98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4492
 
Introduced , by Rep. Norine Hammond
 
SYNOPSIS AS INTRODUCED:



105 ILCS 5/11E-135

 Amends the Conversion and Formation of School Districts Article of the School Code. Requires the General Assembly to appropriate a sufficient amount each fiscal year to fully fund the payments required to be made under a Section concerning incentives.
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 Section 
511E-135 as follows:

6 (105 ILCS 5/11E-135)
7 Sec. 11E-135. Incentives. For districts reorganizing under 
8this Article and for a district or districts that annex all of 
9the territory of one or more entire other school districts in 
10accordance with Article 7 of this Code, the following payments 
11shall be made from appropriations made for these purposes and 
12the General Assembly must appropriate a sufficient amount each 
13fiscal year to fully fund these payments:
14 (a)(1) For a combined school district, as defined in 
15Section 11E-20 of this Code, or for a unit district, as defined 
16in Section 11E-25 of this Code, for its first year of 
17existence, the general State aid and supplemental general State 
18aid calculated under Section 18-8.05 of this Code shall be 
19computed for the new district and for the previously existing 
20districts for which property is totally included within the new 
21district. If the computation on the basis of the previously 
22existing districts is greater, a supplementary payment equal to 
23the difference shall be made for the first 4 years of existence 
 
 
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1of the new district.
2 (2) For a school district that annexes all of the territory 
3of one or more entire other school districts as defined in 
4Article 7 of this Code, for the first year during which the 
5change of boundaries attributable to the annexation becomes 
6effective for all purposes, as determined under Section 7-9 of 
7this Code, the general State aid and supplemental general State 
8aid calculated under Section 18-8.05 of this Code shall be 
9computed for the annexing district as constituted after the 
10annexation and for the annexing and each annexed district as 
11constituted prior to the annexation; and if the computation on 
12the basis of the annexing and annexed districts as constituted 
13prior to the annexation is greater, then a supplementary 
14payment equal to the difference shall be made for the first 4 
15years of existence of the annexing school district as 
16constituted upon the annexation.
17 (3) For 2 or more school districts that annex all of the 
18territory of one or more entire other school districts, as 
19defined in Article 7 of this Code, for the first year during 
20which the change of boundaries attributable to the annexation 
21becomes effective for all purposes, as determined under Section 
227-9 of this Code, the general State aid and supplemental 
23general State aid calculated under Section 18-8.05 of this Code 
24shall be computed for each annexing district as constituted 
25after the annexation and for each annexing and annexed district 
26as constituted prior to the annexation; and if the aggregate of 
 
 
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1the general State aid and supplemental general State aid as so 
2computed for the annexing districts as constituted after the 
3annexation is less than the aggregate of the general State aid 
4and supplemental general State aid as so computed for the 
5annexing and annexed districts, as constituted prior to the 
6annexation, then a supplementary payment equal to the 
7difference shall be made and allocated between or among the 
8annexing districts, as constituted upon the annexation, for the 
9first 4 years of their existence. The total difference payment 
10shall be allocated between or among the annexing districts in 
11the same ratio as the pupil enrollment from that portion of the 
12annexed district or districts that is annexed to each annexing 
13district bears to the total pupil enrollment from the entire 
14annexed district or districts, as such pupil enrollment is 
15determined for the school year last ending prior to the date 
16when the change of boundaries attributable to the annexation 
17becomes effective for all purposes. The amount of the total 
18difference payment and the amount thereof to be allocated to 
19the annexing districts shall be computed by the State Board of 
20Education on the basis of pupil enrollment and other data that 
21shall be certified to the State Board of Education, on forms 
22that it shall provide for that purpose, by the regional 
23superintendent of schools for each educational service region 
24in which the annexing and annexed districts are located.
25 (4) For a school district conversion, as defined in Section 
2611E-15 of this Code, or a multi-unit conversion, as defined in 
 
 
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1subsection (b) of Section 11E-30 of this Code, if in their 
2first year of existence the newly created elementary districts 
3and the newly created high school district, from a school 
4district conversion, or the newly created elementary district 
5or districts and newly created combined high school - unit 
6district, from a multi-unit conversion, qualify for less 
7general State aid under Section 18-8.05 of this Code than would 
8have been payable under Section 18-8.05 for that same year to 
9the previously existing districts, then a supplementary 
10payment equal to that difference shall be made for the first 4 
11years of existence of the newly created districts. The 
12aggregate amount of each supplementary payment shall be 
13allocated among the newly created districts in the proportion 
14that the deemed pupil enrollment in each district during its 
15first year of existence bears to the actual aggregate pupil 
16enrollment in all of the districts during their first year of 
17existence. For purposes of each allocation:
18  (A) the deemed pupil enrollment of the newly created 
19 high school district from a school district conversion 
20 shall be an amount equal to its actual pupil enrollment for 
21 its first year of existence multiplied by 1.25;
22  (B) the deemed pupil enrollment of each newly created 
23 elementary district from a school district conversion 
24 shall be an amount equal to its actual pupil enrollment for 
25 its first year of existence reduced by an amount equal to 
26 the product obtained when the amount by which the newly 
 
 
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1 created high school district's deemed pupil enrollment 
2 exceeds its actual pupil enrollment for its first year of 
3 existence is multiplied by a fraction, the numerator of 
4 which is the actual pupil enrollment of the newly created 
5 elementary district for its first year of existence and the 
6 denominator of which is the actual aggregate pupil 
7 enrollment of all of the newly created elementary districts 
8 for their first year of existence;
9  (C) the deemed high school pupil enrollment of the 
10 newly created combined high school - unit district from a 
11 multi-unit conversion shall be an amount equal to its 
12 actual grades 9 through 12 pupil enrollment for its first 
13 year of existence multiplied by 1.25; and
14  (D) the deemed elementary pupil enrollment of each 
15 newly created district from a multi-unit conversion shall 
16 be an amount equal to each district's actual grade K 
17 through 8 pupil enrollment for its first year of existence, 
18 reduced by an amount equal to the product obtained when the 
19 amount by which the newly created combined high school - 
20 unit district's deemed high school pupil enrollment 
21 exceeds its actual grade 9 through 12 pupil enrollment for 
22 its first year of existence is multiplied by a fraction, 
23 the numerator of which is the actual grade K through 8 
24 pupil enrollment of each newly created district for its 
25 first year of existence and the denominator of which is the 
26 actual aggregate grade K through 8 pupil enrollment of all 
 
 
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1 such newly created districts for their first year of 
2 existence.
3 
The aggregate amount of each supplementary payment under 
4this subdivision (4) and the amount thereof to be allocated to 
5the newly created districts shall be computed by the State 
6Board of Education on the basis of pupil enrollment and other 
7data, which shall be certified to the State Board of Education, 
8on forms that it shall provide for that purpose, by the 
9regional superintendent of schools for each educational 
10service region in which the newly created districts are 
11located.

12 (5) For a partial elementary unit district, as defined in 
13subsection (a) or (c) of Section 11E-30 of this Code, if, in 
14the first year of existence, the newly created partial 
15elementary unit district qualifies for less general State aid 
16and supplemental general State aid under Section 18-8.05 of 
17this Code than would have been payable under that Section for 
18that same year to the previously existing districts that formed 
19the partial elementary unit district, then a supplementary 
20payment equal to that difference shall be made to the partial 
21elementary unit district for the first 4 years of existence of 
22that newly created district.
23 (6) For an elementary opt-in, as described in subsection 
24(d) of Section 11E-30 of this Code, the general State aid 
25difference shall be computed in accordance with paragraph (5) 
26of this subsection (a) as if the elementary opt-in was included 
 
 
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1in an optional elementary unit district at the optional 
2elementary unit district's original effective date. If the 
3calculation in this paragraph (6) is less than that calculated 
4in paragraph (5) of this subsection (a) at the optional 
5elementary unit district's original effective date, then no 
6adjustments may be made. If the calculation in this paragraph 
7(6) is more than that calculated in paragraph (5) of this 
8subsection (a) at the optional elementary unit district's 
9original effective date, then the excess must be paid as 
10follows:
11  (A) If the effective date for the elementary opt-in is 
12 one year after the effective date for the optional 
13 elementary unit district, 100% of the calculated excess 
14 shall be paid to the optional elementary unit district in 
15 each of the first 4 years after the effective date of the 
16 elementary opt-in.
17  (B) If the effective date for the elementary opt-in is 
18 2 years after the effective date for the optional 
19 elementary unit district, 75% of the calculated excess 
20 shall be paid to the optional elementary unit district in 
21 each of the first 4 years after the effective date of the 
22 elementary opt-in.
23  (C) If the effective date for the elementary opt-in is 
24 3 years after the effective date for the optional 
25 elementary unit district, 50% of the calculated excess 
26 shall be paid to the optional elementary unit district in 
 
 
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1 each of the first 4 years after the effective date of the 
2 elementary opt-in.
3  (D) If the effective date for the elementary opt-in is 
4 4 years after the effective date for the optional 
5 elementary unit district, 25% of the calculated excess 
6 shall be paid to the optional elementary unit district in 
7 each of the first 4 years after the effective date of the 
8 elementary opt-in.
9  (E) If the effective date for the elementary opt-in is 
10 5 years after the effective date for the optional 
11 elementary unit district, the optional elementary unit 
12 district is not eligible for any additional incentives due 
13 to the elementary opt-in.
14 (6.5) For a school district that annexes territory detached 
15from another school district whereby the enrollment of the 
16annexing district increases by 90% or more as a result of the 
17annexation, for the first year during which the change of 
18boundaries attributable to the annexation becomes effective 
19for all purposes as determined under Section 7-9 of this Code, 
20the general State aid and supplemental general State aid 
21calculated under this Section shall be computed for the 
22district gaining territory and the district losing territory as 
23constituted after the annexation and for the same districts as 
24constituted prior to the annexation; and if the aggregate of 
25the general State aid and supplemental general State aid as so 
26computed for the district gaining territory and the district 
 
 
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1losing territory as constituted after the annexation is less 
2than the aggregate of the general State aid and supplemental 
3general State aid as so computed for the district gaining 
4territory and the district losing territory as constituted 
5prior to the annexation, then a supplementary payment shall be 
6made to the annexing district for the first 4 years of 
7existence after the annexation, equal to the difference 
8multiplied by the ratio of student enrollment in the territory 
9detached to the total student enrollment in the district losing 
10territory for the year prior to the effective date of the 
11annexation. The amount of the total difference and the 
12proportion paid to the annexing district shall be computed by 
13the State Board of Education on the basis of pupil enrollment 
14and other data that must be submitted to the State Board of 
15Education in accordance with Section 7-14A of this Code. The 
16changes to this Section made by Public Act 95-707
are intended 
17to be retroactive and applicable to any annexation taking 
18effect on or after July 1, 2004. For annexations that are 
19eligible for payments under this paragraph (6.5) and that are 
20effective on or after July 1, 2004, but before January 11, 2008 
21(the effective date of Public Act 95-707), the first required 
22yearly payment under this paragraph (6.5) shall be paid in the 
23fiscal year of January 11, 2008 (the effective date of Public 
24Act 95-707). Subsequent required yearly payments shall be paid 
25in subsequent fiscal years until the payment obligation under 
26this paragraph (6.5) is complete.
 
 
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1 (7) Claims for financial assistance under this subsection 
2(a) may not be recomputed except as expressly provided under 
3Section 18-8.05 of this Code.
4 (8) Any supplementary payment made under this subsection 
5(a) must be treated as separate from all other payments made 
6pursuant to Section 18-8.05 of this Code.
7 (b)(1) After the formation of a combined school district, 
8as defined in Section 11E-20 of this Code, or a unit district, 
9as defined in Section 11E-25 of this Code, a computation shall 
10be made to determine the difference between the salaries 
11effective in each of the previously existing districts on June 
1230, prior to the creation of the new district. For the first 4 
13years after the formation of the new district, a supplementary 
14State aid reimbursement shall be paid to the new district equal 
15to the difference between the sum of the salaries earned by 
16each of the certificated members of the new district, while 
17employed in one of the previously existing districts during the 
18year immediately preceding the formation of the new district, 
19and the sum of the salaries those certificated members would 
20have been paid during the year immediately prior to the 
21formation of the new district if placed on the salary schedule 
22of the previously existing district with the highest salary 
23schedule.
24 (2) After the territory of one or more school districts is 
25annexed by one or more other school districts as defined in 
26Article 7 of this Code, a computation shall be made to 
 
 
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1determine the difference between the salaries effective in each 
2annexed district and in the annexing district or districts as 
3they were each constituted on June 30 preceding the date when 
4the change of boundaries attributable to the annexation became 
5effective for all purposes, as determined under Section 7-9 of 
6this Code. For the first 4 years after the annexation, a 
7supplementary State aid reimbursement shall be paid to each 
8annexing district as constituted after the annexation equal to 
9the difference between the sum of the salaries earned by each 
10of the certificated members of the annexing district as 
11constituted after the annexation, while employed in an annexed 
12or annexing district during the year immediately preceding the 
13annexation, and the sum of the salaries those certificated 
14members would have been paid during the immediately preceding 
15year if placed on the salary schedule of whichever of the 
16annexing or annexed districts had the highest salary schedule 
17during the immediately preceding year.
18 (3) For each new high school district formed under a school 
19district conversion, as defined in Section 11E-15 of this Code, 
20the State shall make a supplementary payment for 4 years equal 
21to the difference between the sum of the salaries earned by 
22each certified member of the new high school district, while 
23employed in one of the previously existing districts, and the 
24sum of the salaries those certified members would have been 
25paid if placed on the salary schedule of the previously 
26existing district with the highest salary schedule.
 
 
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1 (4) For each newly created partial elementary unit 
2district, the State shall make a supplementary payment for 4 
3years equal to the difference between the sum of the salaries 
4earned by each certified member of the newly created partial 
5elementary unit district, while employed in one of the 
6previously existing districts that formed the partial 
7elementary unit district, and the sum of the salaries those 
8certified members would have been paid if placed on the salary 
9schedule of the previously existing district with the highest 
10salary schedule. The salary schedules used in the calculation 
11shall be those in effect in the previously existing districts 
12for the school year prior to the creation of the new partial 
13elementary unit district.
14 (5) For an elementary district opt-in, as described in 
15subsection (d) of Section 11E-30 of this Code, the salary 
16difference incentive shall be computed in accordance with 
17paragraph (4) of this subsection (b) as if the opted-in 
18elementary district was included in the optional elementary 
19unit district at the optional elementary unit district's 
20original effective date. If the calculation in this paragraph 
21(5) is less than that calculated in paragraph (4) of this 
22subsection (b) at the optional elementary unit district's 
23original effective date, then no adjustments may be made. If 
24the calculation in this paragraph (5) is more than that 
25calculated in paragraph (4) of this subsection (b) at the 
26optional elementary unit district's original effective date, 
 
 
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1then the excess must be paid as follows:
2  (A) If the effective date for the elementary opt-in is 
3 one year after the effective date for the optional 
4 elementary unit district, 100% of the calculated excess 
5 shall be paid to the optional elementary unit district in 
6 each of the first 4 years after the effective date of the 
7 elementary opt-in.
8  (B) If the effective date for the elementary opt-in is 
9 2 years after the effective date for the optional 
10 elementary unit district, 75% of the calculated excess 
11 shall be paid to the optional elementary unit district in 
12 each of the first 4 years after the effective date of the 
13 elementary opt-in.
14  (C) If the effective date for the elementary opt-in is 
15 3 years after the effective date for the optional 
16 elementary unit district, 50% of the calculated excess 
17 shall be paid to the optional elementary unit district in 
18 each of the first 4 years after the effective date of the 
19 elementary opt-in.
20  (D) If the effective date for the elementary opt-in is 
21 4 years after the effective date for the partial elementary 
22 unit district, 25% of the calculated excess shall be paid 
23 to the optional elementary unit district in each of the 
24 first 4 years after the effective date of the elementary 
25 opt-in.
26  (E) If the effective date for the elementary opt-in is 
 
 
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1 5 years after the effective date for the optional 
2 elementary unit district, the optional elementary unit 
3 district is not eligible for any additional incentives due 
4 to the elementary opt-in.
5 (5.5) After the formation of a cooperative high school by 2 
6or more school districts under Section 10-22.22c of this Code, 
7a computation shall be made to determine the difference between 
8the salaries effective in each of the previously existing high 
9schools on June 30 prior to the formation of the cooperative 
10high school. For the first 4 years after the formation of the 
11cooperative high school, a supplementary State aid 
12reimbursement shall be paid to the cooperative high school 
13equal to the difference between the sum of the salaries earned 
14by each of the certificated members of the cooperative high 
15school while employed in one of the previously existing high 
16schools during the year immediately preceding the formation of 
17the cooperative high school and the sum of the salaries those 
18certificated members would have been paid during the year 
19immediately prior to the formation of the cooperative high 
20school if placed on the salary schedule of the previously 
21existing high school with the highest salary schedule.
22 (5.10) After the annexation of territory detached from

23another school district whereby the enrollment of the annexing

24district increases by 90% or more as a result of the

25annexation, a computation shall be made to determine the

26difference between the salaries effective in the district

 
 
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1gaining territory and the district losing territory as they

2each were constituted on June 30 preceding the date when the

3change of boundaries attributable to the annexation became

4effective for all purposes as determined under Section 7-9 of

5this Code. For the first 4 years after the annexation, a

6supplementary State aid reimbursement shall be paid to the

7annexing district equal to the difference between the sum of

8the salaries earned by each of the certificated members of the

9annexing district as constituted after the annexation while

10employed in the district gaining territory or the district

11losing territory during the year immediately preceding the

12annexation and the sum of the salaries those certificated

13members would have been paid during such immediately preceding

14year if placed on the salary schedule of whichever of the

15district gaining territory or district losing territory had the

16highest salary schedule during the immediately preceding year.

17To be eligible for supplementary State aid reimbursement under

18this Section, the intergovernmental agreement to be submitted

19pursuant to Section 7-14A of this Code must show that staff

20members were transferred from the control of the district

21losing territory to the control of the district gaining

22territory in the annexation. The changes to this Section made

23by Public Act 95-707
are
intended to be retroactive and 
24applicable to any annexation
taking effect on or after July 1, 
252004. For annexations that are eligible for payments under this 
26paragraph (5.10) and that are effective on or after July 1, 
 
 
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12004, but before January 11, 2008 (the effective date of Public 
2Act 95-707), the first required yearly payment under this 
3paragraph (5.10) shall be paid in the fiscal year of January 
411, 2008 (the effective date of Public Act 95-707). Subsequent 
5required yearly payments shall be paid in subsequent fiscal 
6years until the payment obligation under this paragraph (5.10) 
7is complete.

8 (5.15)
After the deactivation of a school facility in 
9accordance with Section 10-22.22b of this Code, a computation 
10shall be made to determine the difference between the salaries 
11effective in the sending school district and each receiving 
12school district on June 30 prior to the deactivation of the 
13school facility. For the lesser of the first 4 years after the 
14deactivation of the school facility or the length of the 
15deactivation agreement, including any renewals of the original 
16deactivation agreement, a supplementary State aid 
17reimbursement shall be paid to each receiving district equal to 
18the difference between the sum of the salaries earned by each 
19of the certificated members transferred to that receiving 
20district as a result of the deactivation while employed in the 
21sending district during the year immediately preceding the 
22deactivation and the sum of the salaries those certificated 
23members would have been paid during the year immediately 
24preceding the deactivation if placed on the salary schedule of 
25the sending or receiving district with the highest salary 
26schedule. 
 
 
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1 (6) The supplementary State aid reimbursement under this 
2subsection (b) shall be treated as separate from all other 
3payments made pursuant to Section 18-8.05 of this Code. In the 
4case of the formation of a new district or cooperative high 
5school or a deactivation, reimbursement shall begin during the 
6first year of operation of the new district or cooperative high 
7school or the first year of the deactivation, and in the case 
8of an annexation of the territory of one or more school 
9districts by one or more other school districts or the 
10annexation of territory detached from a school district whereby

11the enrollment of the annexing district increases by 90% or

12more as a result of the annexation, reimbursement shall begin 
13during the first year when the change in boundaries 
14attributable to the annexation becomes effective for all 
15purposes as determined pursuant to Section 7-9 of this Code, 
16except that for an annexation of territory detached from a 
17school district that is effective on or after July 1, 2004, but 
18before January 11, 2008 (the effective date of Public Act 
1995-707), whereby the enrollment of the annexing district 
20increases by 90% or more as a result of the annexation, 
21reimbursement shall begin during the fiscal year of January 11, 
222008 (the effective date of Public Act 95-707). Each year that 
23the new, annexing, or receiving district or cooperative high 
24school, as the case may be, is entitled to receive 
25reimbursement, the number of eligible certified members who are 
26employed on October 1 in the district or cooperative high 
 
 
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1school shall be certified to the State Board of Education on 
2prescribed forms by October 15 and payment shall be made on or 
3before November 15 of that year.
4 (c)(1) For the first year after the formation of a combined 
5school district, as defined in Section 11E-20 of this Code or a 
6unit district, as defined in Section 11E-25 of this Code, a 
7computation shall be made totaling each previously existing 
8district's audited fund balances in the educational fund, 
9working cash fund, operations and maintenance fund, and 
10transportation fund for the year ending June 30 prior to the 
11referendum for the creation of the new district. The new 
12district shall be paid supplementary State aid equal to the sum 
13of the differences between the deficit of the previously 
14existing district with the smallest deficit and the deficits of 
15each of the other previously existing districts.
16 (2) For the first year after the annexation of all of the 
17territory of one or more entire school districts by another 
18school district, as defined in Article 7 of this Code, 
19computations shall be made, for the year ending June 30 prior 
20to the date that the change of boundaries attributable to the 
21annexation is allowed by the affirmative decision issued by the 
22regional board of school trustees under Section 7-6 of this 
23Code, notwithstanding any effort to seek administrative review 
24of the decision, totaling the annexing district's and totaling 
25each annexed district's audited fund balances in their 
26respective educational, working cash, operations and 
 
 
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1maintenance, and transportation funds. The annexing district 
2as constituted after the annexation shall be paid supplementary 
3State aid equal to the sum of the differences between the 
4deficit of whichever of the annexing or annexed districts as 
5constituted prior to the annexation had the smallest deficit 
6and the deficits of each of the other districts as constituted 
7prior to the annexation.
8 (3) For the first year after the annexation of all of the 
9territory of one or more entire school districts by 2 or more 
10other school districts, as defined by Article 7 of this Code, 
11computations shall be made, for the year ending June 30 prior 
12to the date that the change of boundaries attributable to the 
13annexation is allowed by the affirmative decision of the 
14regional board of school trustees under Section 7-6 of this 
15Code, notwithstanding any action for administrative review of 
16the decision, totaling each annexing and annexed district's 
17audited fund balances in their respective educational, working 
18cash, operations and maintenance, and transportation funds. 
19The annexing districts as constituted after the annexation 
20shall be paid supplementary State aid, allocated as provided in 
21this paragraph (3), in an aggregate amount equal to the sum of 
22the differences between the deficit of whichever of the 
23annexing or annexed districts as constituted prior to the 
24annexation had the smallest deficit and the deficits of each of 
25the other districts as constituted prior to the annexation. The 
26aggregate amount of the supplementary State aid payable under 
 
 
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1this paragraph (3) shall be allocated between or among the 
2annexing districts as follows:
3  (A) the regional superintendent of schools for each 
4 educational service region in which an annexed district is 
5 located prior to the annexation shall certify to the State 
6 Board of Education, on forms that it shall provide for that 
7 purpose, the value of all taxable property in each annexed 
8 district, as last equalized or assessed by the Department 
9 of Revenue prior to the annexation, and the equalized 
10 assessed value of each part of the annexed district that 
11 was annexed to or included as a part of an annexing 
12 district;
13  (B) using equalized assessed values as certified by the 
14 regional superintendent of schools under clause (A) of this 
15 paragraph (3), the combined audited fund balance deficit of 
16 each annexed district as determined under this Section 
17 shall be apportioned between or among the annexing 
18 districts in the same ratio as the equalized assessed value 
19 of that part of the annexed district that was annexed to or 
20 included as a part of an annexing district bears to the 
21 total equalized assessed value of the annexed district; and
22  (C) the aggregate supplementary State aid payment 
23 under this paragraph (3) shall be allocated between or 
24 among, and shall be paid to, the annexing districts in the 
25 same ratio as the sum of the combined audited fund balance 
26 deficit of each annexing district as constituted prior to 
 
 
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1 the annexation, plus all combined audited fund balance 
2 deficit amounts apportioned to that annexing district 
3 under clause (B) of this subsection, bears to the aggregate 
4 of the combined audited fund balance deficits of all of the 
5 annexing and annexed districts as constituted prior to the 
6 annexation.
7 (4) For the new elementary districts and new high school 
8district formed through a school district conversion, as 
9defined in Section 11E-15 of this Code or the new elementary 
10district or districts and new combined high school - unit 
11district formed through a multi-unit conversion, as defined in 
12subsection (b) of Section 11E-30 of this Code, a computation 
13shall be made totaling each previously existing district's 
14audited fund balances in the educational fund, working cash 
15fund, operations and maintenance fund, and transportation fund 
16for the year ending June 30 prior to the referendum 
17establishing the new districts. In the first year of the new 
18districts, the State shall make a one-time supplementary 
19payment equal to the sum of the differences between the deficit 
20of the previously existing district with the smallest deficit 
21and the deficits of each of the other previously existing 
22districts. A district with a combined balance among the 4 funds 
23that is positive shall be considered to have a deficit of zero. 
24The supplementary payment shall be allocated among the newly 
25formed high school and elementary districts in the manner 
26provided by the petition for the formation of the districts, in 
 
 
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1the form in which the petition is approved by the regional 
2superintendent of schools or State Superintendent of Education 
3under Section 11E-50 of this Code.
4 (5) For each newly created partial elementary unit 
5district, as defined in subsection (a) or (c) of Section 11E-30 
6of this Code, a computation shall be made totaling the audited 
7fund balances of each previously existing district that formed 
8the new partial elementary unit district in the educational 
9fund, working cash fund, operations and maintenance fund, and 
10transportation fund for the year ending June 30 prior to the 
11referendum for the formation of the partial elementary unit 
12district. In the first year of the new partial elementary unit 
13district, the State shall make a one-time supplementary payment 
14to the new district equal to the sum of the differences between 
15the deficit of the previously existing district with the 
16smallest deficit and the deficits of each of the other 
17previously existing districts. A district with a combined 
18balance among the 4 funds that is positive shall be considered 
19to have a deficit of zero.
20 (6) For an elementary opt-in as defined in subsection (d) 
21of Section 11E-30 of this Code, the deficit fund balance 
22incentive shall be computed in accordance with paragraph (5) of 
23this subsection (c) as if the opted-in elementary was included 
24in the optional elementary unit district at the optional 
25elementary unit district's original effective date. If the 
26calculation in this paragraph (6) is less than that calculated 
 
 
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1in paragraph (5) of this subsection (c) at the optional 
2elementary unit district's original effective date, then no 
3adjustments may be made. If the calculation in this paragraph 
4(6) is more than that calculated in paragraph (5) of this 
5subsection (c) at the optional elementary unit district's 
6original effective date, then the excess must be paid as 
7follows:
8  (A) If the effective date for the elementary opt-in is 
9 one year after the effective date for the optional 
10 elementary unit district, 100% of the calculated excess 
11 shall be paid to the optional elementary unit district in 
12 the first year after the effective date of the elementary 
13 opt-in.
14  (B) If the effective date for the elementary opt-in is 
15 2 years after the effective date for the optional 
16 elementary unit district, 75% of the calculated excess 
17 shall be paid to the optional elementary unit district in 
18 the first year after the effective date of the elementary 
19 opt-in.
20  (C) If the effective date for the elementary opt-in is 
21 3 years after the effective date for the optional 
22 elementary unit district, 50% of the calculated excess 
23 shall be paid to the optional elementary unit district in 
24 the first year after the effective date of the elementary 
25 opt-in.
26  (D) If the effective date for the elementary opt-in is 
 
 
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1 4 years after the effective date for the optional 
2 elementary unit district, 25% of the calculated excess 
3 shall be paid to the optional elementary unit district in 
4 the first year after the effective date of the elementary 
5 opt-in.
6  (E) If the effective date for the elementary opt-in is 
7 5 years after the effective date for the optional 
8 elementary unit district, the optional elementary unit 
9 district is not eligible for any additional incentives due 
10 to the elementary opt-in.
11 (6.5) For the first year after the annexation of territory

12detached from another school district whereby the enrollment of

13the annexing district increases by 90% or more as a result of

14the annexation, a computation shall be made totaling the

15audited fund balances of the district gaining territory and the

16audited fund balances of the district losing territory in the

17educational fund, working cash fund, operations and

18maintenance fund, and transportation fund for the year ending

19June 30 prior to the date that the change of boundaries

20attributable to the annexation is allowed by the affirmative

21decision of the regional board of school trustees under Section

227-6 of this Code, notwithstanding any action for administrative

23review of the decision. The annexing district as constituted

24after the annexation shall be paid supplementary State aid

25equal to the difference between the deficit of whichever

26district included in this calculation as constituted prior to

 
 
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1the annexation had the smallest deficit and the deficit of each

2other district included in this calculation as constituted

3prior to the annexation, multiplied by the ratio of equalized

4assessed value of the territory detached to the total equalized

5assessed value of the district losing territory. The regional

6superintendent of schools for the educational service region in

7which a district losing territory is located prior to the

8annexation shall certify to the State Board of Education the

9value of all taxable property in the district losing territory

10and the value of all taxable property in the territory being

11detached, as last equalized or assessed by the Department of

12Revenue prior to the annexation. To be eligible for

13supplementary State aid reimbursement under this Section, the

14intergovernmental agreement to be submitted pursuant to

15Section 7-14A of this Code must show that fund balances were

16transferred from the district losing territory to the district

17gaining territory in the annexation. The changes to this

18Section made by Public Act 95-707
are intended to be 
19retroactive and applicable to any
annexation taking effect on 
20or after July 1, 2004. For annexations that are eligible for 
21payments under this paragraph (6.5) and that are effective on 
22or after July 1, 2004, but before January 11, 2008 (the 
23effective date of Public Act 95-707), the required payment 
24under this paragraph (6.5) shall be paid in the fiscal year of 
25January 11, 2008 (the effective date of Public Act 95-707).

26 (7) For purposes of any calculation required under 
 
 
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1paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this 
2subsection (c), a district with a combined fund balance that is 
3positive shall be considered to have a deficit of zero. For 
4purposes of determining each district's audited fund balances 
5in its educational fund, working cash fund, operations and 
6maintenance fund, and transportation fund for the specified 
7year ending June 30, as provided in paragraphs (1), (2), (3), 
8(4), (5), (6), and (6.5) of this subsection (c), the balance of 
9each fund shall be deemed decreased by an amount equal to the 
10amount of the annual property tax theretofore levied in the 
11fund by the district for collection and payment to the district 
12during the calendar year in which the June 30 fell, but only to 
13the extent that the tax so levied in the fund actually was 
14received by the district on or before or comprised a part of 
15the fund on such June 30. For purposes of determining each 
16district's audited fund balances, a calculation shall be made 
17for each fund to determine the average for the 3 years prior to 
18the specified year ending June 30, as provided in paragraphs 
19(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c), 
20of the district's expenditures in the categories "purchased 
21services", "supplies and materials", and "capital outlay", as 
22those categories are defined in rules of the State Board of 
23Education. If this 3-year average is less than the district's 
24expenditures in these categories for the specified year ending 
25June 30, as provided in paragraphs (1), (2), (3), (4), (5), 
26(6), and (6.5) of this subsection (c), then the 3-year average 
 
 
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1shall be used in calculating the amounts payable under this 
2Section in place of the amounts shown in these categories for 
3the specified year ending June 30, as provided in paragraphs 
4(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c). 
5Any deficit because of State aid not yet received may not be 
6considered in determining the June 30 deficits. The same basis 
7of accounting shall be used by all previously existing 
8districts and by all annexing or annexed districts, as 
9constituted prior to the annexation, in making any computation 
10required under paragraphs (1), (2), (3), (4), (5), (6), and 
11(6.5) of this subsection (c).
12 (8) The supplementary State aid payments under this 
13subsection (c) shall be treated as separate from all other 
14payments made pursuant to Section 18-8.05 of this Code.
15 (d)(1) Following the formation of a combined school 
16district, as defined in Section 11E-20 of this Code, a new unit 
17district, as defined in Section 11E-25 of this Code, a new 
18elementary district or districts and a new high school district 
19formed through a school district conversion, as defined in 
20Section 11E-15 of this Code, a new partial elementary unit 
21district, as defined in Section 11E-30 of this Code, or a new 
22elementary district or districts formed through a multi-unit 
23conversion, as defined in subsection (b) of Section 11E-30 of 
24this Code, or the annexation of all of the territory of one or 
25more entire school districts by one or more other school 
26districts, as defined in Article 7 of this Code, a 
 
 
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1supplementary State aid reimbursement shall be paid for the 
2number of school years determined under the following table to 
3each new or annexing district equal to the sum of $4,000 for 
4each certified employee who is employed by the district on a 
5full-time basis for the regular term of the school year:




















































































6Reorganized District's RankReorganized District's Rank
7by type of district (unit,in Average Daily Attendance
8high school, elementary)By Quintile
9in Equalized Assessed Value
10Per Pupil by Quintile
113rd, 4th,
121st2ndor 5th
13QuintileQuintileQuintile
14 1st Quintile1 year1 year1 year
15 2nd Quintile1 year2 years2 years
16 3rd Quintile2 years3 years3 years
17 4th Quintile2 years3 years3 years
18 5th Quintile2 years3 years3 years


19The State Board of Education shall make a one-time calculation 
20of a reorganized district's quintile ranks. The average daily 
21attendance used in this calculation shall be the best 3 months' 
22average daily attendance for the district's first year. The 
23equalized assessed value per pupil shall be the district's real 
24property equalized assessed value used in calculating the 
 
 
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1district's first-year general State aid claim, under Section 
218-8.05 of this Code, divided by the best 3 months' average 
3daily attendance.
4 No annexing or resulting school district shall be entitled 
5to supplementary State aid under this subsection (d) unless the 
6district acquires at least 30% of the average daily attendance 
7of the district from which the territory is being detached or 
8divided.
9 If a district results from multiple reorganizations that 
10would otherwise qualify the district for multiple payments 
11under this subsection (d) in any year, then the district shall 
12receive a single payment only for that year based solely on the 
13most recent reorganization.
14 (2) For an elementary opt-in, as defined in subsection (d) 
15of Section 11E-30 of this Code, the full-time certified staff 
16incentive shall be computed in accordance with paragraph (1) of 
17this subsection (d), equal to the sum of $4,000 for each 
18certified employee of the elementary district that opts-in who 
19is employed by the optional elementary unit district on a 
20full-time basis for the regular term of the school year. The 
21calculation from this paragraph (2) must be paid as follows:
22  (A) If the effective date for the elementary opt-in is 
23 one year after the effective date for the optional 
24 elementary unit district, 100% of the amount calculated in 
25 this paragraph (2) shall be paid to the optional elementary 
26 unit district for the number of years calculated in 
 
 
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1 paragraph (1) of this subsection (d) at the optional 
2 elementary unit district's original effective date, 
3 starting in the second year after the effective date of the 
4 elementary opt-in.
5  (B) If the effective date for the elementary opt-in is 
6 2 years after the effective date for the optional 
7 elementary unit district, 75% of the amount calculated in 
8 this paragraph (2) shall be paid to the optional elementary 
9 unit district for the number of years calculated in 
10 paragraph (1) of this subsection (d) at the optional 
11 elementary unit district's original effective date, 
12 starting in the second year after the effective date of the 
13 elementary opt-in.
14  (C) If the effective date for the elementary opt-in is 
15 3 years after the effective date for the optional 
16 elementary unit district, 50% of the amount calculated in 
17 this paragraph (2) shall be paid to the optional elementary 
18 unit district for the number of years calculated in 
19 paragraph (1) of this subsection (d) at the optional 
20 elementary unit district's original effective date, 
21 starting in the second year after the effective date of the 
22 elementary opt-in.
23  (D) If the effective date for the elementary opt-in is 
24 4 years after the effective date for the optional 
25 elementary unit district, 25% of the amount calculated in 
26 this paragraph (2) shall be paid to the optional elementary 
 
 
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1 unit district for the number of years calculated in 
2 paragraph (1) of this subsection (d) at the optional 
3 elementary unit district's original effective date, 
4 starting in the second year after the effective date of the 
5 elementary opt-in.
6  (E) If the effective date for the elementary opt-in is 
7 5 years after the effective date for the optional 
8 elementary unit district, the optional elementary unit 
9 district is not eligible for any additional incentives due 
10 to the elementary opt-in.
11 (2.5) Following the formation of a cooperative high school 
12by 2 or more school districts under Section 10-22.22c of this 
13Code, a supplementary State aid reimbursement shall be paid for 
143 school years to the cooperative high school equal to the sum 
15of $4,000 for each certified employee who is employed by the 
16cooperative high school on a full-time basis for the regular 
17term of any such school year. If a cooperative high school 
18results from multiple agreements that would otherwise qualify 
19the cooperative high school for multiple payments under this 
20Section in any year, the cooperative high school shall receive 
21a single payment for that year based solely on the most recent 
22agreement.
23 (2.10) Following the annexation of territory detached from

24another school district whereby the enrollment of the annexing

25district increases 90% or more as a result of the annexation, a

26supplementary State aid reimbursement shall be paid to the

 
 
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1annexing district equal to the sum of $4,000 for each certified

2employee who is employed by the annexing district on a

3full-time basis and shall be calculated in accordance with

4subsection (a) of this Section. To be eligible for

5supplementary State aid reimbursement under this Section, the

6intergovernmental agreement to be submitted pursuant to

7Section 7-14A of this Code must show that certified staff

8members were transferred from the control of the district

9losing territory to the control of the district gaining

10territory in the annexation. The changes to this Section made

11by Public Act 95-707
are
intended to be retroactive and 
12applicable to any annexation
taking effect on or after July 1, 
132004. For annexations that are eligible for payments under this 
14paragraph (2.10) and that are effective on or after July 1, 
152004, but before January 11, 2008 (the effective date of Public 
16Act 95-707), the first required yearly payment under this 
17paragraph (2.10) shall be paid in the second fiscal year after 
18January 11, 2008 (the effective date of Public Act 95-707). Any 
19subsequent required yearly payments shall be paid in subsequent 
20fiscal years until the payment obligation under this paragraph 
21(2.10) is complete.

22 (2.15)
Following the deactivation of a school facility in 
23accordance with Section 10-22.22b of this Code, a supplementary 
24State aid reimbursement shall be paid for the lesser of 3 
25school years or the length of the deactivation agreement, 
26including any renewals of the original deactivation agreement, 
 
 
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1to each receiving school district equal to the sum of $4,000 
2for each certified employee who is employed by that receiving 
3district on a full-time basis for the regular term of any such 
4school year who was originally transferred to the control of 
5that receiving district as a result of the deactivation. 
6Receiving districts are eligible for payments under this 
7paragraph (2.15)
based on the certified employees transferred 
8to that receiving district as a result of the deactivation and 
9are not required to receive at least 30% of the deactivating 
10district's average daily attendance as required under 
11paragraph (1) of this subsection (d) to be eligible for 
12payments. 
13 (3) The supplementary State aid reimbursement payable 
14under this subsection (d) shall be separate from and in 
15addition to all other payments made to the district pursuant to 
16any other Section of this Article.
17 (4) During May of each school year for which a 
18supplementary State aid reimbursement is to be paid to a new, 
19annexing, or receiving school district or cooperative high 
20school pursuant to this subsection (d), the school board or 
21governing board shall certify to the State Board of Education, 
22on forms furnished to the school board or governing board by 
23the State Board of Education for purposes of this subsection 
24(d), the number of certified employees for which the district 
25or cooperative high school is entitled to reimbursement under 
26this Section, together with the names, certificate numbers, and 
 
 
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1positions held by the certified employees.
2 (5) Upon certification by the State Board of Education to 
3the State Comptroller of the amount of the supplementary State 
4aid reimbursement to which a school district or cooperative 
5high school is entitled under this subsection (d), the State 
6Comptroller shall draw his or her warrant upon the State 
7Treasurer for the payment thereof to the school district or 
8cooperative high school and shall promptly transmit the payment 
9to the school district or cooperative high school through the 
10appropriate school treasurer.


11(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08; 
1295-903, eff. 8-25-08; 96-328, eff. 8-11-09.)


13 Section 99. Effective date. This Act takes effect upon 
14becoming law.