Bill Text: IL HB4585 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the evidence-based funding provisions of the School Code. Provides that, beginning with the 2020-2021 school year, the State Board of Education shall, if a student enrolls in a nonpublic school after being enrolled in a resident school district, distribute to the nonpublic school all funds calculated under the evidence-based funding formula, on a per pupil basis, that otherwise would have been provided to the resident school district if the student were still enrolled in the resident school district; provides for proration if a student enrolls in a nonpublic school during the middle of a school year. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-02-05 - Referred to Rules Committee [HB4585 Detail]

Download: Illinois-2019-HB4585-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4585 Introduced , by Rep. Allen Skillicorn SYNOPSIS AS INTRODUCED:
105 ILCS 5/18-8.15
Amends the evidence-based funding provisions of the School Code. Provides that, beginning with the 2020-2021 school year, the State Board of Education shall, if a student enrolls in a nonpublic school after being enrolled in a resident school district, distribute to the nonpublic school all funds calculated under the evidence-based funding formula, on a per pupil basis, that otherwise would have been provided to the resident school district if the student were still enrolled in the resident school district; provides for proration if a student enrolls in a nonpublic school during the middle of a school year. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Section
18-8.15 as follows:
(105 ILCS 5/18-8.15)
Sec. 18-8.15. Evidence-Based Funding Evidence-based
funding for student success for the 2017-2018 and subsequent
school years.
(a) General provisions.
(1) The purpose of this Section is to ensure that, by
June 30, 2027 and beyond, this State has a kindergarten
through grade 12 public education system with the capacity
to ensure the educational development of all persons to the
limits of their capacities in accordance with Section 1 of
Article X of the Constitution of the State of Illinois. To
accomplish that objective, this Section creates a method of
funding public education that is evidence-based; is
sufficient to ensure every student receives a meaningful
opportunity to learn irrespective of race, ethnicity,
sexual orientation, gender, or community-income level; and
is sustainable and predictable. When fully funded under
this Section, every school shall have the resources, based

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on what the evidence indicates is needed, to:
(A) provide all students with a high quality
education that offers the academic, enrichment, social
and emotional support, technical, and career-focused
programs that will allow them to become competitive
workers, responsible parents, productive citizens of
this State, and active members of our national
democracy;
(B) ensure all students receive the education they
need to graduate from high school with the skills
required to pursue post-secondary education and
training for a rewarding career;
(C) reduce, with a goal of eliminating, the
achievement gap between at-risk and non-at-risk
students by raising the performance of at-risk
students and not by reducing standards; and
(D) ensure this State satisfies its obligation to
assume the primary responsibility to fund public
education and simultaneously relieve the
disproportionate burden placed on local property taxes
to fund schools.
(2) The Evidence-Based Funding evidence-based funding
formula under this Section shall be applied to all
Organizational Units in this State. The Evidence-Based
Funding evidence-based funding formula outlined in this
Act is based on the formula outlined in Senate Bill 1 of

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the 100th General Assembly, as passed by both legislative
chambers. As further defined and described in this Section,
there are 4 major components of the Evidence-Based Funding
evidence-based funding model:
(A) First, the model calculates a unique Adequacy
Target adequacy target for each Organizational Unit in
this State that considers the costs to implement
research-based activities, the unit's student
demographics, and regional wage differences
difference.
(B) Second, the model calculates each
Organizational Unit's Local Capacity local capacity,
or the amount each Organizational Unit is assumed to
contribute toward towards its Adequacy Target adequacy
target from local resources.
(C) Third, the model calculates how much funding
the State currently contributes to the Organizational
Unit, and adds that to the unit's Local Capacity local
capacity to determine the unit's overall current
adequacy of funding.
(D) Finally, the model's distribution method
allocates new State funding to those Organizational
Units that are least well-funded, considering both
Local Capacity local capacity and State funding, in
relation to their Adequacy Target adequacy target.
(3) An Organizational Unit receiving any funding under

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this Section may apply those funds to any fund so received
for which that Organizational Unit is authorized to make
expenditures by law.
(4) As used in this Section, the following terms shall
have the meanings ascribed in this paragraph (4):
"Adequacy Target" is defined in paragraph (1) of
subsection (b) of this Section.
"Adjusted EAV" is defined in paragraph (4) of
subsection (d) of this Section.
"Adjusted Local Capacity Target" is defined in
paragraph (3) of subsection (c) of this Section.
"Adjusted Operating Tax Rate" means a tax rate for all
Organizational Units, for which the State Superintendent
shall calculate and subtract for the Operating Tax Rate a
transportation rate based on total expenses for
transportation services under this Code, as reported on the
most recent Annual Financial Report in Pupil
Transportation Services, function 2550 in both the
Education and Transportation funds and functions 4110 and
4120 in the Transportation fund, less any corresponding
fiscal year State of Illinois scheduled payments excluding
net adjustments for prior years for regular, vocational, or
special education transportation reimbursement pursuant to
Section 29-5 or subsection (b) of Section 14-13.01 of this
Code divided by the Adjusted EAV. If an Organizational
Unit's corresponding fiscal year State of Illinois

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scheduled payments excluding net adjustments for prior
years for regular, vocational, or special education
transportation reimbursement pursuant to Section 29-5 or
subsection (b) of Section 14-13.01 of this Code exceed the
total transportation expenses, as defined in this
paragraph, no transportation rate shall be subtracted from
the Operating Tax Rate.
"Allocation Rate" is defined in paragraph (3) of
subsection (g) of this Section.
"Alternative School" means a public school that is
created and operated by a regional superintendent of
schools and approved by the State Board.
"Applicable Tax Rate" is defined in paragraph (1) of
subsection (d) of this Section.
"Assessment" means any of those benchmark, progress
monitoring, formative, diagnostic, and other assessments,
in addition to the State accountability assessment, that
assist teachers' needs in understanding the skills and
meeting the needs of the students they serve.
"Assistant principal" means a school administrator
duly endorsed to be employed as an assistant principal in
this State.
"At-risk student" means a student who is at risk of not
meeting the Illinois Learning Standards or not graduating
from elementary or high school and who demonstrates a need
for vocational support or social services beyond that

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provided by the regular school program. All students
included in an Organizational Unit's Low-Income Count, as
well as all English learner and disabled students attending
the Organizational Unit, shall be considered at-risk
students under this Section.
"Average Student Enrollment" or "ASE" for fiscal year
2018 means, for an Organizational Unit, the greater of the
average number of students (grades K through 12) reported
to the State Board as enrolled in the Organizational Unit
on October 1 in the immediately preceding school year, plus
the pre-kindergarten students who receive special
education services of 2 or more hours a day as reported to
the State Board on December 1 in the immediately preceding
school year, or the average number of students (grades K
through 12) reported to the State Board as enrolled in the
Organizational Unit on October 1, plus the
pre-kindergarten students who receive special education
services of 2 or more hours a day as reported to the State
Board on December 1, for each of the immediately preceding
3 school years. For fiscal year 2019 and each subsequent
fiscal year, "Average Student Enrollment" or "ASE" means,
for an Organizational Unit, the greater of the average
number of students (grades K through 12) reported to the
State Board as enrolled in the Organizational Unit on
October 1 and March 1 in the immediately preceding school
year, plus the pre-kindergarten students who receive

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

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0.5 each. If the State Board does not collect or has not
collected both an October 1 and March 1 enrollment count by
grade or a December 1 collection of special education
pre-kindergarten students as of August 31, 2017 (the
effective date of Public Act 100-465) this amendatory Act
of the 100th General Assembly, it shall establish such
collection for all future years. For any year in which
where a count by grade level was collected only once, that
count shall be used as the single count available for
computing a 3-year average ASE. Funding for programs
operated by a regional office of education or an
intermediate service center must be calculated using the
Evidence-Based Funding evidence-based funding formula
under this Section for the 2019-2020 school year and each
subsequent school year until separate adequacy formulas
are developed and adopted for each type of program. ASE for
a program operated by a regional office of education or an
intermediate service center must be determined by the March
1 enrollment for the program. For the 2019-2020 school
year, the ASE used in the calculation must be the
first-year ASE and, in that year only, the assignment of
students served by a regional office of education or
intermediate service center shall not result in a reduction
of the March enrollment for any school district. For the
2020-2021 school year, the ASE must be the greater of the
current-year ASE or the 2-year average ASE. Beginning with

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the 2021-2022 school year, the ASE must be the greater of
the current-year ASE or the 3-year average ASE. School
districts shall submit the data for the ASE calculation to
the State Board within 45 days of the dates required in
this Section for submission of enrollment data in order for
it to be included in the ASE calculation. For fiscal year
2018 only, the ASE calculation shall include only
enrollment taken on October 1.
"Base Funding Guarantee" is defined in paragraph (10)
of subsection (g) of this Section.
"Base Funding Minimum" is defined in subsection (e) of
this Section.
"Base Tax Year" means the property tax levy year used
to calculate the Budget Year allocation of primary State
aid.
"Base Tax Year's Extension" means the product of the
equalized assessed valuation utilized by the county clerk
in the Base Tax Year multiplied by the limiting rate as
calculated by the county clerk and defined in PTELL.
"Bilingual Education Allocation" means the amount of
an Organizational Unit's final Adequacy Target
attributable to bilingual education divided by the
Organizational Unit's final Adequacy Target, the product
of which shall be multiplied by the amount of new funding
received pursuant to this Section. An Organizational
Unit's final Adequacy Target attributable to bilingual

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education shall include all additional investments in
English learner students' adequacy elements.
"Budget Year" means the school year for which primary
State aid is calculated and awarded under this Section.
"Central office" means individual administrators and
support service personnel charged with managing the
instructional programs, business and operations, and
security of the Organizational Unit.
"Comparable Wage Index" or "CWI" means a regional cost
differentiation metric that measures systemic, regional
variations in the salaries of college graduates who are not
educators. The CWI utilized for this Section shall, for the
first 3 years of Evidence-Based Funding implementation, be
the CWI initially developed by the National Center for
Education Statistics, as most recently updated by Texas A &
M University. In the fourth and subsequent years of
Evidence-Based Funding implementation, the State
Superintendent shall re-determine the CWI using a similar
methodology to that identified in the Texas A & M
University study, with adjustments made no less frequently
than once every 5 years.
"Computer technology and equipment" means computers
servers, notebooks, network equipment, copiers, printers,
instructional software, security software, curriculum
management courseware, and other similar materials and
equipment.

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"Computer technology and equipment investment
allocation" means the final Adequacy Target amount of an
Organizational Unit assigned to Tier 1 or Tier 2 in the
prior school year attributable to the additional $285.50
per student computer technology and equipment investment
grant divided by the Organizational Unit's final Adequacy
Target, the result of which shall be multiplied by the
amount of new funding received pursuant to this Section. An
Organizational Unit assigned to a Tier 1 or Tier 2 final
Adequacy Target attributable to the received computer
technology and equipment investment grant shall include
all additional investments in computer technology and
equipment adequacy elements.
"Core subject" means mathematics; science; reading,
English, writing, and language arts; history and social
studies; world languages; and subjects taught as Advanced
Placement in high schools.
"Core teacher" means a regular classroom teacher in
elementary schools and teachers of a core subject in middle
and high schools.
"Core Intervention teacher (tutor)" means a licensed
teacher providing one-on-one or small group tutoring to
students struggling to meet proficiency in core subjects.
"CPPRT" means corporate personal property replacement
tax funds paid to an Organizational Unit during the
calendar year one year before the calendar year in which a

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school year begins, pursuant to "An Act in relation to the
abolition of ad valorem personal property tax and the
replacement of revenues lost thereby, and amending and
repealing certain Acts and parts of Acts in connection
therewith", certified August 14, 1979, as amended (Public
Act 81-1st S.S.-1).
"EAV" means equalized assessed valuation as defined in
paragraph (2) of subsection (d) of this Section and
calculated in accordance with paragraph (3) of subsection
(d) of this Section.
"ECI" means the Bureau of Labor Statistics' national
employment cost index for civilian workers in educational
services in elementary and secondary schools on a
cumulative basis for the 12-month calendar year preceding
the fiscal year of the Evidence-Based Funding calculation.
"EIS Data" means the employment information system
data maintained by the State Board on educators within
Organizational Units.
"Employee benefits" means health, dental, and vision
insurance offered to employees of an Organizational Unit,
the costs associated with the statutorily required payment
of the normal cost of the Organizational Unit's teacher
pensions, Social Security employer contributions, and
Illinois Municipal Retirement Fund employer contributions.
"English learner" or "EL" means a child included in the
definition of "English learners" under Section 14C-2 of

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this Code participating in a program of transitional
bilingual education or a transitional program of
instruction meeting the requirements and program
application procedures of Article 14C of this Code. For the
purposes of collecting the number of EL students enrolled,
the same collection and calculation methodology as defined
above for "ASE" shall apply to English learners, with the
exception that EL student enrollment shall include
students in grades pre-kindergarten through 12.
"Essential Elements" means those elements, resources,
and educational programs that have been identified through
academic research as necessary to improve student success,
improve academic performance, close achievement gaps, and
provide for other per student costs related to the delivery
and leadership of the Organizational Unit, as well as the
maintenance and operations of the unit, and which are
specified in paragraph (2) of subsection (b) of this
Section.
"Evidence-Based Funding" means State funding provided
to an Organizational Unit pursuant to this Section.
"Extended day" means academic and enrichment programs
provided to students outside the regular school day before
and after school or during non-instructional times during
the school day.
"Extension Limitation Ratio" means a numerical ratio
in which the numerator is the Base Tax Year's Extension and

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the denominator is the Preceding Tax Year's Extension.
"Final Percent of Adequacy" is defined in paragraph (4)
of subsection (f) of this Section.
"Final Resources" is defined in paragraph (3) of
subsection (f) of this Section.
"Full-time equivalent" or "FTE" means the full-time
equivalency compensation for staffing the relevant
position at an Organizational Unit.
"Funding Gap" is defined in paragraph (1) of subsection
(g).
"Guidance counselor" means a licensed guidance
counselor who provides guidance and counseling support for
students within an Organizational Unit.
"Hybrid District" means a partial elementary unit
district created pursuant to Article 11E of this Code.
"Instructional assistant" means a core or special
education, non-licensed employee who assists a teacher in
the classroom and provides academic support to students.
"Instructional facilitator" means a qualified teacher
or licensed teacher leader who facilitates and coaches
continuous improvement in classroom instruction; provides
instructional support to teachers in the elements of
research-based instruction or demonstrates the alignment
of instruction with curriculum standards and assessment
tools; develops or coordinates instructional programs or
strategies; develops and implements training; chooses

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standards-based instructional materials; provides teachers
with an understanding of current research; serves as a
mentor, site coach, curriculum specialist, or lead
teacher; or otherwise works with fellow teachers, in
collaboration, to use data to improve instructional
practice or develop model lessons.
"Instructional materials" means relevant instructional
materials for student instruction, including, but not
limited to, textbooks, consumable workbooks, laboratory
equipment, library books, and other similar materials.
"Laboratory School" means a public school that is
created and operated by a public university and approved by
the State Board.
"Librarian" means a teacher with an endorsement as a
library information specialist or another individual whose
primary responsibility is overseeing library resources
within an Organizational Unit.
"Limiting rate for Hybrid Districts" means the
combined elementary school and high school limiting
limited rates.
"Local Capacity" is defined in paragraph (1) of
subsection (c) of this Section.
"Local Capacity Percentage" is defined in subparagraph
(A) of paragraph (2) of subsection (c) of this Section.
"Local Capacity Ratio" is defined in subparagraph (B)
of paragraph (2) of subsection (c) of this Section.

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"Local Capacity Target" is defined in paragraph (2) of
subsection (c) of this Section.
"Low-Income Count" means, for an Organizational Unit
in a fiscal year, the higher of the average number of
students for the prior school year or the immediately
preceding 3 school years who, as of July 1 of the
immediately preceding fiscal year (as determined by the
Department of Human Services), are eligible for at least
one of the following low-income low income programs:
Medicaid, the Children's Health Insurance Program,
Temporary Assistance for Needy Families (TANF), or the
Supplemental Nutrition Assistance Program, excluding
pupils who are eligible for services provided by the
Department of Children and Family Services. Until such time
that grade level low-income populations become available,
grade level low-income populations shall be determined by
applying the low-income percentage to total student
enrollments by grade level. The low-income percentage is
determined by dividing the Low-Income Count by the Average
Student Enrollment. The low-income percentage for programs
operated by a regional office of education or an
intermediate service center must be set to the weighted
average of the low-income percentages of all of the school
districts in the service region. The weighted low-income
percentage is the result of multiplying the low-income
percentage of each school district served by the regional

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office of education or intermediate service center by each
school district's Average Student Enrollment, summarizing
those products and dividing the total by the total Average
Student Enrollment for the service region.
"Maintenance and operations" means custodial services,
facility and ground maintenance, facility operations,
facility security, routine facility repairs, and other
similar services and functions.
"Minimum Funding Level" is defined in paragraph (9) of
subsection (g) of this Section.
"New Property Tax Relief Pool Funds" means, for any
given fiscal year, all State funds appropriated under
Section 2-3.170 of the School Code.
"New State Funds" means, for a given school year, all
State funds appropriated for Evidence-Based Funding in
excess of the amount needed to fund the Base Funding
Minimum for all Organizational Units in that school year.
"Net State Contribution Target" means, for a given
school year, the amount of State funds that would be
necessary to fully meet the Adequacy Target of an
Operational Unit minus the Preliminary Resources available
to each unit.
"Nurse" means an individual licensed as a certified
school nurse, in accordance with the rules established for
nursing services by the State Board, who is an employee of
and is available to provide health care-related services

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for students of an Organizational Unit.
"Operating Tax Rate" means the rate utilized in the
previous year to extend property taxes for all purposes,
except, Bond and Interest, Summer School, Rent, Capital
Improvement, and Vocational Education Building purposes.
For Hybrid Districts, the Operating Tax Rate shall be the
combined elementary and high school rates utilized in the
previous year to extend property taxes for all purposes,
except, Bond and Interest, Summer School, Rent, Capital
Improvement, and Vocational Education Building purposes.
"Organizational Unit" means a Laboratory School or any
public school district that is recognized as such by the
State Board and that contains elementary schools typically
serving kindergarten through 5th grades, middle schools
typically serving 6th through 8th grades, high schools
typically serving 9th through 12th grades, a program
established under Section 2-3.66 or 2-3.41, or a program
operated by a regional office of education or an
intermediate service center under Article 13A or 13B. The
General Assembly acknowledges that the actual grade levels
served by a particular Organizational Unit may vary
slightly from what is typical.
"Organizational Unit CWI" is determined by calculating
the CWI in the region and original county in which an
Organizational Unit's primary administrative office is
located as set forth in this paragraph, provided that if

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the Organizational Unit CWI as calculated in accordance
with this paragraph is less than 0.9, the Organizational
Unit CWI shall be increased to 0.9. Each county's current
CWI value shall be adjusted based on the CWI value of that
county's neighboring Illinois counties, to create a
"weighted adjusted index value". This shall be calculated
by summing the CWI values of all of a county's adjacent
Illinois counties and dividing by the number of adjacent
Illinois counties, then taking the weighted value of the
original county's CWI value and the adjacent Illinois
county average. To calculate this weighted value, if the
number of adjacent Illinois counties is greater than 2, the
original county's CWI value will be weighted at 0.25 and
the adjacent Illinois county average will be weighted at
0.75. If the number of adjacent Illinois counties is 2, the
original county's CWI value will be weighted at 0.33 and
the adjacent Illinois county average will be weighted at
0.66. The greater of the county's current CWI value and its
weighted adjusted index value shall be used as the
Organizational Unit CWI.
"Preceding Tax Year" means the property tax levy year
immediately preceding the Base Tax Year.
"Preceding Tax Year's Extension" means the product of
the equalized assessed valuation utilized by the county
clerk in the Preceding Tax Year multiplied by the Operating
Tax Rate.

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"Preliminary Percent of Adequacy" is defined in
paragraph (2) of subsection (f) of this Section.
"Preliminary Resources" is defined in paragraph (2) of
subsection (f) of this Section.
"Principal" means a school administrator duly endorsed
to be employed as a principal in this State.
"Professional development" means training programs for
licensed staff in schools, including, but not limited to,
programs that assist in implementing new curriculum
programs, provide data focused or academic assessment data
training to help staff identify a student's weaknesses and
strengths, target interventions, improve instruction,
encompass instructional strategies for English learner,
gifted, or at-risk students, address inclusivity, cultural
sensitivity, or implicit bias, or otherwise provide
professional support for licensed staff.
"Prototypical" means 450 special education
pre-kindergarten and kindergarten through grade 5 students
for an elementary school, 450 grade 6 through 8 students
for a middle school, and 600 grade 9 through 12 students
for a high school.
"PTELL" means the Property Tax Extension Limitation
Law.
"PTELL EAV" is defined in paragraph (4) of subsection
(d) of this Section.
"Pupil support staff" means a nurse, psychologist,

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social worker, family liaison personnel, or other staff
member who provides support to at-risk or struggling
students.
"Real Receipts" is defined in paragraph (1) of
subsection (d) of this Section.
"Regionalization Factor" means, for a particular
Organizational Unit, the figure derived by dividing the
Organizational Unit CWI by the Statewide Weighted CWI.
"Resident school district" means the public school
district in which a student resides.
"School site staff" means the primary school secretary
and any additional clerical personnel assigned to a school.
"Special education" means special educational
facilities and services, as defined in Section 14-1.08 of
this Code.
"Special Education Allocation" means the amount of an
Organizational Unit's final Adequacy Target attributable
to special education divided by the Organizational Unit's
final Adequacy Target, the product of which shall be
multiplied by the amount of new funding received pursuant
to this Section. An Organizational Unit's final Adequacy
Target attributable to special education shall include all
special education investment adequacy elements.
"Specialist teacher" means a teacher who provides
instruction in subject areas not included in core subjects,
including, but not limited to, art, music, physical

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education, health, driver education, career-technical
education, and such other subject areas as may be mandated
by State law or provided by an Organizational Unit.
"Specially Funded Unit" means an Alternative School,
safe school, Department of Juvenile Justice school,
special education cooperative or entity recognized by the
State Board as a special education cooperative,
State-approved charter school, or alternative learning
opportunities program that received direct funding from
the State Board during the 2016-2017 school year through
any of the funding sources included within the calculation
of the Base Funding Minimum or Glenwood Academy.
"Supplemental Grant Funding" means supplemental
general State aid funding received by an Organizational
Organization Unit during the 2016-2017 school year
pursuant to subsection (H) of Section 18-8.05 of this Code
(now repealed).
"State Adequacy Level" is the sum of the Adequacy
Targets of all Organizational Units.
"State Board" means the State Board of Education.
"State Superintendent" means the State Superintendent
of Education.
"Statewide Weighted CWI" means a figure determined by
multiplying each Organizational Unit CWI times the ASE for
that Organizational Unit creating a weighted value,
summing all Organizational Units' Unit's weighted values,

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and dividing by the total ASE of all Organizational Units,
thereby creating an average weighted index.
"Student activities" means non-credit producing
after-school programs, including, but not limited to,
clubs, bands, sports, and other activities authorized by
the school board of the Organizational Unit.
"Substitute teacher" means an individual teacher or
teaching assistant who is employed by an Organizational
Unit and is temporarily serving the Organizational Unit on
a per diem or per period-assignment basis to replace
replacing another staff member.
"Summer school" means academic and enrichment programs
provided to students during the summer months outside of
the regular school year.
"Supervisory aide" means a non-licensed staff member
who helps in supervising students of an Organizational
Unit, but does so outside of the classroom, in situations
such as, but not limited to, monitoring hallways and
playgrounds, supervising lunchrooms, or supervising
students when being transported in buses serving the
Organizational Unit.
"Target Ratio" is defined in paragraph (4) of
subsection (g).
"Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined
in paragraph (3) of subsection (g).
"Tier 1 Aggregate Funding", "Tier 2 Aggregate

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Funding", "Tier 3 Aggregate Funding", and "Tier 4 Aggregate
Funding" are defined in paragraph (1) of subsection (g).
(b) Adequacy Target calculation.
(1) Each Organizational Unit's Adequacy Target is the
sum of the Organizational Unit's cost of providing
Essential Elements, as calculated in accordance with this
subsection (b), with the salary amounts in the Essential
Elements multiplied by a Regionalization Factor calculated
pursuant to paragraph (3) of this subsection (b).
(2) The Essential Elements are attributable on a pro
rata basis related to defined subgroups of the ASE of each
Organizational Unit as specified in this paragraph (2),
with investments and FTE positions pro rata funded based on
ASE counts in excess or less than the thresholds set forth
in this paragraph (2). The method for calculating
attributable pro rata costs and the defined subgroups
thereto are as follows:
(A) Core class size investments. Each
Organizational Unit shall receive the funding required
to support that number of FTE core teacher positions as
is needed to keep the respective class sizes of the
Organizational Unit to the following maximum numbers:
(i) For grades kindergarten through 3, the
Organizational Unit shall receive funding required
to support one FTE core teacher position for every
15 Low-Income Count students in those grades and

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one FTE core teacher position for every 20
non-Low-Income Count students in those grades.
(ii) For grades 4 through 12, the
Organizational Unit shall receive funding required
to support one FTE core teacher position for every
20 Low-Income Count students in those grades and
one FTE core teacher position for every 25
non-Low-Income Count students in those grades.
The number of non-Low-Income Count students in a
grade shall be determined by subtracting the
Low-Income students in that grade from the ASE of the
Organizational Unit for that grade.
(B) Specialist teacher investments. Each
Organizational Unit shall receive the funding needed
to cover that number of FTE specialist teacher
positions that correspond to the following
percentages:
(i) if the Organizational Unit operates an
elementary or middle school, then 20.00% of the
number of the Organizational Unit's core teachers,
as determined under subparagraph (A) of this
paragraph (2); and
(ii) if such Organizational Unit operates a
high school, then 33.33% of the number of the
Organizational Unit's core teachers.
(C) Instructional facilitator investments. Each

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Organizational Unit shall receive the funding needed
to cover one FTE instructional facilitator position
for every 200 combined ASE of pre-kindergarten
children with disabilities and all kindergarten
through grade 12 students of the Organizational Unit.
(D) Core intervention teacher (tutor) investments.
Each Organizational Unit shall receive the funding
needed to cover one FTE teacher position for each
prototypical elementary, middle, and high school.
(E) Substitute teacher investments. Each
Organizational Unit shall receive the funding needed
to cover substitute teacher costs that is equal to
5.70% of the minimum pupil attendance days required
under Section 10-19 of this Code for all full-time
equivalent core, specialist, and intervention
teachers, school nurses, special education teachers
and instructional assistants, instructional
facilitators, and summer school and extended day
extended-day teacher positions, as determined under
this paragraph (2), at a salary rate of 33.33% of the
average salary for grade K through 12 teachers and
33.33% of the average salary of each instructional
assistant position.
(F) Core guidance counselor investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE guidance counselor for each 450

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combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 5
students, plus one FTE guidance counselor for each 250
grades 6 through 8 ASE middle school students, plus one
FTE guidance counselor for each 250 grades 9 through 12
ASE high school students.
(G) Nurse investments. Each Organizational Unit
shall receive the funding needed to cover one FTE nurse
for each 750 combined ASE of pre-kindergarten children
with disabilities and all kindergarten through grade
12 students across all grade levels it serves.
(H) Supervisory aide investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE for each 225 combined ASE of
pre-kindergarten children with disabilities and all
kindergarten through grade 5 students, plus one FTE for
each 225 ASE middle school students, plus one FTE for
each 200 ASE high school students.
(I) Librarian investments. Each Organizational
Unit shall receive the funding needed to cover one FTE
librarian for each prototypical elementary school,
middle school, and high school and one FTE aide or
media technician for every 300 combined ASE of
pre-kindergarten children with disabilities and all
kindergarten through grade 12 students.
(J) Principal investments. Each Organizational

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Unit shall receive the funding needed to cover one FTE
principal position for each prototypical elementary
school, plus one FTE principal position for each
prototypical middle school, plus one FTE principal
position for each prototypical high school.
(K) Assistant principal investments. Each
Organizational Unit shall receive the funding needed
to cover one FTE assistant principal position for each
prototypical elementary school, plus one FTE assistant
principal position for each prototypical middle
school, plus one FTE assistant principal position for
each prototypical high school.
(L) School site staff investments. Each
Organizational Unit shall receive the funding needed
for one FTE position for each 225 ASE of
pre-kindergarten children with disabilities and all
kindergarten through grade 5 students, plus one FTE
position for each 225 ASE middle school students, plus
one FTE position for each 200 ASE high school students.
(M) Gifted investments. Each Organizational Unit
shall receive $40 per kindergarten through grade 12
ASE.
(N) Professional development investments. Each
Organizational Unit shall receive $125 per student of
the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12

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students for trainers and other professional
development-related expenses for supplies and
materials.
(O) Instructional material investments. Each
Organizational Unit shall receive $190 per student of
the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students to cover instructional material costs.
(P) Assessment investments. Each Organizational
Unit shall receive $25 per student of the combined ASE
of pre-kindergarten children with disabilities and all
kindergarten through grade 12 students student to
cover assessment costs.
(Q) Computer technology and equipment investments.
Each Organizational Unit shall receive $285.50 per
student of the combined ASE of pre-kindergarten
children with disabilities and all kindergarten
through grade 12 students to cover computer technology
and equipment costs. For the 2018-2019 school year and
subsequent school years, Organizational Units assigned
to Tier 1 and Tier 2 in the prior school year shall
receive an additional $285.50 per student of the
combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students to cover computer technology and equipment
costs in the Organizational Organization Unit's

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Adequacy Target. The State Board may establish
additional requirements for Organizational Unit
expenditures of funds received pursuant to this
subparagraph (Q), including a requirement that funds
received pursuant to this subparagraph (Q) may be used
only for serving the technology needs of the district.
It is the intent of Public Act 100-465 this amendatory
Act of the 100th General Assembly that all Tier 1 and
Tier 2 districts receive the addition to their Adequacy
Target in the following year, subject to compliance
with the requirements of the State Board.
(R) Student activities investments. Each
Organizational Unit shall receive the following
funding amounts to cover student activities: $100 per
kindergarten through grade 5 ASE student in elementary
school, plus $200 per ASE student in middle school,
plus $675 per ASE student in high school.
(S) Maintenance and operations investments. Each
Organizational Unit shall receive $1,038 per student
of the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students for day-to-day maintenance and operations
expenditures, including salary, supplies, and
materials, as well as purchased services, but
excluding employee benefits. The proportion of salary
for the application of a Regionalization Factor and the

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calculation of benefits is equal to $352.92.
(T) Central office investments. Each
Organizational Unit shall receive $742 per student of
the combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students to cover central office operations, including
administrators and classified personnel charged with
managing the instructional programs, business and
operations of the school district, and security
personnel. The proportion of salary for the
application of a Regionalization Factor and the
calculation of benefits is equal to $368.48.
(U) Employee benefit investments. Each
Organizational Unit shall receive 30% of the total of
all salary-calculated elements of the Adequacy Target,
excluding substitute teachers and student activities
investments, to cover benefit costs. For central
office and maintenance and operations investments, the
benefit calculation shall be based upon the salary
proportion of each investment. If at any time the
responsibility for funding the employer normal cost of
teacher pensions is assigned to school districts, then
that amount certified by the Teachers' Retirement
System of the State of Illinois to be paid by the
Organizational Unit for the preceding school year
shall be added to the benefit investment. For any

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fiscal year in which a school district organized under
Article 34 of this Code is responsible for paying the
employer normal cost of teacher pensions, then that
amount of its employer normal cost plus the amount for
retiree health insurance as certified by the Public
School Teachers' Pension and Retirement Fund of
Chicago to be paid by the school district for the
preceding school year that is statutorily required to
cover employer normal costs and the amount for retiree
health insurance shall be added to the 30% specified in
this subparagraph (U). The Teachers' Retirement System
of the State of Illinois and the Public School
Teachers' Pension and Retirement Fund of Chicago shall
submit such information as the State Superintendent
may require for the calculations set forth in this
subparagraph (U).
(V) Additional investments in low-income students.
In addition to and not in lieu of all other funding
under this paragraph (2), each Organizational Unit
shall receive funding based on the average teacher
salary for grades K through 12 to cover the costs of:
(i) one FTE intervention teacher (tutor)
position for every 125 Low-Income Count students;
(ii) one FTE pupil support staff position for
every 125 Low-Income Count students;
(iii) one FTE extended day teacher position

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for every 120 Low-Income Count students; and
(iv) one FTE summer school teacher position
for every 120 Low-Income Count students.
(W) Additional investments in English learner
students. In addition to and not in lieu of all other
funding under this paragraph (2), each Organizational
Unit shall receive funding based on the average teacher
salary for grades K through 12 to cover the costs of:
(i) one FTE intervention teacher (tutor)
position for every 125 English learner students;
(ii) one FTE pupil support staff position for
every 125 English learner students;
(iii) one FTE extended day teacher position
for every 120 English learner students;
(iv) one FTE summer school teacher position
for every 120 English learner students; and
(v) one FTE core teacher position for every 100
English learner students.
(X) Special education investments. Each
Organizational Unit shall receive funding based on the
average teacher salary for grades K through 12 to cover
special education as follows:
(i) one FTE teacher position for every 141
combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students;

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(ii) one FTE instructional assistant for every
141 combined ASE of pre-kindergarten children with
disabilities and all kindergarten through grade 12
students; and
(iii) one FTE psychologist position for every
1,000 combined ASE of pre-kindergarten children
with disabilities and all kindergarten through
grade 12 students.
(3) For calculating the salaries included within the
Essential Elements, the State Superintendent shall
annually calculate average salaries to the nearest dollar
using the employment information system data maintained by
the State Board, limited to public schools only and
excluding special education and vocational cooperatives,
schools operated by the Department of Juvenile Justice, and
charter schools, for the following positions:
(A) Teacher for grades K through 8.
(B) Teacher for grades 9 through 12.
(C) Teacher for grades K through 12.
(D) Guidance counselor for grades K through 8.
(E) Guidance counselor for grades 9 through 12.
(F) Guidance counselor for grades K through 12.
(G) Social worker.
(H) Psychologist.
(I) Librarian.
(J) Nurse.

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(K) Principal.
(L) Assistant principal.
For the purposes of this paragraph (3), "teacher"
includes core teachers, specialist and elective teachers,
instructional facilitators, tutors, special education
teachers, pupil support staff teachers, English learner
teachers, extended day extended-day teachers, and summer
school teachers. Where specific grade data is not required
for the Essential Elements, the average salary for
corresponding positions shall apply. For substitute
teachers, the average teacher salary for grades K through
12 shall apply.
For calculating the salaries included within the
Essential Elements for positions not included within EIS
Data, the following salaries shall be used in the first
year of implementation of Evidence-Based Funding:
(i) school site staff, $30,000; and
(ii) non-instructional assistant, instructional
assistant, library aide, library media tech, or
supervisory aide: $25,000.
In the second and subsequent years of implementation of
Evidence-Based Funding, the amounts in items (i) and (ii)
of this paragraph (3) shall annually increase by the ECI.
The salary amounts for the Essential Elements
determined pursuant to subparagraphs (A) through (L), (S)
and (T), and (V) through (X) of paragraph (2) of subsection

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(b) of this Section shall be multiplied by a
Regionalization Factor.
(c) Local Capacity capacity calculation.
(1) Each Organizational Unit's Local Capacity
represents an amount of funding it is assumed to contribute
toward its Adequacy Target for purposes of the
Evidence-Based Funding formula calculation. "Local
Capacity" means either (i) the Organizational Unit's Local
Capacity Target as calculated in accordance with paragraph
(2) of this subsection (c) if its Real Receipts are equal
to or less than its Local Capacity Target or (ii) the
Organizational Unit's Adjusted Local Capacity, as
calculated in accordance with paragraph (3) of this
subsection (c) if Real Receipts are more than its Local
Capacity Target.
(2) "Local Capacity Target" means, for an
Organizational Unit, that dollar amount that is obtained by
multiplying its Adequacy Target by its Local Capacity
Ratio.
(A) An Organizational Unit's Local Capacity
Percentage is the conversion of the Organizational
Unit's Local Capacity Ratio, as such ratio is
determined in accordance with subparagraph (B) of this
paragraph (2), into a cumulative distribution
resulting in a percentile ranking to determine each
Organizational Unit's relative position to all other

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Organizational Units in this State. The calculation of
Local Capacity Percentage is described in subparagraph
(C) of this paragraph (2).
(B) An Organizational Unit's Local Capacity Ratio
in a given year is the percentage obtained by dividing
its Adjusted EAV or PTELL EAV, whichever is less, by
its Adequacy Target, with the resulting ratio further
adjusted as follows:
(i) for Organizational Units serving grades
kindergarten through 12 and Hybrid Districts, no
further adjustments shall be made;
(ii) for Organizational Units serving grades
kindergarten through 8, the ratio shall be
multiplied by 9/13;
(iii) for Organizational Units serving grades
9 through 12, the Local Capacity Ratio shall be
multiplied by 4/13; and
(iv) for an Organizational Unit with a
different grade configuration than those specified
in items (i) through (iii) of this subparagraph
(B), the State Superintendent shall determine a
comparable adjustment based on the grades served.
(C) The Local Capacity Percentage is equal to the
percentile ranking of the district. Local Capacity
Percentage converts each Organizational Unit's Local
Capacity Ratio to a cumulative distribution resulting

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in a percentile ranking to determine each
Organizational Unit's relative position to all other
Organizational Units in this State. The Local Capacity
Percentage cumulative distribution resulting in a
percentile ranking for each Organizational Unit shall
be calculated using the standard normal distribution
of the score in relation to the weighted mean and
weighted standard deviation and Local Capacity Ratios
of all Organizational Units. If the value assigned to
any Organizational Unit is in excess of 90%, the value
shall be adjusted to 90%. For Laboratory Schools, the
Local Capacity Percentage shall be set at 10% in
recognition of the absence of EAV and resources from
the public university that are allocated to the
Laboratory School. For programs operated by a regional
office of education or an intermediate service center,
the Local Capacity Percentage must be set at 10% in
recognition of the absence of EAV and resources from
school districts that are allocated to the regional
office of education or intermediate service center.
The weighted mean for the Local Capacity Percentage
shall be determined by multiplying each Organizational
Unit's Local Capacity Ratio times the ASE for the unit
creating a weighted value, summing the weighted values
of all Organizational Units, and dividing by the total
ASE of all Organizational Units. The weighted standard

HB4585 - 39 - LRB101 16491 NHT 65872 b
deviation shall be determined by taking the square root
of the weighted variance of all Organizational Units'
Local Capacity Ratio, where the variance is calculated
by squaring the difference between each unit's Local
Capacity Ratio and the weighted mean, then multiplying
the variance for each unit times the ASE for the unit
to create a weighted variance for each unit, then
summing all units' weighted variance and dividing by
the total ASE of all units.
(D) For any Organizational Unit, the
Organizational Unit's Adjusted Local Capacity Target
shall be reduced by either (i) the school board's
remaining contribution pursuant to paragraph (ii) of
subsection (b-4) of Section 16-158 of the Illinois
Pension Code in a given year, or (ii) the board of
education's remaining contribution pursuant to
paragraph (iv) of subsection (b) of Section 17-129 of
the Illinois Pension Code absent the employer normal
cost portion of the required contribution and amount
allowed pursuant to subdivision (3) of Section
17-142.1 of the Illinois Pension Code in a given year.
In the preceding sentence, item (i) shall be certified
to the State Board of Education by the Teachers'
Retirement System of the State of Illinois and item
(ii) shall be certified to the State Board of Education
by the Public School Teachers' Pension and Retirement

HB4585 - 40 - LRB101 16491 NHT 65872 b
Fund of the City of Chicago.
(3) If an Organizational Unit's Real Receipts are more
than its Local Capacity Target, then its Local Capacity
shall equal an Adjusted Local Capacity Target as calculated
in accordance with this paragraph (3). The Adjusted Local
Capacity Target is calculated as the sum of the
Organizational Unit's Local Capacity Target and its Real
Receipts Adjustment. The Real Receipts Adjustment equals
the Organizational Unit's Real Receipts less its Local
Capacity Target, with the resulting figure multiplied by
the Local Capacity Percentage.
As used in this paragraph (3), "Real Percent of
Adequacy" means the sum of an Organizational Unit's Real
Receipts, CPPRT, and Base Funding Minimum, with the
resulting figure divided by the Organizational Unit's
Adequacy Target.
(d) Calculation of Real Receipts, EAV, and Adjusted EAV for
purposes of the Local Capacity calculation.
(1) An Organizational Unit's Real Receipts are the
product of its Applicable Tax Rate and its Adjusted EAV. An
Organizational Unit's Applicable Tax Rate is its Adjusted
Operating Tax Rate for property within the Organizational
Unit.
(2) The State Superintendent shall calculate the
equalized assessed valuation Equalized Assessed Valuation,
or EAV, of all taxable property of each Organizational Unit

HB4585 - 41 - LRB101 16491 NHT 65872 b
as of September 30 of the previous year in accordance with
paragraph (3) of this subsection (d). The State
Superintendent shall then determine the Adjusted EAV of
each Organizational Unit in accordance with paragraph (4)
of this subsection (d), which Adjusted EAV figure shall be
used for the purposes of calculating Local Capacity.
(3) To calculate Real Receipts and EAV, the Department
of Revenue shall supply to the State Superintendent the
value as equalized or assessed by the Department of Revenue
of all taxable property of every Organizational Unit,
together with (i) the applicable tax rate used in extending
taxes for the funds of the Organizational Unit as of
September 30 of the previous year and (ii) the limiting
rate for all Organizational Units subject to property tax
extension limitations as imposed under PTELL.
(A) The Department of Revenue shall add to the
equalized assessed value of all taxable property of
each Organizational Unit situated entirely or
partially within a county that is or was subject to the
provisions of Section 15-176 or 15-177 of the Property
Tax Code (i) an amount equal to the total amount by
which the homestead exemption allowed under Section
15-176 or 15-177 of the Property Tax Code for real
property situated in that Organizational Unit exceeds
the total amount that would have been allowed in that
Organizational Unit if the maximum reduction under

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Section 15-176 was (I) $4,500 in Cook County or $3,500
in all other counties in tax year 2003 or (II) $5,000
in all counties in tax year 2004 and thereafter and
(ii) an amount equal to the aggregate amount for the
taxable year of all additional exemptions under
Section 15-175 of the Property Tax Code for owners with
a household income of $30,000 or less. The county clerk
of any county that is or was subject to the provisions
of Section 15-176 or 15-177 of the Property Tax Code
shall annually calculate and certify to the Department
of Revenue for each Organizational Unit all homestead
exemption amounts under Section 15-176 or 15-177 of the
Property Tax Code and all amounts of additional
exemptions under Section 15-175 of the Property Tax
Code for owners with a household income of $30,000 or
less. It is the intent of this subparagraph (A) that if
the general homestead exemption for a parcel of
property is determined under Section 15-176 or 15-177
of the Property Tax Code rather than Section 15-175,
then the calculation of EAV shall not be affected by
the difference, if any, between the amount of the
general homestead exemption allowed for that parcel of
property under Section 15-176 or 15-177 of the Property
Tax Code and the amount that would have been allowed
had the general homestead exemption for that parcel of
property been determined under Section 15-175 of the

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Property Tax Code. It is further the intent of this
subparagraph (A) that if additional exemptions are
allowed under Section 15-175 of the Property Tax Code
for owners with a household income of less than
$30,000, then the calculation of EAV shall not be
affected by the difference, if any, because of those
additional exemptions.
(B) With respect to any part of an Organizational
Unit within a redevelopment project area in respect to
which a municipality has adopted tax increment
allocation financing pursuant to the Tax Increment
Allocation Redevelopment Act, Division 74.4 of Article
11 of the Illinois Municipal Code, or the Industrial
Jobs Recovery Law, Division 74.6 of Article 11 of the
Illinois Municipal Code, no part of the current EAV of
real property located in any such project area that
which is attributable to an increase above the total
initial EAV of such property shall be used as part of
the EAV of the Organizational Unit, until such time as
all redevelopment project costs have been paid, as
provided in Section 11-74.4-8 of the Tax Increment
Allocation Redevelopment Act or in Section 11-74.6-35
of the Industrial Jobs Recovery Law. For the purpose of
the EAV of the Organizational Unit, the total initial
EAV or the current EAV, whichever is lower, shall be
used until such time as all redevelopment project costs

HB4585 - 44 - LRB101 16491 NHT 65872 b
have been paid.
(B-5) The real property equalized assessed
valuation for a school district shall be adjusted by
subtracting from the real property value, as equalized
or assessed by the Department of Revenue, for the
district an amount computed by dividing the amount of
any abatement of taxes under Section 18-170 of the
Property Tax Code by 3.00% for a district maintaining
grades kindergarten through 12, by 2.30% for a district
maintaining grades kindergarten through 8, or by 1.05%
for a district maintaining grades 9 through 12 and
adjusted by an amount computed by dividing the amount
of any abatement of taxes under subsection (a) of
Section 18-165 of the Property Tax Code by the same
percentage rates for district type as specified in this
subparagraph (B-5).
(C) For Organizational Units that are Hybrid
Districts, the State Superintendent shall use the
lesser of the adjusted equalized assessed valuation
for property within the partial elementary unit
district for elementary purposes, as defined in
Article 11E of this Code, or the adjusted equalized
assessed valuation for property within the partial
elementary unit district for high school purposes, as
defined in Article 11E of this Code.
(4) An Organizational Unit's Adjusted EAV shall be the

HB4585 - 45 - LRB101 16491 NHT 65872 b
average of its EAV over the immediately preceding 3 years
or its EAV in the immediately preceding year if the EAV in
the immediately preceding year has declined by 10% or more
compared to the 3-year average. In the event of
Organizational Unit reorganization, consolidation, or
annexation, the Organizational Unit's Adjusted EAV for the
first 3 years after such change shall be as follows: the
most current EAV shall be used in the first year, the
average of a 2-year EAV or its EAV in the immediately
preceding year if the EAV declines by 10% or more compared
to the 2-year average for the second year, and a 3-year
average EAV or its EAV in the immediately preceding year if
the Adjusted adjusted EAV declines by 10% or more compared
to the 3-year average for the third year. For any school
district whose EAV in the immediately preceding year is
used in calculations, in the following year, the Adjusted
EAV shall be the average of its EAV over the immediately
preceding 2 years or the immediately preceding year if that
year represents a decline of 10% or more compared to the
2-year average.
"PTELL EAV" means a figure calculated by the State
Board for Organizational Units subject to PTELL as
described in this paragraph (4) for the purposes of
calculating an Organizational Unit's Local Capacity Ratio.
Except as otherwise provided in this paragraph (4), the
PTELL EAV of an Organizational Unit shall be equal to the

HB4585 - 46 - LRB101 16491 NHT 65872 b
product of the equalized assessed valuation last used in
the calculation of general State aid under Section 18-8.05
of this Code (now repealed) or Evidence-Based Funding under
this Section and the Organizational Unit's Extension
Limitation Ratio. If an Organizational Unit has approved or
does approve an increase in its limiting rate, pursuant to
Section 18-190 of the Property Tax Code, affecting the Base
Tax Year, the PTELL EAV shall be equal to the product of
the equalized assessed valuation last used in the
calculation of general State aid under Section 18-8.05 of
this Code (now repealed) or Evidence-Based Funding under
this Section multiplied by an amount equal to one plus the
percentage increase, if any, in the Consumer Price Index
for All Urban Consumers for all items published by the
United States Department of Labor for the 12-month calendar
year preceding the Base Tax Year, plus the equalized
assessed valuation of new property, annexed property, and
recovered tax increment value and minus the equalized
assessed valuation of disconnected property.
As used in this paragraph (4), "new property" and
"recovered tax increment value" shall have the meanings set
forth in the Property Tax Extension Limitation Law.
(e) Base Funding Minimum calculation.
(1) For the 2017-2018 school year, the Base Funding
Minimum of an Organizational Unit or a Specially Funded
Unit shall be the amount of State funds distributed to the

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Organizational Unit or Specially Funded Unit during the
2016-2017 school year prior to any adjustments and
specified appropriation amounts described in this
paragraph (1) from the following Sections, as calculated by
the State Superintendent: Section 18-8.05 of this Code (now
repealed); Section 5 of Article 224 of Public Act 99-524
(equity grants); Section 14-7.02b of this Code (funding for
children requiring special education services); Section
14-13.01 of this Code (special education facilities and
staffing), except for reimbursement of the cost of
transportation pursuant to Section 14-13.01; Section
14C-12 of this Code (English learners); and Section 18-4.3
of this Code (summer school), based on an appropriation
level of $13,121,600. For a school district organized under
Article 34 of this Code, the Base Funding Minimum also
includes (i) the funds allocated to the school district
pursuant to Section 1D-1 of this Code attributable to
funding programs authorized by the Sections of this Code
listed in the preceding sentence; and (ii) the difference
between (I) the funds allocated to the school district
pursuant to Section 1D-1 of this Code attributable to the
funding programs authorized by Section 14-7.02 (non-public
special education reimbursement), subsection (b) of
Section 14-13.01 (special education transportation),
Section 29-5 (transportation), Section 2-3.80
(agricultural education), Section 2-3.66 (truants'

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alternative education), Section 2-3.62 (educational
service centers), and Section 14-7.03 (special education -
orphanage) of this Code and Section 15 of the Childhood
Hunger Relief Act (free breakfast program) and (II) the
school district's actual expenditures for its non-public
special education, special education transportation,
transportation programs, agricultural education, truants'
alternative education, services that would otherwise be
performed by a regional office of education, special
education orphanage expenditures, and free breakfast, as
most recently calculated and reported pursuant to
subsection (f) of Section 1D-1 of this Code. The Base
Funding Minimum for Glenwood Academy shall be $625,500. For
programs operated by a regional office of education or an
intermediate service center, the Base Funding Minimum must
be the total amount of State funds allocated to those
programs in the 2018-2019 school year and amounts provided
pursuant to Article 34 of Public Act 100-586 and Section
3-16 of this Code. All programs established after June 5,
2019 (the effective date of Public Act 101-10) this
amendatory Act of the 101st General Assembly and
administered by a regional office of education or an
intermediate service center must have an initial Base
Funding Minimum set to an amount equal to the first-year
ASE multiplied by the amount of per pupil funding received
in the previous school year by the lowest funded similar

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existing program type. If the enrollment for a program
operated by a regional office of education or an
intermediate service center is zero, then it may not
receive Base Funding Minimum funds for that program in the
next fiscal year, and those funds must be distributed to
Organizational Units under subsection (g).
(2) For the 2018-2019 and subsequent school years, the
Base Funding Minimum of Organizational Units and Specially
Funded Units shall be the sum of (i) the amount of
Evidence-Based Funding for the prior school year, (ii) the
Base Funding Minimum for the prior school year, and (iii)
any amount received by a school district pursuant to
Section 7 of Article 97 of Public Act 100-21.
(f) Percent of Adequacy and Final Resources calculation.
(1) The Evidence-Based Funding formula establishes a
Percent of Adequacy for each Organizational Unit in order
to place such units into tiers for the purposes of the
funding distribution system described in subsection (g) of
this Section. Initially, an Organizational Unit's
Preliminary Resources and Preliminary Percent of Adequacy
are calculated pursuant to paragraph (2) of this subsection
(f). Then, an Organizational Unit's Final Resources and
Final Percent of Adequacy are calculated to account for the
Organizational Unit's poverty concentration levels
pursuant to paragraphs (3) and (4) of this subsection (f).
(2) An Organizational Unit's Preliminary Resources are

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

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Evidence-Based Funding formula distribution system first
places all Organizational Units into one of 4 tiers in
accordance with paragraph (3) of this subsection (g), based
on the Organizational Unit's Final Percent of Adequacy. New
State Funds are allocated to each of the 4 tiers as
follows: Tier 1 Aggregate Funding equals 50% of all New
State Funds, Tier 2 Aggregate Funding equals 49% of all New
State Funds, Tier 3 Aggregate Funding equals 0.9% of all
New State Funds, and Tier 4 Aggregate Funding equals 0.1%
of all New State Funds. Each Organizational Unit within
Tier 1 or Tier 2 receives an allocation of New State Funds
equal to its tier Funding Gap, as defined in the following
sentence, multiplied by the tier's Allocation Rate
determined pursuant to paragraph (4) of this subsection
(g). For Tier 1, an Organizational Unit's Funding Gap
equals the tier's Target Ratio, as specified in paragraph
(5) of this subsection (g), multiplied by the
Organizational Unit's Adequacy Target, with the resulting
amount reduced by the Organizational Unit's Final
Resources. For Tier 2, an Organizational Unit's Funding Gap
equals the tier's Target Ratio, as described in paragraph
(5) of this subsection (g), multiplied by the
Organizational Unit's Adequacy Target, with the resulting
amount reduced by the Organizational Unit's Final
Resources and its Tier 1 funding allocation. To determine
the Organizational Unit's Funding Gap, the resulting

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

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

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

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one or more appropriate Organizational Units as determined
by the State Superintendent based on the prior year ASE of
the Organizational Units.
(8.5) If a school district withdraws from a special
education cooperative, the portion of the Base Funding
Minimum that is attributable to the school district may be
redistributed to the school district upon withdrawal. The
school district and the cooperative must include the amount
of the Base Funding Minimum that is to be reapportioned
re-apportioned in their withdrawal agreement and notify
the State Board of the change with a copy of the agreement
upon withdrawal.
(9) The Minimum Funding Level is intended to establish
a target for State funding that will keep pace with
inflation and continue to advance equity through the
Evidence-Based Funding formula. The target for State
funding of New Property Tax Relief Pool Funds is
$50,000,000 for State fiscal year 2019 and subsequent State
fiscal years. The Minimum Funding Level is equal to
$350,000,000. In addition to any New State Funds, no more
than $50,000,000 New Property Tax Relief Pool Funds may be
counted toward towards the Minimum Funding Level. If the
sum of New State Funds and applicable New Property Tax
Relief Pool Funds are less than the Minimum Funding Level,
than funding for tiers shall be reduced in the following
manner:

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

HB4585 - 57 - LRB101 16491 NHT 65872 b
$50,000,000.
(10) In the event of a decrease in the amount of the
appropriation for this Section in any fiscal year after
implementation of this Section, the Organizational Units
receiving Tier 1 and Tier 2 funding, as determined under
paragraph (3) of this subsection (g), shall be held
harmless by establishing a Base Funding Guarantee equal to
the per pupil kindergarten through grade 12 funding
received in accordance with this Section in the prior
fiscal year. Reductions shall be made to the Base Funding
Minimum of Organizational Units in Tier 3 and Tier 4 on a
per pupil basis equivalent to the total number of the ASE
in Tier 3-funded and Tier 4-funded Organizational Units
divided by the total reduction in State funding. The Base
Funding Minimum as reduced shall continue to be applied to
Tier 3 and Tier 4 Organizational Units and adjusted by the
relative formula when increases in appropriations for this
Section resume. In no event may State funding reductions to
Organizational Units in Tier 3 or Tier 4 exceed an amount
that would be less than the Base Funding Minimum
established in the first year of implementation of this
Section. If additional reductions are required, all school
districts shall receive a reduction by a per pupil amount
equal to the aggregate additional appropriation reduction
divided by the total ASE of all Organizational Units.
(11) The State Superintendent shall make minor

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adjustments to the distribution formula set forth in this
subsection (g) to account for the rounding of percentages
to the nearest tenth of a percentage and dollar amounts to
the nearest whole dollar.
(12) Beginning with the 2020-2021 school year, the
State Board shall, if a student enrolls in a nonpublic
school after being enrolled in a resident school district,
distribute to the nonpublic school all funds calculated
under this Section, on a per pupil basis, that otherwise
would have been provided to the resident school district if
the student were still enrolled in the resident school
district. If a student enrolls in a nonpublic school during
the middle of a school year, the State Board shall prorate
the amount the nonpublic school receives under this
paragraph (12) based on the length of time the student is
enrolled in the nonpublic school for the remainder of the
school year.
(h) State Superintendent administration of funding and
district submission requirements.
(1) The State Superintendent shall, in accordance with
appropriations made by the General Assembly, meet the
funding obligations created under this Section.
(2) The State Superintendent shall calculate the
Adequacy Target for each Organizational Unit and Net State
Contribution Target for each Organizational Unit under
this Section. No Evidence-Based Funding shall be

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distributed within an Organizational Unit without the
approval of the unit's school board.
(3) Annually, the State Superintendent shall calculate
and report to each Organizational Unit the unit's aggregate
financial adequacy amount, which shall be the sum of the
Adequacy Target for each Organizational Unit. The State
Superintendent shall calculate and report separately for
each Organizational Unit the unit's total State funds
allocated for its students with disabilities. The State
Superintendent shall calculate and report separately for
each Organizational Unit the amount of funding and
applicable FTE calculated for each Essential Element of the
unit's Adequacy Target.
(4) Annually, the State Superintendent shall calculate
and report to each Organizational Unit the amount the unit
must expend on special education and bilingual education
and computer technology and equipment for Organizational
Units assigned to Tier 1 or Tier 2 that received an
additional $285.50 per student computer technology and
equipment investment grant to their Adequacy Target
pursuant to the unit's Base Funding Minimum, Special
Education Allocation, Bilingual Education Allocation, and
computer technology and equipment investment allocation.
(5) Moneys distributed under this Section shall be
calculated on a school year basis, but paid on a fiscal
year basis, with payments beginning in August and extending

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through June. Unless otherwise provided, the moneys
appropriated for each fiscal year shall be distributed in
22 equal payments at least 2 times monthly to each
Organizational Unit. If moneys appropriated for any fiscal
year are distributed other than monthly, the distribution
shall be on the same basis for each Organizational Unit.
(6) Any school district that fails, for any given
school year, to maintain school as required by law or to
maintain a recognized school is not eligible to receive
Evidence-Based Funding. In case of non-recognition of one
or more attendance centers in a school district otherwise
operating recognized schools, the claim of the district
shall be reduced in the proportion that the enrollment in
the attendance center or centers bears to the enrollment of
the school district. "Recognized school" means any public
school that meets the standards for recognition by the
State Board. A school district or attendance center not
having recognition status at the end of a school term is
entitled to receive State aid payments due upon a legal
claim that was filed while it was recognized.
(7) School district claims filed under this Section are
subject to Sections 18-9 and 18-12 of this Code, except as
otherwise provided in this Section.
(8) Each fiscal year, the State Superintendent shall
calculate for each Organizational Unit an amount of its
Base Funding Minimum and Evidence-Based Funding that shall

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be deemed attributable to the provision of special
educational facilities and services, as defined in Section
14-1.08 of this Code, in a manner that ensures compliance
with maintenance of State financial support requirements
under the federal Individuals with Disabilities Education
Act. An Organizational Unit must use such funds only for
the provision of special educational facilities and
services, as defined in Section 14-1.08 of this Code, and
must comply with any expenditure verification procedures
adopted by the State Board.
(9) All Organizational Units in this State must submit
annual spending plans by the end of September of each year
to the State Board as part of the annual budget process,
which shall describe how each Organizational Unit will
utilize the Base Funding Minimum Funding and
Evidence-Based Funding funding it receives from this State
under this Section with specific identification of the
intended utilization of Low-Income, English learner, and
special education resources. Additionally, the annual
spending plans of each Organizational Unit shall describe
how the Organizational Unit expects to achieve student
growth and how the Organizational Unit will achieve State
education goals, as defined by the State Board. The State
Superintendent may, from time to time, identify additional
requisites for Organizational Units to satisfy when
compiling the annual spending plans required under this

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subsection (h). The format and scope of annual spending
plans shall be developed by the State Superintendent and
the State Board of Education. School districts that serve
students under Article 14C of this Code shall continue to
submit information as required under Section 14C-12 of this
Code.
(10) No later than January 1, 2018, the State
Superintendent shall develop a 5-year strategic plan for
all Organizational Units to help in planning for adequacy
funding under this Section. The State Superintendent shall
submit the plan to the Governor and the General Assembly,
as provided in Section 3.1 of the General Assembly
Organization Act. The plan shall include recommendations
for:
(A) a framework for collaborative, professional,
innovative, and 21st century learning environments
using the Evidence-Based Funding model;
(B) ways to prepare and support this State's
educators for successful instructional careers;
(C) application and enhancement of the current
financial accountability measures, the approved State
plan to comply with the federal Every Student Succeeds
Act, and the Illinois Balanced Accountability Measures
in relation to student growth and elements of the
Evidence-Based Funding model; and
(D) implementation of an effective school adequacy

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funding system based on projected and recommended
funding levels from the General Assembly.
(11) On an annual basis, the State Superintendent must
recalibrate all of the following per pupil elements of the
Adequacy Target and applied to the formulas, based on the
study of average expenses and as reported in the most
recent annual financial report:
(A) Gifted under subparagraph (M) of paragraph (2)
of subsection (b).
(B) Instructional materials under subparagraph (O)
of paragraph (2) of subsection (b).
(C) Assessment under subparagraph (P) of paragraph
(2) of subsection (b).
(D) Student activities under subparagraph (R) of
paragraph (2) of subsection (b).
(E) Maintenance and operations under subparagraph
(S) of paragraph (2) of subsection (b).
(F) Central office under subparagraph (T) of
paragraph (2) of subsection (b).
(i) Professional Review Panel.
(1) A Professional Review Panel is created to study and
review topics related to the implementation and effect of
Evidence-Based Funding, as assigned by a joint resolution
or Public Act of the General Assembly or a motion passed by
the State Board of Education. The Panel must provide
recommendations to and serve the Governor, the General

HB4585 - 64 - LRB101 16491 NHT 65872 b
Assembly, and the State Board. The State Superintendent or
his or her designee must serve as a voting member and
chairperson of the Panel. The State Superintendent must
appoint a vice chairperson from the membership of the
Panel. The Panel must advance recommendations based on a
three-fifths majority vote of Panel panel members present
and voting. A minority opinion may also accompany any
recommendation of the Panel. The Panel shall be appointed
by the State Superintendent, except as otherwise provided
in paragraph (2) of this subsection (i) and include the
following members:
(A) Two appointees that represent district
superintendents, recommended by a statewide
organization that represents district superintendents.
(B) Two appointees that represent school boards,
recommended by a statewide organization that
represents school boards.
(C) Two appointees from districts that represent
school business officials, recommended by a statewide
organization that represents school business
officials.
(D) Two appointees that represent school
principals, recommended by a statewide organization
that represents school principals.
(E) Two appointees that represent teachers,
recommended by a statewide organization that

HB4585 - 65 - LRB101 16491 NHT 65872 b
represents teachers.
(F) Two appointees that represent teachers,
recommended by another statewide organization that
represents teachers.
(G) Two appointees that represent regional
superintendents of schools, recommended by
organizations that represent regional superintendents.
(H) Two independent experts selected solely by the
State Superintendent.
(I) Two independent experts recommended by public
universities in this State.
(J) One member recommended by a statewide
organization that represents parents.
(K) Two representatives recommended by collective
impact organizations that represent major metropolitan
areas or geographic areas in Illinois.
(L) One member from a statewide organization
focused on research-based education policy to support
a school system that prepares all students for college,
a career, and democratic citizenship.
(M) One representative from a school district
organized under Article 34 of this Code.
The State Superintendent shall ensure that the
membership of the Panel includes representatives from
school districts and communities reflecting the
geographic, socio-economic, racial, and ethnic diversity

HB4585 - 66 - LRB101 16491 NHT 65872 b
of this State. The State Superintendent shall additionally
ensure that the membership of the Panel includes
representatives with expertise in bilingual education and
special education. Staff from the State Board shall staff
the Panel.
(2) In addition to those Panel members appointed by the
State Superintendent, 4 members of the General Assembly
shall be appointed as follows: one member of the House of
Representatives appointed by the Speaker of the House of
Representatives, one member of the Senate appointed by the
President of the Senate, one member of the House of
Representatives appointed by the Minority Leader of the
House of Representatives, and one member of the Senate
appointed by the Minority Leader of the Senate. There shall
be one additional member appointed by the Governor. All
members appointed by legislative leaders or the Governor
shall be non-voting, ex officio members.
(3) The Panel must study topics at the direction of the
General Assembly or State Board of Education, as provided
under paragraph (1). The Panel may also study the following
topics at the direction of the chairperson: (4)
(A) The format and scope of annual spending plans
referenced in paragraph (9) of subsection (h) of this
Section.
(B) The Comparable Wage Index under this Section.
(C) Maintenance and operations, including capital

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maintenance and construction costs.
(D) "At-risk student" definition.
(E) Benefits.
(F) Technology.
(G) Local Capacity Target.
(H) Funding for Alternative Schools, Laboratory
Schools, safe schools, and alternative learning
opportunities programs.
(I) Funding for college and career acceleration
strategies.
(J) Special education investments.
(K) Early childhood investments, in collaboration
with the Illinois Early Learning Council.
(4) (Blank).
(5) Within 5 years after the implementation of this
Section, and every 5 years thereafter, the Panel shall
complete an evaluative study of the entire Evidence-Based
Funding model, including an assessment of whether or not
the formula is achieving State goals. The Panel shall
report to the State Board, the General Assembly, and the
Governor on the findings of the study.
(6) (Blank).
(j) References. Beginning July 1, 2017, references in other
laws to general State aid funds or calculations under Section
18-8.05 of this Code (now repealed) shall be deemed to be
references to evidence-based model formula funds or

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calculations under this Section.
(Source: P.A. 100-465, eff. 8-31-17; 100-578, eff. 1-31-18;
100-582, eff. 3-23-18; 101-10, eff. 6-5-19; 101-17, eff.
6-14-19; revised 7-1-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.