Bill Text: IL HB0197 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that, in Cook County, homestead property must be valued at 100% of its fair cash value. Requires the Cook County Clerk to abate the property taxes levied on homestead property in an amount equal to: (1) the amount of the aggregate extension of all taxing districts against the property; less (2) an amount equal to 1% of the equalized assessed value of the property. Sets forth procedures to apply this abatement to the aggregate extensions of each taxing district. Creates the Cook County general homestead exemption to limit the assessment increases of homestead property to the lesser of: (i) 2%; or (ii) the increase in the CPI. Sets forth the taxable years in which this general homestead exemption applies. Amends the State aid provisions of the School Code to provide that, if the general homestead exemption is determined under the Cook County general homestead exemption provisions, then the available local resources are not effected. In provisions concerning the Property Tax Extension Limitation Law in the Property Tax Code, defines "extension limitation", for the 2009 taxable year and thereafter, as (a) the lesser of 2% (now, 5%) or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year or (b) the rate of increase approved by voters. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0197 Detail]

Download: Illinois-2009-HB0197-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0197 Introduced 1/14/2009, by Rep. John A. Fritchey SYNOPSIS AS INTRODUCED:
See Index
Amends the Property Tax Code. Provides that, in Cook County, homestead property must be valued at 100% of its fair cash value. Requires the Cook County Clerk to abate the property taxes levied on homestead property in an amount equal to: (1) the amount of the aggregate extension of all taxing districts against the property; less (2) an amount equal to 1% of the equalized assessed value of the property. Sets forth procedures to apply this abatement to the aggregate extensions of each taxing district. Creates the Cook County general homestead exemption to limit the assessment increases of homestead property to the lesser of: (i) 2%; or (ii) the increase in the CPI. Sets forth the taxable years in which this general homestead exemption applies. Amends the State aid provisions of the School Code to provide that, if the general homestead exemption is determined under the Cook County general homestead exemption provisions, then the available local resources are not effected. In provisions concerning the Property Tax Extension Limitation Law in the Property Tax Code, defines "extension limitation", for the 2009 taxable year and thereafter, as (a) the lesser of 2% (now, 5%) or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year or (b) the rate of increase approved by voters. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Sections 15-10, 15-170, 15-175, 18-185, and 20-178 and by
adding Sections 9-147, 15-178, and 18-179 as follows:
(35 ILCS 200/9-147 new)
Sec. 9-147. Statutory level of assessment for homestead
property in Cook County. Beginning with the 2009 taxable year,
in Cook County, any tract or lot of property that is classified
as homestead property must be valued at 100% of its fair cash
value.
(35 ILCS 200/15-10)
Sec. 15-10. Exempt property; procedures for certification.
All property granted an exemption by the Department pursuant to
the requirements of Section 15-5 and described in the Sections
following Section 15-30 and preceding Section 16-5, to the
extent therein limited, is exempt from taxation. In order to
maintain that exempt status, the titleholder or the owner of
the beneficial interest of any property that is exempt must
file with the chief county assessment officer, on or before
January 31 of each year (May 31 in the case of property

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exempted by Section 15-170), an affidavit stating whether there
has been any change in the ownership or use of the property or
the status of the owner-resident, or that a disabled veteran
who qualifies under Section 15-165 owned and used the property
as of January 1 of that year. The nature of any change shall be
stated in the affidavit. Failure to file an affidavit shall, in
the discretion of the assessment officer, constitute cause to
terminate the exemption of that property, notwithstanding any
other provision of this Code. Owners of 5 or more such exempt
parcels within a county may file a single annual affidavit in
lieu of an affidavit for each parcel. The assessment officer,
upon request, shall furnish an affidavit form to the owners, in
which the owner may state whether there has been any change in
the ownership or use of the property or status of the owner or
resident as of January 1 of that year. The owner of 5 or more
exempt parcels shall list all the properties giving the same
information for each parcel as required of owners who file
individual affidavits.
However, titleholders or owners of the beneficial interest
in any property exempted under any of the following provisions
are not required to submit an annual filing under this Section:
(1) Section 15-45 (burial grounds) in counties of less
than 3,000,000 inhabitants and owned by a not-for-profit
organization.
(2) Section 15-40.
(3) Section 15-50 (United States property).

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If there is a change in use or ownership, however, notice
must be filed pursuant to Section 15-20.
An application for homestead exemptions shall be filed as
provided in Section 15-170 (senior citizens homestead
exemption), Section 15-172 (senior citizens assessment freeze
homestead exemption), and Sections 15-175 (general homestead
exemption), 15-176 (general alternative homestead exemption),
and 15-177 (long-time occupant homestead exemption), and
15-178 (Cook County homestead exemption), respectively.
(Source: P.A. 95-644, eff. 10-12-07.)
(35 ILCS 200/15-170)
Sec. 15-170. Senior Citizens Homestead Exemption. An
annual homestead exemption limited, except as described here
with relation to cooperatives or life care facilities, to a
maximum reduction set forth below from the property's value, as
equalized or assessed by the Department, is granted for
property that is occupied as a residence by a person 65 years
of age or older who is liable for paying real estate taxes on
the property and is an owner of record of the property or has a
legal or equitable interest therein as evidenced by a written
instrument, except for a leasehold interest, other than a
leasehold interest of land on which a single family residence
is located, which is occupied as a residence by a person 65
years or older who has an ownership interest therein, legal,
equitable or as a lessee, and on which he or she is liable for

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the payment of property taxes. Before taxable year 2004, the
maximum reduction shall be $2,500 in counties with 3,000,000 or
more inhabitants and $2,000 in all other counties. For taxable
years 2004 through 2005, the maximum reduction shall be $3,000
in all counties. For taxable years 2006 and 2007, the maximum
reduction shall be $3,500 and, for taxable years 2008 and
thereafter, the maximum reduction is $4,000 in all counties.
For land improved with an apartment building owned and
operated as a cooperative, the maximum reduction from the value
of the property, as equalized by the Department, shall be
multiplied by the number of apartments or units occupied by a
person 65 years of age or older who is liable, by contract with
the owner or owners of record, for paying property taxes on the
property and is an owner of record of a legal or equitable
interest in the cooperative apartment building, other than a
leasehold interest. For land improved with a life care
facility, the maximum reduction from the value of the property,
as equalized by the Department, shall be multiplied by the
number of apartments or units occupied by persons 65 years of
age or older, irrespective of any legal, equitable, or
leasehold interest in the facility, who are liable, under a
contract with the owner or owners of record of the facility,
for paying property taxes on the property. In a cooperative or
a life care facility where a homestead exemption has been
granted, the cooperative association or the management firm of
the cooperative or facility shall credit the savings resulting

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from that exemption only to the apportioned tax liability of
the owner or resident who qualified for the exemption. Any
person who willfully refuses to so credit the savings shall be
guilty of a Class B misdemeanor. Under this Section and
Sections 15-175, 15-176, and 15-177, and 15-178, "life care
facility" means a facility, as defined in Section 2 of the Life
Care Facilities Act, with which the applicant for the homestead
exemption has a life care contract as defined in that Act.
When a homestead exemption has been granted under this
Section and the person qualifying subsequently becomes a
resident of a facility licensed under the Nursing Home Care
Act, the exemption shall continue so long as the residence
continues to be occupied by the qualifying person's spouse if
the spouse is 65 years of age or older, or if the residence
remains unoccupied but is still owned by the person qualified
for the homestead exemption.
A person who will be 65 years of age during the current
assessment year shall be eligible to apply for the homestead
exemption during that assessment year. Application shall be
made during the application period in effect for the county of
his residence.
Beginning with assessment year 2003, for taxes payable in
2004, property that is first occupied as a residence after
January 1 of any assessment year by a person who is eligible
for the senior citizens homestead exemption under this Section
must be granted a pro-rata exemption for the assessment year.

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The amount of the pro-rata exemption is the exemption allowed
in the county under this Section divided by 365 and multiplied
by the number of days during the assessment year the property
is occupied as a residence by a person eligible for the
exemption under this Section. The chief county assessment
officer must adopt reasonable procedures to establish
eligibility for this pro-rata exemption.
The assessor or chief county assessment officer may
determine the eligibility of a life care facility to receive
the benefits provided by this Section, by affidavit,
application, visual inspection, questionnaire or other
reasonable methods in order to insure that the tax savings
resulting from the exemption are credited by the management
firm to the apportioned tax liability of each qualifying
resident. The assessor may request reasonable proof that the
management firm has so credited the exemption.
The chief county assessment officer of each county with
less than 3,000,000 inhabitants shall provide to each person
allowed a homestead exemption under this Section a form to
designate any other person to receive a duplicate of any notice
of delinquency in the payment of taxes assessed and levied
under this Code on the property of the person receiving the
exemption. The duplicate notice shall be in addition to the
notice required to be provided to the person receiving the
exemption, and shall be given in the manner required by this
Code. The person filing the request for the duplicate notice

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shall pay a fee of $5 to cover administrative costs to the
supervisor of assessments, who shall then file the executed
designation with the county collector. Notwithstanding any
other provision of this Code to the contrary, the filing of
such an executed designation requires the county collector to
provide duplicate notices as indicated by the designation. A
designation may be rescinded by the person who executed such
designation at any time, in the manner and form required by the
chief county assessment officer.
The assessor or chief county assessment officer may
determine the eligibility of residential property to receive
the homestead exemption provided by this Section by
application, visual inspection, questionnaire or other
reasonable methods. The determination shall be made in
accordance with guidelines established by the Department.
In counties with less than 3,000,000 inhabitants, the
county board may by resolution provide that if a person has
been granted a homestead exemption under this Section, the
person qualifying need not reapply for the exemption.
In counties with less than 3,000,000 inhabitants, if the
assessor or chief county assessment officer requires annual
application for verification of eligibility for an exemption
once granted under this Section, the application shall be
mailed to the taxpayer.
The assessor or chief county assessment officer shall
notify each person who qualifies for an exemption under this

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Section that the person may also qualify for deferral of real
estate taxes under the Senior Citizens Real Estate Tax Deferral
Act. The notice shall set forth the qualifications needed for
deferral of real estate taxes, the address and telephone number
of county collector, and a statement that applications for
deferral of real estate taxes may be obtained from the county
collector.
Notwithstanding Sections 6 and 8 of the State Mandates Act,
no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 94-794, eff. 5-22-06; 95-644, eff. 10-12-07;
95-876, eff. 8-21-08.)
(35 ILCS 200/15-175)
Sec. 15-175. General homestead exemption. Except as
provided in Sections 15-176, and 15-177, and 15-178, homestead
property is entitled to an annual homestead exemption limited,
except as described here with relation to cooperatives, to a
reduction in the equalized assessed value of homestead property
equal to the increase in equalized assessed value for the
current assessment year above the equalized assessed value of
the property for 1977, up to the maximum reduction set forth
below. If however, the 1977 equalized assessed value upon which
taxes were paid is subsequently determined by local assessing
officials, the Property Tax Appeal Board, or a court to have
been excessive, the equalized assessed value which should have

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been placed on the property for 1977 shall be used to determine
the amount of the exemption.
Except as provided in Section 15-176, the maximum reduction
before taxable year 2004 shall be $4,500 in counties with
3,000,000 or more inhabitants and $3,500 in all other counties.
Except as provided in Sections 15-176, and 15-177, and 15-178
for taxable years 2004 through 2007, the maximum reduction
shall be $5,000, for taxable year 2008, the maximum reduction
is $5,500, and, for taxable years 2009 and thereafter, the
maximum reduction is $6,000 in all counties. If a county has
elected to subject itself to the provisions of Section 15-176
as provided in subsection (k) of that Section, or in Cook
County, then, for the first taxable year only after the
provisions of Section 15-176 or Section 15-178 no longer apply,
for owners who, for the taxable year, have not been granted a
senior citizens assessment freeze homestead exemption under
Section 15-172 or a long-time occupant homestead exemption
under Section 15-177, there shall be an additional exemption of
$5,000 for owners with a household income of $30,000 or less.
In counties with fewer than 3,000,000 inhabitants, if,
based on the most recent assessment, the equalized assessed
value of the homestead property for the current assessment year
is greater than the equalized assessed value of the property
for 1977, the owner of the property shall automatically receive
the exemption granted under this Section in an amount equal to
the increase over the 1977 assessment up to the maximum

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reduction set forth in this Section.
If in any assessment year beginning with the 2000
assessment year, homestead property has a pro-rata valuation
under Section 9-180 resulting in an increase in the assessed
valuation, a reduction in equalized assessed valuation equal to
the increase in equalized assessed value of the property for
the year of the pro-rata valuation above the equalized assessed
value of the property for 1977 shall be applied to the property
on a proportionate basis for the period the property qualified
as homestead property during the assessment year. The maximum
proportionate homestead exemption shall not exceed the maximum
homestead exemption allowed in the county under this Section
divided by 365 and multiplied by the number of days the
property qualified as homestead property.
"Homestead property" under this Section includes
residential property that is occupied by its owner or owners as
his or their principal dwelling place, or that is a leasehold
interest on which a single family residence is situated, which
is occupied as a residence by a person who has an ownership
interest therein, legal or equitable or as a lessee, and on
which the person is liable for the payment of property taxes.
For land improved with an apartment building owned and operated
as a cooperative or a building which is a life care facility as
defined in Section 15-170 and considered to be a cooperative
under Section 15-170, the maximum reduction from the equalized
assessed value shall be limited to the increase in the value

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above the equalized assessed value of the property for 1977, up
to the maximum reduction set forth above, multiplied by the
number of apartments or units occupied by a person or persons
who is liable, by contract with the owner or owners of record,
for paying property taxes on the property and is an owner of
record of a legal or equitable interest in the cooperative
apartment building, other than a leasehold interest. For
purposes of this Section, the term "life care facility" has the
meaning stated in Section 15-170.
"Household", as used in this Section, means the owner, the
spouse of the owner, and all persons using the residence of the
owner as their principal place of residence.
"Household income", as used in this Section, means the
combined income of the members of a household for the calendar
year preceding the taxable year.
"Income", as used in this Section, has the same meaning as
provided in Section 3.07 of the Senior Citizens and Disabled
Persons Property Tax Relief and Pharmaceutical Assistance Act,
except that "income" does not include veteran's benefits.
In a cooperative where a homestead exemption has been
granted, the cooperative association or its management firm
shall credit the savings resulting from that exemption only to
the apportioned tax liability of the owner who qualified for
the exemption. Any person who willfully refuses to so credit
the savings shall be guilty of a Class B misdemeanor.
Where married persons maintain and reside in separate

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residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized assessed
valuation provided by this Section.
In all counties, the assessor or chief county assessment
officer may determine the eligibility of residential property
to receive the homestead exemption and the amount of the
exemption by application, visual inspection, questionnaire or
other reasonable methods. The determination shall be made in
accordance with guidelines established by the Department,
provided that the taxpayer applying for an additional general
exemption under this Section shall submit to the chief county
assessment officer an application with an affidavit of the
applicant's total household income, age, marital status (and,
if married, the name and address of the applicant's spouse, if
known), and principal dwelling place of members of the
household on January 1 of the taxable year. The Department
shall issue guidelines establishing a method for verifying the
accuracy of the affidavits filed by applicants under this
paragraph. The applications shall be clearly marked as
applications for the Additional General Homestead Exemption.
In counties with fewer than 3,000,000 inhabitants, in the
event of a sale of homestead property the homestead exemption
shall remain in effect for the remainder of the assessment year
of the sale. The assessor or chief county assessment officer
may require the new owner of the property to apply for the
homestead exemption for the following assessment year.

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Notwithstanding Sections 6 and 8 of the State Mandates Act,
no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 95-644, eff. 10-12-07.)
(35 ILCS 200/15-178 new)
Sec. 15-178. The Cook County general homestead exemption.
(a) In Cook County, homestead property is entitled to an
annual homestead exemption equal to a reduction in the
property's equalized assessed value calculated as provided in
this Section.
(b) As used in this Section:
(1) "Assessor" means the supervisor of assessments or
the chief county assessment officer of each county.
(2) "Adjusted homestead value" means the lesser of the
following values:
(A) The property's base homestead value increased
by the adjustment limitation for each tax year after
the base year through and including the current tax
year, or, if the property is sold or ownership is
otherwise transferred, the property's base homestead
value increased by the adjustment limitation for each
tax year after the year of the sale or transfer through
and including the current tax year. The increase by the
adjustment limitation each year is an increase by the
limitation over the prior year.

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(B) The property's equalized assessed value for
the current tax year minus $5,000.
(3) "Assessment limitation" means the lesser of: (i)
5%; or (ii) the percentage increase in the Consumer Price
Index during the 12-month calendar year preceding the levy
year. "Consumer Price Index" means the Consumer Price Index
for All Urban Consumers for all items published by the
United States Department of Labor.
(4) "Base homestead value".
(A) Except as provided in subdivision (b)(4)(B),
"base homestead value" means the equalized assessed
value of the property for the base year prior to
exemptions, minus $5,000, provided that it was
assessed for that year as residential property
qualified for any of the homestead exemptions under
Sections 15-170 through 15-175 of this Code, then in
force, and further provided that the property's
assessment was not based on a reduced assessed value
resulting from a temporary irregularity in the
property for that year. Except as provided in
subdivision (b)(4)(B), if the property did not have a
residential equalized assessed value for the base
year, then "base homestead value" means the base
homestead value established by the assessor under
subsection (c).
(B) If the property is sold or ownership is

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otherwise transferred, other than sales or transfers
between spouses or between a parent and a child, "base
homestead value" means the equalized assessed value of
the property at the time of the sale or transfer prior
to exemptions, minus $5,000, provided that it was
assessed as residential property qualified for any of
the homestead exemptions under Sections 15-170 through
15-175 of this Code, then in force, and further
provided that the property's assessment was not based
on a reduced assessed value resulting from a temporary
irregularity in the property.
(5) "Base year" means tax year 2008.
(6) "Current tax year" means the tax year for which the
exemption under this Section is being applied.
(7) "Equalized assessed value" means the property's
assessed value as equalized by the Department.
(8) "Homestead" or "homestead property" means:
(A) Residential property that as of January 1 of
the tax year is occupied by its owner or owners as his,
her, or their principal dwelling place, or that is a
leasehold interest on which a single family residence
is situated, that is occupied as a residence by a
person who has a legal or equitable interest therein
evidenced by a written instrument, as an owner or as a
lessee, and on which the person is liable for the
payment of property taxes. Residential units in an

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apartment building owned and operated as a
cooperative, or as a life care facility, which are
occupied by persons who hold a legal or equitable
interest in the cooperative apartment building or life
care facility as owners or lessees, and who are liable
by contract for the payment of property taxes, are
included within this definition of homestead property.
(B) A homestead includes the dwelling place,
appurtenant structures, and so much of the surrounding
land constituting the parcel on which the dwelling
place is situated as is used for residential purposes.
If the assessor has established a specific legal
description for a portion of property constituting the
homestead, then the homestead is limited to the
property within that description.
(7) "Life care facility" means a facility as defined in
Section 2 of the Life Care Facilities Act.
(c) If the property did not have a residential equalized
assessed value for the base year as provided in subdivision
(b)(4)(A) of this Section, then the assessor shall first
determine an initial value for the property by comparison with
assessed values for the base year of other properties having
physical and economic characteristics similar to those of the
subject property, so that the initial value is uniform in
relation to assessed values of those other properties for the
base year. The product of the initial value multiplied by the

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equalized factor for the base year for homestead properties in
that county, less 5,000, is the base homestead value.
For any tax year for which the assessor determines or
adjusts an initial value and, hence, a base homestead value
under this subsection (c), the initial value is subject to
review by the same procedures applicable to assessed values
established under this Code for that tax year.
(d) The base homestead value must remain constant, except
that the assessor may revise it under any of the following
circumstances:
(1) If the equalized assessed value of a homestead
property for the current tax year is less than the previous
base homestead value for that property, then the current
equalized assessed value (provided it is not based on a
reduced assessed value resulting from a temporary
irregularity in the property) becomes the base homestead
value in subsequent tax years.
(2) For any year in which new buildings, structures, or
other improvements are constructed on the homestead
property that would increase its assessed value, the
assessor shall adjust the base homestead value as provided
in subsection (c) of this Section with due regard to the
value added by the new improvements.
(3) If the property is sold or ownership is otherwise
transferred, the base homestead value of the property must
be adjusted as provided in subdivision (b)(4)(B). This item

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(3) does not apply to sales or transfers between spouses or
between a parent and a child.
(e) The amount of the exemption under this Section is the
equalized assessed value of the homestead property for the
current tax year, minus the adjusted homestead value. In the
case of homestead property that also qualifies for the
exemption under Section 15-172, the property is entitled to the
exemption under this Section, limited to the amount of $5,000.
(f) In the case of an apartment building owned and operated
as a cooperative, or as a life care facility, that contains
residential units that qualify as homestead property under this
Section, the maximum cumulative exemption amount attributed to
the entire building or facility shall not exceed the sum of the
exemptions calculated for each qualified residential unit. The
cooperative association, management firm, or other person or
entity that manages or controls the cooperative apartment
building or life care facility shall credit the exemption
attributable to each residential unit only to the apportioned
tax liability of the owner or other person responsible for
payment of taxes as to that unit. Any person who willfully
refuses to so credit the exemption is guilty of a Class B
misdemeanor.
(g) When married persons maintain separate residences, the
exemption provided under this Section may be claimed by only
one such person and for only one residence.
(h) In the event of a sale or other transfer in ownership

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of the homestead property, the exemption under this Section
remains in effect for the remainder of the tax year in which
the sale or transfer occurs, but (other than for sales or
transfers between spouses or between a parent and a child) must
be calculated using the new base homestead value as provided in
subdivision (b)(4)(B). The assessor may require the new owner
of the property to apply for the exemption in the following
year.
(i) The assessor may determine whether property qualifies
as a homestead under this Section by application, visual
inspection, questionnaire, or other reasonable methods. Each
year, at the time the assessment books are certified to the
county clerk by the board of review, the assessor shall furnish
to the county clerk a list of the properties qualified for the
homestead exemption under this Section. The list must note the
base homestead value of each property to be used in the
calculation of the exemption for the current tax year.
(j) In Cook County, the provisions of this Section apply as
follows:
(1) If the general assessment year for the property is
2009, then this Section applies for assessment years 2009,
2010, and 2011. Thereafter, the provisions of Section
15-175 apply.
(2) If the general assessment year for the property is
2010, this Section applies for assessment years 2010, 2011,
and 2012. Thereafter, the provisions of Section 15-175

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apply.
(3) If the general assessment year for the property is
2011, this Section applies for assessment years 2011, 2012,
and 2013. Thereafter, the provisions of Section 15-175
apply.
(k) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(35 ILCS 200/18-179 new)
Sec. 18-179. Cook County homestead abatement.
(a) The county clerk must abate the property taxes levied
on each parcel of homestead property that must be valued at
100% of its fair cash value under Section 9-147. The amount of
the abatement under this Section is:
(1) the amount of the aggregate extension of all taxing
districts against the property; less
(2) an amount equal to 1% of the equalized assessed
value of the property.
(b) This abatement must be applied to the aggregate
extensions of each taxing district that levies a property tax
on the property in an amount based on the percentage that the
district's aggregate extension bears to the total aggregate
extension of all taxing districts.
(35 ILCS 200/18-185)

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Sec. 18-185. Short title; definitions. This Division 5 may
be cited as the Property Tax Extension Limitation Law. As used
in this Division 5:
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Extension limitation", for taxable years prior to 2009,
means (a) the lesser of 5% or the percentage increase in the
Consumer Price Index during the 12-month calendar year
preceding the levy year or (b) the rate of increase approved by
voters under Section 18-205. "Extension limitation", for the
2009 taxable year and thereafter, means (a) the lesser of 2% or
the percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the rate
of increase approved by voters under Section 18-205.
"Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000 or
more inhabitants.
"Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of
its 1990 equalized assessed value within any county or counties
contiguous to a county with 3,000,000 or more inhabitants.
Beginning with the 1995 levy year, "taxing district" includes
only each non-home rule taxing district subject to this Law

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before the 1995 levy year and each non-home rule taxing
district not subject to this Law before the 1995 levy year
having the majority of its 1994 equalized assessed value in an
affected county or counties. Beginning with the levy year in
which this Law becomes applicable to a taxing district as
provided in Section 18-213, "taxing district" also includes
those taxing districts made subject to this Law as provided in
Section 18-213.
"Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made for
any taxing district to pay interest or principal on general
obligation bonds issued before October 1, 1991; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before October 1, 1991; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after October 1, 1991 that were approved by
referendum; (e) made for any taxing district to pay interest or
principal on revenue bonds issued before October 1, 1991 for
payment of which a property tax levy or the full faith and
credit of the unit of local government is pledged; however, a

HB0197 - 23 - LRB096 03304 HLH 13322 b
tax for the payment of interest or principal on those bonds
shall be made only after the governing body of the unit of
local government finds that all other sources for payment are
insufficient to make those payments; (f) made for payments
under a building commission lease when the lease payments are
for the retirement of bonds issued by the commission before
October 1, 1991, to pay for the building project; (g) made for
payments due under installment contracts entered into before
October 1, 1991; (h) made for payments of principal and
interest on bonds issued under the Metropolitan Water
Reclamation District Act to finance construction projects
initiated before October 1, 1991; (i) made for payments of
principal and interest on limited bonds, as defined in Section
3 of the Local Government Debt Reform Act, in an amount not to
exceed the debt service extension base less the amount in items
(b), (c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest on
bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made by a school district that participates in
the Special Education District of Lake County, created by
special education joint agreement under Section 10-22.31 of the
School Code, for payment of the school district's share of the
amounts required to be contributed by the Special Education
District of Lake County to the Illinois Municipal Retirement
Fund under Article 7 of the Illinois Pension Code; the amount

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of any extension under this item (k) shall be certified by the
school district to the county clerk; (l) made to fund expenses
of providing joint recreational programs for the handicapped
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; (m) made for temporary
relocation loan repayment purposes pursuant to Sections 2-3.77
and 17-2.2d of the School Code; (n) made for payment of
principal and interest on any bonds issued under the authority
of Section 17-2.2d of the School Code; and (o) made for
contributions to a firefighter's pension fund created under
Article 4 of the Illinois Pension Code, to the extent of the
amount certified under item (5) of Section 4-134 of the
Illinois Pension Code.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing
districts subject to this Law in accordance with Section
18-213) means the annual corporate extension for the taxing
district and those special purpose extensions that are made
annually for the taxing district, excluding special purpose
extensions: (a) made for the taxing district to pay interest or
principal on general obligation bonds that were approved by
referendum; (b) made for any taxing district to pay interest or
principal on general obligation bonds issued before March 1,
1995; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund those
bonds issued before March 1, 1995; (d) made for any taxing

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district to pay interest or principal on bonds issued to refund
or continue to refund bonds issued after March 1, 1995 that
were approved by referendum; (e) made for any taxing district
to pay interest or principal on revenue bonds issued before
March 1, 1995 for payment of which a property tax levy or the
full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or
principal on those bonds shall be made only after the governing
body of the unit of local government finds that all other
sources for payment are insufficient to make those payments;
(f) made for payments under a building commission lease when
the lease payments are for the retirement of bonds issued by
the commission before March 1, 1995 to pay for the building
project; (g) made for payments due under installment contracts
entered into before March 1, 1995; (h) made for payments of
principal and interest on bonds issued under the Metropolitan
Water Reclamation District Act to finance construction
projects initiated before October 1, 1991; (h-4) made for
stormwater management purposes by the Metropolitan Water
Reclamation District of Greater Chicago under Section 12 of the
Metropolitan Water Reclamation District Act; (i) made for
payments of principal and interest on limited bonds, as defined
in Section 3 of the Local Government Debt Reform Act, in an
amount not to exceed the debt service extension base less the
amount in items (b), (c), and (e) of this definition for
non-referendum obligations, except obligations initially

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issued pursuant to referendum and bonds described in subsection
(h) of this definition; (j) made for payments of principal and
interest on bonds issued under Section 15 of the Local
Government Debt Reform Act; (k) made for payments of principal
and interest on bonds authorized by Public Act 88-503 and
issued under Section 20a of the Chicago Park District Act for
aquarium or museum projects; (l) made for payments of principal
and interest on bonds authorized by Public Act 87-1191 or
93-601 and (i) issued pursuant to Section 21.2 of the Cook
County Forest Preserve District Act, (ii) issued under Section
42 of the Cook County Forest Preserve District Act for
zoological park projects, or (iii) issued under Section 44.1 of
the Cook County Forest Preserve District Act for botanical
gardens projects; (m) made pursuant to Section 34-53.5 of the
School Code, whether levied annually or not; (n) made to fund
expenses of providing joint recreational programs for the
handicapped under Section 5-8 of the Park District Code or
Section 11-95-14 of the Illinois Municipal Code; (o) made by
the Chicago Park District for recreational programs for the
handicapped under subsection (c) of Section 7.06 of the Chicago
Park District Act; (p) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code;
and (q) made by Ford Heights School District 169 under Section
17-9.02 of the School Code.

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"Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except for
those taxing districts subject to paragraph (2) of subsection
(e) of Section 18-213, means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the date on which the referendum making this Law applicable to
the taxing district is held; (c) made for any taxing district
to pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the date on which
the referendum making this Law applicable to the taxing
district is held; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after the date on which the referendum
making this Law applicable to the taxing district is held if
the bonds were approved by referendum after the date on which
the referendum making this Law applicable to the taxing
district is held; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the date
on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local

HB0197 - 28 - LRB096 03304 HLH 13322 b
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before the date on which the
referendum making this Law applicable to the taxing district is
held to pay for the building project; (g) made for payments due
under installment contracts entered into before the date on
which the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the debt
service extension base less the amount in items (b), (c), and
(e) of this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing

HB0197 - 29 - LRB096 03304 HLH 13322 b
joint recreational programs for the handicapped under Section
5-8 of the Park District Code or Section 11-95-14 of the
Illinois Municipal Code; and (l) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of subsection
(e) of Section 18-213 means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the effective date of this amendatory Act of 1997; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before the effective date of this amendatory Act of 1997; (d)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund bonds issued after
the effective date of this amendatory Act of 1997 if the bonds
were approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of

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which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the retirement
of bonds issued by the commission before the effective date of
this amendatory Act of 1997 to pay for the building project;
(g) made for payments due under installment contracts entered
into before the effective date of this amendatory Act of 1997;
(h) made for payments of principal and interest on limited
bonds, as defined in Section 3 of the Local Government Debt
Reform Act, in an amount not to exceed the debt service
extension base less the amount in items (b), (c), and (e) of
this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing

HB0197 - 31 - LRB096 03304 HLH 13322 b
joint recreational programs for the handicapped under Section
5-8 of the Park District Code or Section 11-95-14 of the
Illinois Municipal Code; and (l) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code.
"Debt service extension base" means an amount equal to that
portion of the extension for a taxing district for the 1994
levy year, or for those taxing districts subject to this Law in
accordance with Section 18-213, except for those subject to
paragraph (2) of subsection (e) of Section 18-213, for the levy
year in which the referendum making this Law applicable to the
taxing district is held, or for those taxing districts subject
to this Law in accordance with paragraph (2) of subsection (e)
of Section 18-213 for the 1996 levy year, constituting an
extension for payment of principal and interest on bonds issued
by the taxing district without referendum, but not including
excluded non-referendum bonds. For park districts (i) that were
first subject to this Law in 1991 or 1995 and (ii) whose
extension for the 1994 levy year for the payment of principal
and interest on bonds issued by the park district without
referendum (but not including excluded non-referendum bonds)
was less than 51% of the amount for the 1991 levy year
constituting an extension for payment of principal and interest
on bonds issued by the park district without referendum (but
not including excluded non-referendum bonds), "debt service

HB0197 - 32 - LRB096 03304 HLH 13322 b
extension base" means an amount equal to that portion of the
extension for the 1991 levy year constituting an extension for
payment of principal and interest on bonds issued by the park
district without referendum (but not including excluded
non-referendum bonds). The debt service extension base may be
established or increased as provided under Section 18-212.
"Excluded non-referendum bonds" means (i) bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium and museum projects; (ii) bonds
issued under Section 15 of the Local Government Debt Reform
Act; or (iii) refunding obligations issued to refund or to
continue to refund obligations initially issued pursuant to
referendum.
"Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant to
Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or not.
The extension for a special service area is not included in the
aggregate extension.
"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-135, 18-215, and 18-230. An adjustment under Section 18-135
shall be made for the 2007 levy year and all subsequent levy
years whenever one or more counties within which a taxing

HB0197 - 33 - LRB096 03304 HLH 13322 b
district is located (i) used estimated valuations or rates when
extending taxes in the taxing district for the last preceding
levy year that resulted in the over or under extension of
taxes, or (ii) increased or decreased the tax extension for the
last preceding levy year as required by Section 18-135(c).
Whenever an adjustment is required under Section 18-135, the
aggregate extension base of the taxing district shall be equal
to the amount that the aggregate extension of the taxing
district would have been for the last preceding levy year if
either or both (i) actual, rather than estimated, valuations or
rates had been used to calculate the extension of taxes for the
last levy year, or (ii) the tax extension for the last
preceding levy year had not been adjusted as required by
subsection (c) of Section 18-135.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new improvements
or additions to existing improvements on any parcel of real
property that increase the assessed value of that real property
during the levy year multiplied by the equalization factor
issued by the Department under Section 17-30, (ii) the assessed
value, after final board of review or board of appeals action,
of real property not exempt from real estate taxation, which
real property was exempt from real estate taxation for any
portion of the immediately preceding levy year, multiplied by

HB0197 - 34 - LRB096 03304 HLH 13322 b
the equalization factor issued by the Department under Section
17-30, including the assessed value, upon final stabilization
of occupancy after new construction is complete, of any real
property located within the boundaries of an otherwise or
previously exempt military reservation that is intended for
residential use and owned by or leased to a private corporation
or other entity, and (iii) in counties that classify in
accordance with Section 4 of Article IX of the Illinois
Constitution, an incentive property's additional assessed
value resulting from a scheduled increase in the level of
assessment as applied to the first year final board of review
market value. In addition, the county clerk in a county
containing a population of 3,000,000 or more shall include in
the 1997 recovered tax increment value for any school district,
any recovered tax increment value that was applicable to the
1995 tax year calculations.
"Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
"Recovered tax increment value" means, except as otherwise
provided in this paragraph, the amount of the current year's
equalized assessed value, in the first year after a
municipality terminates the designation of an area as a
redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois

HB0197 - 35 - LRB096 03304 HLH 13322 b
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, previously
established under the Economic Development Project Area Tax
Increment Act of 1995, or previously established under the
Economic Development Area Tax Increment Allocation Act, of each
taxable lot, block, tract, or parcel of real property in the
redevelopment project area over and above the initial equalized
assessed value of each property in the redevelopment project
area. For the taxes which are extended for the 1997 levy year,
the recovered tax increment value for a non-home rule taxing
district that first became subject to this Law for the 1995
levy year because a majority of its 1994 equalized assessed
value was in an affected county or counties shall be increased
if a municipality terminated the designation of an area in 1993
as a redevelopment project area previously established under
the Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or previously
established under the Economic Development Area Tax Increment
Allocation Act, by an amount equal to the 1994 equalized
assessed value of each taxable lot, block, tract, or parcel of
real property in the redevelopment project area over and above
the initial equalized assessed value of each property in the
redevelopment project area. In the first year after a
municipality removes a taxable lot, block, tract, or parcel of
real property from a redevelopment project area established

HB0197 - 36 - LRB096 03304 HLH 13322 b
under the Tax Increment Allocation Development Act in the
Illinois Municipal Code, the Industrial Jobs Recovery Law in
the Illinois Municipal Code, or the Economic Development Area
Tax Increment Allocation Act, "recovered tax increment value"
means the amount of the current year's equalized assessed value
of each taxable lot, block, tract, or parcel of real property
removed from the redevelopment project area over and above the
initial equalized assessed value of that real property before
removal from the redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to one
plus the extension limitation defined in this Section and the
denominator of which is the current year's equalized assessed
value of all real property in the territory under the
jurisdiction of the taxing district during the prior levy year.
For those taxing districts that reduced their aggregate
extension for the last preceding levy year, the highest
aggregate extension in any of the last 3 preceding levy years
shall be used for the purpose of computing the limiting rate.
The denominator shall not include new property or the recovered
tax increment value. If a new rate, a rate decrease, or a
limiting rate increase has been approved at an election held
after March 21, 2006, then (i) the otherwise applicable
limiting rate shall be increased by the amount of the new rate
or shall be reduced by the amount of the rate decrease, as the

HB0197 - 37 - LRB096 03304 HLH 13322 b
case may be, or (ii) in the case of a limiting rate increase,
the limiting rate shall be equal to the rate set forth in the
proposition approved by the voters for each of the years
specified in the proposition, after which the limiting rate of
the taxing district shall be calculated as otherwise provided.
(Source: P.A. 94-974, eff. 6-30-06; 94-976, eff. 6-30-06;
94-1078, eff. 1-9-07; 95-90, eff. 1-1-08; 95-331, eff. 8-21-07;
95-404, eff. 1-1-08; 95-876, eff. 8-21-08.)
(35 ILCS 200/20-178)
Sec. 20-178. Certificate of error; refund; interest. When
the county collector makes any refunds due on certificates of
error issued under Sections 14-15 through 14-25 that have been
either certified or adjudicated, the county collector shall pay
the taxpayer interest on the amount of the refund at the rate
of 0.5% per month.
No interest shall be due under this Section for any time
prior to 60 days after the effective date of this amendatory
Act of the 91st General Assembly. For certificates of error
issued prior to the effective date of this amendatory Act of
the 91st General Assembly, the county collector shall pay the
taxpayer interest from 60 days after the effective date of this
amendatory Act of the 91st General Assembly until the date the
refund is paid. For certificates of error issued on or after
the effective date of this amendatory Act of the 91st General
Assembly, interest shall be paid from 60 days after the

HB0197 - 38 - LRB096 03304 HLH 13322 b
certificate of error is issued by the chief county assessment
officer to the date the refund is made. To cover the cost of
interest, the county collector shall proportionately reduce
the distribution of taxes collected for each taxing district in
which the property is situated.
This Section shall not apply to any certificate of error
granting a homestead exemption under Section 15-170, 15-172,
15-175, 15-176, or 15-177, or 15-178.
(Source: P.A. 95-644, eff. 10-12-07.)
Section 10. The School Code is amended by changing Section
18-8.05 as follows:
(105 ILCS 5/18-8.05)
Sec. 18-8.05. Basis for apportionment of general State
financial aid and supplemental general State aid to the common
schools for the 1998-1999 and subsequent school years.
(A) General Provisions.
(1) The provisions of this Section apply to the 1998-1999
and subsequent school years. The system of general State
financial aid provided for in this Section is designed to
assure that, through a combination of State financial aid and
required local resources, the financial support provided each
pupil in Average Daily Attendance equals or exceeds a
prescribed per pupil Foundation Level. This formula approach

HB0197 - 39 - LRB096 03304 HLH 13322 b
imputes a level of per pupil Available Local Resources and
provides for the basis to calculate a per pupil level of
general State financial aid that, when added to Available Local
Resources, equals or exceeds the Foundation Level. The amount
of per pupil general State financial aid for school districts,
in general, varies in inverse relation to Available Local
Resources. Per pupil amounts are based upon each school
district's Average Daily Attendance as that term is defined in
this Section.
(2) In addition to general State financial aid, school
districts with specified levels or concentrations of pupils
from low income households are eligible to receive supplemental
general State financial aid grants as provided pursuant to
subsection (H). The supplemental State aid grants provided for
school districts under subsection (H) shall be appropriated for
distribution to school districts as part of the same line item
in which the general State financial aid of school districts is
appropriated under this Section.
(3) To receive financial assistance under this Section,
school districts are required to file claims with the State
Board of Education, subject to the following requirements:
(a) Any school district which fails for any given
school year to maintain school as required by law, or to
maintain a recognized school is not eligible to file for
such school year any claim upon the Common School Fund. In
case of nonrecognition of one or more attendance centers in

HB0197 - 40 - LRB096 03304 HLH 13322 b
a school district otherwise operating recognized schools,
the claim of the district shall be reduced in the
proportion which the Average Daily Attendance in the
attendance center or centers bear to the Average Daily
Attendance in the school district. A "recognized school"
means any public school which meets the standards as
established for recognition by the State Board of
Education. A school district or attendance center not
having recognition status at the end of a school term is
entitled to receive State aid payments due upon a legal
claim which was filed while it was recognized.
(b) School district claims filed under this Section are
subject to Sections 18-9 and 18-12, except as otherwise
provided in this Section.
(c) If a school district operates a full year school
under Section 10-19.1, the general State aid to the school
district shall be determined by the State Board of
Education in accordance with this Section as near as may be
applicable.
(d) (Blank).
(4) Except as provided in subsections (H) and (L), the
board of any district receiving any of the grants provided for
in this Section may apply those funds to any fund so received
for which that board is authorized to make expenditures by law.
School districts are not required to exert a minimum
Operating Tax Rate in order to qualify for assistance under

HB0197 - 41 - LRB096 03304 HLH 13322 b
this Section.
(5) As used in this Section the following terms, when
capitalized, shall have the meaning ascribed herein:
(a) "Average Daily Attendance": A count of pupil
attendance in school, averaged as provided for in
subsection (C) and utilized in deriving per pupil financial
support levels.
(b) "Available Local Resources": A computation of
local financial support, calculated on the basis of Average
Daily Attendance and derived as provided pursuant to
subsection (D).
(c) "Corporate Personal Property Replacement Taxes":
Funds paid to local school districts pursuant to "An Act in
relation to the abolition of ad valorem personal property
tax and the replacement of revenues lost thereby, and
amending and repealing certain Acts and parts of Acts in
connection therewith", certified August 14, 1979, as
amended (Public Act 81-1st S.S.-1).
(d) "Foundation Level": A prescribed level of per pupil
financial support as provided for in subsection (B).
(e) "Operating Tax Rate": All school district property
taxes extended for all purposes, except Bond and Interest,
Summer School, Rent, Capital Improvement, and Vocational
Education Building purposes.
(B) Foundation Level.

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(1) The Foundation Level is a figure established by the
State representing the minimum level of per pupil financial
support that should be available to provide for the basic
education of each pupil in Average Daily Attendance. As set
forth in this Section, each school district is assumed to exert
a sufficient local taxing effort such that, in combination with
the aggregate of general State financial aid provided the
district, an aggregate of State and local resources are
available to meet the basic education needs of pupils in the
district.
(2) For the 1998-1999 school year, the Foundation Level of
support is $4,225. For the 1999-2000 school year, the
Foundation Level of support is $4,325. For the 2000-2001 school
year, the Foundation Level of support is $4,425. For the
2001-2002 school year and 2002-2003 school year, the Foundation
Level of support is $4,560. For the 2003-2004 school year, the
Foundation Level of support is $4,810. For the 2004-2005 school
year, the Foundation Level of support is $4,964. For the
2005-2006 school year, the Foundation Level of support is
$5,164. For the 2006-2007 school year, the Foundation Level of
support is $5,334. For the 2007-2008 school year, the
Foundation Level of support is $5,734.
(3) For the 2008-2009 school year and each school year
thereafter, the Foundation Level of support is $5,959 or such
greater amount as may be established by law by the General
Assembly.

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(C) Average Daily Attendance.
(1) For purposes of calculating general State aid pursuant
to subsection (E), an Average Daily Attendance figure shall be
utilized. The Average Daily Attendance figure for formula
calculation purposes shall be the monthly average of the actual
number of pupils in attendance of each school district, as
further averaged for the best 3 months of pupil attendance for
each school district. In compiling the figures for the number
of pupils in attendance, school districts and the State Board
of Education shall, for purposes of general State aid funding,
conform attendance figures to the requirements of subsection
(F).
(2) The Average Daily Attendance figures utilized in
subsection (E) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated or the average of the
attendance data for the 3 preceding school years, whichever is
greater. The Average Daily Attendance figures utilized in
subsection (H) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated.
(D) Available Local Resources.
(1) For purposes of calculating general State aid pursuant
to subsection (E), a representation of Available Local

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Resources per pupil, as that term is defined and determined in
this subsection, shall be utilized. Available Local Resources
per pupil shall include a calculated dollar amount representing
local school district revenues from local property taxes and
from Corporate Personal Property Replacement Taxes, expressed
on the basis of pupils in Average Daily Attendance. Calculation
of Available Local Resources shall exclude any tax amnesty
funds received as a result of Public Act 93-26.
(2) In determining a school district's revenue from local
property taxes, the State Board of Education shall utilize the
equalized assessed valuation of all taxable property of each
school district as of September 30 of the previous year. The
equalized assessed valuation utilized shall be obtained and
determined as provided in subsection (G).
(3) For school districts maintaining grades kindergarten
through 12, local property tax revenues per pupil shall be
calculated as the product of the applicable equalized assessed
valuation for the district multiplied by 3.00%, and divided by
the district's Average Daily Attendance figure. For school
districts maintaining grades kindergarten through 8, local
property tax revenues per pupil shall be calculated as the
product of the applicable equalized assessed valuation for the
district multiplied by 2.30%, and divided by the district's
Average Daily Attendance figure. For school districts
maintaining grades 9 through 12, local property tax revenues
per pupil shall be the applicable equalized assessed valuation

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of the district multiplied by 1.05%, and divided by the
district's Average Daily Attendance figure.
For partial elementary unit districts created pursuant to
Article 11E of this Code, local property tax revenues per pupil
shall be calculated as the product of the equalized assessed
valuation for property within the partial elementary unit
district for elementary purposes, as defined in Article 11E of
this Code, multiplied by 2.06% and divided by the district's
Average Daily Attendance figure, plus the product of the
equalized assessed valuation for property within the partial
elementary unit district for high school purposes, as defined
in Article 11E of this Code, multiplied by 0.94% and divided by
the district's Average Daily Attendance figure.
(4) The Corporate Personal Property Replacement Taxes paid
to each school district during the calendar year 2 years before
the calendar year in which a school year begins, divided by the
Average Daily Attendance figure for that district, shall be
added to the local property tax revenues per pupil as derived
by the application of the immediately preceding paragraph (3).
The sum of these per pupil figures for each school district
shall constitute Available Local Resources as that term is
utilized in subsection (E) in the calculation of general State
aid.
(E) Computation of General State Aid.
(1) For each school year, the amount of general State aid

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allotted to a school district shall be computed by the State
Board of Education as provided in this subsection.
(2) For any school district for which Available Local
Resources per pupil is less than the product of 0.93 times the
Foundation Level, general State aid for that district shall be
calculated as an amount equal to the Foundation Level minus
Available Local Resources, multiplied by the Average Daily
Attendance of the school district.
(3) For any school district for which Available Local
Resources per pupil is equal to or greater than the product of
0.93 times the Foundation Level and less than the product of
1.75 times the Foundation Level, the general State aid per
pupil shall be a decimal proportion of the Foundation Level
derived using a linear algorithm. Under this linear algorithm,
the calculated general State aid per pupil shall decline in
direct linear fashion from 0.07 times the Foundation Level for
a school district with Available Local Resources equal to the
product of 0.93 times the Foundation Level, to 0.05 times the
Foundation Level for a school district with Available Local
Resources equal to the product of 1.75 times the Foundation
Level. The allocation of general State aid for school districts
subject to this paragraph 3 shall be the calculated general
State aid per pupil figure multiplied by the Average Daily
Attendance of the school district.
(4) For any school district for which Available Local
Resources per pupil equals or exceeds the product of 1.75 times

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the Foundation Level, the general State aid for the school
district shall be calculated as the product of $218 multiplied
by the Average Daily Attendance of the school district.
(5) The amount of general State aid allocated to a school
district for the 1999-2000 school year meeting the requirements
set forth in paragraph (4) of subsection (G) shall be increased
by an amount equal to the general State aid that would have
been received by the district for the 1998-1999 school year by
utilizing the Extension Limitation Equalized Assessed
Valuation as calculated in paragraph (4) of subsection (G) less
the general State aid allotted for the 1998-1999 school year.
This amount shall be deemed a one time increase, and shall not
affect any future general State aid allocations.
(F) Compilation of Average Daily Attendance.
(1) Each school district shall, by July 1 of each year,
submit to the State Board of Education, on forms prescribed by
the State Board of Education, attendance figures for the school
year that began in the preceding calendar year. The attendance
information so transmitted shall identify the average daily
attendance figures for each month of the school year. Beginning
with the general State aid claim form for the 2002-2003 school
year, districts shall calculate Average Daily Attendance as
provided in subdivisions (a), (b), and (c) of this paragraph
(1).
(a) In districts that do not hold year-round classes,

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days of attendance in August shall be added to the month of
September and any days of attendance in June shall be added
to the month of May.
(b) In districts in which all buildings hold year-round
classes, days of attendance in July and August shall be
added to the month of September and any days of attendance
in June shall be added to the month of May.
(c) In districts in which some buildings, but not all,
hold year-round classes, for the non-year-round buildings,
days of attendance in August shall be added to the month of
September and any days of attendance in June shall be added
to the month of May. The average daily attendance for the
year-round buildings shall be computed as provided in
subdivision (b) of this paragraph (1). To calculate the
Average Daily Attendance for the district, the average
daily attendance for the year-round buildings shall be
multiplied by the days in session for the non-year-round
buildings for each month and added to the monthly
attendance of the non-year-round buildings.
Except as otherwise provided in this Section, days of
attendance by pupils shall be counted only for sessions of not
less than 5 clock hours of school work per day under direct
supervision of: (i) teachers, or (ii) non-teaching personnel or
volunteer personnel when engaging in non-teaching duties and
supervising in those instances specified in subsection (a) of
Section 10-22.34 and paragraph 10 of Section 34-18, with pupils

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of legal school age and in kindergarten and grades 1 through
12.
Days of attendance by tuition pupils shall be accredited
only to the districts that pay the tuition to a recognized
school.
(2) Days of attendance by pupils of less than 5 clock hours
of school shall be subject to the following provisions in the
compilation of Average Daily Attendance.
(a) Pupils regularly enrolled in a public school for
only a part of the school day may be counted on the basis
of 1/6 day for every class hour of instruction of 40
minutes or more attended pursuant to such enrollment,
unless a pupil is enrolled in a block-schedule format of 80
minutes or more of instruction, in which case the pupil may
be counted on the basis of the proportion of minutes of
school work completed each day to the minimum number of
minutes that school work is required to be held that day.
(b) Days of attendance may be less than 5 clock hours
on the opening and closing of the school term, and upon the
first day of pupil attendance, if preceded by a day or days
utilized as an institute or teachers' workshop.
(c) A session of 4 or more clock hours may be counted
as a day of attendance upon certification by the regional
superintendent, and approved by the State Superintendent
of Education to the extent that the district has been
forced to use daily multiple sessions.

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(d) A session of 3 or more clock hours may be counted
as a day of attendance (1) when the remainder of the school
day or at least 2 hours in the evening of that day is
utilized for an in-service training program for teachers,
up to a maximum of 5 days per school year of which a
maximum of 4 days of such 5 days may be used for
parent-teacher conferences, provided a district conducts
an in-service training program for teachers which has been
approved by the State Superintendent of Education; or, in
lieu of 4 such days, 2 full days may be used, in which
event each such day may be counted as a day of attendance;
and (2) when days in addition to those provided in item (1)
are scheduled by a school pursuant to its school
improvement plan adopted under Article 34 or its revised or
amended school improvement plan adopted under Article 2,
provided that (i) such sessions of 3 or more clock hours
are scheduled to occur at regular intervals, (ii) the
remainder of the school days in which such sessions occur
are utilized for in-service training programs or other
staff development activities for teachers, and (iii) a
sufficient number of minutes of school work under the
direct supervision of teachers are added to the school days
between such regularly scheduled sessions to accumulate
not less than the number of minutes by which such sessions
of 3 or more clock hours fall short of 5 clock hours. Any
full days used for the purposes of this paragraph shall not

HB0197 - 51 - LRB096 03304 HLH 13322 b
be considered for computing average daily attendance. Days
scheduled for in-service training programs, staff
development activities, or parent-teacher conferences may
be scheduled separately for different grade levels and
different attendance centers of the district.
(e) A session of not less than one clock hour of
teaching hospitalized or homebound pupils on-site or by
telephone to the classroom may be counted as 1/2 day of
attendance, however these pupils must receive 4 or more
clock hours of instruction to be counted for a full day of
attendance.
(f) A session of at least 4 clock hours may be counted
as a day of attendance for first grade pupils, and pupils
in full day kindergartens, and a session of 2 or more hours
may be counted as 1/2 day of attendance by pupils in
kindergartens which provide only 1/2 day of attendance.
(g) For children with disabilities who are below the
age of 6 years and who cannot attend 2 or more clock hours
because of their disability or immaturity, a session of not
less than one clock hour may be counted as 1/2 day of
attendance; however for such children whose educational
needs so require a session of 4 or more clock hours may be
counted as a full day of attendance.
(h) A recognized kindergarten which provides for only
1/2 day of attendance by each pupil shall not have more
than 1/2 day of attendance counted in any one day. However,

HB0197 - 52 - LRB096 03304 HLH 13322 b
kindergartens may count 2 1/2 days of attendance in any 5
consecutive school days. When a pupil attends such a
kindergarten for 2 half days on any one school day, the
pupil shall have the following day as a day absent from
school, unless the school district obtains permission in
writing from the State Superintendent of Education.
Attendance at kindergartens which provide for a full day of
attendance by each pupil shall be counted the same as
attendance by first grade pupils. Only the first year of
attendance in one kindergarten shall be counted, except in
case of children who entered the kindergarten in their
fifth year whose educational development requires a second
year of kindergarten as determined under the rules and
regulations of the State Board of Education.
(i) On the days when the Prairie State Achievement
Examination is administered under subsection (c) of
Section 2-3.64 of this Code, the day of attendance for a
pupil whose school day must be shortened to accommodate
required testing procedures may be less than 5 clock hours
and shall be counted towards the 176 days of actual pupil
attendance required under Section 10-19 of this Code,
provided that a sufficient number of minutes of school work
in excess of 5 clock hours are first completed on other
school days to compensate for the loss of school work on
the examination days.

HB0197 - 53 - LRB096 03304 HLH 13322 b
(G) Equalized Assessed Valuation Data.
(1) For purposes of the calculation of Available Local
Resources required pursuant to subsection (D), the State Board
of Education shall secure from the Department of Revenue the
value as equalized or assessed by the Department of Revenue of
all taxable property of every school district, together with
(i) the applicable tax rate used in extending taxes for the
funds of the district as of September 30 of the previous year
and (ii) the limiting rate for all school districts subject to
property tax extension limitations as imposed under the
Property Tax Extension Limitation Law.
The Department of Revenue shall add to the equalized
assessed value of all taxable property of each school district
situated entirely or partially within a county that is or was
subject to the provisions of Section 15-176, or 15-177, or
15-178 of the Property Tax Code (a) an amount equal to the
total amount by which the homestead exemption allowed under
Section 15-176, or 15-177, or 15-178 of the Property Tax Code
for real property situated in that school district exceeds the
total amount that would have been allowed in that school
district if the maximum reduction under Section 15-176 was (i)
$4,500 in Cook County or $3,500 in all other counties in tax
year 2003 or (ii) $5,000 in all counties in tax year 2004 and
thereafter and (b) an amount equal to the aggregate amount for
the taxable year of all additional exemptions under Section
15-175 of the Property Tax Code for owners with a household

HB0197 - 54 - LRB096 03304 HLH 13322 b
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, or 15-178 of the Property Tax Code shall annually
calculate and certify to the Department of Revenue for each
school district all homestead exemption amounts under Section
15-176, or 15-177, or 15-178 of the Property Tax Code and all
amounts of additional exemptions under Section 15-175 of the
Property Tax Code for owners with a household income of $30,000
or less. It is the intent of this paragraph that if the general
homestead exemption for a parcel of property is determined
under Section 15-176, or 15-177, or 15-178 of the Property Tax
Code rather than Section 15-175, then the calculation of
Available Local Resources shall not be affected by the
difference, if any, between the amount of the general homestead
exemption allowed for that parcel of property under Section
15-176, or 15-177, or 15-178 of the Property Tax Code and the
amount that would have been allowed had the general homestead
exemption for that parcel of property been determined under
Section 15-175 of the Property Tax Code. It is further the
intent of this paragraph that if additional exemptions are
allowed under Section 15-175 of the Property Tax Code for
owners with a household income of less than $30,000, then the
calculation of Available Local Resources shall not be affected
by the difference, if any, because of those additional
exemptions.
This equalized assessed valuation, as adjusted further by

HB0197 - 55 - LRB096 03304 HLH 13322 b
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
(2) The equalized assessed valuation in paragraph (1) shall
be adjusted, as applicable, in the following manner:
(a) For the purposes of calculating State aid under
this Section, with respect to any part of a school district
within a redevelopment project area in respect to which a
municipality has adopted tax increment allocation
financing pursuant to the Tax Increment Allocation
Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
of the Illinois Municipal Code or the Industrial Jobs
Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
Illinois Municipal Code, no part of the current equalized
assessed valuation of real property located in any such
project area which is attributable to an increase above the
total initial equalized assessed valuation of such
property shall be used as part of the equalized assessed
valuation of the district, until such time as all
redevelopment project costs have been paid, as provided in
Section 11-74.4-8 of the Tax Increment Allocation
Redevelopment Act or in Section 11-74.6-35 of the
Industrial Jobs Recovery Law. For the purpose of the
equalized assessed valuation of the district, the total
initial equalized assessed valuation or the current
equalized assessed valuation, whichever is lower, shall be
used until such time as all redevelopment project costs

HB0197 - 56 - LRB096 03304 HLH 13322 b
have been paid.
(b) The real property equalized assessed valuation for
a school district shall be adjusted by subtracting from the
real property value as equalized or assessed by the
Department of Revenue for the district an amount computed
by dividing the amount of any abatement of taxes under
Section 18-170 of the Property Tax Code by 3.00% for a
district maintaining grades kindergarten through 12, by
2.30% for a district maintaining grades kindergarten
through 8, or by 1.05% for a district maintaining grades 9
through 12 and adjusted by an amount computed by dividing
the amount of any abatement of taxes under subsection (a)
of Section 18-165 of the Property Tax Code by the same
percentage rates for district type as specified in this
subparagraph (b).
(3) For the 1999-2000 school year and each school year
thereafter, if a school district meets all of the criteria of
this subsection (G)(3), the school district's Available Local
Resources shall be calculated under subsection (D) using the
district's Extension Limitation Equalized Assessed Valuation
as calculated under this subsection (G)(3).
For purposes of this subsection (G)(3) the following terms
shall have the following meanings:
"Budget Year": The school year for which general State
aid is calculated and awarded under subsection (E).
"Base Tax Year": The property tax levy year used to

HB0197 - 57 - LRB096 03304 HLH 13322 b
calculate the Budget Year allocation of general State aid.
"Preceding Tax Year": The property tax levy year
immediately preceding the Base Tax Year.
"Base Tax Year's Tax Extension": The product of the
equalized assessed valuation utilized by the County Clerk
in the Base Tax Year multiplied by the limiting rate as
calculated by the County Clerk and defined in the Property
Tax Extension Limitation Law.
"Preceding Tax Year's Tax Extension": The product of
the equalized assessed valuation utilized by the County
Clerk in the Preceding Tax Year multiplied by the Operating
Tax Rate as defined in subsection (A).
"Extension Limitation Ratio": A numerical ratio,
certified by the County Clerk, in which the numerator is
the Base Tax Year's Tax Extension and the denominator is
the Preceding Tax Year's Tax Extension.
"Operating Tax Rate": The operating tax rate as defined
in subsection (A).
If a school district is subject to property tax extension
limitations as imposed under the Property Tax Extension
Limitation Law, the State Board of Education shall calculate
the Extension Limitation Equalized Assessed Valuation of that
district. For the 1999-2000 school year, the Extension
Limitation Equalized Assessed Valuation of a school district as
calculated by the State Board of Education shall be equal to
the product of the district's 1996 Equalized Assessed Valuation

HB0197 - 58 - LRB096 03304 HLH 13322 b
and the district's Extension Limitation Ratio. For the
2000-2001 school year and each school year thereafter, the
Extension Limitation Equalized Assessed Valuation of a school
district as calculated by the State Board of Education shall be
equal to the product of the Equalized Assessed Valuation last
used in the calculation of general State aid and the district's
Extension Limitation Ratio. If the Extension Limitation
Equalized Assessed Valuation of a school district as calculated
under this subsection (G)(3) is less than the district's
equalized assessed valuation as calculated pursuant to
subsections (G)(1) and (G)(2), then for purposes of calculating
the district's general State aid for the Budget Year pursuant
to subsection (E), that Extension Limitation Equalized
Assessed Valuation shall be utilized to calculate the
district's Available Local Resources under subsection (D).
Partial elementary unit districts created in accordance
with Article 11E of this Code shall not be eligible for the
adjustment in this subsection (G)(3) until the fifth year
following the effective date of the reorganization.
(4) For the purposes of calculating general State aid for
the 1999-2000 school year only, if a school district
experienced a triennial reassessment on the equalized assessed
valuation used in calculating its general State financial aid
apportionment for the 1998-1999 school year, the State Board of
Education shall calculate the Extension Limitation Equalized
Assessed Valuation that would have been used to calculate the

HB0197 - 59 - LRB096 03304 HLH 13322 b
district's 1998-1999 general State aid. This amount shall equal
the product of the equalized assessed valuation used to
calculate general State aid for the 1997-1998 school year and
the district's Extension Limitation Ratio. If the Extension
Limitation Equalized Assessed Valuation of the school district
as calculated under this paragraph (4) is less than the
district's equalized assessed valuation utilized in
calculating the district's 1998-1999 general State aid
allocation, then for purposes of calculating the district's
general State aid pursuant to paragraph (5) of subsection (E),
that Extension Limitation Equalized Assessed Valuation shall
be utilized to calculate the district's Available Local
Resources.
(5) For school districts having a majority of their
equalized assessed valuation in any county except Cook, DuPage,
Kane, Lake, McHenry, or Will, if the amount of general State
aid allocated to the school district for the 1999-2000 school
year under the provisions of subsection (E), (H), and (J) of
this Section is less than the amount of general State aid
allocated to the district for the 1998-1999 school year under
these subsections, then the general State aid of the district
for the 1999-2000 school year only shall be increased by the
difference between these amounts. The total payments made under
this paragraph (5) shall not exceed $14,000,000. Claims shall
be prorated if they exceed $14,000,000.

HB0197 - 60 - LRB096 03304 HLH 13322 b
(H) Supplemental General State Aid.
(1) In addition to the general State aid a school district
is allotted pursuant to subsection (E), qualifying school
districts shall receive a grant, paid in conjunction with a
district's payments of general State aid, for supplemental
general State aid based upon the concentration level of
children from low-income households within the school
district. Supplemental State aid grants provided for school
districts under this subsection shall be appropriated for
distribution to school districts as part of the same line item
in which the general State financial aid of school districts is
appropriated under this Section. If the appropriation in any
fiscal year for general State aid and supplemental general
State aid is insufficient to pay the amounts required under the
general State aid and supplemental general State aid
calculations, then the State Board of Education shall ensure
that each school district receives the full amount due for
general State aid and the remainder of the appropriation shall
be used for supplemental general State aid, which the State
Board of Education shall calculate and pay to eligible
districts on a prorated basis.
(1.5) This paragraph (1.5) applies only to those school
years preceding the 2003-2004 school year. For purposes of this
subsection (H), the term "Low-Income Concentration Level"
shall be the low-income eligible pupil count from the most
recently available federal census divided by the Average Daily

HB0197 - 61 - LRB096 03304 HLH 13322 b
Attendance of the school district. If, however, (i) the
percentage decrease from the 2 most recent federal censuses in
the low-income eligible pupil count of a high school district
with fewer than 400 students exceeds by 75% or more the
percentage change in the total low-income eligible pupil count
of contiguous elementary school districts, whose boundaries
are coterminous with the high school district, or (ii) a high
school district within 2 counties and serving 5 elementary
school districts, whose boundaries are coterminous with the
high school district, has a percentage decrease from the 2 most
recent federal censuses in the low-income eligible pupil count
and there is a percentage increase in the total low-income
eligible pupil count of a majority of the elementary school
districts in excess of 50% from the 2 most recent federal
censuses, then the high school district's low-income eligible
pupil count from the earlier federal census shall be the number
used as the low-income eligible pupil count for the high school
district, for purposes of this subsection (H). The changes made
to this paragraph (1) by Public Act 92-28 shall apply to
supplemental general State aid grants for school years
preceding the 2003-2004 school year that are paid in fiscal
year 1999 or thereafter and to any State aid payments made in
fiscal year 1994 through fiscal year 1998 pursuant to
subsection 1(n) of Section 18-8 of this Code (which was
repealed on July 1, 1998), and any high school district that is
affected by Public Act 92-28 is entitled to a recomputation of

HB0197 - 62 - LRB096 03304 HLH 13322 b
its supplemental general State aid grant or State aid paid in
any of those fiscal years. This recomputation shall not be
affected by any other funding.
(1.10) This paragraph (1.10) applies to the 2003-2004
school year and each school year thereafter. For purposes of
this subsection (H), the term "Low-Income Concentration Level"
shall, for each fiscal year, be the low-income eligible pupil
count as of July 1 of the immediately preceding fiscal year (as
determined by the Department of Human Services based on the
number of pupils who are eligible for at least one of the
following low income programs: Medicaid, KidCare, TANF, or Food
Stamps, excluding pupils who are eligible for services provided
by the Department of Children and Family Services, averaged
over the 2 immediately preceding fiscal years for fiscal year
2004 and over the 3 immediately preceding fiscal years for each
fiscal year thereafter) divided by the Average Daily Attendance
of the school district.
(2) Supplemental general State aid pursuant to this
subsection (H) shall be provided as follows for the 1998-1999,
1999-2000, and 2000-2001 school years only:
(a) For any school district with a Low Income
Concentration Level of at least 20% and less than 35%, the
grant for any school year shall be $800 multiplied by the
low income eligible pupil count.
(b) For any school district with a Low Income
Concentration Level of at least 35% and less than 50%, the

HB0197 - 63 - LRB096 03304 HLH 13322 b
grant for the 1998-1999 school year shall be $1,100
multiplied by the low income eligible pupil count.
(c) For any school district with a Low Income
Concentration Level of at least 50% and less than 60%, the
grant for the 1998-99 school year shall be $1,500
multiplied by the low income eligible pupil count.
(d) For any school district with a Low Income
Concentration Level of 60% or more, the grant for the
1998-99 school year shall be $1,900 multiplied by the low
income eligible pupil count.
(e) For the 1999-2000 school year, the per pupil amount
specified in subparagraphs (b), (c), and (d) immediately
above shall be increased to $1,243, $1,600, and $2,000,
respectively.
(f) For the 2000-2001 school year, the per pupil
amounts specified in subparagraphs (b), (c), and (d)
immediately above shall be $1,273, $1,640, and $2,050,
respectively.
(2.5) Supplemental general State aid pursuant to this
subsection (H) shall be provided as follows for the 2002-2003
school year:
(a) For any school district with a Low Income
Concentration Level of less than 10%, the grant for each
school year shall be $355 multiplied by the low income
eligible pupil count.
(b) For any school district with a Low Income

HB0197 - 64 - LRB096 03304 HLH 13322 b
Concentration Level of at least 10% and less than 20%, the
grant for each school year shall be $675 multiplied by the
low income eligible pupil count.
(c) For any school district with a Low Income
Concentration Level of at least 20% and less than 35%, the
grant for each school year shall be $1,330 multiplied by
the low income eligible pupil count.
(d) For any school district with a Low Income
Concentration Level of at least 35% and less than 50%, the
grant for each school year shall be $1,362 multiplied by
the low income eligible pupil count.
(e) For any school district with a Low Income
Concentration Level of at least 50% and less than 60%, the
grant for each school year shall be $1,680 multiplied by
the low income eligible pupil count.
(f) For any school district with a Low Income
Concentration Level of 60% or more, the grant for each
school year shall be $2,080 multiplied by the low income
eligible pupil count.
(2.10) Except as otherwise provided, supplemental general
State aid pursuant to this subsection (H) shall be provided as
follows for the 2003-2004 school year and each school year
thereafter:
(a) For any school district with a Low Income
Concentration Level of 15% or less, the grant for each
school year shall be $355 multiplied by the low income

HB0197 - 65 - LRB096 03304 HLH 13322 b
eligible pupil count.
(b) For any school district with a Low Income
Concentration Level greater than 15%, the grant for each
school year shall be $294.25 added to the product of $2,700
and the square of the Low Income Concentration Level, all
multiplied by the low income eligible pupil count.
For the 2003-2004 school year and each school year
thereafter through the 2008-2009 school year only, the grant
shall be no less than the grant for the 2002-2003 school year.
For the 2009-2010 school year only, the grant shall be no less
than the grant for the 2002-2003 school year multiplied by
0.66. For the 2010-2011 school year only, the grant shall be no
less than the grant for the 2002-2003 school year multiplied by
0.33. Notwithstanding the provisions of this paragraph to the
contrary, if for any school year supplemental general State aid
grants are prorated as provided in paragraph (1) of this
subsection (H), then the grants under this paragraph shall be
prorated.
For the 2003-2004 school year only, the grant shall be no
greater than the grant received during the 2002-2003 school
year added to the product of 0.25 multiplied by the difference
between the grant amount calculated under subsection (a) or (b)
of this paragraph (2.10), whichever is applicable, and the
grant received during the 2002-2003 school year. For the
2004-2005 school year only, the grant shall be no greater than
the grant received during the 2002-2003 school year added to

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the product of 0.50 multiplied by the difference between the
grant amount calculated under subsection (a) or (b) of this
paragraph (2.10), whichever is applicable, and the grant
received during the 2002-2003 school year. For the 2005-2006
school year only, the grant shall be no greater than the grant
received during the 2002-2003 school year added to the product
of 0.75 multiplied by the difference between the grant amount
calculated under subsection (a) or (b) of this paragraph
(2.10), whichever is applicable, and the grant received during
the 2002-2003 school year.
(3) School districts with an Average Daily Attendance of
more than 1,000 and less than 50,000 that qualify for
supplemental general State aid pursuant to this subsection
shall submit a plan to the State Board of Education prior to
October 30 of each year for the use of the funds resulting from
this grant of supplemental general State aid for the
improvement of instruction in which priority is given to
meeting the education needs of disadvantaged children. Such
plan shall be submitted in accordance with rules and
regulations promulgated by the State Board of Education.
(4) School districts with an Average Daily Attendance of
50,000 or more that qualify for supplemental general State aid
pursuant to this subsection shall be required to distribute
from funds available pursuant to this Section, no less than
$261,000,000 in accordance with the following requirements:
(a) The required amounts shall be distributed to the

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attendance centers within the district in proportion to the
number of pupils enrolled at each attendance center who are
eligible to receive free or reduced-price lunches or
breakfasts under the federal Child Nutrition Act of 1966
and under the National School Lunch Act during the
immediately preceding school year.
(b) The distribution of these portions of supplemental
and general State aid among attendance centers according to
these requirements shall not be compensated for or
contravened by adjustments of the total of other funds
appropriated to any attendance centers, and the Board of
Education shall utilize funding from one or several sources
in order to fully implement this provision annually prior
to the opening of school.
(c) Each attendance center shall be provided by the
school district a distribution of noncategorical funds and
other categorical funds to which an attendance center is
entitled under law in order that the general State aid and
supplemental general State aid provided by application of
this subsection supplements rather than supplants the
noncategorical funds and other categorical funds provided
by the school district to the attendance centers.
(d) Any funds made available under this subsection that
by reason of the provisions of this subsection are not
required to be allocated and provided to attendance centers
may be used and appropriated by the board of the district

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for any lawful school purpose.
(e) Funds received by an attendance center pursuant to
this subsection shall be used by the attendance center at
the discretion of the principal and local school council
for programs to improve educational opportunities at
qualifying schools through the following programs and
services: early childhood education, reduced class size or
improved adult to student classroom ratio, enrichment
programs, remedial assistance, attendance improvement, and
other educationally beneficial expenditures which
supplement the regular and basic programs as determined by
the State Board of Education. Funds provided shall not be
expended for any political or lobbying purposes as defined
by board rule.
(f) Each district subject to the provisions of this
subdivision (H)(4) shall submit an acceptable plan to meet
the educational needs of disadvantaged children, in
compliance with the requirements of this paragraph, to the
State Board of Education prior to July 15 of each year.
This plan shall be consistent with the decisions of local
school councils concerning the school expenditure plans
developed in accordance with part 4 of Section 34-2.3. The
State Board shall approve or reject the plan within 60 days
after its submission. If the plan is rejected, the district
shall give written notice of intent to modify the plan
within 15 days of the notification of rejection and then

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submit a modified plan within 30 days after the date of the
written notice of intent to modify. Districts may amend
approved plans pursuant to rules promulgated by the State
Board of Education.
Upon notification by the State Board of Education that
the district has not submitted a plan prior to July 15 or a
modified plan within the time period specified herein, the
State aid funds affected by that plan or modified plan
shall be withheld by the State Board of Education until a
plan or modified plan is submitted.
If the district fails to distribute State aid to
attendance centers in accordance with an approved plan, the
plan for the following year shall allocate funds, in
addition to the funds otherwise required by this
subsection, to those attendance centers which were
underfunded during the previous year in amounts equal to
such underfunding.
For purposes of determining compliance with this
subsection in relation to the requirements of attendance
center funding, each district subject to the provisions of
this subsection shall submit as a separate document by
December 1 of each year a report of expenditure data for
the prior year in addition to any modification of its
current plan. If it is determined that there has been a
failure to comply with the expenditure provisions of this
subsection regarding contravention or supplanting, the

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State Superintendent of Education shall, within 60 days of
receipt of the report, notify the district and any affected
local school council. The district shall within 45 days of
receipt of that notification inform the State
Superintendent of Education of the remedial or corrective
action to be taken, whether by amendment of the current
plan, if feasible, or by adjustment in the plan for the
following year. Failure to provide the expenditure report
or the notification of remedial or corrective action in a
timely manner shall result in a withholding of the affected
funds.
The State Board of Education shall promulgate rules and
regulations to implement the provisions of this
subsection. No funds shall be released under this
subdivision (H)(4) to any district that has not submitted a
plan that has been approved by the State Board of
Education.
(I) (Blank).
(J) Supplementary Grants in Aid.
(1) Notwithstanding any other provisions of this Section,
the amount of the aggregate general State aid in combination
with supplemental general State aid under this Section for
which each school district is eligible shall be no less than
the amount of the aggregate general State aid entitlement that

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was received by the district under Section 18-8 (exclusive of
amounts received under subsections 5(p) and 5(p-5) of that
Section) for the 1997-98 school year, pursuant to the
provisions of that Section as it was then in effect. If a
school district qualifies to receive a supplementary payment
made under this subsection (J), the amount of the aggregate
general State aid in combination with supplemental general
State aid under this Section which that district is eligible to
receive for each school year shall be no less than the amount
of the aggregate general State aid entitlement that was
received by the district under Section 18-8 (exclusive of
amounts received under subsections 5(p) and 5(p-5) of that
Section) for the 1997-1998 school year, pursuant to the
provisions of that Section as it was then in effect.
(2) If, as provided in paragraph (1) of this subsection
(J), a school district is to receive aggregate general State
aid in combination with supplemental general State aid under
this Section for the 1998-99 school year and any subsequent
school year that in any such school year is less than the
amount of the aggregate general State aid entitlement that the
district received for the 1997-98 school year, the school
district shall also receive, from a separate appropriation made
for purposes of this subsection (J), a supplementary payment
that is equal to the amount of the difference in the aggregate
State aid figures as described in paragraph (1).
(3) (Blank).

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

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

HB0197 - 74 - LRB096 03304 HLH 13322 b
of Education, and an amount equal to such reduction shall be
paid to the Authority created for such district for its
operating expenses in the manner provided in Section 18-11. The
remainder of general State school aid for any such district
shall be paid in accordance with Article 34A when that Article
provides for a disposition other than that provided by this
Article.
(2) (Blank).
(3) Summer school. Summer school payments shall be made as
provided in Section 18-4.3.
(M) Education Funding Advisory Board.
The Education Funding Advisory Board, hereinafter in this
subsection (M) referred to as the "Board", is hereby created.
The Board shall consist of 5 members who are appointed by the
Governor, by and with the advice and consent of the Senate. The
members appointed shall include representatives of education,
business, and the general public. One of the members so
appointed shall be designated by the Governor at the time the
appointment is made as the chairperson of the Board. The
initial members of the Board may be appointed any time after
the effective date of this amendatory Act of 1997. The regular
term of each member of the Board shall be for 4 years from the
third Monday of January of the year in which the term of the
member's appointment is to commence, except that of the 5
initial members appointed to serve on the Board, the member who

HB0197 - 75 - LRB096 03304 HLH 13322 b
is appointed as the chairperson shall serve for a term that
commences on the date of his or her appointment and expires on
the third Monday of January, 2002, and the remaining 4 members,
by lots drawn at the first meeting of the Board that is held
after all 5 members are appointed, shall determine 2 of their
number to serve for terms that commence on the date of their
respective appointments and expire on the third Monday of
January, 2001, and 2 of their number to serve for terms that
commence on the date of their respective appointments and
expire on the third Monday of January, 2000. All members
appointed to serve on the Board shall serve until their
respective successors are appointed and confirmed. Vacancies
shall be filled in the same manner as original appointments. If
a vacancy in membership occurs at a time when the Senate is not
in session, the Governor shall make a temporary appointment
until the next meeting of the Senate, when he or she shall
appoint, by and with the advice and consent of the Senate, a
person to fill that membership for the unexpired term. If the
Senate is not in session when the initial appointments are
made, those appointments shall be made as in the case of
vacancies.
The Education Funding Advisory Board shall be deemed
established, and the initial members appointed by the Governor
to serve as members of the Board shall take office, on the date
that the Governor makes his or her appointment of the fifth
initial member of the Board, whether those initial members are

HB0197 - 76 - LRB096 03304 HLH 13322 b
then serving pursuant to appointment and confirmation or
pursuant to temporary appointments that are made by the
Governor as in the case of vacancies.
The State Board of Education shall provide such staff
assistance to the Education Funding Advisory Board as is
reasonably required for the proper performance by the Board of
its responsibilities.
For school years after the 2000-2001 school year, the
Education Funding Advisory Board, in consultation with the
State Board of Education, shall make recommendations as
provided in this subsection (M) to the General Assembly for the
foundation level under subdivision (B)(3) of this Section and
for the supplemental general State aid grant level under
subsection (H) of this Section for districts with high
concentrations of children from poverty. The recommended
foundation level shall be determined based on a methodology
which incorporates the basic education expenditures of
low-spending schools exhibiting high academic performance. The
Education Funding Advisory Board shall make such
recommendations to the General Assembly on January 1 of odd
numbered years, beginning January 1, 2001.
(N) (Blank).
(O) References.
(1) References in other laws to the various subdivisions of

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Section 18-8 as that Section existed before its repeal and
replacement by this Section 18-8.05 shall be deemed to refer to
the corresponding provisions of this Section 18-8.05, to the
extent that those references remain applicable.
(2) References in other laws to State Chapter 1 funds shall
be deemed to refer to the supplemental general State aid
provided under subsection (H) of this Section.
(P) Public Act 93-838 and Public Act 93-808 make inconsistent
changes to this Section. Under Section 6 of the Statute on
Statutes there is an irreconcilable conflict between Public Act
93-808 and Public Act 93-838. Public Act 93-838, being the last
acted upon, is controlling. The text of Public Act 93-838 is
the law regardless of the text of Public Act 93-808.
(Source: P.A. 94-69, eff. 7-1-05; 94-438, eff. 8-4-05; 94-835,
eff. 6-6-06; 94-1019, eff. 7-10-06; 94-1105, eff. 6-1-07;
95-331, eff. 8-21-07; 95-644, eff. 10-12-07; 95-707, eff.
1-11-08; 95-744, eff. 7-18-08; 95-903, eff. 8-25-08; revised
9-5-08.)
Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
(30 ILCS 805/8.33 new)
Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the

HB0197 - 78 - LRB096 03304 HLH 13322 b
implementation of any mandate created by this amendatory Act of
the 96th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
HB0197 - 79 - LRB096 03304 HLH 13322 b
INDEX
Statutes amended in order of appearance
35 ILCS 200/9-147 new
35 ILCS 200/15-10
35 ILCS 200/15-170
35 ILCS 200/15-175
35 ILCS 200/15-178 new
35 ILCS 200/18-179 new
35 ILCS 200/18-185
35 ILCS 200/20-178
105 ILCS 5/18-8.05
30 ILCS 805/8.33 new