96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0803


 
Introduced 2/9/2009, by Rep. Ronald A. Wait
 
SYNOPSIS AS INTRODUCED:









    




New Act






30 ILCS 105/5.719 new






35 ILCS 200/18-45





105 ILCS 5/17-11
 from Ch. 122, par. 17-11



105 ILCS 5/18-8.05









 Creates the School District Income Tax Act. Allows school districts
to tax income after referendum approval of district residents and record owners
of property in the district. Provides for additional levies,
administration and distribution of the tax, and penalties for violations.
Applies only to income earned following 120 days after certification of
the results of the referendum. Creates a credit against the tax in an amount
not to exceed $500 equal to 5% of the amounts spent by the taxpayer on monthly
rent for the taxpayer's residence. Amends the Property Tax Code to provide
for abatement of residential, farm, and small business property. Amends the
School
Code to require that school districts certify income tax levies and
amounts realized
for property tax abatement purposes and to
coordinate
the calculation of school aid with the income tax levies by adjusting the
operating tax rate accordingly. Amends the
State Finance Act to create the School District Income Tax Fund.
Effective immediately.
















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FISCAL NOTE ACT MAY APPLY


HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB0803

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1
 AN ACT concerning revenue.


2
 Be it enacted by the People of the State of Illinois,

3
represented in the General Assembly:



4
 Section 1. Short title.  This Act may be cited as the 
5
School
District Income Tax Act.




6
 Section 5. Net income tax; referendum.  The school board of 
7
any school
district may, by proper resolution, cause a 
8
proposition to authorize an
annual tax, measured as a 
9
percentage of net income, on the privilege of
earning or 
10
receiving income (i) as a resident of the district or (ii) as a

11
record owner of real
property in the district to the extent of 
12
the income derived from that real
property, to be certified
to 
13
the proper election officials, who shall submit the proposition 
14
to the
voters in accordance with the general election law;

15
provided that the rate of such tax shall be an even multiple
of 
16
eighths of a percent. When imposed, this tax shall be levied on 
17
every
individual subject to taxation under this Act.


18
 The election called for this purpose shall be governed by 
19
the general
election
law. If a majority of the votes cast on 
20
the proposition is in favor thereof,
the school board may 
21
thereafter levy the tax as authorized, or at any lesser
rate, 
22
provided such lesser rate is an even multiple of eighths of a 
23
percent.
Such tax may be levied only on income earned following 
 


 






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1
120 days after
certification
of the results of the referendum 
2
by the proper election officials.


3
 For purposes of this Act, a taxpayer's net income for a 
4
taxable year shall
be as defined in Section 202 of the Illinois 
5
Income Tax Act
for such year which is allocable to a district 
6
under
the provisions of this Act.


7
 For purposes of this Act, (i) an individual is a resident 
8
of a school
district
for a taxable year if he or she is a 
9
resident of the State, as defined in the
Illinois
Income Tax 
10
Act, and maintains his or her principal place of residence 
11
within
that
school district on the first day of that taxable 
12
year and (ii) an individual
owns real property in the district 
13
if a record owner of the property and
liable for the property 
14
taxes according to the property tax assessment book or
roll.




15
 Section 10. Additional levies; Submission to voters. The 
16
school board
of any school district may, by proper resolution, 
17
cause a proposition to
increase the annual tax rate for the tax 
18
imposed under Section 5 to be
submitted
to the voters of the 
19
district at an election in accordance with the general
election 
20
law, provided such increase results in a rate that is an even 
21
multiple
of eighths of a percent. The tax may be levied only on 
22
income earned following
120 days after certification of the 
23
results of the referendum by the proper
election officials.


24
 The election called for such purposes shall be governed by 
25
the general
election law. If a majority of the votes cast on 
 


 






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1
the proposition is in
favor thereof, the school board may 
2
thereafter, until such authority is
revoked in like manner, 
3
levy an annual tax as authorized.




4
 Section 15. Collection of tax; promulgation of rules and 
5
regulations.
On or before July 1 of each year, the school board 
6
of each district imposing
a tax under this Act shall prepare 
7
and certify the annual tax rate to the
Department of Revenue, 
8
hereinafter referred to as the Department, which rate
shall be 
9
applicable
to the taxable year of any taxpayer which includes 
10
that July 1. The tax
imposed under this Act shall be collected 
11
by and paid to the Department at the
same time
and in the same 
12
manner, and subject to the same assessment procedures,

13
penalties,
and interests, as the tax imposed by the Illinois 
14
Income Tax Act, except
that the tax imposed by this Act shall 
15
not be subject to any withholding
or estimated payment 
16
requirements of the Illinois Income Tax Act. The
Department 
17
shall forthwith pay over to the State Treasurer, ex officio,
as 
18
trustee, all monies received by it under this Act to be 
19
deposited in
the School District Income
Tax Fund, to
be held 
20
and disbursed by the Treasurer as provided in Section 20.


21
 The Department shall promulgate such rules and regulations 
22
as may be
necessary
to implement the provisions of this Act.




23
 Section 20. Distribution of tax revenue.  On or before 
24
December 1 of each
year, or the first following business day if 
 


 






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December 1 falls on a Saturday,
Sunday, or holiday, the 
2
Department shall certify to the Comptroller the
disbursement of 
3
stated sums of money to named school districts. On any
given 
4
certification date, the amount to be certified for disbursement 
5
to
each school district shall be the sum of the following:


6
 (a) The amount of tax collected by the Department under 
7
this Act from
individuals who maintained their principal places 
8
of residence or who owned
real property within the
school 
9
district on the first day of their last full taxable year ended 
10
prior
to the previous January 1, and


11
 (b) any amount of tax which would have been certified for 
12
disbursement
to the school district on a previous certification 
13
date under paragraph
(a) above except for the fact that it had 
14
not been collected by that previous
certification date; less 
15
the sum of the following:


16
 (c) any amount of tax previously certified for disbursement 
17
to that school
district but since refunded to the taxpayer, and


18
 (d) an amount equal to 2% of the sum of amounts computed in 
19
paragraphs
(a) and (b), which shall be retained by the 
20
Treasurer to cover the costs
incurred by the Department in 
21
administering and enforcing this Act.


22
 The Department at the time of each disbursement to a school 
23
district shall
prepare and certify to the Comptroller the 
24
amount so retained by the State
Treasurer to be paid into the 
25
General Revenue Fund of the State Treasury.
Within 10 days 
26
after receipt by the Comptroller of the certification of

 


 






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disbursement to the school districts and to the General Revenue 
2
Fund given
by the Department under this Act, the Comptroller 
3
shall cause the warrants
to be drawn for the respective amounts 
4
in accordance with the directions
contained in the 
5
certification.


6
 The board of any district receiving any of the 
7
disbursements provided for
in this Section may apply those to 
8
any fund from which that board is authorized
to make 
9
expenditures by law.




10
 Section 25. Willful and fraudulent acts.  Any person who is 
11
subject to
the provisions of this Act and who willfully fails 
12
to file a return, or
who willfully violates any rule or 
13
regulation of the Department for the
administration or 
14
enforcement of this Act, or who willfully attempts in
any other 
15
manner to evade or defeat any tax imposed by this Act or the 
16
payment
thereof, shall in addition to other penalties be guilty 
17
of a Class B
misdemeanor.
A prosecution for any violation of 
18
this Section may be commenced within
3 years of the commission 
19
of that act.




20
 Section 30. Corporations.  Nothing in this Act authorizes 
21
the tax imposed
on net income by school districts hereunder to 
22
be levied on any corporation
except a corporation that elects 
23
to be taxed as an individual under the
Internal Revenue Code. 
24
If, however, the income tax authorized by this Act
is imposed 
 


 






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by a school district, the rate of ad valorem property taxes 
2
levied
on the property of corporations within that district, 
3
other than corporations
electing to be taxed as individuals 
4
under the Internal Revenue Code, shall be
increased
as provided 
5
in Section 17-11 of the School Code.




6
 Section 35. Property tax abatement.


7
 (a) The extension of real property taxes for a
school 
8
district within
which the local income tax for schools 
9
authorized by this Act already has been
imposed, levied, and 
10
collected shall be abated by the county clerk
in which
the 
11
school district is located on residential real property, farm 
12
real property
defined in Section 1-60 of the Property Tax Code, 
13
and real property of a small
business as defined in Section 
14
1-75 of the Illinois Administrative Procedure
Act only in the 
15
manner
provided by this Section,
provided that (i) if any such 
16
school district is located in more than one
county the amount 
17
of real property taxes of the district to be so abated
shall be 
18
apportioned by the county clerks of those counties based upon 
19
the
ratio of the aggregate assessed value of the taxable 
20
property of the
district in each such county and (ii) prior to 
21
any abatement under this
Section the county clerk shall 
22
determine whether the amount of each tax
levied by the district 
23
for a lawful school purpose and certified for
extension is 
24
based on a rate at which the district making the certification

25
is authorized by statute or referendum to levy that tax, shall 
 


 






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disregard
any excess, and shall extend the levy of that tax in 
2
accordance with the
provisions of Section 18-45 of the Property 
3
Tax Code, subject to abatement
as provided in this Section.


4
 (b) Not later than September 1 of the first calendar year 
5
in which the
tax authorized by this Act is imposed, levied, and 
6
collected within a
school district, the Department of Revenue 
7
shall certify to the county
clerk of each county in which any 
8
part of the school district is located the
estimated amount of 
9
the
tax that would have been collected under this Act during

10
the immediately preceding calendar year in that part of the 
11
district located in
the county had this Act been in effect and 
12
had
that tax been imposed, levied, and collected within that 
13
district during
that immediately preceding calendar year at the 
14
same annual rate and for
the same period of time as that tax is 
15
imposed, levied, and collected in
the district during the 
16
calendar year in which the certification is made.


17
 (c) During the calendar year immediately succeeding the

18
calendar year in which the certification under subsection (b) 
19
is required
to be made, in extending the real property taxes

20
last levied by a school
district for
educational purposes, the 
21
county clerk shall abate that extension of the
district's levy 
22
for educational purposes on the property described in

23
subsection (a) only by an
amount equal to 100% of the
estimated 
24
amount that was certified to the county clerk by the Department

25
of Revenue under the provisions of subsection (b) during the 
26
calendar year
immediately preceding the calendar year in which 
 


 






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the extension is made. In
each subsequent calendar year, in 
2
extending the real property taxes
levied
by the school district 
3
for educational purposes during the immediately
preceding 
4
calendar year, the county clerk shall abate each such extension

5
of the district's levy for educational purposes on the property 
6
described in
subsection (a) only by
an amount equal to 100%
of 
7
the amount disbursed to the school district under Section 30 
8
during June
of the calendar year immediately preceding the 
9
calendar year in which the
extension and abatement are made.




10
 Section 40. Residential rent credit.  Each individual 
11
taxpayer residing
within a school district within which the 
12
local income tax for schools
authorized by this Act has been 
13
imposed, levied, and collected is entitled to a
credit, not to 
14
exceed $500, against the tax imposed under this Act in the

15
amount of 5% of the annual rent paid by the taxpayer during the

16
taxable year for the residence of the taxpayer. In no event 
17
shall a credit
under this Section reduce the taxpayer's 
18
liability under this Act to less than
zero.




19
 Section 900. The State Finance Act is amended by adding 
20
Section 5.719 as follows:

21
 (30 ILCS 105/5.719 new)

22
 Sec. 5.719. The School District Income Tax Fund.


 


 






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1
 Section 905. The Property Tax Code is amended by changing 
2
Section 18-45
as follows:



3
 (35 ILCS 200/18-45)

4
 Sec. 18-45. Computation of rates.  Except as provided 
5
below, each county
clerk shall estimate and determine the rate 
6
per cent upon the equalized
assessed valuation for the levy 
7
year of the property in the county's taxing
districts and 
8
special service areas, as established under Article VII of the

9
Illinois Constitution, so that the rate will produce, within 
10
the proper
divisions of that county, not less than the net 
11
amount that will be required by
the county board or certified 
12
to the county clerk according to law. Prior to
extension, the 
13
county clerk shall determine the maximum amount of tax

14
authorized to be levied by any statute. If the amount of any 
15
tax certified to
the county clerk for extension exceeds the 
16
maximum, the clerk shall extend only
the maximum allowable 
17
levy.


18
 The county clerk shall exclude from the total equalized 
19
assessed valuation,
whenever estimating and determining it 
20
under this Section and Sections 18-50
through 18-105, the 
21
equalized assessed valuation in the percentage which has
been 
22
agreed to by each taxing district, of any property or portion 
23
thereof
within an Enterprise Zone upon which an abatement of 
24
taxes was made under
Section 18-170. However, if a municipality 
25
has adopted tax increment financing
under Division 74.4 of 
 


 






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Article 11 of the Illinois Municipal Code, the county
clerk 
2
shall estimate and determine rates in accordance with Sections 
3
11-74.4-7
through 11-74.4-9 of that Act. Beginning on January 
4
1, 1998 and thereafter,
the equalized assessed value of all 
5
property for
the computation of the amount to be extended 
6
within a county with 3,000,000 or
more inhabitants shall be the 
7
sum of (i) the equalized assessed value of
such property for 
8
the
year immediately preceding the levy year as established by 
9
the assessment and
equalization process for the year 
10
immediately prior to the levy year, (ii)
the equalized assessed 
11
value of any property that qualifies as new property, as

12
defined in Section 18-185, or annexed property, as defined in 
13
Section 18-225,
for the current levy year, and (iii) any 
14
recovered tax increment value, as
defined in Section 18-185, 
15
for the current levy year, less the equalized
assessed value of 
16
any property that qualifies as disconnected property, as

17
defined in Section 18-225, for the current levy year.


18
 The provisions of this Section and the authority of the 
19
county clerk under
this Section are subject to the abatement 
20
provisions of Section 35 of the
School District Income Tax Act 
21
with respect to the extension of taxes levied by
a school 
22
district on residential property, farm real property as defined 
23
in
Section 1-60, and real property of a small business as 
24
defined in Section 1-75
of the Illinois Administrative 
25
Procedure Act.


26
(Source: P.A. 90-320, eff. 1-1-98.)



 


 






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1
 Section 910. The School Code is amended by changing 
2
Sections 17-11 and
18-8.05 as follows:



3
 (105 ILCS 5/17-11) (from Ch. 122, par. 17-11)

4
 Sec. 17-11. Certificate of tax levy.  The school board of 
5
each district
shall ascertain, as near as practicable, 
6
annually, how much money must be
raised by special tax for 
7
transportation purposes if any and for
educational and for 
8
operations and maintenance purposes for the
next ensuing year. 
9
In school districts with a population of less than
500,000, 
10
these amounts shall be certified and returned to each county 
11
clerk
on or before the last Tuesday in December, annually. The

12
certificate shall be signed by the president and clerk or 
13
secretary, and
may be in the following form:


14

CERTIFICATE OF TAX LEVY


15
 We hereby certify that we require the sum of ...... 
16
dollars, to be levied
as a special tax for transportation 
17
purposes and the sum of ...... dollars
to be levied as a 
18
special tax for educational purposes, and the sum ......

19
dollars to be levied as a special tax for operations and 
20
maintenance
purposes, and the sum of ...... to be levied as a 
21
special tax for a working
cash fund, on the equalized assessed 
22
value of the taxable property of our
district, for the year 
23
(insert year).


24
 Signed on (insert date).


 


 






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1
 A ........... B ............., President


2
 C ........... D............., Clerk (Secretary)


3
 Dist. No. .........., ............ County



4
 A failure by the school board to file the certificate with 
5
the county
clerk in the time required shall not vitiate the 
6
assessment.
A district
levying a tax under the School District 
7
Income Tax Act enacted by
the
96th General Assembly shall, 
8
together with such certificate of
tax levy, also certify for 
9
property tax abatement purposes an amount equal
to the amount 
10
of revenue realized by the school district's tax on net income

11
during the previous fiscal year, which amount shall be used by 
12
the county
clerk in the manner provided by Section 35 of the 
13
School District Income Tax
Act.
This provision shall be 
14
effective for a school district beginning in the
fiscal year 
15
following the fiscal year it begins levying a net income tax.


16
(Source: P.A. 91-357, eff. 7-29-99.)





17
 (105 ILCS 5/18-8.05)


18
 Sec. 18-8.05. Basis for apportionment of general State 
19
financial aid and
supplemental general State aid to the common 
20
schools for the 1998-1999 and
subsequent school years.



21
(A) General Provisions.

22
 (1) The provisions of this Section apply to the 1998-1999 
23
and subsequent
school years. The system of general State 
 


 






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financial aid provided for in this
Section
is designed to 
2
assure that, through a combination of State financial aid and

3
required local resources, the financial support provided each 
4
pupil in Average
Daily Attendance equals or exceeds a

5
prescribed per pupil Foundation Level. This formula approach 
6
imputes a level
of per pupil Available Local Resources and 
7
provides for the basis to calculate
a per pupil level of 
8
general State financial aid that, when added to Available
Local 
9
Resources, equals or exceeds the Foundation Level. The
amount 
10
of per pupil general State financial aid for school districts, 
11
in
general, varies in inverse
relation to Available Local 
12
Resources. Per pupil amounts are based upon
each school 
13
district's Average Daily Attendance as that term is defined in 
14
this
Section.

15
 (2) In addition to general State financial aid, school 
16
districts with
specified levels or concentrations of pupils 
17
from low income households are
eligible to receive supplemental 
18
general State financial aid grants as provided
pursuant to 
19
subsection (H).
The supplemental State aid grants provided for 
20
school districts under
subsection (H) shall be appropriated for 
21
distribution to school districts as
part of the same line item 
22
in which the general State financial aid of school
districts is 
23
appropriated under this Section.

24
 (3) To receive financial assistance under this Section, 
25
school districts
are required to file claims with the State 
26
Board of Education, subject to the
following requirements:


 


 






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  (a) Any school district which fails for any given 
2
 school year to maintain
school as required by law, or to 
3
 maintain a recognized school is not
eligible to file for 
4
 such school year any claim upon the Common School
Fund. In 
5
 case of nonrecognition of one or more attendance centers in 
6
 a
school district otherwise operating recognized schools, 
7
 the claim of the
district shall be reduced in the 
8
 proportion which the Average Daily
Attendance in the 
9
 attendance center or centers bear to the Average Daily

10
 Attendance in the school district. A "recognized school" 
11
 means any
public school which meets the standards as 
12
 established for recognition
by the State Board of 
13
 Education. A school district or attendance center
not 
14
 having recognition status at the end of a school term is 
15
 entitled to
receive State aid payments due upon a legal 
16
 claim which was filed while
it was recognized.


17
  (b) School district claims filed under this Section are 
18
 subject to
Sections 18-9 and 18-12, except as otherwise 
19
 provided in this
Section.


20
  (c) If a school district operates a full year school 
21
 under Section
10-19.1, the general State aid to the school 
22
 district shall be determined
by the State Board of 
23
 Education in accordance with this Section as near as
may be 
24
 applicable.


25
  (d) (Blank).

26
 (4) Except as provided in subsections (H) and (L), the 
 


 






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1
board of any district
receiving any of the grants provided for 
2
in this Section may apply those funds
to any fund so received 
3
for which that board is authorized to make expenditures
by law.

4
 School districts are not required to exert a minimum 
5
Operating Tax Rate in
order to qualify for assistance under 
6
this Section.

7
 (5) As used in this Section the following terms, when 
8
capitalized, shall
have the meaning ascribed herein:


9
  (a) "Average Daily Attendance": A count of pupil 
10
 attendance in school,
averaged as provided for in 
11
 subsection (C) and utilized in deriving per pupil
financial 
12
 support levels.


13
  (b) "Available Local Resources": A computation of 
14
 local financial
support, calculated on the basis of Average 
15
 Daily Attendance and derived as
provided pursuant to 
16
 subsection (D).


17
  (c) "Corporate Personal Property Replacement Taxes": 
18
 Funds paid to local
school districts pursuant to "An Act in 
19
 relation to the abolition of ad valorem
personal property 
20
 tax and the replacement of revenues lost thereby, and

21
 amending and repealing certain Acts and parts of Acts in 
22
 connection therewith",
certified August 14, 1979, as 
23
 amended (Public Act 81-1st S.S.-1).


24
  (d) "Foundation Level": A prescribed level of per pupil 
25
 financial support
as provided for in subsection (B).


26
  (e) "Operating Tax Rate": All school district property 
 


 






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1
 taxes extended for
all purposes, except Bond and
Interest, 
2
 Summer School, Rent, Capital Improvement, and Vocational 
3
 Education
Building purposes.



4
(B) Foundation Level.

5
 (1) The Foundation Level is a figure established by the 
6
State representing
the minimum level of per pupil financial 
7
support that should be available to
provide for the basic 
8
education of each pupil in
Average Daily Attendance. As set 
9
forth in this Section, each school district
is assumed to exert

10
a sufficient local taxing effort such that, in combination with 
11
the aggregate
of general State
financial aid provided the 
12
district, an aggregate of State and local resources
are 
13
available to meet
the basic education needs of pupils in the 
14
district.

15
 (2) For the 1998-1999 school year, the Foundation Level of 
16
support is
$4,225. For the 1999-2000 school year, the 
17
Foundation Level of support is
$4,325. For the 2000-2001 school 
18
year, the Foundation Level of support is
$4,425. For the 
19
2001-2002 school year and 2002-2003 school year, the
Foundation 
20
Level of support is $4,560. For the 2003-2004 school year, the 
21
Foundation Level of support is $4,810. For the 2004-2005 school 
22
year, the Foundation Level of support is $4,964.
For the 
23
2005-2006 school year,
the Foundation Level of support is 
24
$5,164. For the 2006-2007 school year, the Foundation Level of 
25
support is $5,334. For the 2007-2008 school year, the 
 


 






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1
Foundation Level of support is $5,734. 

2
 (3) For the 2008-2009 school year and each school year 
3
thereafter,
the Foundation Level of support is $5,959 or such 
4
greater amount as
may be established by law by the General 
5
Assembly.



6
(C) Average Daily Attendance.

7
 (1) For purposes of calculating general State aid pursuant 
8
to subsection
(E), an Average Daily Attendance figure shall be 
9
utilized. The Average Daily
Attendance figure for formula

10
calculation purposes shall be the monthly average of the actual 
11
number of
pupils in attendance of
each school district, as 
12
further averaged for the best 3 months of pupil
attendance for 
13
each
school district. In compiling the figures for the number 
14
of pupils in
attendance, school districts
and the State Board 
15
of Education shall, for purposes of general State aid
funding, 
16
conform
attendance figures to the requirements of subsection 
17
(F).

18
 (2) The Average Daily Attendance figures utilized in 
19
subsection (E) shall be
the requisite attendance data for the 
20
school year immediately preceding
the
school year for which 
21
general State aid is being calculated
or the average of the 
22
attendance data for the 3 preceding school
years, whichever is 
23
greater. The Average Daily Attendance figures
utilized in 
24
subsection (H) shall be the requisite attendance data for the

25
school year immediately preceding the school year for which 
 


 






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1
general
State aid is being calculated.



2
(D) Available Local Resources.

3
 (1) For purposes of calculating general State aid pursuant 
4
to subsection
(E), a representation of Available Local 
5
Resources per pupil, as that term is
defined and determined in 
6
this subsection, shall be utilized. Available Local
Resources 
7
per pupil shall include a calculated
dollar amount representing 
8
local school district revenues from local property
taxes and 
9
from
Corporate Personal Property Replacement Taxes, expressed 
10
on the basis of pupils
in Average
Daily Attendance. Calculation 
11
of Available Local Resources shall exclude any tax amnesty 
12
funds received as a result of Public Act 93-26.

13
 (2) In determining a school district's revenue from local 
14
property taxes,
the State Board of Education shall utilize the 
15
equalized assessed valuation of
all taxable property of each 
16
school
district as of September 30 of the previous year. The 
17
equalized assessed
valuation utilized shall
be obtained and 
18
determined as provided in subsection (G).

19
 (3) For school districts maintaining grades kindergarten 
20
through 12, local
property tax
revenues per pupil shall be 
21
calculated as the product of the applicable
equalized assessed

22
valuation for the district multiplied by 3.00%, and divided by 
23
the district's
Average Daily
Attendance figure. For school 
24
districts maintaining grades kindergarten
through 8, local

25
property tax revenues per pupil shall be calculated as the 
 


 






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1
product of the
applicable equalized
assessed valuation for the 
2
district multiplied by 2.30%, and divided by the
district's 
3
Average
Daily Attendance figure. For school districts 
4
maintaining grades 9 through 12,
local property
tax revenues 
5
per pupil shall be the applicable equalized assessed valuation 
6
of
the district
multiplied by 1.05%, and divided by the 
7
district's Average Daily
Attendance
figure.

8
 For partial elementary unit districts created pursuant to 
9
Article 11E of this Code, local property tax revenues per pupil 
10
shall be calculated as the product of the equalized assessed 
11
valuation for property within the partial elementary unit 
12
district for elementary purposes, as defined in Article 11E of 
13
this Code, multiplied by 2.06% and divided by the district's 
14
Average Daily Attendance figure, plus the product of the 
15
equalized assessed valuation for property within the partial 
16
elementary unit district for high school purposes, as defined 
17
in Article 11E of this Code, multiplied by 0.94% and divided by 
18
the district's Average Daily Attendance figure.

19
 (4) The Corporate Personal Property Replacement Taxes paid 
20
to each school
district during the calendar year 2 years before 
21
the calendar year in which a
school year begins, divided by the 
22
Average Daily Attendance figure for that
district, shall be 
23
added to the local property tax revenues per pupil as
derived 
24
by the application of the immediately preceding paragraph (3). 
25
The sum
of these per pupil figures for each school district 
26
shall constitute Available
Local Resources as that term is 
 


 






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1
utilized in subsection (E) in the calculation
of general State 
2
aid.



3
(E) Computation of General State Aid.

4
 (1) For each school year, the amount of general State aid 
5
allotted to a
school district shall be computed by the State 
6
Board of Education as provided
in this subsection.

7
 (2) For any school district for which Available Local 
8
Resources per pupil
is less than the product of 0.93 times the 
9
Foundation Level, general State aid
for that district shall be 
10
calculated as an amount equal to the Foundation
Level minus 
11
Available Local Resources, multiplied by the Average Daily

12
Attendance of the school district.

13
 (3) For any school district for which Available Local 
14
Resources per pupil
is equal to or greater than the product of 
15
0.93 times the Foundation Level and
less than the product of 
16
1.75 times the Foundation Level, the general State aid
per 
17
pupil shall be a decimal proportion of the Foundation Level 
18
derived using a
linear algorithm. Under this linear algorithm, 
19
the calculated general State
aid per pupil shall decline in 
20
direct linear fashion from 0.07 times the
Foundation Level for 
21
a school district with Available Local Resources equal to
the 
22
product of 0.93 times the Foundation Level, to 0.05 times the 
23
Foundation
Level for a school district with Available Local 
24
Resources equal to the product
of 1.75 times the Foundation 
25
Level. The allocation of general
State aid for school districts 
 


 






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1
subject to this paragraph 3 shall be the
calculated general 
2
State aid
per pupil figure multiplied by the Average Daily 
3
Attendance of the school
district.

4
 (4) For any school district for which Available Local 
5
Resources per pupil
equals or exceeds the product of 1.75 times 
6
the Foundation Level, the general
State aid for the school 
7
district shall be calculated as the product of $218
multiplied 
8
by the Average Daily Attendance of the school
district.

9
 (5) The amount of general State aid allocated to a school 
10
district for
the 1999-2000 school year meeting the requirements 
11
set forth in paragraph (4)
of subsection
(G) shall be increased 
12
by an amount equal to the general State aid that
would have 
13
been received by the district for the 1998-1999 school year by

14
utilizing the Extension Limitation Equalized Assessed 
15
Valuation as calculated
in paragraph (4) of subsection (G) less 
16
the general State aid allotted for the
1998-1999
school year. 
17
This amount shall be deemed a one time increase, and shall not

18
affect any future general State aid allocations.

19
 (6) The operating tax rate of a district levying a net 
20
income tax under
the School District Income Tax Act enacted by 
21
the 96th General Assembly shall
be increased, for the 
22
calculation of aid under this Section, by a rate which
when 
23
applied to the equalized assessed valuation of the district 
24
would yield an
amount equal to the revenue received by the 
25
district from its income tax during
the current fiscal year. 


 


 






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1
(F) Compilation of Average Daily Attendance.

2
 (1) Each school district shall, by July 1 of each year, 
3
submit to the State
Board of Education, on forms prescribed by 
4
the State Board of Education,
attendance figures for the school 
5
year that began in the preceding calendar
year. The attendance 
6
information so transmitted shall identify the average
daily 
7
attendance figures for each month of the school year. Beginning 
8
with
the general State aid claim form for the 2002-2003 school

9
year, districts shall calculate Average Daily Attendance as 
10
provided in
subdivisions (a), (b), and (c) of this paragraph 
11
(1).


12
  (a) In districts that do not hold year-round classes,

13
 days of attendance in August shall be added to the month of 
14
 September and any
days of attendance in June shall be added 
15
 to the month of May.


16
  (b) In districts in which all buildings hold year-round 
17
 classes,
days of attendance in July and August shall be 
18
 added to the month
of September and any days of attendance 
19
 in June shall be added to
the month of May.


20
  (c) In districts in which some buildings, but not all, 
21
 hold
year-round classes, for the non-year-round buildings, 
22
 days of
attendance in August shall be added to the month of 
23
 September
and any days of attendance in June shall be added 
24
 to the month of
May. The average daily attendance for the 
25
 year-round buildings
shall be computed as provided in 
26
 subdivision (b) of this paragraph
(1). To calculate the 
 


 






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1
 Average Daily Attendance for the district, the
average 
2
 daily attendance for the year-round buildings shall be

3
 multiplied by the days in session for the non-year-round 
4
 buildings
for each month and added to the monthly 
5
 attendance of the
non-year-round buildings.

6
 Except as otherwise provided in this Section, days of

7
attendance by pupils shall be counted only for sessions of not 
8
less than
5 clock hours of school work per day under direct 
9
supervision of: (i)
teachers, or (ii) non-teaching personnel or 
10
volunteer personnel when engaging
in non-teaching duties and 
11
supervising in those instances specified in
subsection (a) of 
12
Section 10-22.34 and paragraph 10 of Section 34-18, with
pupils 
13
of legal school age and in kindergarten and grades 1 through 
14
12.

15
 Days of attendance by tuition pupils shall be accredited 
16
only to the
districts that pay the tuition to a recognized 
17
school.

18
 (2) Days of attendance by pupils of less than 5 clock hours 
19
of school
shall be subject to the following provisions in the 
20
compilation of Average
Daily Attendance.


21
  (a) Pupils regularly enrolled in a public school for 
22
 only a part of
the school day may be counted on the basis 
23
 of 1/6 day for every class hour
of instruction of 40 
24
 minutes or more attended pursuant to such enrollment,

25
 unless a pupil is
enrolled in a block-schedule format of 80 
26
 minutes or more of instruction,
in which case the pupil may 
 


 






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1
 be counted on the basis of the proportion of
minutes of 
2
 school work completed each day to the minimum number of

3
 minutes that school work is required to be held that day.


4
  (b) Days of attendance may be less than 5 clock hours 
5
 on the opening
and closing of the school term, and upon the 
6
 first day of pupil
attendance, if preceded by a day or days 
7
 utilized as an institute or
teachers' workshop.


8
  (c) A session of 4 or more clock hours may be counted 
9
 as a day of
attendance upon certification by the regional 
10
 superintendent, and
approved by the State Superintendent 
11
 of Education to the extent that the
district has been 
12
 forced to use daily multiple sessions.


13
  (d) A session of 3 or more clock hours may be counted 
14
 as a day of
attendance (1) when the remainder of the school 
15
 day or at least
2 hours in the evening of that day is 
16
 utilized for an
in-service training program for teachers, 
17
 up to a maximum of 5 days per
school year of which a 
18
 maximum of 4 days of such 5 days may be used for

19
 parent-teacher conferences, provided a district conducts 
20
 an in-service
training program for teachers which has been 
21
 approved by the State
Superintendent of Education; or, in 
22
 lieu of 4 such days, 2 full days may
be used, in which 
23
 event each such day
may be counted as a day of attendance; 
24
 and (2) when days in
addition to
those provided in item (1) 
25
 are scheduled by a school pursuant to its school

26
 improvement plan adopted under Article 34 or its revised or 
 


 






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1
 amended school
improvement plan adopted under Article 2, 
2
 provided that (i) such sessions of
3 or more clock hours 
3
 are scheduled to occur at regular intervals, (ii) the

4
 remainder of the school days in which such sessions occur 
5
 are utilized
for in-service training programs or other 
6
 staff development activities for
teachers, and (iii) a 
7
 sufficient number of minutes of school work under the

8
 direct supervision of teachers are added to the school days 
9
 between such
regularly scheduled sessions to accumulate 
10
 not less than the number of minutes
by which such sessions 
11
 of 3 or more clock hours fall short of 5 clock hours.
Any 
12
 full days used for the purposes of this paragraph shall not 
13
 be considered
for
computing average daily attendance. Days 
14
 scheduled for in-service training
programs, staff 
15
 development activities, or parent-teacher conferences may 
16
 be
scheduled separately for different
grade levels and 
17
 different attendance centers of the district.


18
  (e) A session of not less than one clock hour of 
19
 teaching
hospitalized or homebound pupils on-site or by 
20
 telephone to the classroom may
be counted as 1/2 day of 
21
 attendance, however these pupils must receive 4 or
more 
22
 clock hours of instruction to be counted for a full day of 
23
 attendance.


24
  (f) A session of at least 4 clock hours may be counted 
25
 as a day of
attendance for first grade pupils, and pupils 
26
 in full day kindergartens,
and a session of 2 or more hours 
 


 






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1
 may be counted as 1/2 day of attendance by
pupils in 
2
 kindergartens which provide only 1/2 day of attendance.


3
  (g) For children with disabilities who are below the 
4
 age of 6 years and
who
cannot attend 2 or more clock hours 
5
 because of their disability or
immaturity, a session of not 
6
 less than one clock hour may be counted as 1/2 day
of 
7
 attendance; however for such children whose educational 
8
 needs so require
a session of 4 or more clock hours may be 
9
 counted as a full day of attendance.


10
  (h) A recognized kindergarten which provides for only 
11
 1/2 day of
attendance by each pupil shall not have more 
12
 than 1/2 day of attendance
counted in any one day. However, 
13
 kindergartens may count 2 1/2 days
of
attendance in any 5 
14
 consecutive school days. When a pupil attends such a

15
 kindergarten for 2 half days on any one school day, the 
16
 pupil shall have
the following day as a day absent from 
17
 school, unless the school district
obtains permission in 
18
 writing from the State Superintendent of Education.

19
 Attendance at kindergartens which provide for a full day of 
20
 attendance by
each pupil shall be counted the same as 
21
 attendance by first grade pupils.
Only the first year of 
22
 attendance in one kindergarten shall be counted,
except in 
23
 case of children who entered the kindergarten in their 
24
 fifth year
whose educational development requires a second 
25
 year of kindergarten as
determined under the rules and 
26
 regulations of the State Board of Education.

 


 






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1
  (i) On the days when the Prairie State Achievement 
2
 Examination is
administered under subsection (c) of 
3
 Section 2-3.64 of this Code, the day
of attendance for a 
4
 pupil whose school
day must be shortened to accommodate 
5
 required testing procedures may
be less than 5 clock hours 
6
 and shall be counted towards the 176 days of actual pupil 
7
 attendance required under Section 10-19 of this Code, 
8
 provided that a sufficient number of minutes
of school work 
9
 in excess of 5 clock hours are first completed on other 
10
 school
days to compensate for the loss of school work on 
11
 the examination days.


12
(G) Equalized Assessed Valuation Data.

13
 (1) For purposes of the calculation of Available Local 
14
Resources required
pursuant to subsection (D), the
State Board 
15
of Education shall secure from the Department of
Revenue the 
16
value as equalized or assessed by the Department of Revenue of

17
all taxable property of every school district, together with 
18
(i) the applicable
tax rate used in extending taxes for the 
19
funds of the district as of
September 30 of the previous year

20
and (ii) the limiting rate for all school
districts subject to 
21
property tax extension limitations as imposed under the

22
Property Tax Extension Limitation Law.

23
 The Department of Revenue shall add to the equalized 
24
assessed value of all
taxable
property of each school district 
25
situated entirely or partially within a county
that is or was 
 


 






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1
subject to the
provisions of Section 15-176 or 15-177 of the 
2
Property Tax Code (a)
an amount equal to the total amount by 
3
which the
homestead exemption allowed under Section 15-176 or 
4
15-177 of the Property Tax Code for
real
property situated in 
5
that school district exceeds the total amount that would
have 
6
been
allowed in that school district if the maximum reduction 
7
under Section 15-176
was
(i) $4,500 in Cook County or $3,500 in 
8
all other counties in tax year 2003 or (ii) $5,000 in all 
9
counties in tax year 2004 and thereafter and (b) an amount 
10
equal to the aggregate amount for the taxable year of all 
11
additional exemptions under Section 15-175 of the Property Tax 
12
Code for owners with a household income of $30,000 or less. The 
13
county clerk of any county that is or was subject to the 
14
provisions of Section 15-176 or 15-177 of the Property Tax Code 
15
shall
annually calculate and certify to the Department of 
16
Revenue for each school
district all
homestead exemption 
17
amounts under Section 15-176 or 15-177 of the Property Tax Code 
18
and all amounts of additional exemptions under Section 15-175 
19
of the Property Tax Code for owners with a household income of 
20
$30,000 or less. It is the intent of this paragraph that if the 
21
general homestead exemption for a parcel of property is 
22
determined under Section 15-176 or 15-177 of the Property Tax 
23
Code rather than Section 15-175, then the calculation of 
24
Available Local Resources shall not be affected by the 
25
difference, if any, between the amount of the general homestead 
26
exemption allowed for that parcel of property under Section 
 


 






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1
15-176 or 15-177 of the Property Tax Code and the amount that 
2
would have been allowed had the general homestead exemption for 
3
that parcel of property been determined under Section 15-175 of 
4
the Property Tax Code. It is further the intent of this 
5
paragraph that if additional exemptions are allowed under 
6
Section 15-175 of the Property Tax Code for owners with a 
7
household income of less than $30,000, then the calculation of 
8
Available Local Resources shall not be affected by the 
9
difference, if any, because of those additional exemptions.

10
 This equalized assessed valuation, as adjusted further by 
11
the requirements of
this subsection, shall be utilized in the 
12
calculation of Available Local
Resources.

13
 (2) The equalized assessed valuation in paragraph (1) shall 
14
be adjusted, as
applicable, in the following manner:


15
  (a) For the purposes of calculating State aid under 
16
 this Section,
with respect to any part of a school district 
17
 within a redevelopment
project area in respect to which a 
18
 municipality has adopted tax
increment allocation 
19
 financing pursuant to the Tax Increment Allocation

20
 Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11 
21
 of the Illinois
Municipal Code or the Industrial Jobs 
22
 Recovery Law, Sections 11-74.6-1 through
11-74.6-50 of the 
23
 Illinois Municipal Code, no part of the current equalized

24
 assessed valuation of real property located in any such 
25
 project area which is
attributable to an increase above the 
26
 total initial equalized assessed
valuation of such 
 


 






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1
 property shall be used as part of the equalized assessed

2
 valuation of the district, until such time as all

3
 redevelopment project costs have been paid, as provided in 
4
 Section 11-74.4-8
of the Tax Increment Allocation 
5
 Redevelopment Act or in Section 11-74.6-35 of
the 
6
 Industrial Jobs Recovery Law. For the purpose of
the 
7
 equalized assessed valuation of the
district, the total 
8
 initial equalized assessed valuation or the current

9
 equalized assessed valuation, whichever is lower, shall be 
10
 used until
such time as all redevelopment project costs 
11
 have been paid.


12
  (b) The real property equalized assessed valuation for 
13
 a school district
shall be adjusted by subtracting from the 
14
 real property
value as equalized or assessed by the 
15
 Department of Revenue for the
district an amount computed 
16
 by dividing the amount of any abatement of
taxes under 
17
 Section 18-170 of the Property Tax Code by 3.00% for a 
18
 district
maintaining grades kindergarten through 12, by 
19
 2.30% for a district
maintaining grades kindergarten 
20
 through 8, or by 1.05% for a
district
maintaining grades 9 
21
 through 12 and adjusted by an amount computed by dividing

22
 the amount of any abatement of taxes under subsection (a) 
23
 of Section 18-165 of
the Property Tax Code by the same 
24
 percentage rates for district type as
specified in this 
25
 subparagraph (b).

26
 (3) For the 1999-2000 school year and each school year 
 


 






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1
thereafter, if a
school district meets all of the criteria of 
2
this subsection (G)(3), the school
district's Available Local 
3
Resources shall be calculated under subsection (D)
using the 
4
district's Extension Limitation Equalized Assessed Valuation 
5
as
calculated under this
subsection (G)(3).

6
 For purposes of this subsection (G)(3) the following terms 
7
shall have
the following meanings:


8
  "Budget Year": The school year for which general State 
9
 aid is calculated
and
awarded under subsection (E).


10
  "Base Tax Year": The property tax levy year used to 
11
 calculate the Budget
Year
allocation of general State aid.


12
  "Preceding Tax Year": The property tax levy year 
13
 immediately preceding the
Base Tax Year.


14
  "Base Tax Year's Tax Extension": The product of the 
15
 equalized assessed
valuation utilized by the County Clerk 
16
 in the Base Tax Year multiplied by the
limiting rate as 
17
 calculated by the County Clerk and defined in the Property 
18
 Tax
Extension Limitation Law.


19
  "Preceding Tax Year's Tax Extension": The product of 
20
 the equalized assessed
valuation utilized by the County 
21
 Clerk in the Preceding Tax Year multiplied by
the Operating 
22
 Tax Rate as defined in subsection (A).


23
  "Extension Limitation Ratio": A numerical ratio, 
24
 certified by the
County Clerk, in which the numerator is 
25
 the Base Tax Year's Tax
Extension and the denominator is 
26
 the Preceding Tax Year's Tax Extension.


 


 






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1
  "Operating Tax Rate": The operating tax rate as defined 
2
 in subsection (A).

3
 If a school district is subject to property tax extension 
4
limitations as
imposed under
the Property Tax Extension 
5
Limitation Law, the State Board of Education shall
calculate 
6
the Extension
Limitation
Equalized Assessed Valuation of that 
7
district. For the 1999-2000 school
year, the
Extension 
8
Limitation Equalized Assessed Valuation of a school district as

9
calculated by the State Board of Education shall be equal to 
10
the product of the
district's 1996 Equalized Assessed Valuation 
11
and the district's Extension
Limitation Ratio. For the 
12
2000-2001 school year and each school year
thereafter,
the 
13
Extension Limitation Equalized Assessed Valuation of a school 
14
district as
calculated by the State Board of Education shall be 
15
equal to the product of
the Equalized Assessed Valuation last 
16
used in the calculation of general State
aid and the
district's 
17
Extension Limitation Ratio. If the Extension Limitation

18
Equalized
Assessed Valuation of a school district as calculated 
19
under
this subsection (G)(3) is less than the district's 
20
equalized assessed valuation
as calculated pursuant to 
21
subsections (G)(1) and (G)(2), then for purposes of
calculating 
22
the district's general State aid for the Budget Year pursuant 
23
to
subsection (E), that Extension
Limitation Equalized 
24
Assessed Valuation shall be utilized to calculate the

25
district's Available Local Resources
under subsection (D).

26
 Partial elementary unit districts created in accordance 
 


 






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1
with Article 11E of this Code shall not be eligible for the 
2
adjustment in this subsection (G)(3) until the fifth year 
3
following the effective date of the reorganization.

4
 (4) For the purposes of calculating general State aid for 
5
the 1999-2000
school year only, if a school district 
6
experienced a triennial reassessment on
the equalized assessed 
7
valuation used in calculating its general State
financial aid 
8
apportionment for the 1998-1999 school year, the State Board of

9
Education shall calculate the Extension Limitation Equalized 
10
Assessed Valuation
that would have been used to calculate the 
11
district's 1998-1999 general State
aid. This amount shall equal 
12
the product of the equalized assessed valuation
used to

13
calculate general State aid for the 1997-1998 school year and 
14
the district's
Extension Limitation Ratio. If the Extension 
15
Limitation Equalized Assessed
Valuation of the school district 
16
as calculated under this paragraph (4) is
less than the 
17
district's equalized assessed valuation utilized in 
18
calculating
the
district's 1998-1999 general State aid 
19
allocation, then for purposes of
calculating the district's 
20
general State aid pursuant to paragraph (5) of
subsection (E),

21
that Extension Limitation Equalized Assessed Valuation shall 
22
be utilized to
calculate the district's Available Local 
23
Resources.

24
 (5) For school districts having a majority of their 
25
equalized assessed
valuation in any county except Cook, DuPage, 
26
Kane, Lake, McHenry, or Will, if
the amount of general State 
 


 






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1
aid allocated to the school district for the
1999-2000 school 
2
year under the provisions of subsection (E), (H), and (J) of

3
this Section is less than the amount of general State aid 
4
allocated to the
district for the 1998-1999 school year under 
5
these subsections, then the
general
State aid of the district 
6
for the 1999-2000 school year only shall be increased
by the 
7
difference between these amounts. The total payments made under 
8
this
paragraph (5) shall not exceed $14,000,000. Claims shall 
9
be prorated if they
exceed $14,000,000.



10
(H) Supplemental General State Aid.

11
 (1) In addition to the general State aid a school district 
12
is allotted
pursuant to subsection (E), qualifying school 
13
districts shall receive a grant,
paid in conjunction with a 
14
district's payments of general State aid, for
supplemental 
15
general State aid based upon the concentration level of 
16
children
from low-income households within the school 
17
district.
Supplemental State aid grants provided for school 
18
districts under this
subsection shall be appropriated for 
19
distribution to school districts as part
of the same line item 
20
in which the general State financial aid of school
districts is 
21
appropriated under this Section.
If the appropriation in any 
22
fiscal year for general State aid and
supplemental general 
23
State aid is insufficient to pay the amounts required
under the 
24
general State aid and supplemental general State aid 
25
calculations,
then the
State Board of Education shall ensure 
 


 






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1
that
each school district receives the full amount due for 
2
general State aid
and the remainder of the appropriation shall 
3
be used
for supplemental general State aid, which the State 
4
Board of Education shall
calculate and pay to eligible 
5
districts on a prorated basis.

6
 (1.5) This paragraph (1.5) applies only to those school 
7
years
preceding the 2003-2004 school year.
For purposes of this

8
subsection (H), the term "Low-Income Concentration Level" 
9
shall be the
low-income
eligible pupil count from the most 
10
recently available federal census divided by
the Average Daily 
11
Attendance of the school district.
If, however, (i) the 
12
percentage decrease from the 2 most recent federal
censuses
in 
13
the low-income eligible pupil count of a high school district 
14
with fewer
than 400 students exceeds by 75% or more the 
15
percentage change in the total
low-income eligible pupil count 
16
of contiguous elementary school districts,
whose boundaries 
17
are coterminous with the high school district,
or (ii) a high 
18
school district within 2 counties and serving 5 elementary

19
school
districts, whose boundaries are coterminous with the 
20
high school
district, has a percentage decrease from the 2 most 
21
recent federal
censuses in the low-income eligible pupil count 
22
and there is a percentage
increase in the total low-income 
23
eligible pupil count of a majority of the
elementary school 
24
districts in excess of 50% from the 2 most recent
federal 
25
censuses, then
the
high school district's low-income eligible 
26
pupil count from the earlier federal
census
shall be the number 
 


 






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1
used as the low-income eligible pupil count for the high
school 
2
district, for purposes of this subsection (H).
The changes made 
3
to this paragraph (1) by Public Act 92-28 shall apply to

4
supplemental general State aid
grants for school years 
5
preceding the 2003-2004 school year that are paid
in fiscal 
6
year 1999 or thereafter
and to
any State aid payments made in 
7
fiscal year 1994 through fiscal year
1998 pursuant to 
8
subsection 1(n) of Section 18-8 of this Code (which was

9
repealed on July 1, 1998), and any high school district that is 
10
affected by
Public Act 92-28 is
entitled to a
recomputation of 
11
its supplemental general State aid grant or State aid
paid in 
12
any of those fiscal years. This recomputation shall not be

13
affected by any other funding.

14
 (1.10) This paragraph (1.10) applies to the 2003-2004 
15
school year
and each school year thereafter. For purposes of 
16
this subsection (H), the
term "Low-Income Concentration Level" 
17
shall, for each fiscal year, be the
low-income eligible
pupil 
18
count
as of July 1 of the immediately preceding fiscal year
(as 
19
determined by the Department of Human Services based
on the 
20
number of pupils
who are eligible for at least one of the 
21
following
low income programs: Medicaid, KidCare, TANF, or Food 
22
Stamps,
excluding pupils who are eligible for services provided 
23
by the Department
of Children and Family Services,
averaged 
24
over
the 2 immediately preceding fiscal years for fiscal year 
25
2004 and over the 3
immediately preceding fiscal years for each 
26
fiscal year thereafter)
divided by the Average Daily Attendance 
 


 






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of the school district.

2
 (2) Supplemental general State aid pursuant to this 
3
subsection (H) shall
be
provided as follows for the 1998-1999, 
4
1999-2000, and 2000-2001 school years
only:


5
  (a) For any school district with a Low Income 
6
 Concentration Level of at
least 20% and less than 35%, the 
7
 grant for any school year
shall be $800
multiplied by the 
8
 low income eligible pupil count.


9
  (b) For any school district with a Low Income 
10
 Concentration Level of at
least 35% and less than 50%, the 
11
 grant for the 1998-1999 school year shall be
$1,100 
12
 multiplied by the low income eligible pupil count.


13
  (c) For any school district with a Low Income 
14
 Concentration Level of at
least 50% and less than 60%, the 
15
 grant for the 1998-99 school year shall be
$1,500 
16
 multiplied by the low income eligible pupil count.


17
  (d) For any school district with a Low Income 
18
 Concentration Level of 60%
or more, the grant for the 
19
 1998-99 school year shall be $1,900 multiplied by
the low 
20
 income eligible pupil count.


21
  (e) For the 1999-2000 school year, the per pupil amount 
22
 specified in
subparagraphs (b), (c), and (d) immediately 
23
 above shall be increased to $1,243,
$1,600, and $2,000, 
24
 respectively.


25
  (f) For the 2000-2001 school year, the per pupil 
26
 amounts specified in
subparagraphs (b), (c), and (d) 
 


 






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1
 immediately above shall be
$1,273, $1,640, and $2,050, 
2
 respectively.

3
 (2.5) Supplemental general State aid pursuant to this 
4
subsection (H)
shall be provided as follows for the 2002-2003 
5
school year:


6
  (a) For any school district with a Low Income 
7
 Concentration Level of less
than 10%, the grant for each 
8
 school year shall be $355 multiplied by the low
income 
9
 eligible pupil count.


10
  (b) For any school district with a Low Income 
11
 Concentration
Level of at least 10% and less than 20%, the 
12
 grant for each school year shall
be $675
multiplied by the 
13
 low income eligible pupil
count.


14
  (c) For any school district with a Low Income 
15
 Concentration
Level of at least 20% and less than 35%, the 
16
 grant for each school year shall
be $1,330
multiplied by 
17
 the low income eligible pupil
count.


18
  (d) For any school district with a Low Income 
19
 Concentration
Level of at least 35% and less than 50%, the 
20
 grant for each school year shall
be $1,362
multiplied by 
21
 the low income eligible pupil
count.


22
  (e) For any school district with a Low Income 
23
 Concentration
Level of at least 50% and less than 60%, the 
24
 grant for each school year shall
be $1,680
multiplied by 
25
 the low income eligible pupil
count.


26
  (f) For any school district with a Low Income 
 


 






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1
 Concentration
Level of 60% or more, the grant for each 
2
 school year shall be $2,080
multiplied by the low income 
3
 eligible pupil count.

4
 (2.10) Except as otherwise provided, supplemental general 
5
State aid
pursuant to this subsection
(H) shall be provided as 
6
follows for the 2003-2004 school year and each
school year 
7
thereafter:


8
  (a) For any school district with a Low Income 
9
 Concentration
Level of 15% or less, the grant for each 
10
 school year
shall be $355 multiplied by the low income 
11
 eligible pupil count.


12
  (b) For any school district with a Low Income 
13
 Concentration
Level greater than 15%, the grant for each 
14
 school year shall be
$294.25 added to the product of $2,700 
15
 and the square of the Low
Income Concentration Level, all 
16
 multiplied by the low income
eligible pupil count.

17
 For the 2003-2004 school year and each school year 
18
thereafter through the 2008-2009 school year only, the grant 
19
shall be no less than the
grant
for
the 2002-2003 school year. 
20
For the 2009-2010 school year only, the grant shall
be no
less 
21
than the grant for the 2002-2003 school year multiplied by 
22
0.66. For the 2010-2011
school year only, the grant shall be no 
23
less than the grant for the 2002-2003
school year
multiplied by 
24
0.33. Notwithstanding the provisions of this paragraph to the 
25
contrary, if for any school year supplemental general State aid 
26
grants are prorated as provided in paragraph (1) of this 
 


 






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1
subsection (H), then the grants under this paragraph shall be 
2
prorated.


3
 For the 2003-2004 school year only, the grant shall be no 
4
greater
than the grant received during the 2002-2003 school 
5
year added to the
product of 0.25 multiplied by the difference 
6
between the grant amount
calculated under subsection (a) or (b) 
7
of this paragraph (2.10), whichever
is applicable, and the 
8
grant received during the 2002-2003 school year.
For the 
9
2004-2005 school year only, the grant shall be no greater than

10
the grant received during the 2002-2003 school year added to 
11
the
product of 0.50 multiplied by the difference between the 
12
grant amount
calculated under subsection (a) or (b) of this 
13
paragraph (2.10), whichever
is applicable, and the grant 
14
received during the 2002-2003 school year.
For the 2005-2006 
15
school year only, the grant shall be no greater than
the grant 
16
received during the 2002-2003 school year added to the
product 
17
of 0.75 multiplied by the difference between the grant amount

18
calculated under subsection (a) or (b) of this paragraph 
19
(2.10), whichever
is applicable, and the grant received during 
20
the 2002-2003
school year.

21
 (3) School districts with an Average Daily Attendance of 
22
more than 1,000
and less than 50,000 that qualify for 
23
supplemental general State aid pursuant
to this subsection 
24
shall submit a plan to the State Board of Education prior to

25
October 30 of each year for the use of the funds resulting from 
26
this grant of
supplemental general State aid for the 
 


 






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1
improvement of
instruction in which priority is given to 
2
meeting the education needs of
disadvantaged children. Such 
3
plan shall be submitted in accordance with
rules and 
4
regulations promulgated by the State Board of Education.

5
 (4) School districts with an Average Daily Attendance of 
6
50,000 or more
that qualify for supplemental general State aid 
7
pursuant to this subsection
shall be required to distribute 
8
from funds available pursuant to this Section,
no less than 
9
$261,000,000 in accordance with the following requirements:


10
  (a) The required amounts shall be distributed to the 
11
 attendance centers
within the district in proportion to the 
12
 number of pupils enrolled at each
attendance center who are 
13
 eligible to receive free or reduced-price lunches or

14
 breakfasts under the federal Child Nutrition Act of 1966 
15
 and under the National
School Lunch Act during the 
16
 immediately preceding school year.


17
  (b) The distribution of these portions of supplemental 
18
 and general State
aid among attendance centers according to 
19
 these requirements shall not be
compensated for or 
20
 contravened by adjustments of the total of other funds

21
 appropriated to any attendance centers, and the Board of 
22
 Education shall
utilize funding from one or several sources 
23
 in order to fully implement this
provision annually prior 
24
 to the opening of school.


25
  (c) Each attendance center shall be provided by the

26
 school district a distribution of noncategorical funds and 
 


 






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1
 other
categorical funds to which an attendance center is 
2
 entitled under law in
order that the general State aid and 
3
 supplemental general State aid provided
by application of 
4
 this subsection supplements rather than supplants the

5
 noncategorical funds and other categorical funds provided 
6
 by the school
district to the attendance centers.


7
  (d) Any funds made available under this subsection that 
8
 by reason of the
provisions of this subsection are not

9
 required to be allocated and provided to attendance centers 
10
 may be used and
appropriated by the board of the district 
11
 for any lawful school purpose.


12
  (e) Funds received by an attendance center
pursuant to 
13
 this
subsection shall be used
by the attendance center at 
14
 the discretion
of the principal and local school council 
15
 for programs to improve educational
opportunities at 
16
 qualifying schools through the following programs and

17
 services: early childhood education, reduced class size or 
18
 improved adult to
student classroom ratio, enrichment 
19
 programs, remedial assistance, attendance
improvement, and 
20
 other educationally beneficial expenditures which

21
 supplement
the regular and basic programs as determined by 
22
 the State Board of Education.
Funds provided shall not be 
23
 expended for any political or lobbying purposes
as defined 
24
 by board rule.


25
  (f) Each district subject to the provisions of this 
26
 subdivision (H)(4)
shall submit an
acceptable plan to meet 
 


 






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1
 the educational needs of disadvantaged children, in

2
 compliance with the requirements of this paragraph, to the 
3
 State Board of
Education prior to July 15 of each year. 
4
 This plan shall be consistent with the
decisions of local 
5
 school councils concerning the school expenditure plans

6
 developed in accordance with part 4 of Section 34-2.3. The 
7
 State Board shall
approve or reject the plan within 60 days 
8
 after its submission. If the plan is
rejected, the district 
9
 shall give written notice of intent to modify the plan

10
 within 15 days of the notification of rejection and then 
11
 submit a modified plan
within 30 days after the date of the 
12
 written notice of intent to modify.
Districts may amend 
13
 approved plans pursuant to rules promulgated by the State

14
 Board of Education.


15
  Upon notification by the State Board of Education that 
16
 the district has
not submitted a plan prior to July 15 or a 
17
 modified plan within the time
period specified herein, the

18
 State aid funds affected by that plan or modified plan 
19
 shall be withheld by the
State Board of Education until a 
20
 plan or modified plan is submitted.


21
  If the district fails to distribute State aid to 
22
 attendance centers in
accordance with an approved plan, the 
23
 plan for the following year shall
allocate funds, in 
24
 addition to the funds otherwise required by this

25
 subsection, to those attendance centers which were 
26
 underfunded during the
previous year in amounts equal to 
 


 






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1
 such underfunding.


2
  For purposes of determining compliance with this 
3
 subsection in relation
to the requirements of attendance 
4
 center funding, each district subject to the
provisions of 
5
 this
subsection shall submit as a separate document by 
6
 December 1 of each year a
report of expenditure data for 
7
 the prior year in addition to any
modification of its 
8
 current plan. If it is determined that there has been
a 
9
 failure to comply with the expenditure provisions of this 
10
 subsection
regarding contravention or supplanting, the 
11
 State Superintendent of
Education shall, within 60 days of 
12
 receipt of the report, notify the
district and any affected 
13
 local school council. The district shall within
45 days of 
14
 receipt of that notification inform the State 
15
 Superintendent of
Education of the remedial or corrective 
16
 action to be taken, whether by
amendment of the current 
17
 plan, if feasible, or by adjustment in the plan
for the 
18
 following year. Failure to provide the expenditure report 
19
 or the
notification of remedial or corrective action in a 
20
 timely manner shall
result in a withholding of the affected 
21
 funds.


22
  The State Board of Education shall promulgate rules and 
23
 regulations
to implement the provisions of this 
24
 subsection. No funds shall be released
under this 
25
 subdivision (H)(4) to any district that has not submitted a 
26
 plan
that has been approved by the State Board of 
 


 






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1
 Education.



2
(I) (Blank).



3
(J) Supplementary Grants in Aid.

4
 (1) Notwithstanding any other provisions of this Section, 
5
the amount of the
aggregate general State aid in combination 
6
with supplemental general State aid
under this Section for 
7
which
each school district is eligible shall be no
less than 
8
the amount of the aggregate general State aid entitlement that 
9
was
received by the district under Section
18-8 (exclusive of 
10
amounts received
under subsections 5(p) and 5(p-5) of that 
11
Section)
for the 1997-98 school year,
pursuant to the 
12
provisions of that Section as it was then in effect.
If a 
13
school district qualifies to receive a supplementary payment 
14
made under
this subsection (J), the amount
of the aggregate 
15
general State aid in combination with supplemental general

16
State aid under this Section
which that district is eligible to 
17
receive for each school year shall be no less than the amount 
18
of the aggregate
general State aid entitlement that was 
19
received by the district under
Section 18-8 (exclusive of 
20
amounts received
under subsections 5(p) and 5(p-5) of that 
21
Section)
for the 1997-1998 school year, pursuant to the 
22
provisions of that
Section as it was then in effect.

23
 (2) If, as provided in paragraph (1) of this subsection 
24
(J), a school
district is to receive aggregate general State 
 


 






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1
aid in
combination with supplemental general State aid under 
2
this Section for the 1998-99 school year and any subsequent 
3
school
year that in any such school year is less than the 
4
amount of the aggregate
general
State
aid entitlement that the 
5
district received for the 1997-98 school year, the
school 
6
district shall also receive, from a separate appropriation made 
7
for
purposes of this subsection (J), a supplementary payment 
8
that is equal to the
amount of the difference in the aggregate 
9
State aid figures as described in
paragraph (1).

10
 (3) (Blank).



11
(K) Grants to Laboratory and Alternative Schools.

12
 In calculating the amount to be paid to the governing board 
13
of a public
university that operates a laboratory school under 
14
this Section or to any
alternative school that is operated by a 
15
regional superintendent of schools,
the State
Board of 
16
Education shall require by rule such reporting requirements as 
17
it
deems necessary.

18
 As used in this Section, "laboratory school" means a public 
19
school which is
created and operated by a public university and 
20
approved by the State Board of
Education. The governing board 
21
of a public university which receives funds
from the State 
22
Board under this subsection (K) may not increase the number of

23
students enrolled in its laboratory
school from a single 
24
district, if that district is already sending 50 or more

25
students, except under a mutual agreement between the school 
 


 






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1
board of a
student's district of residence and the university 
2
which operates the
laboratory school. A laboratory school may 
3
not have more than 1,000 students,
excluding students with 
4
disabilities in a special education program.

5
 As used in this Section, "alternative school" means a 
6
public school which is
created and operated by a Regional 
7
Superintendent of Schools and approved by
the State Board of 
8
Education. Such alternative schools may offer courses of

9
instruction for which credit is given in regular school 
10
programs, courses to
prepare students for the high school 
11
equivalency testing program or vocational
and occupational 
12
training. A regional superintendent of schools may contract

13
with a school district or a public community college district 
14
to operate an
alternative school. An alternative school serving 
15
more than one educational
service region may be established by 
16
the regional superintendents of schools
of the affected 
17
educational service regions. An alternative school
serving 
18
more than one educational service region may be operated under 
19
such
terms as the regional superintendents of schools of those 
20
educational service
regions may agree.

21
 Each laboratory and alternative school shall file, on forms 
22
provided by the
State Superintendent of Education, an annual 
23
State aid claim which states the
Average Daily Attendance of 
24
the school's students by month. The best 3 months'
Average 
25
Daily Attendance shall be computed for each school.
The general 
26
State aid entitlement shall be computed by multiplying the

 


 






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1
applicable Average Daily Attendance by the Foundation Level as 
2
determined under
this Section.



3
(L) Payments, Additional Grants in Aid and Other Requirements.

4
 (1) For a school district operating under the financial 
5
supervision
of an Authority created under Article 34A, the 
6
general State aid otherwise
payable to that district under this 
7
Section, but not the supplemental general
State aid, shall be 
8
reduced by an amount equal to the budget for
the operations of 
9
the Authority as certified by the Authority to the State
Board 
10
of Education, and an amount equal to such reduction shall be 
11
paid
to the Authority created for such district for its 
12
operating expenses in
the manner provided in Section 18-11. The 
13
remainder
of general State school aid for any such district 
14
shall be paid in accordance
with Article 34A when that Article 
15
provides for a disposition other than that
provided by this 
16
Article.

17
 (2) (Blank).

18
 (3) Summer school. Summer school payments shall be made as 
19
provided in
Section 18-4.3.



20
(M) Education Funding Advisory Board.

21
 The Education Funding Advisory
Board, hereinafter in this 
22
subsection (M) referred to as the "Board", is hereby
created. 
23
The Board
shall consist of 5 members who are appointed by the 
24
Governor, by and with the
advice and consent of the Senate. The 
 


 






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1
members appointed shall include
representatives of education, 
2
business, and the general public. One of the
members so 
3
appointed shall be
designated by the Governor at the time the 
4
appointment is made as the
chairperson of the
Board.
The 
5
initial members of the Board may
be appointed any time after 
6
the effective date of this amendatory Act of
1997. The regular 
7
term of each member of the
Board shall be for 4 years from the 
8
third Monday of January of the
year in which the term of the 
9
member's appointment is to commence, except that
of the 5 
10
initial members appointed to serve on the
Board, the member who 
11
is appointed as the chairperson shall serve for
a term that 
12
commences on the date of his or her appointment and expires on 
13
the
third Monday of January, 2002, and the remaining 4 members, 
14
by lots drawn at
the first meeting of the Board that is
held

15
after all 5 members are appointed, shall determine 2 of their 
16
number to serve
for terms that commence on the date of their

17
respective appointments and expire on the third
Monday of 
18
January, 2001,
and 2 of their number to serve for terms that 
19
commence
on the date of their respective appointments and 
20
expire on the third Monday
of January, 2000. All members 
21
appointed to serve on the
Board shall serve until their 
22
respective successors are
appointed and confirmed. Vacancies 
23
shall be filled in the same manner as
original appointments. If 
24
a vacancy in membership occurs at a time when the
Senate is not 
25
in session, the Governor shall make a temporary appointment 
26
until
the next meeting of the Senate, when he or she shall 
 


 






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1
appoint, by and with the
advice and consent of the Senate, a 
2
person to fill that membership for the
unexpired term. If the 
3
Senate is not in session when the initial appointments
are 
4
made, those appointments shall
be made as in the case of 
5
vacancies.

6
 The Education Funding Advisory Board shall be deemed 
7
established,
and the initial
members appointed by the Governor 
8
to serve as members of the
Board shall take office,
on the date 
9
that the
Governor makes his or her appointment of the fifth 
10
initial member of the
Board, whether those initial members are 
11
then serving
pursuant to appointment and confirmation or 
12
pursuant to temporary appointments
that are made by the 
13
Governor as in the case of vacancies.

14
 The State Board of Education shall provide such staff 
15
assistance to the
Education Funding Advisory Board as is 
16
reasonably required for the proper
performance by the Board of 
17
its responsibilities.

18
 For school years after the 2000-2001 school year, the 
19
Education
Funding Advisory Board, in consultation with the 
20
State Board of Education,
shall make recommendations as 
21
provided in this subsection (M) to the General
Assembly for the 
22
foundation level under subdivision (B)(3) of this Section and

23
for the
supplemental general State aid grant level under 
24
subsection (H) of this Section
for districts with high 
25
concentrations of children from poverty. The
recommended 
26
foundation level shall be determined based on a methodology 
 


 






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1
which
incorporates the basic education expenditures of 
2
low-spending schools
exhibiting high academic performance. The 
3
Education Funding Advisory Board
shall make such 
4
recommendations to the General Assembly on January 1 of odd

5
numbered years, beginning January 1, 2001.



6
(N) (Blank).



7
(O) References.

8
 (1) References in other laws to the various subdivisions of

9
Section 18-8 as that Section existed before its repeal and 
10
replacement by this
Section 18-8.05 shall be deemed to refer to 
11
the corresponding provisions of
this Section 18-8.05, to the 
12
extent that those references remain applicable.

13
 (2) References in other laws to State Chapter 1 funds shall 
14
be deemed to
refer to the supplemental general State aid 
15
provided under subsection (H) of
this Section.


16
(P) Public Act 93-838 and Public Act 93-808 make inconsistent 
17
changes to this Section. Under Section 6 of the Statute on 
18
Statutes there is an irreconcilable conflict between Public Act 
19
93-808 and Public Act 93-838. Public Act 93-838, being the last 
20
acted upon, is controlling. The text of Public Act 93-838 is 
21
the law regardless of the text of Public Act 93-808.
22
(Source: P.A. 94-69, eff. 7-1-05; 94-438, eff. 8-4-05; 94-835, 
23
eff. 6-6-06; 94-1019, eff. 7-10-06; 94-1105, eff. 6-1-07; 
 


 






HB0803
- 52 -
LRB096 03876 RCE 13910 b





1
95-331, eff. 8-21-07; 95-644, eff. 10-12-07; 95-707, eff. 
2
1-11-08; 95-744, eff. 7-18-08; 95-903, eff. 8-25-08; revised 
3
9-5-08.)



4
 Section 999. Effective date. This Act takes effect upon 
5