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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1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The School Code is amended by changing Section
518-8.15 as follows:
6 (105 ILCS 5/18-8.15)
7 Sec. 18-8.15. Evidence-Based Funding Evidence-based
8funding for student success for the 2017-2018 and subsequent
9school years.
10 (a) General provisions.
11 (1) The purpose of this Section is to ensure that, by
12 June 30, 2027 and beyond, this State has a kindergarten
13 through grade 12 public education system with the capacity
14 to ensure the educational development of all persons to the
15 limits of their capacities in accordance with Section 1 of
16 Article X of the Constitution of the State of Illinois. To
17 accomplish that objective, this Section creates a method of
18 funding public education that is evidence-based; is
19 sufficient to ensure every student receives a meaningful
20 opportunity to learn irrespective of race, ethnicity,
21 sexual orientation, gender, or community-income level; and
22 is sustainable and predictable. When fully funded under
23 this Section, every school shall have the resources, based

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

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

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1 this Section may apply those funds to any fund so received
2 for which that Organizational Unit is authorized to make
3 expenditures by law.
4 (4) As used in this Section, the following terms shall
5 have the meanings ascribed in this paragraph (4):
6 "Adequacy Target" is defined in paragraph (1) of
7 subsection (b) of this Section.
8 "Adjusted EAV" is defined in paragraph (4) of
9 subsection (d) of this Section.
10 "Adjusted Local Capacity Target" is defined in
11 paragraph (3) of subsection (c) of this Section.
12 "Adjusted Operating Tax Rate" means a tax rate for all
13 Organizational Units, for which the State Superintendent
14 shall calculate and subtract for the Operating Tax Rate a
15 transportation rate based on total expenses for
16 transportation services under this Code, as reported on the
17 most recent Annual Financial Report in Pupil
18 Transportation Services, function 2550 in both the
19 Education and Transportation funds and functions 4110 and
20 4120 in the Transportation fund, less any corresponding
21 fiscal year State of Illinois scheduled payments excluding
22 net adjustments for prior years for regular, vocational, or
23 special education transportation reimbursement pursuant to
24 Section 29-5 or subsection (b) of Section 14-13.01 of this
25 Code divided by the Adjusted EAV. If an Organizational
26 Unit's corresponding fiscal year State of Illinois

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

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1 provided by the regular school program. All students
2 included in an Organizational Unit's Low-Income Count, as
3 well as all English learner and disabled students attending
4 the Organizational Unit, shall be considered at-risk
5 students under this Section.
6 "Average Student Enrollment" or "ASE" for fiscal year
7 2018 means, for an Organizational Unit, the greater of the
8 average number of students (grades K through 12) reported
9 to the State Board as enrolled in the Organizational Unit
10 on October 1 in the immediately preceding school year, plus
11 the pre-kindergarten students who receive special
12 education services of 2 or more hours a day as reported to
13 the State Board on December 1 in the immediately preceding
14 school year, or the average number of students (grades K
15 through 12) reported to the State Board as enrolled in the
16 Organizational Unit on October 1, plus the
17 pre-kindergarten students who receive special education
18 services of 2 or more hours a day as reported to the State
19 Board on December 1, for each of the immediately preceding
20 3 school years. For fiscal year 2019 and each subsequent
21 fiscal year, "Average Student Enrollment" or "ASE" means,
22 for an Organizational Unit, the greater of the average
23 number of students (grades K through 12) reported to the
24 State Board as enrolled in the Organizational Unit on
25 October 1 and March 1 in the immediately preceding school
26 year, plus the pre-kindergarten students who receive

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1 special education services as reported to the State Board
2 on October 1 and March 1 in the immediately preceding
3 school year, or the average number of students (grades K
4 through 12) reported to the State Board as enrolled in the
5 Organizational Unit on October 1 and March 1, plus the
6 pre-kindergarten students who receive special education
7 services as reported to the State Board on October 1 and
8 March 1, for each of the immediately preceding 3 school
9 years. For the purposes of this definition, "enrolled in
10 the Organizational Unit" means the number of students
11 reported to the State Board who are enrolled in schools
12 within the Organizational Unit that the student attends or
13 would attend if not placed or transferred to another school
14 or program to receive needed services. For the purposes of
15 calculating "ASE", all students, grades K through 12,
16 excluding those attending kindergarten for a half day and
17 students attending an alternative education program
18 operated by a regional office of education or intermediate
19 service center, shall be counted as 1.0. All students
20 attending kindergarten for a half day shall be counted as
21 0.5, unless in 2017 by June 15 or by March 1 in subsequent
22 years, the school district reports to the State Board of
23 Education the intent to implement full-day kindergarten
24 district-wide for all students, then all students
25 attending kindergarten shall be counted as 1.0. Special
26 education pre-kindergarten students shall be counted as

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1 0.5 each. If the State Board does not collect or has not
2 collected both an October 1 and March 1 enrollment count by
3 grade or a December 1 collection of special education
4 pre-kindergarten students as of August 31, 2017 (the
5 effective date of Public Act 100-465) this amendatory Act
6 of the 100th General Assembly, it shall establish such
7 collection for all future years. For any year in which
8 where a count by grade level was collected only once, that
9 count shall be used as the single count available for
10 computing a 3-year average ASE. Funding for programs
11 operated by a regional office of education or an
12 intermediate service center must be calculated using the
13 Evidence-Based Funding evidence-based funding formula
14 under this Section for the 2019-2020 school year and each
15 subsequent school year until separate adequacy formulas
16 are developed and adopted for each type of program. ASE for
17 a program operated by a regional office of education or an
18 intermediate service center must be determined by the March
19 1 enrollment for the program. For the 2019-2020 school
20 year, the ASE used in the calculation must be the
21 first-year ASE and, in that year only, the assignment of
22 students served by a regional office of education or
23 intermediate service center shall not result in a reduction
24 of the March enrollment for any school district. For the
25 2020-2021 school year, the ASE must be the greater of the
26 current-year ASE or the 2-year average ASE. Beginning with

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1 the 2021-2022 school year, the ASE must be the greater of
2 the current-year ASE or the 3-year average ASE. School
3 districts shall submit the data for the ASE calculation to
4 the State Board within 45 days of the dates required in
5 this Section for submission of enrollment data in order for
6 it to be included in the ASE calculation. For fiscal year
7 2018 only, the ASE calculation shall include only
8 enrollment taken on October 1.
9 "Base Funding Guarantee" is defined in paragraph (10)
10 of subsection (g) of this Section.
11 "Base Funding Minimum" is defined in subsection (e) of
12 this Section.
13 "Base Tax Year" means the property tax levy year used
14 to calculate the Budget Year allocation of primary State
15 aid.
16 "Base Tax Year's Extension" means the product of the
17 equalized assessed valuation utilized by the county clerk
18 in the Base Tax Year multiplied by the limiting rate as
19 calculated by the county clerk and defined in PTELL.
20 "Bilingual Education Allocation" means the amount of
21 an Organizational Unit's final Adequacy Target
22 attributable to bilingual education divided by the
23 Organizational Unit's final Adequacy Target, the product
24 of which shall be multiplied by the amount of new funding
25 received pursuant to this Section. An Organizational
26 Unit's final Adequacy Target attributable to bilingual

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

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

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

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

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

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

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

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

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

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1 the Organizational Unit CWI as calculated in accordance
2 with this paragraph is less than 0.9, the Organizational
3 Unit CWI shall be increased to 0.9. Each county's current
4 CWI value shall be adjusted based on the CWI value of that
5 county's neighboring Illinois counties, to create a
6 "weighted adjusted index value". This shall be calculated
7 by summing the CWI values of all of a county's adjacent
8 Illinois counties and dividing by the number of adjacent
9 Illinois counties, then taking the weighted value of the
10 original county's CWI value and the adjacent Illinois
11 county average. To calculate this weighted value, if the
12 number of adjacent Illinois counties is greater than 2, the
13 original county's CWI value will be weighted at 0.25 and
14 the adjacent Illinois county average will be weighted at
15 0.75. If the number of adjacent Illinois counties is 2, the
16 original county's CWI value will be weighted at 0.33 and
17 the adjacent Illinois county average will be weighted at
18 0.66. The greater of the county's current CWI value and its
19 weighted adjusted index value shall be used as the
20 Organizational Unit CWI.
21 "Preceding Tax Year" means the property tax levy year
22 immediately preceding the Base Tax Year.
23 "Preceding Tax Year's Extension" means the product of
24 the equalized assessed valuation utilized by the county
25 clerk in the Preceding Tax Year multiplied by the Operating
26 Tax Rate.

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

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

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

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

HB4585- 24 -LRB101 16491 NHT 65872 b
1 Funding", "Tier 3 Aggregate Funding", and "Tier 4 Aggregate
2 Funding" are defined in paragraph (1) of subsection (g).
3 (b) Adequacy Target calculation.
4 (1) Each Organizational Unit's Adequacy Target is the
5 sum of the Organizational Unit's cost of providing
6 Essential Elements, as calculated in accordance with this
7 subsection (b), with the salary amounts in the Essential
8 Elements multiplied by a Regionalization Factor calculated
9 pursuant to paragraph (3) of this subsection (b).
10 (2) The Essential Elements are attributable on a pro
11 rata basis related to defined subgroups of the ASE of each
12 Organizational Unit as specified in this paragraph (2),
13 with investments and FTE positions pro rata funded based on
14 ASE counts in excess or less than the thresholds set forth
15 in this paragraph (2). The method for calculating
16 attributable pro rata costs and the defined subgroups
17 thereto are as follows:
18 (A) Core class size investments. Each
19 Organizational Unit shall receive the funding required
20 to support that number of FTE core teacher positions as
21 is needed to keep the respective class sizes of the
22 Organizational Unit to the following maximum numbers:
23 (i) For grades kindergarten through 3, the
24 Organizational Unit shall receive funding required
25 to support one FTE core teacher position for every
26 15 Low-Income Count students in those grades and

HB4585- 25 -LRB101 16491 NHT 65872 b
1 one FTE core teacher position for every 20
2 non-Low-Income Count students in those grades.
3 (ii) For grades 4 through 12, the
4 Organizational Unit shall receive funding required
5 to support one FTE core teacher position for every
6 20 Low-Income Count students in those grades and
7 one FTE core teacher position for every 25
8 non-Low-Income Count students in those grades.
9 The number of non-Low-Income Count students in a
10 grade shall be determined by subtracting the
11 Low-Income students in that grade from the ASE of the
12 Organizational Unit for that grade.
13 (B) Specialist teacher investments. Each
14 Organizational Unit shall receive the funding needed
15 to cover that number of FTE specialist teacher
16 positions that correspond to the following
17 percentages:
18 (i) if the Organizational Unit operates an
19 elementary or middle school, then 20.00% of the
20 number of the Organizational Unit's core teachers,
21 as determined under subparagraph (A) of this
22 paragraph (2); and
23 (ii) if such Organizational Unit operates a
24 high school, then 33.33% of the number of the
25 Organizational Unit's core teachers.
26 (C) Instructional facilitator investments. Each

HB4585- 26 -LRB101 16491 NHT 65872 b
1 Organizational Unit shall receive the funding needed
2 to cover one FTE instructional facilitator position
3 for every 200 combined ASE of pre-kindergarten
4 children with disabilities and all kindergarten
5 through grade 12 students of the Organizational Unit.
6 (D) Core intervention teacher (tutor) investments.
7 Each Organizational Unit shall receive the funding
8 needed to cover one FTE teacher position for each
9 prototypical elementary, middle, and high school.
10 (E) Substitute teacher investments. Each
11 Organizational Unit shall receive the funding needed
12 to cover substitute teacher costs that is equal to
13 5.70% of the minimum pupil attendance days required
14 under Section 10-19 of this Code for all full-time
15 equivalent core, specialist, and intervention
16 teachers, school nurses, special education teachers
17 and instructional assistants, instructional
18 facilitators, and summer school and extended day
19 extended-day teacher positions, as determined under
20 this paragraph (2), at a salary rate of 33.33% of the
21 average salary for grade K through 12 teachers and
22 33.33% of the average salary of each instructional
23 assistant position.
24 (F) Core guidance counselor investments. Each
25 Organizational Unit shall receive the funding needed
26 to cover one FTE guidance counselor for each 450

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1 combined ASE of pre-kindergarten children with
2 disabilities and all kindergarten through grade 5
3 students, plus one FTE guidance counselor for each 250
4 grades 6 through 8 ASE middle school students, plus one
5 FTE guidance counselor for each 250 grades 9 through 12
6 ASE high school students.
7 (G) Nurse investments. Each Organizational Unit
8 shall receive the funding needed to cover one FTE nurse
9 for each 750 combined ASE of pre-kindergarten children
10 with disabilities and all kindergarten through grade
11 12 students across all grade levels it serves.
12 (H) Supervisory aide investments. Each
13 Organizational Unit shall receive the funding needed
14 to cover one FTE for each 225 combined ASE of
15 pre-kindergarten children with disabilities and all
16 kindergarten through grade 5 students, plus one FTE for
17 each 225 ASE middle school students, plus one FTE for
18 each 200 ASE high school students.
19 (I) Librarian investments. Each Organizational
20 Unit shall receive the funding needed to cover one FTE
21 librarian for each prototypical elementary school,
22 middle school, and high school and one FTE aide or
23 media technician for every 300 combined ASE of
24 pre-kindergarten children with disabilities and all
25 kindergarten through grade 12 students.
26 (J) Principal investments. Each Organizational

HB4585- 28 -LRB101 16491 NHT 65872 b
1 Unit shall receive the funding needed to cover one FTE
2 principal position for each prototypical elementary
3 school, plus one FTE principal position for each
4 prototypical middle school, plus one FTE principal
5 position for each prototypical high school.
6 (K) Assistant principal investments. Each
7 Organizational Unit shall receive the funding needed
8 to cover one FTE assistant principal position for each
9 prototypical elementary school, plus one FTE assistant
10 principal position for each prototypical middle
11 school, plus one FTE assistant principal position for
12 each prototypical high school.
13 (L) School site staff investments. Each
14 Organizational Unit shall receive the funding needed
15 for one FTE position for each 225 ASE of
16 pre-kindergarten children with disabilities and all
17 kindergarten through grade 5 students, plus one FTE
18 position for each 225 ASE middle school students, plus
19 one FTE position for each 200 ASE high school students.
20 (M) Gifted investments. Each Organizational Unit
21 shall receive $40 per kindergarten through grade 12
22 ASE.
23 (N) Professional development investments. Each
24 Organizational Unit shall receive $125 per student of
25 the combined ASE of pre-kindergarten children with
26 disabilities and all kindergarten through grade 12

HB4585- 29 -LRB101 16491 NHT 65872 b
1 students for trainers and other professional
2 development-related expenses for supplies and
3 materials.
4 (O) Instructional material investments. Each
5 Organizational Unit shall receive $190 per student of
6 the combined ASE of pre-kindergarten children with
7 disabilities and all kindergarten through grade 12
8 students to cover instructional material costs.
9 (P) Assessment investments. Each Organizational
10 Unit shall receive $25 per student of the combined ASE
11 of pre-kindergarten children with disabilities and all
12 kindergarten through grade 12 students student to
13 cover assessment costs.
14 (Q) Computer technology and equipment investments.
15 Each Organizational Unit shall receive $285.50 per
16 student of the combined ASE of pre-kindergarten
17 children with disabilities and all kindergarten
18 through grade 12 students to cover computer technology
19 and equipment costs. For the 2018-2019 school year and
20 subsequent school years, Organizational Units assigned
21 to Tier 1 and Tier 2 in the prior school year shall
22 receive an additional $285.50 per student of the
23 combined ASE of pre-kindergarten children with
24 disabilities and all kindergarten through grade 12
25 students to cover computer technology and equipment
26 costs in the Organizational Organization Unit's

HB4585- 30 -LRB101 16491 NHT 65872 b
1 Adequacy Target. The State Board may establish
2 additional requirements for Organizational Unit
3 expenditures of funds received pursuant to this
4 subparagraph (Q), including a requirement that funds
5 received pursuant to this subparagraph (Q) may be used
6 only for serving the technology needs of the district.
7 It is the intent of Public Act 100-465 this amendatory
8 Act of the 100th General Assembly that all Tier 1 and
9 Tier 2 districts receive the addition to their Adequacy
10 Target in the following year, subject to compliance
11 with the requirements of the State Board.
12 (R) Student activities investments. Each
13 Organizational Unit shall receive the following
14 funding amounts to cover student activities: $100 per
15 kindergarten through grade 5 ASE student in elementary
16 school, plus $200 per ASE student in middle school,
17 plus $675 per ASE student in high school.
18 (S) Maintenance and operations investments. Each
19 Organizational Unit shall receive $1,038 per student
20 of the combined ASE of pre-kindergarten children with
21 disabilities and all kindergarten through grade 12
22 students for day-to-day maintenance and operations
23 expenditures, including salary, supplies, and
24 materials, as well as purchased services, but
25 excluding employee benefits. The proportion of salary
26 for the application of a Regionalization Factor and the

HB4585- 31 -LRB101 16491 NHT 65872 b
1 calculation of benefits is equal to $352.92.
2 (T) Central office investments. Each
3 Organizational Unit shall receive $742 per student of
4 the combined ASE of pre-kindergarten children with
5 disabilities and all kindergarten through grade 12
6 students to cover central office operations, including
7 administrators and classified personnel charged with
8 managing the instructional programs, business and
9 operations of the school district, and security
10 personnel. The proportion of salary for the
11 application of a Regionalization Factor and the
12 calculation of benefits is equal to $368.48.
13 (U) Employee benefit investments. Each
14 Organizational Unit shall receive 30% of the total of
15 all salary-calculated elements of the Adequacy Target,
16 excluding substitute teachers and student activities
17 investments, to cover benefit costs. For central
18 office and maintenance and operations investments, the
19 benefit calculation shall be based upon the salary
20 proportion of each investment. If at any time the
21 responsibility for funding the employer normal cost of
22 teacher pensions is assigned to school districts, then
23 that amount certified by the Teachers' Retirement
24 System of the State of Illinois to be paid by the
25 Organizational Unit for the preceding school year
26 shall be added to the benefit investment. For any

HB4585- 32 -LRB101 16491 NHT 65872 b
1 fiscal year in which a school district organized under
2 Article 34 of this Code is responsible for paying the
3 employer normal cost of teacher pensions, then that
4 amount of its employer normal cost plus the amount for
5 retiree health insurance as certified by the Public
6 School Teachers' Pension and Retirement Fund of
7 Chicago to be paid by the school district for the
8 preceding school year that is statutorily required to
9 cover employer normal costs and the amount for retiree
10 health insurance shall be added to the 30% specified in
11 this subparagraph (U). The Teachers' Retirement System
12 of the State of Illinois and the Public School
13 Teachers' Pension and Retirement Fund of Chicago shall
14 submit such information as the State Superintendent
15 may require for the calculations set forth in this
16 subparagraph (U).
17 (V) Additional investments in low-income students.
18 In addition to and not in lieu of all other funding
19 under this paragraph (2), each Organizational Unit
20 shall receive funding based on the average teacher
21 salary for grades K through 12 to cover the costs of:
22 (i) one FTE intervention teacher (tutor)
23 position for every 125 Low-Income Count students;
24 (ii) one FTE pupil support staff position for
25 every 125 Low-Income Count students;
26 (iii) one FTE extended day teacher position

HB4585- 33 -LRB101 16491 NHT 65872 b
1 for every 120 Low-Income Count students; and
2 (iv) one FTE summer school teacher position
3 for every 120 Low-Income Count students.
4 (W) Additional investments in English learner
5 students. In addition to and not in lieu of all other
6 funding under this paragraph (2), each Organizational
7 Unit shall receive funding based on the average teacher
8 salary for grades K through 12 to cover the costs of:
9 (i) one FTE intervention teacher (tutor)
10 position for every 125 English learner students;
11 (ii) one FTE pupil support staff position for
12 every 125 English learner students;
13 (iii) one FTE extended day teacher position
14 for every 120 English learner students;
15 (iv) one FTE summer school teacher position
16 for every 120 English learner students; and
17 (v) one FTE core teacher position for every 100
18 English learner students.
19 (X) Special education investments. Each
20 Organizational Unit shall receive funding based on the
21 average teacher salary for grades K through 12 to cover
22 special education as follows:
23 (i) one FTE teacher position for every 141
24 combined ASE of pre-kindergarten children with
25 disabilities and all kindergarten through grade 12
26 students;

HB4585- 34 -LRB101 16491 NHT 65872 b
1 (ii) one FTE instructional assistant for every
2 141 combined ASE of pre-kindergarten children with
3 disabilities and all kindergarten through grade 12
4 students; and
5 (iii) one FTE psychologist position for every
6 1,000 combined ASE of pre-kindergarten children
7 with disabilities and all kindergarten through
8 grade 12 students.
9 (3) For calculating the salaries included within the
10 Essential Elements, the State Superintendent shall
11 annually calculate average salaries to the nearest dollar
12 using the employment information system data maintained by
13 the State Board, limited to public schools only and
14 excluding special education and vocational cooperatives,
15 schools operated by the Department of Juvenile Justice, and
16 charter schools, for the following positions:
17 (A) Teacher for grades K through 8.
18 (B) Teacher for grades 9 through 12.
19 (C) Teacher for grades K through 12.
20 (D) Guidance counselor for grades K through 8.
21 (E) Guidance counselor for grades 9 through 12.
22 (F) Guidance counselor for grades K through 12.
23 (G) Social worker.
24 (H) Psychologist.
25 (I) Librarian.
26 (J) Nurse.

HB4585- 35 -LRB101 16491 NHT 65872 b
1 (K) Principal.
2 (L) Assistant principal.
3 For the purposes of this paragraph (3), "teacher"
4 includes core teachers, specialist and elective teachers,
5 instructional facilitators, tutors, special education
6 teachers, pupil support staff teachers, English learner
7 teachers, extended day extended-day teachers, and summer
8 school teachers. Where specific grade data is not required
9 for the Essential Elements, the average salary for
10 corresponding positions shall apply. For substitute
11 teachers, the average teacher salary for grades K through
12 12 shall apply.
13 For calculating the salaries included within the
14 Essential Elements for positions not included within EIS
15 Data, the following salaries shall be used in the first
16 year of implementation of Evidence-Based Funding:
17 (i) school site staff, $30,000; and
18 (ii) non-instructional assistant, instructional
19 assistant, library aide, library media tech, or
20 supervisory aide: $25,000.
21 In the second and subsequent years of implementation of
22 Evidence-Based Funding, the amounts in items (i) and (ii)
23 of this paragraph (3) shall annually increase by the ECI.
24 The salary amounts for the Essential Elements
25 determined pursuant to subparagraphs (A) through (L), (S)
26 and (T), and (V) through (X) of paragraph (2) of subsection

HB4585- 36 -LRB101 16491 NHT 65872 b
1 (b) of this Section shall be multiplied by a
2 Regionalization Factor.
3 (c) Local Capacity capacity calculation.
4 (1) Each Organizational Unit's Local Capacity
5 represents an amount of funding it is assumed to contribute
6 toward its Adequacy Target for purposes of the
7 Evidence-Based Funding formula calculation. "Local
8 Capacity" means either (i) the Organizational Unit's Local
9 Capacity Target as calculated in accordance with paragraph
10 (2) of this subsection (c) if its Real Receipts are equal
11 to or less than its Local Capacity Target or (ii) the
12 Organizational Unit's Adjusted Local Capacity, as
13 calculated in accordance with paragraph (3) of this
14 subsection (c) if Real Receipts are more than its Local
15 Capacity Target.
16 (2) "Local Capacity Target" means, for an
17 Organizational Unit, that dollar amount that is obtained by
18 multiplying its Adequacy Target by its Local Capacity
19 Ratio.
20 (A) An Organizational Unit's Local Capacity
21 Percentage is the conversion of the Organizational
22 Unit's Local Capacity Ratio, as such ratio is
23 determined in accordance with subparagraph (B) of this
24 paragraph (2), into a cumulative distribution
25 resulting in a percentile ranking to determine each
26 Organizational Unit's relative position to all other

HB4585- 37 -LRB101 16491 NHT 65872 b
1 Organizational Units in this State. The calculation of
2 Local Capacity Percentage is described in subparagraph
3 (C) of this paragraph (2).
4 (B) An Organizational Unit's Local Capacity Ratio
5 in a given year is the percentage obtained by dividing
6 its Adjusted EAV or PTELL EAV, whichever is less, by
7 its Adequacy Target, with the resulting ratio further
8 adjusted as follows:
9 (i) for Organizational Units serving grades
10 kindergarten through 12 and Hybrid Districts, no
11 further adjustments shall be made;
12 (ii) for Organizational Units serving grades
13 kindergarten through 8, the ratio shall be
14 multiplied by 9/13;
15 (iii) for Organizational Units serving grades
16 9 through 12, the Local Capacity Ratio shall be
17 multiplied by 4/13; and
18 (iv) for an Organizational Unit with a
19 different grade configuration than those specified
20 in items (i) through (iii) of this subparagraph
21 (B), the State Superintendent shall determine a
22 comparable adjustment based on the grades served.
23 (C) The Local Capacity Percentage is equal to the
24 percentile ranking of the district. Local Capacity
25 Percentage converts each Organizational Unit's Local
26 Capacity Ratio to a cumulative distribution resulting

HB4585- 38 -LRB101 16491 NHT 65872 b
1 in a percentile ranking to determine each
2 Organizational Unit's relative position to all other
3 Organizational Units in this State. The Local Capacity
4 Percentage cumulative distribution resulting in a
5 percentile ranking for each Organizational Unit shall
6 be calculated using the standard normal distribution
7 of the score in relation to the weighted mean and
8 weighted standard deviation and Local Capacity Ratios
9 of all Organizational Units. If the value assigned to
10 any Organizational Unit is in excess of 90%, the value
11 shall be adjusted to 90%. For Laboratory Schools, the
12 Local Capacity Percentage shall be set at 10% in
13 recognition of the absence of EAV and resources from
14 the public university that are allocated to the
15 Laboratory School. For programs operated by a regional
16 office of education or an intermediate service center,
17 the Local Capacity Percentage must be set at 10% in
18 recognition of the absence of EAV and resources from
19 school districts that are allocated to the regional
20 office of education or intermediate service center.
21 The weighted mean for the Local Capacity Percentage
22 shall be determined by multiplying each Organizational
23 Unit's Local Capacity Ratio times the ASE for the unit
24 creating a weighted value, summing the weighted values
25 of all Organizational Units, and dividing by the total
26 ASE of all Organizational Units. The weighted standard

HB4585- 39 -LRB101 16491 NHT 65872 b
1 deviation shall be determined by taking the square root
2 of the weighted variance of all Organizational Units'
3 Local Capacity Ratio, where the variance is calculated
4 by squaring the difference between each unit's Local
5 Capacity Ratio and the weighted mean, then multiplying
6 the variance for each unit times the ASE for the unit
7 to create a weighted variance for each unit, then
8 summing all units' weighted variance and dividing by
9 the total ASE of all units.
10 (D) For any Organizational Unit, the
11 Organizational Unit's Adjusted Local Capacity Target
12 shall be reduced by either (i) the school board's
13 remaining contribution pursuant to paragraph (ii) of
14 subsection (b-4) of Section 16-158 of the Illinois
15 Pension Code in a given year, or (ii) the board of
16 education's remaining contribution pursuant to
17 paragraph (iv) of subsection (b) of Section 17-129 of
18 the Illinois Pension Code absent the employer normal
19 cost portion of the required contribution and amount
20 allowed pursuant to subdivision (3) of Section
21 17-142.1 of the Illinois Pension Code in a given year.
22 In the preceding sentence, item (i) shall be certified
23 to the State Board of Education by the Teachers'
24 Retirement System of the State of Illinois and item
25 (ii) shall be certified to the State Board of Education
26 by the Public School Teachers' Pension and Retirement

HB4585- 40 -LRB101 16491 NHT 65872 b
1 Fund of the City of Chicago.
2 (3) If an Organizational Unit's Real Receipts are more
3 than its Local Capacity Target, then its Local Capacity
4 shall equal an Adjusted Local Capacity Target as calculated
5 in accordance with this paragraph (3). The Adjusted Local
6 Capacity Target is calculated as the sum of the
7 Organizational Unit's Local Capacity Target and its Real
8 Receipts Adjustment. The Real Receipts Adjustment equals
9 the Organizational Unit's Real Receipts less its Local
10 Capacity Target, with the resulting figure multiplied by
11 the Local Capacity Percentage.
12 As used in this paragraph (3), "Real Percent of
13 Adequacy" means the sum of an Organizational Unit's Real
14 Receipts, CPPRT, and Base Funding Minimum, with the
15 resulting figure divided by the Organizational Unit's
16 Adequacy Target.
17 (d) Calculation of Real Receipts, EAV, and Adjusted EAV for
18purposes of the Local Capacity calculation.
19 (1) An Organizational Unit's Real Receipts are the
20 product of its Applicable Tax Rate and its Adjusted EAV. An
21 Organizational Unit's Applicable Tax Rate is its Adjusted
22 Operating Tax Rate for property within the Organizational
23 Unit.
24 (2) The State Superintendent shall calculate the
25 equalized assessed valuation Equalized Assessed Valuation,
26 or EAV, of all taxable property of each Organizational Unit

HB4585- 41 -LRB101 16491 NHT 65872 b
1 as of September 30 of the previous year in accordance with
2 paragraph (3) of this subsection (d). The State
3 Superintendent shall then determine the Adjusted EAV of
4 each Organizational Unit in accordance with paragraph (4)
5 of this subsection (d), which Adjusted EAV figure shall be
6 used for the purposes of calculating Local Capacity.
7 (3) To calculate Real Receipts and EAV, the Department
8 of Revenue shall supply to the State Superintendent the
9 value as equalized or assessed by the Department of Revenue
10 of all taxable property of every Organizational Unit,
11 together with (i) the applicable tax rate used in extending
12 taxes for the funds of the Organizational Unit as of
13 September 30 of the previous year and (ii) the limiting
14 rate for all Organizational Units subject to property tax
15 extension limitations as imposed under PTELL.
16 (A) The Department of Revenue shall add to the
17 equalized assessed value of all taxable property of
18 each Organizational Unit situated entirely or
19 partially within a county that is or was subject to the
20 provisions of Section 15-176 or 15-177 of the Property
21 Tax Code (i) an amount equal to the total amount by
22 which the homestead exemption allowed under Section
23 15-176 or 15-177 of the Property Tax Code for real
24 property situated in that Organizational Unit exceeds
25 the total amount that would have been allowed in that
26 Organizational Unit if the maximum reduction under

HB4585- 42 -LRB101 16491 NHT 65872 b
1 Section 15-176 was (I) $4,500 in Cook County or $3,500
2 in all other counties in tax year 2003 or (II) $5,000
3 in all counties in tax year 2004 and thereafter and
4 (ii) an amount equal to the aggregate amount for the
5 taxable year of all additional exemptions under
6 Section 15-175 of the Property Tax Code for owners with
7 a household income of $30,000 or less. The county clerk
8 of any county that is or was subject to the provisions
9 of Section 15-176 or 15-177 of the Property Tax Code
10 shall annually calculate and certify to the Department
11 of Revenue for each Organizational Unit all homestead
12 exemption amounts under Section 15-176 or 15-177 of the
13 Property Tax Code and all amounts of additional
14 exemptions under Section 15-175 of the Property Tax
15 Code for owners with a household income of $30,000 or
16 less. It is the intent of this subparagraph (A) that if
17 the general homestead exemption for a parcel of
18 property is determined under Section 15-176 or 15-177
19 of the Property Tax Code rather than Section 15-175,
20 then the calculation of EAV shall not be affected by
21 the difference, if any, between the amount of the
22 general homestead exemption allowed for that parcel of
23 property under Section 15-176 or 15-177 of the Property
24 Tax Code and the amount that would have been allowed
25 had the general homestead exemption for that parcel of
26 property been determined under Section 15-175 of the

HB4585- 43 -LRB101 16491 NHT 65872 b
1 Property Tax Code. It is further the intent of this
2 subparagraph (A) that if additional exemptions are
3 allowed under Section 15-175 of the Property Tax Code
4 for owners with a household income of less than
5 $30,000, then the calculation of EAV shall not be
6 affected by the difference, if any, because of those
7 additional exemptions.
8 (B) With respect to any part of an Organizational
9 Unit within a redevelopment project area in respect to
10 which a municipality has adopted tax increment
11 allocation financing pursuant to the Tax Increment
12 Allocation Redevelopment Act, Division 74.4 of Article
13 11 of the Illinois Municipal Code, or the Industrial
14 Jobs Recovery Law, Division 74.6 of Article 11 of the
15 Illinois Municipal Code, no part of the current EAV of
16 real property located in any such project area that
17 which is attributable to an increase above the total
18 initial EAV of such property shall be used as part of
19 the EAV of the Organizational Unit, until such time as
20 all redevelopment project costs have been paid, as
21 provided in Section 11-74.4-8 of the Tax Increment
22 Allocation Redevelopment Act or in Section 11-74.6-35
23 of the Industrial Jobs Recovery Law. For the purpose of
24 the EAV of the Organizational Unit, the total initial
25 EAV or the current EAV, whichever is lower, shall be
26 used until such time as all redevelopment project costs

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

HB4585- 45 -LRB101 16491 NHT 65872 b
1 average of its EAV over the immediately preceding 3 years
2 or its EAV in the immediately preceding year if the EAV in
3 the immediately preceding year has declined by 10% or more
4 compared to the 3-year average. In the event of
5 Organizational Unit reorganization, consolidation, or
6 annexation, the Organizational Unit's Adjusted EAV for the
7 first 3 years after such change shall be as follows: the
8 most current EAV shall be used in the first year, the
9 average of a 2-year EAV or its EAV in the immediately
10 preceding year if the EAV declines by 10% or more compared
11 to the 2-year average for the second year, and a 3-year
12 average EAV or its EAV in the immediately preceding year if
13 the Adjusted adjusted EAV declines by 10% or more compared
14 to the 3-year average for the third year. For any school
15 district whose EAV in the immediately preceding year is
16 used in calculations, in the following year, the Adjusted
17 EAV shall be the average of its EAV over the immediately
18 preceding 2 years or the immediately preceding year if that
19 year represents a decline of 10% or more compared to the
20 2-year average.
21 "PTELL EAV" means a figure calculated by the State
22 Board for Organizational Units subject to PTELL as
23 described in this paragraph (4) for the purposes of
24 calculating an Organizational Unit's Local Capacity Ratio.
25 Except as otherwise provided in this paragraph (4), the
26 PTELL EAV of an Organizational Unit shall be equal to the

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

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1 Organizational Unit or Specially Funded Unit during the
2 2016-2017 school year prior to any adjustments and
3 specified appropriation amounts described in this
4 paragraph (1) from the following Sections, as calculated by
5 the State Superintendent: Section 18-8.05 of this Code (now
6 repealed); Section 5 of Article 224 of Public Act 99-524
7 (equity grants); Section 14-7.02b of this Code (funding for
8 children requiring special education services); Section
9 14-13.01 of this Code (special education facilities and
10 staffing), except for reimbursement of the cost of
11 transportation pursuant to Section 14-13.01; Section
12 14C-12 of this Code (English learners); and Section 18-4.3
13 of this Code (summer school), based on an appropriation
14 level of $13,121,600. For a school district organized under
15 Article 34 of this Code, the Base Funding Minimum also
16 includes (i) the funds allocated to the school district
17 pursuant to Section 1D-1 of this Code attributable to
18 funding programs authorized by the Sections of this Code
19 listed in the preceding sentence; and (ii) the difference
20 between (I) the funds allocated to the school district
21 pursuant to Section 1D-1 of this Code attributable to the
22 funding programs authorized by Section 14-7.02 (non-public
23 special education reimbursement), subsection (b) of
24 Section 14-13.01 (special education transportation),
25 Section 29-5 (transportation), Section 2-3.80
26 (agricultural education), Section 2-3.66 (truants'

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1 alternative education), Section 2-3.62 (educational
2 service centers), and Section 14-7.03 (special education -
3 orphanage) of this Code and Section 15 of the Childhood
4 Hunger Relief Act (free breakfast program) and (II) the
5 school district's actual expenditures for its non-public
6 special education, special education transportation,
7 transportation programs, agricultural education, truants'
8 alternative education, services that would otherwise be
9 performed by a regional office of education, special
10 education orphanage expenditures, and free breakfast, as
11 most recently calculated and reported pursuant to
12 subsection (f) of Section 1D-1 of this Code. The Base
13 Funding Minimum for Glenwood Academy shall be $625,500. For
14 programs operated by a regional office of education or an
15 intermediate service center, the Base Funding Minimum must
16 be the total amount of State funds allocated to those
17 programs in the 2018-2019 school year and amounts provided
18 pursuant to Article 34 of Public Act 100-586 and Section
19 3-16 of this Code. All programs established after June 5,
20 2019 (the effective date of Public Act 101-10) this
21 amendatory Act of the 101st General Assembly and
22 administered by a regional office of education or an
23 intermediate service center must have an initial Base
24 Funding Minimum set to an amount equal to the first-year
25 ASE multiplied by the amount of per pupil funding received
26 in the previous school year by the lowest funded similar

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

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

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

HB4585- 52 -LRB101 16491 NHT 65872 b
1 amount is then multiplied by a factor equal to one minus
2 the Organizational Unit's Local Capacity Target
3 percentage. Each Organizational Unit within Tier 3 or Tier
4 4 receives an allocation of New State Funds equal to the
5 product of its Adequacy Target and the tier's Allocation
6 Rate, as specified in paragraph (4) of this subsection (g).
7 (2) To ensure equitable distribution of dollars for all
8 Tier 2 Organizational Units, no Tier 2 Organizational Unit
9 shall receive fewer dollars per ASE than any Tier 3
10 Organizational Unit. Each Tier 2 and Tier 3 Organizational
11 Unit shall have its funding allocation divided by its ASE.
12 Any Tier 2 Organizational Unit with a funding allocation
13 per ASE below the greatest Tier 3 allocation per ASE shall
14 get a funding allocation equal to the greatest Tier 3
15 funding allocation per ASE multiplied by the
16 Organizational Unit's ASE. Each Tier 2 Organizational
17 Unit's Tier 2 funding allocation shall be multiplied by the
18 percentage calculated by dividing the original Tier 2
19 Aggregate Funding by the sum of all Tier 2 Organizational
20 Units' Unit's Tier 2 funding allocation after adjusting
21 districts' funding below Tier 3 levels.
22 (3) Organizational Units are placed into one of 4 tiers
23 as follows:
24 (A) Tier 1 consists of all Organizational Units,
25 except for Specially Funded Units, with a Percent of
26 Adequacy less than the Tier 1 Target Ratio. The Tier 1

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1 Target Ratio is the ratio level that allows for Tier 1
2 Aggregate Funding to be distributed, with the Tier 1
3 Allocation Rate determined pursuant to paragraph (4)
4 of this subsection (g).
5 (B) Tier 2 consists of all Tier 1 Units and all
6 other Organizational Units, except for Specially
7 Funded Units, with a Percent of Adequacy of less than
8 0.90.
9 (C) Tier 3 consists of all Organizational Units,
10 except for Specially Funded Units, with a Percent of
11 Adequacy of at least 0.90 and less than 1.0.
12 (D) Tier 4 consists of all Organizational Units
13 with a Percent of Adequacy of at least 1.0.
14 (4) The Allocation Rates for Tiers 1 through 4 are is
15 determined as follows:
16 (A) The Tier 1 Allocation Rate is 30%.
17 (B) The Tier 2 Allocation Rate is the result of the
18 following equation: Tier 2 Aggregate Funding, divided
19 by the sum of the Funding Gaps for all Tier 2
20 Organizational Units, unless the result of such
21 equation is higher than 1.0. If the result of such
22 equation is higher than 1.0, then the Tier 2 Allocation
23 Rate is 1.0.
24 (C) The Tier 3 Allocation Rate is the result of the
25 following equation: Tier 3 Aggregate Funding, divided
26 by the sum of the Adequacy Targets of all Tier 3

HB4585- 54 -LRB101 16491 NHT 65872 b
1 Organizational Units.
2 (D) The Tier 4 Allocation Rate is the result of the
3 following equation: Tier 4 Aggregate Funding, divided
4 by the sum of the Adequacy Targets of all Tier 4
5 Organizational Units.
6 (5) A tier's Target Ratio is determined as follows:
7 (A) The Tier 1 Target Ratio is the ratio level that
8 allows for Tier 1 Aggregate Funding to be distributed
9 with the Tier 1 Allocation Rate.
10 (B) The Tier 2 Target Ratio is 0.90.
11 (C) The Tier 3 Target Ratio is 1.0.
12 (6) If, at any point, the Tier 1 Target Ratio is
13 greater than 90%, than all Tier 1 funding shall be
14 allocated to Tier 2 and no Tier 1 Organizational Unit's
15 funding may be identified.
16 (7) In the event that all Tier 2 Organizational Units
17 receive funding at the Tier 2 Target Ratio level, any
18 remaining New State Funds shall be allocated to Tier 3 and
19 Tier 4 Organizational Units.
20 (8) If any Specially Funded Units, excluding Glenwood
21 Academy, recognized by the State Board do not qualify for
22 direct funding following the implementation of Public Act
23 100-465 this amendatory Act of the 100th General Assembly
24 from any of the funding sources included within the
25 definition of Base Funding Minimum, the unqualified
26 portion of the Base Funding Minimum shall be transferred to

HB4585- 55 -LRB101 16491 NHT 65872 b
1 one or more appropriate Organizational Units as determined
2 by the State Superintendent based on the prior year ASE of
3 the Organizational Units.
4 (8.5) If a school district withdraws from a special
5 education cooperative, the portion of the Base Funding
6 Minimum that is attributable to the school district may be
7 redistributed to the school district upon withdrawal. The
8 school district and the cooperative must include the amount
9 of the Base Funding Minimum that is to be reapportioned
10 re-apportioned in their withdrawal agreement and notify
11 the State Board of the change with a copy of the agreement
12 upon withdrawal.
13 (9) The Minimum Funding Level is intended to establish
14 a target for State funding that will keep pace with
15 inflation and continue to advance equity through the
16 Evidence-Based Funding formula. The target for State
17 funding of New Property Tax Relief Pool Funds is
18 $50,000,000 for State fiscal year 2019 and subsequent State
19 fiscal years. The Minimum Funding Level is equal to
20 $350,000,000. In addition to any New State Funds, no more
21 than $50,000,000 New Property Tax Relief Pool Funds may be
22 counted toward towards the Minimum Funding Level. If the
23 sum of New State Funds and applicable New Property Tax
24 Relief Pool Funds are less than the Minimum Funding Level,
25 than funding for tiers shall be reduced in the following
26 manner:

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1 (A) First, Tier 4 funding shall be reduced by an
2 amount equal to the difference between the Minimum
3 Funding Level and New State Funds until such time as
4 Tier 4 funding is exhausted.
5 (B) Next, Tier 3 funding shall be reduced by an
6 amount equal to the difference between the Minimum
7 Funding Level and New State Funds and the reduction in
8 Tier 4 funding until such time as Tier 3 funding is
9 exhausted.
10 (C) Next, Tier 2 funding shall be reduced by an
11 amount equal to the difference between the Minimum
12 Funding Level level and New new State Funds and the
13 reduction in Tier 4 and Tier 3.
14 (D) Finally, Tier 1 funding shall be reduced by an
15 amount equal to the difference between the Minimum
16 Funding level and New State Funds and the reduction in
17 Tier 2, 3, and 4 funding. In addition, the Allocation
18 Rate for Tier 1 shall be reduced to a percentage equal
19 to the Tier 1 Allocation Rate allocation rate set by
20 paragraph (4) of this subsection (g), multiplied by the
21 result of New State Funds divided by the Minimum
22 Funding Level.
23 (9.5) For State fiscal year 2019 and subsequent State
24 fiscal years, if New State Funds exceed $300,000,000, then
25 any amount in excess of $300,000,000 shall be dedicated for
26 purposes of Section 2-3.170 of this Code up to a maximum of

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

HB4585- 58 -LRB101 16491 NHT 65872 b
1 adjustments to the distribution formula set forth in this
2 subsection (g) to account for the rounding of percentages
3 to the nearest tenth of a percentage and dollar amounts to
4 the nearest whole dollar.
5 (12) Beginning with the 2020-2021 school year, the
6 State Board shall, if a student enrolls in a nonpublic
7 school after being enrolled in a resident school district,
8 distribute to the nonpublic school all funds calculated
9 under this Section, on a per pupil basis, that otherwise
10 would have been provided to the resident school district if
11 the student were still enrolled in the resident school
12 district. If a student enrolls in a nonpublic school during
13 the middle of a school year, the State Board shall prorate
14 the amount the nonpublic school receives under this
15 paragraph (12) based on the length of time the student is
16 enrolled in the nonpublic school for the remainder of the
17 school year.
18 (h) State Superintendent administration of funding and
19district submission requirements.
20 (1) The State Superintendent shall, in accordance with
21 appropriations made by the General Assembly, meet the
22 funding obligations created under this Section.
23 (2) The State Superintendent shall calculate the
24 Adequacy Target for each Organizational Unit and Net State
25 Contribution Target for each Organizational Unit under
26 this Section. No Evidence-Based Funding shall be

HB4585- 59 -LRB101 16491 NHT 65872 b
1 distributed within an Organizational Unit without the
2 approval of the unit's school board.
3 (3) Annually, the State Superintendent shall calculate
4 and report to each Organizational Unit the unit's aggregate
5 financial adequacy amount, which shall be the sum of the
6 Adequacy Target for each Organizational Unit. The State
7 Superintendent shall calculate and report separately for
8 each Organizational Unit the unit's total State funds
9 allocated for its students with disabilities. The State
10 Superintendent shall calculate and report separately for
11 each Organizational Unit the amount of funding and
12 applicable FTE calculated for each Essential Element of the
13 unit's Adequacy Target.
14 (4) Annually, the State Superintendent shall calculate
15 and report to each Organizational Unit the amount the unit
16 must expend on special education and bilingual education
17 and computer technology and equipment for Organizational
18 Units assigned to Tier 1 or Tier 2 that received an
19 additional $285.50 per student computer technology and
20 equipment investment grant to their Adequacy Target
21 pursuant to the unit's Base Funding Minimum, Special
22 Education Allocation, Bilingual Education Allocation, and
23 computer technology and equipment investment allocation.
24 (5) Moneys distributed under this Section shall be
25 calculated on a school year basis, but paid on a fiscal
26 year basis, with payments beginning in August and extending

HB4585- 60 -LRB101 16491 NHT 65872 b
1 through June. Unless otherwise provided, the moneys
2 appropriated for each fiscal year shall be distributed in
3 22 equal payments at least 2 times monthly to each
4 Organizational Unit. If moneys appropriated for any fiscal
5 year are distributed other than monthly, the distribution
6 shall be on the same basis for each Organizational Unit.
7 (6) Any school district that fails, for any given
8 school year, to maintain school as required by law or to
9 maintain a recognized school is not eligible to receive
10 Evidence-Based Funding. In case of non-recognition of one
11 or more attendance centers in a school district otherwise
12 operating recognized schools, the claim of the district
13 shall be reduced in the proportion that the enrollment in
14 the attendance center or centers bears to the enrollment of
15 the school district. "Recognized school" means any public
16 school that meets the standards for recognition by the
17 State Board. A school district or attendance center not
18 having recognition status at the end of a school term is
19 entitled to receive State aid payments due upon a legal
20 claim that was filed while it was recognized.
21 (7) School district claims filed under this Section are
22 subject to Sections 18-9 and 18-12 of this Code, except as
23 otherwise provided in this Section.
24 (8) Each fiscal year, the State Superintendent shall
25 calculate for each Organizational Unit an amount of its
26 Base Funding Minimum and Evidence-Based Funding that shall

HB4585- 61 -LRB101 16491 NHT 65872 b
1 be deemed attributable to the provision of special
2 educational facilities and services, as defined in Section
3 14-1.08 of this Code, in a manner that ensures compliance
4 with maintenance of State financial support requirements
5 under the federal Individuals with Disabilities Education
6 Act. An Organizational Unit must use such funds only for
7 the provision of special educational facilities and
8 services, as defined in Section 14-1.08 of this Code, and
9 must comply with any expenditure verification procedures
10 adopted by the State Board.
11 (9) All Organizational Units in this State must submit
12 annual spending plans by the end of September of each year
13 to the State Board as part of the annual budget process,
14 which shall describe how each Organizational Unit will
15 utilize the Base Funding Minimum Funding and
16 Evidence-Based Funding funding it receives from this State
17 under this Section with specific identification of the
18 intended utilization of Low-Income, English learner, and
19 special education resources. Additionally, the annual
20 spending plans of each Organizational Unit shall describe
21 how the Organizational Unit expects to achieve student
22 growth and how the Organizational Unit will achieve State
23 education goals, as defined by the State Board. The State
24 Superintendent may, from time to time, identify additional
25 requisites for Organizational Units to satisfy when
26 compiling the annual spending plans required under this

HB4585- 62 -LRB101 16491 NHT 65872 b
1 subsection (h). The format and scope of annual spending
2 plans shall be developed by the State Superintendent and
3 the State Board of Education. School districts that serve
4 students under Article 14C of this Code shall continue to
5 submit information as required under Section 14C-12 of this
6 Code.
7 (10) No later than January 1, 2018, the State
8 Superintendent shall develop a 5-year strategic plan for
9 all Organizational Units to help in planning for adequacy
10 funding under this Section. The State Superintendent shall
11 submit the plan to the Governor and the General Assembly,
12 as provided in Section 3.1 of the General Assembly
13 Organization Act. The plan shall include recommendations
14 for:
15 (A) a framework for collaborative, professional,
16 innovative, and 21st century learning environments
17 using the Evidence-Based Funding model;
18 (B) ways to prepare and support this State's
19 educators for successful instructional careers;
20 (C) application and enhancement of the current
21 financial accountability measures, the approved State
22 plan to comply with the federal Every Student Succeeds
23 Act, and the Illinois Balanced Accountability Measures
24 in relation to student growth and elements of the
25 Evidence-Based Funding model; and
26 (D) implementation of an effective school adequacy

HB4585- 63 -LRB101 16491 NHT 65872 b
1 funding system based on projected and recommended
2 funding levels from the General Assembly.
3 (11) On an annual basis, the State Superintendent must
4 recalibrate all of the following per pupil elements of the
5 Adequacy Target and applied to the formulas, based on the
6 study of average expenses and as reported in the most
7 recent annual financial report:
8 (A) Gifted under subparagraph (M) of paragraph (2)
9 of subsection (b).
10 (B) Instructional materials under subparagraph (O)
11 of paragraph (2) of subsection (b).
12 (C) Assessment under subparagraph (P) of paragraph
13 (2) of subsection (b).
14 (D) Student activities under subparagraph (R) of
15 paragraph (2) of subsection (b).
16 (E) Maintenance and operations under subparagraph
17 (S) of paragraph (2) of subsection (b).
18 (F) Central office under subparagraph (T) of
19 paragraph (2) of subsection (b).
20 (i) Professional Review Panel.
21 (1) A Professional Review Panel is created to study and
22 review topics related to the implementation and effect of
23 Evidence-Based Funding, as assigned by a joint resolution
24 or Public Act of the General Assembly or a motion passed by
25 the State Board of Education. The Panel must provide
26 recommendations to and serve the Governor, the General

HB4585- 64 -LRB101 16491 NHT 65872 b
1 Assembly, and the State Board. The State Superintendent or
2 his or her designee must serve as a voting member and
3 chairperson of the Panel. The State Superintendent must
4 appoint a vice chairperson from the membership of the
5 Panel. The Panel must advance recommendations based on a
6 three-fifths majority vote of Panel panel members present
7 and voting. A minority opinion may also accompany any
8 recommendation of the Panel. The Panel shall be appointed
9 by the State Superintendent, except as otherwise provided
10 in paragraph (2) of this subsection (i) and include the
11 following members:
12 (A) Two appointees that represent district
13 superintendents, recommended by a statewide
14 organization that represents district superintendents.
15 (B) Two appointees that represent school boards,
16 recommended by a statewide organization that
17 represents school boards.
18 (C) Two appointees from districts that represent
19 school business officials, recommended by a statewide
20 organization that represents school business
21 officials.
22 (D) Two appointees that represent school
23 principals, recommended by a statewide organization
24 that represents school principals.
25 (E) Two appointees that represent teachers,
26 recommended by a statewide organization that

HB4585- 65 -LRB101 16491 NHT 65872 b
1 represents teachers.
2 (F) Two appointees that represent teachers,
3 recommended by another statewide organization that
4 represents teachers.
5 (G) Two appointees that represent regional
6 superintendents of schools, recommended by
7 organizations that represent regional superintendents.
8 (H) Two independent experts selected solely by the
9 State Superintendent.
10 (I) Two independent experts recommended by public
11 universities in this State.
12 (J) One member recommended by a statewide
13 organization that represents parents.
14 (K) Two representatives recommended by collective
15 impact organizations that represent major metropolitan
16 areas or geographic areas in Illinois.
17 (L) One member from a statewide organization
18 focused on research-based education policy to support
19 a school system that prepares all students for college,
20 a career, and democratic citizenship.
21 (M) One representative from a school district
22 organized under Article 34 of this Code.
23 The State Superintendent shall ensure that the
24 membership of the Panel includes representatives from
25 school districts and communities reflecting the
26 geographic, socio-economic, racial, and ethnic diversity

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

HB4585- 67 -LRB101 16491 NHT 65872 b
1 maintenance and construction costs.
2 (D) "At-risk student" definition.
3 (E) Benefits.
4 (F) Technology.
5 (G) Local Capacity Target.
6 (H) Funding for Alternative Schools, Laboratory
7 Schools, safe schools, and alternative learning
8 opportunities programs.
9 (I) Funding for college and career acceleration
10 strategies.
11 (J) Special education investments.
12 (K) Early childhood investments, in collaboration
13 with the Illinois Early Learning Council.
14 (4) (Blank).
15 (5) Within 5 years after the implementation of this
16 Section, and every 5 years thereafter, the Panel shall
17 complete an evaluative study of the entire Evidence-Based
18 Funding model, including an assessment of whether or not
19 the formula is achieving State goals. The Panel shall
20 report to the State Board, the General Assembly, and the
21 Governor on the findings of the study.
22 (6) (Blank).
23 (j) References. Beginning July 1, 2017, references in other
24laws to general State aid funds or calculations under Section
2518-8.05 of this Code (now repealed) shall be deemed to be
26references to evidence-based model formula funds or

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1calculations under this Section.
2(Source: P.A. 100-465, eff. 8-31-17; 100-578, eff. 1-31-18;
3100-582, eff. 3-23-18; 101-10, eff. 6-5-19; 101-17, eff.
46-14-19; revised 7-1-19.)
5 Section 99. Effective date. This Act takes effect upon
6becoming law.