educational needs of disadvantaged children, in compliance
with the requirements of this subdivision (E), to the State
Board of Education prior to July 15 of each year. This plan
shall be consistent with the decisions of local school
councils concerning the school expenditure plans developed
in accordance with subdivision 4 of Section 34-2.3 of this
Code. The State Board shall approve or reject the plan
within 60 days after its submission. If the plan is
rejected, the district shall give written notice of an
intent to modify the plan within 15 days after the
notification of rejection and then submit a modified plan
within 30 days after the date of the written notice of an
intent to modify. Districts may amend approved plans
pursuant to rules adopted by the State Board of Education.

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Upon notification by the State Board of Education that
the district has not submitted a plan prior to July 15 or a
modified plan within the time period specified in this
subdivision (E), the State aid funds affected by that plan
or modified plan shall be withheld by the State Board of
Education until a plan or modified plan is submitted.
If the district fails to distribute State aid to
attendance centers in accordance with an approved plan, the
plan for the following year shall allocate funds, in
addition to the funds otherwise required by this paragraph
(2), to those attendance centers that were underfunded
during the previous year in amounts equal to such
underfunding.
For purposes of determining compliance with this paragraph
(2) in relation to the requirements of attendance center
funding, each district subject to the provisions of this
paragraph (2) shall submit as a separate document, on or before
December 1 of each year, a report of expenditure data for the
prior year in addition to any modification of its current plan.
If it is determined that there has been a failure to comply
with the expenditure provisions of this paragraph (2) regarding
contravention or supplanting, the State Superintendent of
Education shall, within 60 days after receipt of the report,
notify the district and any affected local school council. The
district shall, within 45 days after receipt of that
notification, inform the State Superintendent of Education of

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the remedial or corrective action to be taken, whether by
amendment of the current plan, if feasible, or by adjustment in
the plan for the following year. Failure to provide the
expenditure report or the notification of remedial or
corrective action in a timely manner shall result in a
withholding of the affected funds.
The State Board of Education shall adopt rules to implement
the provisions of this paragraph (2). No funds shall be
released under this paragraph (2) to any district that has not
submitted a plan that has been approved by the State Board of
Education.
(3) Each fiscal year, the State Board of Education shall
calculate for each school district an amount of its Total
Primary State Aid funding that shall be deemed attributable to
the provision of special educational facilities and services,
as defined in Section 14-1.08 of this Code, in a manner that
ensures compliance with maintenance of State financial support
requirements under the federal Individuals with Disabilities
Education Act. A school district must use such funds only for
the provision of special educational facilities and services,
as defined in Section 14-1.08 of this Code, and must comply
with any expenditure verification procedures adopted by the
State Board of Education.
(k) Education Funding Advisory Board. For the 2017-2018 and
subsequent school years, the Education Funding Advisory Board
established pursuant to subsection (M) of Section 18-8.05 of

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this Code, in consultation with the State Board of Education,
shall make recommendations as provided in this subsection (k)
to the General Assembly for the Foundation Level under
paragraph (2) of subsection (b) of this Section. The
recommended foundation level shall be determined based on
consideration of 2 separate methodologies:
(1) a methodology that incorporates the basic
education expenditures of low-spending schools exhibiting
high academic performance; and
(2) an evidence-based methodology that identifies an
educational program that includes research-based
educational strategies and uses the cost of that program to
determine the cost of education.
The Education Funding Advisory Board shall make its
recommendations to the General Assembly on or before January 31
of odd-numbered years, beginning on or before January 31, 2017.
(l) Primary State Aid Review Committee. The State
Superintendent of Education shall appoint a committee of no
more than 20 members, consisting of school administrators,
school business officials, school financing experts, parents,
teachers, and concerned citizens to review the administration
of primary State aid in this State and the impact on school
district finances of this amendatory Act of the 98th General
Assembly. The Committee shall make periodic recommendations to
the State Superintendent of Education and the General Assembly
concerning the administration of primary State aid, any

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administrative rules needed for the implementation of this
Section, and suggestions for amending this Section or other
Sections of this Code to achieve a school funding system that
provides adequate, equitable, transparent, and accountable
distribution of funds to school districts that will prepare
students for success after high school. By no later than
January 31, 2017 and January 31 of each odd-numbered year
thereafter, the Committee shall submit a report with
recommendations to the State Superintendent and General
Assembly. The report submitted by no later than January 31,
2017 must address the following:
(1) whether to relate funding through the primary State
aid formula to district accountability or accreditation
status;
(2) whether to include funding for State career and
technical education and transportation for children
described in Section 14-1.02 of this Code within the
primary State aid formula;
(3) whether to account for municipal impact fees,
distributions from a special tax allocation fund
established in relation to tax increment allocation
financing, available fund balances maintained by a
financial institution, and other similar funds received or
maintained by school districts in the calculation of
Available Local Resources Per Pupil;
(4) whether regionalization factors should be

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incorporated into the primary State aid formula; and
(5) methods for reducing State liability for PTELL PSA
Adjustments.
(m) Adequacy study. Subject to the availability of funding
through appropriations made specifically for this purpose, by
no later than January 31, 2019, the State Board of Education
shall contract with a public or private entity to conduct a
study of the adequacy of education funding in this State. At a
minimum, the adequacy study shall:
(1) identify a base funding level for students without
special needs necessary to meet adequate growth;
(2) include per pupil weights for students with special
needs to be applied to the base funding level;
(3) include an analysis of the effect of concentrations
of poverty on adequacy targets;
(4) include an analysis of the assumed school district
tax rates that should be included within the funding
formula; and
(5) in collaboration with the Illinois Early Learning
Council, include an analysis of what level of Preschool for
All Children funding would be necessary to serve all
children ages 0-5 years in the highest-priority service
tier (as specified in paragraph (4.5) of subsection (a) of
Section 2-3.71 of this Code) and an analysis of the
potential cost savings that that level of Preschool for All
Children investment would have on the kindergarten through

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grade 12 system.
(n) References. On and after July 1, 2014, references in
other laws to general State aid funds or calculations under
Section 18-8.05 of this Code shall be deemed to be references
to primary State aid funds or calculations under this Section.
(105 ILCS 5/18-9) (from Ch. 122, par. 18-9)
Sec. 18-9. Requirement for special equalization and
supplementary State aid. If property comprising an aggregate
assessed valuation equal to 6% or more of the total assessed
valuation of all taxable property in a school district is owned
by a person or corporation that is the subject of bankruptcy
proceedings or that has been adjudged bankrupt and, as a result
thereof, has not paid taxes on the property, then the district
may amend its general State aid or primary State aid claim (i)
back to the inception of the bankruptcy, not to exceed 6 years,
in which time those taxes were not paid and (ii) for each
succeeding year that those taxes remain unpaid, by adding to
the claim an amount determined by multiplying the assessed
valuation of the property on which taxes have not been paid due
to the bankruptcy by the lesser of the total tax rate for the
district for the tax year for which the taxes are unpaid or the
applicable rate used in calculating the district's general
State aid under paragraph (3) of subsection (D) of Section
18-8.05 of this Code or primary State aid under paragraph (3)
of subsection (d) of Section 18-8.15 of this Code, as

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applicable. If at any time a district that receives additional
State aid under this Section receives tax revenue from the
property for the years that taxes were not paid, the district's
next claim for State aid shall be reduced in an amount equal to
the taxes paid on the property, not to exceed the additional
State aid received under this Section. Claims under this
Section shall be filed on forms prescribed by the State
Superintendent of Education, and the State Superintendent of
Education, upon receipt of a claim, shall adjust the claim in
accordance with the provisions of this Section. Supplementary
State aid for each succeeding year under this Section shall be
paid beginning with the first general State aid or primary
State aid claim paid after the district has filed a completed
claim in accordance with this Section.
(Source: P.A. 95-496, eff. 8-28-07.)
(105 ILCS 5/18-12) (from Ch. 122, par. 18-12)
Sec. 18-12. Dates for filing State aid claims. The school
board of each school district shall require teachers,
principals, or superintendents to furnish from records kept by
them such data as it needs in preparing and certifying to the
regional superintendent its school district report of claims
provided in Sections 18-8.05 through 18-9 as required by the
State Superintendent of Education. The district claim shall be
based on the latest available equalized assessed valuation and
tax rates, as provided in Section 18-8.05 or 18-8.15 and shall

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use the average daily attendance as determined by the method
outlined in Section 18-8.05 or 18-8.15 and shall be certified
and filed with the regional superintendent by June 21 for
districts with an official school calendar end date before June
15 or within 2 weeks following the official school calendar end
date for districts with a school year end date of June 15 or
later. The regional superintendent shall certify and file with
the State Superintendent of Education district State aid claims
by July 1 for districts with an official school calendar end
date before June 15 or no later than July 15 for districts with
an official school calendar end date of June 15 or later.
Failure to so file by these deadlines constitutes a forfeiture
of the right to receive payment by the State until such claim
is filed and vouchered for payment. The regional superintendent
of schools shall certify the county report of claims by July
15; and the State Superintendent of Education shall voucher for
payment those claims to the State Comptroller as provided in
Section 18-11.
Except as otherwise provided in this Section, if any school
district fails to provide the minimum school term specified in
Section 10-19, the State aid claim for that year shall be
reduced by the State Superintendent of Education in an amount
equivalent to 1/176 or .56818% for each day less than the
number of days required by this Code.
If the State Superintendent of Education determines that
the failure to provide the minimum school term was occasioned

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by an act or acts of God, or was occasioned by conditions
beyond the control of the school district which posed a
hazardous threat to the health and safety of pupils, the State
aid claim need not be reduced.
If a school district is precluded from providing the
minimum hours of instruction required for a full day of
attendance due to an adverse weather condition or a condition
beyond the control of the school district that poses a
hazardous threat to the health and safety of students, then the
partial day of attendance may be counted if (i) the school
district has provided at least one hour of instruction prior to
the closure of the school district, (ii) a school building has
provided at least one hour of instruction prior to the closure
of the school building, or (iii) the normal start time of the
school district is delayed.
If, prior to providing any instruction, a school district
must close one or more but not all school buildings after
consultation with a local emergency response agency or due to a
condition beyond the control of the school district, then the
school district may claim attendance for up to 2 school days
based on the average attendance of the 3 school days
immediately preceding the closure of the affected school
building. The partial or no day of attendance described in this
Section and the reasons therefore shall be certified within a
month of the closing or delayed start by the school district
superintendent to the regional superintendent of schools for

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forwarding to the State Superintendent of Education for
approval.
No exception to the requirement of providing a minimum
school term may be approved by the State Superintendent of
Education pursuant to this Section unless a school district has
first used all emergency days provided for in its regular
calendar.
If the State Superintendent of Education declares that an
energy shortage exists during any part of the school year for
the State or a designated portion of the State, a district may
operate the school attendance centers within the district 4
days of the week during the time of the shortage by extending
each existing school day by one clock hour of school work, and
the State aid claim shall not be reduced, nor shall the
employees of that district suffer any reduction in salary or
benefits as a result thereof. A district may operate all
attendance centers on this revised schedule, or may apply the
schedule to selected attendance centers, taking into
consideration such factors as pupil transportation schedules
and patterns and sources of energy for individual attendance
centers.
Electronically submitted State aid claims shall be
submitted by duly authorized district or regional individuals
over a secure network that is password protected. The
electronic submission of a State aid claim must be accompanied
with an affirmation that all of the provisions of Sections

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18-8.05 through 18-9, 10-22.5, and 24-4 of this Code are met in
all respects.
(Source: P.A. 95-152, eff. 8-14-07; 95-811, eff. 8-13-08;
95-876, eff. 8-21-08; 96-734, eff. 8-25-09.)
(105 ILCS 5/26-16)
Sec. 26-16. Graduation incentives program.
(a) The General Assembly finds that it is critical to
provide options for children to succeed in school. The purpose
of this Section is to provide incentives for and encourage all
Illinois students who have experienced or are experiencing
difficulty in the traditional education system to enroll in
alternative programs.
(b) Any student who is below the age of 20 years is
eligible to enroll in a graduation incentives program if he or
she:
(1) is considered a dropout pursuant to Section 26-2a
of this Code;
(2) has been suspended or expelled pursuant to Section
10-22.6 or 34-19 of this Code;
(3) is pregnant or is a parent;
(4) has been assessed as chemically dependent; or
(5) is enrolled in a bilingual education or LEP
program.
(c) The following programs qualify as graduation
incentives programs for students meeting the criteria

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

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amounts, and limits on reimbursement.
(5) Adult education courses that offer preparation for
the General Educational Development Test.
(d) Graduation incentives programs established by school
districts are entitled to claim general State aid and primary
State aid, subject to Sections 13B-50, 13B-50.5, and 13B-50.10
of this Code. Graduation incentives programs operated by
regional offices of education are entitled to receive general
State aid and primary State aid at the foundation level of
support per pupil enrolled. A school district must ensure that
its graduation incentives program receives supplemental
general State aid, transportation reimbursements, and special
education resources, if appropriate, for students enrolled in
the program.
(Source: P.A. 93-858, eff. 1-1-05; 93-1079, eff. 1-21-05.)
(105 ILCS 5/27-8.1) (from Ch. 122, par. 27-8.1)
Sec. 27-8.1. Health examinations and immunizations.
(1) In compliance with rules and regulations which the
Department of Public Health shall promulgate, and except as
hereinafter provided, all children in Illinois shall have a
health examination as follows: within one year prior to
entering kindergarten or the first grade of any public,
private, or parochial elementary school; upon entering the
sixth and ninth grades of any public, private, or parochial
school; prior to entrance into any public, private, or

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

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

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

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by the Department of Public Health as having a high incidence
of tuberculosis. The Department of Public Health shall specify
that a diabetes screening as defined by rule shall be included
as a required part of each health examination. Diabetes testing
is not required.
Physicians licensed to practice medicine in all of its
branches, advanced practice nurses who have a written
collaborative agreement with a collaborating physician which
authorizes them to perform health examinations, or physician
assistants who have been delegated the performance of health
examinations by their supervising physician shall be
responsible for the performance of the health examinations,
other than dental examinations, eye examinations, and vision
and hearing screening, and shall sign all report forms required
by subsection (4) of this Section that pertain to those
portions of the health examination for which the physician,
advanced practice nurse, or physician assistant is
responsible. If a registered nurse performs any part of a
health examination, then a physician licensed to practice
medicine in all of its branches must review and sign all
required report forms. Licensed dentists shall perform all
dental examinations and shall sign all report forms required by
subsection (4) of this Section that pertain to the dental
examinations. Physicians licensed to practice medicine in all
its branches or licensed optometrists shall perform all eye
examinations required by this Section and shall sign all report

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forms required by subsection (4) of this Section that pertain
to the eye examination. For purposes of this Section, an eye
examination shall at a minimum include history, visual acuity,
subjective refraction to best visual acuity near and far,
internal and external examination, and a glaucoma evaluation,
as well as any other tests or observations that in the
professional judgment of the doctor are necessary. Vision and
hearing screening tests, which shall not be considered
examinations as that term is used in this Section, shall be
conducted in accordance with rules and regulations of the
Department of Public Health, and by individuals whom the
Department of Public Health has certified. In these rules and
regulations, the Department of Public Health shall require that
individuals conducting vision screening tests give a child's
parent or guardian written notification, before the vision
screening is conducted, that states, "Vision screening is not a
substitute for a complete eye and vision evaluation by an eye
doctor. Your child is not required to undergo this vision
screening if an optometrist or ophthalmologist has completed
and signed a report form indicating that an examination has
been administered within the previous 12 months."
(3) Every child shall, at or about the same time as he or
she receives a health examination required by subsection (1) of
this Section, present to the local school proof of having
received such immunizations against preventable communicable
diseases as the Department of Public Health shall require by

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rules and regulations promulgated pursuant to this Section and
the Communicable Disease Prevention Act.
(4) The individuals conducting the health examination,
dental examination, or eye examination shall record the fact of
having conducted the examination, and such additional
information as required, including for a health examination
data relating to obesity (including at a minimum, date of
birth, gender, height, weight, blood pressure, and date of
exam), on uniform forms which the Department of Public Health
and the State Board of Education shall prescribe for statewide
use. The examiner shall summarize on the report form any
condition that he or she suspects indicates a need for special
services, including for a health examination factors relating
to obesity. The individuals confirming the administration of
required immunizations shall record as indicated on the form
that the immunizations were administered.
(5) If a child does not submit proof of having had either
the health examination or the immunization as required, then
the child shall be examined or receive the immunization, as the
case may be, and present proof by October 15 of the current
school year, or by an earlier date of the current school year
established by a school district. To establish a date before
October 15 of the current school year for the health
examination or immunization as required, a school district must
give notice of the requirements of this Section 60 days prior
to the earlier established date. If for medical reasons one or

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more of the required immunizations must be given after October
15 of the current school year, or after an earlier established
date of the current school year, then the child shall present,
by October 15, or by the earlier established date, a schedule
for the administration of the immunizations and a statement of
the medical reasons causing the delay, both the schedule and
the statement being issued by the physician, advanced practice
nurse, physician assistant, registered nurse, or local health
department that will be responsible for administration of the
remaining required immunizations. If a child does not comply by
October 15, or by the earlier established date of the current
school year, with the requirements of this subsection, then the
local school authority shall exclude that child from school
until such time as the child presents proof of having had the
health examination as required and presents proof of having
received those required immunizations which are medically
possible to receive immediately. During a child's exclusion
from school for noncompliance with this subsection, the child's
parents or legal guardian shall be considered in violation of
Section 26-1 and subject to any penalty imposed by Section
26-10. This subsection (5) does not apply to dental
examinations and eye examinations. Until June 30, 2015, if the
student is an out-of-state transfer student and does not have
the proof required under this subsection (5) before October 15
of the current year or whatever date is set by the school
district, then he or she may only attend classes (i) if he or

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she has proof that an appointment for the required vaccinations
has been scheduled with a party authorized to submit proof of
the required vaccinations. If the proof of vaccination required
under this subsection (5) is not submitted within 30 days after
the student is permitted to attend classes, then the student is
not to be permitted to attend classes until proof of the
vaccinations has been properly submitted. No school district or
employee of a school district shall be held liable for any
injury or illness to another person that results from admitting
an out-of-state transfer student to class that has an
appointment scheduled pursuant to this subsection (5).
(6) Every school shall report to the State Board of
Education by November 15, in the manner which that agency shall
require, the number of children who have received the necessary
immunizations and the health examination (other than a dental
examination or eye examination) as required, indicating, of
those who have not received the immunizations and examination
as required, the number of children who are exempt from health
examination and immunization requirements on religious or
medical grounds as provided in subsection (8). On or before
December 1 of each year, every public school district and
registered nonpublic school shall make publicly available the
immunization data they are required to submit to the State
Board of Education by November 15. The immunization data made
publicly available must be identical to the data the school
district or school has reported to the State Board of

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Education.
Every school shall report to the State Board of Education
by June 30, in the manner that the State Board requires, the
number of children who have received the required dental
examination, indicating, of those who have not received the
required dental examination, the number of children who are
exempt from the dental examination on religious grounds as
provided in subsection (8) of this Section and the number of
children who have received a waiver under subsection (1.5) of
this Section.
Every school shall report to the State Board of Education
by June 30, in the manner that the State Board requires, the
number of children who have received the required eye
examination, indicating, of those who have not received the
required eye examination, the number of children who are exempt
from the eye examination as provided in subsection (8) of this
Section, the number of children who have received a waiver
under subsection (1.10) of this Section, and the total number
of children in noncompliance with the eye examination
requirement.
The reported information under this subsection (6) shall be
provided to the Department of Public Health by the State Board
of Education.
(7) Upon determining that the number of pupils who are
required to be in compliance with subsection (5) of this
Section is below 90% of the number of pupils enrolled in the

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school district, 10% of each State aid payment made pursuant to
Section 18-8.05 or 18-8.15 to the school district for such year
may be withheld by the State Board of Education until the
number of students in compliance with subsection (5) is the
applicable specified percentage or higher.
(8) Parents or legal guardians who object to health,
dental, or eye examinations or any part thereof, or to
immunizations, on religious grounds shall not be required to
submit their children or wards to the examinations or
immunizations to which they so object if such parents or legal
guardians present to the appropriate local school authority a
signed statement of objection, detailing the grounds for the
objection. If the physical condition of the child is such that
any one or more of the immunizing agents should not be
administered, the examining physician, advanced practice
nurse, or physician assistant responsible for the performance
of the health examination shall endorse that fact upon the
health examination form. Exempting a child from the health,
dental, or eye examination does not exempt the child from
participation in the program of physical education training
provided in Sections 27-5 through 27-7 of this Code.
(9) For the purposes of this Section, "nursery schools"
means those nursery schools operated by elementary school
systems or secondary level school units or institutions of
higher learning.
(Source: P.A. 96-953, eff. 6-28-10; 97-216, eff. 1-1-12;

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97-910, eff. 1-1-13.)
(105 ILCS 5/27A-9)
Sec. 27A-9. Term of charter; renewal.
(a) A charter may be granted for a period not less than 5
and not more than 10 school years. A charter may be renewed in
incremental periods not to exceed 5 school years.
(b) A charter school renewal proposal submitted to the
local school board or the Commission, as the chartering entity,
shall contain:
(1) A report on the progress of the charter school in
achieving the goals, objectives, pupil performance
standards, content standards, and other terms of the
initial approved charter proposal; and
(2) A financial statement that discloses the costs of
administration, instruction, and other spending categories
for the charter school that is understandable to the
general public and that will allow comparison of those
costs to other schools or other comparable organizations,
in a format required by the State Board.
(c) A charter may be revoked or not renewed if the local
school board or the Commission, as the chartering entity,
clearly demonstrates that the charter school did any of the
following, or otherwise failed to comply with the requirements
of this law:
(1) Committed a material violation of any of the

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conditions, standards, or procedures set forth in the
charter.
(2) Failed to meet or make reasonable progress toward
achievement of the content standards or pupil performance
standards identified in the charter.
(3) Failed to meet generally accepted standards of
fiscal management.
(4) Violated any provision of law from which the
charter school was not exempted.
In the case of revocation, the local school board or the
Commission, as the chartering entity, shall notify the charter
school in writing of the reason why the charter is subject to
revocation. The charter school shall submit a written plan to
the local school board or the Commission, whichever is
applicable, to rectify the problem. The plan shall include a
timeline for implementation, which shall not exceed 2 years or
the date of the charter's expiration, whichever is earlier. If
the local school board or the Commission, as the chartering
entity, finds that the charter school has failed to implement
the plan of remediation and adhere to the timeline, then the
chartering entity shall revoke the charter. Except in
situations of an emergency where the health, safety, or
education of the charter school's students is at risk, the
revocation shall take place at the end of a school year.
Nothing in this amendatory Act of the 96th General Assembly
shall be construed to prohibit an implementation timetable that

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is less than 2 years in duration.
(d) (Blank).
(e) Notice of a local school board's decision to deny,
revoke or not to renew a charter shall be provided to the
Commission and the State Board. The Commission may reverse a
local board's decision if the Commission finds that the charter
school or charter school proposal (i) is in compliance with
this Article, and (ii) is in the best interests of the students
it is designed to serve. The State Board may condition the
granting of an appeal on the acceptance by the charter school
of funding in an amount less than that requested in the
proposal submitted to the local school board. Final decisions
of the Commission shall be subject to judicial review under the
Administrative Review Law.
(f) Notwithstanding other provisions of this Article, if
the Commission on appeal reverses a local board's decision or
if a charter school is approved by referendum, the Commission
shall act as the authorized chartering entity for the charter
school. The Commission shall approve the charter and shall
perform all functions under this Article otherwise performed by
the local school board. The State Board shall determine whether
the charter proposal approved by the Commission is consistent
with the provisions of this Article and, if the approved
proposal complies, certify the proposal pursuant to this
Article. The State Board shall report the aggregate number of
charter school pupils resident in a school district to that

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district and shall notify the district of the amount of funding
to be paid by the Commission to the charter school enrolling
such students. The Commission shall require the charter school
to maintain accurate records of daily attendance that shall be
deemed sufficient to file claims under Section 18-8.05 or
18-8.15 notwithstanding any other requirements of that Section
regarding hours of instruction and teacher certification. The
State Board shall withhold from funds otherwise due the
district the funds authorized by this Article to be paid to the
charter school and shall pay such amounts to the charter
school.
(g) For charter schools authorized by the Commission, the
Commission shall quarterly certify to the State Board the
student enrollment for each of its charter schools.
(h) For charter schools authorized by the Commission, the
State Board shall pay directly to a charter school any federal
or State aid attributable to a student with a disability
attending the school.
(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)
(105 ILCS 5/27A-11)
Sec. 27A-11. Local financing.
(a) For purposes of the School Code, pupils enrolled in a
charter school shall be included in the pupil enrollment of the
school district within which the pupil resides. Each charter
school (i) shall determine the school district in which each

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pupil who is enrolled in the charter school resides, (ii) shall
report the aggregate number of pupils resident of a school
district who are enrolled in the charter school to the school
district in which those pupils reside, and (iii) shall maintain
accurate records of daily attendance that shall be deemed
sufficient to file claims under Section 18-8 or 18-8.15
notwithstanding any other requirements of that Section
regarding hours of instruction and teacher certification.
(b) Except for a charter school established by referendum
under Section 27A-6.5, as part of a charter school contract,
the charter school and the local school board shall agree on
funding and any services to be provided by the school district
to the charter school. Agreed funding that a charter school is
to receive from the local school board for a school year shall
be paid in equal quarterly installments with the payment of the
installment for the first quarter being made not later than
July 1, unless the charter establishes a different payment
schedule.
All services centrally or otherwise provided by the school
district including, but not limited to, rent, food services,
custodial services, maintenance, curriculum, media services,
libraries, transportation, and warehousing shall be subject to
negotiation between a charter school and the local school board
and paid for out of the revenues negotiated pursuant to this
subsection (b); provided that the local school board shall not
attempt, by negotiation or otherwise, to obligate a charter

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school to provide pupil transportation for pupils for whom a
district is not required to provide transportation under the
criteria set forth in subsection (a)(13) of Section 27A-7.
In no event shall the funding be less than 75% or more than
125% of the school district's per capita student tuition
multiplied by the number of students residing in the district
who are enrolled in the charter school.
It is the intent of the General Assembly that funding and
service agreements under this subsection (b) shall be neither a
financial incentive nor a financial disincentive to the
establishment of a charter school.
The charter school may set and collect reasonable fees.
Fees collected from students enrolled at a charter school shall
be retained by the charter school.
(c) Notwithstanding subsection (b) of this Section, the
proportionate share of State and federal resources generated by
students with disabilities or staff serving them shall be
directed to charter schools enrolling those students by their
school districts or administrative units. The proportionate
share of moneys generated under other federal or State
categorical aid programs shall be directed to charter schools
serving students eligible for that aid.
(d) The governing body of a charter school is authorized to
accept gifts, donations, or grants of any kind made to the
charter school and to expend or use gifts, donations, or grants
in accordance with the conditions prescribed by the donor;

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however, a gift, donation, or grant may not be accepted by the
governing body if it is subject to any condition contrary to
applicable law or contrary to the terms of the contract between
the charter school and the local school board. Charter schools
shall be encouraged to solicit and utilize community volunteer
speakers and other instructional resources when providing
instruction on the Holocaust and other historical events.
(e) (Blank).
(f) The State Board shall provide technical assistance to
persons and groups preparing or revising charter applications.
(g) At the non-renewal or revocation of its charter, each
charter school shall refund to the local board of education all
unspent funds.
(h) A charter school is authorized to incur temporary,
short term debt to pay operating expenses in anticipation of
receipt of funds from the local school board.
(Source: P.A. 90-548, eff. 1-1-98; 90-757, eff. 8-14-98;
91-407, eff. 8-3-99.)
(105 ILCS 5/29-5) (from Ch. 122, par. 29-5)
Sec. 29-5. Reimbursement by State for transportation. Any
school district, maintaining a school, transporting resident
pupils to another school district's vocational program,
offered through a joint agreement approved by the State Board
of Education, as provided in Section 10-22.22 or transporting
its resident pupils to a school which meets the standards for

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recognition as established by the State Board of Education
which provides transportation meeting the standards of safety,
comfort, convenience, efficiency and operation prescribed by
the State Board of Education for resident pupils in
kindergarten or any of grades 1 through 12 who: (a) reside at
least 1 1/2 miles as measured by the customary route of travel,
from the school attended; or (b) reside in areas where
conditions are such that walking constitutes a hazard to the
safety of the child when determined under Section 29-3; and (c)
are transported to the school attended from pick-up points at
the beginning of the school day and back again at the close of
the school day or transported to and from their assigned
attendance centers during the school day, shall be reimbursed
by the State as hereinafter provided in this Section through
fiscal year 2014.
Through fiscal year 2014, the The State will pay the cost
of transporting eligible pupils less the assessed valuation in
a dual school district maintaining secondary grades 9 to 12
inclusive times a qualifying rate of .05%; in elementary school
districts maintaining grades K to 8 times a qualifying rate of
.06%; and in unit districts maintaining grades K to 12,
including optional elementary unit districts and combined high
school - unit districts, times a qualifying rate of .07%;
provided that for optional elementary unit districts and
combined high school - unit districts, assessed valuation for
high school purposes, as defined in Article 11E of this Code,

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must be used. To be eligible to receive reimbursement in excess
of 4/5 of the cost to transport eligible pupils, a school
district shall have a Transportation Fund tax rate of at least
.12%. If a school district does not have a .12% Transportation
Fund tax rate, the amount of its claim in excess of 4/5 of the
cost of transporting pupils shall be reduced by the sum arrived
at by subtracting the Transportation Fund tax rate from .12%
and multiplying that amount by the districts equalized or
assessed valuation, provided, that in no case shall said
reduction result in reimbursement of less than 4/5 of the cost
to transport eligible pupils.
Through fiscal year 2014, the The minimum amount to be
received by a district is $16 times the number of eligible
pupils transported.
When calculating the reimbursement for transportation
costs, the State Board of Education may not deduct the number
of pupils enrolled in early education programs from the number
of pupils eligible for reimbursement if the pupils enrolled in
the early education programs are transported at the same time
as other eligible pupils.
Through fiscal year 2014, any Any such district
transporting resident pupils during the school day to an area
vocational school or another school district's vocational
program more than 1 1/2 miles from the school attended, as
provided in Sections 10-22.20a and 10-22.22, shall be
reimbursed by the State for 4/5 of the cost of transporting

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eligible pupils.
School day means that period of time which the pupil is
required to be in attendance for instructional purposes.
If a pupil is at a location within the school district
other than his residence for child care purposes at the time
for transportation to school, that location may be considered
for purposes of determining the 1 1/2 miles from the school
attended.
Claims for reimbursement that include children who attend
any school other than a public school shall show the number of
such children transported.
Claims for reimbursement under this Section shall not be
paid for the transportation of pupils for whom transportation
costs are claimed for payment under other Sections of this Act.
The allowable direct cost of transporting pupils for
regular, vocational, and special education pupil
transportation shall be limited to the sum of the cost of
physical examinations required for employment as a school bus
driver; the salaries of full or part-time drivers and school
bus maintenance personnel; employee benefits excluding
Illinois municipal retirement payments, social security
payments, unemployment insurance payments and workers'
compensation insurance premiums; expenditures to independent
carriers who operate school buses; payments to other school
districts for pupil transportation services; pre-approved
contractual expenditures for computerized bus scheduling; the

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cost of gasoline, oil, tires, and other supplies necessary for
the operation of school buses; the cost of converting buses'
gasoline engines to more fuel efficient engines or to engines
which use alternative energy sources; the cost of travel to
meetings and workshops conducted by the regional
superintendent or the State Superintendent of Education
pursuant to the standards established by the Secretary of State
under Section 6-106 of the Illinois Vehicle Code to improve the
driving skills of school bus drivers; the cost of maintenance
of school buses including parts and materials used;
expenditures for leasing transportation vehicles, except
interest and service charges; the cost of insurance and
licenses for transportation vehicles; expenditures for the
rental of transportation equipment; plus a depreciation
allowance of 20% for 5 years for school buses and vehicles
approved for transporting pupils to and from school and a
depreciation allowance of 10% for 10 years for other
transportation equipment so used. Each school year, if a school
district has made expenditures to the Regional Transportation
Authority or any of its service boards, a mass transit
district, or an urban transportation district under an
intergovernmental agreement with the district to provide for
the transportation of pupils and if the public transit carrier
received direct payment for services or passes from a school
district within its service area during the 2000-2001 school
year, then the allowable direct cost of transporting pupils for

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regular, vocational, and special education pupil
transportation shall also include the expenditures that the
district has made to the public transit carrier. In addition to
the above allowable costs school districts shall also claim all
transportation supervisory salary costs, including Illinois
municipal retirement payments, and all transportation related
building and building maintenance costs without limitation.
Special education allowable costs shall also include
expenditures for the salaries of attendants or aides for that
portion of the time they assist special education pupils while
in transit and expenditures for parents and public carriers for
transporting special education pupils when pre-approved by the
State Superintendent of Education.
Indirect costs shall be included in the reimbursement claim
for districts which own and operate their own school buses.
Such indirect costs shall include administrative costs, or any
costs attributable to transporting pupils from their
attendance centers to another school building for
instructional purposes. No school district which owns and
operates its own school buses may claim reimbursement for
indirect costs which exceed 5% of the total allowable direct
costs for pupil transportation.
The State Board of Education shall prescribe uniform
regulations for determining the above standards and shall
prescribe forms of cost accounting and standards of determining
reasonable depreciation. Such depreciation shall include the

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cost of equipping school buses with the safety features
required by law or by the rules, regulations and standards
promulgated by the State Board of Education, and the Department
of Transportation for the safety and construction of school
buses provided, however, any equipment cost reimbursed by the
Department of Transportation for equipping school buses with
such safety equipment shall be deducted from the allowable cost
in the computation of reimbursement under this Section in the
same percentage as the cost of the equipment is depreciated.
On or before August 15, annually, through August 15, 2013,
the chief school administrator for the district shall certify
to the State Superintendent of Education the district's claim
for reimbursement for the school year ending on June 30 next
preceding. The State Superintendent of Education shall check
and approve the claims and prepare the vouchers showing the
amounts due for district reimbursement claims. Each fiscal year
through fiscal year 2014, the State Superintendent of Education
shall prepare and transmit the first 3 vouchers to the
Comptroller on the 30th day of September, December and March,
respectively, and the final voucher, no later than June 20.
If the amount appropriated for transportation
reimbursement is insufficient to fund total claims for any
fiscal year, the State Board of Education shall reduce each
school district's allowable costs and flat grant amount
proportionately to make total adjusted claims equal the total
amount appropriated.

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For purposes of calculating claims for reimbursement under
this Section for any school year beginning July 1, 1998, or
thereafter, the equalized assessed valuation for a school
district used to compute reimbursement shall be computed in the
same manner as it is computed under paragraph (2) of subsection
(G) of Section 18-8.05.
All reimbursements received from the State shall be
deposited into the district's transportation fund or into the
fund from which the allowable expenditures were made.
Notwithstanding any other provision of law, any school
district receiving a payment under this Section or under
Section 14-7.02, 14-7.02b, or 14-13.01 of this Code may
classify all or a portion of the funds that it receives in a
particular fiscal year or from general State aid pursuant to
Section 18-8.05 of this Code as funds received in connection
with any funding program for which it is entitled to receive
funds from the State in that fiscal year (including, without
limitation, any funding program referenced in this Section),
regardless of the source or timing of the receipt. The district
may not classify more funds as funds received in connection
with the funding program than the district is entitled to
receive in that fiscal year for that program. Any
classification by a district must be made by a resolution of
its board of education. The resolution must identify the amount
of any payments or general State aid to be classified under
this paragraph and must specify the funding program to which

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the funds are to be treated as received in connection
therewith. This resolution is controlling as to the
classification of funds referenced therein. A certified copy of
the resolution must be sent to the State Superintendent of
Education. The resolution shall still take effect even though a
copy of the resolution has not been sent to the State
Superintendent of Education in a timely manner. No
classification under this paragraph by a district shall affect
the total amount or timing of money the district is entitled to
receive under this Code. No classification under this paragraph
by a district shall in any way relieve the district from or
affect any requirements that otherwise would apply with respect
to that funding program, including any accounting of funds by
source, reporting expenditures by original source and purpose,
reporting requirements, or requirements of providing services.
Any school district with a population of not more than
500,000 must deposit all funds received under this Article into
the transportation fund and use those funds for the provision
of transportation services.
(Source: P.A. 95-903, eff. 8-25-08; 96-1264, eff. 1-1-11.)
(105 ILCS 5/34-2.3) (from Ch. 122, par. 34-2.3)
Sec. 34-2.3. Local school councils - Powers and duties.
Each local school council shall have and exercise, consistent
with the provisions of this Article and the powers and duties
of the board of education, the following powers and duties:

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1. (A) To annually evaluate the performance of the
principal of the attendance center using a Board approved
principal evaluation form, which shall include the evaluation
of (i) student academic improvement, as defined by the school
improvement plan, (ii) student absenteeism rates at the school,
(iii) instructional leadership, (iv) the effective
implementation of programs, policies, or strategies to improve
student academic achievement, (v) school management, and (vi)
any other factors deemed relevant by the local school council,
including, without limitation, the principal's communication
skills and ability to create and maintain a student-centered
learning environment, to develop opportunities for
professional development, and to encourage parental
involvement and community partnerships to achieve school
improvement;
(B) to determine in the manner provided by subsection (c)
of Section 34-2.2 and subdivision 1.5 of this Section whether
the performance contract of the principal shall be renewed; and
(C) to directly select, in the manner provided by
subsection (c) of Section 34-2.2, a new principal (including a
new principal to fill a vacancy) -- without submitting any list
of candidates for that position to the general superintendent
as provided in paragraph 2 of this Section -- to serve under a
4 year performance contract; provided that (i) the
determination of whether the principal's performance contract
is to be renewed, based upon the evaluation required by

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subdivision 1.5 of this Section, shall be made no later than
150 days prior to the expiration of the current
performance-based contract of the principal, (ii) in cases
where such performance contract is not renewed -- a direct
selection of a new principal -- to serve under a 4 year
performance contract shall be made by the local school council
no later than 45 days prior to the expiration of the current
performance contract of the principal, and (iii) a selection by
the local school council of a new principal to fill a vacancy
under a 4 year performance contract shall be made within 90
days after the date such vacancy occurs. A Council shall be
required, if requested by the principal, to provide in writing
the reasons for the council's not renewing the principal's
contract.
1.5. The local school council's determination of whether to
renew the principal's contract shall be based on an evaluation
to assess the educational and administrative progress made at
the school during the principal's current performance-based
contract. The local school council shall base its evaluation on
(i) student academic improvement, as defined by the school
improvement plan, (ii) student absenteeism rates at the school,
(iii) instructional leadership, (iv) the effective
implementation of programs, policies, or strategies to improve
student academic achievement, (v) school management, and (vi)
any other factors deemed relevant by the local school council,
including, without limitation, the principal's communication

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skills and ability to create and maintain a student-centered
learning environment, to develop opportunities for
professional development, and to encourage parental
involvement and community partnerships to achieve school
improvement. If a local school council fails to renew the
performance contract of a principal rated by the general
superintendent, or his or her designee, in the previous years'
evaluations as meeting or exceeding expectations, the
principal, within 15 days after the local school council's
decision not to renew the contract, may request a review of the
local school council's principal non-retention decision by a
hearing officer appointed by the American Arbitration
Association. A local school council member or members or the
general superintendent may support the principal's request for
review. During the period of the hearing officer's review of
the local school council's decision on whether or not to retain
the principal, the local school council shall maintain all
authority to search for and contract with a person to serve as
interim or acting principal, or as the principal of the
attendance center under a 4-year performance contract,
provided that any performance contract entered into by the
local school council shall be voidable or modified in
accordance with the decision of the hearing officer. The
principal may request review only once while at that attendance
center. If a local school council renews the contract of a
principal who failed to obtain a rating of "meets" or "exceeds

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expectations" in the general superintendent's evaluation for
the previous year, the general superintendent, within 15 days
after the local school council's decision to renew the
contract, may request a review of the local school council's
principal retention decision by a hearing officer appointed by
the American Arbitration Association. The general
superintendent may request a review only once for that
principal at that attendance center. All requests to review the
retention or non-retention of a principal shall be submitted to
the general superintendent, who shall, in turn, forward such
requests, within 14 days of receipt, to the American
Arbitration Association. The general superintendent shall send
a contemporaneous copy of the request that was forwarded to the
American Arbitration Association to the principal and to each
local school council member and shall inform the local school
council of its rights and responsibilities under the
arbitration process, including the local school council's
right to representation and the manner and process by which the
Board shall pay the costs of the council's representation. If
the local school council retains the principal and the general
superintendent requests a review of the retention decision, the
local school council and the general superintendent shall be
considered parties to the arbitration, a hearing officer shall
be chosen between those 2 parties pursuant to procedures
promulgated by the State Board of Education, and the principal
may retain counsel and participate in the arbitration. If the

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local school council does not retain the principal and the
principal requests a review of the retention decision, the
local school council and the principal shall be considered
parties to the arbitration and a hearing officer shall be
chosen between those 2 parties pursuant to procedures
promulgated by the State Board of Education. The hearing shall
begin (i) within 45 days after the initial request for review
is submitted by the principal to the general superintendent or
(ii) if the initial request for review is made by the general
superintendent, within 45 days after that request is mailed to
the American Arbitration Association. The hearing officer
shall render a decision within 45 days after the hearing begins
and within 90 days after the initial request for review. The
Board shall contract with the American Arbitration Association
for all of the hearing officer's reasonable and necessary
costs. In addition, the Board shall pay any reasonable costs
incurred by a local school council for representation before a
hearing officer.
1.10. The hearing officer shall conduct a hearing, which
shall include (i) a review of the principal's performance,
evaluations, and other evidence of the principal's service at
the school, (ii) reasons provided by the local school council
for its decision, and (iii) documentation evidencing views of
interested persons, including, without limitation, students,
parents, local school council members, school faculty and
staff, the principal, the general superintendent or his or her

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designee, and members of the community. The burden of proof in
establishing that the local school council's decision was
arbitrary and capricious shall be on the party requesting the
arbitration, and this party shall sustain the burden by a
preponderance of the evidence. The hearing officer shall set
the local school council decision aside if that decision, in
light of the record developed at the hearing, is arbitrary and
capricious. The decision of the hearing officer may not be
appealed to the Board or the State Board of Education. If the
hearing officer decides that the principal shall be retained,
the retention period shall not exceed 2 years.
2. In the event (i) the local school council does not renew
the performance contract of the principal, or the principal
fails to receive a satisfactory rating as provided in
subsection (h) of Section 34-8.3, or the principal is removed
for cause during the term of his or her performance contract in
the manner provided by Section 34-85, or a vacancy in the
position of principal otherwise occurs prior to the expiration
of the term of a principal's performance contract, and (ii) the
local school council fails to directly select a new principal
to serve under a 4 year performance contract, the local school
council in such event shall submit to the general
superintendent a list of 3 candidates -- listed in the local
school council's order of preference -- for the position of
principal, one of which shall be selected by the general
superintendent to serve as principal of the attendance center.

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If the general superintendent fails or refuses to select one of
the candidates on the list to serve as principal within 30 days
after being furnished with the candidate list, the general
superintendent shall select and place a principal on an interim
basis (i) for a period not to exceed one year or (ii) until the
local school council selects a new principal with 7 affirmative
votes as provided in subsection (c) of Section 34-2.2,
whichever occurs first. If the local school council fails or
refuses to select and appoint a new principal, as specified by
subsection (c) of Section 34-2.2, the general superintendent
may select and appoint a new principal on an interim basis for
an additional year or until a new contract principal is
selected by the local school council. There shall be no
discrimination on the basis of race, sex, creed, color or
disability unrelated to ability to perform in connection with
the submission of candidates for, and the selection of a
candidate to serve as principal of an attendance center. No
person shall be directly selected, listed as a candidate for,
or selected to serve as principal of an attendance center (i)
if such person has been removed for cause from employment by
the Board or (ii) if such person does not hold a valid
administrative certificate issued or exchanged under Article
21 and endorsed as required by that Article for the position of
principal. A principal whose performance contract is not
renewed as provided under subsection (c) of Section 34-2.2 may
nevertheless, if otherwise qualified and certified as herein

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provided and if he or she has received a satisfactory rating as
provided in subsection (h) of Section 34-8.3, be included by a
local school council as one of the 3 candidates listed in order
of preference on any candidate list from which one person is to
be selected to serve as principal of the attendance center
under a new performance contract. The initial candidate list
required to be submitted by a local school council to the
general superintendent in cases where the local school council
does not renew the performance contract of its principal and
does not directly select a new principal to serve under a 4
year performance contract shall be submitted not later than 30
days prior to the expiration of the current performance
contract. In cases where the local school council fails or
refuses to submit the candidate list to the general
superintendent no later than 30 days prior to the expiration of
the incumbent principal's contract, the general superintendent
may appoint a principal on an interim basis for a period not to
exceed one year, during which time the local school council
shall be able to select a new principal with 7 affirmative
votes as provided in subsection (c) of Section 34-2.2. In cases
where a principal is removed for cause or a vacancy otherwise
occurs in the position of principal and the vacancy is not
filled by direct selection by the local school council, the
candidate list shall be submitted by the local school council
to the general superintendent within 90 days after the date
such removal or vacancy occurs. In cases where the local school

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council fails or refuses to submit the candidate list to the
general superintendent within 90 days after the date of the
vacancy, the general superintendent may appoint a principal on
an interim basis for a period of one year, during which time
the local school council shall be able to select a new
principal with 7 affirmative votes as provided in subsection
(c) of Section 34-2.2.
2.5. Whenever a vacancy in the office of a principal occurs
for any reason, the vacancy shall be filled in the manner
provided by this Section by the selection of a new principal to
serve under a 4 year performance contract.
3. To establish additional criteria to be included as part
of the performance contract of its principal, provided that
such additional criteria shall not discriminate on the basis of
race, sex, creed, color or disability unrelated to ability to
perform, and shall not be inconsistent with the uniform 4 year
performance contract for principals developed by the board as
provided in Section 34-8.1 of the School Code or with other
provisions of this Article governing the authority and
responsibility of principals.
4. To approve the expenditure plan prepared by the
principal with respect to all funds allocated and distributed
to the attendance center by the Board. The expenditure plan
shall be administered by the principal. Notwithstanding any
other provision of this Act or any other law, any expenditure
plan approved and administered under this Section 34-2.3 shall

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be consistent with and subject to the terms of any contract for
services with a third party entered into by the Chicago School
Reform Board of Trustees or the board under this Act.
Via a supermajority vote of 7 members of the local school
council or 8 members of a high school local school council, the
Council may transfer allocations pursuant to Section 34-2.3
within funds; provided that such a transfer is consistent with
applicable law and collective bargaining agreements.
Beginning in fiscal year 1991 and in each fiscal year
thereafter, the Board may reserve up to 1% of its total fiscal
year budget for distribution on a prioritized basis to schools
throughout the school system in order to assure adequate
programs to meet the needs of special student populations as
determined by the Board. This distribution shall take into
account the needs catalogued in the Systemwide Plan and the
various local school improvement plans of the local school
councils. Information about these centrally funded programs
shall be distributed to the local school councils so that their
subsequent planning and programming will account for these
provisions.
Beginning in fiscal year 1991 and in each fiscal year
thereafter, from other amounts available in the applicable
fiscal year budget, the board shall allocate a lump sum amount
to each local school based upon such formula as the board shall
determine taking into account the special needs of the student
body. The local school principal shall develop an expenditure

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plan in consultation with the local school council, the
professional personnel leadership committee and with all other
school personnel, which reflects the priorities and activities
as described in the school's local school improvement plan and
is consistent with applicable law and collective bargaining
agreements and with board policies and standards; however, the
local school council shall have the right to request waivers of
board policy from the board of education and waivers of
employee collective bargaining agreements pursuant to Section
34-8.1a.
The expenditure plan developed by the principal with
respect to amounts available from the fund for prioritized
special needs programs and the allocated lump sum amount must
be approved by the local school council.
The lump sum allocation shall take into account the
following principles:
a. Teachers: Each school shall be allocated funds equal
to the amount appropriated in the previous school year for
compensation for teachers (regular grades kindergarten
through 12th grade) plus whatever increases in
compensation have been negotiated contractually or through
longevity as provided in the negotiated agreement.
Adjustments shall be made due to layoff or reduction in
force, lack of funds or work, change in subject
requirements, enrollment changes, or contracts with third
parties for the performance of services or to rectify any

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inconsistencies with system-wide allocation formulas or
for other legitimate reasons.
b. Other personnel: Funds for other teacher
certificated and uncertificated personnel paid through
non-categorical funds shall be provided according to
system-wide formulas based on student enrollment and the
special needs of the school as determined by the Board.
c. Non-compensation items: Appropriations for all
non-compensation items shall be based on system-wide
formulas based on student enrollment and on the special
needs of the school or factors related to the physical
plant, including but not limited to textbooks, electronic
textbooks and the technological equipment necessary to
gain access to and use electronic textbooks, supplies,
electricity, equipment, and routine maintenance.
d. Funds for categorical programs: Schools shall
receive personnel and funds based on, and shall use such
personnel and funds in accordance with State and Federal
requirements applicable to each categorical program
provided to meet the special needs of the student body
(including but not limited to, Federal Chapter I,
Bilingual, and Special Education).
d.1. Funds for State Title I: Each school shall receive
funds based on State and Board requirements applicable to
each State Title I pupil provided to meet the special needs
of the student body. Each school shall receive the

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proportion of funds as provided in Section 18-8 or 18-8.15
to which they are entitled. These funds shall be spent only
with the budgetary approval of the Local School Council as
provided in Section 34-2.3.
e. The Local School Council shall have the right to
request the principal to close positions and open new ones
consistent with the provisions of the local school
improvement plan provided that these decisions are
consistent with applicable law and collective bargaining
agreements. If a position is closed, pursuant to this
paragraph, the local school shall have for its use the
system-wide average compensation for the closed position.
f. Operating within existing laws and collective
bargaining agreements, the local school council shall have
the right to direct the principal to shift expenditures
within funds.
g. (Blank).
Any funds unexpended at the end of the fiscal year shall be
available to the board of education for use as part of its
budget for the following fiscal year.
5. To make recommendations to the principal concerning
textbook selection and concerning curriculum developed
pursuant to the school improvement plan which is consistent
with systemwide curriculum objectives in accordance with
Sections 34-8 and 34-18 of the School Code and in conformity
with the collective bargaining agreement.

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6. To advise the principal concerning the attendance and
disciplinary policies for the attendance center, subject to the
provisions of this Article and Article 26, and consistent with
the uniform system of discipline established by the board
pursuant to Section 34-19.
7. To approve a school improvement plan developed as
provided in Section 34-2.4. The process and schedule for plan
development shall be publicized to the entire school community,
and the community shall be afforded the opportunity to make
recommendations concerning the plan. At least twice a year the
principal and local school council shall report publicly on
progress and problems with respect to plan implementation.
8. To evaluate the allocation of teaching resources and
other certificated and uncertificated staff to the attendance
center to determine whether such allocation is consistent with
and in furtherance of instructional objectives and school
programs reflective of the school improvement plan adopted for
the attendance center; and to make recommendations to the
board, the general superintendent and the principal concerning
any reallocation of teaching resources or other staff whenever
the council determines that any such reallocation is
appropriate because the qualifications of any existing staff at
the attendance center do not adequately match or support
instructional objectives or school programs which reflect the
school improvement plan.
9. To make recommendations to the principal and the general

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superintendent concerning their respective appointments, after
August 31, 1989, and in the manner provided by Section 34-8 and
Section 34-8.1, of persons to fill any vacant, additional or
newly created positions for teachers at the attendance center
or at attendance centers which include the attendance center
served by the local school council.
10. To request of the Board the manner in which training
and assistance shall be provided to the local school council.
Pursuant to Board guidelines a local school council is
authorized to direct the Board of Education to contract with
personnel or not-for-profit organizations not associated with
the school district to train or assist council members. If
training or assistance is provided by contract with personnel
or organizations not associated with the school district, the
period of training or assistance shall not exceed 30 hours
during a given school year; person shall not be employed on a
continuous basis longer than said period and shall not have
been employed by the Chicago Board of Education within the
preceding six months. Council members shall receive training in
at least the following areas:
1. school budgets;
2. educational theory pertinent to the attendance
center's particular needs, including the development of
the school improvement plan and the principal's
performance contract; and
3. personnel selection.

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Council members shall, to the greatest extent possible,
complete such training within 90 days of election.
11. In accordance with systemwide guidelines contained in
the System-Wide Educational Reform Goals and Objectives Plan,
criteria for evaluation of performance shall be established for
local school councils and local school council members. If a
local school council persists in noncompliance with systemwide
requirements, the Board may impose sanctions and take necessary
corrective action, consistent with Section 34-8.3.
12. Each local school council shall comply with the Open
Meetings Act and the Freedom of Information Act. Each local
school council shall issue and transmit to its school community
a detailed annual report accounting for its activities
programmatically and financially. Each local school council
shall convene at least 2 well-publicized meetings annually with
its entire school community. These meetings shall include
presentation of the proposed local school improvement plan, of
the proposed school expenditure plan, and the annual report,
and shall provide an opportunity for public comment.
13. Each local school council is encouraged to involve
additional non-voting members of the school community in
facilitating the council's exercise of its responsibilities.
14. The local school council may adopt a school uniform or
dress code policy that governs the attendance center and that
is necessary to maintain the orderly process of a school
function or prevent endangerment of student health or safety,

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consistent with the policies and rules of the Board of
Education. A school uniform or dress code policy adopted by a
local school council: (i) shall not be applied in such manner
as to discipline or deny attendance to a transfer student or
any other student for noncompliance with that policy during
such period of time as is reasonably necessary to enable the
student to acquire a school uniform or otherwise comply with
the dress code policy that is in effect at the attendance
center into which the student's enrollment is transferred; and
(ii) shall include criteria and procedures under which the
local school council will accommodate the needs of or otherwise
provide appropriate resources to assist a student from an
indigent family in complying with an applicable school uniform
or dress code policy. A student whose parents or legal
guardians object on religious grounds to the student's
compliance with an applicable school uniform or dress code
policy shall not be required to comply with that policy if the
student's parents or legal guardians present to the local
school council a signed statement of objection detailing the
grounds for the objection.
15. All decisions made and actions taken by the local
school council in the exercise of its powers and duties shall
comply with State and federal laws, all applicable collective
bargaining agreements, court orders and rules properly
promulgated by the Board.
15a. To grant, in accordance with board rules and policies,

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the use of assembly halls and classrooms when not otherwise
needed, including lighting, heat, and attendants, for public
lectures, concerts, and other educational and social
activities.
15b. To approve, in accordance with board rules and
policies, receipts and expenditures for all internal accounts
of the attendance center, and to approve all fund-raising
activities by nonschool organizations that use the school
building.
16. (Blank).
17. Names and addresses of local school council members
shall be a matter of public record.
(Source: P.A. 96-1403, eff. 7-29-10.)
(105 ILCS 5/34-8.4)
Sec. 34-8.4. Intervention. The Chicago Schools Academic
Accountability Council may recommend to the Chicago School
Reform Board of Trustees that any school placed on remediation
or probation under Section 34-8.3 or schools that for the 3
consecutive school years of 1992-1993, 1993-1994, and
1994-1995 have met the State Board of Education's category of
"does not meet expectations" be made subject to intervention
under this Section 34-8.4. In addition to any powers created
under this Section, the Trustees shall have all powers created
under Section 34-8.3 with respect to schools subjected to
intervention.

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Prior to subjecting a school to intervention, the Trustees
shall conduct a public hearing and make findings of facts
concerning the recommendation of the Chicago Schools Academic
Accountability Council and the factors causing the failure of
the school to adequately perform. The Trustees shall afford an
opportunity at the hearing for interested persons to comment
about the intervention recommendation. After the hearing has
been held and completion of findings of fact, the Trustees
shall make a determination whether to subject the school to
intervention.
If the Trustees determine that a school shall be subject to
intervention under this Section, the Trustees shall develop an
intervention implementation plan and shall cause a performance
evaluation to be made of each employee at the school. Upon
consideration of such evaluations, and consistent with the
intervention implementation plan, the Trustees may reassign,
layoff, or dismiss any employees at the attendance center,
notwithstanding the provisions of Sections 24A-5 and 34-85.
The chief educational officer shall appoint a principal for
the school and shall set the terms and conditions of the
principal's contract, which in no case may be longer than 2
years. The principal shall select all teachers and
non-certified personnel for the school as may be necessary. Any
provision of Section 34-8.1 that conflicts with this Section
shall not apply to a school subjected to intervention under
this Section.

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If pursuant to this Section, the general superintendent,
with the approval of the board, orders new local school council
elections, the general superintendent shall carry out the
responsibilities of the local school council for a school
subject to intervention until the new local school council
members are elected and trained.
Each school year, 5% of the supplemental general State aid
or supplemental grant funds distributed to a school subject to
intervention during that school year under subsection
5(i)(1)(a) of part A of Section 18-8, or subsection (H) of
Section 18-8.05, or subsection (h) of Section 18-8.15 shall be
used for employee performance incentives. The Trustees shall
prepare a report evaluating the results of any interventions
undertaken pursuant to this Section and shall make
recommendations concerning implementation of special programs
for dealing with underperforming schools on an ongoing basis.
This report shall be submitted to the State Superintendent of
Education and Mayor of the City of Chicago by January 1, 1999.
(Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97;
90-548, eff. 1-1-98.)
(105 ILCS 5/34-18) (from Ch. 122, par. 34-18)
Sec. 34-18. Powers of the board. The board shall exercise
general supervision and jurisdiction over the public education
and the public school system of the city, and, except as
otherwise provided by this Article, shall have power:

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1. To make suitable provision for the establishment and
maintenance throughout the year or for such portion thereof
as it may direct, not less than 9 months, of schools of all
grades and kinds, including normal schools, high schools,
night schools, schools for defectives and delinquents,
parental and truant schools, schools for the blind, the
deaf and the physically disabled, schools or classes in
manual training, constructural and vocational teaching,
domestic arts and physical culture, vocation and extension
schools and lecture courses, and all other educational
courses and facilities, including establishing, equipping,
maintaining and operating playgrounds and recreational
programs, when such programs are conducted in, adjacent to,
or connected with any public school under the general
supervision and jurisdiction of the board; provided that
the calendar for the school term and any changes must be
submitted to and approved by the State Board of Education
before the calendar or changes may take effect, and
provided that in allocating funds from year to year for the
operation of all attendance centers within the district,
the board shall ensure that supplemental general State aid
or supplemental grant funds are allocated and applied in
accordance with Section 18-8, or 18-8.05, or 18-8.15. To
admit to such schools without charge foreign exchange
students who are participants in an organized exchange
student program which is authorized by the board. The board

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shall permit all students to enroll in apprenticeship
programs in trade schools operated by the board, whether
those programs are union-sponsored or not. No student shall
be refused admission into or be excluded from any course of
instruction offered in the common schools by reason of that
student's sex. No student shall be denied equal access to
physical education and interscholastic athletic programs
supported from school district funds or denied
participation in comparable physical education and
athletic programs solely by reason of the student's sex.
Equal access to programs supported from school district
funds and comparable programs will be defined in rules
promulgated by the State Board of Education in consultation
with the Illinois High School Association. Notwithstanding
any other provision of this Article, neither the board of
education nor any local school council or other school
official shall recommend that children with disabilities
be placed into regular education classrooms unless those
children with disabilities are provided with supplementary
services to assist them so that they benefit from the
regular classroom instruction and are included on the
teacher's regular education class register;
2. To furnish lunches to pupils, to make a reasonable
charge therefor, and to use school funds for the payment of
such expenses as the board may determine are necessary in
conducting the school lunch program;

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3. To co-operate with the circuit court;
4. To make arrangements with the public or quasi-public
libraries and museums for the use of their facilities by
teachers and pupils of the public schools;
5. To employ dentists and prescribe their duties for
the purpose of treating the pupils in the schools, but
accepting such treatment shall be optional with parents or
guardians;
6. To grant the use of assembly halls and classrooms
when not otherwise needed, including light, heat, and
attendants, for free public lectures, concerts, and other
educational and social interests, free of charge, under
such provisions and control as the principal of the
affected attendance center may prescribe;
7. To apportion the pupils to the several schools;
provided that no pupil shall be excluded from or segregated
in any such school on account of his color, race, sex, or
nationality. The board shall take into consideration the
prevention of segregation and the elimination of
separation of children in public schools because of color,
race, sex, or nationality. Except that children may be
committed to or attend parental and social adjustment
schools established and maintained either for boys or girls
only. All records pertaining to the creation, alteration or
revision of attendance areas shall be open to the public.
Nothing herein shall limit the board's authority to

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establish multi-area attendance centers or other student
assignment systems for desegregation purposes or
otherwise, and to apportion the pupils to the several
schools. Furthermore, beginning in school year 1994-95,
pursuant to a board plan adopted by October 1, 1993, the
board shall offer, commencing on a phased-in basis, the
opportunity for families within the school district to
apply for enrollment of their children in any attendance
center within the school district which does not have
selective admission requirements approved by the board.
The appropriate geographical area in which such open
enrollment may be exercised shall be determined by the
board of education. Such children may be admitted to any
such attendance center on a space available basis after all
children residing within such attendance center's area
have been accommodated. If the number of applicants from
outside the attendance area exceed the space available,
then successful applicants shall be selected by lottery.
The board of education's open enrollment plan must include
provisions that allow low income students to have access to
transportation needed to exercise school choice. Open
enrollment shall be in compliance with the provisions of
the Consent Decree and Desegregation Plan cited in Section
34-1.01;
8. To approve programs and policies for providing
transportation services to students. Nothing herein shall

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be construed to permit or empower the State Board of
Education to order, mandate, or require busing or other
transportation of pupils for the purpose of achieving
racial balance in any school;
9. Subject to the limitations in this Article, to
establish and approve system-wide curriculum objectives
and standards, including graduation standards, which
reflect the multi-cultural diversity in the city and are
consistent with State law, provided that for all purposes
of this Article courses or proficiency in American Sign
Language shall be deemed to constitute courses or
proficiency in a foreign language; and to employ principals
and teachers, appointed as provided in this Article, and
fix their compensation. The board shall prepare such
reports related to minimal competency testing as may be
requested by the State Board of Education, and in addition
shall monitor and approve special education and bilingual
education programs and policies within the district to
assure that appropriate services are provided in
accordance with applicable State and federal laws to
children requiring services and education in those areas;
10. To employ non-teaching personnel or utilize
volunteer personnel for: (i) non-teaching duties not
requiring instructional judgment or evaluation of pupils,
including library duties; and (ii) supervising study
halls, long distance teaching reception areas used

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incident to instructional programs transmitted by
electronic media such as computers, video, and audio,
detention and discipline areas, and school-sponsored
extracurricular activities. The board may further utilize
volunteer non-certificated personnel or employ
non-certificated personnel to assist in the instruction of
pupils under the immediate supervision of a teacher holding
a valid certificate, directly engaged in teaching subject
matter or conducting activities; provided that the teacher
shall be continuously aware of the non-certificated
persons' activities and shall be able to control or modify
them. The general superintendent shall determine
qualifications of such personnel and shall prescribe rules
for determining the duties and activities to be assigned to
such personnel;
10.5. To utilize volunteer personnel from a regional
School Crisis Assistance Team (S.C.A.T.), created as part
of the Safe to Learn Program established pursuant to
Section 25 of the Illinois Violence Prevention Act of 1995,
to provide assistance to schools in times of violence or
other traumatic incidents within a school community by
providing crisis intervention services to lessen the
effects of emotional trauma on individuals and the
community; the School Crisis Assistance Team Steering
Committee shall determine the qualifications for
volunteers;

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11. To provide television studio facilities in not to
exceed one school building and to provide programs for
educational purposes, provided, however, that the board
shall not construct, acquire, operate, or maintain a
television transmitter; to grant the use of its studio
facilities to a licensed television station located in the
school district; and to maintain and operate not to exceed
one school radio transmitting station and provide programs
for educational purposes;
12. To offer, if deemed appropriate, outdoor education
courses, including field trips within the State of
Illinois, or adjacent states, and to use school educational
funds for the expense of the said outdoor educational
programs, whether within the school district or not;
13. During that period of the calendar year not
embraced within the regular school term, to provide and
conduct courses in subject matters normally embraced in the
program of the schools during the regular school term and
to give regular school credit for satisfactory completion
by the student of such courses as may be approved for
credit by the State Board of Education;
14. To insure against any loss or liability of the
board, the former School Board Nominating Commission,
Local School Councils, the Chicago Schools Academic
Accountability Council, or the former Subdistrict Councils
or of any member, officer, agent or employee thereof,

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resulting from alleged violations of civil rights arising
from incidents occurring on or after September 5, 1967 or
from the wrongful or negligent act or omission of any such
person whether occurring within or without the school
premises, provided the officer, agent or employee was, at
the time of the alleged violation of civil rights or
wrongful act or omission, acting within the scope of his
employment or under direction of the board, the former
School Board Nominating Commission, the Chicago Schools
Academic Accountability Council, Local School Councils, or
the former Subdistrict Councils; and to provide for or
participate in insurance plans for its officers and
employees, including but not limited to retirement
annuities, medical, surgical and hospitalization benefits
in such types and amounts as may be determined by the
board; provided, however, that the board shall contract for
such insurance only with an insurance company authorized to
do business in this State. Such insurance may include
provision for employees who rely on treatment by prayer or
spiritual means alone for healing, in accordance with the
tenets and practice of a recognized religious
denomination;
15. To contract with the corporate authorities of any
municipality or the county board of any county, as the case
may be, to provide for the regulation of traffic in parking
areas of property used for school purposes, in such manner

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as is provided by Section 11-209 of The Illinois Vehicle
Code, approved September 29, 1969, as amended;
16. (a) To provide, on an equal basis, access to a high
school campus and student directory information to the
official recruiting representatives of the armed forces of
Illinois and the United States for the purposes of
informing students of the educational and career
opportunities available in the military if the board has
provided such access to persons or groups whose purpose is
to acquaint students with educational or occupational
opportunities available to them. The board is not required
to give greater notice regarding the right of access to
recruiting representatives than is given to other persons
and groups. In this paragraph 16, "directory information"
means a high school student's name, address, and telephone
number.
(b) If a student or his or her parent or guardian
submits a signed, written request to the high school before
the end of the student's sophomore year (or if the student
is a transfer student, by another time set by the high
school) that indicates that the student or his or her
parent or guardian does not want the student's directory
information to be provided to official recruiting
representatives under subsection (a) of this Section, the
high school may not provide access to the student's
directory information to these recruiting representatives.

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The high school shall notify its students and their parents
or guardians of the provisions of this subsection (b).
(c) A high school may require official recruiting
representatives of the armed forces of Illinois and the
United States to pay a fee for copying and mailing a
student's directory information in an amount that is not
more than the actual costs incurred by the high school.
(d) Information received by an official recruiting
representative under this Section may be used only to
provide information to students concerning educational and
career opportunities available in the military and may not
be released to a person who is not involved in recruiting
students for the armed forces of Illinois or the United
States;
17. (a) To sell or market any computer program
developed by an employee of the school district, provided
that such employee developed the computer program as a
direct result of his or her duties with the school district
or through the utilization of the school district resources
or facilities. The employee who developed the computer
program shall be entitled to share in the proceeds of such
sale or marketing of the computer program. The distribution
of such proceeds between the employee and the school
district shall be as agreed upon by the employee and the
school district, except that neither the employee nor the
school district may receive more than 90% of such proceeds.

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The negotiation for an employee who is represented by an
exclusive bargaining representative may be conducted by
such bargaining representative at the employee's request.
(b) For the purpose of this paragraph 17:
(1) "Computer" means an internally programmed,
general purpose digital device capable of
automatically accepting data, processing data and
supplying the results of the operation.
(2) "Computer program" means a series of coded
instructions or statements in a form acceptable to a
computer, which causes the computer to process data in
order to achieve a certain result.
(3) "Proceeds" means profits derived from
marketing or sale of a product after deducting the
expenses of developing and marketing such product;
18. To delegate to the general superintendent of
schools, by resolution, the authority to approve contracts
and expenditures in amounts of $10,000 or less;
19. Upon the written request of an employee, to
withhold from the compensation of that employee any dues,
payments or contributions payable by such employee to any
labor organization as defined in the Illinois Educational
Labor Relations Act. Under such arrangement, an amount
shall be withheld from each regular payroll period which is
equal to the pro rata share of the annual dues plus any
payments or contributions, and the board shall transmit

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such withholdings to the specified labor organization
within 10 working days from the time of the withholding;
19a. Upon receipt of notice from the comptroller of a
municipality with a population of 500,000 or more, a county
with a population of 3,000,000 or more, the Cook County
Forest Preserve District, the Chicago Park District, the
Metropolitan Water Reclamation District, the Chicago
Transit Authority, or a housing authority of a municipality
with a population of 500,000 or more that a debt is due and
owing the municipality, the county, the Cook County Forest
Preserve District, the Chicago Park District, the
Metropolitan Water Reclamation District, the Chicago
Transit Authority, or the housing authority by an employee
of the Chicago Board of Education, to withhold, from the
compensation of that employee, the amount of the debt that
is due and owing and pay the amount withheld to the
municipality, the county, the Cook County Forest Preserve
District, the Chicago Park District, the Metropolitan
Water Reclamation District, the Chicago Transit Authority,
or the housing authority; provided, however, that the
amount deducted from any one salary or wage payment shall
not exceed 25% of the net amount of the payment. Before the
Board deducts any amount from any salary or wage of an
employee under this paragraph, the municipality, the
county, the Cook County Forest Preserve District, the
Chicago Park District, the Metropolitan Water Reclamation

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District, the Chicago Transit Authority, or the housing
authority shall certify that (i) the employee has been
afforded an opportunity for a hearing to dispute the debt
that is due and owing the municipality, the county, the
Cook County Forest Preserve District, the Chicago Park
District, the Metropolitan Water Reclamation District, the
Chicago Transit Authority, or the housing authority and
(ii) the employee has received notice of a wage deduction
order and has been afforded an opportunity for a hearing to
object to the order. For purposes of this paragraph, "net
amount" means that part of the salary or wage payment
remaining after the deduction of any amounts required by
law to be deducted and "debt due and owing" means (i) a
specified sum of money owed to the municipality, the
county, the Cook County Forest Preserve District, the
Chicago Park District, the Metropolitan Water Reclamation
District, the Chicago Transit Authority, or the housing
authority for services, work, or goods, after the period
granted for payment has expired, or (ii) a specified sum of
money owed to the municipality, the county, the Cook County
Forest Preserve District, the Chicago Park District, the
Metropolitan Water Reclamation District, the Chicago
Transit Authority, or the housing authority pursuant to a
court order or order of an administrative hearing officer
after the exhaustion of, or the failure to exhaust,
judicial review;

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20. The board is encouraged to employ a sufficient
number of certified school counselors to maintain a
student/counselor ratio of 250 to 1 by July 1, 1990. Each
counselor shall spend at least 75% of his work time in
direct contact with students and shall maintain a record of
such time;
21. To make available to students vocational and career
counseling and to establish 5 special career counseling
days for students and parents. On these days
representatives of local businesses and industries shall
be invited to the school campus and shall inform students
of career opportunities available to them in the various
businesses and industries. Special consideration shall be
given to counseling minority students as to career
opportunities available to them in various fields. For the
purposes of this paragraph, minority student means a person
who is any of the following:
(a) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South
America, including Central America, and who maintains
tribal affiliation or community attachment).
(b) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or the
Indian subcontinent, including, but not limited to,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam).

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(c) Black or African American (a person having origins
in any of the black racial groups of Africa). Terms such as
"Haitian" or "Negro" can be used in addition to "Black or
African American".
(d) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).
(e) Native Hawaiian or Other Pacific Islander (a person
having origins in any of the original peoples of Hawaii,
Guam, Samoa, or other Pacific Islands).
Counseling days shall not be in lieu of regular school
days;
22. To report to the State Board of Education the
annual student dropout rate and number of students who
graduate from, transfer from or otherwise leave bilingual
programs;
23. Except as otherwise provided in the Abused and
Neglected Child Reporting Act or other applicable State or
federal law, to permit school officials to withhold, from
any person, information on the whereabouts of any child
removed from school premises when the child has been taken
into protective custody as a victim of suspected child
abuse. School officials shall direct such person to the
Department of Children and Family Services, or to the local
law enforcement agency if appropriate;
24. To develop a policy, based on the current state of

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existing school facilities, projected enrollment and
efficient utilization of available resources, for capital
improvement of schools and school buildings within the
district, addressing in that policy both the relative
priority for major repairs, renovations and additions to
school facilities, and the advisability or necessity of
building new school facilities or closing existing schools
to meet current or projected demographic patterns within
the district;
25. To make available to the students in every high
school attendance center the ability to take all courses
necessary to comply with the Board of Higher Education's
college entrance criteria effective in 1993;
26. To encourage mid-career changes into the teaching
profession, whereby qualified professionals become
certified teachers, by allowing credit for professional
employment in related fields when determining point of
entry on teacher pay scale;
27. To provide or contract out training programs for
administrative personnel and principals with revised or
expanded duties pursuant to this Act in order to assure
they have the knowledge and skills to perform their duties;
28. To establish a fund for the prioritized special
needs programs, and to allocate such funds and other lump
sum amounts to each attendance center in a manner
consistent with the provisions of part 4 of Section 34-2.3.

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Nothing in this paragraph shall be construed to require any
additional appropriations of State funds for this purpose;
29. (Blank);
30. Notwithstanding any other provision of this Act or
any other law to the contrary, to contract with third
parties for services otherwise performed by employees,
including those in a bargaining unit, and to layoff those
employees upon 14 days written notice to the affected
employees. Those contracts may be for a period not to
exceed 5 years and may be awarded on a system-wide basis.
The board may not operate more than 30 contract schools,
provided that the board may operate an additional 5
contract turnaround schools pursuant to item (5.5) of
subsection (d) of Section 34-8.3 of this Code;
31. To promulgate rules establishing procedures
governing the layoff or reduction in force of employees and
the recall of such employees, including, but not limited
to, criteria for such layoffs, reductions in force or
recall rights of such employees and the weight to be given
to any particular criterion. Such criteria shall take into
account factors including, but not be limited to,
qualifications, certifications, experience, performance
ratings or evaluations, and any other factors relating to
an employee's job performance;
32. To develop a policy to prevent nepotism in the
hiring of personnel or the selection of contractors;

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33. To enter into a partnership agreement, as required
by Section 34-3.5 of this Code, and, notwithstanding any
other provision of law to the contrary, to promulgate
policies, enter into contracts, and take any other action
necessary to accomplish the objectives and implement the
requirements of that agreement; and
34. To establish a Labor Management Council to the
board comprised of representatives of the board, the chief
executive officer, and those labor organizations that are
the exclusive representatives of employees of the board and
to promulgate policies and procedures for the operation of
the Council.
The specifications of the powers herein granted are not to
be construed as exclusive but the board shall also exercise all
other powers that they may be requisite or proper for the
maintenance and the development of a public school system, not
inconsistent with the other provisions of this Article or
provisions of this Code which apply to all school districts.
In addition to the powers herein granted and authorized to
be exercised by the board, it shall be the duty of the board to
review or to direct independent reviews of special education
expenditures and services. The board shall file a report of
such review with the General Assembly on or before May 1, 1990.
(Source: P.A. 96-105, eff. 7-30-09; 97-227, eff. 1-1-12;
97-396, eff. 1-1-12; 97-813, eff. 7-13-12.)

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(105 ILCS 5/34-18.30)
Sec. 34-18.30. Dependents of military personnel; no
tuition charge. If, at the time of enrollment, a dependent of
United States military personnel is housed in temporary housing
located outside of the school district, but will be living
within the district within 60 days after the time of initial
enrollment, the dependent must be allowed to enroll, subject to
the requirements of this Section, and must not be charged
tuition. Any United States military personnel attempting to
enroll a dependent under this Section shall provide proof that
the dependent will be living within the district within 60 days
after the time of initial enrollment. Proof of residency may
include, but is not limited to, postmarked mail addressed to
the military personnel and sent to an address located within
the district, a lease agreement for occupancy of a residence
located within the district, or proof of ownership of a
residence located within the district. Non-resident dependents
of United States military personnel attending school on a
tuition-free basis may be counted for the purposes of
determining the apportionment of State aid provided under
Section 18-8.05 or 18-8.15 of this Code.
(Source: P.A. 95-331, eff. 8-21-07.)
(105 ILCS 5/34-43.1) (from Ch. 122, par. 34-43.1)
Sec. 34-43.1. (A) Limitation of noninstructional costs. It
is the purpose of this Section to establish for the Board of

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Education and the general superintendent of schools
requirements and standards which maximize the proportion of
school district resources in direct support of educational,
program, and building maintenance and safety services for the
pupils of the district, and which correspondingly minimize the
amount and proportion of such resources associated with
centralized administration, administrative support services,
and other noninstructional services.
For the 1989-90 school year and for all subsequent school
years, the Board of Education shall undertake budgetary and
expenditure control actions which limit the administrative
expenditures of the Board of Education to levels, as provided
for in this Section, which represent an average of the
administrative expenses of all school districts in this State
not subject to Article 34.
(B) Certification of expenses by the State Superintendent
of Education. The State Superintendent of Education shall
annually certify, on or before May 1, to the Board of Education
and the School Finance Authority, for the applicable school
year, the following information:
(1) the annual expenditures of all school districts of
the State not subject to Article 34 properly attributable
to expenditure functions defined by the rules and
regulations of the State Board of Education as: 2210
(Improvement of Instructional Services); 2300 (Support
Services - General Administration) excluding, however,

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2320 (Executive Administrative Services); 2490 (Other
Support Services - School Administration); 2500 (Support
Services - Business); 2600 (Support Services - Central);
(2) the total annual expenditures of all school
districts not subject to Article 34 attributable to the
Education Fund, the Operations, Building and Maintenance
Fund, the Transportation Fund and the Illinois Municipal
Retirement Fund of the several districts, as defined by the
rules and regulations of the State Board of Education; and
(3) a ratio, to be called the statewide average of
administrative expenditures, derived by dividing the
expenditures certified pursuant to paragraph (B)(1) by the
expenditures certified pursuant to paragraph (B)(2).
For purposes of the annual certification of expenditures
and ratios required by this Section, the "applicable year" of
certification shall initially be the 1986-87 school year and,
in sequent years, each succeeding school year.
The State Superintendent of Education shall consult with
the Board of Education to ascertain whether particular
expenditure items allocable to the administrative functions
enumerated in paragraph (B)(1) are appropriately or
necessarily higher in the applicable school district than in
the rest of the State due to noncomparable factors. The State
Superintendent shall also review the relevant cost proportions
in other large urban school districts. The State Superintendent
shall also review the expenditure categories in paragraph

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(B)(1) to ascertain whether they contain school-level
expenses. If he or she finds that adjustments to the formula
are appropriate or necessary to establish a more fair and
comparable standard for administrative cost for the Board of
Education or to exclude school-level expenses, the State
Superintendent shall recommend to the School Finance Authority
rules and regulations adjusting particular subcategories in
this subsection (B) or adjusting certain costs in determining
the budget and expenditure items properly attributable to the
functions or otherwise adjust the formula.
(C) Administrative expenditure limitations. The annual
budget of the Board of Education, as adopted and implemented,
and the related annual expenditures for the school year, shall
reflect a limitation on administrative outlays as required by
the following provisions, taking into account any adjustments
established by the State Superintendent of Education: (1) the
budget and expenditures of the Board of Education for the
1989-90 school year shall reflect a ratio of administrative
expenditures to total expenditures equal to or less than the
statewide average of administrative expenditures for the
1986-87 school year as certified by the State Superintendent of
Education pursuant to paragraph (B)(3); (2) for the 1990-91
school year and for all subsequent school years, the budget and
expenditures of the Board of Education shall reflect a ratio of
administrative expenditures to total expenditures equal to or
less than the statewide average of administrative expenditures

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certified by the State Superintendent of Education for the
applicable year pursuant to paragraph (B)(3); (3) if for any
school year the budget of the Board of Education reflects a
ratio of administrative expenditures to total expenditures
which exceeds the applicable statewide average, the Board of
Education shall reduce expenditure items allocable to the
administrative functions enumerated in paragraph (B)(1) such
that the Board of Education's ratio of administrative
expenditures to total expenditures is equal to or less than the
applicable statewide average ratio.
For purposes of this Section, the ratio of administrative
expenditures to the total expenditures of the Board of
Education, as applied to the budget of the Board of Education,
shall mean: the budgeted expenditure items of the Board of
Education properly attributable to the expenditure functions
identified in paragraph (B)(1) divided by the total budgeted
expenditures of the Board of Education properly attributable to
the Board of Education funds corresponding to those funds
identified in paragraph (B)(2), exclusive of any monies
budgeted for payment to the Public School Teachers' Pension and
Retirement System, attributable to payments due from the
General Funds of the State of Illinois.
The annual expenditure of the Board of Education for 2320
(Executive Administrative Services) for the 1989-90 school
year shall be no greater than the 2320 expenditure for the
1988-89 school year. The annual expenditure of the Board of

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Education for 2320 for the 1990-91 school year and each
subsequent school year shall be no greater than the 2320
expenditure for the immediately preceding school year or the
1988-89 school year, whichever is less. This annual expenditure
limitation may be adjusted in each year in an amount not to
exceed any change effective during the applicable school year
in salary to be paid under the collective bargaining agreement
with instructional personnel to which the Board is a party and
in benefit costs either required by law or such collective
bargaining agreement.
(D) Cost control measures. In undertaking actions to
control or reduce expenditure items necessitated by the
administrative expenditure limitations of this Section, the
Board of Education shall give priority consideration to
reductions or cost controls with the least effect upon direct
services to students or instructional services for pupils, and
upon the safety and well-being of pupils, and, as applicable,
with the particular costs or functions to which the Board of
Education is higher than the statewide average.
For purposes of assuring that the cost control priorities
of this subsection (D) are met, the State Superintendent of
Education shall, with the assistance of the Board of Education,
review the cost allocation practices of the Board of Education,
and the State Superintendent of Education shall thereafter
recommend to the School Finance Authority rules and regulations
which define administrative areas which most impact upon the

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direct and instructional needs of students and upon the safety
and well-being of the pupils of the district. No position
closed shall be reopened using State or federal categorical
funds.
(E) Report of Audited Information. For the 1988-89 school
year and for all subsequent school years, the Board of
Education shall file with the State Board of Education the
Annual Financial Report and its audit, as required by the rules
of the State Board of Education. Such reports shall be filed no
later than February 15 following the end of the school year of
the Board of Education, beginning with the report to be filed
no later than February 15, 1990 for the 1988-89 school year.
As part of the required Annual Financial Report, the Board
of Education shall provide a detailed accounting of the central
level, district, bureau and department costs and personnel
included within expenditure functions included in paragraph
(B)(1). The nature and detail of the reporting required for
these functions shall be prescribed by the State Board of
Education in rules and regulations. A copy of this detailed
accounting shall also be provided annually to the School
Finance Authority and the public. This report shall contain a
reconciliation to the board of education's adopted budget for
that fiscal year, specifically delineating administrative
functions.
If the information required under this Section is not
provided by the Board of Education in a timely manner, or is

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initially or subsequently determined by the State
Superintendent of Education to be incomplete or inaccurate, the
State Superintendent shall, in writing, notify the Board of
Education of reporting deficiencies. The Board of Education
shall, within 60 days of such notice, address the reporting
deficiencies identified. If the State Superintendent of
Education does not receive satisfactory response to these
reporting deficiencies within 60 days, the next payment of
general State aid or primary State aid due the Board of
Education under Section 18-8, and all subsequent payments,
shall be withheld by the State Superintendent of Education
until the enumerated deficiencies have been addressed.
Utilizing the Annual Financial Report, the State
Superintendent of Education shall certify on or before May 1 to
the School Finance Authority the Board of Education's ratio of
administrative expenditures to total expenditures for the
1988-89 school year and for each succeeding school year. Such
certification shall indicate the extent to which the
administrative expenditure ratio of the Board of Education
conformed to the limitations required in subsection (C) of this
Section, taking into account any adjustments of the limitations
which may have been recommended by the State Superintendent of
Education to the School Finance Authority. In deriving the
administrative expenditure ratio of the Chicago Board of
Education, the State Superintendent of Education shall utilize
the definition of this ratio prescribed in subsection (C) of

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this Section, except that the actual expenditures of the Board
of Education shall be substituted for budgeted expenditure
items.
(F) Approval and adjustments to administrative expenditure
limitations. The School Finance Authority organized under
Article 34A shall monitor the Board of Education's adherence to
the requirements of this Section. As part of its responsibility
the School Finance Authority shall determine whether the Board
of Education's budget for the next school year, and the
expenditures for a prior school year, comply with the
limitation of administrative expenditures required by this
Section. The Board of Education and the State Board of
Education shall provide such information as is required by the
School Finance Authority in order for the Authority to
determine compliance with the provisions of this Section. If
the Authority determines that the budget proposed by the Board
of Education does not meet the cost control requirements of
this Section, the Board of Education shall undertake budgetary
reductions, consistent with the requirements of this Section,
to bring the proposed budget into compliance with such cost
control limitations.
If, in formulating cost control and cost reduction
alternatives, the Board of Education believes that meeting the
cost control requirements of this Section related to the budget
for the ensuing year would impair the education, safety, or
well-being of the pupils of the school district, the Board of

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Education may request that the School Finance Authority make
adjustments to the limitations required by this Section. The
Board of Education shall specify the amount, nature, and
reasons for the relief required and shall also identify cost
reductions which can be made in expenditure functions not
enumerated in paragraph (B)(1), which would serve the purposes
of this Section.
The School Finance Authority shall consult with the State
Superintendent of Education concerning the reasonableness from
an educational administration perspective of the adjustments
sought by the Board of Education. The School Finance Authority
shall provide an opportunity for the public to comment upon the
reasonableness of the Board's request. If, after such
consultation, the School Finance Authority determines that all
or a portion of the adjustments sought by the Board of
Education are reasonably appropriate or necessary, the
Authority may grant such relief from the provisions of this
Section which the Authority deems appropriate. Adjustments so
granted apply only to the specific school year for which the
request was made.
In the event that the School Finance Authority determines
that the Board of Education has failed to achieve the required
administrative expenditure limitations for a prior school
year, or if the Authority determines that the Board of
Education has not met the requirements of subsection (F), the
Authority shall make recommendations to the Board of Education

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concerning appropriate corrective actions. If the Board of
Education fails to provide adequate assurance to the Authority
that appropriate corrective actions have been or will be taken,
the Authority may, within 60 days thereafter, require the board
to adjust its current budget to correct for the prior year's
shortage or may recommend to the members of the General
Assembly and the Governor such sanctions or remedial actions as
will serve to deter any further such failures on the part of
the Board of Education.
To assist the Authority in its monitoring
responsibilities, the Board of Education shall provide such
reports and information as are from time to time required by
the Authority.
(G) Independent reviews of administrative expenditures.
The School Finance Authority may direct independent reviews of
the administrative and administrative support expenditures and
services and other non-instructional expenditure functions of
the Board of Education. The Board of Education shall afford
full cooperation to the School Finance Authority in such review
activity. The purpose of such reviews shall be to verify
specific targets for improved operating efficiencies of the
Board of Education, to identify other areas of potential
efficiencies, and to assure full and proper compliance by the
Board of Education with all requirements of this Section.
In the conduct of reviews under this subsection, the
Authority may request the assistance and consultation of the

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State Superintendent of Education with regard to questions of
efficiency and effectiveness in educational administration.
(H) Reports to Governor and General Assembly. On or before
May 1, 1991 and no less frequently than yearly thereafter, the
School Finance Authority shall provide to the Governor, the
State Board of Education, and the members of the General
Assembly an annual report, as outlined in Section 34A-606,
which includes the following information: (1) documenting the
compliance or non-compliance of the Board of Education with the
requirements of this Section; (2) summarizing the costs,
findings, and recommendations of any reviews directed by the
School Finance Authority, and the response to such
recommendations made by the Board of Education; and (3)
recommending sanctions or legislation necessary to fulfill the
intent of this Section.
(Source: P.A. 86-124; 86-1477.)
Section 950. The Educational Opportunity for Military
Children Act is amended by changing Section 25 as follows:
(105 ILCS 70/25)
(Section scheduled to be repealed on June 30, 2015)
Sec. 25. Tuition for transfer students.
(a) For purposes of this Section, "non-custodial parent"
means a person who has temporary custody of the child of active
duty military personnel and who is responsible for making

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decisions for that child.
(b) If a student who is a child of active duty military
personnel is (i) placed with a non-custodial parent and (ii) as
a result of placement, must attend a non-resident school
district, then the student must not be charged the tuition of
the school that the student attends as a result of placement
with the non-custodial parent and the student must be counted
in the calculation of average daily attendance under Section
18-8.05 or 18-8.15 of the School Code.
(Source: P.A. 96-953, eff. 6-28-10.)
Section 955. The Illinois Public Aid Code is amended by
changing Section 5-16.4 as follows:
(305 ILCS 5/5-16.4)
Sec. 5-16.4. Medical Assistance Provider Payment Fund.
(a) There is created in the State treasury the Medical
Assistance Provider Payment Fund. Interest earned by the Fund
shall be credited to the Fund.
(b) The Fund is created for the purpose of disbursing
moneys as follows:
(1) For medical services provided to recipients of aid
under Articles V, VI, and XII.
(2) For payment of administrative expenses incurred by
the Illinois Department or its agent in performing the
activities authorized by this Section.

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(3) For making transfers to the General Obligation Bond
Retirement and Interest Fund, as those transfers are
authorized in the proceedings authorizing debt under the
Medicaid Liability Liquidity Borrowing Act, but transfers
made under this paragraph (3) may not exceed the principal
amount of debt issued under that Act.
Disbursements from the Fund, other than transfers to the
General Obligation Bond Retirement and Interest Fund (which
shall be made in accordance with the provisions of the Medicaid
Liability Liquidity Borrowing Act), shall be by warrants drawn
by the State Comptroller upon receipt of vouchers duly executed
and certified by the Illinois Department.
(c) The Fund shall consist of the following:
(1) All federal matching funds received by the Illinois
Department as a result of expenditures made by the Illinois
Department that are attributable to moneys deposited into
the Fund.
(2) Proceeds from any short-term borrowing directed to
the Fund by the Governor pursuant to the Medicaid Liability
Liquidity Borrowing Act.
(3) Amounts transferred into the Fund under subsection
(d) of this Section.
(4) All other moneys received for the Fund from any
other source, including interest earned on those moneys.
(d) Beginning July 1, 1995, on the 13th and 26th days of
each month the State Comptroller and Treasurer shall transfer

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from the General Revenue Fund to the Medical Assistance
Provider Payment Fund an amount equal to 1/48th of the annual
Medical Assistance appropriation to the Department of
Healthcare and Family Services (formerly Illinois Department
of Public Aid) from the Medical Assistance Provider Payment
Fund, plus cumulative deficiencies from those prior transfers.
In addition to those transfers, the State Comptroller and
Treasurer may transfer from the General Revenue Fund to the
Medical Assistance Provider Payment Fund as much as is
necessary to pay claims pursuant to the new twice-monthly
payment schedule established in Section 5-16.5 and to avoid
interest liabilities under the State Prompt Payment Act. No
transfers made pursuant to this subsection shall interfere with
the timely payment of the general State aid or primary State
aid payment made pursuant to Section 18-11 of the School Code.
(Source: P.A. 95-331, eff. 8-21-07.)
Section 995. Savings clause. Any repeal or amendment made
by this Act shall not affect or impair any of the following:
suits pending or rights existing at the time this Act takes
effect; any grant or conveyance made or right acquired or cause
of action now existing under any Section, Article, or Act
repealed or amended by this Act; the validity of any bonds or
other obligations issued or sold and constituting valid
obligations of the issuing authority at the time this Act takes
effect; the validity of any contract; the validity of any tax

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levied under any law in effect prior to the effective date of
this Act; or any offense committed, act done, penalty,
punishment, or forfeiture incurred or any claim, right, power,
or remedy accrued under any law in effect prior to the
effective date of this Act.