Bill Text: IL HB2553 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Creates the Education Prioritization Act. Beginning with fiscal year 2020, requires the General Assembly to appropriate for the evidence-based funding formula under the School Code an amount that is equal to or exceeds the sum of: (i) the total amount appropriated for the evidence-based funding formula during the fiscal year immediately preceding the fiscal year for which the appropriation is being made; and (ii) 51% of total new general funds available for spending from estimated growth in revenues and funds available because of budgeted program growth and decline in the fiscal year for which the appropriation is being made; but in no event shall the sum be less than a certain percentage required under the Act. Requires a continuing appropriation if the General Assembly fails to make sufficient appropriations to fund the evidence-based funding formula. Amends the School Code to make changes concerning a system for accounting for revenues and expenditures and evidence-based funding. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2553 Detail]

Download: Illinois-2019-HB2553-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2553

Introduced , by Rep. Camille Y. Lilly

SYNOPSIS AS INTRODUCED:
New Act
105 ILCS 5/2-3.28 from Ch. 122, par. 2-3.28
105 ILCS 5/18-8.15
30 ILCS 805/8.43 new

Creates the Education Prioritization Act. Beginning with fiscal year 2020, requires the General Assembly to appropriate for the evidence-based funding formula under the School Code an amount that is equal to or exceeds the sum of: (i) the total amount appropriated for the evidence-based funding formula during the fiscal year immediately preceding the fiscal year for which the appropriation is being made; and (ii) 51% of total new general funds available for spending from estimated growth in revenues and funds available because of budgeted program growth and decline in the fiscal year for which the appropriation is being made; but in no event shall the sum be less than a certain percentage required under the Act. Requires a continuing appropriation if the General Assembly fails to make sufficient appropriations to fund the evidence-based funding formula. Amends the School Code to make changes concerning a system for accounting for revenues and expenditures and evidence-based funding. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Education Prioritization Act.
6 Section 5. Educational appropriations. Beginning with
7fiscal year 2020 and in each fiscal year thereafter, subject to
8the provisions of Section 10 of this Act, the General Assembly
9shall appropriate for the evidence-based funding formula set
10forth in Section 18-8.15 of the School Code an amount that is
11equal to or exceeds the sum of: (i) the total amount
12appropriated for the evidence-based funding formula set forth
13in Section 18-8.15 of the School Code during the fiscal year
14immediately preceding the fiscal year for which the
15appropriation is being made; and (ii) 51% of total new general
16funds available for spending from estimated growth in revenues
17and funds available because of budgeted program growth and
18decline in the fiscal year for which the appropriation is being
19made; but in no event shall the sum be less than the percentage
20required under Section 10 of this Act. The Commission on
21Government Forecasting and Accountability shall certify the
22amount of total new general funds available for spending.

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1 Section 10. State and federal funding. State funding for
2the evidence-based funding formula set forth in Section 18-8.15
3of the School Code shall be appropriated pursuant to Section 5
4of this Act so that the sum of State and federal spending
5represents no less than 51% of the total revenues available
6from local, State, and federal sources for elementary and
7secondary education programs for the current fiscal year, as
8estimated by the State Superintendent of Education.
9 Section 15. Continuing appropriation. If the General
10Assembly fails to make appropriations to the State Board of
11Education in fiscal year 2020 or in any fiscal year thereafter
12sufficient to fund the evidence-based funding formula set forth
13in Section 18-8.15 of the School Code, this Act shall
14constitute a continuing appropriation of all amounts necessary
15for that purpose.
16 Section 20. Governor's budget. Beginning with fiscal year
172021 and in each fiscal year thereafter, the Governor shall
18include in his or her annual budget an allocation for
19elementary and secondary education that conforms to the
20provisions of this Act.
21 Section 85. The School Code is amended by changing Sections
222-3.28 and 18-8.15 as follows:

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1 (105 ILCS 5/2-3.28) (from Ch. 122, par. 2-3.28)
2 Sec. 2-3.28. Rules and regulations of budget and accounting
3systems. To prescribe rules and regulations defining what shall
4constitute a budget and accounting system required under this
5Act. The rules and regulations shall prescribe the minimum
6extent of verification, the type of audit, the extent of the
7audit report and shall require compliance with statutory
8requirements and standards and such requirements as the State
9Board of Education deems necessary for an adequate budget and
10accounting system. For the 2019-2020 school year and
11thereafter, the rules and regulations shall prescribe a system
12for accounting for revenues and expenditures at the individual
13school level that includes, without limitation, the following:
14 (1) accounting for expenditures for school
15 administration, regular instruction, special education
16 instruction, instructional programs for children of
17 limited English-speaking ability, instructional support
18 services, and pupil support services;
19 (2) salary expenditures reflecting actual staff
20 salaries at each school;
21 (3) accounting for operations, including
22 non-instructional pupil services, facilities, and business
23 services; and
24 (4) such other requirements as the State Board of
25 Education deems necessary to provide for a uniform and
26 transparent system of accounting at the school level.

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1(Source: P.A. 81-1508.)
2 (105 ILCS 5/18-8.15)
3 Sec. 18-8.15. Evidence-based funding for student success
4for the 2017-2018 and subsequent school years.
5 (a) General provisions.
6 (1) The purpose of this Section is to ensure that, by
7 June 30, 2027 and beyond, this State has a kindergarten
8 through grade 12 public education system with the capacity
9 to ensure the educational development of all persons to the
10 limits of their capacities in accordance with Section 1 of
11 Article X of the Constitution of the State of Illinois. To
12 accomplish that objective, this Section creates a method of
13 funding public education that is evidence-based; is
14 sufficient to ensure every student receives a meaningful
15 opportunity to learn irrespective of race, ethnicity,
16 sexual orientation, gender, or community-income level; and
17 is sustainable and predictable. When fully funded under
18 this Section, every school shall have the resources, based
19 on what the evidence indicates is needed, to:
20 (A) provide all students with a high quality
21 education that offers the academic, enrichment, social
22 and emotional support, technical, and career-focused
23 programs that will allow them to become competitive
24 workers, responsible parents, productive citizens of
25 this State, and active members of our national

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1 democracy;
2 (B) ensure all students receive the education they
3 need to graduate from high school with the skills
4 required to pursue post-secondary education and
5 training for a rewarding career;
6 (C) reduce, with a goal of eliminating, the
7 achievement gap between at-risk and non-at-risk
8 students by raising the performance of at-risk
9 students and not by reducing standards; and
10 (D) ensure this State satisfies its obligation to
11 assume the primary responsibility to fund public
12 education and simultaneously relieve the
13 disproportionate burden placed on local property taxes
14 to fund schools.
15 (2) The evidence-based funding formula under this
16 Section shall be applied to all Organizational Units in
17 this State. The evidence-based funding formula outlined in
18 this Act is based on the formula outlined in Senate Bill 1
19 of the 100th General Assembly, as passed by both
20 legislative chambers. As further defined and described in
21 this Section, there are 4 major components of the
22 evidence-based funding model:
23 (A) First, the model calculates a unique adequacy
24 target for each Organizational Unit in this State that
25 considers the costs to implement research-based
26 activities, the unit's student demographics, and

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1 regional wage difference.
2 (B) Second, the model calculates each
3 Organizational Unit's local capacity, or the amount
4 each Organizational Unit is assumed to contribute
5 towards its adequacy target from local resources.
6 (C) Third, the model calculates how much funding
7 the State currently contributes to the Organizational
8 Unit, and adds that to the unit's local capacity to
9 determine the unit's overall current adequacy of
10 funding.
11 (D) Finally, the model's distribution method
12 allocates new State funding to those Organizational
13 Units that are least well-funded, considering both
14 local capacity and State funding, in relation to their
15 adequacy target.
16 (3) An Organizational Unit receiving any funding under
17 this Section may apply those funds to any fund so received
18 for which that Organizational Unit is authorized to make
19 expenditures by law.
20 (4) As used in this Section, the following terms shall
21 have the meanings ascribed in this paragraph (4):
22 "Adequacy Target" is defined in paragraph (1) of
23 subsection (b) of this Section.
24 "Adjusted EAV" is defined in paragraph (4) of
25 subsection (d) of this Section.
26 "Adjusted Local Capacity Target" is defined in

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1 paragraph (3) of subsection (c) of this Section.
2 "Adjusted Operating Tax Rate" means a tax rate for all
3 Organizational Units, for which the State Superintendent
4 shall calculate and subtract for the Operating Tax Rate a
5 transportation rate based on total expenses for
6 transportation services under this Code, as reported on the
7 most recent Annual Financial Report in Pupil
8 Transportation Services, function 2550 in both the
9 Education and Transportation funds and functions 4110 and
10 4120 in the Transportation fund, less any corresponding
11 fiscal year State of Illinois scheduled payments excluding
12 net adjustments for prior years for regular, vocational, or
13 special education transportation reimbursement pursuant to
14 Section 29-5 or subsection (b) of Section 14-13.01 of this
15 Code divided by the Adjusted EAV. If an Organizational
16 Unit's corresponding fiscal year State of Illinois
17 scheduled payments excluding net adjustments for prior
18 years for regular, vocational, or special education
19 transportation reimbursement pursuant to Section 29-5 or
20 subsection (b) of Section 14-13.01 of this Code exceed the
21 total transportation expenses, as defined in this
22 paragraph, no transportation rate shall be subtracted from
23 the Operating Tax Rate.
24 "Allocation Rate" is defined in paragraph (3) of
25 subsection (g) of this Section.
26 "Alternative School" means a public school that is

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1 created and operated by a regional superintendent of
2 schools and approved by the State Board.
3 "Applicable Tax Rate" is defined in paragraph (1) of
4 subsection (d) of this Section.
5 "Assessment" means any of those benchmark, progress
6 monitoring, formative, diagnostic, and other assessments,
7 in addition to the State accountability assessment, that
8 assist teachers' needs in understanding the skills and
9 meeting the needs of the students they serve.
10 "Assistant principal" means a school administrator
11 duly endorsed to be employed as an assistant principal in
12 this State.
13 "At-risk student" means a student who is at risk of not
14 meeting the Illinois Learning Standards or not graduating
15 from elementary or high school and who demonstrates a need
16 for vocational support or social services beyond that
17 provided by the regular school program. All students
18 included in an Organizational Unit's Low-Income Count, as
19 well as all English learner and disabled students attending
20 the Organizational Unit, shall be considered at-risk
21 students under this Section.
22 "Average Student Enrollment" or "ASE" for fiscal year
23 2018 means, for an Organizational Unit, the greater of the
24 average number of students (grades K through 12) reported
25 to the State Board as enrolled in the Organizational Unit
26 on October 1 in the immediately preceding school year, plus

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1 the pre-kindergarten students who receive special
2 education services of 2 or more hours a day as reported to
3 the State Board on December 1 in the immediately preceding
4 school year, or the average number of students (grades K
5 through 12) reported to the State Board as enrolled in the
6 Organizational Unit on October 1, plus the
7 pre-kindergarten students who receive special education
8 services of 2 or more hours a day as reported to the State
9 Board on December 1, for each of the immediately preceding
10 3 school years. For fiscal year 2019 and each subsequent
11 fiscal year, "Average Student Enrollment" or "ASE" means,
12 for an Organizational Unit, the greater of the average
13 number of students (grades K through 12) reported to the
14 State Board as enrolled in the Organizational Unit on
15 October 1 and March 1 in the immediately preceding school
16 year, plus the pre-kindergarten students who receive
17 special education services as reported to the State Board
18 on October 1 and March 1 in the immediately preceding
19 school year, or the average number of students (grades K
20 through 12) reported to the State Board as enrolled in the
21 Organizational Unit on October 1 and March 1, plus the
22 pre-kindergarten students who receive special education
23 services as reported to the State Board on October 1 and
24 March 1, for each of the immediately preceding 3 school
25 years. For the purposes of this definition, "enrolled in
26 the Organizational Unit" means the number of students

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1 reported to the State Board who are enrolled in schools
2 within the Organizational Unit that the student attends or
3 would attend if not placed or transferred to another school
4 or program to receive needed services. For the purposes of
5 calculating "ASE", all students, grades K through 12,
6 excluding those attending kindergarten for a half day,
7 shall be counted as 1.0. All students attending
8 kindergarten for a half day shall be counted as 0.5, unless
9 in 2017 by June 15 or by March 1 in subsequent years, the
10 school district reports to the State Board of Education the
11 intent to implement full-day kindergarten district-wide
12 for all students, then all students attending kindergarten
13 shall be counted as 1.0. Special education
14 pre-kindergarten students shall be counted as 0.5 each. If
15 the State Board does not collect or has not collected both
16 an October 1 and March 1 enrollment count by grade or a
17 December 1 collection of special education
18 pre-kindergarten students as of the effective date of this
19 amendatory Act of the 100th General Assembly, it shall
20 establish such collection for all future years. For any
21 year where a count by grade level was collected only once,
22 that count shall be used as the single count available for
23 computing a 3-year average ASE. School districts shall
24 submit the data for the ASE calculation to the State Board
25 within 45 days of the dates required in this Section for
26 submission of enrollment data in order for it to be

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1 included in the ASE calculation. For fiscal year 2018 only,
2 the ASE calculation shall include only enrollment taken on
3 October 1.
4 "Base Funding Guarantee" is defined in paragraph (10)
5 of subsection (g) of this Section.
6 "Base Funding Minimum" is defined in subsection (e) of
7 this Section.
8 "Base Tax Year" means the property tax levy year used
9 to calculate the Budget Year allocation of primary State
10 aid.
11 "Base Tax Year's Extension" means the product of the
12 equalized assessed valuation utilized by the county clerk
13 in the Base Tax Year multiplied by the limiting rate as
14 calculated by the county clerk and defined in PTELL.
15 "Bilingual Education Allocation" means the amount of
16 an Organizational Unit's final Adequacy Target
17 attributable to bilingual education divided by the
18 Organizational Unit's final Adequacy Target, the product
19 of which shall be multiplied by the amount of new funding
20 received pursuant to this Section. An Organizational
21 Unit's final Adequacy Target attributable to bilingual
22 education shall include all additional investments in
23 English learner students' adequacy elements.
24 "Budget Year" means the school year for which primary
25 State aid is calculated and awarded under this Section.
26 "Central office" means individual administrators and

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1 support service personnel charged with managing the
2 instructional programs, business and operations, and
3 security of the Organizational Unit.
4 "Comparable Wage Index" or "CWI" means a regional cost
5 differentiation metric that measures systemic, regional
6 variations in the salaries of college graduates who are not
7 educators. The CWI utilized for this Section shall, for the
8 first 3 years of Evidence-Based Funding implementation, be
9 the CWI initially developed by the National Center for
10 Education Statistics, as most recently updated by Texas A &
11 M University. In the fourth and subsequent years of
12 Evidence-Based Funding implementation, the State
13 Superintendent shall re-determine the CWI using a similar
14 methodology to that identified in the Texas A & M
15 University study, with adjustments made no less frequently
16 than once every 5 years.
17 "Computer technology and equipment" means computers
18 servers, notebooks, network equipment, copiers, printers,
19 instructional software, security software, curriculum
20 management courseware, and other similar materials and
21 equipment.
22 "Computer technology and equipment investment
23 allocation" means the final Adequacy Target amount of an
24 Organizational Unit assigned to Tier 1 or Tier 2 in the
25 prior school year attributable to the additional $285.50
26 per student computer technology and equipment investment

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1 grant divided by the Organizational Unit's final Adequacy
2 Target, the result of which shall be multiplied by the
3 amount of new funding received pursuant to this Section. An
4 Organizational Unit assigned to a Tier 1 or Tier 2 final
5 Adequacy Target attributable to the received computer
6 technology and equipment investment grant shall include
7 all additional investments in computer technology and
8 equipment adequacy elements.
9 "Core subject" means mathematics; science; reading,
10 English, writing, and language arts; history and social
11 studies; world languages; and subjects taught as Advanced
12 Placement in high schools.
13 "Core teacher" means a regular classroom teacher in
14 elementary schools and teachers of a core subject in middle
15 and high schools.
16 "Core Intervention teacher (tutor)" means a licensed
17 teacher providing one-on-one or small group tutoring to
18 students struggling to meet proficiency in core subjects.
19 "CPPRT" means corporate personal property replacement
20 tax funds paid to an Organizational Unit during the
21 calendar year one year before the calendar year in which a
22 school year begins, pursuant to "An Act in relation to the
23 abolition of ad valorem personal property tax and the
24 replacement of revenues lost thereby, and amending and
25 repealing certain Acts and parts of Acts in connection
26 therewith", certified August 14, 1979, as amended (Public

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1 Act 81-1st S.S.-1).
2 "EAV" means equalized assessed valuation as defined in
3 paragraph (2) of subsection (d) of this Section and
4 calculated in accordance with paragraph (3) of subsection
5 (d) of this Section.
6 "ECI" means the Bureau of Labor Statistics' national
7 employment cost index for civilian workers in educational
8 services in elementary and secondary schools on a
9 cumulative basis for the 12-month calendar year preceding
10 the fiscal year of the Evidence-Based Funding calculation.
11 "EIS Data" means the employment information system
12 data maintained by the State Board on educators within
13 Organizational Units.
14 "Employee benefits" means health, dental, and vision
15 insurance offered to employees of an Organizational Unit,
16 the costs associated with statutorily required payment of
17 the normal cost of the Organizational Unit's teacher
18 pensions, Social Security employer contributions, and
19 Illinois Municipal Retirement Fund employer contributions.
20 "English learner" or "EL" means a child included in the
21 definition of "English learners" under Section 14C-2 of
22 this Code participating in a program of transitional
23 bilingual education or a transitional program of
24 instruction meeting the requirements and program
25 application procedures of Article 14C of this Code. For the
26 purposes of collecting the number of EL students enrolled,

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1 the same collection and calculation methodology as defined
2 above for "ASE" shall apply to English learners, with the
3 exception that EL student enrollment shall include
4 students in grades pre-kindergarten through 12.
5 "Essential Elements" means those elements, resources,
6 and educational programs that have been identified through
7 academic research as necessary to improve student success,
8 improve academic performance, close achievement gaps, and
9 provide for other per student costs related to the delivery
10 and leadership of the Organizational Unit, as well as the
11 maintenance and operations of the unit, and which are
12 specified in paragraph (2) of subsection (b) of this
13 Section.
14 "Evidence-Based Funding" means State funding provided
15 to an Organizational Unit pursuant to this Section.
16 "Extended day" means academic and enrichment programs
17 provided to students outside the regular school day before
18 and after school or during non-instructional times during
19 the school day.
20 "Extension Limitation Ratio" means a numerical ratio
21 in which the numerator is the Base Tax Year's Extension and
22 the denominator is the Preceding Tax Year's Extension.
23 "Final Percent of Adequacy" is defined in paragraph (4)
24 of subsection (f) of this Section.
25 "Final Resources" is defined in paragraph (3) of
26 subsection (f) of this Section.

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1 "Full-time equivalent" or "FTE" means the full-time
2 equivalency compensation for staffing the relevant
3 position at an Organizational Unit.
4 "Funding Gap" is defined in paragraph (1) of subsection
5 (g).
6 "Guidance counselor" means a licensed guidance
7 counselor who provides guidance and counseling support for
8 students within an Organizational Unit.
9 "Hybrid District" means a partial elementary unit
10 district created pursuant to Article 11E of this Code.
11 "Instructional assistant" means a core or special
12 education, non-licensed employee who assists a teacher in
13 the classroom and provides academic support to students.
14 "Instructional facilitator" means a qualified teacher
15 or licensed teacher leader who facilitates and coaches
16 continuous improvement in classroom instruction; provides
17 instructional support to teachers in the elements of
18 research-based instruction or demonstrates the alignment
19 of instruction with curriculum standards and assessment
20 tools; develops or coordinates instructional programs or
21 strategies; develops and implements training; chooses
22 standards-based instructional materials; provides teachers
23 with an understanding of current research; serves as a
24 mentor, site coach, curriculum specialist, or lead
25 teacher; or otherwise works with fellow teachers, in
26 collaboration, to use data to improve instructional

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1 practice or develop model lessons.
2 "Instructional materials" means relevant instructional
3 materials for student instruction, including, but not
4 limited to, textbooks, consumable workbooks, laboratory
5 equipment, library books, and other similar materials.
6 "Laboratory School" means a public school that is
7 created and operated by a public university and approved by
8 the State Board.
9 "Librarian" means a teacher with an endorsement as a
10 library information specialist or another individual whose
11 primary responsibility is overseeing library resources
12 within an Organizational Unit.
13 "Limiting rate for Hybrid Districts" means the
14 combined elementary school and high school limited rates.
15 "Local Capacity" is defined in paragraph (1) of
16 subsection (c) of this Section.
17 "Local Capacity Percentage" is defined in subparagraph
18 (A) of paragraph (2) of subsection (c) of this Section.
19 "Local Capacity Ratio" is defined in subparagraph (B)
20 of paragraph (2) of subsection (c) of this Section.
21 "Local Capacity Target" is defined in paragraph (2) of
22 subsection (c) of this Section.
23 "Low-Income Count" means, for an Organizational Unit
24 in a fiscal year, the higher of the average number of
25 students for the prior school year or the immediately
26 preceding 3 school years who, as of July 1 of the

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1 immediately preceding fiscal year (as determined by the
2 Department of Human Services), are eligible for at least
3 one of the following low income programs: Medicaid, the
4 Children's Health Insurance Program, TANF, or the
5 Supplemental Nutrition Assistance Program, excluding
6 pupils who are eligible for services provided by the
7 Department of Children and Family Services. Until such time
8 that grade level low-income populations become available,
9 grade level low-income populations shall be determined by
10 applying the low-income percentage to total student
11 enrollments by grade level. The low-income percentage is
12 determined by dividing the Low-Income Count by the Average
13 Student Enrollment.
14 "Maintenance and operations" means custodial services,
15 facility and ground maintenance, facility operations,
16 facility security, routine facility repairs, and other
17 similar services and functions.
18 "Minimum Funding Level" is defined in paragraph (9) of
19 subsection (g) of this Section.
20 "New Property Tax Relief Pool Funds" means, for any
21 given fiscal year, all State funds appropriated under
22 Section 2-3.170 of the School Code.
23 "New State Funds" means, for a given school year, all
24 State funds appropriated for Evidence-Based Funding in
25 excess of the amount needed to fund the Base Funding
26 Minimum for all Organizational Units in that school year.

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1 "Net State Contribution Target" means, for a given
2 school year, the amount of State funds that would be
3 necessary to fully meet the Adequacy Target of an
4 Operational Unit minus the Preliminary Resources available
5 to each unit.
6 "Nurse" means an individual licensed as a certified
7 school nurse, in accordance with the rules established for
8 nursing services by the State Board, who is an employee of
9 and is available to provide health care-related services
10 for students of an Organizational Unit.
11 "Operating Tax Rate" means the rate utilized in the
12 previous year to extend property taxes for all purposes,
13 except, Bond and Interest, Summer School, Rent, Capital
14 Improvement, and Vocational Education Building purposes.
15 For Hybrid Districts, the Operating Tax Rate shall be the
16 combined elementary and high school rates utilized in the
17 previous year to extend property taxes for all purposes,
18 except, Bond and Interest, Summer School, Rent, Capital
19 Improvement, and Vocational Education Building purposes.
20 "Organizational Unit" means a Laboratory School or any
21 public school district that is recognized as such by the
22 State Board and that contains elementary schools typically
23 serving kindergarten through 5th grades, middle schools
24 typically serving 6th through 8th grades, or high schools
25 typically serving 9th through 12th grades. The General
26 Assembly acknowledges that the actual grade levels served

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1 by a particular Organizational Unit may vary slightly from
2 what is typical.
3 "Organizational Unit CWI" is determined by calculating
4 the CWI in the region and original county in which an
5 Organizational Unit's primary administrative office is
6 located as set forth in this paragraph, provided that if
7 the Organizational Unit CWI as calculated in accordance
8 with this paragraph is less than 0.9, the Organizational
9 Unit CWI shall be increased to 0.9. Each county's current
10 CWI value shall be adjusted based on the CWI value of that
11 county's neighboring Illinois counties, to create a
12 "weighted adjusted index value". This shall be calculated
13 by summing the CWI values of all of a county's adjacent
14 Illinois counties and dividing by the number of adjacent
15 Illinois counties, then taking the weighted value of the
16 original county's CWI value and the adjacent Illinois
17 county average. To calculate this weighted value, if the
18 number of adjacent Illinois counties is greater than 2, the
19 original county's CWI value will be weighted at 0.25 and
20 the adjacent Illinois county average will be weighted at
21 0.75. If the number of adjacent Illinois counties is 2, the
22 original county's CWI value will be weighted at 0.33 and
23 the adjacent Illinois county average will be weighted at
24 0.66. The greater of the county's current CWI value and its
25 weighted adjusted index value shall be used as the
26 Organizational Unit CWI.

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1 "Preceding Tax Year" means the property tax levy year
2 immediately preceding the Base Tax Year.
3 "Preceding Tax Year's Extension" means the product of
4 the equalized assessed valuation utilized by the county
5 clerk in the Preceding Tax Year multiplied by the Operating
6 Tax Rate.
7 "Preliminary Percent of Adequacy" is defined in
8 paragraph (2) of subsection (f) of this Section.
9 "Preliminary Resources" is defined in paragraph (2) of
10 subsection (f) of this Section.
11 "Principal" means a school administrator duly endorsed
12 to be employed as a principal in this State.
13 "Professional development" means training programs for
14 licensed staff in schools, including, but not limited to,
15 programs that assist in implementing new curriculum
16 programs, provide data focused or academic assessment data
17 training to help staff identify a student's weaknesses and
18 strengths, target interventions, improve instruction,
19 encompass instructional strategies for English learner,
20 gifted, or at-risk students, address inclusivity, cultural
21 sensitivity, or implicit bias, or otherwise provide
22 professional support for licensed staff.
23 "Prototypical" means 450 special education
24 pre-kindergarten and kindergarten through grade 5 students
25 for an elementary school, 450 grade 6 through 8 students
26 for a middle school, and 600 grade 9 through 12 students

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1 for a high school.
2 "PTELL" means the Property Tax Extension Limitation
3 Law.
4 "PTELL EAV" is defined in paragraph (4) of subsection
5 (d) of this Section.
6 "Pupil support staff" means a nurse, psychologist,
7 social worker, family liaison personnel, or other staff
8 member who provides support to at-risk or struggling
9 students.
10 "Real Receipts" is defined in paragraph (1) of
11 subsection (d) of this Section.
12 "Regionalization Factor" means, for a particular
13 Organizational Unit, the figure derived by dividing the
14 Organizational Unit CWI by the Statewide Weighted CWI.
15 "School site staff" means the primary school secretary
16 and any additional clerical personnel assigned to a school.
17 "Special education" means special educational
18 facilities and services, as defined in Section 14-1.08 of
19 this Code.
20 "Special Education Allocation" means the amount of an
21 Organizational Unit's final Adequacy Target attributable
22 to special education divided by the Organizational Unit's
23 final Adequacy Target, the product of which shall be
24 multiplied by the amount of new funding received pursuant
25 to this Section. An Organizational Unit's final Adequacy
26 Target attributable to special education shall include all

HB2553- 23 -LRB101 09406 AXK 54504 b
1 special education investment adequacy elements.
2 "Specialist teacher" means a teacher who provides
3 instruction in subject areas not included in core subjects,
4 including, but not limited to, art, music, physical
5 education, health, driver education, career-technical
6 education, and such other subject areas as may be mandated
7 by State law or provided by an Organizational Unit.
8 "Specially Funded Unit" means an Alternative School,
9 safe school, Department of Juvenile Justice school,
10 special education cooperative or entity recognized by the
11 State Board as a special education cooperative,
12 State-approved charter school, or alternative learning
13 opportunities program that received direct funding from
14 the State Board during the 2016-2017 school year through
15 any of the funding sources included within the calculation
16 of the Base Funding Minimum or Glenwood Academy.
17 "Supplemental Grant Funding" means supplemental
18 general State aid funding received by an Organization Unit
19 during the 2016-2017 school year pursuant to subsection (H)
20 of Section 18-8.05 of this Code (now repealed).
21 "State Adequacy Level" is the sum of the Adequacy
22 Targets of all Organizational Units.
23 "State Board" means the State Board of Education.
24 "State Superintendent" means the State Superintendent
25 of Education.
26 "Statewide Weighted CWI" means a figure determined by

HB2553- 24 -LRB101 09406 AXK 54504 b
1 multiplying each Organizational Unit CWI times the ASE for
2 that Organizational Unit creating a weighted value,
3 summing all Organizational Unit's weighted values, and
4 dividing by the total ASE of all Organizational Units,
5 thereby creating an average weighted index.
6 "Student activities" means non-credit producing
7 after-school programs, including, but not limited to,
8 clubs, bands, sports, and other activities authorized by
9 the school board of the Organizational Unit.
10 "Substitute teacher" means an individual teacher or
11 teaching assistant who is employed by an Organizational
12 Unit and is temporarily serving the Organizational Unit on
13 a per diem or per period-assignment basis replacing another
14 staff member.
15 "Summer school" means academic and enrichment programs
16 provided to students during the summer months outside of
17 the regular school year.
18 "Supervisory aide" means a non-licensed staff member
19 who helps in supervising students of an Organizational
20 Unit, but does so outside of the classroom, in situations
21 such as, but not limited to, monitoring hallways and
22 playgrounds, supervising lunchrooms, or supervising
23 students when being transported in buses serving the
24 Organizational Unit.
25 "Target Ratio" is defined in paragraph (4) of
26 subsection (g).

HB2553- 25 -LRB101 09406 AXK 54504 b
1 "Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined
2 in paragraph (3) of subsection (g).
3 "Tier 1 Aggregate Funding", "Tier 2 Aggregate
4 Funding", "Tier 3 Aggregate Funding", and "Tier 4 Aggregate
5 Funding" are defined in paragraph (1) of subsection (g).
6 (b) Adequacy Target calculation.
7 (1) Each Organizational Unit's Adequacy Target is the
8 sum of the Organizational Unit's cost of providing
9 Essential Elements, as calculated in accordance with this
10 subsection (b), with the salary amounts in the Essential
11 Elements multiplied by a Regionalization Factor calculated
12 pursuant to paragraph (3) of this subsection (b).
13 (2) The Essential Elements are attributable on a pro
14 rata basis related to defined subgroups of the ASE of each
15 Organizational Unit as specified in this paragraph (2),
16 with investments and FTE positions pro rata funded based on
17 ASE counts in excess or less than the thresholds set forth
18 in this paragraph (2). The method for calculating
19 attributable pro rata costs and the defined subgroups
20 thereto are as follows:
21 (A) Core class size investments. Each
22 Organizational Unit shall receive the funding required
23 to support that number of FTE core teacher positions as
24 is needed to keep the respective class sizes of the
25 Organizational Unit to the following maximum numbers:
26 (i) For grades kindergarten through 3, the

HB2553- 26 -LRB101 09406 AXK 54504 b
1 Organizational Unit shall receive funding required
2 to support one FTE core teacher position for every
3 15 Low-Income Count students in those grades and
4 one FTE core teacher position for every 20
5 non-Low-Income Count students in those grades.
6 (ii) For grades 4 through 12, the
7 Organizational Unit shall receive funding required
8 to support one FTE core teacher position for every
9 20 Low-Income Count students in those grades and
10 one FTE core teacher position for every 25
11 non-Low-Income Count students in those grades.
12 The number of non-Low-Income Count students in a
13 grade shall be determined by subtracting the
14 Low-Income students in that grade from the ASE of the
15 Organizational Unit for that grade.
16 (B) Specialist teacher investments. Each
17 Organizational Unit shall receive the funding needed
18 to cover that number of FTE specialist teacher
19 positions that correspond to the following
20 percentages:
21 (i) if the Organizational Unit operates an
22 elementary or middle school, then 20.00% of the
23 number of the Organizational Unit's core teachers,
24 as determined under subparagraph (A) of this
25 paragraph (2); and
26 (ii) if such Organizational Unit operates a

HB2553- 27 -LRB101 09406 AXK 54504 b
1 high school, then 33.33% of the number of the
2 Organizational Unit's core teachers.
3 (C) Instructional facilitator investments. Each
4 Organizational Unit shall receive the funding needed
5 to cover one FTE instructional facilitator position
6 for every 200 combined ASE of pre-kindergarten
7 children with disabilities and all kindergarten
8 through grade 12 students of the Organizational Unit.
9 (D) Core intervention teacher (tutor) investments.
10 Each Organizational Unit shall receive the funding
11 needed to cover one FTE teacher position for each
12 prototypical elementary, middle, and high school.
13 (E) Substitute teacher investments. Each
14 Organizational Unit shall receive the funding needed
15 to cover substitute teacher costs that is equal to
16 5.70% of the minimum pupil attendance days required
17 under Section 10-19 of this Code for all full-time
18 equivalent core, specialist, and intervention
19 teachers, school nurses, special education teachers
20 and instructional assistants, instructional
21 facilitators, and summer school and extended-day
22 teacher positions, as determined under this paragraph
23 (2), at a salary rate of 33.33% of the average salary
24 for grade K through 12 teachers and 33.33% of the
25 average salary of each instructional assistant
26 position.

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1 (F) Core guidance counselor investments. Each
2 Organizational Unit shall receive the funding needed
3 to cover one FTE guidance counselor for each 450
4 combined ASE of pre-kindergarten children with
5 disabilities and all kindergarten through grade 5
6 students, plus one FTE guidance counselor for each 250
7 grades 6 through 8 ASE middle school students, plus one
8 FTE guidance counselor for each 250 grades 9 through 12
9 ASE high school students.
10 (G) Nurse investments. Each Organizational Unit
11 shall receive the funding needed to cover one FTE nurse
12 for each 750 combined ASE of pre-kindergarten children
13 with disabilities and all kindergarten through grade
14 12 students across all grade levels it serves.
15 (H) Supervisory aide investments. Each
16 Organizational Unit shall receive the funding needed
17 to cover one FTE for each 225 combined ASE of
18 pre-kindergarten children with disabilities and all
19 kindergarten through grade 5 students, plus one FTE for
20 each 225 ASE middle school students, plus one FTE for
21 each 200 ASE high school students.
22 (I) Librarian investments. Each Organizational
23 Unit shall receive the funding needed to cover one FTE
24 librarian for each prototypical elementary school,
25 middle school, and high school and one FTE aide or
26 media technician for every 300 combined ASE of

HB2553- 29 -LRB101 09406 AXK 54504 b
1 pre-kindergarten children with disabilities and all
2 kindergarten through grade 12 students.
3 (J) Principal investments. Each Organizational
4 Unit shall receive the funding needed to cover one FTE
5 principal position for each prototypical elementary
6 school, plus one FTE principal position for each
7 prototypical middle school, plus one FTE principal
8 position for each prototypical high school.
9 (K) Assistant principal investments. Each
10 Organizational Unit shall receive the funding needed
11 to cover one FTE assistant principal position for each
12 prototypical elementary school, plus one FTE assistant
13 principal position for each prototypical middle
14 school, plus one FTE assistant principal position for
15 each prototypical high school.
16 (L) School site staff investments. Each
17 Organizational Unit shall receive the funding needed
18 for one FTE position for each 225 ASE of
19 pre-kindergarten children with disabilities and all
20 kindergarten through grade 5 students, plus one FTE
21 position for each 225 ASE middle school students, plus
22 one FTE position for each 200 ASE high school students.
23 (M) Gifted investments. Each Organizational Unit
24 shall receive $40 per kindergarten through grade 12
25 ASE.
26 (N) Professional development investments. Each

HB2553- 30 -LRB101 09406 AXK 54504 b
1 Organizational Unit shall receive $125 per student of
2 the combined ASE of pre-kindergarten children with
3 disabilities and all kindergarten through grade 12
4 students for trainers and other professional
5 development-related expenses for supplies and
6 materials.
7 (O) Instructional material investments. Each
8 Organizational Unit shall receive $190 per student of
9 the combined ASE of pre-kindergarten children with
10 disabilities and all kindergarten through grade 12
11 students to cover instructional material costs.
12 (P) Assessment investments. Each Organizational
13 Unit shall receive $25 per student of the combined ASE
14 of pre-kindergarten children with disabilities and all
15 kindergarten through grade 12 students student to
16 cover assessment costs.
17 (Q) Computer technology and equipment investments.
18 Each Organizational Unit shall receive $285.50 per
19 student of the combined ASE of pre-kindergarten
20 children with disabilities and all kindergarten
21 through grade 12 students to cover computer technology
22 and equipment costs. For the 2018-2019 school year and
23 subsequent school years, Organizational Units assigned
24 to Tier 1 and Tier 2 in the prior school year shall
25 receive an additional $285.50 per student of the
26 combined ASE of pre-kindergarten children with

HB2553- 31 -LRB101 09406 AXK 54504 b
1 disabilities and all kindergarten through grade 12
2 students to cover computer technology and equipment
3 costs in the Organization Unit's Adequacy Target. The
4 State Board may establish additional requirements for
5 Organizational Unit expenditures of funds received
6 pursuant to this subparagraph (Q), including a
7 requirement that funds received pursuant to this
8 subparagraph (Q) may be used only for serving the
9 technology needs of the district. It is the intent of
10 this amendatory Act of the 100th General Assembly that
11 all Tier 1 and Tier 2 districts receive the addition to
12 their Adequacy Target in the following year, subject to
13 compliance with the requirements of the State Board.
14 (R) Student activities investments. Each
15 Organizational Unit shall receive the following
16 funding amounts to cover student activities: $100 per
17 kindergarten through grade 5 ASE student in elementary
18 school, plus $200 per ASE student in middle school,
19 plus $675 per ASE student in high school.
20 (S) Maintenance and operations investments. Each
21 Organizational Unit shall receive $1,038 per student
22 of the combined ASE of pre-kindergarten children with
23 disabilities and all kindergarten through grade 12 for
24 day-to-day maintenance and operations expenditures,
25 including salary, supplies, and materials, as well as
26 purchased services, but excluding employee benefits.

HB2553- 32 -LRB101 09406 AXK 54504 b
1 The proportion of salary for the application of a
2 Regionalization Factor and the calculation of benefits
3 is equal to $352.92.
4 (T) Central office investments. Each
5 Organizational Unit shall receive $742 per student of
6 the combined ASE of pre-kindergarten children with
7 disabilities and all kindergarten through grade 12
8 students to cover central office operations, including
9 administrators and classified personnel charged with
10 managing the instructional programs, business and
11 operations of the school district, and security
12 personnel. The proportion of salary for the
13 application of a Regionalization Factor and the
14 calculation of benefits is equal to $368.48.
15 (U) Employee benefit investments. Each
16 Organizational Unit shall receive 30% of the total of
17 all salary-calculated elements of the Adequacy Target,
18 excluding substitute teachers and student activities
19 investments, to cover benefit costs. For central
20 office and maintenance and operations investments, the
21 benefit calculation shall be based upon the salary
22 proportion of each investment. If at any time the
23 responsibility for funding the employer normal cost of
24 teacher pensions is assigned to school districts, then
25 that amount certified by the Teachers' Retirement
26 System of the State of Illinois to be paid by the

HB2553- 33 -LRB101 09406 AXK 54504 b
1 Organizational Unit for the preceding school year
2 shall be added to the benefit investment. For any
3 fiscal year in which a school district organized under
4 Article 34 of this Code is responsible for paying the
5 employer normal cost of teacher pensions, then that
6 amount of its employer normal cost plus the amount for
7 retiree health insurance as certified by the Public
8 School Teachers' Pension and Retirement Fund of
9 Chicago to be paid by the school district for the
10 preceding school year that is statutorily required to
11 cover employer normal costs and the amount for retiree
12 health insurance shall be added to the 30% specified in
13 this subparagraph (U). The Teachers' Retirement System
14 of the State of Illinois and the Public School
15 Teachers' Pension and Retirement Fund of Chicago shall
16 submit such information as the State Superintendent
17 may require for the calculations set forth in this
18 subparagraph (U).
19 (V) Additional investments in low-income students.
20 In addition to and not in lieu of all other funding
21 under this paragraph (2), each Organizational Unit
22 shall receive funding based on the average teacher
23 salary for grades K through 12 to cover the costs of:
24 (i) one FTE intervention teacher (tutor)
25 position for every 125 Low-Income Count students;
26 (ii) one FTE pupil support staff position for

HB2553- 34 -LRB101 09406 AXK 54504 b
1 every 125 Low-Income Count students;
2 (iii) one FTE extended day teacher position
3 for every 120 Low-Income Count students; and
4 (iv) one FTE summer school teacher position
5 for every 120 Low-Income Count students.
6 (W) Additional investments in English learner
7 students. In addition to and not in lieu of all other
8 funding under this paragraph (2), each Organizational
9 Unit shall receive funding based on the average teacher
10 salary for grades K through 12 to cover the costs of:
11 (i) one FTE intervention teacher (tutor)
12 position for every 125 English learner students;
13 (ii) one FTE pupil support staff position for
14 every 125 English learner students;
15 (iii) one FTE extended day teacher position
16 for every 120 English learner students;
17 (iv) one FTE summer school teacher position
18 for every 120 English learner students; and
19 (v) one FTE core teacher position for every 100
20 English learner students.
21 (X) Special education investments. Each
22 Organizational Unit shall receive funding based on the
23 average teacher salary for grades K through 12 to cover
24 special education as follows:
25 (i) one FTE teacher position for every 141
26 combined ASE of pre-kindergarten children with

HB2553- 35 -LRB101 09406 AXK 54504 b
1 disabilities and all kindergarten through grade 12
2 students;
3 (ii) one FTE instructional assistant for every
4 141 combined ASE of pre-kindergarten children with
5 disabilities and all kindergarten through grade 12
6 students; and
7 (iii) one FTE psychologist position for every
8 1,000 combined ASE of pre-kindergarten children
9 with disabilities and all kindergarten through
10 grade 12 students.
11 (3) For calculating the salaries included within the
12 Essential Elements, the State Superintendent shall
13 annually calculate average salaries to the nearest dollar
14 using the employment information system data maintained by
15 the State Board, limited to public schools only and
16 excluding special education and vocational cooperatives,
17 schools operated by the Department of Juvenile Justice, and
18 charter schools, for the following positions:
19 (A) Teacher for grades K through 8.
20 (B) Teacher for grades 9 through 12.
21 (C) Teacher for grades K through 12.
22 (D) Guidance counselor for grades K through 8.
23 (E) Guidance counselor for grades 9 through 12.
24 (F) Guidance counselor for grades K through 12.
25 (G) Social worker.
26 (H) Psychologist.

HB2553- 36 -LRB101 09406 AXK 54504 b
1 (I) Librarian.
2 (J) Nurse.
3 (K) Principal.
4 (L) Assistant principal.
5 For the purposes of this paragraph (3), "teacher"
6 includes core teachers, specialist and elective teachers,
7 instructional facilitators, tutors, special education
8 teachers, pupil support staff teachers, English learner
9 teachers, extended-day teachers, and summer school
10 teachers. Where specific grade data is not required for the
11 Essential Elements, the average salary for corresponding
12 positions shall apply. For substitute teachers, the
13 average teacher salary for grades K through 12 shall apply.
14 For calculating the salaries included within the
15 Essential Elements for positions not included within EIS
16 Data, the following salaries shall be used in the first
17 year of implementation of Evidence-Based Funding:
18 (i) school site staff, $30,000; and
19 (ii) non-instructional assistant, instructional
20 assistant, library aide, library media tech, or
21 supervisory aide: $25,000.
22 In the second and subsequent years of implementation of
23 Evidence-Based Funding, the amounts in items (i) and (ii)
24 of this paragraph (3) shall annually increase by the ECI.
25 The salary amounts for the Essential Elements
26 determined pursuant to subparagraphs (A) through (L), (S)

HB2553- 37 -LRB101 09406 AXK 54504 b
1 and (T), and (V) through (X) of paragraph (2) of subsection
2 (b) of this Section shall be multiplied by a
3 Regionalization Factor.
4 (c) Local capacity calculation.
5 (1) Each Organizational Unit's Local Capacity
6 represents an amount of funding it is assumed to contribute
7 toward its Adequacy Target for purposes of the
8 Evidence-Based Funding formula calculation. "Local
9 Capacity" means either (i) the Organizational Unit's Local
10 Capacity Target as calculated in accordance with paragraph
11 (2) of this subsection (c) if its Real Receipts are equal
12 to or less than its Local Capacity Target or (ii) the
13 Organizational Unit's Adjusted Local Capacity, as
14 calculated in accordance with paragraph (3) of this
15 subsection (c) if Real Receipts are more than its Local
16 Capacity Target.
17 (2) "Local Capacity Target" means, for an
18 Organizational Unit, that dollar amount that is obtained by
19 multiplying its Adequacy Target by its Local Capacity
20 Ratio.
21 (A) An Organizational Unit's Local Capacity
22 Percentage is the conversion of the Organizational
23 Unit's Local Capacity Ratio, as such ratio is
24 determined in accordance with subparagraph (B) of this
25 paragraph (2), into a cumulative distribution
26 resulting in a percentile ranking to determine each

HB2553- 38 -LRB101 09406 AXK 54504 b
1 Organizational Unit's relative position to all other
2 Organizational Units in this State. The calculation of
3 Local Capacity Percentage is described in subparagraph
4 (C) of this paragraph (2).
5 (B) An Organizational Unit's Local Capacity Ratio
6 in a given year is the percentage obtained by dividing
7 its Adjusted EAV or PTELL EAV, whichever is less, by
8 its Adequacy Target, with the resulting ratio further
9 adjusted as follows:
10 (i) for Organizational Units serving grades
11 kindergarten through 12 and Hybrid Districts, no
12 further adjustments shall be made;
13 (ii) for Organizational Units serving grades
14 kindergarten through 8, the ratio shall be
15 multiplied by 9/13;
16 (iii) for Organizational Units serving grades
17 9 through 12, the Local Capacity Ratio shall be
18 multiplied by 4/13; and
19 (iv) for an Organizational Unit with a
20 different grade configuration than those specified
21 in items (i) through (iii) of this subparagraph
22 (B), the State Superintendent shall determine a
23 comparable adjustment based on the grades served.
24 (C) The Local Capacity Percentage is equal to the
25 percentile ranking of the district. Local Capacity
26 Percentage converts each Organizational Unit's Local

HB2553- 39 -LRB101 09406 AXK 54504 b
1 Capacity Ratio to a cumulative distribution resulting
2 in a percentile ranking to determine each
3 Organizational Unit's relative position to all other
4 Organizational Units in this State. The Local Capacity
5 Percentage cumulative distribution resulting in a
6 percentile ranking for each Organizational Unit shall
7 be calculated using the standard normal distribution
8 of the score in relation to the weighted mean and
9 weighted standard deviation and Local Capacity Ratios
10 of all Organizational Units. If the value assigned to
11 any Organizational Unit is in excess of 90%, the value
12 shall be adjusted to 90%. For Laboratory Schools, the
13 Local Capacity Percentage shall be set at 10% in
14 recognition of the absence of EAV and resources from
15 the public university that are allocated to the
16 Laboratory School. The weighted mean for the Local
17 Capacity Percentage shall be determined by multiplying
18 each Organizational Unit's Local Capacity Ratio times
19 the ASE for the unit creating a weighted value, summing
20 the weighted values of all Organizational Units, and
21 dividing by the total ASE of all Organizational Units.
22 The weighted standard deviation shall be determined by
23 taking the square root of the weighted variance of all
24 Organizational Units' Local Capacity Ratio, where the
25 variance is calculated by squaring the difference
26 between each unit's Local Capacity Ratio and the

HB2553- 40 -LRB101 09406 AXK 54504 b
1 weighted mean, then multiplying the variance for each
2 unit times the ASE for the unit to create a weighted
3 variance for each unit, then summing all units'
4 weighted variance and dividing by the total ASE of all
5 units.
6 (D) For any Organizational Unit, the
7 Organizational Unit's Adjusted Local Capacity Target
8 shall be reduced by either (i) the school board's
9 remaining contribution pursuant to paragraph (ii) of
10 subsection (b-4) of Section 16-158 of the Illinois
11 Pension Code in a given year, or (ii) the board of
12 education's remaining contribution pursuant to
13 paragraph (iv) of subsection (b) of Section 17-129 of
14 the Illinois Pension Code absent the employer normal
15 cost portion of the required contribution and amount
16 allowed pursuant to subdivision (3) of Section
17 17-142.1 of the Illinois Pension Code in a given year.
18 In the preceding sentence, item (i) shall be certified
19 to the State Board of Education by the Teachers'
20 Retirement System of the State of Illinois and item
21 (ii) shall be certified to the State Board of Education
22 by the Public School Teachers' Pension and Retirement
23 Fund of the City of Chicago.
24 (3) If an Organizational Unit's Real Receipts are more
25 than its Local Capacity Target, then its Local Capacity
26 shall equal an Adjusted Local Capacity Target as calculated

HB2553- 41 -LRB101 09406 AXK 54504 b
1 in accordance with this paragraph (3). The Adjusted Local
2 Capacity Target is calculated as the sum of the
3 Organizational Unit's Local Capacity Target and its Real
4 Receipts Adjustment. The Real Receipts Adjustment equals
5 the Organizational Unit's Real Receipts less its Local
6 Capacity Target, with the resulting figure multiplied by
7 the Local Capacity Percentage.
8 As used in this paragraph (3), "Real Percent of
9 Adequacy" means the sum of an Organizational Unit's Real
10 Receipts, CPPRT, and Base Funding Minimum, with the
11 resulting figure divided by the Organizational Unit's
12 Adequacy Target.
13 (d) Calculation of Real Receipts, EAV, and Adjusted EAV for
14purposes of the Local Capacity calculation.
15 (1) An Organizational Unit's Real Receipts are the
16 product of its Applicable Tax Rate and its Adjusted EAV. An
17 Organizational Unit's Applicable Tax Rate is its Adjusted
18 Operating Tax Rate for property within the Organizational
19 Unit.
20 (2) The State Superintendent shall calculate the
21 Equalized Assessed Valuation, or EAV, of all taxable
22 property of each Organizational Unit as of September 30 of
23 the previous year in accordance with paragraph (3) of this
24 subsection (d). The State Superintendent shall then
25 determine the Adjusted EAV of each Organizational Unit in
26 accordance with paragraph (4) of this subsection (d), which

HB2553- 42 -LRB101 09406 AXK 54504 b
1 Adjusted EAV figure shall be used for the purposes of
2 calculating Local Capacity.
3 (3) To calculate Real Receipts and EAV, the Department
4 of Revenue shall supply to the State Superintendent the
5 value as equalized or assessed by the Department of Revenue
6 of all taxable property of every Organizational Unit,
7 together with (i) the applicable tax rate used in extending
8 taxes for the funds of the Organizational Unit as of
9 September 30 of the previous year and (ii) the limiting
10 rate for all Organizational Units subject to property tax
11 extension limitations as imposed under PTELL.
12 (A) The Department of Revenue shall add to the
13 equalized assessed value of all taxable property of
14 each Organizational Unit situated entirely or
15 partially within a county that is or was subject to the
16 provisions of Section 15-176 or 15-177 of the Property
17 Tax Code (i) an amount equal to the total amount by
18 which the homestead exemption allowed under Section
19 15-176 or 15-177 of the Property Tax Code for real
20 property situated in that Organizational Unit exceeds
21 the total amount that would have been allowed in that
22 Organizational Unit if the maximum reduction under
23 Section 15-176 was (I) $4,500 in Cook County or $3,500
24 in all other counties in tax year 2003 or (II) $5,000
25 in all counties in tax year 2004 and thereafter and
26 (ii) an amount equal to the aggregate amount for the

HB2553- 43 -LRB101 09406 AXK 54504 b
1 taxable year of all additional exemptions under
2 Section 15-175 of the Property Tax Code for owners with
3 a household income of $30,000 or less. The county clerk
4 of any county that is or was subject to the provisions
5 of Section 15-176 or 15-177 of the Property Tax Code
6 shall annually calculate and certify to the Department
7 of Revenue for each Organizational Unit all homestead
8 exemption amounts under Section 15-176 or 15-177 of the
9 Property Tax Code and all amounts of additional
10 exemptions under Section 15-175 of the Property Tax
11 Code for owners with a household income of $30,000 or
12 less. It is the intent of this subparagraph (A) that if
13 the general homestead exemption for a parcel of
14 property is determined under Section 15-176 or 15-177
15 of the Property Tax Code rather than Section 15-175,
16 then the calculation of EAV shall not be affected by
17 the difference, if any, between the amount of the
18 general homestead exemption allowed for that parcel of
19 property under Section 15-176 or 15-177 of the Property
20 Tax Code and the amount that would have been allowed
21 had the general homestead exemption for that parcel of
22 property been determined under Section 15-175 of the
23 Property Tax Code. It is further the intent of this
24 subparagraph (A) that if additional exemptions are
25 allowed under Section 15-175 of the Property Tax Code
26 for owners with a household income of less than

HB2553- 44 -LRB101 09406 AXK 54504 b
1 $30,000, then the calculation of EAV shall not be
2 affected by the difference, if any, because of those
3 additional exemptions.
4 (B) With respect to any part of an Organizational
5 Unit within a redevelopment project area in respect to
6 which a municipality has adopted tax increment
7 allocation financing pursuant to the Tax Increment
8 Allocation Redevelopment Act, Division 74.4 of Article
9 11 of the Illinois Municipal Code, or the Industrial
10 Jobs Recovery Law, Division 74.6 of Article 11 of the
11 Illinois Municipal Code, no part of the current EAV of
12 real property located in any such project area which is
13 attributable to an increase above the total initial EAV
14 of such property shall be used as part of the EAV of
15 the Organizational Unit, until such time as all
16 redevelopment project costs have been paid, as
17 provided in Section 11-74.4-8 of the Tax Increment
18 Allocation Redevelopment Act or in Section 11-74.6-35
19 of the Industrial Jobs Recovery Law. For the purpose of
20 the EAV of the Organizational Unit, the total initial
21 EAV or the current EAV, whichever is lower, shall be
22 used until such time as all redevelopment project costs
23 have been paid.
24 (B-5) The real property equalized assessed
25 valuation for a school district shall be adjusted by
26 subtracting from the real property value, as equalized

HB2553- 45 -LRB101 09406 AXK 54504 b
1 or assessed by the Department of Revenue, for the
2 district an amount computed by dividing the amount of
3 any abatement of taxes under Section 18-170 of the
4 Property Tax Code by 3.00% for a district maintaining
5 grades kindergarten through 12, by 2.30% for a district
6 maintaining grades kindergarten through 8, or by 1.05%
7 for a district maintaining grades 9 through 12 and
8 adjusted by an amount computed by dividing the amount
9 of any abatement of taxes under subsection (a) of
10 Section 18-165 of the Property Tax Code by the same
11 percentage rates for district type as specified in this
12 subparagraph (B-5).
13 (C) For Organizational Units that are Hybrid
14 Districts, the State Superintendent shall use the
15 lesser of the adjusted equalized assessed valuation
16 for property within the partial elementary unit
17 district for elementary purposes, as defined in
18 Article 11E of this Code, or the adjusted equalized
19 assessed valuation for property within the partial
20 elementary unit district for high school purposes, as
21 defined in Article 11E of this Code.
22 (4) An Organizational Unit's Adjusted EAV shall be the
23 average of its EAV over the immediately preceding 3 years
24 or its EAV in the immediately preceding year if the EAV in
25 the immediately preceding year has declined by 10% or more
26 compared to the 3-year average. In the event of

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1 Organizational Unit reorganization, consolidation, or
2 annexation, the Organizational Unit's Adjusted EAV for the
3 first 3 years after such change shall be as follows: the
4 most current EAV shall be used in the first year, the
5 average of a 2-year EAV or its EAV in the immediately
6 preceding year if the EAV declines by 10% or more compared
7 to the 2-year average for the second year, and a 3-year
8 average EAV or its EAV in the immediately preceding year if
9 the adjusted EAV declines by 10% or more compared to the
10 3-year average for the third year. For any school district
11 whose EAV in the immediately preceding year is used in
12 calculations, in the following year, the Adjusted EAV shall
13 be the average of its EAV over the immediately preceding 2
14 years or the immediately preceding year if that year
15 represents a decline of 10% or more compared to the 2-year
16 average.
17 "PTELL EAV" means a figure calculated by the State
18 Board for Organizational Units subject to PTELL as
19 described in this paragraph (4) for the purposes of
20 calculating an Organizational Unit's Local Capacity Ratio.
21 Except as otherwise provided in this paragraph (4), the
22 PTELL EAV of an Organizational Unit shall be equal to the
23 product of the equalized assessed valuation last used in
24 the calculation of general State aid under Section 18-8.05
25 of this Code (now repealed) or Evidence-Based Funding under
26 this Section and the Organizational Unit's Extension

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1 Limitation Ratio. If an Organizational Unit has approved or
2 does approve an increase in its limiting rate, pursuant to
3 Section 18-190 of the Property Tax Code, affecting the Base
4 Tax Year, the PTELL EAV shall be equal to the product of
5 the equalized assessed valuation last used in the
6 calculation of general State aid under Section 18-8.05 of
7 this Code (now repealed) or Evidence-Based Funding under
8 this Section multiplied by an amount equal to one plus the
9 percentage increase, if any, in the Consumer Price Index
10 for All Urban Consumers for all items published by the
11 United States Department of Labor for the 12-month calendar
12 year preceding the Base Tax Year, plus the equalized
13 assessed valuation of new property, annexed property, and
14 recovered tax increment value and minus the equalized
15 assessed valuation of disconnected property.
16 As used in this paragraph (4), "new property" and
17 "recovered tax increment value" shall have the meanings set
18 forth in the Property Tax Extension Limitation Law.
19 (e) Base Funding Minimum calculation.
20 (1) For the 2017-2018 school year, the Base Funding
21 Minimum of an Organizational Unit or a Specially Funded
22 Unit shall be the amount of State funds distributed to the
23 Organizational Unit or Specially Funded Unit during the
24 2016-2017 school year prior to any adjustments and
25 specified appropriation amounts described in this
26 paragraph (1) from the following Sections, as calculated by

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1 the State Superintendent: Section 18-8.05 of this Code (now
2 repealed); Section 5 of Article 224 of Public Act 99-524
3 (equity grants); Section 14-7.02b of this Code (funding for
4 children requiring special education services); Section
5 14-13.01 of this Code (special education facilities and
6 staffing), except for reimbursement of the cost of
7 transportation pursuant to Section 14-13.01; Section
8 14C-12 of this Code (English learners); and Section 18-4.3
9 of this Code (summer school), based on an appropriation
10 level of $13,121,600. For a school district organized under
11 Article 34 of this Code, the Base Funding Minimum also
12 includes (i) the funds allocated to the school district
13 pursuant to Section 1D-1 of this Code attributable to
14 funding programs authorized by the Sections of this Code
15 listed in the preceding sentence; and (ii) the difference
16 between (I) the funds allocated to the school district
17 pursuant to Section 1D-1 of this Code attributable to the
18 funding programs authorized by Section 14-7.02 (non-public
19 special education reimbursement), subsection (b) of
20 Section 14-13.01 (special education transportation),
21 Section 29-5 (transportation), Section 2-3.80
22 (agricultural education), Section 2-3.66 (truants'
23 alternative education), Section 2-3.62 (educational
24 service centers), and Section 14-7.03 (special education -
25 orphanage) of this Code and Section 15 of the Childhood
26 Hunger Relief Act (free breakfast program) and (II) the

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1 school district's actual expenditures for its non-public
2 special education, special education transportation,
3 transportation programs, agricultural education, truants'
4 alternative education, services that would otherwise be
5 performed by a regional office of education, special
6 education orphanage expenditures, and free breakfast, as
7 most recently calculated and reported pursuant to
8 subsection (f) of Section 1D-1 of this Code. The Base
9 Funding Minimum for Glenwood Academy shall be $625,500.
10 (2) For the 2018-2019 and subsequent school years, the
11 Base Funding Minimum of Organizational Units and Specially
12 Funded Units shall be the sum of (i) the amount of
13 Evidence-Based Funding for the prior school year, (ii) the
14 Base Funding Minimum for the prior school year, and (iii)
15 any amount received by a school district pursuant to
16 Section 7 of Article 97 of Public Act 100-21.
17 (f) Percent of Adequacy and Final Resources calculation.
18 (1) The Evidence-Based Funding formula establishes a
19 Percent of Adequacy for each Organizational Unit in order
20 to place such units into tiers for the purposes of the
21 funding distribution system described in subsection (g) of
22 this Section. Initially, an Organizational Unit's
23 Preliminary Resources and Preliminary Percent of Adequacy
24 are calculated pursuant to paragraph (2) of this subsection
25 (f). Then, an Organizational Unit's Final Resources and
26 Final Percent of Adequacy are calculated to account for the

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1 Organizational Unit's poverty concentration levels
2 pursuant to paragraphs (3) and (4) of this subsection (f).
3 (2) An Organizational Unit's Preliminary Resources are
4 equal to the sum of its Local Capacity Target, CPPRT, and
5 Base Funding Minimum. An Organizational Unit's Preliminary
6 Percent of Adequacy is the lesser of (i) its Preliminary
7 Resources divided by its Adequacy Target or (ii) 100%.
8 (3) Except for Specially Funded Units, an
9 Organizational Unit's Final Resources are equal the sum of
10 its Local Capacity, CPPRT, and Adjusted Base Funding
11 Minimum. The Base Funding Minimum of each Specially Funded
12 Unit shall serve as its Final Resources, except that the
13 Base Funding Minimum for State-approved charter schools
14 shall not include any portion of general State aid
15 allocated in the prior year based on the per capita tuition
16 charge times the charter school enrollment.
17 (4) An Organizational Unit's Final Percent of Adequacy
18 is its Final Resources divided by its Adequacy Target. An
19 Organizational Unit's Adjusted Base Funding Minimum is
20 equal to its Base Funding Minimum less its Supplemental
21 Grant Funding, with the resulting figure added to the
22 product of its Supplemental Grant Funding and Preliminary
23 Percent of Adequacy.
24 (g) Evidence-Based Funding formula distribution system.
25 (1) In each school year under the Evidence-Based
26 Funding formula, each Organizational Unit receives funding

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1 equal to the sum of its Base Funding Minimum and the unit's
2 allocation of New State Funds determined pursuant to this
3 subsection (g). To allocate New State Funds, the
4 Evidence-Based Funding formula distribution system first
5 places all Organizational Units into one of 4 tiers in
6 accordance with paragraph (3) of this subsection (g), based
7 on the Organizational Unit's Final Percent of Adequacy. New
8 State Funds are allocated to each of the 4 tiers as
9 follows: Tier 1 Aggregate Funding equals 50% of all New
10 State Funds, Tier 2 Aggregate Funding equals 49% of all New
11 State Funds, Tier 3 Aggregate Funding equals 0.9% of all
12 New State Funds, and Tier 4 Aggregate Funding equals 0.1%
13 of all New State Funds. Each Organizational Unit within
14 Tier 1 or Tier 2 receives an allocation of New State Funds
15 equal to its tier Funding Gap, as defined in the following
16 sentence, multiplied by the tier's Allocation Rate
17 determined pursuant to paragraph (4) of this subsection
18 (g). For Tier 1, an Organizational Unit's Funding Gap
19 equals the tier's Target Ratio, as specified in paragraph
20 (5) of this subsection (g), multiplied by the
21 Organizational Unit's Adequacy Target, with the resulting
22 amount reduced by the Organizational Unit's Final
23 Resources. For Tier 2, an Organizational Unit's Funding Gap
24 equals the tier's Target Ratio, as described in paragraph
25 (5) of this subsection (g), multiplied by the
26 Organizational Unit's Adequacy Target, with the resulting

HB2553- 52 -LRB101 09406 AXK 54504 b
1 amount reduced by the Organizational Unit's Final
2 Resources and its Tier 1 funding allocation. To determine
3 the Organizational Unit's Funding Gap, the resulting
4 amount is then multiplied by a factor equal to one minus
5 the Organizational Unit's Local Capacity Target
6 percentage. Each Organizational Unit within Tier 3 or Tier
7 4 receives an allocation of New State Funds equal to the
8 product of its Adequacy Target and the tier's Allocation
9 Rate, as specified in paragraph (4) of this subsection (g).
10 (2) To ensure equitable distribution of dollars for all
11 Tier 2 Organizational Units, no Tier 2 Organizational Unit
12 shall receive fewer dollars per ASE than any Tier 3
13 Organizational Unit. Each Tier 2 and Tier 3 Organizational
14 Unit shall have its funding allocation divided by its ASE.
15 Any Tier 2 Organizational Unit with a funding allocation
16 per ASE below the greatest Tier 3 allocation per ASE shall
17 get a funding allocation equal to the greatest Tier 3
18 funding allocation per ASE multiplied by the
19 Organizational Unit's ASE. Each Tier 2 Organizational
20 Unit's Tier 2 funding allocation shall be multiplied by the
21 percentage calculated by dividing the original Tier 2
22 Aggregate Funding by the sum of all Tier 2 Organizational
23 Unit's Tier 2 funding allocation after adjusting
24 districts' funding below Tier 3 levels.
25 (3) Organizational Units are placed into one of 4 tiers
26 as follows:

HB2553- 53 -LRB101 09406 AXK 54504 b
1 (A) Tier 1 consists of all Organizational Units,
2 except for Specially Funded Units, with a Percent of
3 Adequacy less than the Tier 1 Target Ratio. The Tier 1
4 Target Ratio is the ratio level that allows for Tier 1
5 Aggregate Funding to be distributed, with the Tier 1
6 Allocation Rate determined pursuant to paragraph (4)
7 of this subsection (g).
8 (B) Tier 2 consists of all Tier 1 Units and all
9 other Organizational Units, except for Specially
10 Funded Units, with a Percent of Adequacy of less than
11 0.90.
12 (C) Tier 3 consists of all Organizational Units,
13 except for Specially Funded Units, with a Percent of
14 Adequacy of at least 0.90 and less than 1.0.
15 (D) Tier 4 consists of all Organizational Units
16 with a Percent of Adequacy of at least 1.0.
17 (4) The Allocation Rates for Tiers 1 through 4 is
18 determined as follows:
19 (A) The Tier 1 Allocation Rate is 30%.
20 (B) The Tier 2 Allocation Rate is the result of the
21 following equation: Tier 2 Aggregate Funding, divided
22 by the sum of the Funding Gaps for all Tier 2
23 Organizational Units, unless the result of such
24 equation is higher than 1.0. If the result of such
25 equation is higher than 1.0, then the Tier 2 Allocation
26 Rate is 1.0.

HB2553- 54 -LRB101 09406 AXK 54504 b
1 (C) The Tier 3 Allocation Rate is the result of the
2 following equation: Tier 3 Aggregate Funding, divided
3 by the sum of the Adequacy Targets of all Tier 3
4 Organizational Units.
5 (D) The Tier 4 Allocation Rate is the result of the
6 following equation: Tier 4 Aggregate Funding, divided
7 by the sum of the Adequacy Targets of all Tier 4
8 Organizational Units.
9 (5) A tier's Target Ratio is determined as follows:
10 (A) The Tier 1 Target Ratio is the ratio level that
11 allows for Tier 1 Aggregate Funding to be distributed
12 with the Tier 1 Allocation Rate.
13 (B) The Tier 2 Target Ratio is 0.90.
14 (C) The Tier 3 Target Ratio is 1.0.
15 (6) If, at any point, the Tier 1 Target Ratio is
16 greater than 90%, than all Tier 1 funding shall be
17 allocated to Tier 2 and no Tier 1 Organizational Unit's
18 funding may be identified.
19 (7) In the event that all Tier 2 Organizational Units
20 receive funding at the Tier 2 Target Ratio level, any
21 remaining New State Funds shall be allocated to Tier 3 and
22 Tier 4 Organizational Units.
23 (8) If any Specially Funded Units, excluding Glenwood
24 Academy, recognized by the State Board do not qualify for
25 direct funding following the implementation of this
26 amendatory Act of the 100th General Assembly from any of

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1 the funding sources included within the definition of Base
2 Funding Minimum, the unqualified portion of the Base
3 Funding Minimum shall be transferred to one or more
4 appropriate Organizational Units as determined by the
5 State Superintendent based on the prior year ASE of the
6 Organizational Units.
7 (8.5) If a school district withdraws from a special
8 education cooperative, the portion of the Base Funding
9 Minimum that is attributable to the school district may be
10 redistributed to the school district upon withdrawal. The
11 school district and the cooperative must include the amount
12 of the Base Funding Minimum that is to be re-apportioned in
13 their withdrawal agreement and notify the State Board of
14 the change with a copy of the agreement upon withdrawal.
15 (9) The Minimum Funding Level is intended to establish
16 a target for State funding that will keep pace with
17 inflation and continue to advance equity through the
18 Evidence-Based Funding formula. The target for State
19 funding of New Property Tax Relief Pool Funds is
20 $50,000,000 for State fiscal year 2019 and subsequent State
21 fiscal years. The Minimum Funding Level is equal to
22 $350,000,000. In addition to any New State Funds, no more
23 than $50,000,000 New Property Tax Relief Pool Funds may be
24 counted towards the Minimum Funding Level. If the sum of
25 New State Funds and applicable New Property Tax Relief Pool
26 Funds are less than the Minimum Funding Level, than funding

HB2553- 56 -LRB101 09406 AXK 54504 b
1 for tiers shall be reduced in the following manner:
2 (A) First, Tier 4 funding shall be reduced by an
3 amount equal to the difference between the Minimum
4 Funding Level and New State Funds until such time as
5 Tier 4 funding is exhausted.
6 (B) Next, Tier 3 funding shall be reduced by an
7 amount equal to the difference between the Minimum
8 Funding Level and New State Funds and the reduction in
9 Tier 4 funding until such time as Tier 3 funding is
10 exhausted.
11 (C) Next, Tier 2 funding shall be reduced by an
12 amount equal to the difference between the Minimum
13 Funding level and new State Funds and the reduction
14 Tier 4 and Tier 3.
15 (D) Finally, Tier 1 funding shall be reduced by an
16 amount equal to the difference between the Minimum
17 Funding level and New State Funds and the reduction in
18 Tier 2, 3, and 4 funding. In addition, the Allocation
19 Rate for Tier 1 shall be reduced to a percentage equal
20 to the Tier 1 allocation rate set by paragraph (4) of
21 this subsection (g), multiplied by the result of New
22 State Funds divided by the Minimum Funding Level.
23 (9.5) For State fiscal year 2019 and subsequent State
24 fiscal years, if New State Funds exceed $300,000,000, then
25 any amount in excess of $300,000,000 shall be dedicated for
26 purposes of Section 2-3.170 of this Code up to a maximum of

HB2553- 57 -LRB101 09406 AXK 54504 b
1 $50,000,000.
2 (10) In the event of a decrease in the amount of the
3 appropriation for this Section in any fiscal year after
4 implementation of this Section, the Organizational Units
5 receiving Tier 1 and Tier 2 funding, as determined under
6 paragraph (3) of this subsection (g), shall be held
7 harmless by establishing a Base Funding Guarantee equal to
8 the per pupil kindergarten through grade 12 funding
9 received in accordance with this Section in the prior
10 fiscal year. Reductions shall be made to the Base Funding
11 Minimum of Organizational Units in Tier 3 and Tier 4 on a
12 per pupil basis equivalent to the total number of the ASE
13 in Tier 3-funded and Tier 4-funded Organizational Units
14 divided by the total reduction in State funding. The Base
15 Funding Minimum as reduced shall continue to be applied to
16 Tier 3 and Tier 4 Organizational Units and adjusted by the
17 relative formula when increases in appropriations for this
18 Section resume. In no event may State funding reductions to
19 Organizational Units in Tier 3 or Tier 4 exceed an amount
20 that would be less than the Base Funding Minimum
21 established in the first year of implementation of this
22 Section. If additional reductions are required, all school
23 districts shall receive a reduction by a per pupil amount
24 equal to the aggregate additional appropriation reduction
25 divided by the total ASE of all Organizational Units.
26 (11) The State Superintendent shall make minor

HB2553- 58 -LRB101 09406 AXK 54504 b
1 adjustments to the distribution formula set forth in this
2 subsection (g) to account for the rounding of percentages
3 to the nearest tenth of a percentage and dollar amounts to
4 the nearest whole dollar.
5 (h) State Superintendent administration of funding and
6district submission requirements.
7 (1) The State Superintendent shall, in accordance with
8 appropriations made by the General Assembly or the
9 Education Prioritization Act, meet the funding obligations
10 created under this Section.
11 (2) The State Superintendent shall calculate the
12 Adequacy Target for each Organizational Unit and Net State
13 Contribution Target for each Organizational Unit under
14 this Section. The State Superintendent shall also certify
15 the actual amounts of the New State Funds payable for each
16 eligible Organizational Unit based on the equitable
17 distribution calculation to the unit's treasurer, as soon
18 as possible after such amounts are calculated, including
19 any applicable adjusted charge-off increase. No
20 Evidence-Based Funding shall be distributed within an
21 Organizational Unit without the approval of the unit's
22 school board.
23 (3) Annually, the State Superintendent shall calculate
24 and report to each Organizational Unit the unit's aggregate
25 financial adequacy amount, which shall be the sum of the
26 Adequacy Target for each Organizational Unit. The State

HB2553- 59 -LRB101 09406 AXK 54504 b
1 Superintendent shall calculate and report separately for
2 each Organizational Unit the unit's total State funds
3 allocated for its students with disabilities. The State
4 Superintendent shall calculate and report separately for
5 each Organizational Unit the amount of funding and
6 applicable FTE calculated for each Essential Element of the
7 unit's Adequacy Target.
8 (4) Annually, the State Superintendent shall calculate
9 and report to each Organizational Unit the amount the unit
10 must expend on special education and bilingual education
11 and computer technology and equipment for Organizational
12 Units assigned to Tier 1 or Tier 2 that received an
13 additional $285.50 per student computer technology and
14 equipment investment grant to their Adequacy Target
15 pursuant to the unit's Base Funding Minimum, Special
16 Education Allocation, Bilingual Education Allocation, and
17 computer technology and equipment investment allocation.
18 (5) Moneys distributed under this Section shall be
19 calculated on a school year basis, but paid on a fiscal
20 year basis, with payments beginning in August and extending
21 through June. Unless otherwise provided, the moneys
22 appropriated for each fiscal year shall be distributed in
23 22 equal payments at least 2 times monthly to each
24 Organizational Unit. The State Board shall publish a yearly
25 distribution schedule at its meeting in June. If moneys
26 appropriated for any fiscal year are distributed other than

HB2553- 60 -LRB101 09406 AXK 54504 b
1 monthly, the distribution shall be on the same basis for
2 each Organizational Unit.
3 (6) Any school district that fails, for any given
4 school year, to maintain school as required by law or to
5 maintain a recognized school is not eligible to receive
6 Evidence-Based Funding. In case of non-recognition of one
7 or more attendance centers in a school district otherwise
8 operating recognized schools, the claim of the district
9 shall be reduced in the proportion that the enrollment in
10 the attendance center or centers bears to the enrollment of
11 the school district. "Recognized school" means any public
12 school that meets the standards for recognition by the
13 State Board. 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 that was filed while it was recognized.
17 (7) School district claims filed under this Section are
18 subject to Sections 18-9 and 18-12 of this Code, except as
19 otherwise provided in this Section.
20 (8) Each fiscal year, the State Superintendent shall
21 calculate for each Organizational Unit an amount of its
22 Base Funding Minimum and Evidence-Based Funding that shall
23 be deemed attributable to the provision of special
24 educational facilities and services, as defined in Section
25 14-1.08 of this Code, in a manner that ensures compliance
26 with maintenance of State financial support requirements

HB2553- 61 -LRB101 09406 AXK 54504 b
1 under the federal Individuals with Disabilities Education
2 Act. An Organizational Unit must use such funds only for
3 the provision of special educational facilities and
4 services, as defined in Section 14-1.08 of this Code, and
5 must comply with any expenditure verification procedures
6 adopted by the State Board.
7 (9) All Organizational Units in this State must submit
8 annual spending plans by the end of September of each year
9 to the State Board as part of the annual budget process,
10 which shall describe how each Organizational Unit will
11 utilize the Base Minimum Funding and Evidence-Based
12 funding it receives from this State under this Section with
13 specific identification of the intended utilization of
14 Low-Income, English learner, and special education
15 resources. Additionally, the annual spending plans of each
16 Organizational Unit shall describe how the Organizational
17 Unit expects to achieve student growth and how the
18 Organizational Unit will achieve State education goals, as
19 defined by the State Board. The State Superintendent may,
20 from time to time, identify additional requisites for
21 Organizational Units to satisfy when compiling the annual
22 spending plans required under this subsection (h). The
23 format and scope of annual spending plans shall be
24 developed by the State Superintendent in conjunction with
25 the Professional Review Panel. School districts that serve
26 students under Article 14C of this Code shall continue to

HB2553- 62 -LRB101 09406 AXK 54504 b
1 submit information as required under Section 14C-12 of this
2 Code.
3 (10) No later than January 1, 2018, the State
4 Superintendent shall develop a 5-year strategic plan for
5 all Organizational Units to help in planning for adequacy
6 funding under this Section. The State Superintendent shall
7 submit the plan to the Governor and the General Assembly,
8 as provided in Section 3.1 of the General Assembly
9 Organization Act. The plan shall include recommendations
10 for:
11 (A) a framework for collaborative, professional,
12 innovative, and 21st century learning environments
13 using the Evidence-Based Funding model;
14 (B) ways to prepare and support this State's
15 educators for successful instructional careers;
16 (C) application and enhancement of the current
17 financial accountability measures, the approved State
18 plan to comply with the federal Every Student Succeeds
19 Act, and the Illinois Balanced Accountability Measures
20 in relation to student growth and elements of the
21 Evidence-Based Funding model; and
22 (D) implementation of an effective school adequacy
23 funding system based on projected and recommended
24 funding levels from the General Assembly.
25 (i) Professional Review Panel.
26 (1) A Professional Review Panel is created to study and

HB2553- 63 -LRB101 09406 AXK 54504 b
1 review the implementation and effect of the Evidence-Based
2 Funding model under this Section and to recommend continual
3 recalibration and future study topics and modifications to
4 the Evidence-Based Funding model. The Panel shall elect a
5 chairperson and vice chairperson by a majority vote of the
6 Panel and shall advance recommendations based on a majority
7 vote of the Panel. A minority opinion may also accompany
8 any recommendation of the majority of the Panel. The Panel
9 shall be appointed by the State Superintendent, except as
10 otherwise provided in paragraph (2) of this subsection (i)
11 and include the following members:
12 (A) Two appointees that represent district
13 superintendents, recommended by a statewide
14 organization that represents district superintendents.
15 (B) Two appointees that represent school boards,
16 recommended by a statewide organization that
17 represents school boards.
18 (C) Two appointees from districts that represent
19 school business officials, recommended by a statewide
20 organization that represents school business
21 officials.
22 (D) Two appointees that represent school
23 principals, recommended by a statewide organization
24 that represents school principals.
25 (E) Two appointees that represent teachers,
26 recommended by a statewide organization that

HB2553- 64 -LRB101 09406 AXK 54504 b
1 represents teachers.
2 (F) Two appointees that represent teachers,
3 recommended by another statewide organization that
4 represents teachers.
5 (G) Two appointees that represent regional
6 superintendents of schools, recommended by
7 organizations that represent regional superintendents.
8 (H) Two independent experts selected solely by the
9 State Superintendent.
10 (I) Two independent experts recommended by public
11 universities in this State.
12 (J) One member recommended by a statewide
13 organization that represents parents.
14 (K) Two representatives recommended by collective
15 impact organizations that represent major metropolitan
16 areas or geographic areas in Illinois.
17 (L) One member from a statewide organization
18 focused on research-based education policy to support
19 a school system that prepares all students for college,
20 a career, and democratic citizenship.
21 (M) One representative from a school district
22 organized under Article 34 of this Code.
23 The State Superintendent shall ensure that the
24 membership of the Panel includes representatives from
25 school districts and communities reflecting the
26 geographic, socio-economic, racial, and ethnic diversity

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1 of this State. The State Superintendent shall additionally
2 ensure that the membership of the Panel includes
3 representatives with expertise in bilingual education and
4 special education. Staff from the State Board shall staff
5 the Panel.
6 (2) In addition to those Panel members appointed by the
7 State Superintendent, 4 members of the General Assembly
8 shall be appointed as follows: one member of the House of
9 Representatives appointed by the Speaker of the House of
10 Representatives, one member of the Senate appointed by the
11 President of the Senate, one member of the House of
12 Representatives appointed by the Minority Leader of the
13 House of Representatives, and one member of the Senate
14 appointed by the Minority Leader of the Senate. There shall
15 be one additional member appointed by the Governor. All
16 members appointed by legislative leaders or the Governor
17 shall be non-voting, ex officio members.
18 (3) On an annual basis, the State Superintendent shall
19 recalibrate the following per pupil elements of the
20 Adequacy Target and applied to the formulas, based on the
21 Panel's study of average expenses as reported in the most
22 recent annual financial report:
23 (A) gifted under subparagraph (M) of paragraph (2)
24 of subsection (b) of this Section;
25 (B) instructional materials under subparagraph (O)
26 of paragraph (2) of subsection (b) of this Section;

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1 (C) assessment under subparagraph (P) of paragraph
2 (2) of subsection (b) of this Section;
3 (D) student activities under subparagraph (R) of
4 paragraph (2) of subsection (b) of this Section;
5 (E) maintenance and operations under subparagraph
6 (S) of paragraph (2) of subsection (b) of this Section;
7 and
8 (F) central office under subparagraph (T) of
9 paragraph (2) of subsection (b) of this Section.
10 (4) On a periodic basis, the Panel shall study all the
11 following elements and make recommendations to the State
12 Board, the General Assembly, and the Governor for
13 modification of this Section:
14 (A) The format and scope of annual spending plans
15 referenced in paragraph (9) of subsection (h) of this
16 Section.
17 (B) The Comparable Wage Index under this Section,
18 to be studied by the Panel and reestablished by the
19 State Superintendent every 5 years.
20 (C) Maintenance and operations. Within 5 years
21 after the implementation of this Section, the Panel
22 shall make recommendations for the further study of
23 maintenance and operations costs, including capital
24 maintenance costs, and recommend any additional
25 reporting data required from Organizational Units.
26 (D) "At-risk student" definition. Within 5 years

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1 after the implementation of this Section, the Panel
2 shall make recommendations for the further study and
3 determination of an "at-risk student" definition.
4 Within 5 years after the implementation of this
5 Section, the Panel shall evaluate and make
6 recommendations regarding adequate funding for poverty
7 concentration under the Evidence-Based Funding model.
8 (E) Benefits. Within 5 years after the
9 implementation of this Section, the Panel shall make
10 recommendations for further study of benefit costs.
11 (F) Technology. The per pupil target for
12 technology shall be reviewed every 3 years to determine
13 whether current allocations are sufficient to develop
14 21st century learning in all classrooms in this State
15 and supporting a one-to-one technological device
16 program in each school. Recommendations shall be made
17 no later than 3 years after the implementation of this
18 Section.
19 (G) Local Capacity Target. Within 3 years after the
20 implementation of this Section, the Panel shall make
21 recommendations for any additional data desired to
22 analyze possible modifications to the Local Capacity
23 Target, to be based on measures in addition to solely
24 EAV and to be completed within 5 years after
25 implementation of this Section.
26 (H) Funding for Alternative Schools, Laboratory

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1 Schools, safe schools, and alternative learning
2 opportunities programs. By the beginning of the
3 2021-2022 school year, the Panel shall study and make
4 recommendations regarding the funding levels for
5 Alternative Schools, Laboratory Schools, safe schools,
6 and alternative learning opportunities programs in
7 this State.
8 (I) Funding for college and career acceleration
9 strategies. By the beginning of the 2021-2022 school
10 year, the Panel shall study and make recommendations
11 regarding funding levels to support college and career
12 acceleration strategies in high school that have been
13 demonstrated to result in improved secondary and
14 postsecondary outcomes, including Advanced Placement,
15 dual-credit opportunities, and college and career
16 pathway systems.
17 (J) Special education investments. By the
18 beginning of the 2021-2022 school year, the Panel shall
19 study and make recommendations on whether and how to
20 account for disability types within the special
21 education funding category.
22 (K) Early childhood investments. In collaboration
23 with the Illinois Early Learning Council, the Panel
24 shall include an analysis of what level of Preschool
25 for All Children funding would be necessary to serve
26 all children ages 0 through 5 years in the

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1 highest-priority service tier, as specified in
2 paragraph (4.5) of subsection (a) of Section 2-3.71 of
3 this Code, and an analysis of the potential cost
4 savings that that level of Preschool for All Children
5 investment would have on the kindergarten through
6 grade 12 system.
7 (5) Within 5 years after the implementation of this
8 Section, the Panel shall complete an evaluative study of
9 the entire Evidence-Based Funding model, including an
10 assessment of whether or not the formula is achieving State
11 goals. The Panel shall report to the State Board, the
12 General Assembly, and the Governor on the findings of the
13 study.
14 (6) Within 3 years after the implementation of this
15 Section, the Panel shall evaluate and provide
16 recommendations to the Governor and the General Assembly on
17 the hold-harmless provisions of this Section found in the
18 Base Funding Minimum.
19 (j) References. Beginning July 1, 2017, references in other
20laws to general State aid funds or calculations under Section
2118-8.05 of this Code (now repealed) shall be deemed to be
22references to evidence-based model formula funds or
23calculations under this Section.
24(Source: P.A. 100-465, eff. 8-31-17; 100-578, eff. 1-31-18;
25100-582, eff. 3-23-18.)

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1 Section 90. The State Mandates Act is amended by adding
2Section 8.43 as follows:
3 (30 ILCS 805/8.43 new)
4 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 101st General Assembly.
8 Section 99. Effective date. This Act takes effect upon
9becoming law.
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