Bill Text: IL HB3446 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the contents of the introduced bill with the following changes. Removes the provisions concerning school report cards. In the provisions concerning the evidence-based funding formula, provides that organizational units that do not submit a budget to the State Board of Education shall be provided with a separate planning template developed by the State Board of Education. Provides that the State Board of Education shall create an evidence-based funding spending plan tool to make annual evidence-based funding spending plan data for each organizational unit available on the State Board's website no later than December 31, 2025, with annual updates thereafter. Provides that the tool shall allow for the selection and review of each organizational unit's planned use of evidence-based funding. Corrects grammatical errors.

Spectrum: Bipartisan Bill

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0802 [HB3446 Detail]

Download: Illinois-2023-HB3446-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3446 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
105 ILCS 5/10-17a from Ch. 122, par. 10-17a
105 ILCS 5/18-8.15
Amends the School Boards Article of the School Code. In provisions concerning the school report card, provides that a school district's expenditure of Base Funding Minimum and Evidence-Based Funding received from the State in the level of specificity required by the annual spending plans required by the Evidence-Based Funding provisions. In provisions concerning Evidence-Based funding, provides that Organizational Units shall also indicate in their submission of annual spending plans which stakeholder groups the Organizational Unit engaged with to inform annual spending plans. Provides that annual spending plans shall be integrated in annual school district budgets completed pursuant to specified provisions.
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A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Sections
10-17a and 18-8.15 as follows:
(105 ILCS 5/10-17a) (from Ch. 122, par. 10-17a)
Sec. 10-17a. State, school district, and school report
cards.
(1) By October 31, 2013 and October 31 of each subsequent
school year, the State Board of Education, through the State
Superintendent of Education, shall prepare a State report
card, school district report cards, and school report cards,
and shall by the most economical means provide to each school
district in this State, including special charter districts
and districts subject to the provisions of Article 34, the
report cards for the school district and each of its schools.
Because of the impacts of the COVID-19 public health emergency
during school year 2020-2021, the State Board of Education
shall have until December 31, 2021 to prepare and provide the
report cards that would otherwise be due by October 31, 2021.
During a school year in which the Governor has declared a
disaster due to a public health emergency pursuant to Section
7 of the Illinois Emergency Management Agency Act, the report

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cards for the school districts and each of its schools shall be
prepared by December 31.
(2) In addition to any information required by federal
law, the State Superintendent shall determine the indicators
and presentation of the school report card, which must
include, at a minimum, the most current data collected and
maintained by the State Board of Education related to the
following:
(A) school characteristics and student demographics,
including average class size, average teaching experience,
student racial/ethnic breakdown, and the percentage of
students classified as low-income; the percentage of
students classified as English learners, the number of
students who graduate from a bilingual or English learner
program, and the number of students who graduate from,
transfer from, or otherwise leave bilingual programs; the
percentage of students who have individualized education
plans or 504 plans that provide for special education
services; the number and percentage of all students who
have been assessed for placement in a gifted education or
advanced academic program and, of those students: (i) the
racial and ethnic breakdown, (ii) the percentage who are
classified as low-income, and (iii) the number and
percentage of students who received direct instruction
from a teacher who holds a gifted education endorsement
and, of those students, the percentage who are classified

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as low-income; the percentage of students scoring at the
"exceeds expectations" level on the assessments required
under Section 2-3.64a-5 of this Code; the percentage of
students who annually transferred in or out of the school
district; average daily attendance; the per-pupil
operating expenditure of the school district; and the
per-pupil State average operating expenditure for the
district type (elementary, high school, or unit);
(B) curriculum information, including, where
applicable, Advanced Placement, International
Baccalaureate or equivalent courses, dual enrollment
courses, foreign language classes, computer science
courses, school personnel resources (including Career
Technical Education teachers), before and after school
programs, extracurricular activities, subjects in which
elective classes are offered, health and wellness
initiatives (including the average number of days of
Physical Education per week per student), approved
programs of study, awards received, community
partnerships, and special programs such as programming for
the gifted and talented, students with disabilities, and
work-study students;
(C) student outcomes, including, where applicable, the
percentage of students deemed proficient on assessments of
State standards, the percentage of students in the eighth
grade who pass Algebra, the percentage of students who

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participated in workplace learning experiences, the
percentage of students enrolled in post-secondary
institutions (including colleges, universities, community
colleges, trade/vocational schools, and training programs
leading to career certification within 2 semesters of high
school graduation), the percentage of students graduating
from high school who are college and career ready, and the
percentage of graduates enrolled in community colleges,
colleges, and universities who are in one or more courses
that the community college, college, or university
identifies as a developmental course;
(D) student progress, including, where applicable, the
percentage of students in the ninth grade who have earned
5 credits or more without failing more than one core
class, a measure of students entering kindergarten ready
to learn, a measure of growth, and the percentage of
students who enter high school on track for college and
career readiness;
(E) the school environment, including, where
applicable, high school dropout rate by grade level, the
percentage of students with less than 10 absences in a
school year, the percentage of teachers with less than 10
absences in a school year for reasons other than
professional development, leaves taken pursuant to the
federal Family Medical Leave Act of 1993, long-term
disability, or parental leaves, the 3-year average of the

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percentage of teachers returning to the school from the
previous year, the number of different principals at the
school in the last 6 years, the number of teachers who hold
a gifted education endorsement, the process and criteria
used by the district to determine whether a student is
eligible for participation in a gifted education program
or advanced academic program and the manner in which
parents and guardians are made aware of the process and
criteria, the number of teachers who are National Board
Certified Teachers, disaggregated by race and ethnicity, 2
or more indicators from any school climate survey selected
or approved by the State and administered pursuant to
Section 2-3.153 of this Code, with the same or similar
indicators included on school report cards for all surveys
selected or approved by the State pursuant to Section
2-3.153 of this Code, the combined percentage of teachers
rated as proficient or excellent in their most recent
evaluation, and, beginning with the 2022-2023 school year,
data on the number of incidents of violence that occurred
on school grounds or during school-related activities and
that resulted in an out-of-school suspension, expulsion,
or removal to an alternative setting, as reported pursuant
to Section 2-3.162;
(F) a school district's and its individual schools'
balanced accountability measure, in accordance with
Section 2-3.25a of this Code;

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(G) the total and per pupil normal cost amount the
State contributed to the Teachers' Retirement System of
the State of Illinois in the prior fiscal year for the
school's employees, which shall be reported to the State
Board of Education by the Teachers' Retirement System of
the State of Illinois;
(H) for a school district organized under Article 34
of this Code only, State contributions to the Public
School Teachers' Pension and Retirement Fund of Chicago
and State contributions for health care for employees of
that school district;
(I) a school district's Final Percent of Adequacy, as
defined in paragraph (4) of subsection (f) of Section
18-8.15 of this Code;
(J) a school district's Local Capacity Target, as
defined in paragraph (2) of subsection (c) of Section
18-8.15 of this Code, displayed as a percentage amount;
(K) a school district's Real Receipts, as defined in
paragraph (1) of subsection (d) of Section 18-8.15 of this
Code, divided by a school district's Adequacy Target, as
defined in paragraph (1) of subsection (b) of Section
18-8.15 of this Code, displayed as a percentage amount;
(L) a school district's administrative costs;
(M) whether or not the school has participated in the
Illinois Youth Survey. In this paragraph (M), "Illinois
Youth Survey" means a self-report survey, administered in

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school settings every 2 years, designed to gather
information about health and social indicators, including
substance abuse patterns and the attitudes of students in
grades 8, 10, and 12; and
(N) whether the school offered its students career and
technical education opportunities.
The school report card shall also provide information that
allows for comparing the current outcome, progress, and
environment data to the State average, to the school data from
the past 5 years, and to the outcomes, progress, and
environment of similar schools based on the type of school and
enrollment of low-income students, special education students,
and English learners; and .
(O) a school district's expenditure of Base Funding
Minimum and Evidence-Based Funding received from the State
under Section 18-8.15 in the level of specificity required
by the annual spending plans mandated by subsection (h) of
Section 18-8.15.
As used in this subsection (2):
"Administrative costs" means costs associated with
executive, administrative, or managerial functions within the
school district that involve planning, organizing, managing,
or directing the school district.
"Advanced academic program" means a course of study to
which students are assigned based on advanced cognitive
ability or advanced academic achievement compared to local age

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peers and in which the curriculum is substantially
differentiated from the general curriculum to provide
appropriate challenge and pace.
"Computer science" means the study of computers and
algorithms, including their principles, their hardware and
software designs, their implementation, and their impact on
society. "Computer science" does not include the study of
everyday uses of computers and computer applications, such as
keyboarding or accessing the Internet.
"Gifted education" means educational services, including
differentiated curricula and instructional methods, designed
to meet the needs of gifted children as defined in Article 14A
of this Code.
For the purposes of paragraph (A) of this subsection (2),
"average daily attendance" means the average of the actual
number of attendance days during the previous school year for
any enrolled student who is subject to compulsory attendance
by Section 26-1 of this Code at each school and charter school.
(3) At the discretion of the State Superintendent, the
school district report card shall include a subset of the
information identified in paragraphs (A) through (E) of
subsection (2) of this Section, as well as information
relating to the operating expense per pupil and other finances
of the school district, and the State report card shall
include a subset of the information identified in paragraphs
(A) through (E) and paragraph (N) of subsection (2) of this

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Section. The school district report card shall include the
average daily attendance, as that term is defined in
subsection (2) of this Section, of students who have
individualized education programs and students who have 504
plans that provide for special education services within the
school district.
(4) Notwithstanding anything to the contrary in this
Section, in consultation with key education stakeholders, the
State Superintendent shall at any time have the discretion to
amend or update any and all metrics on the school, district, or
State report card.
(5) Annually, no more than 30 calendar days after receipt
of the school district and school report cards from the State
Superintendent of Education, each school district, including
special charter districts and districts subject to the
provisions of Article 34, shall present such report cards at a
regular school board meeting subject to applicable notice
requirements, post the report cards on the school district's
Internet web site, if the district maintains an Internet web
site, make the report cards available to a newspaper of
general circulation serving the district, and, upon request,
send the report cards home to a parent (unless the district
does not maintain an Internet web site, in which case the
report card shall be sent home to parents without request). If
the district posts the report card on its Internet web site,
the district shall send a written notice home to parents

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stating (i) that the report card is available on the web site,
(ii) the address of the web site, (iii) that a printed copy of
the report card will be sent to parents upon request, and (iv)
the telephone number that parents may call to request a
printed copy of the report card.
(6) Nothing contained in Public Act 98-648 repeals,
supersedes, invalidates, or nullifies final decisions in
lawsuits pending on July 1, 2014 (the effective date of Public
Act 98-648) in Illinois courts involving the interpretation of
Public Act 97-8.
(Source: P.A. 101-68, eff. 1-1-20; 101-81, eff. 7-12-19;
101-654, eff. 3-8-21; 102-16, eff. 6-17-21; 102-294, eff.
1-1-22; 102-539, eff. 8-20-21; 102-558, eff. 8-20-21; 102-594,
eff. 7-1-22; 102-813, eff. 5-13-22.)
(105 ILCS 5/18-8.15)
Sec. 18-8.15. Evidence-Based Funding for student success
for the 2017-2018 and subsequent school years.
(a) General provisions.
(1) The purpose of this Section is to ensure that, by
June 30, 2027 and beyond, this State has a kindergarten
through grade 12 public education system with the capacity
to ensure the educational development of all persons to
the limits of their capacities in accordance with Section
1 of Article X of the Constitution of the State of
Illinois. To accomplish that objective, this Section

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creates a method of funding public education that is
evidence-based; is sufficient to ensure every student
receives a meaningful opportunity to learn irrespective of
race, ethnicity, sexual orientation, gender, or
community-income level; and is sustainable and
predictable. When fully funded under this Section, every
school shall have the resources, based on what the
evidence indicates is needed, to:
(A) provide all students with a high quality
education that offers the academic, enrichment, social
and emotional support, technical, and career-focused
programs that will allow them to become competitive
workers, responsible parents, productive citizens of
this State, and active members of our national
democracy;
(B) ensure all students receive the education they
need to graduate from high school with the skills
required to pursue post-secondary education and
training for a rewarding career;
(C) reduce, with a goal of eliminating, the
achievement gap between at-risk and non-at-risk
students by raising the performance of at-risk
students and not by reducing standards; and
(D) ensure this State satisfies its obligation to
assume the primary responsibility to fund public
education and simultaneously relieve the

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disproportionate burden placed on local property taxes
to fund schools.
(2) The Evidence-Based Funding formula under this
Section shall be applied to all Organizational Units in
this State. The Evidence-Based Funding formula outlined in
this Act is based on the formula outlined in Senate Bill 1
of the 100th General Assembly, as passed by both
legislative chambers. As further defined and described in
this Section, there are 4 major components of the
Evidence-Based Funding model:
(A) First, the model calculates a unique Adequacy
Target for each Organizational Unit in this State that
considers the costs to implement research-based
activities, the unit's student demographics, and
regional wage differences.
(B) Second, the model calculates each
Organizational Unit's Local Capacity, or the amount
each Organizational Unit is assumed to contribute
toward its Adequacy Target from local resources.
(C) Third, the model calculates how much funding
the State currently contributes to the Organizational
Unit and adds that to the unit's Local Capacity to
determine the unit's overall current adequacy of
funding.
(D) Finally, the model's distribution method
allocates new State funding to those Organizational

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Units that are least well-funded, considering both
Local Capacity and State funding, in relation to their
Adequacy Target.
(3) An Organizational Unit receiving any funding under
this Section may apply those funds to any fund so received
for which that Organizational Unit is authorized to make
expenditures by law.
(4) As used in this Section, the following terms shall
have the meanings ascribed in this paragraph (4):
"Adequacy Target" is defined in paragraph (1) of
subsection (b) of this Section.
"Adjusted EAV" is defined in paragraph (4) of
subsection (d) of this Section.
"Adjusted Local Capacity Target" is defined in
paragraph (3) of subsection (c) of this Section.
"Adjusted Operating Tax Rate" means a tax rate for all
Organizational Units, for which the State Superintendent
shall calculate and subtract for the Operating Tax Rate a
transportation rate based on total expenses for
transportation services under this Code, as reported on
the most recent Annual Financial Report in Pupil
Transportation Services, function 2550 in both the
Education and Transportation funds and functions 4110 and
4120 in the Transportation fund, less any corresponding
fiscal year State of Illinois scheduled payments excluding
net adjustments for prior years for regular, vocational,

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or special education transportation reimbursement pursuant
to Section 29-5 or subsection (b) of Section 14-13.01 of
this Code divided by the Adjusted EAV. If an
Organizational Unit's corresponding fiscal year State of
Illinois scheduled payments excluding net adjustments for
prior years for regular, vocational, or special education
transportation reimbursement pursuant to Section 29-5 or
subsection (b) of Section 14-13.01 of this Code exceed the
total transportation expenses, as defined in this
paragraph, no transportation rate shall be subtracted from
the Operating Tax Rate.
"Allocation Rate" is defined in paragraph (3) of
subsection (g) of this Section.
"Alternative School" means a public school that is
created and operated by a regional superintendent of
schools and approved by the State Board.
"Applicable Tax Rate" is defined in paragraph (1) of
subsection (d) of this Section.
"Assessment" means any of those benchmark, progress
monitoring, formative, diagnostic, and other assessments,
in addition to the State accountability assessment, that
assist teachers' needs in understanding the skills and
meeting the needs of the students they serve.
"Assistant principal" means a school administrator
duly endorsed to be employed as an assistant principal in
this State.

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"At-risk student" means a student who is at risk of
not meeting the Illinois Learning Standards or not
graduating from elementary or high school and who
demonstrates a need for vocational support or social
services beyond that provided by the regular school
program. All students included in an Organizational Unit's
Low-Income Count, as well as all English learner and
disabled students attending the Organizational Unit, shall
be considered at-risk students under this Section.
"Average Student Enrollment" or "ASE" for fiscal year
2018 means, for an Organizational Unit, the greater of the
average number of students (grades K through 12) reported
to the State Board as enrolled in the Organizational Unit
on October 1 in the immediately preceding school year,
plus the pre-kindergarten students who receive special
education services of 2 or more hours a day as reported to
the State Board on December 1 in the immediately preceding
school year, or the average number of students (grades K
through 12) reported to the State Board as enrolled in the
Organizational Unit on October 1, plus the
pre-kindergarten students who receive special education
services of 2 or more hours a day as reported to the State
Board on December 1, for each of the immediately preceding
3 school years. For fiscal year 2019 and each subsequent
fiscal year, "Average Student Enrollment" or "ASE" means,
for an Organizational Unit, the greater of the average

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number of students (grades K through 12) reported to the
State Board as enrolled in the Organizational Unit on
October 1 and March 1 in the immediately preceding school
year, plus the pre-kindergarten students who receive
special education services as reported to the State Board
on October 1 and March 1 in the immediately preceding
school year, or the average number of students (grades K
through 12) reported to the State Board as enrolled in the
Organizational Unit on October 1 and March 1, plus the
pre-kindergarten students who receive special education
services as reported to the State Board on October 1 and
March 1, for each of the immediately preceding 3 school
years. For the purposes of this definition, "enrolled in
the Organizational Unit" means the number of students
reported to the State Board who are enrolled in schools
within the Organizational Unit that the student attends or
would attend if not placed or transferred to another
school or program to receive needed services. For the
purposes of calculating "ASE", all students, grades K
through 12, excluding those attending kindergarten for a
half day and students attending an alternative education
program operated by a regional office of education or
intermediate service center, shall be counted as 1.0. All
students attending kindergarten for a half day shall be
counted as 0.5, unless in 2017 by June 15 or by March 1 in
subsequent years, the school district reports to the State

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Board of Education the intent to implement full-day
kindergarten district-wide for all students, then all
students attending kindergarten shall be counted as 1.0.
Special education pre-kindergarten students shall be
counted as 0.5 each. If the State Board does not collect or
has not collected both an October 1 and March 1 enrollment
count by grade or a December 1 collection of special
education pre-kindergarten students as of August 31, 2017
(the effective date of Public Act 100-465), it shall
establish such collection for all future years. For any
year in which a count by grade level was collected only
once, that count shall be used as the single count
available for computing a 3-year average ASE. Funding for
programs operated by a regional office of education or an
intermediate service center must be calculated using the
Evidence-Based Funding formula under this Section for the
2019-2020 school year and each subsequent school year
until separate adequacy formulas are developed and adopted
for each type of program. ASE for a program operated by a
regional office of education or an intermediate service
center must be determined by the March 1 enrollment for
the program. For the 2019-2020 school year, the ASE used
in the calculation must be the first-year ASE and, in that
year only, the assignment of students served by a regional
office of education or intermediate service center shall
not result in a reduction of the March enrollment for any

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school district. For the 2020-2021 school year, the ASE
must be the greater of the current-year ASE or the 2-year
average ASE. Beginning with the 2021-2022 school year, the
ASE must be the greater of the current-year ASE or the
3-year average ASE. School districts shall submit the data
for the ASE calculation to the State Board within 45 days
of the dates required in this Section for submission of
enrollment data in order for it to be included in the ASE
calculation. For fiscal year 2018 only, the ASE
calculation shall include only enrollment taken on October
1. In recognition of the impact of COVID-19, the
definition of "Average Student Enrollment" or "ASE" shall
be adjusted for calculations under this Section for fiscal
years 2022 through 2024. For fiscal years 2022 through
2024, the enrollment used in the calculation of ASE
representing the 2020-2021 school year shall be the
greater of the enrollment for the 2020-2021 school year or
the 2019-2020 school year.
"Base Funding Guarantee" is defined in paragraph (10)
of subsection (g) of this Section.
"Base Funding Minimum" is defined in subsection (e) of
this Section.
"Base Tax Year" means the property tax levy year used
to calculate the Budget Year allocation of primary State
aid.
"Base Tax Year's Extension" means the product of the

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equalized assessed valuation utilized by the county clerk
in the Base Tax Year multiplied by the limiting rate as
calculated by the county clerk and defined in PTELL.
"Bilingual Education Allocation" means the amount of
an Organizational Unit's final Adequacy Target
attributable to bilingual education divided by the
Organizational Unit's final Adequacy Target, the product
of which shall be multiplied by the amount of new funding
received pursuant to this Section. An Organizational
Unit's final Adequacy Target attributable to bilingual
education shall include all additional investments in
English learner students' adequacy elements.
"Budget Year" means the school year for which primary
State aid is calculated and awarded under this Section.
"Central office" means individual administrators and
support service personnel charged with managing the
instructional programs, business and operations, and
security of the Organizational Unit.
"Comparable Wage Index" or "CWI" means a regional cost
differentiation metric that measures systemic, regional
variations in the salaries of college graduates who are
not educators. The CWI utilized for this Section shall,
for the first 3 years of Evidence-Based Funding
implementation, be the CWI initially developed by the
National Center for Education Statistics, as most recently
updated by Texas A & M University. In the fourth and

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subsequent years of Evidence-Based Funding implementation,
the State Superintendent shall re-determine the CWI using
a similar methodology to that identified in the Texas A & M
University study, with adjustments made no less frequently
than once every 5 years.
"Computer technology and equipment" means computers
servers, notebooks, network equipment, copiers, printers,
instructional software, security software, curriculum
management courseware, and other similar materials and
equipment.
"Computer technology and equipment investment
allocation" means the final Adequacy Target amount of an
Organizational Unit assigned to Tier 1 or Tier 2 in the
prior school year attributable to the additional $285.50
per student computer technology and equipment investment
grant divided by the Organizational Unit's final Adequacy
Target, the result of which shall be multiplied by the
amount of new funding received pursuant to this Section.
An Organizational Unit assigned to a Tier 1 or Tier 2 final
Adequacy Target attributable to the received computer
technology and equipment investment grant shall include
all additional investments in computer technology and
equipment adequacy elements.
"Core subject" means mathematics; science; reading,
English, writing, and language arts; history and social
studies; world languages; and subjects taught as Advanced

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Placement in high schools.
"Core teacher" means a regular classroom teacher in
elementary schools and teachers of a core subject in
middle and high schools.
"Core Intervention teacher (tutor)" means a licensed
teacher providing one-on-one or small group tutoring to
students struggling to meet proficiency in core subjects.
"CPPRT" means corporate personal property replacement
tax funds paid to an Organizational Unit during the
calendar year one year before the calendar year in which a
school year begins, pursuant to "An Act in relation to the
abolition of ad valorem personal property tax and the
replacement of revenues lost thereby, and amending and
repealing certain Acts and parts of Acts in connection
therewith", certified August 14, 1979, as amended (Public
Act 81-1st S.S.-1).
"EAV" means equalized assessed valuation as defined in
paragraph (2) of subsection (d) of this Section and
calculated in accordance with paragraph (3) of subsection
(d) of this Section.
"ECI" means the Bureau of Labor Statistics' national
employment cost index for civilian workers in educational
services in elementary and secondary schools on a
cumulative basis for the 12-month calendar year preceding
the fiscal year of the Evidence-Based Funding calculation.
"EIS Data" means the employment information system

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data maintained by the State Board on educators within
Organizational Units.
"Employee benefits" means health, dental, and vision
insurance offered to employees of an Organizational Unit,
the costs associated with the statutorily required payment
of the normal cost of the Organizational Unit's teacher
pensions, Social Security employer contributions, and
Illinois Municipal Retirement Fund employer contributions.
"English learner" or "EL" means a child included in
the definition of "English learners" under Section 14C-2
of this Code participating in a program of transitional
bilingual education or a transitional program of
instruction meeting the requirements and program
application procedures of Article 14C of this Code. For
the purposes of collecting the number of EL students
enrolled, the same collection and calculation methodology
as defined above for "ASE" shall apply to English
learners, with the exception that EL student enrollment
shall include students in grades pre-kindergarten through
12.
"Essential Elements" means those elements, resources,
and educational programs that have been identified through
academic research as necessary to improve student success,
improve academic performance, close achievement gaps, and
provide for other per student costs related to the
delivery and leadership of the Organizational Unit, as

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well as the maintenance and operations of the unit, and
which are specified in paragraph (2) of subsection (b) of
this Section.
"Evidence-Based Funding" means State funding provided
to an Organizational Unit pursuant to this Section.
"Extended day" means academic and enrichment programs
provided to students outside the regular school day before
and after school or during non-instructional times during
the school day.
"Extension Limitation Ratio" means a numerical ratio
in which the numerator is the Base Tax Year's Extension
and the denominator is the Preceding Tax Year's Extension.
"Final Percent of Adequacy" is defined in paragraph
(4) of subsection (f) of this Section.
"Final Resources" is defined in paragraph (3) of
subsection (f) of this Section.
"Full-time equivalent" or "FTE" means the full-time
equivalency compensation for staffing the relevant
position at an Organizational Unit.
"Funding Gap" is defined in paragraph (1) of
subsection (g).
"Hybrid District" means a partial elementary unit
district created pursuant to Article 11E of this Code.
"Instructional assistant" means a core or special
education, non-licensed employee who assists a teacher in
the classroom and provides academic support to students.

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"Instructional facilitator" means a qualified teacher
or licensed teacher leader who facilitates and coaches
continuous improvement in classroom instruction; provides
instructional support to teachers in the elements of
research-based instruction or demonstrates the alignment
of instruction with curriculum standards and assessment
tools; develops or coordinates instructional programs or
strategies; develops and implements training; chooses
standards-based instructional materials; provides
teachers with an understanding of current research; serves
as a mentor, site coach, curriculum specialist, or lead
teacher; or otherwise works with fellow teachers, in
collaboration, to use data to improve instructional
practice or develop model lessons.
"Instructional materials" means relevant
instructional materials for student instruction,
including, but not limited to, textbooks, consumable
workbooks, laboratory equipment, library books, and other
similar materials.
"Laboratory School" means a public school that is
created and operated by a public university and approved
by the State Board.
"Librarian" means a teacher with an endorsement as a
library information specialist or another individual whose
primary responsibility is overseeing library resources
within an Organizational Unit.

HB3446 - 25 - LRB103 29421 RJT 55812 b
"Limiting rate for Hybrid Districts" means the
combined elementary school and high school limiting rates.
"Local Capacity" is defined in paragraph (1) of
subsection (c) of this Section.
"Local Capacity Percentage" is defined in subparagraph
(A) of paragraph (2) of subsection (c) of this Section.
"Local Capacity Ratio" is defined in subparagraph (B)
of paragraph (2) of subsection (c) of this Section.
"Local Capacity Target" is defined in paragraph (2) of
subsection (c) of this Section.
"Low-Income Count" means, for an Organizational Unit
in a fiscal year, the higher of the average number of
students for the prior school year or the immediately
preceding 3 school years who, as of July 1 of the
immediately preceding fiscal year (as determined by the
Department of Human Services), are eligible for at least
one of the following low-income programs: Medicaid, the
Children's Health Insurance Program, Temporary Assistance
for Needy Families (TANF), or the Supplemental Nutrition
Assistance Program, excluding pupils who are eligible for
services provided by the Department of Children and Family
Services. Until such time that grade level low-income
populations become available, grade level low-income
populations shall be determined by applying the low-income
percentage to total student enrollments by grade level.
The low-income percentage is determined by dividing the

HB3446 - 26 - LRB103 29421 RJT 55812 b
Low-Income Count by the Average Student Enrollment. The
low-income percentage for programs operated by a regional
office of education or an intermediate service center must
be set to the weighted average of the low-income
percentages of all of the school districts in the service
region. The weighted low-income percentage is the result
of multiplying the low-income percentage of each school
district served by the regional office of education or
intermediate service center by each school district's
Average Student Enrollment, summarizing those products and
dividing the total by the total Average Student Enrollment
for the service region.
"Maintenance and operations" means custodial services,
facility and ground maintenance, facility operations,
facility security, routine facility repairs, and other
similar services and functions.
"Minimum Funding Level" is defined in paragraph (9) of
subsection (g) of this Section.
"New Property Tax Relief Pool Funds" means, for any
given fiscal year, all State funds appropriated under
Section 2-3.170 of this Code.
"New State Funds" means, for a given school year, all
State funds appropriated for Evidence-Based Funding in
excess of the amount needed to fund the Base Funding
Minimum for all Organizational Units in that school year.
"Nurse" means an individual licensed as a certified

HB3446 - 27 - LRB103 29421 RJT 55812 b
school nurse, in accordance with the rules established for
nursing services by the State Board, who is an employee of
and is available to provide health care-related services
for students of an Organizational Unit.
"Operating Tax Rate" means the rate utilized in the
previous year to extend property taxes for all purposes,
except Bond and Interest, Summer School, Rent, Capital
Improvement, and Vocational Education Building purposes.
For Hybrid Districts, the Operating Tax Rate shall be the
combined elementary and high school rates utilized in the
previous year to extend property taxes for all purposes,
except Bond and Interest, Summer School, Rent, Capital
Improvement, and Vocational Education Building purposes.
"Organizational Unit" means a Laboratory School or any
public school district that is recognized as such by the
State Board and that contains elementary schools typically
serving kindergarten through 5th grades, middle schools
typically serving 6th through 8th grades, high schools
typically serving 9th through 12th grades, a program
established under Section 2-3.66 or 2-3.41, or a program
operated by a regional office of education or an
intermediate service center under Article 13A or 13B. The
General Assembly acknowledges that the actual grade levels
served by a particular Organizational Unit may vary
slightly from what is typical.
"Organizational Unit CWI" is determined by calculating

HB3446 - 28 - LRB103 29421 RJT 55812 b
the CWI in the region and original county in which an
Organizational Unit's primary administrative office is
located as set forth in this paragraph, provided that if
the Organizational Unit CWI as calculated in accordance
with this paragraph is less than 0.9, the Organizational
Unit CWI shall be increased to 0.9. Each county's current
CWI value shall be adjusted based on the CWI value of that
county's neighboring Illinois counties, to create a
"weighted adjusted index value". This shall be calculated
by summing the CWI values of all of a county's adjacent
Illinois counties and dividing by the number of adjacent
Illinois counties, then taking the weighted value of the
original county's CWI value and the adjacent Illinois
county average. To calculate this weighted value, if the
number of adjacent Illinois counties is greater than 2,
the original county's CWI value will be weighted at 0.25
and the adjacent Illinois county average will be weighted
at 0.75. If the number of adjacent Illinois counties is 2,
the original county's CWI value will be weighted at 0.33
and the adjacent Illinois county average will be weighted
at 0.66. The greater of the county's current CWI value and
its weighted adjusted index value shall be used as the
Organizational Unit CWI.
"Preceding Tax Year" means the property tax levy year
immediately preceding the Base Tax Year.
"Preceding Tax Year's Extension" means the product of

HB3446 - 29 - LRB103 29421 RJT 55812 b
the equalized assessed valuation utilized by the county
clerk in the Preceding Tax Year multiplied by the
Operating Tax Rate.
"Preliminary Percent of Adequacy" is defined in
paragraph (2) of subsection (f) of this Section.
"Preliminary Resources" is defined in paragraph (2) of
subsection (f) of this Section.
"Principal" means a school administrator duly endorsed
to be employed as a principal in this State.
"Professional development" means training programs for
licensed staff in schools, including, but not limited to,
programs that assist in implementing new curriculum
programs, provide data focused or academic assessment data
training to help staff identify a student's weaknesses and
strengths, target interventions, improve instruction,
encompass instructional strategies for English learner,
gifted, or at-risk students, address inclusivity, cultural
sensitivity, or implicit bias, or otherwise provide
professional support for licensed staff.
"Prototypical" means 450 special education
pre-kindergarten and kindergarten through grade 5 students
for an elementary school, 450 grade 6 through 8 students
for a middle school, and 600 grade 9 through 12 students
for a high school.
"PTELL" means the Property Tax Extension Limitation
Law.

HB3446 - 30 - LRB103 29421 RJT 55812 b
"PTELL EAV" is defined in paragraph (4) of subsection
(d) of this Section.
"Pupil support staff" means a nurse, psychologist,
social worker, family liaison personnel, or other staff
member who provides support to at-risk or struggling
students.
"Real Receipts" is defined in paragraph (1) of
subsection (d) of this Section.
"Regionalization Factor" means, for a particular
Organizational Unit, the figure derived by dividing the
Organizational Unit CWI by the Statewide Weighted CWI.
"School counselor" means a licensed school counselor
who provides guidance and counseling support for students
within an Organizational Unit.
"School site staff" means the primary school secretary
and any additional clerical personnel assigned to a
school.
"Special education" means special educational
facilities and services, as defined in Section 14-1.08 of
this Code.
"Special Education Allocation" means the amount of an
Organizational Unit's final Adequacy Target attributable
to special education divided by the Organizational Unit's
final Adequacy Target, the product of which shall be
multiplied by the amount of new funding received pursuant
to this Section. An Organizational Unit's final Adequacy

HB3446 - 31 - LRB103 29421 RJT 55812 b
Target attributable to special education shall include all
special education investment adequacy elements.
"Specialist teacher" means a teacher who provides
instruction in subject areas not included in core
subjects, including, but not limited to, art, music,
physical education, health, driver education,
career-technical education, and such other subject areas
as may be mandated by State law or provided by an
Organizational Unit.
"Specially Funded Unit" means an Alternative School,
safe school, Department of Juvenile Justice school,
special education cooperative or entity recognized by the
State Board as a special education cooperative,
State-approved charter school, or alternative learning
opportunities program that received direct funding from
the State Board during the 2016-2017 school year through
any of the funding sources included within the calculation
of the Base Funding Minimum or Glenwood Academy.
"Supplemental Grant Funding" means supplemental
general State aid funding received by an Organizational
Unit during the 2016-2017 school year pursuant to
subsection (H) of Section 18-8.05 of this Code (now
repealed).
"State Adequacy Level" is the sum of the Adequacy
Targets of all Organizational Units.
"State Board" means the State Board of Education.

HB3446 - 32 - LRB103 29421 RJT 55812 b
"State Superintendent" means the State Superintendent
of Education.
"Statewide Weighted CWI" means a figure determined by
multiplying each Organizational Unit CWI times the ASE for
that Organizational Unit creating a weighted value,
summing all Organizational Units' weighted values, and
dividing by the total ASE of all Organizational Units,
thereby creating an average weighted index.
"Student activities" means non-credit producing
after-school programs, including, but not limited to,
clubs, bands, sports, and other activities authorized by
the school board of the Organizational Unit.
"Substitute teacher" means an individual teacher or
teaching assistant who is employed by an Organizational
Unit and is temporarily serving the Organizational Unit on
a per diem or per period-assignment basis to replace
another staff member.
"Summer school" means academic and enrichment programs
provided to students during the summer months outside of
the regular school year.
"Supervisory aide" means a non-licensed staff member
who helps in supervising students of an Organizational
Unit, but does so outside of the classroom, in situations
such as, but not limited to, monitoring hallways and
playgrounds, supervising lunchrooms, or supervising
students when being transported in buses serving the

HB3446 - 33 - LRB103 29421 RJT 55812 b
Organizational Unit.
"Target Ratio" is defined in paragraph (4) of
subsection (g).
"Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined
in paragraph (3) of subsection (g).
"Tier 1 Aggregate Funding", "Tier 2 Aggregate
Funding", "Tier 3 Aggregate Funding", and "Tier 4
Aggregate Funding" are defined in paragraph (1) of
subsection (g).
(b) Adequacy Target calculation.
(1) Each Organizational Unit's Adequacy Target is the
sum of the Organizational Unit's cost of providing
Essential Elements, as calculated in accordance with this
subsection (b), with the salary amounts in the Essential
Elements multiplied by a Regionalization Factor calculated
pursuant to paragraph (3) of this subsection (b).
(2) The Essential Elements are attributable on a pro
rata basis related to defined subgroups of the ASE of each
Organizational Unit as specified in this paragraph (2),
with investments and FTE positions pro rata funded based
on ASE counts in excess of or less than the thresholds set
forth in this paragraph (2). The method for calculating
attributable pro rata costs and the defined subgroups
thereto are as follows:
(A) Core class size investments. Each
Organizational Unit shall receive the funding required

HB3446 - 34 - LRB103 29421 RJT 55812 b
to support that number of FTE core teacher positions
as is needed to keep the respective class sizes of the
Organizational Unit to the following maximum numbers:
(i) For grades kindergarten through 3, the
Organizational Unit shall receive funding required
to support one FTE core teacher position for every
15 Low-Income Count students in those grades and
one FTE core teacher position for every 20
non-Low-Income Count students in those grades.
(ii) For grades 4 through 12, the
Organizational Unit shall receive funding required
to support one FTE core teacher position for every
20 Low-Income Count students in those grades and
one FTE core teacher position for every 25
non-Low-Income Count students in those grades.
The number of non-Low-Income Count students in a
grade shall be determined by subtracting the
Low-Income students in that grade from the ASE of the
Organizational Unit for that grade.
(B) Specialist teacher investments. Each
Organizational Unit shall receive the funding needed
to cover that number of FTE specialist teacher
positions that correspond to the following
percentages:
(i) if the Organizational Unit operates an
elementary or middle school, then 20.00% of the

HB3446 - 35 - LRB103 29421 RJT 55812 b
number of the Organizational Unit's core teachers,
as determined under subparagraph (A) of this
paragraph (2); and
(ii) if such Organizational Unit operates a
high school, then 33.33% of the number of the
Organizational Unit's core teachers.
(C) Instructional facilitator investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE instructional facilitator position
for every 200 combined ASE of pre-kindergarten
children with disabilities and all kindergarten
through grade 12 students of the Organizational Unit.
(D) Core intervention teacher (tutor) investments.
Each Organizational Unit shall receive the funding
needed to cover one FTE teacher position for each
prototypical elementary, middle, and high school.
(E) Substitute teacher investments. Each
Organizational Unit shall receive the funding needed
to cover substitute teacher costs that is equal to
5.70% of the minimum pupil attendance days required
under Section 10-19 of this Code for all full-time
equivalent core, specialist, and intervention
teachers, school nurses, special education teachers
and instructional assistants, instructional
facilitators, and summer school and extended day
teacher positions, as determined under this paragraph

HB3446 - 36 - LRB103 29421 RJT 55812 b
(2), at a salary rate of 33.33% of the average salary
for grade K through 12 teachers and 33.33% of the
average salary of each instructional assistant
position.
(F) Core school counselor investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE school counselor for each 450
combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 5
students, plus one FTE school counselor for each 250
grades 6 through 8 ASE middle school students, plus
one FTE school counselor for each 250 grades 9 through
12 ASE high school students.
(G) Nurse investments. Each Organizational Unit
shall receive the funding needed to cover one FTE
nurse for each 750 combined ASE of pre-kindergarten
children with disabilities and all kindergarten
through grade 12 students across all grade levels it
serves.
(H) Supervisory aide investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE for each 225 combined ASE of
pre-kindergarten children with disabilities and all
kindergarten through grade 5 students, plus one FTE
for each 225 ASE middle school students, plus one FTE
for each 200 ASE high school students.

HB3446 - 37 - LRB103 29421 RJT 55812 b
(I) Librarian investments. Each Organizational
Unit shall receive the funding needed to cover one FTE
librarian for each prototypical elementary school,
middle school, and high school and one FTE aide or
media technician for every 300 combined ASE of
pre-kindergarten children with disabilities and all
kindergarten through grade 12 students.
(J) Principal investments. Each Organizational
Unit shall receive the funding needed to cover one FTE
principal position for each prototypical elementary
school, plus one FTE principal position for each
prototypical middle school, plus one FTE principal
position for each prototypical high school.
(K) Assistant principal investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE assistant principal position for each
prototypical elementary school, plus one FTE assistant
principal position for each prototypical middle
school, plus one FTE assistant principal position for
each prototypical high school.
(L) School site staff investments. Each
Organizational Unit shall receive the funding needed
for one FTE position for each 225 ASE of
pre-kindergarten children with disabilities and all
kindergarten through grade 5 students, plus one FTE
position for each 225 ASE middle school students, plus

HB3446 - 38 - LRB103 29421 RJT 55812 b
one FTE position for each 200 ASE high school
students.
(M) Gifted investments. Each Organizational Unit
shall receive $40 per kindergarten through grade 12
ASE.
(N) Professional development investments. Each
Organizational Unit shall receive $125 per student of
the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students for trainers and other professional
development-related expenses for supplies and
materials.
(O) Instructional material investments. Each
Organizational Unit shall receive $190 per student of
the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students to cover instructional material costs.
(P) Assessment investments. Each Organizational
Unit shall receive $25 per student of the combined ASE
of pre-kindergarten children with disabilities and all
kindergarten through grade 12 students to cover
assessment costs.
(Q) Computer technology and equipment investments.
Each Organizational Unit shall receive $285.50 per
student of the combined ASE of pre-kindergarten
children with disabilities and all kindergarten

HB3446 - 39 - LRB103 29421 RJT 55812 b
through grade 12 students to cover computer technology
and equipment costs. For the 2018-2019 school year and
subsequent school years, Organizational Units assigned
to Tier 1 and Tier 2 in the prior school year shall
receive an additional $285.50 per student of the
combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students to cover computer technology and equipment
costs in the Organizational Unit's Adequacy Target.
The State Board may establish additional requirements
for Organizational Unit expenditures of funds received
pursuant to this subparagraph (Q), including a
requirement that funds received pursuant to this
subparagraph (Q) may be used only for serving the
technology needs of the district. It is the intent of
Public Act 100-465 that all Tier 1 and Tier 2 districts
receive the addition to their Adequacy Target in the
following year, subject to compliance with the
requirements of the State Board.
(R) Student activities investments. Each
Organizational Unit shall receive the following
funding amounts to cover student activities: $100 per
kindergarten through grade 5 ASE student in elementary
school, plus $200 per ASE student in middle school,
plus $675 per ASE student in high school.
(S) Maintenance and operations investments. Each

HB3446 - 40 - LRB103 29421 RJT 55812 b
Organizational Unit shall receive $1,038 per student
of the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students for day-to-day maintenance and operations
expenditures, including salary, supplies, and
materials, as well as purchased services, but
excluding employee benefits. The proportion of salary
for the application of a Regionalization Factor and
the calculation of benefits is equal to $352.92.
(T) Central office investments. Each
Organizational Unit shall receive $742 per student of
the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students to cover central office operations, including
administrators and classified personnel charged with
managing the instructional programs, business and
operations of the school district, and security
personnel. The proportion of salary for the
application of a Regionalization Factor and the
calculation of benefits is equal to $368.48.
(U) Employee benefit investments. Each
Organizational Unit shall receive 30% of the total of
all salary-calculated elements of the Adequacy Target,
excluding substitute teachers and student activities
investments, to cover benefit costs. For central
office and maintenance and operations investments, the

HB3446 - 41 - LRB103 29421 RJT 55812 b
benefit calculation shall be based upon the salary
proportion of each investment. If at any time the
responsibility for funding the employer normal cost of
teacher pensions is assigned to school districts, then
that amount certified by the Teachers' Retirement
System of the State of Illinois to be paid by the
Organizational Unit for the preceding school year
shall be added to the benefit investment. For any
fiscal year in which a school district organized under
Article 34 of this Code is responsible for paying the
employer normal cost of teacher pensions, then that
amount of its employer normal cost plus the amount for
retiree health insurance as certified by the Public
School Teachers' Pension and Retirement Fund of
Chicago to be paid by the school district for the
preceding school year that is statutorily required to
cover employer normal costs and the amount for retiree
health insurance shall be added to the 30% specified
in this subparagraph (U). The Teachers' Retirement
System of the State of Illinois and the Public School
Teachers' Pension and Retirement Fund of Chicago shall
submit such information as the State Superintendent
may require for the calculations set forth in this
subparagraph (U).
(V) Additional investments in low-income students.
In addition to and not in lieu of all other funding

HB3446 - 42 - LRB103 29421 RJT 55812 b
under this paragraph (2), each Organizational Unit
shall receive funding based on the average teacher
salary for grades K through 12 to cover the costs of:
(i) one FTE intervention teacher (tutor)
position for every 125 Low-Income Count students;
(ii) one FTE pupil support staff position for
every 125 Low-Income Count students;
(iii) one FTE extended day teacher position
for every 120 Low-Income Count students; and
(iv) one FTE summer school teacher position
for every 120 Low-Income Count students.
(W) Additional investments in English learner
students. In addition to and not in lieu of all other
funding under this paragraph (2), each Organizational
Unit shall receive funding based on the average
teacher salary for grades K through 12 to cover the
costs of:
(i) one FTE intervention teacher (tutor)
position for every 125 English learner students;
(ii) one FTE pupil support staff position for
every 125 English learner students;
(iii) one FTE extended day teacher position
for every 120 English learner students;
(iv) one FTE summer school teacher position
for every 120 English learner students; and
(v) one FTE core teacher position for every

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100 English learner students.
(X) Special education investments. Each
Organizational Unit shall receive funding based on the
average teacher salary for grades K through 12 to
cover special education as follows:
(i) one FTE teacher position for every 141
combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students;
(ii) one FTE instructional assistant for every
141 combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students; and
(iii) one FTE psychologist position for every
1,000 combined ASE of pre-kindergarten children
with disabilities and all kindergarten through
grade 12 students.
(3) For calculating the salaries included within the
Essential Elements, the State Superintendent shall
annually calculate average salaries to the nearest dollar
using the employment information system data maintained by
the State Board, limited to public schools only and
excluding special education and vocational cooperatives,
schools operated by the Department of Juvenile Justice,
and charter schools, for the following positions:
(A) Teacher for grades K through 8.

HB3446 - 44 - LRB103 29421 RJT 55812 b
(B) Teacher for grades 9 through 12.
(C) Teacher for grades K through 12.
(D) School counselor for grades K through 8.
(E) School counselor for grades 9 through 12.
(F) School counselor for grades K through 12.
(G) Social worker.
(H) Psychologist.
(I) Librarian.
(J) Nurse.
(K) Principal.
(L) Assistant principal.
For the purposes of this paragraph (3), "teacher"
includes core teachers, specialist and elective teachers,
instructional facilitators, tutors, special education
teachers, pupil support staff teachers, English learner
teachers, extended day teachers, and summer school
teachers. Where specific grade data is not required for
the Essential Elements, the average salary for
corresponding positions shall apply. For substitute
teachers, the average teacher salary for grades K through
12 shall apply.
For calculating the salaries included within the
Essential Elements for positions not included within EIS
Data, the following salaries shall be used in the first
year of implementation of Evidence-Based Funding:
(i) school site staff, $30,000; and

HB3446 - 45 - LRB103 29421 RJT 55812 b
(ii) non-instructional assistant, instructional
assistant, library aide, library media tech, or
supervisory aide: $25,000.
In the second and subsequent years of implementation
of Evidence-Based Funding, the amounts in items (i) and
(ii) of this paragraph (3) shall annually increase by the
ECI.
The salary amounts for the Essential Elements
determined pursuant to subparagraphs (A) through (L), (S)
and (T), and (V) through (X) of paragraph (2) of
subsection (b) of this Section shall be multiplied by a
Regionalization Factor.
(c) Local Capacity calculation.
(1) Each Organizational Unit's Local Capacity
represents an amount of funding it is assumed to
contribute toward its Adequacy Target for purposes of the
Evidence-Based Funding formula calculation. "Local
Capacity" means either (i) the Organizational Unit's Local
Capacity Target as calculated in accordance with paragraph
(2) of this subsection (c) if its Real Receipts are equal
to or less than its Local Capacity Target or (ii) the
Organizational Unit's Adjusted Local Capacity, as
calculated in accordance with paragraph (3) of this
subsection (c) if Real Receipts are more than its Local
Capacity Target.
(2) "Local Capacity Target" means, for an

HB3446 - 46 - LRB103 29421 RJT 55812 b
Organizational Unit, that dollar amount that is obtained
by multiplying its Adequacy Target by its Local Capacity
Ratio.
(A) An Organizational Unit's Local Capacity
Percentage is the conversion of the Organizational
Unit's Local Capacity Ratio, as such ratio is
determined in accordance with subparagraph (B) of this
paragraph (2), into a cumulative distribution
resulting in a percentile ranking to determine each
Organizational Unit's relative position to all other
Organizational Units in this State. The calculation of
Local Capacity Percentage is described in subparagraph
(C) of this paragraph (2).
(B) An Organizational Unit's Local Capacity Ratio
in a given year is the percentage obtained by dividing
its Adjusted EAV or PTELL EAV, whichever is less, by
its Adequacy Target, with the resulting ratio further
adjusted as follows:
(i) for Organizational Units serving grades
kindergarten through 12 and Hybrid Districts, no
further adjustments shall be made;
(ii) for Organizational Units serving grades
kindergarten through 8, the ratio shall be
multiplied by 9/13;
(iii) for Organizational Units serving grades
9 through 12, the Local Capacity Ratio shall be

HB3446 - 47 - LRB103 29421 RJT 55812 b
multiplied by 4/13; and
(iv) for an Organizational Unit with a
different grade configuration than those specified
in items (i) through (iii) of this subparagraph
(B), the State Superintendent shall determine a
comparable adjustment based on the grades served.
(C) The Local Capacity Percentage is equal to the
percentile ranking of the district. Local Capacity
Percentage converts each Organizational Unit's Local
Capacity Ratio to a cumulative distribution resulting
in a percentile ranking to determine each
Organizational Unit's relative position to all other
Organizational Units in this State. The Local Capacity
Percentage cumulative distribution resulting in a
percentile ranking for each Organizational Unit shall
be calculated using the standard normal distribution
of the score in relation to the weighted mean and
weighted standard deviation and Local Capacity Ratios
of all Organizational Units. If the value assigned to
any Organizational Unit is in excess of 90%, the value
shall be adjusted to 90%. For Laboratory Schools, the
Local Capacity Percentage shall be set at 10% in
recognition of the absence of EAV and resources from
the public university that are allocated to the
Laboratory School. For programs operated by a regional
office of education or an intermediate service center,

HB3446 - 48 - LRB103 29421 RJT 55812 b
the Local Capacity Percentage must be set at 10% in
recognition of the absence of EAV and resources from
school districts that are allocated to the regional
office of education or intermediate service center.
The weighted mean for the Local Capacity Percentage
shall be determined by multiplying each Organizational
Unit's Local Capacity Ratio times the ASE for the unit
creating a weighted value, summing the weighted values
of all Organizational Units, and dividing by the total
ASE of all Organizational Units. The weighted standard
deviation shall be determined by taking the square
root of the weighted variance of all Organizational
Units' Local Capacity Ratio, where the variance is
calculated by squaring the difference between each
unit's Local Capacity Ratio and the weighted mean,
then multiplying the variance for each unit times the
ASE for the unit to create a weighted variance for each
unit, then summing all units' weighted variance and
dividing by the total ASE of all units.
(D) For any Organizational Unit, the
Organizational Unit's Adjusted Local Capacity Target
shall be reduced by either (i) the school board's
remaining contribution pursuant to paragraph (ii) of
subsection (b-4) of Section 16-158 of the Illinois
Pension Code in a given year or (ii) the board of
education's remaining contribution pursuant to

HB3446 - 49 - LRB103 29421 RJT 55812 b
paragraph (iv) of subsection (b) of Section 17-129 of
the Illinois Pension Code absent the employer normal
cost portion of the required contribution and amount
allowed pursuant to subdivision (3) of Section
17-142.1 of the Illinois Pension Code in a given year.
In the preceding sentence, item (i) shall be certified
to the State Board of Education by the Teachers'
Retirement System of the State of Illinois and item
(ii) shall be certified to the State Board of
Education by the Public School Teachers' Pension and
Retirement Fund of the City of Chicago.
(3) If an Organizational Unit's Real Receipts are more
than its Local Capacity Target, then its Local Capacity
shall equal an Adjusted Local Capacity Target as
calculated in accordance with this paragraph (3). The
Adjusted Local Capacity Target is calculated as the sum of
the Organizational Unit's Local Capacity Target and its
Real Receipts Adjustment. The Real Receipts Adjustment
equals the Organizational Unit's Real Receipts less its
Local Capacity Target, with the resulting figure
multiplied by the Local Capacity Percentage.
As used in this paragraph (3), "Real Percent of
Adequacy" means the sum of an Organizational Unit's Real
Receipts, CPPRT, and Base Funding Minimum, with the
resulting figure divided by the Organizational Unit's
Adequacy Target.

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(d) Calculation of Real Receipts, EAV, and Adjusted EAV
for purposes of the Local Capacity calculation.
(1) An Organizational Unit's Real Receipts are the
product of its Applicable Tax Rate and its Adjusted EAV.
An Organizational Unit's Applicable Tax Rate is its
Adjusted Operating Tax Rate for property within the
Organizational Unit.
(2) The State Superintendent shall calculate the
equalized assessed valuation, or EAV, of all taxable
property of each Organizational Unit as of September 30 of
the previous year in accordance with paragraph (3) of this
subsection (d). The State Superintendent shall then
determine the Adjusted EAV of each Organizational Unit in
accordance with paragraph (4) of this subsection (d),
which Adjusted EAV figure shall be used for the purposes
of calculating Local Capacity.
(3) To calculate Real Receipts and EAV, the Department
of Revenue shall supply to the State Superintendent the
value as equalized or assessed by the Department of
Revenue of all taxable property of every Organizational
Unit, together with (i) the applicable tax rate used in
extending taxes for the funds of the Organizational Unit
as of September 30 of the previous year and (ii) the
limiting rate for all Organizational Units subject to
property tax extension limitations as imposed under PTELL.
(A) The Department of Revenue shall add to the

HB3446 - 51 - LRB103 29421 RJT 55812 b
equalized assessed value of all taxable property of
each Organizational Unit situated entirely or
partially within a county that is or was subject to the
provisions of Section 15-176 or 15-177 of the Property
Tax Code (i) an amount equal to the total amount by
which the homestead exemption allowed under Section
15-176 or 15-177 of the Property Tax Code for real
property situated in that Organizational Unit exceeds
the total amount that would have been allowed in that
Organizational Unit if the maximum reduction under
Section 15-176 was (I) $4,500 in Cook County or $3,500
in all other counties in tax year 2003 or (II) $5,000
in all counties in tax year 2004 and thereafter and
(ii) an amount equal to the aggregate amount for the
taxable year of all additional exemptions under
Section 15-175 of the Property Tax Code for owners
with a household income of $30,000 or less. The county
clerk of any county that is or was subject to the
provisions of Section 15-176 or 15-177 of the Property
Tax Code shall annually calculate and certify to the
Department of Revenue for each Organizational Unit all
homestead exemption amounts under Section 15-176 or
15-177 of the Property Tax Code and all amounts of
additional exemptions under Section 15-175 of the
Property Tax Code for owners with a household income
of $30,000 or less. It is the intent of this

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subparagraph (A) that if the general homestead
exemption for a parcel of property is determined under
Section 15-176 or 15-177 of the Property Tax Code
rather than Section 15-175, then the calculation of
EAV shall not be affected by the difference, if any,
between the amount of the general homestead exemption
allowed for that parcel of property under Section
15-176 or 15-177 of the Property Tax Code and the
amount that would have been allowed had the general
homestead exemption for that parcel of property been
determined under Section 15-175 of the Property Tax
Code. It is further the intent of this subparagraph
(A) that if additional exemptions are allowed under
Section 15-175 of the Property Tax Code for owners
with a household income of less than $30,000, then the
calculation of EAV shall not be affected by the
difference, if any, because of those additional
exemptions.
(B) With respect to any part of an Organizational
Unit within a redevelopment project area in respect to
which a municipality has adopted tax increment
allocation financing pursuant to the Tax Increment
Allocation Redevelopment Act, Division 74.4 of Article
11 of the Illinois Municipal Code, or the Industrial
Jobs Recovery Law, Division 74.6 of Article 11 of the
Illinois Municipal Code, no part of the current EAV of

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real property located in any such project area that is
attributable to an increase above the total initial
EAV of such property shall be used as part of the EAV
of the Organizational Unit, until such time as all
redevelopment project costs have been paid, as
provided in Section 11-74.4-8 of the Tax Increment
Allocation Redevelopment Act or in Section 11-74.6-35
of the Industrial Jobs Recovery Law. For the purpose
of the EAV of the Organizational Unit, the total
initial EAV or the current EAV, whichever is lower,
shall be used until such time as all redevelopment
project costs have been paid.
(B-5) The real property equalized assessed
valuation for a school district shall be adjusted by
subtracting from the real property value, as equalized
or assessed by the Department of Revenue, for the
district an amount computed by dividing the amount of
any abatement of taxes under Section 18-170 of the
Property Tax Code by 3.00% for a district maintaining
grades kindergarten through 12, by 2.30% for a
district maintaining grades kindergarten through 8, or
by 1.05% for a district maintaining grades 9 through
12 and adjusted by an amount computed by dividing the
amount of any abatement of taxes under subsection (a)
of Section 18-165 of the Property Tax Code by the same
percentage rates for district type as specified in

HB3446 - 54 - LRB103 29421 RJT 55812 b
this subparagraph (B-5).
(C) For Organizational Units that are Hybrid
Districts, the State Superintendent shall use the
lesser of the adjusted equalized assessed valuation
for property within the partial elementary unit
district for elementary purposes, as defined in
Article 11E of this Code, or the adjusted equalized
assessed valuation for property within the partial
elementary unit district for high school purposes, as
defined in Article 11E of this Code.
(D) If a school district's boundaries span
multiple counties, then the Department of Revenue
shall send to the State Board, for the purposes of
calculating Evidence-Based Funding, the limiting rate
and individual rates by purpose for the county that
contains the majority of the school district's
equalized assessed valuation.
(4) An Organizational Unit's Adjusted EAV shall be the
average of its EAV over the immediately preceding 3 years
or the lesser of its EAV in the immediately preceding year
or the average of its EAV over the immediately preceding 3
years if the EAV in the immediately preceding year has
declined by 10% or more when comparing the 2 most recent
years. In the event of Organizational Unit reorganization,
consolidation, or annexation, the Organizational Unit's
Adjusted EAV for the first 3 years after such change shall

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be as follows: the most current EAV shall be used in the
first year, the average of a 2-year EAV or its EAV in the
immediately preceding year if the EAV declines by 10% or
more when comparing the 2 most recent years for the second
year, and the lesser of a 3-year average EAV or its EAV in
the immediately preceding year if the Adjusted EAV
declines by 10% or more when comparing the 2 most recent
years for the third year. For any school district whose
EAV in the immediately preceding year is used in
calculations, in the following year, the Adjusted EAV
shall be the average of its EAV over the immediately
preceding 2 years or the immediately preceding year if
that year represents a decline of 10% or more when
comparing the 2 most recent years.
"PTELL EAV" means a figure calculated by the State
Board for Organizational Units subject to PTELL as
described in this paragraph (4) for the purposes of
calculating an Organizational Unit's Local Capacity Ratio.
Except as otherwise provided in this paragraph (4), the
PTELL EAV of an Organizational Unit shall be equal to the
product of the equalized assessed valuation last used in
the calculation of general State aid under Section 18-8.05
of this Code (now repealed) or Evidence-Based Funding
under this Section and the Organizational Unit's Extension
Limitation Ratio. If an Organizational Unit has approved
or does approve an increase in its limiting rate, pursuant

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to Section 18-190 of the Property Tax Code, affecting the
Base Tax Year, the PTELL EAV shall be equal to the product
of the equalized assessed valuation last used in the
calculation of general State aid under Section 18-8.05 of
this Code (now repealed) or Evidence-Based Funding under
this Section multiplied by an amount equal to one plus the
percentage increase, if any, in the Consumer Price Index
for All Urban Consumers for all items published by the
United States Department of Labor for the 12-month
calendar year preceding the Base Tax Year, plus the
equalized assessed valuation of new property, annexed
property, and recovered tax increment value and minus the
equalized assessed valuation of disconnected property.
As used in this paragraph (4), "new property" and
"recovered tax increment value" shall have the meanings
set forth in the Property Tax Extension Limitation Law.
(e) Base Funding Minimum calculation.
(1) For the 2017-2018 school year, the Base Funding
Minimum of an Organizational Unit or a Specially Funded
Unit shall be the amount of State funds distributed to the
Organizational Unit or Specially Funded Unit during the
2016-2017 school year prior to any adjustments and
specified appropriation amounts described in this
paragraph (1) from the following Sections, as calculated
by the State Superintendent: Section 18-8.05 of this Code
(now repealed); Section 5 of Article 224 of Public Act

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99-524 (equity grants); Section 14-7.02b of this Code
(funding for children requiring special education
services); Section 14-13.01 of this Code (special
education facilities and staffing), except for
reimbursement of the cost of transportation pursuant to
Section 14-13.01; Section 14C-12 of this Code (English
learners); and Section 18-4.3 of this Code (summer
school), based on an appropriation level of $13,121,600.
For a school district organized under Article 34 of this
Code, the Base Funding Minimum also includes (i) the funds
allocated to the school district pursuant to Section 1D-1
of this Code attributable to funding programs authorized
by the Sections of this Code listed in the preceding
sentence and (ii) the difference between (I) the funds
allocated to the school district pursuant to Section 1D-1
of this Code attributable to the funding programs
authorized by Section 14-7.02 (non-public special
education reimbursement), subsection (b) of Section
14-13.01 (special education transportation), Section 29-5
(transportation), Section 2-3.80 (agricultural
education), Section 2-3.66 (truants' alternative
education), Section 2-3.62 (educational service centers),
and Section 14-7.03 (special education - orphanage) of
this Code and Section 15 of the Childhood Hunger Relief
Act (free breakfast program) and (II) the school
district's actual expenditures for its non-public special

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education, special education transportation,
transportation programs, agricultural education, truants'
alternative education, services that would otherwise be
performed by a regional office of education, special
education orphanage expenditures, and free breakfast, as
most recently calculated and reported pursuant to
subsection (f) of Section 1D-1 of this Code. The Base
Funding Minimum for Glenwood Academy shall be $625,500.
For programs operated by a regional office of education or
an intermediate service center, the Base Funding Minimum
must be the total amount of State funds allocated to those
programs in the 2018-2019 school year and amounts provided
pursuant to Article 34 of Public Act 100-586 and Section
3-16 of this Code. All programs established after June 5,
2019 (the effective date of Public Act 101-10) and
administered by a regional office of education or an
intermediate service center must have an initial Base
Funding Minimum set to an amount equal to the first-year
ASE multiplied by the amount of per pupil funding received
in the previous school year by the lowest funded similar
existing program type. If the enrollment for a program
operated by a regional office of education or an
intermediate service center is zero, then it may not
receive Base Funding Minimum funds for that program in the
next fiscal year, and those funds must be distributed to
Organizational Units under subsection (g).

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(2) For the 2018-2019 and subsequent school years, the
Base Funding Minimum of Organizational Units and Specially
Funded Units shall be the sum of (i) the amount of
Evidence-Based Funding for the prior school year, (ii) the
Base Funding Minimum for the prior school year, and (iii)
any amount received by a school district pursuant to
Section 7 of Article 97 of Public Act 100-21.
For the 2022-2023 school year, the Base Funding
Minimum of Organizational Units shall be the amounts
recalculated by the State Board of Education for Fiscal
Year 2019 through Fiscal Year 2022 that were necessary due
to average student enrollment errors for districts
organized under Article 34 of this Code, plus the Fiscal
Year 2022 property tax relief grants provided under
Section 2-3.170 of this Code, ensuring each Organizational
Unit has the correct amount of resources for Fiscal Year
2023 Evidence-Based Funding calculations and that Fiscal
Year 2023 Evidence-Based Funding Distributions are made in
accordance with this Section.
(3) Subject to approval by the General Assembly as
provided in this paragraph (3), an Organizational Unit
that meets all of the following criteria, as determined by
the State Board, shall have District Intervention Money
added to its Base Funding Minimum at the time the Base
Funding Minimum is calculated by the State Board:
(A) The Organizational Unit is operating under an

HB3446 - 60 - LRB103 29421 RJT 55812 b
Independent Authority under Section 2-3.25f-5 of this
Code for a minimum of 4 school years or is subject to
the control of the State Board pursuant to a court
order for a minimum of 4 school years.
(B) The Organizational Unit was designated as a
Tier 1 or Tier 2 Organizational Unit in the previous
school year under paragraph (3) of subsection (g) of
this Section.
(C) The Organizational Unit demonstrates
sustainability through a 5-year financial and
strategic plan.
(D) The Organizational Unit has made sufficient
progress and achieved sufficient stability in the
areas of governance, academic growth, and finances.
As part of its determination under this paragraph (3),
the State Board may consider the Organizational Unit's
summative designation, any accreditations of the
Organizational Unit, or the Organizational Unit's
financial profile, as calculated by the State Board.
If the State Board determines that an Organizational
Unit has met the criteria set forth in this paragraph (3),
it must submit a report to the General Assembly, no later
than January 2 of the fiscal year in which the State Board
makes it determination, on the amount of District
Intervention Money to add to the Organizational Unit's
Base Funding Minimum. The General Assembly must review the

HB3446 - 61 - LRB103 29421 RJT 55812 b
State Board's report and may approve or disapprove, by
joint resolution, the addition of District Intervention
Money. If the General Assembly fails to act on the report
within 40 calendar days from the receipt of the report,
the addition of District Intervention Money is deemed
approved. If the General Assembly approves the amount of
District Intervention Money to be added to the
Organizational Unit's Base Funding Minimum, the District
Intervention Money must be added to the Base Funding
Minimum annually thereafter.
For the first 4 years following the initial year that
the State Board determines that an Organizational Unit has
met the criteria set forth in this paragraph (3) and has
received funding under this Section, the Organizational
Unit must annually submit to the State Board, on or before
November 30, a progress report regarding its financial and
strategic plan under subparagraph (C) of this paragraph
(3). The plan shall include the financial data from the
past 4 annual financial reports or financial audits that
must be presented to the State Board by November 15 of each
year and the approved budget financial data for the
current year. The plan shall be developed according to the
guidelines presented to the Organizational Unit by the
State Board. The plan shall further include financial
projections for the next 3 fiscal years and include a
discussion and financial summary of the Organizational

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Unit's facility needs. If the Organizational Unit does not
demonstrate sufficient progress toward its 5-year plan or
if it has failed to file an annual financial report, an
annual budget, a financial plan, a deficit reduction plan,
or other financial information as required by law, the
State Board may establish a Financial Oversight Panel
under Article 1H of this Code. However, if the
Organizational Unit already has a Financial Oversight
Panel, the State Board may extend the duration of the
Panel.
(f) Percent of Adequacy and Final Resources calculation.
(1) The Evidence-Based Funding formula establishes a
Percent of Adequacy for each Organizational Unit in order
to place such units into tiers for the purposes of the
funding distribution system described in subsection (g) of
this Section. Initially, an Organizational Unit's
Preliminary Resources and Preliminary Percent of Adequacy
are calculated pursuant to paragraph (2) of this
subsection (f). Then, an Organizational Unit's Final
Resources and Final Percent of Adequacy are calculated to
account for the Organizational Unit's poverty
concentration levels pursuant to paragraphs (3) and (4) of
this subsection (f).
(2) An Organizational Unit's Preliminary Resources are
equal to the sum of its Local Capacity Target, CPPRT, and
Base Funding Minimum. An Organizational Unit's Preliminary

HB3446 - 63 - LRB103 29421 RJT 55812 b
Percent of Adequacy is the lesser of (i) its Preliminary
Resources divided by its Adequacy Target or (ii) 100%.
(3) Except for Specially Funded Units, an
Organizational Unit's Final Resources are equal to the sum
of its Local Capacity, CPPRT, and Adjusted Base Funding
Minimum. The Base Funding Minimum of each Specially Funded
Unit shall serve as its Final Resources, except that the
Base Funding Minimum for State-approved charter schools
shall not include any portion of general State aid
allocated in the prior year based on the per capita
tuition charge times the charter school enrollment.
(4) An Organizational Unit's Final Percent of Adequacy
is its Final Resources divided by its Adequacy Target. An
Organizational Unit's Adjusted Base Funding Minimum is
equal to its Base Funding Minimum less its Supplemental
Grant Funding, with the resulting figure added to the
product of its Supplemental Grant Funding and Preliminary
Percent of Adequacy.
(g) Evidence-Based Funding formula distribution system.
(1) In each school year under the Evidence-Based
Funding formula, each Organizational Unit receives funding
equal to the sum of its Base Funding Minimum and the unit's
allocation of New State Funds determined pursuant to this
subsection (g). To allocate New State Funds, the
Evidence-Based Funding formula distribution system first
places all Organizational Units into one of 4 tiers in

HB3446 - 64 - LRB103 29421 RJT 55812 b
accordance with paragraph (3) of this subsection (g),
based on the Organizational Unit's Final Percent of
Adequacy. New State Funds are allocated to each of the 4
tiers as follows: Tier 1 Aggregate Funding equals 50% of
all New State Funds, Tier 2 Aggregate Funding equals 49%
of all New State Funds, Tier 3 Aggregate Funding equals
0.9% of all New State Funds, and Tier 4 Aggregate Funding
equals 0.1% of all New State Funds. Each Organizational
Unit within Tier 1 or Tier 2 receives an allocation of New
State Funds equal to its tier Funding Gap, as defined in
the following sentence, multiplied by the tier's
Allocation Rate determined pursuant to paragraph (4) of
this subsection (g). For Tier 1, an Organizational Unit's
Funding Gap equals the tier's Target Ratio, as specified
in paragraph (5) of this subsection (g), multiplied by the
Organizational Unit's Adequacy Target, with the resulting
amount reduced by the Organizational Unit's Final
Resources. For Tier 2, an Organizational Unit's Funding
Gap equals the tier's Target Ratio, as described in
paragraph (5) of this subsection (g), multiplied by the
Organizational Unit's Adequacy Target, with the resulting
amount reduced by the Organizational Unit's Final
Resources and its Tier 1 funding allocation. To determine
the Organizational Unit's Funding Gap, the resulting
amount is then multiplied by a factor equal to one minus
the Organizational Unit's Local Capacity Target

HB3446 - 65 - LRB103 29421 RJT 55812 b
percentage. Each Organizational Unit within Tier 3 or Tier
4 receives an allocation of New State Funds equal to the
product of its Adequacy Target and the tier's Allocation
Rate, as specified in paragraph (4) of this subsection
(g).
(2) To ensure equitable distribution of dollars for
all Tier 2 Organizational Units, no Tier 2 Organizational
Unit shall receive fewer dollars per ASE than any Tier 3
Organizational Unit. Each Tier 2 and Tier 3 Organizational
Unit shall have its funding allocation divided by its ASE.
Any Tier 2 Organizational Unit with a funding allocation
per ASE below the greatest Tier 3 allocation per ASE shall
get a funding allocation equal to the greatest Tier 3
funding allocation per ASE multiplied by the
Organizational Unit's ASE. Each Tier 2 Organizational
Unit's Tier 2 funding allocation shall be multiplied by
the percentage calculated by dividing the original Tier 2
Aggregate Funding by the sum of all Tier 2 Organizational
Units' Tier 2 funding allocation after adjusting
districts' funding below Tier 3 levels.
(3) Organizational Units are placed into one of 4
tiers as follows:
(A) Tier 1 consists of all Organizational Units,
except for Specially Funded Units, with a Percent of
Adequacy less than the Tier 1 Target Ratio. The Tier 1
Target Ratio is the ratio level that allows for Tier 1

HB3446 - 66 - LRB103 29421 RJT 55812 b
Aggregate Funding to be distributed, with the Tier 1
Allocation Rate determined pursuant to paragraph (4)
of this subsection (g).
(B) Tier 2 consists of all Tier 1 Units and all
other Organizational Units, except for Specially
Funded Units, with a Percent of Adequacy of less than
0.90.
(C) Tier 3 consists of all Organizational Units,
except for Specially Funded Units, with a Percent of
Adequacy of at least 0.90 and less than 1.0.
(D) Tier 4 consists of all Organizational Units
with a Percent of Adequacy of at least 1.0.
(4) The Allocation Rates for Tiers 1 through 4 are
determined as follows:
(A) The Tier 1 Allocation Rate is 30%.
(B) The Tier 2 Allocation Rate is the result of the
following equation: Tier 2 Aggregate Funding, divided
by the sum of the Funding Gaps for all Tier 2
Organizational Units, unless the result of such
equation is higher than 1.0. If the result of such
equation is higher than 1.0, then the Tier 2
Allocation Rate is 1.0.
(C) The Tier 3 Allocation Rate is the result of the
following equation: Tier 3 Aggregate Funding, divided
by the sum of the Adequacy Targets of all Tier 3
Organizational Units.

HB3446 - 67 - LRB103 29421 RJT 55812 b
(D) The Tier 4 Allocation Rate is the result of the
following equation: Tier 4 Aggregate Funding, divided
by the sum of the Adequacy Targets of all Tier 4
Organizational Units.
(5) A tier's Target Ratio is determined as follows:
(A) The Tier 1 Target Ratio is the ratio level that
allows for Tier 1 Aggregate Funding to be distributed
with the Tier 1 Allocation Rate.
(B) The Tier 2 Target Ratio is 0.90.
(C) The Tier 3 Target Ratio is 1.0.
(6) If, at any point, the Tier 1 Target Ratio is
greater than 90%, then all Tier 1 funding shall be
allocated to Tier 2 and no Tier 1 Organizational Unit's
funding may be identified.
(7) In the event that all Tier 2 Organizational Units
receive funding at the Tier 2 Target Ratio level, any
remaining New State Funds shall be allocated to Tier 3 and
Tier 4 Organizational Units.
(8) If any Specially Funded Units, excluding Glenwood
Academy, recognized by the State Board do not qualify for
direct funding following the implementation of Public Act
100-465 from any of the funding sources included within
the definition of Base Funding Minimum, the unqualified
portion of the Base Funding Minimum shall be transferred
to one or more appropriate Organizational Units as
determined by the State Superintendent based on the prior

HB3446 - 68 - LRB103 29421 RJT 55812 b
year ASE of the Organizational Units.
(8.5) If a school district withdraws from a special
education cooperative, the portion of the Base Funding
Minimum that is attributable to the school district may be
redistributed to the school district upon withdrawal. The
school district and the cooperative must include the
amount of the Base Funding Minimum that is to be
reapportioned in their withdrawal agreement and notify the
State Board of the change with a copy of the agreement upon
withdrawal.
(9) The Minimum Funding Level is intended to establish
a target for State funding that will keep pace with
inflation and continue to advance equity through the
Evidence-Based Funding formula. The target for State
funding of New Property Tax Relief Pool Funds is
$50,000,000 for State fiscal year 2019 and subsequent
State fiscal years. The Minimum Funding Level is equal to
$350,000,000. In addition to any New State Funds, no more
than $50,000,000 New Property Tax Relief Pool Funds may be
counted toward the Minimum Funding Level. If the sum of
New State Funds and applicable New Property Tax Relief
Pool Funds are less than the Minimum Funding Level, than
funding for tiers shall be reduced in the following
manner:
(A) First, Tier 4 funding shall be reduced by an
amount equal to the difference between the Minimum

HB3446 - 69 - LRB103 29421 RJT 55812 b
Funding Level and New State Funds until such time as
Tier 4 funding is exhausted.
(B) Next, Tier 3 funding shall be reduced by an
amount equal to the difference between the Minimum
Funding Level and New State Funds and the reduction in
Tier 4 funding until such time as Tier 3 funding is
exhausted.
(C) Next, Tier 2 funding shall be reduced by an
amount equal to the difference between the Minimum
Funding Level and New State Funds and the reduction in
Tier 4 and Tier 3.
(D) Finally, Tier 1 funding shall be reduced by an
amount equal to the difference between the Minimum
Funding level and New State Funds and the reduction in
Tier 2, 3, and 4 funding. In addition, the Allocation
Rate for Tier 1 shall be reduced to a percentage equal
to the Tier 1 Allocation Rate set by paragraph (4) of
this subsection (g), multiplied by the result of New
State Funds divided by the Minimum Funding Level.
(9.5) For State fiscal year 2019 and subsequent State
fiscal years, if New State Funds exceed $300,000,000, then
any amount in excess of $300,000,000 shall be dedicated
for purposes of Section 2-3.170 of this Code up to a
maximum of $50,000,000.
(10) In the event of a decrease in the amount of the
appropriation for this Section in any fiscal year after

HB3446 - 70 - LRB103 29421 RJT 55812 b
implementation of this Section, the Organizational Units
receiving Tier 1 and Tier 2 funding, as determined under
paragraph (3) of this subsection (g), shall be held
harmless by establishing a Base Funding Guarantee equal to
the per pupil kindergarten through grade 12 funding
received in accordance with this Section in the prior
fiscal year. Reductions shall be made to the Base Funding
Minimum of Organizational Units in Tier 3 and Tier 4 on a
per pupil basis equivalent to the total number of the ASE
in Tier 3-funded and Tier 4-funded Organizational Units
divided by the total reduction in State funding. The Base
Funding Minimum as reduced shall continue to be applied to
Tier 3 and Tier 4 Organizational Units and adjusted by the
relative formula when increases in appropriations for this
Section resume. In no event may State funding reductions
to Organizational Units in Tier 3 or Tier 4 exceed an
amount that would be less than the Base Funding Minimum
established in the first year of implementation of this
Section. If additional reductions are required, all school
districts shall receive a reduction by a per pupil amount
equal to the aggregate additional appropriation reduction
divided by the total ASE of all Organizational Units.
(11) The State Superintendent shall make minor
adjustments to the distribution formula set forth in this
subsection (g) to account for the rounding of percentages
to the nearest tenth of a percentage and dollar amounts to

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the nearest whole dollar.
(h) State Superintendent administration of funding and
district submission requirements.
(1) The State Superintendent shall, in accordance with
appropriations made by the General Assembly, meet the
funding obligations created under this Section.
(2) The State Superintendent shall calculate the
Adequacy Target for each Organizational Unit under this
Section. No Evidence-Based Funding shall be distributed
within an Organizational Unit without the approval of the
unit's school board.
(3) Annually, the State Superintendent shall calculate
and report to each Organizational Unit the unit's
aggregate financial adequacy amount, which shall be the
sum of the Adequacy Target for each Organizational Unit.
The State Superintendent shall calculate and report
separately for each Organizational Unit the unit's total
State funds allocated for its students with disabilities.
The State Superintendent shall calculate and report
separately for each Organizational Unit the amount of
funding and applicable FTE calculated for each Essential
Element of the unit's Adequacy Target.
(4) Annually, the State Superintendent shall calculate
and report to each Organizational Unit the amount the unit
must expend on special education and bilingual education
and computer technology and equipment for Organizational

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Units assigned to Tier 1 or Tier 2 that received an
additional $285.50 per student computer technology and
equipment investment grant to their Adequacy Target
pursuant to the unit's Base Funding Minimum, Special
Education Allocation, Bilingual Education Allocation, and
computer technology and equipment investment allocation.
(5) Moneys distributed under this Section shall be
calculated on a school year basis, but paid on a fiscal
year basis, with payments beginning in August and
extending through June. Unless otherwise provided, the
moneys appropriated for each fiscal year shall be
distributed in 22 equal payments at least 2 times monthly
to each Organizational Unit. If moneys appropriated for
any fiscal year are distributed other than monthly, the
distribution shall be on the same basis for each
Organizational Unit.
(6) Any school district that fails, for any given
school year, to maintain school as required by law or to
maintain a recognized school is not eligible to receive
Evidence-Based Funding. In case of non-recognition of one
or more attendance centers in a school district otherwise
operating recognized schools, the claim of the district
shall be reduced in the proportion that the enrollment in
the attendance center or centers bears to the enrollment
of the school district. "Recognized school" means any
public school that meets the standards for recognition by

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the State Board. A school district or attendance center
not having recognition status at the end of a school term
is entitled to receive State aid payments due upon a legal
claim that was filed while it was recognized.
(7) School district claims filed under this Section
are subject to Sections 18-9 and 18-12 of this Code,
except as otherwise provided in this Section.
(8) Each fiscal year, the State Superintendent shall
calculate for each Organizational Unit an amount of its
Base Funding Minimum and Evidence-Based Funding that shall
be deemed attributable to the provision of special
educational facilities and services, as defined in Section
14-1.08 of this Code, in a manner that ensures compliance
with maintenance of State financial support requirements
under the federal Individuals with Disabilities Education
Act. An Organizational Unit must use such funds only for
the provision of special educational facilities and
services, as defined in Section 14-1.08 of this Code, and
must comply with any expenditure verification procedures
adopted by the State Board.
(9) All Organizational Units in this State must submit
annual spending plans by the end of September of each year
to the State Board as part of the annual budget process,
which shall describe how each Organizational Unit will
utilize the Base Funding Minimum and Evidence-Based
Funding it receives from this State under this Section

HB3446 - 74 - LRB103 29421 RJT 55812 b
with specific identification of the intended utilization
of Low-Income, English learner, and special education
resources. Additionally, the annual spending plans of each
Organizational Unit shall describe how the Organizational
Unit expects to achieve student growth and how the
Organizational Unit will achieve State education goals, as
defined by the State Board, and shall indicate which
stakeholder groups the Organizational Unit engaged to
inform annual spending plans. The State Superintendent
may, from time to time, identify additional requisites for
Organizational Units to satisfy when compiling the annual
spending plans required under this subsection (h). The
format and scope of annual spending plans shall be
developed by the State Superintendent and the State Board
of Education. School districts that serve students under
Article 14C of this Code shall continue to submit
information as required under Section 14C-12 of this Code.
Annual spending plans required under this subsection (h)
shall be integrated in annual school district budgets
completed pursuant to Section 17-1 and Section 34-43.
(10) No later than January 1, 2018, the State
Superintendent shall develop a 5-year strategic plan for
all Organizational Units to help in planning for adequacy
funding under this Section. The State Superintendent shall
submit the plan to the Governor and the General Assembly,
as provided in Section 3.1 of the General Assembly

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Organization Act. The plan shall include recommendations
for:
(A) a framework for collaborative, professional,
innovative, and 21st century learning environments
using the Evidence-Based Funding model;
(B) ways to prepare and support this State's
educators for successful instructional careers;
(C) application and enhancement of the current
financial accountability measures, the approved State
plan to comply with the federal Every Student Succeeds
Act, and the Illinois Balanced Accountability Measures
in relation to student growth and elements of the
Evidence-Based Funding model; and
(D) implementation of an effective school adequacy
funding system based on projected and recommended
funding levels from the General Assembly.
(11) On an annual basis, the State Superintendent must
recalibrate all of the following per pupil elements of the
Adequacy Target and applied to the formulas, based on the
study of average expenses and as reported in the most
recent annual financial report:
(A) Gifted under subparagraph (M) of paragraph (2)
of subsection (b).
(B) Instructional materials under subparagraph (O)
of paragraph (2) of subsection (b).
(C) Assessment under subparagraph (P) of paragraph

HB3446 - 76 - LRB103 29421 RJT 55812 b
(2) of subsection (b).
(D) Student activities under subparagraph (R) of
paragraph (2) of subsection (b).
(E) Maintenance and operations under subparagraph
(S) of paragraph (2) of subsection (b).
(F) Central office under subparagraph (T) of
paragraph (2) of subsection (b).
(i) Professional Review Panel.
(1) A Professional Review Panel is created to study
and review topics related to the implementation and effect
of Evidence-Based Funding, as assigned by a joint
resolution or Public Act of the General Assembly or a
motion passed by the State Board of Education. The Panel
must provide recommendations to and serve the Governor,
the General Assembly, and the State Board. The State
Superintendent or his or her designee must serve as a
voting member and chairperson of the Panel. The State
Superintendent must appoint a vice chairperson from the
membership of the Panel. The Panel must advance
recommendations based on a three-fifths majority vote of
Panel members present and voting. A minority opinion may
also accompany any recommendation of the Panel. The Panel
shall be appointed by the State Superintendent, except as
otherwise provided in paragraph (2) of this subsection (i)
and include the following members:
(A) Two appointees that represent district

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superintendents, recommended by a statewide
organization that represents district superintendents.
(B) Two appointees that represent school boards,
recommended by a statewide organization that
represents school boards.
(C) Two appointees from districts that represent
school business officials, recommended by a statewide
organization that represents school business
officials.
(D) Two appointees that represent school
principals, recommended by a statewide organization
that represents school principals.
(E) Two appointees that represent teachers,
recommended by a statewide organization that
represents teachers.
(F) Two appointees that represent teachers,
recommended by another statewide organization that
represents teachers.
(G) Two appointees that represent regional
superintendents of schools, recommended by
organizations that represent regional superintendents.
(H) Two independent experts selected solely by the
State Superintendent.
(I) Two independent experts recommended by public
universities in this State.
(J) One member recommended by a statewide

HB3446 - 78 - LRB103 29421 RJT 55812 b
organization that represents parents.
(K) Two representatives recommended by collective
impact organizations that represent major metropolitan
areas or geographic areas in Illinois.
(L) One member from a statewide organization
focused on research-based education policy to support
a school system that prepares all students for
college, a career, and democratic citizenship.
(M) One representative from a school district
organized under Article 34 of this Code.
The State Superintendent shall ensure that the
membership of the Panel includes representatives from
school districts and communities reflecting the
geographic, socio-economic, racial, and ethnic diversity
of this State. The State Superintendent shall additionally
ensure that the membership of the Panel includes
representatives with expertise in bilingual education and
special education. Staff from the State Board shall staff
the Panel.
(2) In addition to those Panel members appointed by
the State Superintendent, 4 members of the General
Assembly shall be appointed as follows: one member of the
House of Representatives appointed by the Speaker of the
House of Representatives, one member of the Senate
appointed by the President of the Senate, one member of
the House of Representatives appointed by the Minority

HB3446 - 79 - LRB103 29421 RJT 55812 b
Leader of the House of Representatives, and one member of
the Senate appointed by the Minority Leader of the Senate.
There shall be one additional member appointed by the
Governor. All members appointed by legislative leaders or
the Governor shall be non-voting, ex officio members.
(3) The Panel must study topics at the direction of
the General Assembly or State Board of Education, as
provided under paragraph (1). The Panel may also study the
following topics at the direction of the chairperson:
(A) The format and scope of annual spending plans
referenced in paragraph (9) of subsection (h) of this
Section.
(B) The Comparable Wage Index under this Section.
(C) Maintenance and operations, including capital
maintenance and construction costs.
(D) "At-risk student" definition.
(E) Benefits.
(F) Technology.
(G) Local Capacity Target.
(H) Funding for Alternative Schools, Laboratory
Schools, safe schools, and alternative learning
opportunities programs.
(I) Funding for college and career acceleration
strategies.
(J) Special education investments.
(K) Early childhood investments, in collaboration

HB3446 - 80 - LRB103 29421 RJT 55812 b
with the Illinois Early Learning Council.
(4) (Blank).
(5) Within 5 years after the implementation of this
Section, and every 5 years thereafter, the Panel shall
complete an evaluative study of the entire Evidence-Based
Funding model, including an assessment of whether or not
the formula is achieving State goals. The Panel shall
report to the State Board, the General Assembly, and the
Governor on the findings of the study.
(6) (Blank).
(7) To ensure that (i) the Adequacy Target calculation
under subsection (b) accurately reflects the needs of
students living in poverty or attending schools located in
areas of high poverty, (ii) racial equity within the
Evidence-Based Funding formula is explicitly explored and
advanced, and (iii) the funding goals of the formula
distribution system established under this Section are
sufficient to provide adequate funding for every student
and to fully fund every school in this State, the Panel
shall review the Essential Elements under paragraph (2) of
subsection (b). The Panel shall consider all of the
following in its review:
(A) The financial ability of school districts to
provide instruction in a foreign language to every
student and whether an additional Essential Element
should be added to the formula to ensure that every

HB3446 - 81 - LRB103 29421 RJT 55812 b
student has access to instruction in a foreign
language.
(B) The adult-to-student ratio for each Essential
Element in which a ratio is identified. The Panel
shall consider whether the ratio accurately reflects
the staffing needed to support students living in
poverty or who have traumatic backgrounds.
(C) Changes to the Essential Elements that may be
required to better promote racial equity and eliminate
structural racism within schools.
(D) The impact of investing $350,000,000 in
additional funds each year under this Section and an
estimate of when the school system will become fully
funded under this level of appropriation.
(E) Provide an overview of alternative funding
structures that would enable the State to become fully
funded at an earlier date.
(F) The potential to increase efficiency and to
find cost savings within the school system to expedite
the journey to a fully funded system.
(G) The appropriate levels for reenrolling and
graduating high-risk high school students who have
been previously out of school. These outcomes shall
include enrollment, attendance, skill gains, credit
gains, graduation or promotion to the next grade
level, and the transition to college, training, or

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employment, with an emphasis on progressively
increasing the overall attendance.
(H) The evidence-based or research-based practices
that are shown to reduce the gaps and disparities
experienced by African American students in academic
achievement and educational performance, including
practices that have been shown to reduce disparities
in disciplinary rates, drop-out rates, graduation
rates, college matriculation rates, and college
completion rates.
On or before December 31, 2021, the Panel shall report
to the State Board, the General Assembly, and the Governor
on the findings of its review. This paragraph (7) is
inoperative on and after July 1, 2022.
(j) References. Beginning July 1, 2017, references in
other laws to general State aid funds or calculations under
Section 18-8.05 of this Code (now repealed) shall be deemed to
be references to evidence-based model formula funds or
calculations under this Section.
(Source: P.A. 101-10, eff. 6-5-19; 101-17, eff. 6-14-19;
101-643, eff. 6-18-20; 101-654, eff. 3-8-21; 102-33, eff.
6-25-21; 102-197, eff. 7-30-21; 102-558, eff. 8-20-21;
102-699, eff. 4-19-22; 102-782, eff. 1-1-23; 102-813, eff.
5-13-22; 102-894, eff. 5-20-22; revised 12-13-22.)