98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3690

Introduced , by Rep. Sandra M. Pihos

SYNOPSIS AS INTRODUCED:
105 ILCS 5/1C-1
105 ILCS 5/14-7.02b
105 ILCS 5/14-7.05
105 ILCS 5/Art. 1D rep.

Amends the School Code. Removes language that provides that the Block Grants Article does not apply to the Chicago school district. Repeals the Block Grants for Chicago Article. Makes related changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The School Code is amended by changing Sections
51C-1, 14-7.02b, and 14-7.05 as follows:
6 (105 ILCS 5/1C-1)
7 Sec. 1C-1. Purpose. The purpose of this Article is to
8permit greater flexibility and efficiency in the distribution
9and use of certain State funds available to local education
10agencies for the improvement of the quality of educational
11services pursuant to locally established priorities.
12 This Article does not apply to school districts having a
13population in excess of 500,000 inhabitants.
14(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1589-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
16 (105 ILCS 5/14-7.02b)
17 Sec. 14-7.02b. Funding for children requiring special
18education services. Payments to school districts for children
19requiring special education services documented in their
20individualized education program regardless of the program
21from which these services are received, excluding children
22claimed under Sections 14-7.02 and 14-7.03 of this Code, shall

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1be made in accordance with this Section. Funds received under
2this Section may be used only for the provision of special
3educational facilities and services as defined in Section
414-1.08 of this Code.
5 The appropriation for fiscal year 2005 and thereafter shall
6be based upon the IDEA child count of all students in the
7State, excluding students claimed under Sections 14-7.02 and
814-7.03 of this Code, on December 1 of the fiscal year 2 years
9preceding, multiplied by 17.5% of the general State aid
10foundation level of support established for that fiscal year
11under Section 18-8.05 of this Code.
12 Beginning with fiscal year 2005 and through fiscal year
132007, individual school districts shall not receive payments
14under this Section totaling less than they received under the
15funding authorized under Section 14-7.02a of this Code during
16fiscal year 2004, pursuant to the provisions of Section
1714-7.02a as they were in effect before the effective date of
18this amendatory Act of the 93rd General Assembly. This base
19level funding shall be computed first.
20 Beginning with fiscal year 2008 and each fiscal year
21thereafter, individual school districts must not receive
22payments under this Section totaling less than they received in
23fiscal year 2007. This funding shall be computed last and shall
24be a separate calculation from any other calculation set forth
25in this Section. This amount is exempt from the requirements of
26Section 1D-1 of this Code.

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1 An amount equal to 85% of the funds remaining in the
2appropriation shall be allocated to school districts based upon
3the district's average daily attendance reported for purposes
4of Section 18-8.05 of this Code for the preceding school year.
5Fifteen percent of the funds remaining in the appropriation
6shall be allocated to school districts based upon the
7district's low income eligible pupil count used in the
8calculation of general State aid under Section 18-8.05 of this
9Code for the same fiscal year. One hundred percent of the funds
10computed and allocated to districts under this Section shall be
11distributed and paid to school districts.
12 For individual students with disabilities whose program
13costs exceed 4 times the district's per capita tuition rate as
14calculated under Section 10-20.12a of this Code, the costs in
15excess of 4 times the district's per capita tuition rate shall
16be paid by the State Board of Education from unexpended IDEA
17discretionary funds originally designated for room and board
18reimbursement pursuant to Section 14-8.01 of this Code. The
19amount of tuition for these children shall be determined by the
20actual cost of maintaining classes for these children, using
21the per capita cost formula set forth in Section 14-7.01 of
22this Code, with the program and cost being pre-approved by the
23State Superintendent of Education. Reimbursement for
24individual students with disabilities whose program costs
25exceed 4 times the district's per capita tuition rate shall be
26claimed beginning with costs encumbered for the 2004-2005

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1school year and thereafter.
2 The State Board of Education shall prepare vouchers equal
3to one-fourth the amount allocated to districts, for
4transmittal to the State Comptroller on the 30th day of
5September, December, and March, respectively, and the final
6voucher, no later than June 20. The Comptroller shall make
7payments pursuant to this Section to school districts as soon
8as possible after receipt of vouchers. If the money
9appropriated from the General Assembly for such purposes for
10any year is insufficient, it shall be apportioned on the basis
11of the payments due to school districts.
12 Nothing in this Section shall be construed to decrease or
13increase the percentage of all special education funds that are
14allocated annually under Article 1D of this Code or to alter
15the requirement that a school district provide special
16education services.
17 Nothing in this amendatory Act of the 93rd General Assembly
18shall eliminate any reimbursement obligation owed as of the
19effective date of this amendatory Act of the 93rd General
20Assembly to a school district with in excess of 500,000
21inhabitants.
22(Source: P.A. 93-1022, eff. 8-24-08; 95-705, eff. 1-8-08.)
23 (105 ILCS 5/14-7.05)
24 Sec. 14-7.05. Placement in residential facility; payment
25of educational costs. For any student with a disability in a

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1residential facility placement made or paid for by an Illinois
2public State agency or made by any court in this State, the
3school district of residence as determined pursuant to this
4Article is responsible for the costs of educating the child and
5shall be reimbursed for those costs in accordance with this
6Code. Subject to this Section and relevant State appropriation,
7the resident district's financial responsibility and
8reimbursement must be calculated in accordance with the
9provisions of Section 14-7.02 of this Code. In those instances
10in which a district receives a block grant pursuant to Article
111D of this Code, the district's financial responsibility is
12limited to the actual educational costs of the placement, which
13must be paid by the district from its block grant
14appropriation. Resident district financial responsibility and
15reimbursement applies for both residential facilities that are
16approved by the State Board of Education and non-approved
17facilities, subject to the requirements of this Section. The
18Illinois placing agency or court remains responsible for
19funding the residential portion of the placement and for
20notifying the resident district prior to the placement, except
21in emergency situations. The residential facility in which the
22student is placed shall notify the resident district of the
23student's enrollment as soon as practicable after the
24placement. Failure of the placing agency or court to notify the
25resident district prior to the placement does not absolve the
26resident district of financial responsibility for the

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1educational costs of the placement; however, the resident
2district shall not become financially responsible unless and
3until it receives written notice of the placement by either the
4placing agency, court, or residential facility. The placing
5agency or parent shall request an individualized education
6program (IEP) meeting from the resident district if the
7placement would entail additional educational services beyond
8the student's current IEP. The district of residence shall
9retain control of the IEP process, and any changes to the IEP
10must be done in compliance with the federal Individuals with
11Disabilities Education Act.
12 Payments shall be made by the resident district to the
13entity providing the educational services, whether the entity
14is the residential facility or the school district wherein the
15facility is located, no less than once per quarter unless
16otherwise agreed to in writing by the parties.
17 A residential facility providing educational services
18within the facility, but not approved by the State Board of
19Education, is required to demonstrate proof to the State Board
20of (i) appropriate certification of teachers for the student
21population, (ii) age-appropriate curriculum, (iii) enrollment
22and attendance data, and (iv) the ability to implement the
23child's IEP. A school district is under no obligation to pay
24such a residential facility unless and until such proof is
25provided to the State Board's satisfaction.
26 When a dispute arises over the determination of the

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1district of residence under this Section, any person or entity,
2including without limitation a school district or residential
3facility, may make a written request for a residency decision
4to the State Superintendent of Education, who, upon review of
5materials submitted and any other items of information he or
6she may request for submission, shall issue his or her decision
7in writing. The decision of the State Superintendent of
8Education is final.
9(Source: P.A. 95-844, eff. 8-15-08; 95-938, eff. 8-29-08.)
10 (105 ILCS 5/Art. 1D rep.)
11 Section 10. The School Code is amended by repealing Article
121D.
13 Section 99. Effective date. This Act takes effect upon
14becoming law.